In this chapter we argue that the ability of people to freely trade, enter into contracts, and start businesses in a system of private property, and the rule of law are crucial for productive entrepreneurship. One measure of how freely individuals can engage in economic activity is the Economic Freedom of the World (EFW) index. After examining the economic policies that harm economic freedom and possibly entrepreneurship, we highlight the correspondence between economic freedom and a number of measures of entrepreneurship. We conclude with some thoughts regarding future research involving economic freedom and entrepreneurship. Keywords: Institutions, entrepreneurship, economic freedom