Network marketing, as an innovative business model, has created a unique opportunity for entrepreneurs to grow and develop their businesses through the establishment and management of distribution networks. This paper examines the opportunities and challenges of entrepreneurship in the context of network marketing using grounded theory. The aim of this paper is to identify the key factors in entrepreneurship opportunities and challenges and to propose a model for improving entrepreneurs' performance. This research is applied in nature and employs a mixed-data approach. A qualitative grounded theory method was used, while a descriptive-analytical approach was applied in the quantitative section. The findings indicate that network marketing entrepreneurship offers significant opportunities for entering the market and addressing unmet needs; however, it faces challenges related to adapting to rapid market changes and ensuring job security. Success depends on the strategic management of resources, market analysis, and the ability to identify and exploit emerging favorable conditions. The results of this study can assist entrepreneurs and policymakers in designing effective strategies to better leverage available opportunities and overcome challenges.