The scheme is supported by entrepreneurs including Michael Acton Smith, Lily Cole and Nick D’Aloisio.
The Duke of York and UK charity Nominet Trust have launched an award scheme to motivate young entrepreneurial talent to develop their own business and digital skills.
The new iDEA scheme, which will initially support 1,000 young people during the pilot phase, plans to invest over £150,000 in seed funding.
Twenty of the best ideas will receive a £5,000 grant, mentor support and a business placement.
The Duke of York, Prince Andrew, said the goal of the scheme is to give young people the opportunity to gain digital skills.
"But gaining digital skills in such a way that they are combined in educational terms with business," Andrew said.
"So this is about combining education in its purest sense, and also business in its purest sense.
"But applying the digital technology that is now available and will become available."
A recent report from Unltd noted that that more than 55% of those aged 16-25 want to set up their own business and 14% are now in the process of doing so, compared with 8% only a year ago.
Another YouGov survey commissioned by Nominet Trust reported that about 64% of the interviewed 1,000 16-25 year old people consider formal education would not go far enough to assist youngsters interested in entrepreneurship.