Youth unemployment has become the biggest development challenge in all parts of the world Tanzania inclusive. Although the role of youth in contributing to the growth and development of countries’ economies was not recognized and acknowledged by many states. Theoretical background and economic opportunities and evidence for youth participation in economic projects is not only recognized as a solution to unemployment problem but also to cultural and social problems. This project provides youth with needed entrepreneurial skills and information through training counseling, awareness and business advice to start and sustain microenterprises. This study concludes that youth development projects should be viewed as one aspect of the strategy towards youth unemployment and social-cultural problems. However, findings from this study shows that establishment of a youth entrepreneurial skills development centers does not cure for the youth unemployment problem but it is one of the measures to reduce the problem