Despite its demographic advantages, Bihar continues to experience economic stagnation due to infrastructure deficits, limited industrialization, and high unemployment rates, especially among youth. This paper explores the role of youth entrepreneurship in addressing these challenges and suggests that strategic collaboration with commercial banks can foster sustainable economic development in the region. Using a mixed-methods approach, the study assesses the existing entrepreneurial ecosystems, the accessibility of financial resources, and the responsiveness of commercial banks. The findings reveal significant gaps in financial inclusion and emphasize the need for institutional reforms and targeted strategies to engage youth. The study finishes with policy proposals designed to convert Bihar's unexploited potential into concrete developmental results via youth-led companies.