This research aims to describe the context of innovation and sustainability regarding the development of Omani entrepreneurship. The main focus of the study will be on understanding the approach of the specific types of enterprises that will encourage innovation and sustainable development in the country. Currently, the government in Oman is encouraging entrepreneurship and SMEs to improve the economy of the country by reducing hiring new graduates and encouraging them to become entrepreneurs. However, there is limited academic research or studies that propose regulating innovation and sustainability in Omani SMEs; hence, this research goal will cover this gap to meet the country's needs. The literature review of the research provides analysis and contextual discussion of entrepreneurship, entrepreneurship education (EE) and sustainable SME development from the context of Oman. To do so, it integrates the extensive entrepreneurship and EE literatures linked to the wider Middle East and other regions to examine the SME sector in Oman, including analysis of the various government-led initiatives designed to accelerate the process of SME growth. It also examines the pull and push factors affecting SME development and sustainability in Oman, as well as various contextual barriers. Based on this analysis, the chapter explores ways in which to tackle these challenges with a particular emphasis on EE provision from early educational stage to the enterprises' growth stage as an innovative way to sustain growth in the Omani entrepreneurship sector. This research has used the qualitative method as it has taken into consideration interviews with entrepreneurs and also with the government entities and initiatives that provide services and support SMEs. Thus, this approach will contribute to exploring and understanding the significant challenges and gaps that exist between the agents and principals. The agents are classified as SMEs and the principals are classified as the entities that provide SMEs with services. The study employed the random sampling technique in order to identify the sample group that provided key information that guides the research process and the study. Whereas, the common key themes of the analysis and findings are; "government procedures and standards", "innovators and talents", "entrepreneurship culture", "collaboration between large companies and SMEs", "SME law" and "the role and collaboration of entrepreneurship education (EE) between higher education institutions and industrial sectors". These themes will be discussed in the thematic analysis method where the context will flow according to the themes. It can be concluded that the recommendations have been considered based on the literature and findings of the research and can be introduced in brief: 1) Formulating entrepreneurship education (EE) by way of the Education Council collaborating with the Ministry of Higher Education and the Ministry of Education which align with Oman Vision 2040. 2) Accelerate publication of SME law in accordance with the SMEs requirements and environment. 3) Create many incubators in different specializations backed by the government entities and large companies to incubate entrepreneurs that have a relevant role. This research has been awarded the Zuri Prize for Innovation and Enterprise for making a scientific contribution to the development of a business.