Policy Paper: De-Risking Youth Entrepreneurship and Unlocking the Missing Middle – Solutions to Drive Youth-led Economic Growth

In this paper, Youth Business International (YBI) and Habitat in Türkiye shine a light on the potential of youth-led businesses that have outgrown microfinance and start-up support 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. They fall into the “missing middle”. 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; and supporting high-growth businesses in diverse sectors, including green, creative, and traditional industries