Abstract

 The Rural population constitutes a major segment in India. The livelihood strategies of
this vast segment depend primarily on agriculture and allied activities. Growth in this
agriculture sector has shown a declining trend during the last one decade. The declining
trend is noted in the growth rate of employment and gross domestic production. In the
context of this reality, it becomes a primary necessity for institutions and agencies
involved in rural development in general and poverty alleviation in particular to undergo
a paradigm shift. The bur geoning problem of population and underemployment can be
tackled through institutionalizing the process and concept of rural entrepreneurship.
NGOs definitely have an increasing role to play in this process. The experience of the
Entrepreneurship Development Institute of India (EDI) in implementing Rural
Entrepreneurship Development Programmes (REDPs) using training as a strategy has
yielded very positive results. This process was carried forward in collaboration with
NGOs. This implementation strategy has proved effective. Using the case study
methodology, an attempt has been made to understand the success and failure factors
towards institutionalizing this REDP approach.
 In the era of globalization, entrepreneurship development in the rural context is a
challenge. More people are living in rural areas of India. People in rural areas suffer with
unemployment, poor infrastructure facilities which may be solved with the development
of the rural entrepreneurs. “Rural entrepreneurship can be defined as entrepreneurship
emerging at village level which can take place in a variety of fields of endeavor such as
business, industry, agriculture and acts as a potent factor for economic development”.
 But, these rural entrepreneurs are suffering with various problems like fear of risk, lack of
finance, illiteracy, and competition from the urban entrepreneurs .Rural entrepreneurs
increase the standard of living and purchasing power of the people by offering
employment opportunity to the people in villages.
 Key Words: Rural entrepreneurs, Issues and Challenges economics Rural Development,
Objective& Scope , Suggestions

1.0 INTRODUCTION
Entrepreneurship has a long history and has been defined in different ways. The term
“entrepreneur” originated in France as early as the 17th and 18th centuries. As back as 19th
century the word entrepreneurship was described as the venturesome individuals who
stimulated economic progress by finding new and better ways of doing things (Say Baptiste
Jean a French Economist). In the 20th century, the concept of entrepreneurship was further
refined and described entrepreneurs as innovators who drive change in the economy by
serving new markets or creating new ways of doing things. The function of entrepreneurs is
to reform or revolutionize the pattern of production in many ways: by exploiting an invention
or, more generally, an untried technological possibility for producing a new commodity or
producing an old one in a new way, by opening up a new source of supply of materials or a
new outlet for products, by reorganizing an industry and so on (Joseph Schumpeter, Professor
at Harvard Business School)

 Rural entrepreneurship is defined in broader sense “as the enthusiastic willingness of a

villager to organize his or her economics activity, whatever it may be (a business, a
job, an investment etc.) with the help of appropriate technology and practices
conceived for a sustainable living.”
 Rural entrepreneurship has an important role to play in the development of Indian
economy.
 Taking into account the fact that nearly 70 percent of the India population calls rural India
it’s home, adequate funding and support can provide a thriving entrepreneur atmosphere
in these communities. So far as it is known that rural India as compared to the mainstream
population is economically poor, younger, more isolated geographically, isolated from the
main markets, culturally imbedded in tradition, less dynamic economically and
experiencing depopulation.  Rural entrepreneurs can change the mindset of urban people
that rural people cannot do anything and they can change the life status of rural people
too.

 Rural entrepreneurship generally can be defined as creation of a new organization that

introduces a new product, serves or creates a new market, or utilizes a new technology in
a rural environment. 563 Million People engaged in Agriculture, 52% of total land is
cultivable as against 11% in the world, All 15 major climates of the world, snow bound
Himalayas to hot humid southern peninsula; Thar Desert to heavy rain areas all exist in
India. In the livestock sector, India has 16% of cattle, 57% of buffalo, 17% of goats and
5% of sheep population of the world. In terms of the real value added, the Indian
agriculture sector ranks third, after China and the United States. The share of agriculture
in the total value added to the economy, at around 25 per cent, is still quite high. This
implies that agriculture is likely to remain a priority, both for policy makers as well as
businesses. Primary sector of our economy is Agriculture. It has backward and forward
linkages with secondary & tertiary sector. Secondary sector involved in production,
manufacturing, fabrication, construction etc. to facilitate operations of other two sectors.
Tertiary sector provides infrastructural support to rest of the two sectors
1. At Farm Level: Production of agriculture produces by making best use of the technology,
resources and demand in the market.
2. As Service Providers: These include the input procurement and distribution, hiring of
implements and equipment like tractors, seed drills, sprayers, harvesters, threshers, dryers and
technical services such as installation of irrigation facilities, weed control, plant protection,
harvesting, threshing, transportation, storage, etc. 3. Input Producers: There are many
potential business opportunities viz. bio-fertilizers, bio-pesticides, vermi-compost, soil
amendments, plants of different species of fruits, vegetables, ornamentals, root media for
raising plants in pots, agricultural tools, irrigation accessories, production of cattle feed
concentrate, mineral mixture and complete feed. There are good opportunities to support
sericulture, fishery and poultry.

