Innovation culture has emerged as a critical determinant of entrepreneurial performance in the modern knowledge-based economy. Organizations that cultivate innovation-oriented cultures encourage creativity, experimentation, risk-taking, knowledge sharing, and continuous learning, thereby enhancing their ability to develop new products, services, and business models. Entrepreneurial ventures operate in highly dynamic and competitive environments where innovation capability is essential for survival and growth. This study examines the relationship between innovation culture and entrepreneurial performance through a comprehensive review of theoretical and empirical literature. The findings indicate that innovation culture positively influences organizational adaptability, opportunity recognition, employee engagement, business growth, competitive advantage, and financial performance. Entrepreneurial firms that foster innovation-oriented values and behaviors demonstrate greater resilience and long-term success. However, challenges such as resistance to change, limited resources, leadership constraints, and organizational inertia can hinder innovation initiatives. The study proposes an integrated framework for developing innovation culture and enhancing entrepreneurial performance in modern enterprises.