This study aims to identify the effectiveness of the mentor-mentee program under the Kedah State Development Board (KEDA). In particular, this study is to examine the impact of the program on the economy for rural entrepreneurs and to identify the factors that influence the effectiveness of the program. This research method is qualitative with a case study design through in-depth interviews. The respondents of this study consist of rural residents who have participated in the programs. Overall, the results of the study found that the implementation of the programs has had a very positive impact on the socioeconomics of the rural population. This can be shown by the increase in income, reduction in the cost of living and the improvement in the standard of living achieved by rural residents. The results of the study also show that rural residents have practiced good values such as helping each other, trusting and tolerant of each other. This study has also identified issues and problems that arise during the implementation of the program. Accordingly, the suggestions for improvement presented should be considered in order to increase the effectiveness of the program to an optimal level in planning the implementation of the program in the future. Indirectly, will improve the overall performance of KEDA. This is because KEDA needs a comprehensive model to be used as a guide when planning a new human capital program in the future.