Entrepreneurship and innovation play a critical role in driving business cycles and economic growth within globalised economies. We begin with defining entrepreneurship and distinguishing its types, such as necessity-driven and opportunity-driven entrepreneurship. The chapter explores factors influencing entrepreneurial activity, including risk preferences, access to capital, and market opportunities. It introduces the concept of creative destruction, highlighting the dynamic interplay between innovation and market structures. Various models, including those linking capital availability, tax incentives, and entrepreneurship, are used to analyse the economic impact of entrepreneurial ventures. The chapter also discusses policy measures to foster innovation ecosystems, such as research and development incentives, intellectual property protections, and infrastructure investments. The globalisation of markets and technologies is shown to expand opportunities for entrepreneurs while intensifying competition and reshaping industries. Using empirical evidence and case studies, the chapter demonstrates how innovation contributes to productivity growth, market dynamism, and economic resilience.