The increased knowledge that there exists connections between entry rates into entrepreneurship and the business cycle creates room for economic policy, to moderate the effects of the business cycle, and also influence the entry rates. In addition, increased structural transformation in the economy also creates room for new economic activities. The knowledge-intensive manufacturing industry in Sweden has in relative size been reduced. Measures to counteract this development is to increase innovations, patents, and new business formation. Thus, the challenge is to create room for an increasing support of the entry of entrepreneurship by economic policy.