This study aimed to assess the prospects of rural micro, small and medium enterprises (MSMEs) in Punjab, Pakistan. A multi-stage mixed method approach was opted to conduct the study in three districts of central Punjab, Pakistan. In stage I, seminars / workshops were conducted in six villages. Innovative ideas were discussed with the farmers. In stage-II, data were collected from 300 respondents of 12 villages. Data were analyzed using both the quantitative and qualitative methods. More than 75% of the farmers were willing to start a small scale agriculture based business. Young farmers were more inclined (over 70%) for rural entrepreneurship but, less than 50% of them had any sort of business experience and financial power. Only 20% of them knew that loan facilities are available for small scale businesses. Regarding the training facilities to start and manage small scale business, 40% perceived that such facilities were available. The youth were uncertain whether the dependence on five major crops will sustain the future family requirements or not. Similarly, they were uncertain about the functioning of the output markets in order to support the productivity of rural enterprises, implying that the markets are not well established. From the results, it was concluded that the prospects of rural MSME culture in Punjab, Pakistan are bright and it can be achieved by improving the training facilities, easy credit availability and motivating rural youth.