Topic:-OPPORTUNITIES AND

CHALLENGES FOR
ENTREPRENEURSHIP
DEVELOPMENT IN INDIA.
 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 entrepreneur is one of
the most important inputs in the economic development of a country and of regions within the country.
Rural entrepreneurs are those who carry out entrepreneurial activities by establishing Industrial and
business units in the rural sector of the economy. Establishing industrial and business units in the rural
areas refers to rural entrepreneurship. Rural entrepreneurship can be considered one of the solutions to
reduce poverty, migration, economic disparity, unemployment and develop rural areas and backward
regions.
 Rural entrepreneurship in India .

 India is a country of villages. About three - fourth of India's population are living in rural
areas out of which 75% of the labour force is still earning its livelihood from agriculture
and its allied activities. Land being limited is unable to absorb the labour force in
agriculture. Therefore, there is a need to develop rural industries to solve rural
unemployment and rural migration to cities. Growth and development of rural economy is
an essential pre-condition to development of the nation as a whole. The gap between rural
urban disparities should be lessened .The standard of living of the rural people should be
increased. Entrepreneurship in rural sector provides an answer to the above problems.
Role of rural entrepreneurs in economic
development.
 1. Employment Opportunities
 Entrepreneurs employ labour for managing their business activities and provide
employment opportunities to a large number of people. They remove unemployment
problem .
 3. Mobilization of Local Resources
 Entrepreneurs help to mobilize and utilize local resources like small savings and talents of
relatives and friends, which might otherwise remain idle and unutilized. Thus they help in
effective utilization of resources.
 4. Optimization of Capital
 Entrepreneurs aim to get quick return on investment. They act as a stabilizing force by
providing high output capital ratio as well as high employment capital ratio.
CONTD.

 5. Promotion of Exports
 Entrepreneurs reduce the pressure on the country’s balance of payments by exporting their
goods they earn valuable foreign exchange through exports.
 6. Consumer Demands
 Entrepreneurs produce a wide range of products required by consumers. They meet the
demand of the consumers without creating a shortage for goods.
Opportunities for Rural Entrepreneurs.

 ➢ Crashed Scheme for Rural Development

 ➢ Food for Work Programme
 ➢ National Rural Employment Programme
 ➢ Regional Rural Development Centres
 ➢ Entrepreneurship Development Institute of India
 ➢ Bank of Technology
 ➢ Rural Innovation Funding
 ➢ Social Rural Entrepreneurship.
Challenges For Rural Entrepreneurs.

 ➢ Growth of Mall Culture

 ➢ Poor Assistance
 ➢ Power Failure
 ➢ Lack of Technical Know-how
 ➢ Capacity Utilization
 ➢ Infrastructure Sickness
Government schemes for rural
entrepreneurship in India.
 SME the Ministry of Micro Small and Medium industries initiated various schemes to
promote rural entrepreneurs in India. The schemes are
  Entrepreneurship Development Institution Scheme
  Rajiv Gandhi Udyami Mitra Yojana (RGUMY)
  Performance and Credit Rating Scheme (Implemented through NSIC)
  Product Development, Design Intervention and Packaging (PRODIP)
  Khadi Karigar Janashree Bima Yojana for Khadi Artisans
  Marketing Assistance Scheme
Women Entrepreneurship in India.

 Out of total 940.98 million people in India, in the 1990s, females comprise 437.10 million representing
 46.5 percent of the total population. There are 126.48 million women workforce but as per the 1991
 census, only 1, 85,900 women accounting for only 4.5 per cent of the total self-employed persons in the
 country were recorded. As per a rough estimate the number of SSIs are expected to be2.5 billion having
 9% women entrepreneurs in to it. Considering this trend, women participation in another five years was
 20 % more, raising the number of women entrepreneurs to about 5, 00,000. Combined effect of
 motivational drive, preparation of information material, conducting training, creation of women industrial
 estates, and training of promoters and use of mass media all together is bound to accelerate the process of
 women entrepreneurship development.
Opportunities :

 Free entry into world trade.

