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Student innovation competitions and programs (ICPs), including hackathons, start-up competitions, and customer discovery labs, have had a transformative impact on the higher education entrepreneurial ecosystem. They have also facilitated students’ experiences in Science, Technology, Engineering, and Math (STEM). However, there is a disparity in the number of underrepresented students and dominant student groups participating in STEM fields. While research supports the benefits of ICP participation, literature discussing students’ perceptions of these programs remains limited. This study addresses three research questions about participation motivation (perceived values and associated costs), participation barriers, and differing perceptions among groups. Semi-structured, in-depth interviews were conducted with 38 students (25 females/13 males, 17 participants/21 non-participants). The analysis focused on the Situated Expectancy-Value Theory (SEVT) and the Theory of Planned Behavior (TPB). The research findings contribute to fostering diversity and inclusion within educational or professional environments by uncovering values (e.g., acquiring professional skills) and costs (e.g., opportunity costs) that students associate with motivation to engage in ICPs. Institutional and individual barriers were identified, including limited program awareness, lack of diversity, and identity mismatch. Therefore, the study intends to inform STEM educators and ICP organizers, foster inclusivity and diversity in the entrepreneurial ecosystem, and offer guidance for interventions.