Gandhian View of Self—Sufficient Village Economy Gandhi holds the view of the maximization of social welfare and for this, he gives prime imyportanee to the welfare of the individuals by reducing inequalities in income and wealth, Gandhi is in fovour of the self-sufficient village economy where the villages will be the independent cconomic units. India lives in villages. Natwrally, the development of the counuy depends on the development of villages. ‘All the woods and services necessary for the village members should be grown within the village. ‘Agricultural sector alone cannot solve the problem of rural poverty and unemployment. That's why Gandhi gives ‘Stress om the growth of the rural industries like khadi, handiooms, sericulture and handicrafts, He opines that large-scale industries make people hazy and help concentrate wealth inthe hands of « few, Therefore there is so problem with production and marked Lame seale production ereates conflicts between fabour and capital, On the contrary, rural industries are based on family labour and required fess amount of capital, ‘The raw materiatsare also collected from local markets snd the goods thus produced are sold in the tocal markets Gandhi is not in favour of large-scale industries in the sense that these industries are not related to a vast population Aiving in rural areas, “Thus industrialization, according to Gandhi, does not help the growth of the personality: cantrarly it helps only the snateral progress ofa fewMeaning of Rural Entrepreneurship + In simple terms “entrepreneurship” is the act of being an entrepreneur, which can be defined as “one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods”, * Rural entrepreneurship certainly implies entrepreneurship emerging in rural areas, * In other words, establishing the industry in rural areas is referred to as rural entrepreneurship. This means that rural entrepreneurship is synonymous with rural industrialization. * Diversification into non-agricultural uses of available resources such as blacksmithing, catering for tourists, carpentry, spinning etc. as well as diversification into activities other than those solely related to agricultural usage like the use of resources other than land such as water, woodlands, buildings, local features and available skills all fit into rural entrepreneurship.More Areas of Rural Entrepreneurship * The entrepreneurial combinations of these resources are * tourism, * sport and recreation facilities, * professional and technical training, * retailing and wholesaling, * industrial applications (engineering, crafts), * servicing (consultancy), *value added (products from meat, milk, wood, etc.) and the possibility of off-farm work.Role of Rural Entrepreneurship in Economic Development * Formation of capital: + Entrepreneurs as such by placing profitable business propositions do attract investment to ensure private participation in the industrialization process. + General Job creators and jab providers and not the job seekers: * Employment is generated directly by the requirement of the large enterprises and also indirectly by ancilliariation and consequential developmental activities + Balanced regional development: + Entrepreneurs always leok for opportunities in the working environment. + They capitalize on the opportunities of governmental concessions, facilities and subsidies to set up their enterprises in undeveloped areas. * Classic example is setting up of steel plant at Tata Nagar, Reliance Petrochemicals at Jamnagar (Gujarat) which have resulted in the development of Good Township and peripheral regional development.Role of Rural Entrepreneurship in Economie Development + Improvement in the standard of living + Entreprencurial initiatives taken by entrepreneurs through employment generation lead to an increase in income and also purchasing power which is spent on consumption expenditure. + Certainly increased demand for goods and services boosts up indusirial activity. + Large scale production with technological advancements will result in economies of scale and low cost of production + National Self-Reliance + Entrepreneurs are certainly the corner stores of national self-reliance. + They help to manufacture indigenous substitutes for imported products which reduces the dependence on foreign countries. * There is also a wide ility of exporting the goods and services to earn foreign + Hence, the export promotion and import substitution ensure economic independence and the country becomes self-reliant.Role of Rural Entrepreneurship in Economic Development + Increase in per capita income: + Entreprencurs convert the latent and idle resourees like labour, land and eapital into goods and services resulting in an increase in the national income and in tum wealth of a nation, + The increase in national ineome is thus an indication of an inereuse in the net national product and per capita income of the country. + Planned Production: * Eniteprencurs ae considered and best judged as economic agents since they unite all means of production, + All the major factors. of production i together to get the desired product. + This will help to make use, of all the, factors of production with perseverance, proper judgement and knowledge of the world af business *« Equitable distribution of economic power: * The increasing number of entrepreneurs helps in the dispersal of economic