{"id":68,"date":"2018-10-23T05:06:21","date_gmt":"2018-10-23T05:06:21","guid":{"rendered":"http:\/\/mgmtp09.epgpbooks.inflibnet.ac.in\/?post_type=chapter&#038;p=68"},"modified":"2018-10-26T06:46:48","modified_gmt":"2018-10-26T06:46:48","slug":"rural-entrepreneurship","status":"publish","type":"chapter","link":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp09\/chapter\/rural-entrepreneurship\/","title":{"rendered":"Rural Entrepreneurship"},"content":{"raw":"<div>\r\n\r\n&nbsp;\r\n\r\n<strong>Learning Outcome<\/strong>\r\n\r\nAfter completing this module students will be able to:\r\n\r\ni.\u00a0 \u00a0Understand the concept of rural entrepreneurship\r\n\r\nii.\u00a0 Understand the need for rural entrepreneurship\r\n\r\niii. Know the problems of rural entrepreneurs\r\n\r\niv. Role of NGO in developing Rural Entrepreneurship\r\n\r\n&nbsp;\r\n\r\n<strong style=\"text-align: initial;font-size: 1em\">\u201cIndia lives in Villages and it\u2019s true spirit lives in rural areas\u201d \u2013 Mahatma Gandhi.<\/strong>\r\n\r\n&nbsp;\r\n\r\n<strong style=\"text-align: initial;font-size: 1em\">1. Introduction<\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">India is principally an agrarian economy. About three- <\/span>fourth<span style=\"text-align: initial;font-size: 1em\"> of the Indian population lives in rural area and out of which 75% is still earning its livelihood from agriculture and its allied activities. There is a wide gap between the economic activities of the rural and urban people. Rural Population is more or less dependent on agriculture whereas industries are exclusively located in urban areas. Moreover, the growth in agriculture sector is much <\/span>slow<span style=\"text-align: initial;font-size: 1em\"> than <\/span>industry<span style=\"text-align: initial;font-size: 1em\"> which widens the income level gap between both. Further, the relationship between the agriculture and industry has a dependency structure which puts the rural area at <\/span>more<span style=\"text-align: initial;font-size: 1em\"> disadvantageous position in terms of gain and thus leads to poverty and backwardness. Therefore there is a need of the rural development which can be best done through rural entrepreneurship.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">2. Concept of Rural Entrepreneurship<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Rural entrepreneurs are those who carry out entrepreneurial activities by establishing industrial and business units in the rural sector of the economy<\/span>.(<span style=\"text-align: initial;font-size: 1em\">Ajmeri, 2012) \u201cRural Entrepreneurship can be defined as entrepreneurship rising at village level which can take place in a variety of fields of <\/span>venture<span style=\"text-align: initial;font-size: 1em\"> such as business, industry, agriculture <\/span>and<span style=\"text-align: initial;font-size: 1em\"> acts as a powerful reason for economic development\u201d. Industries coming under the purview of Khadi and Village Commission (KVIC) are treated as rural industries. According to KVIC, \u201cvillage industry or rural industry means any industry located in rural area, population of which does not exceed 10,000, or such other figure 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 an artisan or worker does not exceed a thousand rupees.\u201d (Misra, 2005)<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">To enlarge the scope, the definition has been tailored recently by the government. Accordingly, any industry located in rural area, village or town with a population of 20,000 and below and an investment of Rs. 3 crores in plant &amp; machinery <\/span>is<span style=\"text-align: initial;font-size: 1em\"> classified as a village industry. (Source: Government of India) Village industries have been grouped into seven categories as follows:<\/span><\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Mineral-Based Industry: e.g stone crushing, cement industries, red oxide making, wall coating powders etc.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Forest-Based Industry: e.g wood products, bamboo products, honey, coir industry, making eating plates from leaves.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">A<\/span><span style=\"text-align: initial;font-size: 1em\">gro-Based and Food-Based Industry: e.g sugar industries, jaggery, oil processing from <\/span>oil seeds<span style=\"text-align: initial;font-size: 1em\">, pickles, fruit juice, spices, dairy products etc<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Polymer and chemical-Based Industries: e.g manufacturing of <\/span>aloevera<span style=\"text-align: initial;font-size: 1em\"> gel, ball pen ink, <\/span>aggarbatti<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Engineering and non-conventional energy-based Industries: e.g agriculture <\/span>equipments<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Textile Industry: e.g spinning, weaving, <\/span>colouring<span style=\"text-align: initial;font-size: 1em\">, bleaching.