Rural Entrepreneurship in India
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Rural entrepreneurship involves starting and operating businesses in rural areas that add value to local resources and employ local people. It helps turn "grass into gold" by exploiting business opportunities in rural surroundings. The document defines rural industries according to KVIC and the Government of India, and discusses the need for rural entrepreneurship to reduce poverty and promote regional development. It also outlines opportunities for rural entrepreneurs through government schemes and challenges they may face such as retaining workers, upgrading technology, and managing cash flow. Examples are given of successful rural entrepreneurs.
Rural Entrepreneurship in India
- 1. Presented By:- Gurave Singh Harsh Srivastava Semester III (MBA –M52) MONIRBA, University of Allahabad
- 3. Definition Rural entrepreneurship is that entrepreneurship which ensures value addition to rural resources in rural areas engaging largely rural human resources. Rural entrepreneurship:- “the ability of communities to turn grass into gold” it is a behavioral trait that requires an individual to be able to see and exploit potential business opportunities in his or her surroundings.
- 4. Definition According to KVIC (Khadi and Village Industry Commission), "village industries or Rural industry means any industry located in rural areas, population of which does not exceed 10,000 or such other figure which produces any goods or renders any services with or without use of power and in which the fixed capital investment per head of an artisan or a worker does not exceed a thousand rupees". Industries coming under the purview of KVIC are treated as rural industries.
- 5. Rural Industries under KVIC purview: Khadi Village industry or rural industry KVIC has broadly re-grouped the various village industries for the purpose of implementation of its programmes which includes the following: Mineral-based industry Forest-based industry Agro-based and food-based industry Polymer and chemical-based industries Engineering and non-conventional energy-based industries
- 6. Rural Industries under KVIC purview: Textile industry Service industry Definition of rural industry has been modified.
- 7. Definition According to Government of India, "Any industry located in rural area, village or town with a population of 20,000 and below and an investment of Rs. 3 crores in plant and machinery is classified as a village industry."
- 8. Meaning of Rural Entrepreneurship Rural entrepreneurship means rural industrialization. Industrialization can not originate (or) sustain without entrepreneurship whether rural (or) urban. Rural entrepreneurship is the only solution to rural poverty and backwardness.
- 9. Meaning of Rural Entrepreneurship Rural industrialization means encouraging location of larger and small scale unit away from urban areas or planned shifting of units from urban areas to rural areas. But it is not likely that the existing urban industrial structure can be disturbed. Therefore under rural industrialization concept, the state should encourage industrialization in rural areas on a massive scale. It is immaterial whether it is small, village industries or large scale industries.
- 11. Need for Rural Entrepreneurship Over 70% of Indian population lives in rural areas Rural people are labour intensive Great disparities in income of rural & urban people Regional development Rich in traditional art/ handicrafts Reduce poverty, growth of slums, migration Awaken the youth Increase the literacy rate of rural population
- 12. Approaches of Rural Entrepreneurship An organization committed to support of rural entrepreneurs System-oriented approach Local, regional and community-based State and multi-state National partnerships
- 14. Opportunities for Rural Entrepreneurs Free entry to the market Various schemes for rural development EDI Regional rural development centers Finance facility to the rural entrepreneurs Subsidies given to the rural people by government Bank aids
- 16. Challenges faced by Rural Entrepreneur Entrepreneur magazine and price water house coopers conducted the “entrepreneur challenges survey” these are as follow Retention of key workers Developing new products/services Expansion to other markets Increased productivity Upgrading technology Creating business alliance Better management of regular cash flow
- 17. Challenges faced by Rural Entrepreneur Improving risk management Finding new financing Launching a spinoff Growth of mall culture Poor assistance Power failure Lack of technical know how Capacity utilization Infrastructure sickness
- 18. Examples of some Rural Entrepreneurs