This chapter builds theory on community entrepreneurship through an exploratory study designed to answer the following research question: How do nascent community ventures build legitimacy? The paper shows different strategies for how the community ventures are building legitimacy both by acquiring existing legitimacy in the environment and by creating new legitimacy. Legitimacy was built sequentially by acquiring legitimacy from external sources to build legitimacy internally in the rural community and by acquiring legitimacy within the rural community to build legitimacy towards external stakeholders.