Youth entrepreneurship is not only a response to labour market challenges but also a strategic tool for strengthening Europe’s competitiveness and innovation capacity.

At its April 2026 plenary session, the European Economic and Social Committee (EESC) adopted an exploratory opinion on EU competitiveness and youth entrepreneurship, requested by the Cyprus Presidency of the Council of the EU. The opinion highlights the role of young entrepreneurs in driving innovation, fostering sustainable growth and supporting the long-term renewal of Europe’s SMEs.

To unlock the potential of youth entrepreneurship, the Committee calls for a comprehensive approach that enables young people to transform entrepreneurial ambitions into sustainable businesses.

The opinion identifies several persistent barriers faced by young entrepreneurs, including limited access to finance, regulatory complexity and skills gaps. Addressing these challenges requires coordinated action at EU, national and local level, combining financial support, education, mentoring and regulatory simplification.

Rapporteur Giuseppe Guerini emphasised the importance of entrepreneurship as a driver of competitiveness and renewal: 'Support for youth entrepreneurship is a strategic tool for strengthening the EU's competitiveness and innovation capacity, which may also prove decisive in addressing the challenge of generational renewal in many SMEs.'

The EESC considers youth entrepreneurship a key lever for boosting innovation, tackling productivity challenges and supporting demographic renewal in Europe's business landscape. However, it underlines that entrepreneurship should be a genuine choice rather than a substitute for decent employment opportunities. Young people should have access to adequate support, realistic expectations and alternative career pathways.

Access to finance remains a major obstacle. The Committee therefore calls for stronger support for alternative financing instruments and financial tools tailored to the needs of youth-led businesses, particularly innovative start-ups, social enterprises and cooperatives. At the same time, funding should be complemented by mentoring, coaching, business incubation programmes and evaluation tools that help young entrepreneurs develop resilient and sustainable projects.

The opinion also highlights the importance of fostering an entrepreneurial mindset from an early age. The EESC recommends integrating entrepreneurship education into different levels of education and training, including vocational and dual-learning systems. Financial literacy, digital skills and knowledge related to artificial intelligence are identified as increasingly important for future entrepreneurs.

To encourage business creation, the Committee calls for further efforts to reduce administrative burdens and simplify regulations at all levels of governance. It also stresses the value of business networks and entrepreneurial ecosystems, which can provide access to markets, partners, investors and good practices.

Finally, the EESC underlines that competitiveness and social inclusion must go hand in hand. Support measures should promote equal opportunities for women, people with disabilities and other underrepresented groups, while recognising failure as a learning experience and safeguarding the right to a second chance. (lm)