The purpose of this study is to explore the driving forces of innovation in micro and small enterprises (MSEs) in the tourism industry and to understand how these drivers help allocate and utilize resources, thereby increasing innovations' success and sustainable development. This study focused on Taiwan's bed and breakfast (B&B) industry. In-depth interviews were conducted with the owners of 20 B&Bs that displayed innovation activities and were selected following a strict evaluation procedure. A content analysis was then performed to obtain the seven driving forces of innovation: B&B owners' lifestyles, customers, market information, external knowledge, business expansion needs, policy, and familiar partners. The results show that the B&B owners' lifestyles and customers are key drivers of innovation. On the other hand, employees, family and friends are less frequently mentioned. Our results can serve as a reference for innovation in both the B&B industry and MSEs.