In any country education is a social process and in this context, quality of education assumes an added importance and becomes the primary concern of all the stakeholders in education. In current market turbulence, a focus on entrepreneurship has a special strategic significance for education as it reflects a growing perception that new graduates need the technical and behavioral attributes of an entrepreneur for a successful professional life. In response to this inevitable change, educationists must do rethinking on the way the students are educated by infusing creative thinking and innovation in their educational curriculum. With this change in the mindset and the relative knowledge that entrepreneurs bring forth, in many institutes some courses on entrepreneurship and innovation are being developed and offered to cater to the increasing demand. Entrepreneurship is a process, not a result since it is action oriented and is not the result of actions but consists of actions themselves. As the previous paradigm of a ‘science based conceptual engineer’ has given way to a ‘science-based entrepreneurial engineer’, so the engineering institutes are meeting this demand through a heightened entrepreneurial outlook. The paper discusses their strategic role in generating entrepreneurship which is a potential source of employment generation in a developing nation like India. The paper also dwells on prevalent myths on entrepreneurship among the engineering students and a remedial approach is suggested to enhance urge for entrepreneurship among these graduates.