Abstract Aims: The process of entrepreneurship and creativity, which is the basis of change and transformation, plays a very fundamental and determining role in this field. So, in recent years, the only effective solution in the field of employment and rural economy of the country is the prosperity of en.trepreneurship from the path of innovation. Therefore, the purpose of this study is to identify the factors affecting innovation and its impact on the entrepreneurship process in Farouj County, in order to take a step towards the development of rural areas. Method: The statistical population included all entrepreneurs and successful individuals in the villages of the city who were 63 farmers as gardeners and farmers. The validity of the research tool was confirmed by expertschr('39') opinions and its reliability was confirmed by Cronbachchr('39')s alpha coefficient (α = 0.898). Results: The descriptive statistics of the research indicate that the individual characteristics index with 3.37 and the cultural and legislative index with the 3.29 statistic have the highest mean as structural indicators of rural innovation. According to Pearson correlation results, there is a positive and significant relationship between individual indicators, education and research, economic and infrastructural with their entrepreneurial level. Based on the results of the path analysis, the individual index with a coefficient of influence of 0.334 and then the education and research index with a coefficient of 0.238 and finally economic index with a coefficient of 0.131 have the most impact on the formation of rural entrepreneurship