This thesis examines the role of entrepreneurship in the sustainable development of rural areas, with a particular focus on the Knin region. Entrepreneurship can play a crucial role in the development and sustainability of rural areas, offering solutions to reduce unemployment, poverty, depopulation, and foster economic progress. By implementing innovations and better utilizing local resources, entrepreneurs can significantly contribute to revitalizing rural areas and improving the quality of life in these regions. The theoretical framework of the thesis covers key concepts related to entrepreneurship and sustainable development, and explores their interconnections in the context of rural areas. Sustainable development involves balancing economic, social, and environmental aspects, which is especially challenging in rural settings often faced with limited resources and numerous shortcomings. In this context, entrepreneurship can be essential for generating new jobs, improving infrastructure, and increasing economic activity. The empirical part of the research is based on qualitative analysis conducted through in-depth interviews with entrepreneurs from the Knin region. The Knin region was chosen as a case study due to its specific characteristics, including high depopulation rates, economic stagnation, and development challenges. The interviews explored key factors influencing entrepreneurial development in this region, as well as the obstacles that entrepreneurs commonly encounter. The analysis results highlight several crucial factors for the success of entrepreneurial initiatives in rural areas, particularly the availability and quality of institutional support, access to financial resources, education and training for entrepreneurs, utilization of local resources, innovation application, and market adaptability. The thesis emphasizes the need for an integrated approach that includes collaboration among all local stakeholders to create an environment conducive to entrepreneurial development. This approach would establish conditions for the long-term sustainable development of rural areas, which is vital for revitalizing these regions that face challenges such as depopulation and economic stagnation.