The World Bank says changes to business regulation in the Pacific could make it easier for young people to start companies.
Fifty percent of Pacific island people are under the age of 25, and the bank's Jonathon Kirkby said governments were aware of the need to help entrepreneurs and to improve employment opportunities.
"If you make it easier for people to start a business then these young, enthusiastic people are more likely to be in that position to join the formal economy and to operate their own businesses," said Jonathon Kirkby
Mr Kirkby said Vanuatu has made the best reforms to business regulation to support entrepreneurs in the Pacific this year.
He said Papua New Guinea and Fiji have also made positive changes.