Submitted To,

Mr. Sourabh Munjal

Asst. Professor
NIMS IM & CS

Submitted By.
R. Niwash
Vijay
Akshay
“Poor of the World can’t be helped by mass production but only by production
by masses”
--Mahatma Gandhi

“India lives in villages and its true spirits lives in rural areas.”
-- Mahatma Gandhi
 Over 70% of Indians live in rural areas

 Over 75 % of rural labour force still earns its livelihood from

agriculture and its allied activities.

 Thus, there is a need to develop RURAL INDUSTRIALISATION.

Meaning & Definition

Rural Entrepreneurship can be defined as

entrepreneurship emerging at village level which can
take place in a variety of fields of Endeavour such as
business, Industry, Agricultural and acts as a potent
factor for economic development.
 According to Khadi and Village Industries Commission (KVIC)

• “Village Industry or a rural industry means.

• Industry located in rural areas

• Population of which doesn’t exceed 10000

• Which produces any goods or renders any services

• With or without the use of power and

• In which the fixed capital investment per head of a worker does not
exceed 1000 rupees”.
Features of Rural Industry.

 Very Low Investment.

 Low Gestation Period.
 Use of Traditional Skills.
 Decentralized production system.
 Products are either mass consumer goods or handicrafts.
 Use of locally available raw material.
 Cater to limited market.
 Products have unique and aesthetic nature.
Types of Rural Industry.

 Farm Entrepreneurs.

 Artisan Entrepreneurs.

 Merchants and Traders.

 Tribal Entrepreneurs.

 Other Entrepreneurs (educated unemployed, scheduled

castes, etc).
Need for Rural Entrepreneurship.

 Over 70% of Indian population lives in rural areas

 Rural industries are labour intensive
 Great disparities in income of rural and urban people
 Regional development
 Rich in traditional art / handicrafts
 Reduce poverty, growth of slums, pollutions in cities
 Awaken the youth
 Increase the literacy rate of rural population
Problems in Growth of Rural Entrepreneurship.

 Lack of Infrastructural Facilities

 Non supportive attitude of financial institutions
 Lack of technical know-how
 Lack of Communication Facilities
 Lack of Ware-Housing Facilities
 Rigidity of rules while providing of loans
 Lack of Quality Management
Rural Entrepreneurs in India 1
2
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 Government Agencies set up to Promote Rural Enterprises

National Agricultural and Rural Development Bank (NABARD): This is the nodal
agency that provides almost three fourth of all the financial assistance allocated by
the government towards uplifting rural enterprise.
The Rural Small Business Development center (RSBDC): Sponsored by the
NABARD this one its kind of a governmental initiative in the world. The center
provides for managerial and technical support to the small and micro enterprises of
the rural sector.

National Small Industries Corporation (NSIC): This central government agency

is responsible for procurement and supply of indigenous as well as imported
equipment and machinery on easy hire purchase terms for rural SMEs, distribute
raw materials and export finished products of small and medium industries of the
rural sector.

Small Industries Bank of India (SIDBI): This is the primary agency that
distributes direct as well indirect finance to all SMEs and coordinates the
functioning of similar bodies under various schemes launched by the government
from time to time.
 Cont…

Rural and Women Entrepreneurship Development program (RWEDP): This

agency aims at creating conducive business environment as well as build
infrastructure and human capital which will aid the long term growth of small
industries in rural areas.

Scheme of Funds for Regeneration of Traditional Industries (SFURTI): This

body has the main objective of making the traditional industries of rural India
commercially viable. Most small, micro and cottage industries are covered in its
agenda.

District Industrial Center (DIC): Every district in the nation now has a DIC which
is responsible for integrated administrative and financial help at the district level
that shall help and facilitate the growth and development of rural SME.
Government Schemes to Enhance Rural Entrepreneurship

•Entrepreneurship Development Institution Scheme

•Rajiv Gandhi Udyami Mitra Yojana (RGUMY)

•Performance and Credit Rating Scheme

•Product Development, Design Intervention and Packaging (PRODIP)

•Khadi Karigar Janashree Bima Yojana for Khadi Artisans

•Marketing Assistance Scheme

Obstacles for Rural Entrepreneurship

•Lack of Knowledge: There is a distinct lack of knowledge of entrepreneurial opportunities

among the rural youth.

• Lack of Finance: Despite sustained efforts from the government there is a clear
hindrance in obtaining capital to start a new venture in the rural areas.

• Lack of Skills: There is an acute shortage of trained manpower in the rural areas to
commence small industries. Adequate facilities for vocational training are yet no
available to the majority of the rural population. Management of accounts, handling of
human resources and many such other facets which are essential for running a
successful enterprise are unheard of in most rural areas.

• Lack of Infrastructure: In many areas the road connectivity is a major impediment in

setting up of rural enterprise. Infrastructure requirements such as cold storage facilities,
rail transport, electricity, etc are yet to be developed to a level which will promote
entrepreneurship in remote localities.
 CONCLUSION:

It is quite clear that rural entrepreneurship cannot be developed without

significant training.

Therefore, instead of just schemes (financial and developmental) as the carrot

for entrepreneurship development an intensive training needs to be provided
to the youth in rural India.

What’s required is to create a devoted team to take up rural entrepreneurship

training as per integrated rural development program.