This article examines 100 women and their enterprises in moshav‐type co‐operative rural settlements in the rural‐urban fringe of Tel‐Aviv metropolitan area, Israel, and analyses the catalysts and obstacles to development and expansion of such enterprises. Most of the businesses are small, in the personal and service sector, and based on experience in past employment. The majority are located in homes or unused farming structures and constitute the major source of household income. Major catalysts of development include the search for alternatives to waning farming income, self‐fulfilment, and professional development; main obstacles are shortage of capital and lack of self‐confidence in the ability to manage a business. The location is advantageous for fulfilling family obligations and saving costs, but problematic because of distance from central markets and intense local competition. The businesses play a crucial role in the survival strategy of rural households and help improve the quality of life and wellbeing in the region.