Abstract: Rural entrepreneurship is an important starting point for filling rural “resource pool” , enriching industrial form and realizing industrial revitalization. However, in the special rural environment, the lack of entrepreneurial resources and social barriers make rural entrepreneurship face many uncertainties. Based on the case study of grounded theory, this paper deeply analyzed the formation mechanism of entrepreneurial performance in rural areas under the context of resource scarcity, as well as the moderating effects of formal and informal institutional environments. The results showed that, through the integration of capital, information and experience, rural entrepreneurs adjusted and optimized the strategic choices of product positioning, production mode and key technologies, which ultimately affected entrepreneurial performance. In this process, the formal institutional environment characterized by policy support and the informal institutional environment characterized by values played a regulatory role through the “increase and decrease” mechanism, that is, to enhance corporate reputation, reduce resource search and input costs, and help enterprises control costs and increase efficiency.