Rural development has become a significant policy challenge in Europe. More employment opportunities have increasingly been concentrated in urban areas, leaving rural regions with ever-continuing down-fall in terms of population size and economic growth. In this context, rural entrepreneurship activity that positively influences rural communities is embedded in broader social or structural policies at the European level. The aim of the article is to investigate societal and economic challenges and their innovative solutions in five European rural regions: Croatia (Slovania), Germany (Münsterland, Saxony-Anhalt), Poland (Małopolska), and Portugal (Alto Minho). This study follows a multi-case method which investigates the diversity of challenges and solutions in selected European rural areas. The comparative analysis reveals that most essential activities aimed at alleviating the development problems of rural areas include education of local communities, improvement of economic and digital infrastructure, activities supporting production and promotion of local products, promotion of cooperation between local communities and producers, and stronger orientation of local policy towards financial support of production enterprises and farms. The conclusions resulting from the study lead to formulating recommendations concerning rural policies in the context of developing entrepreneurship strategies in rural areas.