Entrepreneurship in Rural Areas of India
ENTREPRENEUR
Entrepreneurs
enterprises.
are people who create and grow
Entrepreneurship
is the process through which entrepreneurs create and grow enterprises. development refers to the infrastructure of public and private policies and practices that foster and support entrepreneurship.
Entrepreneurship
ENTREPRENEURSHIP
The
concept of entrepreneurship has a wide range of meanings. the one extreme an entrepreneur is a person of very high aptitude who pioneers change, possessing characteristics found in only a very small fraction of the population.
On
On
the other extreme of definitions, anyone who wants to work for himself or herself is considered to be an entrepreneur. Merriam-Webster Dictionary presents the definition of an entrepreneur as one who organizes, manages, and assumes the risks of a business or enterprise.
The
Rural entrepreneurship- meaning
Entrepreneurship Establishing
emerging in rural areas
industrial units in the rural
areas
Why Rural entrepreneurship in India?
75%
of the Indian population is living in rural areas. Rural-urban dichotomy reveals wide disparities. Agriculture has a tendency to develop at a lower pace than industry. Industry leads to higher level of output than agriculture.
Objectives of Rural entrepreneurship
To
provide Employment To reduce disparities in income between rural and urban areas. To promote balanced regional development. Promote creativity Economic development in rural areas Environment friendly
Rural entrepreneurship result in
Better
distribution of farm produce resulting in the rural prosperity. Entrepreneurial occupation rural for youth resulting in reduction of disguised employment and alternative occupations for rural youth. Formations of big cooperatives like Amul for optimum utilization of farm produce. Optimum utilization of local resource in entrepreneurial venture by rural youth
Potential constraints &development inputs
Constraints Low self-image confidence Inputs andMotivational inputs, unfreezing and experience sharing by successful local entrepreneurs. othersGroup experiences. building
No faith on includes friends
Constraints No exposure industry/business
Inputs toField visit to factories and big markets on
Who to contact forInformation inputs starting a venture,procedures and what formalities andformalities. procedures are to be followed?
Constraints
Inputs
How to know whether Opportunity the identified business is aidentification viable and soundguidance proposition?
and
How to know whether Market survey, project the identified business is areport preparation viable and sound proposition?
Constraints
Inputs
How does one carryTraining in simple banking out bank operations? procedures like filing up deposit and withdrawal slip etc. How to manage the Basic management business? orientation through simulation exercises.
Constraints
Inputs
How to read and writeFunctional and numerical accounts? literacy. Simple accounting in terms of writing income and expenditure Almost no technical skills Technical training (on-thejob training
Profile of a rural entrepreneur
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 wont 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.
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. The need is to plant other options in the minds of rural youth. 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. should enjoy all the advantages of the location
It
Advantages of rural industrial projects
Tax
holidays and other tax advantages given to rural projects. Abundance of cheap labor. Advantage of local and regional resources in case the unit uses them as a raw material. Prestige community and respect among the local
Live
example for local youth for taking up entrepreneurial project Support and motivation from local people Competitive advantage over the big business due to the proximity to the raw material and labor. 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. Integrated rural development programs, apart from providing the training to potential rural entrepreneur, an industrial area potential survey is undertaken to estimate the kind of industries that could be set up in that particular rural region.
In
Industrial
area potential survey has all the details about the cost of the project, availability of technology, gestation period and return on investment for the projects that could be set up in that region. District Industrial Centre conducts these area potential surveys for usage of potential entrepreneurs.
The
Examples
Food
processing Dehydrated fruits &vegetables Fruit based beverages Mushrooms poultry industry Cottage &handicrafts industry Oil industry Pottery
Success stories-1
The case of dairy development in the State of Gujarat. This model is popularly known as Amul Model. The Gujarat experiment was started more than 30 years ago. Starting from a small complex of eight societies which originally collected only a few hundred litres of milk it has grown into a huge complex collecting nearly seven lakh litres of milk per day from 240,000 members organized into 840 village societies.
Today 90 per cent of the processed butter and cheese market of the organized sector in the country is controlled by Amul. This has helped small farmers. Behind the success of this co-operative venture is that dynamic entrepreneur and leader, Dr. Kurien whose target of opportunity seeking is not financial but social gain, not for himself, not for the enterprise or agency he works for, but for the people he serves.
Success stories-2
The model for frozen peas market developed by MAFCO in Maharashtra is another success story. This venture was started eight years ago. During the first year only 10 tonnes of peas were sold, which went up to 42 tonnes in the second year, 120 tonnes in the third year and 140 tonnes next year and so on. Behind this success story is also that the entrepreneur who could foresee and implement his plans of marketing.
The opportunities in this area are quite big. For example, the market for vegetables in West Asia is approximately Rs. 36 lakhs per day, to be transported by air daily. What is lacking is managerial talent, which could exploit these opportunities by organizing small farmers of this country.
Conclusion
It is quite clear that 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. Whats required is to create a devoted team to take up rural entrepreneurship training as per integrated rural development program