 ➢ Improved risk taking ability.
 ➢ Governments of nations withdrawn some restrictions
 ➢ Technology and inventions spread into the world.
 ➢ Encouragement to innovations and inventions.
 ➢ Promotion of healthy completions among nations
 ➢ Consideration increase in government assistance for international trade.
 ➢ Establishment of other national and international institutes to support business among nations
 of the world.
 ➢ Benefits of specialization.
 ➢ Social and cultural development
Challenges:

 ➢ Problems of raising equity capital

 ➢ Difficulty in borrowing fund.
 ➢ Throat-cut competitions endangered existence of small companies.
 ➢ Problems of availing raw-materials.
 ➢ Problems of obsolescence of indigenous technology
 ➢ Increased pollutions Ecological imbalanced.
 ➢ Problems of TRIPS and TRIMS.
 ➢ Exploitation of small and poor countries, etc
Present women entrepreneurs in india.

 Priya paul:-
 Bachelor in Economics which she completed from USA’s Wellesley College. At 51 years
of age, she can be considered as an inspiration for women in India who want to carve a
path of their own. Priyal Paul is the Chairperson of Park Hotels and was awarded
the Padma Shri award by the Indian Government back in the year 2012.
 Contd.

Aditi gupta:-
Aditi Gupta is Co Founder and Managing Partner at Menstrupedia.
Indian society suffers from many taboos and one of them is
menstruation. Several people came forward and spearheaded
the matter so that people can finally talk openly about it. Aditi
Gupta was one of them who came up with Menstrupedia, a
crowd-funded initiative, with help from Tuhin Paul. Her initiative
provides necessary information to women on how they can stay
healthy and practice sanitary habits during their menstruation
cycles.
Government Schemes for women
entrepreneurs in india.
 1. Annapurna Scheme

 This scheme is offered by the State Bank of Mysore for those women entrepreneurs who are setting up food catering industry in order to
sell packed meals, snacks, etc. The amount granted as a loan under this scheme can be used to fulfill the working capital needs of the
business like buying utensils and other kitchen tools and equipment.
 Under this loan, a guarantor is required along with the assets of the business being pledged as collateral security. Further, the maximum
amount of money that is granted is ₹50,000 which has to re-paid in monthly installments for 36 months, however, after the loan is
sanctioned, the lender doesn’t have to pay the EMI for the first month. The interest rate is determined depending upon the market rate.
 2. Stree Shakti Package For Women Entrepreneurs

 This scheme is offered by most of the SBI branches to women who have 50% share in the ownership of a firm or business and have
taken part in the state agencies run Entrepreneurship Development Programmes (EDP). 

 The scheme also offers a discounted rate of interest by 0.50% in case the amount of loan is more than ₹2 lakhs.
Contd.

 4. Dena Shakti Scheme

 This scheme is provided by Dena bank to those women entrepreneurs in the fields of agriculture,
manufacturing, micro-credit, retail stores, or small enterprises; who are in need of financial
assistance. The interest rate is also decreased by 0.25% along with the maximum loan amount
being ₹20 lakhs for retail trade; education and housing whereas ₹50,000 under the microcredit.
 5. Udyogini Scheme

 This scheme is offered by Punjab and Sind Bank so as to provide women entrepreneurs involved
in Agriculture, retail and small business enterprises to get loans for business at flexible terms and
concessional interest rates. The maximum amount of loan under this scheme for women between
the age bracket of 18-45 years is ₹1 lakhs but your family income is also taken into consideration
and is set at ₹45,000 per annum for SC/ST women.
Conclusion :-

 Rural entrepreneurs’ role is necessary to eradicate the poverty in the backward rural areas.
 In rural areas majority of the people not ready to invest in the business and also not ready
to fix that entrepreneur is also their career. So this condition should be changed by the
government and focus more on rural entrepreneurs for to be a developed nation among the
countries.
 The entrepreneurs provide a magical touch to an organization, whether in public or private
or joint
 sector, in achieving speed, flexibility, innovativeness, and a strong sense of self-
determination. They bring
 a new vision to the forefront of economic growth.