This contribution defines what a rural space is, its structures, elements and links. It also sets out the basic definitions of small and medium-sized enterprises (hereinafter referred to as “SMEs”). It also describes the issues that can potentially influence business develop-ment and the impact thereof on the development of communities, in particular within the context of the balanced and sustainable development of rural regions. These issues include public facilities, the development of services and the development of business activities of an agricultural and non-agricultural nature. The Rural Development Programme is ana-lysed from the point of view of the possible financial support for business activities and the additional potential financial support from EU funds. Attention is paid to craftsmen and small farmers who play an irreplaceable role in the development of infrastructure and the maintenance of the social environment in micro regions. Local Action Groups, which should play an irreplaceable role in the start-up of SMEs in line with the traditions and his-tory of a particular region, also represent an important factor in the development of SMEs. Factors that play substantial roles in the establishment and operation of business entities in the country are also highlighted. These factors include the lack of capital, lower purchas-ing power and demand, pressure from chain stores, and insufficient civil and technical in-frastructure. This list can be extended to include the existing taxation system, the poor lev-el of educational and age structure of the inhabitants of rural spaces and their value orien-tation, the exodus of young people to urban agglomerations, gradually vanishing traditions, a lack of respect for local history, etc. This contribution concludes with a package of pro-posals and recommendations with which to support business development in rural regions and lists selected indicators which present the current status of the issue in the Czech Re-public.