New YBI policy paper highlights strategies to de-risk youth entrepreneurship and unlock the “missing middle”

Youth Business International (YBI) has released a new policy paper that calls on governments, financial institutions, and enterprise support organisations (ESOs) to take urgent, coordinated action to de-risk youth entrepreneurship and support young entrepreneurs stuck in the “missing middle”.

Titled “De-risking Youth Entrepreneurship and Unlocking the Missing Middle – Solutions to Drive Youth-led Economic Growth”, the paper, created in collaboration with YBI’s member Habitat in Türkiye, shines a light on the potential of youth-led businesses that have outgrown microfinance but are still considered too small or high-risk for mainstream investment. These businesses—often innovative and rooted in their communities—are overlooked despite their immense potential to create jobs, generate revenue, and drive sustainable economic growth.

“We must redefine what success looks like and whom we invest in. Supporting only tech start-ups in major cities misses the broader potential for sustainable development. High growth happens in rural areas, in traditional sectors, and among women and underrepresented youth. This is where transformative impact lies.”

Anita Tiessen, CEO, Youth Business International

The policy paper outlines key strategies to de-risk youth entrepreneurship and enable youth-led businesses stuck in the “missing middle” to scale sustainably, including:

• Designing tailored financial products such as uncollateralised loans and milestone-based funding
• Advocating for regulatory reforms and youth-friendly procurement
• Strengthening financial literacy and investment readiness
• Scaling structured mentoring models and peer learning initiatives
• Supporting high-growth businesses in diverse sectors, including green, creative, and traditional industries

The paper also introduces YBI’s Excellence in Youth Entrepreneurship (EYE) Model, which provides a globally adaptable framework for delivering holistic support, combining personal development, business development, and ecosystem facilitation.

With the global SME financing gap estimated at $331 billion in sub-Saharan Africa and £22 billion in the UK alone, the paper positions youth entrepreneurship not as a niche development issue but as a strategic priority for long-term economic resilience.

“De-risking youth entrepreneurship is not a niche issue—it is an economic necessity. We are calling on financial institutions, governments, and ecosystem actors to step up. Together, we can unlock the productivity and creativity of millions of young entrepreneurs and create the conditions for shared prosperity.”

Anita Tiessen, CEO, Youth Business International

Read the full policy paper and discover actionable solutions to unlock youth-led business growth.