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Service Industry: e.g tractors and <\/span>pumpsets<span style=\"text-align: initial;font-size: 1em\"> repairs etc.<\/span><\/li>\r\n<\/ul>\r\n<\/div>\r\n<div>\r\n\r\n<strong style=\"text-align: initial;font-size: 1em\">\u00a0 \u00a0 3. Types of Rural Entrepreneurship:<\/strong>\r\n\r\n&nbsp;\r\n\r\n<span style=\"text-align: initial;font-size: 1em\">a. Individual entrepreneurship<\/span>\r\n\r\n<span style=\"text-align: initial;font-size: 1em\">b. Group entrepreneurship<\/span>\r\n\r\n<span style=\"text-align: initial;font-size: 1em\">c. Cluster formation<\/span>\r\n\r\n<span style=\"text-align: initial;font-size: 1em\">d. Cooperative<\/span>\r\n\r\n<\/div>\r\n<div>\r\n\r\n<img class=\"aligncenter wp-image-71 size-full\" src=\"http:\/\/mgmtp09.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/75\/2018\/10\/Untitled-20.png\" alt=\"\" width=\"550\" height=\"159\" \/>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">a. <strong>Individual entrepreneurship:<\/strong> It is the type of the entrepreneurship where the single entrepreneur is the owner or the sole proprietor. The entrepreneur bears the whole risk and is solely responsible for the business decisions.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">b. <strong>Group Entrepreneurship<\/strong>: It is mainly classified into three types: 1) Private limited company 2) Public limited company 3) Partnership<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>1)\u00a0<\/strong><strong>Private limited company<\/strong>: In this case, minimum two members are required and maximum members are 50. The financial capital is divided into shares and shares are not sold to the general public. Therefore such companies are generally small in size and are owned by the families. Liability of the shareholders is limited in such companies.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>2)\u00a0<\/strong><strong>Public limited companies<\/strong>: in such companies, minimum seven members are required and there is no maximum limit. Being a public limited, it can raise money from the general public. There is separation between the control and ownership. Shareholders are the owners but they do not take active participation in the running of the business. The control of the business is in the hands of the board of directors.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>3)\u00a0<\/strong><strong>Partnership<\/strong>: In this case there is no individual owner and the business is handled by the partners (maximum 20). For the partnership, mutual trust is must and all the partners should complement each other for common goals and objectives. Partnership companies are easier to form and provide large resources but it has unlimited liability on the partners.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>c. Cluster formation<\/strong>: It is a formal and informal group of people to achieve common objectives. It includes NGO\u201fs, VO\u201fs, SHG\u201fs &amp; CBO\u201fs.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">1)\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">NGO\u2019s (Non-Government organisations)<\/strong><span style=\"text-align: initial;font-size: 1em\">: These are the non \u2013 profit <\/span>organisations<span style=\"text-align: initial;font-size: 1em\"> sponsored or formed by the government and are registered under the Society\u201fs Registration act, 1860. A <\/span>minimum<span style=\"text-align: initial;font-size: 1em\"> seven people <\/span>are grouped<span style=\"text-align: initial;font-size: 1em\"> together for the <\/span>socio- economic<span style=\"text-align: initial;font-size: 1em\"> growth of the people. These are the formal <\/span>organisations<span style=\"text-align: initial;font-size: 1em\"> and <\/span>usually<span style=\"text-align: initial;font-size: 1em\"> receive funds from the government.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">2)\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">VO\u2019s (Voluntary Organisations): <\/strong><span style=\"text-align: initial;font-size: 1em\">These are the <\/span>organisations<span style=\"text-align: initial;font-size: 1em\"> generally initiated by the individuals to serve the society and for the <\/span>socio economic<span style=\"text-align: initial;font-size: 1em\"> development of the people. These <\/span>organisations<span style=\"text-align: initial;font-size: 1em\"> may or may not register under any act. Such <\/span>organisations<span style=\"text-align: initial;font-size: 1em\"> are generally sponsored by the NGO\u201fs or the\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">Government.