For under the background of current popular business boom of entrepreneurship is not high quality, innovative problems, this paper argues that from the economic growth quantity and economic growth quality of the two dimensions, analysis of influence of public entrepreneurship to economic development and public business impact on economic development in different development stages and different economic regions of heterogeneity should be investigated. The paper studies the influence mechanism of public entrepreneurship on economic development from four aspects of the employment effect, competition effect, innovation effect and structure effect. The paper points out entrepreneurial activity not only through the employment effect and the competition effect to economic growth quantity, to promote economic growth in the short term, is more important, the entrepreneurial activities through the innovation effect and structural effect of economic growth quality, promote long-term economic growth.