What are the major problems faced

by rural population in developing

rural entrepreneurship?
Government has recognized the need to develop rural
entrepreneurship since independence. Various five-year plans have
emphasized the need to develop rural entrepreneurship because of
umpteen benefits given away by the rural industrialization. Creation
of employment, dispersal of income equitably, utilization of
resources etc. is possible if our rural industries develop. Inspite of
efforts made by government, the growth of rural entrepreneurs is
not very healthy. We can attribute its reasons to the following
factors:

(i) Lack of infrastructural facilities;

(ii) Non-supportive attitude of financial institutions which works

more on papers. The procedure to avail the loan facility is so time
consuming that its delay often disappoints the entrepreneurs.

(iii) Lack of technical know-how;

(iv) Lack of communication facilities and market information.

Information technology has penetrated into rural areas through
Internet but rural areas have hardly availed its benefits.

(v) Lack of warehousing facilities. The dilapilated condition of

industrial estates proves it and location of these houses hasnt been
proper.

(vi) Incentives offered are many. Banks do provide concessional

loans but their rules are very rigid. Their reluctance to grant loans
for the working capital adds to the problems of the rural
entrepreneurs.

(vii) Lack of Quality management.

According to Ninth Plan, the major problems faced in developing
entrepreneurship in rural areas are :

(i) Inadequate flow of credit.

(ii) Use of obsolete technology, machinery and equipment.

(iii) Poor quality standards.

(iv) Inadequate infrastructural facilities.

Thus we see that rural industrialization is important for the

countrys prosperity since India lives in villages. Development of
village industries in rural areas is the solution to alleviate rural
poverty. Such industries are an integral part of the village economy
and help in the upliftment of rural masses through diversification of
their occupational base.