The argument of this booklet, one of a series intended to apply economic principles to major social and political issues of the day, is that entrepreneurs are central to the development of the American economy. In an historical look at American entrepreneurship, it is noted that entrepreneurs have become central figures in the American economy because they provide the innovative element that alters previous business practices. Moreover, this entrepreneurial spirit has permeated the history of the United States. For example, from the colonial period on, the importance of the right to private property and limited government intervention in the economy provided an environment conducive to entrepreneurs. It is noted that although entrepreneurs come from different segments of society, the thing that makes entrepreneurs unique is their ability to be innovators and explorers and to carry their innovations to the marketplace. Despite the changing environment that has brought greater government controls over business activity and private practice, the modern entrepreneur is alive and well, and despite fears that greater government regulation may have discouraged innovation and entrepreneurship, there are many new frontiers (e.g., the computer industry) open to the enterprising businessperson. (IS)