The purpose of this paper is to shed light on the recent developments in the area of entrepreneurship and innovation & also to explore the synergies, similarities and differences in both. Entrepreneurship and innovation are inter-related concepts. Innovation sparks the initial idea while entrepreneurship fuel its realization and both of these also gives fuel to the global economic growth and development. This paper present how the innovation drives entrepreneurship and why innovation is necessary for meeting out the challenges of business environment and sustainable growth. Although changes demand innovation because changes provide opportunities and we can grab these opportunities by a feasibility analysis. For example, In India, PM is emphasizing on clean and green India, so this can be a great opportunity for the persons of same mindset & they can grab this opportunity by making an innovation in this context and in another example, in our country we moved from old taxation system like sales tax, VAT to new taxation system i.e. GST, a single tax (one nation, one tax) and this change gives the opportunity to many entrepreneurs to develop software, which can handle the GST calculations and make it easy. So, innovation is a specific tool of entrepreneurs the means by which they can exploit changes. A very well said thought in this context is that “Necessity is the mother of invention and innovation”. In current scenario, more focus on rural entrepreneurship, social entrepreneurship and women entrepreneurship etc. is going on. In our country, government of India provide many platforms, various schemes, activities and programmes for different categories and different incubators to generating the innovative ideas for the implementation of new start-ups (entrepreneurship) in the various field like agriculture, science & technology, communication, health care services, horticulture and many more. In this study we talk about the barriers and difficulties faced by the entrepreneurs like mostly persons resist to change due to fear of failure and lack of confidence because they do not know their powers & potential capabilities. So, government of India taking initiative for the development of this arena, like in Indian scripture Ramayana, when Ravana took away Sita mata and then a fleet of monkeys led by Hanuman & Jambavanth were searching for mata Sita. When they reached near the seashore, they stopped and get confused how to cross the sea. Then Jambavanth realizes Hanuman that you can jump over the sea because you have that much potential capability, then Hanuman realized his power and jump over the sea and find mata Sita. So, we require the persons like Jambavanth for knowing the hidden potential. Thus, in this research paper, we revealed how innovation & entrepreneurship collaborate to shape the better future of the business world and economic world too.

Keywords: – Economic growth, innovation, sustainable development, opportunities, potential, government schemes & programmes