Vimala Veeraraghavan*
*Consultant Clinical Psychologist, G-15/3, DLF Phase I, DLFG City, Gurgaon – 122002, Haryana, India

The paper considers the importance of interaction of entrepreneurship and innovation. Tracing the definition of entrepreneurship, the paper puts forward some of the important characteristics of entrepreneurship and how it has evolved over a period of time and what exactly it is today. Discussing the types of entrepreneurship, the paper presents the characteristic traits of entrepreneurs and how to profile them. The ability to take risks and indulge in creative destruction and innovation are shown as distinguishing features of entrepreneur. Differentiating creativity, invention and innovation, the paper presents certain major theories of entrepreneurship which could help predict the entrepreneurial capabilities in a person. Finally the paper presents the importance of innovation and the form it should take and how entrepreneurship is a combination of many factors including the family background and ability to take risks and innovate and put forward new ideas and concepts and implement the same.

Keywords: Entrepreneurship, Risk Taking Ability, Creativity, Innovation.