In India nearly 73% of the population live in rural areas where agriculture is being the major part of their life. The economic development of the country is mostly depends upon the development of rural areas. Rural entrepreneur is one of the most important inputs in the economic development of the country. The scarce resources are used efficiently by the rural entrepreneurs by increasing the profits and decreasing the cost. The main problems faced by the rural entrepreneurs are shortage of finance and raw materials. And the peculiar problems faced by the rural entrepreneurs are illiteracy, lack of training and experience, fear of loss, competition from urban entrepreneurs. Rural entrepreneurship can be considered as the solution for unemployment, migration, economic disparity, reduce poverty, development of rural areas and backward regions.