In conditions of very low youth labor force participation and unappealing perspectives in employment upon graduation, universities lack capacity to equip their students with entrepreneurial skills. Lack of internships and other professional training opportunities during studies, among others, lead to discouragement, lack of motivation and inactivity among the youth. Large group of GE and KG youth is losing their potential to put their creative ideas into product and create self-employment. Therefore, there is a need for more formal and non-formal education activities aimed at strengthening entrepreneurial capacity of students and graduates. These activities are often unavailable or inaccessible in due to the lack of competencies and relevant experience within HEIs. Systemic approach in incorporating entrepreneurship modules within study programs at GE and KG HEIs will have positive impact on the above mentioned issues, however, qualified and trained professors ready to introduce innovative methods of teaching into their curricula are also necessary. Another aspect is lack of guidance and mentoring which can be seen as a problem as it contributes to decreased involvement of youth in economic activities. Guidance and trainings are essential for already graduated students as well in order to help them fully make use of their potential and knowledge received during their studies.Within this context, the aim of optimization of HEIs are reform of HE system, adaptation it to the new economic environment and increasing the efficient use of material and human resources of universities. HEIs should review their own training process of graduates so that they can provide well formed and competent graduates who will be contribute actively to the development of their national economies.This project thus is concrete response to these attempts of reform. It aims to develop a creative and supportive environment in partner HEIS through the establishment of CreaLABs.