This research article published by Eastern Africa Social Science Research, Volume 37, Number 1, January 2021Small and medium enterprise (SMEs) sector is central to youth employment generation and contribution to national GDPs globally. This paper aimed at comparing the enabling environment for youth SMEs startups between India and Tanzania countries. This paper employed systematic literature review method where critical review of secondary data was made. The analysis noted that the two countries differ in three critical aspects of enabling environment for SMEs start up. These aspects are financial support, training support and material support. India has various grants, free and low interest rates schemes unlike Tanzania. The training system in India has been linked with some financial schemes, the component that you can hardly find in Tanzania. Also, India has various non-financial support for SMEs startup such as machines provision, workshop attendance support and spaces/accommodation support for small businesses. Tanzania has tried for the material support such as space support, yet it charges the SMEs owners some rents similar to established SMEs. Generally, SMEs startup environment in India is better compared to Tanzania. Tanzania can generate some lessons from India so as to improve its enabling environment for youth SMEs start up.