Entrepreneurial enterprises have the potential to create new business opportunities and provide alternative income sources for rural populations. Vermicompost production provides diversified income for farmers using livestock manure as well as agricultural residues and household wastes. The economic, social, cultural, and environmental importance of vermicompost technology has made it a unique opportunity for rural households to maintain food security and sustainable livelihood. However, this technology has not yet been diffused across rural population in the Kermanshah Province. Therefore, the purpose of this design was to determine the constraints and challenges of vermicompost technology development in the case of active sites in the Kermanshah Province by using a qualitative study and a well-established theoretical approach. The population for this study comprised of all vermicompost producers in the Kermanshah province (N=52). A purposeful sample of 21 producers with a minimum of two years of experience in vermicompost production participated in the study. Data was collected using deep and semi-structured interviews. Open, axial, and selective coding was used to analyze the data. The results revealed that the following constraints and challenges impede the development of vermicompost technology: low production during the winter, high prices for the customers, lack of technical and marketing skills among the producers, lack of efficient support and monitoring, weak adoption process due to cultural beliefs, and inefficient extension and diffusion by public institutions.