Traditional agriculture is based on extensive farming systems and methods that are unique to certain locations and are considered the main livelihood strategies for rural communities. Understanding these nuances can enhance rural entrepreneurial ecosystems. Our study provides novel conceptual underpinnings that link traditional agriculture and the rural entrepreneurial ecosystem. We claim that traditional agriculture must be treated as a mandatory element of the rural entrepreneurial ecosystem. This paper aims to clarify the place of traditional agriculture in the classification of entrepreneurial activities, and to conceptualize a systems approach for future research on the topic. Bibliographic analysis is combined with a systematic content analysis to develop a deeper state-of-the-art understanding of the picture. We determine the critical characteristics of traditional agriculture in developed and developing economies and how they influence the rural entrepreneurial ecosystem. Our primary goal is to identify different actors in the development of the rural entrepreneurial ecosystem. Based on the theoretical foundation of the study, we develop a conceptual framework of traditional and innovative practices that lead to prosperity of rural communities.