The purpose of study was design a business development model for the sport horse breeding industry. This research was mixed exploratory, which operationalized based on ground theory strategy. The research community included expert people in the field of horse riding and the country's horse industry, who identified challenges in this field through semi-structured interviews. The statistical sample in qualitative part was  22 experts with snowball sampling and in quantitative stage, there were 384 people from owners, trainers, horse breeders and agricultural Jihad experts. The questionnaire was taken from the qualitative part. To extract the codes in the qualitative section, MaxQda software used. SPSS-23 software used to analyze quantitative information. The results of the research indicated that the lack of creation of new advantages for horse owners, the lack of appropriate protective laws for horse breeders, the absence of mandatory laws for the use of Iranian horses, the legal problems of quarantine in the export and import of horses. Failure to complete the full pedigree of horses, failure to use domestic horses in order to preserve and improve their genetic resources were among the most important challenges of this research. Therefore, it is suggested to policy makers of the horse industry to address the challenges of this sector by supporting the breeders of Turkmen horses. Also, by revising the existing laws and policies regarding import and export licenses and the need to pay attention to medical issues, provide a platform for the development of jobs related to the horse industry.