Abstract: “SMEs are recognized as a driving force for innovation, entrepreneurial spirit, and competitiveness, which are seen as keys to achieving sustainable development. The development and performance of SMEs have a positive impact on economic development. In most of the developing economies, SMEs not only contribute significantly to improved living standards, employment generation, and poverty reduction but they also bring about substantial domestic or local capital formation and achieve high levels of productivity and capability. Since the world today has become more complex, innovation has been considered as a prerequisite for competitive advantage for SMEs. In today's dynamic and uncertain economic environment, SMEs and organizations are trying to find new ways of achieving their strategic goals and ensuring long-term success. The current state of development shows that there are many opportunities for synergy between sustainable development and entrepreneurship. As the Omani economy moves”

Keywords: Innovation, Entrepreneurship Development, Small & Medium Enterprise, Competitiveness, Sustainable Development