Abstract:

Each and every country in the world aspires to increase their economic and employment growth. In doing so, they heavily invest in policies that they assume will lead to achieve this. But the output of policies differs depending on the country's economic development stage. This research paper analyses the various aspects of entrepreneurship and their influence on economic growth. Schemes and policies that have yielded good result in innovation-driven economies such as the United States will not produce the same result in factor-driven and efficiency driven economies. The first finding of this paper suggests that high entrepreneurship rate will not lead to corresponding GDP growth in factor and efficiency driven economies. Second and third findings reveal that total entrepreneurship rate will increase if procedures and days to start business are less and Influence of various factors impacting entrepreneurship differ in different stages of economies.