Rural and Women Entrepreneurship

By Group No 4

Group Members
• Ms. • Ms. • Ms. • Ms. Wilma Vanishri Zenely Yashaswitha

Topics
• • • • • • Meaning of RE Need for RE Self Help Groups Problems of RE How to develop RE Meaning of WE

• • • •

Functions of WE Problems of WE Growth and recent trends in WE How to develop women entrepreneurs

Rural Entrepreneurship & Self Help Groups
By Wilma

Introduction
• 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

Meaning
• Rural entrepreneurship “ Entrepreneurship emerging in rural areas” “ Establishing industrial units in the rural areas”

Meaning of rural industry
KVIC GOVERNMENT

Population

<10000

<=20000

Fixed capital investment

Not exceeding Rs. 1000

3 crores in plant & machinery

Need for 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

Self Help Groups
• SHG is a small group of rural poor, who have voluntarily come forward to form a group for improvement of the social and economic status of the members. • The concept underlines the principle of Thrift, Credit and Self Help. • Members of SHG agree to save regularly and contribute to a common fund. • The members agree to use this common fund and such other funds (like grants and loans from banks), which they may receive as a group, to give small loans to needy members as per the decision of the group

Needs of SHG’s
• To mobilize the resources of the individual members for their collective economic development. • To create a habit of savings. • Utilization of local resources. • To mobilize individual skills for group’s interest. • To create awareness about rights

• To assist the members financially at the time of need. • To identify problems, analyzing and finding solutions in the group. • To organize training for skill development. • To build up teamwork. • To develop linkages with institutions of NGOs.

Membership
• From one family, only one person can become a member of SHG • The group normally consists of either only men or only women • Members should be homogenous i.e. should have the same social and financial background • Members should be between the age group of 21-60 years.

Functions of SHG
SAVING AND THRIFT • All SHG members regularly save a small amount • “Savings first-Credit later” should be the motto of every SHG member. • SHG members take a step towards selfdependence when they start small savings.

INTERNAL LENDING • The SHG should use the savings amount for giving loans members. • The purpose, amounts, rate of interest, schedule of repayment etc. are to be decided by the group itself. • Proper accounts to be kept by the SHG.

• • • •

MEETING The group should meet regularly, the meetings should be weekly or at least monthly. Compulsory Attendance Membership register, minutes register etc. are to be kept upto date by the group by making the entries regularly. Commonplace

• Discussing problems - Find solutions • Planning - Plan to get financial supports from Government, Bank and NGO - Development programmes

SKDRDP (Sri Kshethra Dharmasthala Rural Development Project)
• Established by Dr. D. Veerendra Heggade • Launched in the year 1982 • Upliftment of rural poor

Major types of SHG
Pragathibandhu Model (Male groups) • Partner for progress • Labor sharing • each member works for all the members once in a week

• Jnanavikasa women SHGs • promotes women SHGs involving landless women in the villages • Jnana vikasa SHGs • Group enterprises SHGs • Simple SHGs.

Shree Dharmasthala SIRI Gramodyoga Samsthe
• Backbone to SHG

• The products are sold under brand SIRI through out Karnataka.

Apart from all the above, SKDRDP is conducting various social awareness programmes like environment programmes, watershed development programmes, irrigation systems, adoption of alternative sources of energy, agriculture development programmes, religious festivals etc., for the benefit of the rural people. That is SKDRDP has single window solution to the beneficiaries for their daily life.

PROBLEMS OF RURAL ENTREPRENEURSHIP, ROLE OF THE GOVERNMENT IN RURAL ENTREPRENEURSHIP, HOW TO DEVELOP RURAL ENTREPRENEURSHIP

by, VANISHRI. P

Problems of rural entrepreneurship

Lack of technical know-how Lack of training & extension services Management problems Lack of quality control High cost of production due to high input cost Lack of communication & market information Poor quality of raw materials Lack of storage & warehousing facilities Obsolete & primitive technology Lack of promotional strategy

ACCORDING TO THE NINTH PLAN…………………

Inadequate flow of credit Use of obsolete technology, machinery, & equipment Poor quality standards Inadequate infrastructural facilities

How to develop rural ENTREPRENEURSHIP

Raw material is a must for any industry Finance Marketing Development programmes Education Awareness of facilities

ROLE OF THE GOVERNMENT IN RURAL ENTREPRENEURSHIP

By… vanishri.

INTRODUCTION
After the liberalization of Indian economy, with the entry of multinationals, the competition has become intense. As a result urban markets have almost been saturated with the products. Bottom of the pyramid includes parties like Private enterprise, Civil society organizations and Local government, Development and aid agencies, BOP consumers, BOP entrepreneurs. After the liberalization of Indian economy, with the entry of multinationals, the competition has become intense in rural markets.

