Youth entrepreneurship is one of the key factors in ensuring sustainable economic development, reducing unemployment, and increasing the social and economic activity of young people. This article examines the current state of youth entrepreneurship in Uzbekistan, the challenges faced by young people entering the labor market, and the role of state support mechanisms in fostering entrepreneurial initiatives. Special attention is given to government programs, preferential lending, educational projects, business incubators, accelerators, and consulting services aimed at creating favorable conditions for young entrepreneurs. The study highlights the importance of entrepreneurial education, financial literacy, and practical business skills in improving the effectiveness of youth-led enterprises. Furthermore, the role of commercial banks, public organizations, and educational institutions in supporting young entrepreneurs is analyzed. The findings demonstrate that comprehensive support measures contribute significantly to the development of entrepreneurial potential among youth, enhance employment opportunities, and promote innovation-driven economic growth. The article concludes that strengthening entrepreneurial competencies and expanding institutional support are essential for empowering young people to become active participants in the country's socioeconomic development.