In this article we analyze the relation between the economic freedom and the level of entrepreneurship in Romania. The widely used hypothesis that a free economic environment tend to generate high levels of entrepreneurship is discussed for the case of Romania. The evolution of a few fundamental features of the institutional environment for doing business in recent years is investigated, along with some measures of the level of entrepreneurship. A strong direct relation between economic freedom and entrepreneurship level was found for a large number of countries and geographic areas around the world. The available data does not allow us to make a quantitative analysis for Romania, but some suspected reasons for a direct relation between economic freedom and entrepreneurship level are presented. Future research directions are also suggested.