Rural development is more than ever before linked to entrepreneurship. Institutions and individual promoting
rural development now see entrepreneurship as a strategic development intervention that could accelerate the
rural development process. Furthermore, institutions and individuals seem to agree on the urgent need to
promote rural enterprises; development agencies see rural entrepreneurship as an employment potential,
politicians see it as the key strategy to prevent rural unrest; farmers see it as an instrument for improving farm
earnings; and women see it as an employment possibility near their homes which provides autonomy,
independence and a reduced need for social support. To all these groups, however, entrepreneurship stands as a
vehicle to improve the quality of communities and to sustain a healthy economy and environment. Without
entrepreneurial capabilities which are well developed or potentially available, external funds will be wasted on
projects that will not provide long term economic growth. Rural entrepreneurship stimulates local
entrepreneurial talent and subsequent growth of indigenous companies; it finds a unique blend of resources either
inside or outside of agriculture. Therefore to accelerate economic development in rural areas, it is necessary to
increase the supply of entrepreneurs, thus building up the critical mass of first generation entrepreneurs who will
take risk and engage in uncertainties of new venture creation, create something from practically nothing and
create values by pulling together a unique package of resources to exploit. The paper therefore deals with the
following three issues: firstly, it sets out reasons why promoting entrepreneurship is a force of economic change
that must take place if many rural communities are to survive, secondly, it deals with what policies are necessary
in order to create an environment in rural areas conducive for entrepreneurship and thirdly, it considers
developing and promoting of women entrepreneurship as a way for sustainable rural development in Nigeria.