Rural entrepreneurship has emerged as a significant driver of economic development, poverty alleviation, and social transformation in developing countries like India. It plays a pivotal role in utilizing local resources, creating employment opportunities, and fostering innovation in rural areas. This study examines the dynamics, challenges, and opportunities associated with rural entrepreneurship, with a focus on the factors influencing entrepreneurial activity, the role of government initiatives, and the impact on rural livelihoods. The research highlights that while rural entrepreneurs contribute substantially to local and national economies, they face multiple challenges such as limited access to finance, inadequate infrastructure, lack of market linkages, and insufficient training and skill development. Moreover, the majority of rural youth do not perceive entrepreneurship as a viable career option, which limits the potential for sustainable rural enterprise growth. The study emphasizes the importance of government support in the form of financial assistance, training programs, regulatory frameworks, and promotion of standardized markets to encourage rural business initiatives. NGOs and local institutions also play a critical role in providing mentoring, technical support, and community-based networks to strengthen entrepreneurship. Using a mixed-methods approach, the study combines quantitative surveys and qualitative interviews to analyze the educational background, funding sources, marketing challenges, and resource utilization patterns of rural entrepreneurs. Findings indicate that self-financing and family supports dominate as initial funding sources, while government institutions and open markets provide essential resources for business operations. Competition, pricing, and distribution emerge as major marketing challenges, whereas training and awareness programs significantly enhance entrepreneurial capabilities. The study concludes that rural entrepreneurship not only contributes to national income generation but also serves as a bridge between innovation and market development, fostering inclusive and sustainable economic growth. It calls for integrated rural development programs, capacity-building initiatives, and policy support to motivate rural youth, reduce poverty, and transform rural communities into hubs of economic activity