Rural areas have experienced a decline in traditional livelihoods, leading to a decrease in population and economic challenges. However, tourism has emerged as a crucial source of income and a driving force in rural community development. This study explores the role of lifestyle entrepreneurs in creating sustainable entrepreneurial ecosystems in rural tourism destinations. It investigates the motivations and management practices of lifestyle entrepreneurs and examines their perceptions of their own performance and contribution to sustainable entrepreneurial ecosystems in their local communities. Six in-depth interviews were conducted with lifestyle entrepreneurs operating in different regions of rural Sweden to address the research questions.    The findings reveal that lifestyle entrepreneurs are primarily motivated by the quality of life, personal fulfilment, creativity, autonomy, and a strong connection to their community and local environment. These motivations influence their decision-making processes, leading to the application of sustainable business practices that align with their values. Networking and cooperation among lifestyle entrepreneurs are emphasized, with a focus on collaboration over competition, resulting in benefits such as sustainable practices, increased competitiveness, and opportunities for knowledge sharing and discussion. However, the extent of engagement in networking and cooperation may vary based on entrepreneurs' motivations and priorities.   The study concludes that promoting sustainable tourism practices and supporting the well-being of lifestyle entrepreneurs are crucial for local sustainable development. Policymakers and stakeholders should consider the unique needs of lifestyle entrepreneurs and foster a supportive environment that encourages cooperation, networking, and work-life balance.