power into the land, labour, capital and enterprise are all brought hands of many effective and efficient managers of new enterpr + Hence setting up of a large number of enterprises certainly helps in awakening the evil effects of monopolies2 Major benefits from Rural Entrepreneurship * Provide employment opportu * Rural entrepreneurship as such is mainly labour-intensive and certainly provides a clear solution to the growing problem of unemployment. * Mainly the development of industrial units in rural areas through rural entrepreneurship has a high potential for income creation and employment generation * Balanced regional growth: * Rural entrepreneurship can. pel the concentration of major industrial units in urban areas and also promote regional development in a balanced way * Check on the migration of rural population: + Bural entrepreneurship can fill the lacunae and big gap and also disparities in income for rural and urban people, * Rural entrepreneurship will bring in or develop infrastructural facilities like roads, power, bridges etc, * It can help to check the migration of people from rural to semi-urban and urban areas in search of jobsMajor benefits from Rural Entrepreneurship + Promotion of artistic activities in rural areas: + The age-old rich heritage of rural India is preserved by promoting and protecting handicrafis and arts through rural entrepreneurship. + Check on social evils existing in society: + The growth of rural entrepreneurship can reduce social evils like the growth of slums, poverty, pollution in cities ete, + Awaken the rural youth: * Rural entrepreneurship can awaken the rural youth and also expose them to various avenues to adopt entrepreneurship and promote it as a career. + Improved standard of living: + Rural entrepreneurship will also increase the literacy rate of the rural population, Their education and self-employment will also prosper the community, thus increasing their standard of living,Problems in Rural Entrepreneurship 1. Financial Problem (a) Paucity of funds: + Due to the absence of tangible seeurity and credit in the market most of the rural entrepreneurs fail to get external funds, * Also the procedure to avail of the loan fa its delay often disappoints the rural entrepre * Lack of finance available to rural entrepreneurs is by far one of the biggest problems faced by rural entrepreneurs nowadays especially due to the global recession. (b) Lack of infrastructural facilities: * In spite of efforts made by the government the growth of rural entrepreneurs is not very healthy due to a lack of proper and adequate infrastructural facilities. (©) Risk Element: * Rural Entrepreneurs have very less risk-bearing capacity due 1 a lack of financial resources and external support. ty from the banks is too time-consuming that curs.Problems in Rural Entrepreneurship 2. Marketing Problem () Competition: + Rural sntrepreneurs fice sti and severe competition fom large-sized organizations and urban entrepreneurs. + They incura high cost of production due to high input costs. + Problem of standandization and competition from large scale units are some of the major problems faced by marketers, * They face the problem of fixing the standards and then sticking to them. + For the survival of new ventures competition from large scale units. also creates difficulty. * New ventures have limited financial resources and fenee eamnot afford to spend more on sales promotion and ai having any standard brand name under which they can sell their products, (b) Middlemen: + Middlemen exploit rural entrepreneurs. * Rural entrepreneurs are heavily dependent on middlemen for marketing their products who necessarily pockel i large amount of profit + Poor means of transportation fecilites and storage filtes ae also other marccting problems in rural areneMajor Remedies to Solve Problems in RE * Provide loans at a concessional rate of interest: * Finance should be provided to rural entrepreneurs at concessional rates of interest and also on an easy repayment bas + Creation of finance cells: * Special finance cells must be created by financial institutions and banks to provide easy finance to rural entrepreneurs, * Setting up marketing co-operatives: + Assistance and encouragement should be provided to rural entrepreneurs for setting up marketing co-operatives in rural areas. » Co-operatives certainly can help in getting inputs at quite a reasonable rate and also turn out to be helpful in selling their products at remuneration prices. * Moreover to boost rural entrepreneurs common production and marketing centres should be set up with sophisticated moder infrastructural facilities.Major Remedies to Solve Problems in RE * Supply of raw materials: * On a priority basis, rural entrepreneurs should be ensured of a proper supply of scarce raw materials, + Besides subsidy must also be offered to make the products manufactured by rural entrepreneurs which are reasonable and also competitive in terms of cost. * Offering high-quality training facilities: + As proper training imparts required skills to run an enterprise it enables rural entrepreneurs to undertake their venture successfully. * Economically weaker entrepreneurs of the society are presently offered such training facilities under Programmed FICCI (NGO"s), Prime Minister’s Rozgar Yojana (PMRY), Rotary clubs, Lion clubs and various other voluntary