Entrepreneurship and innovation has great strategic significance for job enlargement and full employment.It has been demonstrated that the government's prompting policy will be propitious to develop the capability of entrepreneurship and innovation，especially，in the field of job creation，by international practices and experiences from United States and European Union.Returning brains and university graduates gradually become the main force in starting new business，the trend of entrepreneurship and innovation developing quickly in China.Entrepreneurship and innovation in China，however，has also confronted a series of barriers and difficulties from enterprise consciousness，financing and public service.Therefore，an improved economic and policy environment can arouse the potential of entrepreneurship and innovation furthest in China with various aspects which include the efficiency improvement of public sector，the decrease of financing cost，and the improvement of human capital accumulation and public opinion guidance.