The myth between entrepreneurship and economic development

The historical debate since 1700s on the meaning of entrepreneurship. has spawned a variety of definitions and descriptions of the role of the entrepreneur in economic growth. These debates have approached the subject area from a variety of economic perspectives, and within each approach sought to develop an overarching definition of the entrepreneur, and a specific location within the economic sphere. Entrepreneurship is widely credited with playing a crucial role in economic growth. There is a strong connection between entrepreneurship and economic development in the sense of wealth distribution especially in the informal economy, this link has not been much explored. The purpose of this paper is to investigate and explain the existing relation between entrepreneurship and economic development in terms of informal economy. Therefore this paper offers a theoretical review of the main concepts on entrepreneurship and economic development including definitions and theory development. Analysis of research and theory suggests influence of economic and institutional contexts on entrepreneurship and their economic development especially in informal economy moderated by cultural and societal and policy factors. This paper will expectedly illustrate a more comprehensive understanding of factors influencing and impacting entrepreneurship in informal economy. Published Conference Proceedings ISSBN 1-888624-11-6