Narrative method which is regarded as a promising qualitative method has more and more attention in the field of entrepreneurship research. The paper discussed connotations, characteristics and methods of entrepreneurial narrative. First, we discussed the essential connotations based on the cognitive pattern, the narrative material, analysis method and theoretical value of entrepreneurial narrative research. Then, Compared with quantitative empirical research, we analyzed the three important characteristics of narrative research: (1) Focus on the individual experience; (2) Emphasis on events, situations, and the process; (3)The pursuit of building analytical theory. Finally, we summarized five steps of entrepreneurial narrative research.