Entrepreneurship and innovation are two inseparable terms which play a crucial role in modern business. Innovations enable companies to remain competitive, adapt to market changes and create additional value for their customers. Innovation is essential for entrepreneurs who want to stand out by introducing something new to their industry and market. Thus, innovative entrepreneurs recognise the importance of innovation and, as a result, courageously implement it within their organisations since they understand that it will help them differentiate from the competition and achieve a competitive advantage. Therefore, the purpose of this paper is to analyse the importance of innovation in entrepreneurship as well as its impact on business success. Moreover, the aim of the paper is to identify the key characteristics, common traits, and competencies of innovative and successful entrepreneurs. Special emphasis will be placed on creativity, proactivity and a propensity for risk-taking, all of which are qualities that enable entrepreneurs to identify opportunities, overcome challenges, and transform their ideas into successful ventures, projects, and activities. In addition, the empirical part of the paper will present examples of innovative entrepreneurs and analyse as well as compare the characteristics that motivated them to innovate. The adoption and continuous application of innovations are a vital foundation for building sustainable and successful businesses in contemporary entrepreneurship.