Published by

Janaspandana Trust Shikaripura Shivamoga District

Karnataka state,India
ISBN:978-81-932734-8-7
 Rural Entrepreneurship:A Agent for Rural

Development
Abstracts
Majarity of the population in India lives in villages. The village is the foundation of the
nation. village enterprises assume an essential part in the national economy, especially in
the provincial advancement. rural enterprise is not just essential as a method for
producing business openings in the country zones with low capital cost and raising the
genuine wage of the general population, additionally its commitment to the advancement
of horticulture and urban ventures. Provincial business enterprise can be viewed as one
of the answers for lessen destitution, relocation, monetary divergence, unemployment
and create country territories and in reverse areas.

Keywords: Problems, Rural Entrepreneurs, Rural Industries,Rural Development.

I. Introduction
The majority of the population in India lives in villages. The economic development of
our country largely depends on the progress of rural areas and the standard of living of
rural masses. Village or rural industries play an important role in the national economy,
particularly in the rural development. Rural entrepreneurship is based on stimulating
local entrepreneurial talent and the subsequent growth of indigenous enterprises. It
recognizes opportunity in the rural areas and accelerates a unique blend of resources
either inside or outside of agriculture. Rural entrepreneurship brings an economic value
to the rural sector by creating new methods of production, new markets, new products
and generate employment opportunities thereby ensuring continuous rural development
Rural Entrepreneurship And Development Of Villages
Rural entrepreneurship implies entrepreneurship rising in rural areas. In different words
establishing industries in rural areas refers to rural entrepreneurship. this implies rural
entrepreneurship is substitutable with
rural manufacture. several samples of prosperous rural entrepreneurship will already be
found in literature.Diversification into non-agricultural uses of obtainable resources
reminiscent of business for tourists, blacksmithing, carpentry, spinning, etc. moreover as
diversification into activities on the other hand those exclusively relating to agricultural
usage, let's say, the employment of resources on the other hand land reminiscent of water,
woodlands, buildings, out there skills and local options, all match into rural
entrepreneurship. The entrepreneurial mixtures of those resources square measure, for
example: business, sport and recreation facilities, skilled and technical coaching,
marketing and wholesaling, industrial applications (engineering, crafts), coupling
(consultancy), worth side (products from meat, milk,wood, etc.) and therefore the chance
of off-farm work. Equally entrepreneurial, square measure new uses of land that alter a
reduction within the intensity of agricultural production, let's say, organic production.
[A] higher distribution of farm manufacture leading to the agricultural prosperity.
[C] Formations of massive cooperatives like Amul for optimum utilization of farm
manufa
[D] Entrepreneurial occupation rural for youth leading to reduction of disguised
employment and different occupations for rural youth. Problems sweet-faced By Rural
Entrepreneurs And Remedies to unravel It cture.
[E] Optimum utilization of native resource in entrepreneurial venture by rural youth.
Indian agriculture is characterised by low productivity, exposure for vagaries of nature
like drought, flood, different natural disasters and weaknesses like couple between
agricultural and money crops, inadequate infrastructure to supply for worth addition,
wide inequality in public-private partnership in agricultural development.Land being
restricted is unable to soak up the complete labour force throughout the year resulting in
massive scale unemployment and underemployment.Rural folks, in search of jobs,
usually migrate to urban centres making unwanted slums and board unhygienic
conditions of living. A turnaround is feasible within the on top of trend if employment
opportunities square measure created out there in rural areas along side basis amenities
of life. the $64000 answer to Indias economic downside isn't production but production
by plenty as was steered by Mahatma Gandhi. Rural manufacture through the event of
rural businessperson looks to be the solution to poverty, state and back-wardens of Indian
economy.Government of Asian country in its ordered 5 year plans has been assignment
increasing importance and support for the promotion and development of rural
entrepreneurship.Rural entrepreneurship may be a method that introduces new things
within the economy. Rural entrepreneurship is that the commit to produce worth tho'
recognition of business chance, the management of risk-taking applicable to the chance,
and thru the communicative and management skills to mobilize human, monetary and
material resources necessary to bring a project to fruition in rural areas. The role of
entrepreneurship was recognized in Asian country a lot of sooner than different countries.
when Independence, with the arrival of planning and even when the completion of initial
arrange, a brand new enthusiasm was on the scene. Young men instead of going for
higher studies in law or literature turned to Science and Technology. the quantity of
applications for industrial licenses to set-up new comes shot-up and there was keen
competition among intending entrepreneurs. Most of the overall population board rural
areas. Balanced development is that the want of hour and it's doable only rural areas can
flourish. Growth of rural entrepreneurship could cause reduction in economic condition,
growth of slums, pollution in cities and cognitive content of inhabitants. It helps in up
normal of living and skill rate of rural folks. Rural industries embrace traditional sector
and fashionable sector. Former consists of khaddar and village industries, handloom,
sericulture, handicraft and fibre whereas the latter embrace power looms and little scale
industries.

