In this chapter, we review different types of entrepreneurship and the institutional environment in which they prosper, followed by a more detailed analysis of how government regulations and taxation may affect entrepreneurial and migration decisions. Several studies suggest that entrepreneurship and migration go hand in hand. Unfortunately, U.S. government policy has not always been kind to domestic and immigrant entrepreneurs alike. This chapter discusses how major U.S. government regulations in general, and taxes in particular, impose a significant burden on productive entrepreneurs, especially on those who run a small business. Particular attention is paid to the estate tax, which may have a disproportionate negative effect on small firms. Keywords: Entrepreneurship, regulation, taxation, migration

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