The relationship between entrepreneurship and innovation is studied in this paper, as the innovation and entrepreneurship are two terms that are closely associated in current academic research, corporate practices, and policy development management in the global village. Though they are centred around the same concept, it is important to recognize their distinctions. This paper summarizes the key points between entrepreneurship and innovation, as well as the importance, need and types of entrepreneurships. The report concludes with highlighting the importance of innovation and entrepreneurship.