The main objective of this study is to identify the factors influencing youth self-employment in case of Bahir Dar city. To achieve the objective of the study, quantitative research was used to investigate the factor affecting self- employment decision among youths in Bahir Dar City. The population for the study is business owners/self-employed individuals, wage/salary workers and those who are unemployed youths in study area. There is huge number of trained people in study area and they are waiting for employment opportunities at government and other hiring organizations. Sample of 204 youths were selected out of the total youth population. The study employed descriptive analysis and multinomial logistic regression to estimate determinant of self-employment among youths. The results show that youth’s self-employment decision is influenced by gender, educational attainment, family educational background, marital status, family business background, social norm, and poverty status of family, access to government support and entrepreneurship training and access to credit. Finally policy makers and different types of concerned bodies are recommended to give due attention on identified influencing factors to promote youth self-employment thereby reduce unemployment and enhance economic development.