Post on 18-Jul-2016
description
Rural Entrepreneurship in India
Team A
Introduction
Large part of the country is below poverty line.
Agriculture continues to be the main activity of rural society.
70% of holdings are held by small and marginal farmers resulting in
overcrowding on the agricultural land and diminishing farm value.
The above leads to migration to Urban areas
Agriculture work force is 70% in the total work force of the country.
Out of this 32% of 70% is agriculture labour and 68% is owing farm land.
In the above situation, rural entrepreneurship is the best option.
Entrepreneurship in Rural Areas
• Entrepreneurship could take off the excess of labour from farms that
causes disguised employment. These labour in actual term does not
add any value to GDP.
• The basic Principals should be applied to RD.
Better distribution of farm produce
Occupation to rural youth to reduced disguised employment
Formation of Big Cooperatives like Amul for optimum utilisation
Optimum utilisation of local resource in entrepreneurial ventures
by rural youth.
Family Challenges
Social Challenges
Technological Challenges
Financial Challenges
Policy Challenges
Power failure
Mall Culture
Infrastructure Sickness
• Challenges faced by rural Entrepreneurship in India
Opportunities for Rural Entrepreneurs
•Crashed Schemes for Rural Development
• Food for work program
•National Rural Employment program
•Regional Rural Development Centres
•Bank for Technology
•Entrepreneurship Development Institute of India
•Rural Innovation Funding.
•The above programs are available for future Rural Ents
Problem of Rural Entrepreneurship
Financial Problems
Paucity of Funds
Lack of Infrastructural facilities
Risk Elements
Marketing Problems
Competition
Middlemen
Continue……Management Problems
Lack of Knowledge of ITLegal FormalitiesProcurement of Raw MaterialLack of Technical KnowledgePoor Quality of ProductsHR Related Problems
Low skill level workersNegative Attitude
Barriers to Entrepreneurship
Environmental Barriers to Entrepreneurship
Economic1. Capital2. Labour
3. Raw Material
Non-Economic
Personal
Social
NEED FOR RURAL ENTREPRENEURSHIP
Employment Generation
Reduce disparities in income between rural and urban income
Promote balanced regional development
Protect and promote art and creativity
Economic development in rural areas
HOW TO DEVELOP RURAL ENTREPRENEURSHIP?
Strengthen the raw material base in rural areas.
Funds should be available on time at soft terms and conditions.
Develop entrepreneurial competencies through trainings.
Dissimilate information about the available facilities.
Modern infrastructural facilities.
NGOs in rural areas.
Need For Sowing The Dream In The Minds Of Rural Youth
“Youths in the rural areas have little options”, this is what they are given to believe.
This is the reason that many of them either work at farm or migrate to urban land.
Entrepreneurship could be the best option.
If planted and nurtured in the minds of rural women and youth, it could result in revolutionizing the Indian economy.
It should be emphasized that the projects undertaken by these entrepreneurs should not be constrained by its location in rural area.
Advantages of Rural Industrial Projects1. Tax holidays and other tax advantages given to rural projects.2. Abundance of cheap labor.3. Advantage of local and regional resources in case the unit
uses them as a raw material.4. Prestige and respect among the local community5. Live example for local youth for taking up entrepreneurial
project6. Support and motivation from local people7. Employment generation for local people.
TRAINING FOR RURAL ENTREPRENEURSHIP The training for development of rural entrepreneurship has to be
different from the entrepreneurship development training in urban areas.
This is the reason that government initiated the integrated rural development programs.
The District Industrial Centre conducts these area potential surveys for usage of potential entrepreneurs.
CONCLUSION
Rural entrepreneurship cannot be developed without significant training.
Therefore, instead of just schemes (financial and developmental) as the carrot for entrepreneurship development an intensive training needs to be provided to the youth in rural India. What’s required is to create a devoted team to take up rural entrepreneurship training as per integrated rural development program.
The problem is that most of the rural youth do not think of entrepreneurship as the career option.
Therefore, the rural youth need to be motivated to take up entrepreneurship as a career, with training and sustaining support systems providing all necessary assistance.