HUMAN RESOURCES FOR DEVELOPING RURAL ENTREPRENEURS

Human Resources are amongst the most essential resources that are required for
fostering rural entrepreneurship.

Another set of individual or facilitators also plays a key role in promoting and
supporting the entrepreneurial development in rural areas.

Entrepreneurship is primarily an individual trait. Entrepreneurial spirit includes a

set of behavioural aspects including achievement motivation, attitudes, skills, analytical
capacity, judgment and decision making ability.
These aspects can be nurtured and cultivated by motivational and management
training. A conscious and deliberate effort ,is required to develop this key personality traits
in an entrepreneur.

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Training for Entrepreneurship Development
Development of entrepreneurs through systematic training namely
Entrepreneurship Development Programmes (EDPs) has emerged as an important strategy
for development of human resources for promoting small business enterprises in rural
areas.

Several developments have taken place in conceptualizing the problem, trying out
various strategies of developing entrepreneurs, developing support systems and specialists
for designing and implementing such strategies. A large number of organizations from
public and private sectors have engaged their efforts at designing new models of
entrepreneurial motivation training modules and adopted them for training potential
entrepreneurs.

The conceptual framework of the development of rural entrepreneurship should be

made the starting point so that the various strategies used in developing entrepreneurs can
be properly understood and planned.
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 In order that the potential entrepreneurs succeed in their entrepreneurial ventures,
they need to be thoroughly prepared, rather trained, to imbibe and nurture the key traits like
taking initiative, perseverance, self-confidence, ability to identify and grab opportunities,
information seeking ability, planning, problem solving, persuasive and influencing
competencies, risk taking willingness, hard working, quality consciousness, sense of
efficacy, openness to feedback, learning from experience, time orientation, concern for
society, competition and collaboration, dignity of labour, respect for work, need for
independence and need for outstanding performance, etc.

Normally the above traits or qualities are not found in the majority of rural people
since they are not oriented to an entrepreneurial culture. The environment, in which they
live, and the lack of opportunities for entrepreneurial encounters, etc. restrict them. It is,
therefore, necessary to create an atmosphere for promoting potential entrepreneurs.

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Rural Entrepreneurship Development Program
Rural Entrepreneurship Development Programme (REDP) is a program supported
by NABARD for the creation of sustainable employment and income opportunities for the
benefit of educated unemployed rural youth. In this article, we look at the objectives,
features, purpose, details, eligibility, grants provided by Rural Entrepreneurship
Development Programme (REDP).

Objective of Rural Entrepreneurship Development Programme

The Rural Entrepreneurship Development Programme aims to develop
entrepreneurial and activity-oriented skills among the unemployed rural youths willing to
create small or micro-enterprises by assisting agencies and NGOs involved in the
conducting of Entrepreneurship Development Programs. Hence, the Rural
Entrepreneurship Development Programme indirectly supports entrepreneurs through
various agencies and NGOs.

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Rural Entrepreneurship Development Programs
Rural Entrepreneurship Development Programme can be divided into three phases,
viz., pre-training, training and post-training phase. The achievement of the programme
depends on the stringent adherence to these phases. Some of the highlights of the training
program conducted under the Rural Entrepreneurship Development Programme are:

1. REDPs are conducted for a certain skill and unemployed rural youth are trained in these
programs.
2. The trainee has to be in the age limit of 18 and 50 years.
3. Training period could differ from a minimum period of 4 weeks to a maximum period of
eight weeks.
4. Each program would support about 25-30 participants.
5. Programs are held with the support of NGOs and the NGOs must be a registered and
with a minimum experience of 3 years.
6. Programs could be residential or non-residential.
7. The NGO must have essential infrastructure, faculty support of their own or invite guest
faculty.
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Pre-Training Phase
In the pre-training phase, a detailed survey is done for identifying prospective business
activities or market. Then publicity, awareness and motivational campaign are conducted
for Entrepreneurship development in coordination with Banks or Government
Departments or other NGOs.

Training Phase
Entrepreneurship Development Programs are typically 6-8 weeks long. Training module
comprises the following:
1. Achievement motivation
2. Opportunity identification and guidance
3. Knowledge related to supporting agencies and schemes
4. Preparation of project reports/profiles
5. Management of resources (men, material, money)
6. Marketing aspects
7. Book-keeping/Accounting
The training program would include case-studies on prospective
activities, field visits, practical work, visit to thriving units, etc.,
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Post-Training
Post training, the program endeavors to facilitate in the hand-holding or syndication
of bank loan or creation of the MSME unit for a period of a minimum of 2 years.

Grant provided under the Program

The grant provided under the Rural Entrepreneurship Development Programme
covers for preliminary expenses, rent for hall, training material, boarding charges,
stationery, honorarium to faculty or guest faculty and the other expenses. Incentive is
obtainable for handholding after the training and settlement of trainees.

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Types of Rural Entrepreneurship Development Programme

Swarnajayanti Gram Swarozgar Yojana

The program is aimed at creating micro enterprises in rural areas based on the
capability of the poor and prospective potential of each area. Since 1999 the
Swarnajayanti Gram Swarozgar Yojana (SGSY) has been considered as the main
program for the self-employment of the rural poor with a focused objective to enable the
assisted BPL families i.e. Swarojgaries above the Poverty Line by supplying them
income-generating assets by means of provision of bank credit and Government subsidy.

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National Program for Rural Industrialization (NPRI)

The National Program for Rural Industrialization envisages creating Rural

Industrial Estates and Artisan Clusters to present essential infrastructure and support
services to the village industries.
The Finance Minister in his Budget Speech for 1999-2000 has announced the
National Program for Rural Industrialization (NPRI) to encourage clusters of units in
rural areas aiming to institute 100 rural clusters in each year. Ministry of Agro & Rural
Industries has been selected to organize the program with different Ministries/agencies
engaged in similar program.
Small Industries Development Bank of India (SIDBI), National Bank for
Agriculture and Rural Development (NABARD), Khadi and Village Industries
Commission (KVIC) and associated states are the chief implementing agencies of the
program.

