Name: Amandeep Kaur
Country: India

Year: 2025
Volume: Volume-10, Issue-2 (July-December)
Page Number: 12-19
DOI: https://doi.org/10.5281/zenodo.17735455

ABSTRACT
Entrepreneurship and innovation are widely recognized as key drivers of economic growth,
competitiveness, and societal transformation. This paper explores the dynamic relationship between
the two, emphasizing how entrepreneurial activity fosters innovation and, in turn, how innovation
enhances entrepreneurial success. Drawing upon established theories and contemporary literature, the
study examines the role of innovation-led entrepreneurship in promoting job creation, technological
progress, productivity improvement, and sustainable development. Using a qualitative methodology,
secondary data from global reports, academic research, and comparative case studies of developed and
developing economies are analysed. Findings reveal that while advanced economies benefit from
strong innovation ecosystems, emerging markets face structural constraints such as limited finance,
inadequate infrastructure, skill shortages, and regulatory burdens. The study further highlights policy
and institutional mechanisms such as financial incentives, skill development programs, intellectual
property protection, and international collaboration that strengthen innovation-driven
entrepreneurship. The paper concludes that fostering a supportive environment through coordinated
government, industry, and academic efforts is essential for enabling entrepreneurship and innovation
to act as catalysts of inclusive and sustainable economic growth.
Keywords: Entrepreneurship, Innovation, Economic Growth, Innovation Ecosystem, Sustainable
Development.