Rural entrepreneurship plays a pivotal role in fostering economic development, job creation, and self-sufficiency in rural areas. With a large percentage of the population dependent on agriculture, diversifying economic activities through micro-enterprises and small-scale industries (SSIs) can significantly contribute to poverty alleviation and sustainable growth. This study explores the role of skill development in empowering rural entrepreneurs, examines challenges faced in the sector, and evaluates government initiatives designed to support rural businesses. By analysing the effectiveness of training programs, financial support mechanisms, and infrastructure development, the study provides insights into strategies that can enhance the growth and sustainability of rural enterprises. Findings suggest that targeted skill development, improved market access, and policy reforms are crucial for fostering a thriving rural entrepreneurial ecosystem.