How would you suggest I write an essay based on how entrepreneurship is encouraged in my country?
The main difficulty I have in answering this is that you haven't specified your country. Different countries have different policies to encourage entrepreneurship, reflecting their different economic circumstances.
In the developing world, one of the major barriers to entrepreneurship is lack of access to the financial system. Several strategies have been employed to deal with this. In India, the first step has been creating universal biometric identity cards and attaching free bank accounts to those cards. Encouraging and supporting the rise of mobile banking has been a key step in most of sub-Saharan Africa. Micro-finance has also been an extremely important way to support entrepreneurship in the developing world.
In the developed world, most people have access to banking and other financial services. Thus, the main strategies are more likely to involve reducing regulatory barriers to starting new businesses, encouraging loans to small businesses, and creating new business incubators.
A government can encourage entrepreneurship by taking a number of steps. Some of these may be applicable to your specific country, while other may not be. One of the first steps to encourage entrepreneurship is to minimize barriers to initiating a business. The paperwork and permissions necessary to start a business can be major deterrence to many people and easing out the process will help people take the initiative. Ease of getting loans is another step a government can take. Gathering enough funds to start a business can be a major hassle. Easing out the norms for venture capitalist's funding and launch of IPO (initial public offering) can be very helpful to young entrepreneurs. A conducive business environment in terms of tax-rebates, cheaper land, etc. can be helpful. Promoting entrepreneurship through education, in terms of college level courses, seminars, workshops, mentorship, etc. will also be very helpful.
Hope this helps.
The best incentives involve taxes:
Unless tax law has changed, a person can currently engage in e-commerce without reporting income until they have had 200 sales or $20,000 in income. As a small time entrepreneur, I do not have a CPA on staff nor do I have profit to share with a 3rd party - like my government. This one aspect of online sales lets me "dip my toe in the water" - try an idea that may or may not be viable without the infrastructure of a large company or the need to incur large debt to get started.
(a disclaimer, since I am not a tax specialist. The thresholds mentioned are what will cause an e-commerce "mall" to issue you a 1099 tax form based on your sales on their site. So eBay, Amazon, Etsy, etc. will report your income to the gov't once you have generated business at those levels).
But tax incentives don't need only to fall to the entrepreneur to improve entrepreneurship. Take the tax breaks homeowners get for installing solar heating into their homes. Solar energy is fledgling industry and needs the "jump start". When solar energy products become part of established companies, industries, the tax benefits will likely move to a new technology.
Apart from taxes, governments are often encouraging entrepreneurship, via grants, among underrepresented communities. Those grants might go to women starting a business (sometimes only in areas where they are underrepresented - like help forming a construction company but not help forming a day care company), or to a member of another minority group where its members are not represented in business as owners.
The power of the gov't pursue to change the business climate is astronomical - and yet can be hidden from us. Isn't a tax credit for a family for childcare a mechanism that allows an adult (one single parent, or one parent in a two parent family) to more easily participate in business life?