organizationsDefinition * Women entrepreneurship is the process where women organize all the factors of production, undertake risks and provide employment to others. * Women who innovate initiate or adopt business actively are called women entrepreneurs". Women entrepreneurship is based on women’s participation in equity and employment in a business enterprise. + Women entrepreneurship is an economic activity of those women who think of a business enterprise, initiate it, organize and combine the factors of production, operate the enterprise and undertake risks and handle economic uncertainty involved in running a business enterprise. * Woman entrepreneur is a person who is an enterprising individual with an eye for opportunities and an uncanny vision, commercial acumen, tremendous erseverance and above all a person whe is willing to take risks with the unknown Bernie of the adventurous spirit she possessess) ee Functions of a Women Entrepreneur + Exploration of the prospects of starting a new business enterprise. + Undertaking of risks and the handling of economic uncertainties involved in the business. + Introduction of innovations or imitation of innovations. * Coordination, administration and control. * Supervision and leadershipOrganizations Promoting Women Entrepreneurship in India National Resourse Centre for Women (NRCW) ‘Women’s India Trust (WIT) ‘Women Development Corporation (WDC) Development of Women and Children in Urban Area (DWCU A) Association of Women Entrepreneurs of Karnataka (AWAKE) ‘Working Womens Foram (WWE) Association of Waren Entrepreneurs of Small Scale Industries (AWESS!) ‘Women’s Occupational Training Directorate Aid The Weaker Trust (ATWT) SclEmployed Women’s Association (SEWA) ‘Women Entrepreneurship of Maharashtra (WINMA) SelFHelp Group (SHG) ‘The National Resource Centre far Women (NRCW) ‘Women Development Cells (WDC)Obstacles faced by Women Entrepreneurship * General obstacles to women engaging in entrepreneurship * Specific obstacles to start-ups + Specific obstacles to managing a small firm * Specific obstacles to growing firmsREASONS FOR SLOW PROGRESS OF WOMEN ENTREPRENEURS IN INDIA 1, The greatest deterrent to women entrepreneurs is that they are women. A kind of patriarchal-male-dominant social order is the building block to them in their way towards business success. Male members think it is a big risk financing the ventures run by women. 2, Women entrepreneurs have to face stiff competition from the men entrepreneurs who are easily involved in the promotion and development area and carry out easy marketing of their products with both the organized sector and their male counterparts. Such a competition ultimately results in the liquidation of women entrepreneurs. 3, Lack of self-confidence, willpower, strong mental outlook and optimistic attitude amongst women creates fear of committing mistakes while doing their piece of work, The family members and the society are reluctant to stand beside their entrepreneurial growth.REASONS FOR SLOW PROGRESS OF WOMEN ENTREPRENEURS IN INDIA 4. Women in India lead a protected life. They are even less educated, economically not stable nor self-dependent which reduces their ability to bear risks and uncertainties involved in a business unit. 5. The old and outdated social outlook to stop women from entering the field of entrepreneurship is one of the reasons for their failure, They are under social pressure that restrains them to prosper and achieve success in the field of entrepreneurship. 6. Women’s mobility in India is highly limited due to many reasons. The cumbersome exercise involved in starting with an enterprise coupled with officials? humiliating attitude towards women compels them to give up their spirit of surviving in enterprise altogether,REASONS FOR SLOW PROGRESS OF WOMEN ENTREPRENEURS IN INDIA 7. Women's family obligations also bar them from becoming successful entrepreneurs in both developed and developing nations. The financial institutions discourage women entrepreneurs on the belief that they can at any time leave their business and become housewives again. 8. Indian women give more emphasis to family ties and relationships. Married women have to make a fine balance between business and family. Business success also depends on the support the family members extended to women in the business process and management. 9, Women's family and personal obligations are sometimes a great barrier to succeeding in a business career. Only a few women are able to manage both home and business efficiently, devoting enough time to perform all their responsibilities in priority.REASONS FOR SLOW PROGRESS OF WOMEN ENTREPRENEURS IN INDIA 10. The educational level and family background of husbands also influence women’s participation in the field of enterprise. 11. Absence of proper support, cooperation and back-up for women by their own family members and the outside world people force them to drop the idea of excelling in the enterprise field, They are always making many pessimistic feelings to be aroused in their minds and making them feel that family and not a business is a place meant for them. 12. Lack of awareness about financial assistance in the form of incentives, loans, schemes etc. by the institutions in the financial sector. So the sincere efforts taken toward women entrepreneurs may not reach the entrepreneurs in rural and backward areas,