Rural Entrepreneurship in India

Who ought to be capable of constructing use of the govt. policies and schemes for the
betterment of rural people? Some individuals United Nations agency happen to be native
leaders and NGOs and United Nations agency square measure committed to the
explanation for the agricultural folks are catalytic agents for development. tho' their
efforts have to be compelled to be recognized nevertheless far more must be done to
reverse the direction of movement of individuals, i.e. to draw in folks within the rural
areas. It means that not solely stopping the outflow of rural folks but conjointly attracting
them back from the cities and cities wherever they'd migrated. this can be attainable once
teens take into account rural areas as places of opportunities. Despite all the inadequacies
in rural areas one ought to assess their strengths and hinge on them to form rural areas
places of opportunities. this can be abundant to try and do with the manner one sees the
truth of the agricultural areas. The way a survivor or job seeker would see things would
definitely show a discrepancy from those that would really like to try and do one thing
worthy and square measure able to bear a troublesome path to realize their goals. it's not
that there's a lack of individuals with such a outlook. But with time they modify their
minds and be a part of the bandwagon of job seekers because of numerous compilations.
sanctionative them to suppose positively, creatively and Entrepreneurship purposefully is
most of the event of rural areas. teens with such perspective Associate in Nursingd with
the assistance of justly channelized efforts would start an era of rural
entrepreneurship.The basic principles of bourgeois that applied the agricultural
development are: Optimum utilization of native resources in Associate in Nursing
entrepreneurial venture by rural population - higher distributions of the farm turn out
ends up in the agricultural prosperity.Entrepreneurial occupation rural population to scale
back discrimination and providing different occupations as against the rural migration.To
activate such system to produce basic '6 m'- work force, money , material, machinery,
management and market to the rural population.
Rural Entrepreneurship in ever-changing Environment:
The ever-changing international atmosphere raises questions about the flexibility of
ancient, small-scale businesses in rural areas to share the potential advantages offered by
the ever-changing atmosphere. The speedy (though declining) growth, plus even quicker
urbanization, creates increasing demands. In India, urban populations generally grow
regarding doubly as quick because the overall total, and by 2020 they'll exceed the
dimensions of rural populations. Such a significant demographic trend challenges the
capacities of some ancient small-scale businesses to trot out the increasing
demands.economic hardships created by the govt. officers and their workers in each
demolition of slums isn't fascinating from a sane government. Moreover, once a slum is
razed folks don't move out of urban localities. They solely relocate to a close-by place as
a result of they're entrenched within the economy of the city or town. tho' governments
have tried out numerous schemes for generating incomes within the rural areas adore
government initiatives haven't stopped folks from moving out of villages to cities. this
can be as a result of such government initiatives aren't on their own capable of
sanctionative folks to earn adequately and ameliorate their conditions. There must be
some committed enterprising individual or a gaggle of individuals.

II.Objectives of the study

The following ar the objectives of the current study:
1.To know the various styles of rural entrepreneurship.
2.To know the importance of rural entrepreneurship.
3.To study the issues of rural entrepreneurship.
4.To analyse the performance of rural industries.

III. Methodology
The present study is based on secondary information. the information were collected
from books, journals, web site and annual reports.Rural enterpriser is one in every of the
foremost necessary inputs within the economic development of a countryand of
regions inside the country. Rural entrepreneurs are those that carry out entrepreneurial
activities by establishing Industrial and business units within the rural sector of the
economy. Establishing industrial and business units within the rural areas refers to rural
entrepreneurship. Rural entrepreneurship are often thought-about one in every of the
solutions to scale back financial condition, migration, economic inequality, state and
develop rural areas and backward regions.

IV.Types of Rural entrepreneurship

Rural trade or village trade is broadly speaking classified into the following categories:
A.Agro based Enterprises
This class includes direct sale or process of agro merchandise like jiggery, pickles, sugar
industries, oil process from oil seeds, dairy farm merchandise, fruit crush, spices etc.
B.Handicrafts
These include creating of wood or bamboo handicrafts that ar native thereto space,
ancient ornamental merchandise, toys and every one alternative types of handicrafts
typical to the region.

