Rural economic development continues to face multidimensional challenges, including low MSME competitiveness, limited market access, and unsustainable business practices. Despite growing global discourse on green entrepreneurship, empirical evidence on its application in rural, natural resource-based MSMEs in developing countries remains scarce. This study aims to analyze the understanding and implementation of green entrepreneurship among MSME actors in Darma District, Kuningan Regency; formulate applicable development strategies; and measure the contribution of green entrepreneurship to rural economic improvement. A convergent mixed-methods design was employed, integrating quantitative data from 30 structured questionnaires and qualitative data from in-depth interviews with 12 key informants. Findings reveal that MSME actors have culturally internalized eco-product and circular production practices rooted in local wisdom, though without formal conceptualization. A Pearson correlation test indicates a statistically significant positive relationship between green entrepreneurship and rural economic. However, the cross-sectional design and reliance on respondents’ self-reported perceptions limit causal interpretation. This study contributes an applicable Pentahelix collaboration-based strategy model as a transformative framework toward an inclusive and sustainable green entrepreneurship ecosystem in rural Indonesia.
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