Team A

Introduction
Large part of the country is below poverty line.
Agriculture continues to be the main activity of rural society.
70% of holdings are held by small and marginal farmers resulting in

overcrowding on the agricultural land and diminishing farm value.

The above leads to migration to Urban areas
Agriculture work force is 70% in the total work force of the country. Out

of this 32% of 70% is agriculture labour and 68% is owing farm land.
In the above situation, rural entrepreneurship is the best option.

Entrepreneurship in Rural
Areas

Entrepreneurship could take off the excess of labour from farms that
causes disguised employment. These labour in actual term does not
add any value to GDP.

The basic Principals should be applied to RD.

Better distribution of farm produce
Occupation to rural youth to reduced disguised employment
Formation of Big Cooperatives like Amul for optimum utilisation
Optimum utilisation of local resource in entrepreneurial ventures
by rural youth.

 Challenges

faced by rural Entrepreneurship in India

Family Challenges

Social Challenges
Technological Challenges

Financial Challenges
Policy Challenges
Power failure
Mall Culture
Infrastructure Sickness

Opportunities for Rural Entrepreneurs

Crashed

Food

Schemes for Rural Development

for work program

National Rural
Regional
Bank

Employment program

Rural Development Centres

for Technology

Entrepreneurship Development

Rural
The

Institute of India

Innovation Funding.

above programs are available for future Rural Ents

Problem of Rural Entrepreneurship

Financial Problems

Paucity of Funds
Lack of Infrastructural facilities
Risk Elements
Marketing Problems
Competition

Middlemen

Continue
Management Problems
Lack of Knowledge of IT
Legal Formalities
Procurement of Raw Material
Lack of Technical Knowledge
Poor Quality of Products
HR Related Problems
Low skill level workers
Negative Attitude

Barriers to Entrepreneurship

Environmental
Barriers to
Entrepreneurship

Economic

1. Capital
2. Labour
3. Raw Material

Social

Non-Economic

Personal

NEED FOR RURAL ENTREPRENEURSHIP

Employment Generation

Reduce disparities in income between rural and

urban income
Promote balanced regional development
Protect and promote art and creativity
Economic development in rural areas

HOW TO DEVELOP RURAL ENTREPRENEURSHIP?

Strengthen the raw material base in rural areas.

Funds should be available on time at soft terms and conditions.

Develop entrepreneurial competencies through trainings.

Dissimilate information about the

available facilities.

Modern infrastructural facilities.

NGOs in rural areas.

Need For Sowing The Dream In

The Minds Of Rural Youth
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.
Entrepreneurship could be the best option.

If planted and nurtured in the minds of rural women and youth, it could result in
revolutionizing the Indian economy.
It should be emphasized that the projects undertaken by these entrepreneurs should
not be constrained by its location in rural area.

Advantages of Rural Industrial

Projects
1.
2.
3.

4.
5.

6.
7.

Tax holidays and other tax advantages given to rural projects.

Abundance of cheap labor.
Advantage of local and regional resources in case the unit uses
them as a raw material.
Prestige and respect among the local community
Live example for local youth for taking up entrepreneurial
project
Support and motivation from local people
Employment generation for local people.

TRAINING FOR RURAL ENTREPRENEURSHIP

The training for development of rural entrepreneurship has to be

different from the entrepreneurship development training in urban
areas.

This is the reason that government initiated the integrated rural

development programs.

The District Industrial Centre conducts these area potential surveys

for usage of potential entrepreneurs.

CONCLUSION

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. Whats required is
to create a devoted team to take up rural entrepreneurship training
as per integrated rural development program.
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.