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The Duke of York has said it should continue to "engage" with Saudi Arabia, despite the killing of journalist Jamal Khashoggi.
Khashoggi, a critic of Saudi rulers, was killed inside the country's consulate in Istanbul on 2 October.
The Duke said the journalist's death was an awful state of affairs.
But he added Pitch @ Palace should not stop "encouraging and supporting, starting and growing businesses".
He told the BBC young Saudis should not "take the blame for something that they had nothing to do with".
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Prince Andrew was talking to Radio 4's Today program ahead of the latest round of his Pitch @ Palace initiative.
The not-for-profit organization, which has been established in 2014, gives the entrepreneurs the chance to "pitch" to an audience of professionals who could become mentors, distributors or investors and help them expand their businesses.
The events take place twice a year and Thursday's will see 42 entrepreneurs from around the UK coming together at Buckingham Palace to a full room of top investors and other businesspeople.
'Great success'
Pitch @ Palace Global holds similar events for entrepreneurs in various countries around the world, including Saudi Arabia.
"It's sometimes considered a difficult market to enter the world, but it was a great success," Duke told business presenter, Dominic O'Connell.
The Duke said that Khashoggi's killing is an "absolutely awful state of affairs and how and why is beyond my knowledge and ability to answer".
However, he added: "Do I think that we should be engaging with Saudi Arabia?
"From a Pitch perspective and Pitch alone, I do not believe that we should stop for one moment
"They need to diversify their economy, they've gotten a little bit of a lot of things going on, and then I think they should not they need nothing to do with the blame
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The Duke of York was made Chancellor of Huddersfield University in 2015
Last week, the University of Huddersfield, Duke's resignation as Chancellor, will be discussed with Saudi Arabia via Pitch @ Palace.
'Appalling record'
Saudi Arabia admits Mr Khashoggi was killed inside his consulate in Istanbul last month, but his accounts of what happened at several times.
When he first disappeared, it said Khashoggi had walked out of the building alive. It later has been murdered, saying the killing was premeditated and a result of a "rogue operation".
Turkish investigators believe he was choked to death and then dismembered.
Liam Fox, to the top of the list of top executives and politicians, including the UK's international trade secretary.
Reacting to the Duke's Interview with the BBC, Amnesty International said it was "re-appraising his entire relationship with Saudi Arabia".
Peter Frankental, the organization's UK economic relations program director, said no-one could be "under any illusions about Saudi Arabia's appalling human rights record".
"All business figures need to be aware that their dealings with Saudi Arabia may be subject to human rights violations, especially if they are receiving such violations."
'Different way'
The Duke of York was the UK's "special representative" for trade and investment from 2001 to he stepped down in 2011.
As UK trade sent his remit was to promote UK business interests abroad.
He was asked why he was here to stand down from that role: "The decision here at Buckingham Palace is that every member of the family should be helped in the trade relationship[s] around the world.
"I still do not support the UK in any way that I did previously but we do it now and we do it in a slightly different way," he said.
