The article reveals the main problems of creating favorable conditions for young people who realize their potential within the framework of businessactive behavior. The author notes the main directions that allow to involve young people in the sphere of self-employment and form a stable sector of small business in various sectors of the economy. The basic external and internal factors influencing the business environment are determined, and the specific factors of their manifestation are disclosed. In the course of the analysis, the author gives examples of existing practices of supporting the youth business, revealing their shortcomings and opportunities for correction. The author’s research data, which reflect feedback on the system of supporting youth business by young entrepreneurs, are presented. The obtained data made it possible to formulate a number of possible directions for improving the small business management system.