Purpose- Nowadays, the importance of rural business development and its key role in advancement of countries is undeniable. Development of rural business is considered as the main strategies for economic, socio-cultural development of deprived areas and it is used as a solution to poverty alleviation, poverty reduction, social and economic justice. Thus, the present study is aimed to provide a model for rural business development in Ilam province.Design/Methodology/Approach- To this end, a mixed-method approach (both quantitative and qualitative) was applied. The population of this research in the qualitative part includes experts and in quantitative section are the owners of rural businesses in Ilam province. To select the sample in the qualitative part of the research, snowball method was carried out and 12 people were selected. Also, in quantitative phase 120 owners of rural businesses in Ilam province were selected. Data collection tool in qualitative section was semi-structured interviews and in quantitative part was standardized questionnaire. In order to analyze data in the qualitative section thematic analysis method and in quantitative section structural equation modeling (SEM) was used.Findings- The results showed that 57 indicators in the form of 15 sub-themes and 6 main themes including: marketing capability, competitive intelligence, government policy, entrepreneurial empowerment, strategic communication and social acceptance were identified as factors affecting the development of rural businesses in Ilam province.Originality/value- In present research, marketing capability, competitive intelligence, government policy, entrepreneurial empowerment, strategic communication and social acceptance have been identified as the factors affecting the development of rural businesses. The results of this research can help the authorities to have a deeper insight into the factors affecting the development of rural businesses as well as create strategic planning in order to successfully perform the development of rural businesses.
