Taking H Village in X City, S Province as a case study, this paper delves into the modes, dilemmas, and breakthrough paths of collaborative development between rural youth entrepreneurship and small and micro-enterprises based on the theory of collaborative development. First-hand data is collected through participatory observation and in-depth interviews to analyze the interactive relationships among various entities in collaborative development and uncover such development’s internal mechanisms. The study finds that H Village has formed multiple collaborative models, but faces dilemmas in terms of motivation, coordination, and safeguard mechanisms. This paper aims to provide a theoretical basis and practical guidance for promoting the collaborative development of rural youth entrepreneurship and small and micro-enterprises, and for realising rural economic revitalisation.