Small and medium-sized enterprises (SMEs) are integral to the European Union's economy, significantly influencing its socio-economic activities. They represent the vast majority of all enterprises within the EU and are responsible for a substantial share of total employment and value creation. Despite their significant contributions, there are noticeable disparities between SMEs operating in rural and urban areas. Addressing these disparities is essential for fostering balanced economic development across the Union. The increasing emphasis on effective EU policies to support SMEs in rural regions reflects the growing recognition of their importance. Various directives, regulations, acts and laws have been introduced to enhance the competitiveness of these enterprises, aiming to reduce regional inequalities and promote sustainable development. These policies are designed to improve access to finance, resources, and markets for rural SMEs, thereby supporting their growth and ensuring a more equitable distribution of economic benefits. By addressing the specific challenges faced by rural SMEs and enhancing their growth prospects, these policies contribute to strengthen the overall economic landscape. This thesis focuses on the examination of how various EU policies and measures can support and enhance the position of rural SMEs with a particular emphasis on their performance in overcoming the stated challenges faced by these enterprises. To foster the promotion of SMEs in rural areas across the European Union, it is imperative to establish a comprehensive framework within the common policy that effectively supports and strategically aligns with this objective.