Good governance and engaged entrepreneurship are integral pillars for innovation in rural tourism and ultimately its success. This paper investigates the barriers to innovative rural tourism development in the province of Ontario, Canada, through a stakeholders' workshop where success factors for innovation in rural development were categorized as: governance, human resources, investments, research, marketing, communication and co-ordination. A detailed survey followed up on stakeholders' perceptions of innovation in rural settings based on the themes identified. This research suggests that while engaged entrepreneurship may not necessarily be conducive for radical innovation, it has been instrumental in providing the impetus for incremental and liminal innovation, allowing rural businesses to sustainably thrive and also to survive turbulent economic environments. Similarly, governance, which includes broader strategic approaches for the management of rural tourism, bottom-up planning, longer-term strategies and better coordination at the federal level, also creates the environment for innovation in rural tourism. Engaged entrepreneurs are further perceived to play a critical role in providing leadership at the local level to effect product development, packaging, advocacy, training and development for the overall success of rural tourism in Ontario, Canada. Keywords: rural tourism, governance, engaged entrepreneur, innovation, leadership
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