Sustainable rural development helps to improve the quality of rural environment communities, and relies on promoting multifunctional agriculture and driving rural business and entrepreneurship, structuring hybrid organisations that combine and reconcile market and social aspects as sources and visions leading to creating economic, social and public value within rural areas and communities. The aim of this study is to elucidate that driving sustainable rural development supports hybrid organisations that are driving value creation processes within rural areas and communities. Rural resources are emerging as a social and economic asset and value to be preserved for future generations. Rural resources shape the strategy and organisation of rural enterprises and communities. Rural development and multi-functionality in agriculture contribute to reconciling and combining business orientation, territorial identity, social value creation and benefits for communities, addressing strategic and organisational choices of rural entrepreneurs. Rural development policies contribute to driving and shaping the sustainability of European farm sector and rural areas, by retaining long-term strategic objectives with regards to the competitiveness of agriculture, ensuring sustainable management of natural resources and climate action and the balanced territorial development of rural areas. European institutions promote rural development in order to benefit rural enterprises and communities, exerting influence on the organisational and strategic choices of enterprises towards sustainability by following a hybrid pathway to value creation and organisation.