POTENTIAL FOR ENTREPRENEURSHIP

IN RURAL INDIA

By Vaishnav Kumar

INTRODUCTION

After over 5 decades of Independence and Industrialization in our country, still large part of population remains under poverty line.

Agriculture continues to be the back bone of rural society.

Agricultural work force has a share of 70 per cent in the total work force of the country.

One also needs to keep in mind that there is a continuous growth of population.

This has led to over crowing on agricultural land, diminishing farm produce and migration of farm worker in large numbers to the urban areas.

Entrepreneurship could take off the excess of labor from the farms that causes disguised employment.

Rural entrepreneurship can simply be defined as entrepreneurship emerging in the rural areas.

In other words, establishing industrial units in the rural areas refers to rural entrepreneurship.

Cont.

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

He should not be an individualist. He should have a group orientation. He should consider the rural society not as his market but as his own large family.

He should practice a management style where the concern for people is the highest.

He should have a strong commitment for rural development.

He won’t be interested in usual perks and entertainment allowance. Social gain will be his perk and the smiles on the faces of impoverished rural population his only allowance.

PROFILE OF A RURAL ENTREPRENEUR

PROBLEMS OF RURAL ENTREPRENEURSHIP

Financial constraints

Lack of technical know-how

Lack of communication and market information

Poor quality raw material and other inputs

Lack of storage and warehousing facilities

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.

1. 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 community

5. Live example for local youth for taking up entrepreneurial project

6. Support and motivation from local people

7. Employment generation for local people.

Advantages of Rural Industrial Projects

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.