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">3)\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">SHG\u2019s (Self Help Groups): <\/strong><span style=\"text-align: initial;font-size: 1em\">These groups are mainly consisted of 10-20 people and are formed with the objective to mutually help each other. These groups are sponsored by the NGO\u201fs, VO\u201fs and sometimes by the Government for the <\/span>socio \u2013 economic<span style=\"text-align: initial;font-size: 1em\"> development of the backward people. It is an informal <\/span>organisation<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4)\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">CBO\u2019s (Community based organisations): <\/strong><span style=\"text-align: initial;font-size: 1em\">They are informal in nature and are formed with the objective to enhance the bargaining power of the community. People from the common living <\/span>are<span style=\"text-align: initial;font-size: 1em\"> or from the common community come together with the common objective of upliftment of the community.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">d. Cooperative<\/strong><span style=\"text-align: initial;font-size: 1em\">: According to the International cooperative alliance (ICA), \u201ca cooperative is an autonomous association of persons united voluntarily to meet their economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.\u201d<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4. Need of Rural Entrepreneurship:<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">There is a need of the rural entrepreneurship to develop the rural economy. Rural entrepreneurship is needed because of the following reasons:<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Employment Generation: <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural Entrepreneurship is a <\/span>labour<span style=\"text-align: initial;font-size: 1em\"> intensive and requires <\/span>large<span style=\"text-align: initial;font-size: 1em\"> number of human resource. Therefore, it has a large potential <\/span>of<span style=\"text-align: initial;font-size: 1em\"> employment generation and can reduce the problem of unemployment in <\/span>rural<span style=\"text-align: initial;font-size: 1em\"> area.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Income Generation: <\/strong><span style=\"text-align: initial;font-size: 1em\">By providing employment, rural entrepreneurship has <\/span>potential<span style=\"text-align: initial;font-size: 1em\"> for income generation and thus bridging the gap between the rural and urban disparities.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Rural development: <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural entrepreneurship helps in setting industries in rural areas and thus leads to the employment generation and income generation which directly help in rural development.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Curbs Rural \u2013 Urban migration: <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural development helps in curbing the <\/span>rural \u2013 urban<span style=\"text-align: initial;font-size: 1em\"> migration by reducing the unequal growth in cities.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Environment Friendly: <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural industries are more <\/span>environment friendly<span style=\"text-align: initial;font-size: 1em\"> thus leads to <\/span>the development<span style=\"text-align: initial;font-size: 1em\"> without damage.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Builds up Village republics: <\/strong><span style=\"text-align: initial;font-size: 1em\">Development of the rural industries serves as an effective means to build village republics and thus make them more independent.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Improved standard of living: <\/strong><span style=\"text-align: initial;font-size: 1em\">As rural entrepreneurship helps in income generation which helps in prospering the community and thus improving their standard of living.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Balanced regional growth: <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural entrepreneurship will direct the concentration of industries in rural areas which leads to <\/span>the balanced<span style=\"text-align: initial;font-size: 1em\"> regional growth.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">5.\u00a0 <\/strong><strong style=\"text-align: initial;font-size: 1em\">Scope of rural entrepreneurship:<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Rural entrepreneurship is active and is opening new scopes for the entrepreneurs and are discussed as follows:<\/span><\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Rural area has the capacity of small and medium enterprises and these sectors <\/span>acts<span style=\"text-align: initial;font-size: 1em\"> as the economy builders by generating Employment and income for poor and unemployed people and is contributing more than 52% of the GDP.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Moreover, there is a rapid expansion in the small and medium industry arena. Therefore, Repair shops, service centers, PCO, internet caf\u00e9, <\/span>hiring<span style=\"text-align: initial;font-size: 1em\"> of agriculture implements &amp; tractor, computer and other skill training centers have good scope in <\/span>cluster<span style=\"text-align: initial;font-size: 1em\"> of villages.