PurposeThis paper aims to enhance understanding of how sustainable entrepreneurship (SE) contributes to sustainable development in the tourism sector. To do so, specific factors that act as enablers or inhibitors of SE are identified according to a co-evolutionary lens.Design/methodology/approachA co-evolutionary explanation of the firm? Environment relationship is adopted to undertake a qualitative empirical study of the Castelli Romani tourism destination (Italy), via 23 semi-structured interviews according to a narrative approach.FindingsThe paper demonstrates that entrepreneurs play a crucial role in sustainable development but cannot act in isolation. In fact, according to the co-evolutionary approach, they influence and are influenced by 20 factors. Accordingly, SE can be conceptualised as resulting from effective co-evolutionary interactions between micro (i.e. entrepreneurs and their firm), meso (i.e. the destination where tourism firms are based) and macro (i.e. the wider socio-economic and natural system) levels.Practical implicationsSeveral actions are suggested to entrepreneurs and policymakers to help achieve specific sustainable development goals. These actions focus on: (1) training courses, (2) investments in technologies, (3) creation of innovative business models, (4) exploitation of cultural and natural resources, (5) community involvement and (6) multi-level partnerships.Originality/valueThis is the first study that adopts a co-evolutionary lens to investigate the influencing factors of SE in tourism, shedding light on the effects of their dynamic interdependence. Thus, it provides a more nuanced SE conceptualisation that takes a holistic and dynamic view of sustainability.