Youth empowerment and participation in Small and Medium Enterprises (SMEs) are critical drivers of economic growth and self-reliance, particularly in developing nations. While developed countries have effectively leveraged youth engagement in SMEs to stimulate economic development, less developed nations continue to face challenges in maximizing the contributions of young entrepreneurs. The disparity in SME output between developed and developing countries highlights the importance of targeted policy interventions to support youth-led enterprises. This study examines the role of government support in enhancing youth participation in SMEs in Nigeria. By analyzing existing policies and initiatives aimed at fostering entrepreneurship among young people, the research explores how youth engagement in SMEs can contribute to job creation, poverty reduction, and overall economic development. Insights are drawn from comparative experiences of the “Asian Tigers” — Hong Kong, Indonesia, Malaysia, Singapore, South Korea, and Thailand — where SME promotion has been central to rapid economic growth. Findings indicate that strategic government support, including access to finance, capacity-building programs, and favorable regulatory frameworks, is essential for empowering youth and bridging the productivity gap in SMEs. The study underscores that sustainable economic growth in Nigeria requires coordinated efforts to enhance youth entrepreneurship, ensure resource availability, and implement policies that incentivize innovation and enterprise development. The research provides practical implications for policymakers, educators, and development agencies, emphasizing that youth-focused SME initiatives can serve as a robust mechanism for economic transformation and social empowerment in developing countries.