Rural Entrepreneurship

Why?

Lop sided development Labor migration Social tensions Rise of slums Can the cities expand for ever?

The need

Reverse the flow Attract people back to rural areas Create opportunities which are long term Rising youth population A tool for rural development

Definition

Enterprise located in a rural area, using mainly local resources both raw material as well as labor If a large company opens up a unit in a rural area, what sort of multiplier effect we can see?

Constraints

Low self image and confidence No faith on others No exposure to industry / business Lack of knowledge on the formalities required to start a venture Checking business for viability Bank transactions Read and write accounts Managing

What can be done?

Motivational inputs, meeting with successful entrepreneurs Group building exercises Field visits to factories / markets Opportunity identification and guidance Market survey & project preparation guidance Training for bank transactions and accounting Technical training

Types of rural entrepreneurship

Individual Group Cluster

SHG VO CBO NGO

Cooperatives

Time for a exercise

Students at right

Students at left

You are an rural entrepreneur who is thinking of supplying urban markets Think on products

You are an rural entrepreneur who thinks of replicating a urban service Think on services

Some probable avenues : products

Food processing Dehydrated fruits and vegetables Fruit based beverages Honey making, mushroom cultivation Aqua culture Traditional sweets Poultry Cottage and handicrafts

Some probable avenues : services

Mobile phones economy

repairs Selling prepaid cards

Tourism Rural BPOs

Who are there to help?

For project identification

Entrepreneurship Development Institute (EDI) Small Industries Service Institute (SISI) Technical Consultancy Organizations (TCO) District Industries Centers (DIC)

Information Capital

State Financial Corporation (SFC) State Industrial Development Corporation (SIDC) State Industrial Investment Corporation

Market assessment

Market demand

Target customer group Demographics Potential Gap analysis Market share Price points Product age Discounting strategies Credit terms

Competition

Trading practices

Intermediaries Sales tax Legal implications

Infrastructure Issues

Power Transport

Common pitfalls

Vagaries of monsoon Price uncertainties Lack of contingency planning Managing cash flows