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Small businesses and farms are today struggling to find an innovative solution to a globalizing market and a challenging society. Among different aspects, small businesses, especially in rural areas, need to find a balance among tailor-made innovative solutions, specific customers engagement strategies, creative value creation solutions, and new business concepts able to reshape existing markets. In this study, 16 small enterprises of rural areas near Turin belonging to different sectors collaborated to co-create innovative business models. To guide this discussion through a sustainable innovation path, a territorial Living Lab set up the four macro-topics of the co-creation workshops linked to the United Nations’ Sustainable Development Goals. Innovative business ideas were elaborated through the Brainstorming and Business Model Canvas tool and data were examined with SWOT and cross-case analysis. The results of the workshops pointed out four different innovative business ideas elaborated by the entrepreneurs, all linked by the need to translate innovation into sustainable adaptive solutions to local specificities. This case study showed that a range of enabling factors, such as the creation of a shared vision among local actors, can be codified to clear barriers and/or create innovative business solutions linked to economic, environmental, and social sustainability in rural areas.

Small Rural Enterprises and Innovative Business Models: A Case Study of the Turin Area