Enterprises throughout the world are experiencing revolutionary changes: rising energy and material costs, fierce international competition, new technologies, increasing use of automation and computers. All these changes demand positive response from the entrepreneurs if the enterprise is to survive in competitive environment and prosper. Without innovation enterprises become obsolete. Success in any business today demands constant innovation. In a dynamic environment, success comes from looking for the next opportunity and having the ability to find hidden connections and insights into new products or services as desired by customer. Introducing new products us seen as part of the process of innovation, this is itself seen as the engine driving continued growth and development. To grow and prosper, most enterprises need to constantly improve their existing products and services through continuously innovating needed changes. Enterprises that rely exclusively on innovation will prosper until their products and services become obsolete and non-competitive. Thus, entrepreneurs and enterprises are continuously creative and innovative to remain relevant to the customers, which is the purpose of every business. Innovation and entrepreneurship are the two important pillars of economic growth which India need to develop as it progresses towards becoming a knowledge-driven economy.