Youth unemployment has become the biggest development challenge in Tanzania. Young people have few opportunities to learn skills so as to help them start and sustain their established micro and small enterprises and, therefore, the majority of youth-owned enterprises do not survive beyond one year. This research aimed at assessing the youth skills landscape and its role in enhancing the sustainability of youth-led business establishments in Dar es Salaam, Tanzania. An enterprise survey was conducted where 274 micro and small-scale enterprises were randomly selected and interviewed. Business sustainability was measured using the working capital turnover which was then clustered to get the business sustainability status. The logistic model was used in determining the influence of skills on the sustainability of micro and small-scale businesses.