Innovation usually refers to finding new ways and ideas to create more productive techniques and processes. Innovation in business also means providing new value to your business in order to achieve economic stability. Entrepreneurship has been the subject of continual interest of economics in India and other Nations as well. The capacity and willingness to develop, organize and manage a business venture alongside all the risks in order to make profit is known as entrepreneurship. In this paper, we begin by providing an overview of why entrepreneurship has begun attracting the young brigade of the nation. We then discuss the literature that examines some of the causes and effects of undertaking the entrepreneurial act. We examine the characteristics that should be kept in mind by an aspiring entrepreneur before undertaking the risk. Government policies, schemes and initiatives for supporting and motivating young entrepreneurs though start up India action Plan has also been discussed in the research. There are several factors involved in the making of an entrepreneur who can make utmost utilization of his knowledge and skills and thus leading him towards employment generation for others which eventually leads to economic development of the country.