At present, the mode of factor-input economic growth is difficult to sustain, and China is in a critical period of energy conversion between old and new. Innovation and entrepreneurship can improve the quality and efficiency of production. It has obvious effects of employment expansion and economic growth, and has become a strategic choice for China’s future economic development. The report of the Nineteenth National Congress of the CPC put forward the idea of " stimulating and protecting entrepreneurship and encouraging more social subjects to engage in innovation and entrepreneurship”, which is a positive response to this strategic choice. From the perspective of genetics, entrepreneurs seek market competitive advantages through innovation and entrepreneurship behavior, which puts forward higher requirements for entrepreneurs’ endowments, including internal psychological endowments and external resource endowments. Among them, psychological endowments have long been valued by researchers of innovation and entrepreneurship. It is generally believed that innovation and entrepreneurship behavior largely depends on the special personalities of entrepreneurs, and these personalities are derived from deep psychological factors. Only when external resource endowments are perceived to form an internal psychological atmosphere, can it play a role in innovation and entrepreneurship. Therefore, this paper uses the entrepreneurial success model to demonstrate the role of psychological factors in innovation and entrepreneurship. 　　The results of the study show that: Firstly, psychological factors can significantly affect the practice of innovation and entrepreneurship, and the role of these psychological factors is significantly different in different stages of enterprise growth. Secondly, from the psychological factors of the distal to the specific practice of innovation and entrepreneurship, there are many intermediary variables. The pre-dependent variables of innovation and entrepreneurship emphasized by a large number of researches can be traced back to the psychological level as intermediary variables. Therefore, the pre-dependent variables of innovation and entrepreneurship can be explained by psychological factors. Thirdly, there is a causal relationship between psychological factors and innovation and entrepreneurship. The logical relationship between psychological factors and innovation and entrepreneurship is influenced by market environment, social culture and regional factors, which explains the differences between regions and eras in entrepreneurship. It shows that entrepreneurship can be acquired through acquired practice. Public policies can play an important role in stimulating and protecting entrepreneurship.