1 To Study the Effect of Entrepreneurship on Economic Growth Seyed Morteza Afghah 1 , Ali Raoofi 2 , Simin Hoshyar 3 The University of Shahid Chamran 4 Abstract As an important and major goal, reaching development depends on optimal usage of all country’s resources particularly human source which is considered as one of the most important capitals of every country. For this reason the main aim of this research is to illuminate the relation between entrepreneurship as a intellectual capital and economic growth in 50 selected countries including Iran during the years 2004 and 2012. Thus, data of economic growth and entrepreneurship have respectively been used as dependent and independent variables while the proportion of government expenditure to Gross Domestic Production (GDP), trade liberty, inflation and rate of enrollment in school have been applied as explanatory variables. The data of this study has been collected from Global Entrepreneurial Monitor (GEM) and the World Bank. The outcomes of research indicate that entrepreneurship has positive and significant effect on economic growth. They also show the influence of other explanatory variables on economic growth. Meanwhile, rate of enrollment in schools and trade liberty have positive effect on economic growth while the proportion of government expenditure to Gross Domestic Production has negative effect. Classification: JEL: 010 Keywords: entrepreneur, entrepreneurship economic growth 1 Assistant professor at the University of Shahid Chamran; morteza.afghah@gmail.com 2 Master of economics from the University of Shahid Chamran; ali_r1367@yahoo.com 3 MA student at the University of Shahid Chamran; simin.hoshyar@gmail.com 4 I would like to thank the University of Shahid Chamran for providing the opportunity to attend SAY Conference in France.