This thesis examines spatial variations in entrepreneurship across sub-regions of Great Britain from 2008-2010. It analyzes two prominent theories of entrepreneurship: the Knowledge Spillover Theory and theories emphasizing human capital and entrepreneurial ability. The results show that more knowledge intensive regions have higher firm birth rates, and a diverse regional knowledge stock generates more opportunities. Human capital is also vital to entrepreneurship, with university education being a greater source of ability than work experience. Factors like regulatory burden, financial constraints, unemployment, and lack of entrepreneurial culture can significantly reduce regional entrepreneurial activity. The thesis concludes with policy implications around intellectual property rights, entrepreneurial education, and reducing unnecessary public regulation.