2.0 OBJECTIVES OF STUDY

 After over six decades of independence and industrialization in our country, still large
part of population remains under poverty line. Agriculture continues to be the backbone
of rural society. As per this study, seventy percent of holdings are held by small and
marginal farmers resulting in overcrowding on the agricultural land and diminishing farm
produce. This also results in migration of farm worker in large numbers to the urban
areas. In both the cases the population remains under poverty line. Agricultural work
force has a share of seventy per cent in the total work force of the country.

 Rural entrepreneurship development has to tackle, the problems by providing other

occupation option to the rural youths. “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 option in the minds of rural youth.
Entrepreneurship could be the best option.

 The entrepreneurs with their ability to scan, analyze and identify opportunities in the
environment transform them into business proposition through creation of economic
entities. They by channelizing the resources from less productive to move productive use
crate wealth. Through efficient and effective utilization of national resources, they act as
catalysts for economic development and agents of social transformation and change.
According to Joseph Schumpeter, the rate of economic progress of a nation depends upon
its rate of innovation which is turn depends on rate of increase in the entrepreneurial
talent in the population.

 According to Meir and Baldwin, development does not occur spontaneously as a natural
consequence when economic conditions in some sense are right. A catalyst is needed
which results in entrepreneurial activity to a considerable extent. The diversity of
activities that characterizes rich countries can be attributed to the supply of entrepreneurs.
 3.0 REVIEW OF LITERATURE

Rural entrepreneurship General facts

 Entrepreneurs play a crucial role in the rural development of the region. Saxena (2012)
implies that the rural development is linked to entrepreneurship more than ever before.
Rural development promoters see entrepreneurship as a development strategy.

 Rural entrepreneurship means the same as a rural industrialization. Rural entrepreneurship

can be regarded as an attempt to create the management for risk-taking appropriate to
opportunity, as well as to mobilize human, material and financial resources in order to
fulfill the project in rural areas (Saxena, 2012).

 Rural areas are disadvantaged in some ways compared to the urban areas; there is a huge
difference in the economic performance between these regions like small kagadadi
village v/s Surat smart urban city.

 Prospects and Challenges of Rural Entrepreneurship Development in NER-A Study

Dr. Dilip Ch. Das Volume-I, Issue-III November 2014 179 entrepreneurship can
already be found in literature. Diversification into non-agricultural uses of available
resources such as catering for tourists, blacksmithing, carpentry, spinning, etc. as well as
diversification into activities opportunities, roles and prospect challenges of rural … 359
other than those solely related to agricultural usage, for example, the use of resources
other than land such as water, woodlands, buildings, available skills and local features, all
fit into rural entrepreneurship. A turnaround is possible in the above trend if employment
opportunities are made available in rural areas along with basis amenities of life. The real
solution to India’s economic problem is not mass production but production by masses as
was suggested by Mahatma Gandhi.

 Piore and Sable (1984), in their book, "The Second Industrial Divide", gave an
approach structure to little business improvement which expresses that development of
economy will be more effective when it happens inside a political setting, where nearby
groups effectively bolster little scale endeavors.

 Petrin (1994) in another article inferred that development of rural areas is presently
connected to entrepreneurship to a greater extent. It goes about as a vehicle to enhance the
personal satisfaction for people, families and groups keeping in mind the end goal to
manage a sound economy and environment.

 Vaessen and Keeble (1995) uncovered that the outer environment in the more remote
rustic zones presents challenges for SMEs, which they have to adjust to in if they are to
develop and survive.

 Gavian et al. (2002), in their study, have proposed that SMEs are customarily considered
as well poised to react to the expanded demand by creating occupations.
 Sherief, (2005) endeavored to comprehend the determinants of rural entrepreneurship and
the environment helpful for its improvement. The study presumed that for accelerating
economic development in rural regions, it is most essential to advance entrepreneurship.

 Mehta, (2011), in his study showed that numerous Indian organizations including MNC
began creating business systems to tap the undiscovered rural business sector in India.
The study will be supportive for the different organizations to figure arrangements and
approaches so as to help the rural entrepreneurship in India. This may make the Indian
rural business sector as a basic power in the worldwide economy. In horticulture, utilizing
new entrepreneurial exercises is moderately simple since agriculturists for the most part
have numerous valuable assets available to them, for example, land, structures, apparatus,
work, systems, and so on. Access to great assets alone is, be that as it may, not a
certification for achievement. Everything relies on upon the ranchers' entrepreneurial
capacities to get to, see the capability of, and utilize the assets accessible (Alsos et al.
2011).

 Sharma, Swati, Vyas and Divya (2011) demonstrated that different social, financial,
political and environmental issues in provincial regions in creating nations like India
make challenges in livelihood, diminishing rural generation and expanding nourishment
lack. This has come about a colossal effect on the residential generation, livelihood and so
forth. To a specific degree, these issues can be understood by creating entrepreneurship in
rural India.

