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nd hoping that life will become easier and country will prosper. This kind of transition still can be seen these days, slowly but economic situation is getting better. An important event happen in 1 may, 2004 when Lithuania became a memebr of European Union together with the nine other states. Lithuania still needed to achieve environments that was set by the European Union in order to achieve the Schengen area and Euro zone. During the crisis most of the countries faced a huge decreses in their GDP real growth rate. Lithuania was not an exception and its GDP in 2009 decresed by 14.7%. (https://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&plugin=1&language=en&pcode=tsieb020). In 2010 when crisis is overpast, Lithuanian economy is recovering and it can be seen the positive factors. One of them is that GDP for the next year will be positive and stable. So we can state that Lithuania is on the right direction. Entrepenuership is one of the most important approaches that need to be considered seriously and appropriate steps needs to be taken in order to stimulate succesful economy. It is obvious that all countries tried to be prepared for the crisis and do their best in order to stabilize their economies. Lithuania showed some will to help entrepreneurs and put some incentives for innovations. But the evidence show that Lithuanian govenrment didn‘t put enough effort to help entrepreneur activities and innovations. As we see now those promotions were just a little help for innovative entrepreneurial activities and to expect more help would be wrong especially after the crisis.

In the world there are many different ideas or systems of how country‘s economies should be run. The most common economic systems are socialism and capitalism. Capitalism is the economic system based on private or corporate ownership of production and distribution of goods. On the other hand socialism prescribe that government should observe or be in charge of production, economic prosperity and distribution of goods. Generally looking both of them had some similarities, but in conclusion they are very different in how and who runs the economy. In capitalist countries governemnt should not intervene in the economy and have system of free enterprise. Also government must make sure that economy runs most efficiently satisfying people‘s needs. Capitalism is described as a competetive economic system and there is a rivalry in getting or supplying economic goods. Most of the time there is a strict competition between the buyers, who seek the best possible deal in purchasing goods or services and the sellers, who try to make the best possible sale and make most profit.

Capitalism and its forms were deeply analyzed by the William J. Baumol, Robert E. Litan, and Carl J. Schramm in the book “Good Capitalism, Bad Capitalism, and the economics of growth and prosperity”. The authors proposed that there are two types of capitalism, which is divided into the “good” and “bad” capitalism. Also, it is divided in to the four categories of capitalism; entrepreneurial, big-firm, oligarhic and state-guided capitalism.

Entreprenuerial capitalism is the key succes to enreprenuership, that concentrates on small firms and their innovations. It features constant stream of innovation and plays important role in capitalism economies. Small firms plays a significant role in country economy, that leads nation to grow and prospe