This paper presents a framework that examines the impact of government policy, entrepreneurial leadership, and management innovation on the success of small and medium-sized enterprises (SMEs) in China's rural communities. Using a Literature analysis methods, the study analyses the effectiveness of government policies in supporting rural SMEs and explores the role of entrepreneurial leadership and management innovation in driving their success. The findings highlight the interplay among these factors and provide practical recommendations for policymakers, SME owners, and researchers to enhance the performance of rural SMEs in China. This framework contributes to the existing literature by offering a comprehensive understanding of the factors influencing rural SMEs success and provides actionable insights for promoting sustainable economic development in rural communities.