This study examines the impact of incremental microfinance initiatives on youth entrepreneurship in Dakar slums, a context rich with socio-economic challenges. Incremental microfinance interventions are conceptualized within an existing theoretical model, integrating qualitative insights from local community studies and academic literature on entrepreneurship education in resource-limited settings. The theoretical framework underscores the importance of incremental microfinance as a tool for empowering youth entrepreneurship in urban slums but highlights the necessity for ongoing refinement and local adaptation. Future research should focus on longitudinal studies to validate these findings, while policymakers could consider implementing or modifying existing microfinance programmes with an emphasis on community engagement and tailored financial products.