In order to investigate the relationship between government policy, the service and design of rural crowdsourcing spaces, the self-efficacy of returning youth, and the innovation performance of businesses, this study focuses on gathering data by distributing questionnaires to returning youth in rural crowdsourcing spaces and developing a structural model. The results demonstrate how important government policies are in encouraging youth entrepreneurship in their local communities. It has the potential to enhance both the development of rural crowdsourcing spaces and the self-efficacy of young entrepreneurs, thereby enhancing the innovative capabilities of local entrepreneurial businesses. Therefore, in order to encourage economic development in rural areas, the government should improve pertinent support measures.