Prepared ByPrabhuprasad Bad Chirag Patel Vipul Patel Dilesh Tare 09 38 39 58

“Entrepreneurs” are people who create and grow enterprises.

“Entrepreneurship” is the process through which entrepreneurs create and grow enterprises.

Definition:Rural entrepreneurship is that entrepreneurship which ensures value addition to rural resources in rural areas engaging largely rural human resources.

India is the most populous country in the world. About 70% of it’s population resides in Rural area About 2/3rds of India’s rural population engaged in agriculture, accounts for less than 1/4th of the National Income.

Individual Entrepreneurship  Group Entrepreneurship  Cluster Formation  Cooperatives

• • • • • • • • •

Food Processing Dehydrated Fruits and Vegetables Fruit Based Beverages Mushrooms Chikki Industry Poultry Industry Cottage and Handicrafts Industry Oil Industry Pottery

Repair of Phone/Mobile Phone, Electronic and Electrical goods  Rural Tourism  Entertainment  Modern Industries

PROJECT IDENTIFICATION
 Choice of starting new business in –
 Manufacturing Unit  Trading  Service Enterprise  Other Sectors

INFORMATION ACCESSIBILITY
◦ ◦ ◦ ◦ Information on Business Ideas Ideas Capital Organization Support System

MARKET ASSESSMENT
◦ ◦ ◦ ◦ ◦ Analysis of Market Demand The Competition Trading Practices Primary & Secondary Data Market Research

FEASIBILITY REPORT REGISTRATION PROCEDURE LEGAL ASPECTS OF BUSINESS
◦ ◦ ◦ ◦ The Factories Act, 1948 Industrial Disputes Act, 1947 Social legislations Wage legislations

Training for Entrepreneurship Development
◦ Entrepreneurship Development Programmes (EDPs) ◦ Entrepreneurial motivation ◦ Entrepreneurship Development Centers being run in each State, and national level institute

Training and Development of Rural Entrepreneurs
 Training of rural Youth for Self Employment (TRYSEM)
 Launched by the Government of India in 1979 as a facilitating component of Integrated Rural Development Programme (IPDP).

Prime Minister's Rozgar Yojana (PMRY)
Launched on 2nd October 1993 to assist educated unemployed youth to set up self-employment ventures.

Swaranjayanti Gram Swarozgar Yojana (SGSY)
Launched by Government of India in 1999 with a focus on providing effective self employment through self help group approach and activity cluster approach for rural poor families below poverty line.

Infrastructure plays a significant role in providing and enabling encouraging atmosphere for the growth and spread of rural enterprises and small industries. Basic infrastructure includes – ◦ Railways ◦ Roads ◦ Power ◦ Telecommunication services. ◦ Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

PRIMARY MANAGEMENT FUNCTIONS
◦ ◦ ◦ ◦ ◦ ◦ ◦ Planning Operational Planning Decision-making Product Choice Technology Choice Organizing Production/Services Staffing

PRODUCTION MANAGEMENT FUNCTIONS
◦ Production Management
 Production management is the process of arranging and allocating work, men, money, and material resources in such a structured manner to achieve the twin goals of an enterprise - reducing costs and increasing profits.
 Working Capital Operating Cycle

PRODUCTION MANAGEMENT FUNCTIONS

Marketing Management

 Marketing involves assessment of the needs of customers, a good pricing policy, promotional and advertising approach and distribution system, and finally good profit.

FINANCIAL MANAGEMENT FUNCTIONS
◦ ◦ ◦ ◦ ◦ Costing Pricing Breakeven Analysis Cash and Fund flows Management Account & Book-keeping

Credit and lending agencies operating in rural areas –  Institutional Agencies - Operate in regulated the
environment and observe fixed norms and guidelines enumerated by the government.
 Banking Institutions Development Banks Non-banking financial companies

Non-Institutional Agencies formal manner.

– Operate in non-

Fund Based Facilities
◦ Cash Credit/Working Capital Loan ◦ Bridge Finance (short term finance) ◦ Term Loan (for appearing Fixed Assets)

Non-fund Based Facilities Banks issue Letter of Credit or Letter of Guarantee

SUSTENANCE MANAGEMENT FUNCTIONS
◦ ◦ ◦ ◦ Co-ordination Controlling Delegating Supervising

Lack in strategic planning  Conflicts in Partnership Venture  Practice of organizing resources for production/services is taken on granted  Do not prepare long-term plans  Do not learn from mistakes  Delayed cash flows

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