Every human being satisfies their needs by consuming the products. Factors of production help to produce the product. Entrepreneurship is the process of forming a company/organization by organizing the three factors of production in an efficient way to provide an innovative and creative product to the market. Rural entrepreneurship helps a country/region to have balanced regional development and also it helps to utilize the resources in a better way to improve the rural economy. The aim is to study challenges faced by the rural entrepreneurs in Kannur district. Data is collected from 40 respondents through the convenience sampling method. The study reveals that the major challenges faced by the rural entrepreneurs are competition from urban market, lack of family support, market-related issue, lack of transportation facilities and resources.

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Keywords: Rural Entrepreneurship, Challenges, Innovative and Creative Product, Rural Entrepreneurs.