Entrepreneurship as a strategic solution to educational problems is illustrated by this empirical research of youth enterprise development in Nigeria’s South-South geopolitical zone. The research fills a critical gap in the literature by studying how youth in systemic educational underperformance navigate educational deficiencies through entrepreneurial activity and how educational quality, entrepreneurial competency acquisition, and venture sustainability are linked. A mixed-methods study using quantitative surveys of 400 young entrepreneurs and qualitative in-depth interviews with 30 from Rivers, Delta, Bayelsa, Edo, Cross River, and Akwa Ibom. Youth entrepreneurs have curriculum irrelevance, infrastructural deficiencies, teacher quality difficulties, and poor practical skill development. Youth respond through informal apprenticeships, social networking, self-directed learning, flexible business formats, and income diversification. Studies show a correlation between educational quality and entrepreneurial competency acquisition (r = 0.45, p < 0.01) and venture sustainability (r = 0.38, p < 0.01). Mediation analysis supports this study’s Deficiency-Compensation Framework by revealing that entrepreneurial competency acquisition significantly mediates educational quality and venture sustainability. Instead being passive victims, adolescent entrepreneurs ingeniously navigate structural shortcomings. The study presents a complete theoretical lens for evaluating educational deficits and young enterprise development and makes evidence-based recommendations for educational reform, entrepreneurship development, and future research. The findings have substantial policy and practical implications for Nigeria and other emerging economies with educational inequalities and youth unemployment.

Keywords: Entrepreneurship, Strategic Response, Educational Deficiencies, Youth Enterprise, South-South Region.