Economic globalisation and the subsequent intensification of inter-city competition have profoundly changed urban governance. This is particularly evident in the field of urban spatial development. The change is often described as a shift from a managerial mode of governance to a more entrepreneurial mode, strongly characterised by risk-taking, innovation, a strong orientation toward the private sector and a strategic approach which focuses on economic growth. This study reviews the challenges that urban entrepreneurialism must overcome to maintain and strengthen its relevance in the 21st century. Urban policy planners are expected to address an increasingly wide range of objectives, including social, environmental and cultural issues as well as economic ones.