1 Journal of Business Administration (JBA) Vol. 1(1) pp. 01-11 March, 2011 Available online Web: http:// www.scholarly-journals.com/ © 2011 Scholarly Journals Research paper Government Public Policy of Mexico and Entrepreneurship What Can Mexican Government Do for Enhancing Entrepreneurship in Mexico? José G. Vargas-Hernández, Mohammad Reza Noruzi. 1 Research Professor Member of the National System of Researchers Department of Marketing and International Business Graduate Center of Economic and Administrative Sciences Universidad of Guadalajara. Peripherals Building 799 North G-306 Zapopan C.P. 45 100, Mexico Tel and fax: +52 (33) 3770 3343 Ext 5097 josevargas@cucea.udg.mx, jgvh0811@yahoo.com, jvargas2006@gmail.com 2 Executive Master Business Administration, EMBA Islamic Azad University, Bonab, Iran Faculty of Humanity Sciences, Department of Management and Accounting Young Researchers Club Member, IAU Bonab, Iran Cell: +98- 914-3216700 Email:mr.noruzi.pnu@gmail.com Accepted 17 th March, 2011 The literature existing on entrepreneurship implicitly assumes that entrepreneurship and government and economic growth are positively related with each other and there is a positive correlation among them. However, few studies, whether theoretical or empirical, analyze such relation in an explicit manner. This paper aims to study the entrepreneurship notion and the barriers of entrepreneurship and mainly the role of government in enhancing entrepreneurship in the society. Keywords: Entrepreneurship, Government, Small and Medium Enterprises (SMEs). INTRODUCTION Consider the developed countries; one sees so much wealth, so much beauty, high ways that are landscaped, and so many extra ordinary developments. This is something people see everywhere in developed economies. However, this is something not seen in most other places. There are about six billion people in the world. One billion people come from developed countries like North America, Western Europe, Japan , and perhaps four other Asian ‘‘tiger s.’’ But the majority of people are not in that situation. The other five billion come from what is typically called the developing world, or the Third World, and the former Soviet Union countries Until a few years ago, most of these countries were really following other systems rather than the capitalist system. That has all changed since the fall of the Berlin W all. Even Deng Xiaoping in 1978 started marching in a different direction in China when he said, ‘‘It doesn’t matter what color a cat is, as long as it catches mice.’’ In the developing world, we’ve all begun to change, we’ve all been trying to get our macroeconomic systems in place, we’ve all been making sure that we have fiscal balance, and we’ve all been making sure that we don’t issue too much currency. We are all trying to get our account balances in order, especially since the fall of the