Abstract:

Entrepreneurship is considered to have a strong influence on economic growth and numerous attempts have been made by empirical literature to provide a base to link them together. This paper attempts to facilitate a meaningful discussion on the effects that entrepreneurship brings to economic growth. Through literature review, we found many facets of entrepreneurship that is important to the study of the effects on economic growth and these are definitions, theories, types of entrepreneur, measures, issues, effects/empirical evidence and case studies. From our analysis we found many important facts and evidence that show entrepreneurship does influence economic growth in many ways, though there are some issues, which are relating entrepreneurship to economic growth (Zoltan Acs ,2006)24 ,the prevalence of entrepreneurial activity differs across the stages of economic development (Rolf Sternberg & Sander Wennekers ,2005)21 , importance of entrepreneurship capital on economic performance of the region (David B.Audretsch & Max Keilbach ,2005)3 , more entrepreneurship activity could mean more economic growth, concerned with the types of activities to which the individual directs his talents (productive, unproductive and destructive) and here there is a need to distinguish between entrepreneurship and rent-seeking (non-productive pursuit of economic profit) (Marcus Dejardin ,2000)16 that need to be taken into consideration. This paper also discussed about the best measure that is suitable to gauge level of entrepreneurship effect, benefits derived from entrepreneurship driven economy and policies that can help in creating conducive environment for entrepreneurship to grow.