C.Engineering and services

These include agricultural equipments, tractors and pump sets, repairs etc.

D.Mineral based trade

These include stone crushing, cement industries, wall coating powders etc.
E.Textile trade
These include weaving, colouring, spinning and bleaching.

F.Forest based Industries

These industries include wood merchandise, fiber trade, beedi creating, honey creating,
bamboo merchandise, etc.

V.Performance of Village or Rural industries

Rural population moves towards urban for varied reasons like financial gain generation,
looking smart job, utilize varied facilities etc. Rural entrepreneurship can herald or
develop infrastructural facilities like roads, power, bridges etc. It reduces the gaps and
disparities in financial gain between rural and concrete areas. Rural entrepreneurship will
avoid the migration of individuals from rural to urban areas in search of jobs.
The performance of the agricultural industries in respect of production, sales and
employment is shown within the following table:

Table 1: Performance of village or rural industries

Year Production Sales (Rs. In Cumulative Employment

(Rs. In Crores) Crores) (in lakh persons)

1997-98 3895.21 4319.38 42.49
2001-02 7140.52 8383.49 54.16
2003-04 9263.98 11000.00 62.57
2006-07 13527.19 18888.21 80.08
2007-08 16134.32 20819.09 90.11
2008-09 16753.62 21948.59 94.41
2009-10 17508.00 23254.53 98.72
2010-11 19198.85 24875.73 98.72
2011-12 21135.06 25829.26 103.65
2012-13 17448.31 20320.73 111.04
source: Compiled from various issues of MSME annual reports
The above table reveals the performance of village or rural industries in respect of
production, sales and employment in India from 1997-98 to 2012-13. The village
industry production was worth ` 3895.21 crore in 1997-98 which increased to ` 21135.06
crore in 2011-12. It declined to ` 17448.31 crore in 2012-13. The decline in the
production of village industry can be attributed to decrease in the funds released as a part
of budgetary support. Similar trends are also observed in sales of village industries, as it
depends on production, market and tastes of the consumers. The total cumulative
employment in the village industry increased from 42.49 lakh persons in 1997-98 to
111.04 lakh persons in 2012-13.

VI.Significance of Rural entrepreneurship

The importance of rural entrepreneurship is in brief highlighted as follows:

A.Balanced regional development

Rural entrepreneurship controls the concentration of business in urban areas and thereby
promotes balanced regional development within the economy.
B.Check on social evils
The growth of rural entrepreneurship reduces the social evils like financial condition,
social tensions, region pollution, the expansion of slums and mental object of inhabitants
etc.
C.Promotion of creative activities
Rural industries additionally facilitate defend and promote the art and handicrafts, i.e. the
antique wealthy heritage of the country.

D.Awaken the agricultural youth

Rural entrepreneurship encourages young and promising entrepreneurs to develop and
perform entrepreneurial activities within the rural sector.

E. correct use of native resources

Rural industries facilitate within the most use of native resources like raw materials and
labour for productive functions and so increase productivity. economical and effective
use of restricted resources by the entrepreneurs ends up in overall economic development
of a vicinity.

F. Earnings of exchange
Rural entrepreneurship plays vital role in increasing the exchange earnings of the country
through export of their manufacture.

G.Improves commonplace of living

Rural entrepreneurship also will increase the attainment rate of rural individuals. Their
education and self-employment can prosper the community, so up their commonplace of
living.

H.Improvement in per capita financial gain

Rural entrepreneurship generates additional output, employment and wealth by
exploiting new opportunities, thereby serving to to boost the per capita financial gain of
rural individuals.

I.Produces goods of consumers selection

Rural industries as well as house and village industries manufacture merchandise of
individual consumers style and preferences, jewellery, sarees, creative product square
measure made to cater to the requirements of various shopper in keeping with their style,
preferences and style.

J.Provides employment opportunities

Rural entrepreneurship is labour intensive and creates large-scale employment
opportunities for the agricultural individuals. Rural entrepreneurship provides a
transparent answer to the growing downside of large-scale state and underemployment of
rural Asian nation.

