A growing movement has emerged during the past two decades to question the factors that are responsible for the sustainable development of agro based industries that are engaged in promoting practices that enhances the socio economic standard of rural public. Today this movement for sustainable agro base industries development is garnering increasing support and acceptance within mainstream agriculture. Agro based enterprises contribute extremely to the socioeconomic development of Maharashtra. The sector accounts for more than 95% of the industrial units and contributes 45% of the manufacturing output and 40% of the export (Ministry of MSME, 2014). As a result sustainable agriculture address many environmental and social concerns, but it offers innovative and economically viable opportunities for growers, laborers, consumers, policymakers and many others in the entire food system So consequently, small enterprises play a vital role in creating employment and helping in the industrialization of rural and backward areas. In this paper, I tried to examine the enterprise level factors responsible for the sustainable development of agro based industries in Maharashtra, using secondary level data. There are many studies on access to formal credit for agriculture and rural households in India. In spite of being an important sector in the Indian economy, however, factors responsible for the sustainable development for agro based small enterprises has not been studied adequately. This study is an attempt to fill the gap. This research reveals that the growth of agro based small industries in Maharashtra is hampered by several interrelated factors, which include business environmental factors that are beyond the agro based small industries control and internal factors of the agro based small industries.