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Micro and Small Enterprises – Cluster Development Program (MSE – CDP)

With reference to the Ministry of Micro, Small and Medium Enterprises

(MSME), Government of India (GoI) has practiced the cluster development approach as
a main strategy for enhancing the productivity and competitiveness and capacity building
of Micro and Small Enterprises (MSEs) and their collectives in the country.
Clustering of units too enables providers of different services to them, including
banks and credit agencies, to enable their services more cost-effectively, thus reducing
costs and enabling the accessibility of services for these enterprises.

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HUMAN RESOURCES FOR RUNNING RURAL ENTERPRISES

The human resources required to run the enterprises, form the major work-force
constituting skilled labour and unskilled labour. Every enterprise requires trained
manpower. This manpower includes staff for running the enterprise: the workers, foremen,
supervisors, technicians, mechanics, managers, etc. When work with a collaborative and
cooperative spirit, then the desired results of enterprise can be achieved.

In addition, special efforts need to be taken to groom such workers in the enterprise
who are a) down-to-earth, b) innovative, and c) those who have a questioning attitude, with
an outlook of improving the performance levels of the production in the enterprise.
Effective management also involves not giving into any attempt to nepotism. So the
entrepreneur has to provide a leadership that nurtures efficiency and competency.

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BASIC INFRASTRUCTURE FOR RURAL ENTREPRENEURSHIP

The basic infrastructure includes transport, utilities and communication including

railways, roads, ports, power, and telecommunication services. Additional infrastructure
facilities that are also required are drinking water, housing, healthcare, among others.

Transport, Power and Communication

A well knit and coordinated system of transport plays an important role in the
sustained economic growth of a country. Transport system forms the major basic
infrastructure required for harnessing the potential of rural entrepreneurship. Among the
transport systems' several modes, rail and road are important while ports also play a major
role in some cases.

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Railways:
Railways provide the principal mode of transportation of freight and passengers.
Railways with its vast network spread all over the country play a vital role in the economic,
industrial and social development of the country. The revenue freight traffic is increasing
substantially continuously and it is the backbone of industrial growth and caters to
improving the performance and profitability of small industries.

Roads:
Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched to provide all weather
basic access to about 1.72 lakh habitation of populations of 500 or more. PMGSY roads are
constructed to high technical standards and backed by 5 year maintenance contracts. The
objective of rural connectivity is to provide basic access and the continuity of linkage up to
the market / service centre in a cost effective manner.

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 In a recent study it has been found that the Indian government's expenditure on road
construction contributed more to poverty reduction than did the other investments.
Roads helped farmers transport their goods to markets, gave them better access to higher-
wage employment opportunities in the rural non-farm sector, and increased consumers'
access to food markets. Investment in infrastructure in general (roads, electricity, and
communications) also reduced poverty by enhancing agricultural productivity growth, thus
increasing farm incomes and expanding the non-agricultural sector.

Power:
Generation and distribution of electricity from various sources has a catalytic role
in development of rural enterprises. Accelerated Rural Electrification Programme (AREP)
envisages at providing supply of electricity for production oriented activities like rural
industries, minor irrigation and electrification of villages.

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Telecommunication:
The telecommunications services form the core area of infrastructure development
today with the thrust on e-governance up to district, tehsil and Gram Panchayat levels.
The rural-urban divide in telecommunication services and internet infrastructure is getting
reduced with the active role of National Informatics Center (NIC).

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OTHER INFRASTRUCTURE FOR SUPPORTING RURAL ENTREPRENEURSHIP

Other infrastructure facilities that are also required in rural areas are: schooling,
rural health care infrastructure, rural housing, and provision of drinking water.

Schooling, Technical and Vocational Education

Provision of elementary education for people enables them to acquire literacy,
knowledge and skills for widening their opportunities for employment and income
generation. Several programmes and initiatives like Sarva Shiksha Abhiyan, District
Primary Education Programme, and National Programme of Nutritional Support to Primary
Education - popularly known as Mid-Day Meal Scheme, Operation Blackboard which aim
at making primary education more accessible and effective.

At the secondary level several industrial training institutes, polytechnics, other

basic training institutes and vocational training institutes are set up to provide technical
education for youth who aspire to become technicians or technical work-force especially
electrician, plumber, carpenter, mechanics, etc.

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Rural Health Care Infrastructure
Public health is a major area of concern today as its proper handling helps in
improving human resources in rural areas. National Rural Health Mission launched
recently aims at providing integrated health care health centre services to rural people and
addresses the key concerns of reducing infant mortality and morbidity, malnutrition and
improving the health care of rural women and youth.
Provision of adequate health care facilities in rural area would help develop
physically and mentally sound human resources and better labour force for running rural
enterprises well.

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Rural Housing
Adequate housing with minimum basic amenities is also an essential rural
infrastructure for the labour force working in rural industries and enterprises.
To meet the shortage of housing in rural areas, the Indira Awaas Yojana (IAY) was
launched to provide assistance to rural people below poverty line in construction of
dwelling units and upgradation of existing unserviceable kutcha houses under the
supervision of District Rural Development Agency and Gram Panchayats.

Drinking Water
Drinking water facilities to rural habitation are provided under state sector
programme. Centrally-sponsored Accelerated Rural Water Supply Programme provides for
assistance and delegation of powers to the states to plan, sanction and implement the rural
water supply schemes. Adequate and safe water supply would provides for better
infrastructure for augmenting rural enterprise development.

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END…..

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