Women entrepreneurs face a far-reaching range of obstacle and challenges, It is a general belief in many cultures that the role of women is to build and maintain the homely affairs like task of fetching water, cooking and rearing children. Since the turn of the century, the status of women in India has been changing due to growing industrialization, globalization, and social legislation. With the spread of education and awareness, women have shifted from kitchen to higher level of Professional activities. The paper aims to analysis the entrepreneurial activities of rural and urban women entrepreneurs in Karnataka. Rural and urban women’s constitutes the family, which leads to society and nation. Social and economic development of women is necessary for overall economic development of any society. Entrepreneurship is the state of mind which every women has in her but has not been capitalized in India in way in which it should be, due to change in environment, now people are more comfortable to accept leading role of women in our society. Women entrepreneur is gaining importance in India in the wake of globalization and economic liberalization. This study examines the difference between the entrepreneurial activities of rural and urban women entrepreneurs, the study tries to evaluate the role of rural and urban women entrepreneurs in economic development – determine the problem and examine the challenges faced by rural and urban women entrepreneurs, to highlight the factors and major constraints faced by women entrepreneurs, finally to draw conclusions and suggestions.