CHALLENGES
Quality Consciousness  Brand Loyalty  Fashion Consciousness  Urban Orientation

NEED OF GOVERNMENT SUPPORT

 

The government has critical role in creating system and regulatory framework for meaningful engagement by the Bottom of the Pyramid Entrepreneurs in the Bottom of the Pyramid (BOP) markets. Education and healthcare. Public sector banks in India government has provided banking services in remote rural areas also, Rural Credit institutions such as National bank for agriculture and rural development,

 

Commercial banks, State cooperative banks, State cooperative agriculture and rural development banks. SHG. Government has to identify various rural technologies which can be applied and installed with small investment and minimum infrastructure that are available in rural areas.

 

Goals of sustainable economic development and generation of additional employment opportunities by way of promoting entrepreneurship and setting up of small rural industries. Providing training, sourcing of appropriate technology, micro-finance and marketing. This will not only be a complete hand-holding support system, but also a self-sustaining system for poverty alleviation through rural empowerment. Need of technological skills. This will gainfully employ the unemployed unskilled, semi-skilled or skilled youth.

Type of credit for investment
Short term loan: -for 18 months - working capital loan given to industrial establishments - usually without any collateral security

Medium- term loans: - for machinery etc - investments involves lower amount of capital - can repay in 5-8 years

Long term loans: - For high investment purpose - Collateral security is needed - Can repay in 20 years

Commercial banks
 

There are about 100 commercial banks. 51,595 branches of which 40 % were rural branches, semi urban 25 % and urban 19%, and metropolitan branches 16%. 40 % of the total advances must come from rural areas

State cooperative banks
 

 

Offer only short term loan Operate at state level with branches in rural areas The share holders and members are from district central cooperative banks It operates in district level and village level Financed by NABARD

State cooperative agricultural and rural development banks
   

Offer medium term and long term loans There 19 banks and 1219 branches Operating in village and district level There is no banking operations

Regional rural banks

 

There are 196 RRB’s mainly to support agriculture Also called as grameen banks There are 6 metropolitan, 348 urban, 1875 semi urban

CONCLUSION
As Bottom of the Pyramid Entrepreneurs are more close to markets and have greater understanding of consumers, they are often far more innovative in developing products. They have been proved to be better in preserving local culture and often are more sensitive to environmental and ecological considerations.

Growth of women entrepreneurship Recent trends of women entrepreneurship How to Develop women entrepreneurship
By Ms.Yashaswitha Reg.No 0816119

Growth of Women Entrepreneurship

Regarded as the “better half of the society

Some facts
Women
• Literacy rate (55%) • Work participation(28 %)

Men
• Literacy rate (77%) • Work participation(52 %)

• Women account for only 5.2% of the total self employed persons in the country.

• In India, Kerala is a state with highest literacy (including women literacy) • Number of Women’s industrial units in Kerala was 385 in 1981 and 782 in 1984

It was mainly due to • proper education • Financial, marketing and training assistance by state government • Desire for social recognition One more state is Maharashtra

Recent trends in Women Entrepreneurship
• Women are increasingly participating in all spheres of activities • The fact remains that women are excelling in academics, politics, administration, business and industry

• The share of women owned enterprises in America is continuously rising
• 1975-85 was declared as the Decade for Women by United Nations

• The Government of India is assigning increasing importance to the development of women entrepreneurs • The Sixth Five Year Plan is proposed for promoting female employment in women based industries

In the Seventh Five Year Plan a special chapter on Integration of women in development was added • To treat women as specific target groups in all development programmes • To diversify vocational training facilities to suit their needs

• To promote appropriate technology to improve their efficiency and productivity • To provide assistance for marketing their products • To involve women in decision making process

• Research has shown that women owned firms comprise between one-quarter and one-third of all the businesses

How to develop Women Entrepreneurship • Women as specific target groups for all developmental programmes • Better educational facilities and schemes from Government • Adequate training programmes on management skills

• Encouraging women participation in decision making • Vocational training to women community with regard to production process and production management

• Skill development programmes in women’s polytechnics and industrial training institutes • Training on professional competence and leadership skills • Training and counseling on large scale to remove psychological fear

• Counseling through aid of committed NGO’s, Psychologists, Managerial experts and technical personnel to existing and emerging WE. • Continuous monitoring and improvement of training programmes

• Making provision of marketing and sales assistance from government • State Financial Corporation and Financial Institutions should provide trade related finance • The financial institutions should provide more working capital assistance

• Repeated gender sensitation programmes to train financiers to treat women with dignity and respect • Infrastructure in the form of industrial plots and sheds • Industrial estates must provide marketing outlets for the display and sale of products made by women

• Women Entrepreneur’s Guidance Cell • District Industries Centres must assist women in their trade • Training in Entrepreneurial attitudes at college level through well designed courses

Conclusion
• Independence has brought promise of equality of opportunity and laws guaranteeing for their equal rights in education and employment Government sponsored • Unfortunately development activities have benefited only a small section of women. Majority are still unaffected by change & Development

Thank You

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