Currently the globalization is still in effect and export-oriented economic development and job creation models that have been adopted throughout the world become mandatory to be converted into the innovation-based export models. Entrepreneurs are the most important actors in this transformation. Entrepreneurs are the main driving forces of innovation. They possess innovative business ideas or inventions. But they are confronted with several major problems when they want to commercialize this ideas or inventions from funding shortages to production issues and to sales and marketing problems. When they could not find the support they need, they have to shoulder all these processes alone and therefore time and resources are wasted and this reduces the chance of success of the enterprise. To accelerate the innovation process and to commercialize the innovative business ideas or inventions some proper persons or institutions must come into play. Even though public institutions provides some financial incentives that needed by the enterprises they cannot provide support for the other requirements for the success. As a result, integration of the suitable persons who are known as business angels, who have financial resources and expertise in their sectors and advanced business connections, to the system is very crucial. Business angels have been shown to be effective on increasing the number of entrepreneurs, the rise of innovation capacity, improvement of the performance of companies and employment creation. Because of the absence of a sufficient number of business angels in Turkey incentives must be given to this area aiming especially to accelerate the institutionalization. Owing to the increasing number of business angels hence the increasing number of innovative entrepreneurship it will be possible to find more efficient solutions on economic growth and especially on employment issues in countries Today, unemployment which has a direct impact on the economic and social development of a country has become an important issue to ponder upon. In Turkey according to the unemployment figures of October 2015, the unemployment rate calculated as 10.5% , the number of unemployed was over 3 million and youth unemployment was close to 20%. Governments in Turkey have searched for remedies to this critical and chronic problem for a very long time. After the 1980s, to boost economic growth and solve the critical unemployment problem, Turkey has changed its economic model to the export-oriented growth model that gives special emphasizes to the international competition, targeting integration with the world economy and the dominance of market economy instruments. Export-oriented development model is an accurate model that is used by developed and developing countries in the world today. But today’s main issue that should be considered is what kind of export model is needed to be implemented. Nowadays, even countries rich in resources and also have large export incomes have begun to realize that the model of exporting only natural resources is an unsustainable model for the economic development due to the big fluctuations in external demand and prices. In both developed and developing countries knowledge and innovation-based development is seen as a means of maintain the stability and dynamism in the economy and now all countries and especially the resource-poor countries are beginning to understand that for exports and growth they have no other alternatives than innovationbased development model. In a global competitive environment sustainable innovation is a need to be strong and have the advantage. Small and big entrepreneurs are the indispensable elements of this new model of innovation based export. Medium and large companies are one of the sources of innovation but they usually focus on their own industries and business sectors and therefore their innovation targets are generally restricted to the improvement of existing products and services. Therefore, the innovation objectives are focused on a narrower area. Although they always cannot enjoy all the benefits, it was expected from small and new ventures to create game-changing innovations to survive in the market since they have no alternatives other than bringing market some differences. Therefore, their innovative business ideas or inventions carry big potentials for economies. But one of the biggest problems they face is the commercialization of inventions or ideas. Commercialization accommodates many factor like financing, the need of strategic decision-making and the need for marketing and sales and usually entrepreneurs are the people with only brilliant ideas but not experienced with a setting and developing companies and managing them and they have shortcomings in terms of knowledge and experience in these areas. At this point, business angels are the only factors that can come into play. Business angels with their investment power, expertise and industry connections play a critical role for the commercialization of a products and especially the innovative products. By promoting entrepreneurs to make more commercial attempt through their investments they contribute to the strengthening of the eco-system for entrepreneurship and innovation. This study was conducted to reveal the effects of the angels on entrepreneurship, innovation and employment. Usually investments made to non-public and in early stage companies and since there is no legal obligation for the announcement of these investments, the detection of many business angel investments are not possible in Turkey and in the world. For this reason, accessing to the broader information about their investments is problematic. Under these limitations as much literature review as possible was conducted on business angels. With the help of this study the questions of who are business angels and what innovation is and what are the effects of business angels on entrepreneurship and innovation