Startup and Entrepreneurship Opportunities in Solving the Problem of Youth Unemployment in Azerbaijan

Annotation: Youth unemployment remains a pressing socio-economic challenge in Azerbaijan, significantly affecting long-term economic development, social stability, and demographic potential. Despite steady macroeconomic growth, young people aged 15–29 continue to face disproportionately high unemployment rates (18.2% in 2024 vs. 6.9% national average). This study examines startup initiatives and entrepreneurship as strategic instruments to address youth unemployment, highlighting both opportunities and barriers. Using a qualitative desk-based methodology complemented by policy document analysis and international case studies, the research evaluates Azerbaijan’s entrepreneurial ecosystem, including government programs such as the State Program on Development of Entrepreneurship, the Ministry of Economy initiatives, and the Small and Medium Business Development Agency (SMBDA) interventions. The study also explores financial support mechanisms, including grants, concessional loans, and venture capital, as well as the role of educational institutions, incubators, and accelerators in equipping young people with the necessary skills for business creation and management. Key findings identify the critical success factors for fostering youth entrepreneurship, including effective policy support, access to finance, skills development, and innovation promotion. By synthesizing national data, comparative international experiences, and targeted recommendations, the study demonstrates how a strategically developed entrepreneurship ecosystem can enhance youth employment, promote economic diversification beyond the oil sector, and contribute to sustainable development in Azerbaijan. The research emphasizes the need for integrated approaches that link policy, finance, education, and innovation to fully harness the potential of young entrepreneurs.