India’s economy is still rural-dependent, especially in agriculture. For the development of any economy, all three sectors of development are important. As agriculture is still the main economy of India, the other two sectors depend on which further affects the overall development. Primary agriculture gives rise and support to secondary agriculture which is playing a pivotal role in rural enterprise development. However, it is also seen that due to the slow pace of employment diversification in rural areas, a lot of issues are created in enterprise development. There could be a number of reasons for the same. Rural enterprises from secondary agriculture expand from simple mushroom cultivation, beekeeping, and value addition to various off-farm activities, biofuels, high-value-added products, fibreboard from agro waste products, dry flower arrangement, processing and many more. This paper is based on the critical analysis of the information and data available from various authentic sources and reports and discusses the status of rural enterprises based on secondary agriculture, viable options available, issues of concern and what could be the possible future strategies to promote the rural enterprises based on secondary agriculture. Rural enterprises are not only business entities at the local level but also change agents at large. To be a sustainable enterprise, it is necessary to have and develop some specific skills besides basic entrepreneurial skills. Various government schemes are also supporting the rural enterprises but capacity building and training cannot be neglected for the same. Challenges are many and but with the right support and strategies, rural enterprises can change the face of the economy and contribute to development.