The success or failure of entrepreneurs in a country is highly determined by the ability of the government to formulate and implement policies that would create a good atmosphere for business activities to thrive. In most cases developing nations do not possess favorable policies and are plagued with numerous factors which deny them of these policies, these factors range from poor implementation to inconsistency in application and also corruption. An important distinction between developed and developing nations often lies in the wide disparity between policy pronouncements and policy implementation. However, signs of this disparity are found in the extent that policies are clear and measurable and that application is consistent. The study made use of primary data sourced from 100 respondents through the administration of questionnaire. The paper discusses the various factors which militate against the implementation of policies, which will in turn affect the success of entrepreneurial activities. It also seeks to answer questions which centers around the effects of economic variables on entrepreneurship as a factor of production. It was recommended among others that the implementation of policies should be swift and consistent and also leaders should embrace a foresighted approach in the formulation of policies.