The subject of the research paper is reflected in the presentation of the importance and role of entrepreneurship in the sustainable development of rural areas. Entrepreneurship and sustainable development of rural areas can be considered as one of the key solutions to reducing poverty, unemployment and migration from rural areas. The aim of the work is to clarify the concepts of entrepreneurship, to present an overview of the main determinants of sustainable development and its role in the development of rural areas. Then investigate the importance of the strategy of sustainable development of rural areas, present a SWOT analysis and offer recommendations for the sustainable development of rural areas. Using the example of the Capra Domestica farm from Perković, a successful entrepreneurial project of producing top-quality goat milk products will be presented. Rural entrepreneurship and innovation approaches lead to solutions for the development of rural areas, change lifestyles and create progress for local communities. Improvement of agricultural production and application of the strategy of sustainable development of rural areas will lead to employment of the population of rural areas and branding of local products on the market. The development and growth of rural areas is a necessary prerequisite for the development of the entire national economy. Entrepreneurship in rural areas reveals a unique combination of resources in both agriculture and tourism. The development of rural special forms of tourism could extend the tourist season throughout the year, since the Republic of Croatia has all the predispositions to deliver quality products and services.