4.0 RESEARCH METHODOLOGY

Sources of Information:
Primary Data: The primary data were collected from the personal visit in different rural
areas villages.
Secondary Data: The secondary data were collected from publishing by search engine,
newspapers, books, magazines, journals, websites and other relevant information.
Sample Size & Research Design: The data is obtained from the personal rural areas survey

5.0 OBJECTIVES OF STUDY

 After over six decades of independence and industrialization in our country, still large
part of population remains under poverty line. Agriculture continues to be the backbone
of rural society. As per this study, seventy percent of holdings are held by small and
marginal farmers resulting in overcrowding on the agricultural land and diminishing farm
produce. This also results in migration of farm worker in large numbers to the urban
areas. In both the cases the population remains under poverty line. Agricultural work
force has a share of seventy per cent in the total work force of the country.
 Rural entrepreneurship development has to tackle, the problems by providing other
occupation option to the rural youths. “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 option in the minds of rural youth.
Entrepreneurship could be the best option.
 The entrepreneurs with their ability to scan, analyze and identify opportunities in the
environment transform them into business proposition through creation of economic
entities. They by channelizing the resources from less productive to move productive use
crate wealth. Through efficient and effective utilization of national resources, they act as
catalysts for economic development and agents of social transformation and change.
According to Joseph Schumpeter, the rate of economic progress of a nation depends upon
its rate of innovation which is turn depends on rate of increase in the entrepreneurial
talent in the population.
 According to Meir and Baldwin, development does not occur spontaneously as a natural
consequence when economic conditions in some sense are right. A catalyst is needed
which results in entrepreneurial activity to a considerable extent. The diversity of
activities that characterizes rich countries can be attributed to the supply of entrepreneurs.

Opportunities for Rural Entrepreneurs:

 Encouragement to advancements and developments.

 Free entrance into world trade
 Improvement in risk taking ability
 Technology and innovations spread into the world.
 Governments of countries pulled back a few confinements
 Consideration increment in government help for universal exchange.
 Promotion of solid completions among countries
 Cultural and social advancement
 Food for Work Program
 National Rural Employment Program
 Crashed Scheme for Rural Development
 Regional Rural Development Centers
 Entrepreneurship Development Institute of India
 Bank of Technology
 Social Rural Entrepreneurship

FINDINGS /SUGGESTIONS
 The government of India or any developing country should create autonomous bodies
like Election Commission for rural business people funding agencies. These
autonomous funding agencies should have strong infrastructure among the ruling
government in central or state with the proper public relations.
 State & Central Government must initiate more awareness and special training
programs like MSME throughout the calendar.
 Rural entrepreneur’s always engaged with the latest trends and technologies via
 television, mobile, or internet to upgrades their needs and progress with local as well
as global requirements.
 Govt. should provide separate financial fund of rural entrepreneur.
 The concern department should provide special infrastructure facilities whatever they
need.
 Govt. should arrange special training programmes for rural entrepreneurship.
 Govt. should felicitate top ranker rural’s entrepreneur.
 Rural entrepreneur should more competitive and efficient in the local & international
market.
 We should invite successful rural entrepreneurs from other states of country.

 This paper is an attempt to understand the problems and challenges for rural
entrepreneurship in the context of rural development in India and possible suggestions
to overcome the problems.

7.0 CONCLUSION
 The rural entrepreneur is a key aspect for any under developing to developed countries as
per the latest economic figure. Rural entrepreneurship is one the best tool used by any
NGO’s and GO’s for the conversion of developing to developed level. Non-urban grew
up in socio-economic is the solutions for recovering poverty of any countries. Rural
entrepreneur is a key figure in economic progress of India. Rural entrepreneurship is the
way of converting developing country into developed nation. Rural entrepreneurship is
the answer to removal of rural poverty in India. Therefore, there should be more stress on
integrated rural development programs. 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. There should be efficient regulated market
and government should also lend its helping hand in this context. Grading and
standardization should be promoted and promotional activities should be enhanced.
 Hence any individual or citizens of India must buy/sell any Indian products. Therefore,
there should be less stress on the integration of rural as well as the development of the
economic status of each stakeholder.
 The most hectic issues are the participation of youth and curriculum in an institution
should mould the students/faculty to speak about the importance of running a business
rather than an employee of any organization. On the Government side, more quality
support like schema definition, standardization, Quality Assurance (QA), financial
agencies, NGOs, Media, and awards will make more contribution of youth in the business
environment.

8.0 References:
 Ockhaus, R.H. and P.S. Horwitz. (1986). The psychology of the entrepreneur (in D.L.
Sexton and R.W.Smilor (eds.), The art and science of entrepreneurship. Ballinger
publishing company, Cambridge, pp. 25-48.
 Jayadatta S, Major Challenges and Problems of Rural Entrepreneurship in India,
IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN:
2319-7668. Volume 19, Issue 9. Ver. II. (September. 2017), PP 35-44
 Sandeep Saxena, “Problems Faced by Rural Entrepreneurs and Remedies to Solve It”,
ISOR Journal of Business and Management, 3(1), pp. 23-29, 2012.
 IJRAR1944813 International Journal of Research and Analytical Reviews (IJRAR)
www.ijrar.org
 https://journals.sagepub.com/
 Ministry of micro, small and medium enterprises, government of India.

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