Abstract Youth entrepreneurship, catalyzed by rapid digital transformation, plays a pivotal role in promoting inclusive economic development globally. With rising youth unemployment and technological disruption in labor markets, digital empowerment offers new pathways for young people to innovate, create enterprises, and participate meaningfully in economic processes. This paper explores the interlinkages between youth entrepreneurship and digital tools, assesses their combined impact on economic inclusion, identifies enablers and barriers, and proposes recommendations for policy and practice. Drawing on international case studies and empirical evidence, it argues that a hybrid ecosystem involving education, technology access, policy support, and inclusive finance is essential for youth-led digital entrepreneurship to drive equitable growth.