Nowadays a special attention is drawn to sustainable development that can be developed by different factors including development of entrepreneurship. The Entrepreneurship is a determining factor for creating perspectives for national economies. This is an active element, generator of new ideas and values. The entrepreneurship key competence refers to ability to turn ideas into action. It includes creativity, innovation and risk taking, the ability to plan and manage in order to achieve objectives. Youth Entrepreneurship is an important driver, being most active, creative and innovative. Under conditions of instability like COVID-19 pandemic and the conditions of Industry 4.0 development, when the technological changes are of an unprecedented intensity, only by strengthening the entrepreneurial spirit it is possible to capitalize on the challenges that arise and Youth Entrepreneurship being more flexible would be able to manage different crises, but also catch better different opportunities. Although youth have less knowledge and experience, but providing especially financial and consulting support, ensuring favorable conditions, would provide better perspectives and sustainability for national economy. In this paper was defined what are the challenges for developing Youth Entrepreneurship in order to ensure sustainable development, recommendations for improving it from youth point of view, was proposed some solutions that can be used for development of Youth Entrepreneurship by governmental institutions, educational institutions and other pro-business NGO. Methodology of research was done by using an analysis of specific publications, examination of youth survey about perception of business environment, providing comparative analysis, deduction from general data and examining some specific proposals for youth entrepreneurship.