K.Lack of market data thanks to poor communication facility

The absence of effective communication and access to the proper data makes it tough for
rural entrepreneurs to know market trends and policies followed by the govt on industrial
enterprise.
 VII.Issues of Rural entrepreneurship
Developing entrepreneurship particularly rural entrepreneurship isn't very easy. it's
affected by many issues. a number of the issues sweet-faced by rural entrepreneurs
square measure as follows:

A.Lack of information
There is a definite lack of adequate information of entrepreneurial opportunities among
the agricultural youth. The educated and trained youths largely leave for urban
destinations in search of jobs.

B.Lack of finance
Finance is that the lifeblood of the business. Most of the agricultural entrepreneurs
square measure in the main troubled to boost the finance for his or her businesses. Non
convenience of adequate collateral security usually mars the probabilities of rural youth
in getting adequate funds in time to set up their own venture. thanks to this, the
entrepreneurs are forced to require credit from village cash lenders United Nations
agency charge extortionate rates of interest.

C.Lack of technical power

On account of the faulty education system rural youth lack social control, skilled,
technical power that is AN impediment in developing the spirit of enterprise,
consequently not many of us come out to ascertain self-employment units.
D. inferiority product
Nowadays, the shoppers square measure additional sensitive to the standard of the
product. But, rural entrepreneurs cannot manufacture quality product thanks to poor
quality of raw materials and lack of standardized tools and equipments.

E.Non convenience of skillful labours

In rural areas, skillful labours can't be found simply by the entrepreneurs. extremely
skillful personnel choose to add massive cities thanks to high wage than rural areas.

F.Fear to speculate within the business

Rural entrepreneurs have low risk bearing ability thanks to lack of monetary resources
and external support. So, they prohibit to speculate in their businesses in rural areas.

G.Competition
Rural entrepreneurs face robust competition from urban entrepreneurs and bigger scale
organizations. they can't contend with the urban entrepreneurs thanks to lack of
standardization and stigmatization of the product.

H.Middleman
Rural entrepreneurs in the main depend on middlemen for selling their product. however
they betrayed by giving low costs to their merchandise.

I.Lack of infrastructural facilities

Rural square measureas are characterised by poor infrastructural facilities viz, roads,
water, market, electricity, street lighting, road transport, storage and communication etc.
that hamper the sleek movement of assorted industrial activities.

J.Adverse social, cultural and industrial atmosphere

Social evils, caste systems, fatalism, spiritual superstitions, notably within the country
facet, don't permit development of brave spirit. Lack of talent and experience in
labourers, their tendency to migrate to cities and consumers habit to shop for
merchandise made by massive corporations produce several issues for brand new
entrepreneurs.

VIII. Suggestions
Most of the agricultural individuals in Asian nation lack risk bearing ability. Reluctant to
involve oneself in business, inclination towards wage employment, lack of power square
measure few reasons that have restricted the expansion of self-employment in country.
a. In the lightweight of the higher than issues, the subsequent suggestions are often
place forth to develop the agricultural entrepreneurs:
b. Separate monetary help for rural entrepreneurs ought to be provided by the govt.
c. Modernisation of their technology is incredibly a lot of essential. enough finance
should run to modernise their out-of-date technology, tools and implements so as to
alter them to contend with the massive scale industries.
d. Rural entrepreneurs should be given adequate infrastructural facilities.
e. Industrial sheds are often created within the rural areas to accommodate rural
entrepreneurs and might be given all facilities during this shed.
f. Rural entrepreneurs have to be compelled to improve the standard of their product so
as to contend with sRural entrepreneurs ought to be provided adequate and timely
monetary help from all the monetary establishments and banks.
g. Special coaching programmes for rural entrepreneurs ought to be organized by the
govt to boost their information and talent.
h. The rural educated youth ought to come out within the field of entrepreneurship.
i. imilar alternative units and additionally with the massive scale industries.
J. Industrial co-operatives are often found out on constant lines of Primary agricultural
co-operatives in rural areas so as to produce selling support for the product of rural
entrepreneurs, to produce raw materials to the agricultural industries and to free them
from the exploitation of middlemen.

IX.Conclusion
Rural industries play a crucial role within the financial set-up, notably within the rural
economy. Rural entrepreneurship is very important not solely as a method of generating
employment opportunities within the rural areas with low opportunity cost and raising
the $64000 financial gain of the individuals, however additionally its contribution to the
event of agriculture and concrete industries. while not rural industry, it'd not be
straightforward to unravel the matter of state in rural areas. Rural entrepreneurship are
often thought-about one among the solutions to scale back financial condition, migration,
economic inequality, state and develop rural areas and backward regions.
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