The aim of this paper is to consider the role of entrepreneurial innovation in tourism development through the facilitation of networks within destination communities. It provides an overview of how this could pioneer new products and services and stimulate social and economic transformation with direct, sustainable, and equitable distribution of benefits with respect to the livelihoods of the indigenous population. Thus, within the context of the tourism industry, theories and concepts associated with entrepreneurial innovation, community networks, and sustainable livelihoods are reviewed and analysed.