The issues of rural entrepreneurship are increasingly significant in the developing countries, as a result of a great number of programs whose goal is to encourage the sustainable rural development. However, these issues are also current in other countries in which the rural development is connected to entrepreneurship more than ever. One of the most important solutions for sustainable rural development is rural entrepreneurship development. Today, entrepreneurship as a strategy in development, growth and prosperity of human societies has converted to a replacement through which all factors, resources and facilities of a community spontaneously and with exposure in an evolutionary process has been prepared in order to achieve high social ideals for being the origin of positive socio-economic impacts. Most of the rural entrepreneurs face peculiar problems like illiteracy, fear of risk, lack of training and experience, limited purchasing power and competition from urban entrepreneurs. In recent times, more and more entrepreneurs are realizing the potential of rural market and have started focusing on it. This paper focuses on the challenges and opportunities of the rural entrepreneurship in India.