This qualitative study identifies and analyzes the innovative approaches that will create employment opportunities and thus incorporate the youth into labor markets in Rwanda. This report reflects on the effectiveness of the innovative approaches and ascertains whether they are workable or not. According to this study, the key obstacles that the youth face in finding employment is the lack of jobs, relevance of skills acquired by graduates, information asymmetry between the job seekers and potential employers. Further obstacles are the attitude regarding self employment and agricultural work, experience, self confidence, corruption and nepotism. It is also important to note that there are challenges the youth face when setting up their own businesses such as lack of capital, lack of entrepreneurial skills, the mindset, lack of confidence and low self esteem.