The Youth Incentive Entitlement Pilot Projects demonstration has been the most ambitious attempt thus far to determine the feasibility of using private employers to provide a work experience in a youth employment program. In establishing this demonstration, congress authorized program operators to recruit private businesses as well as the traditional providers of work experience: public and nonprofit agencies. As part of the overall research on the implementation of entitlement, this report examines the participation of private businesses in the demonstration with particular attention to the experiences of both the firms that chose to participate and those that did not. The report addresses the strategies of prime sponsors in recruiting private businesses, the interest of firms in participating as work sponsors, and the experiences of those who participated. In particular, the report assesses the sensitivity of the participation decision to the level of wage subsidy offered by the prime sponsor on the basis of a subsidy variation experiment conducted at two sites. In addition, the study assesses the satisfaction of firms with program administration and with the youths working for them, as well as the factors that affected their willingness to remain as work sponsors. Finally, the report addresses the dual congressional mandate that job creation for entitlement youth must not result in "make-work" jobs or in displacement of work opportunities for others by examining the relationship between levels of work quality and degrees of displacement. (KC)