Agriculture remains a cornerstone of economic development in sub-Saharan Africa, offering significant opportunities for employment and innovation. However, youth unemployment persists, with many young graduates perceiving agriculture as a less attractive career path due to challenges such as limited access to capital, inadequate skills, and market uncertainties. This study investigates the perceptions and entrepreneurial readiness of final-year undergraduate students at Sokoine University of Agriculture (SUA) for self-employment in the agricultural sector. A descriptive survey design was employed, involving a stratified random sample of 202 students drawn from a population of 1,344. Data were collected using structured questionnaires and analyzed using descriptive and inferential statistics. Key findings indicate that 84% of students perceive self-employment in agriculture as a viable career option, with no significant gender differences (p = 0.620). While 76% acknowledged the risks of market uncertainties, the difference in risk perception between genders was insignificant (p = 0.591). Opportunities for innovation in agriculture were positively perceived, with 85% of respondents agreeing, and no significant variations across demographics (p > 0.500). Self-efficacy emerged as a critical factor, with 81% expressing confidence in acquiring the necessary skills for self-employment. Regression analysis revealed that prior exposure to entrepreneurial training (β = 0.45, p < 0.001) and practical internships (β = 0.32, p < 0.01) significantly enhanced students’ preparedness. The findings underscore the need for targeted curricular and extracurricular interventions to foster entrepreneurial skills and mitigate barriers to agricultural self-employment. These insights provide a foundation for policy and institutional reforms aimed at empowering youth in agricultural entrepreneurship.