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Entertainment, cable <\/span>TV ,rural<span style=\"text-align: initial;font-size: 1em\"> tourism and amusement parks (near urban areas) are also some of the potential areas for rural entrepreneurs in <\/span>service<span style=\"text-align: initial;font-size: 1em\"> sector<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Various development programs are being executed through <\/span>Panchayti<span style=\"text-align: initial;font-size: 1em\"> Raj Institutions, who are engaging contractors for civil \/mechanical works. Rural youth can start this business.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Changed consumption pattern has opened up new avenues for trading activities in rural areas.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Rural areas are also using <\/span>large<span style=\"text-align: initial;font-size: 1em\"> amount of agriculture products like fertilizers, seeds, pesticides <\/span>and<span style=\"text-align: initial;font-size: 1em\"> insecticides etc.<\/span><\/li>\r\n<\/ul>\r\n<\/div>\r\n<div>\r\n\r\n<strong>\u00a0 \u00a0 6.\u00a0 <\/strong><strong>Problems faced in the growth of rural entrepreneurs:<\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">Rural entrepreneurs face large number of problems like illiteracy, risk factor, improper training and experience, limited purchasing power and tough competition from urban entrepreneurs. Various problems faced by rural entrepreneurs are following.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">a)\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Scarcity of funds: <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural entrepreneurs find it difficult to get external funds due to the risk involved in the rural industries. Moreover, the procedure to avail loan facility is too long and cumbersome that its postponement often disappoints the rural entrepreneurs.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">b)\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Competition: <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural entrepreneurs face tough competition from <\/span>large scale<span style=\"text-align: initial;font-size: 1em\"> industries and the urban entrepreneurs as their cost of production is high due to high input cost.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">c)\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Middlemen: <\/strong><span style=\"text-align: initial;font-size: 1em\">As there is small market available for the rural entrepreneurs so they are heavily dependent on the middlemen for marketing of their products and thus Middlemen exploit rural entrepreneurs<\/span><strong style=\"text-align: initial;font-size: 1em\"><em>.<\/em><\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">d)\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Legal formalities: <\/strong><span style=\"text-align: initial;font-size: 1em\">As Rural entrepreneurs are illiterate and ignorant so they find it extremely difficult to comply with various legal formalities in obtaining licenses. Moreover, the legal formalities are so complex and <\/span>time consuming<span style=\"text-align: initial;font-size: 1em\"> that it <\/span>become<span style=\"text-align: initial;font-size: 1em\"> tough for the entrepreneurs.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">e)\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Procurement of raw materials: <\/strong><span style=\"text-align: initial;font-size: 1em\">Arranging raw material is really a tough task for <\/span>rural<span style=\"text-align: initial;font-size: 1em\"> entrepreneur. They may finish with poor quality raw materials and can also face the problem of storage and warehousing.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">f)\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Risk element<em>:<\/em> <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural entrepreneurs face tough competition from <\/span>large scale<span style=\"text-align: initial;font-size: 1em\"> industries and do not have <\/span>large<span style=\"text-align: initial;font-size: 1em\"> market available for them. Therefore, have much less <\/span>risk taking<span style=\"text-align: initial;font-size: 1em\"> capacity due to <\/span>shortage<span style=\"text-align: initial;font-size: 1em\"> of financial resources and external support.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">g)\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Lack of technical knowledge: <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural entrepreneurs suffer a problem of lack of technical knowledge because rural people are illiterate and lack of training facilities which acts as <\/span>hurdle<span style=\"text-align: initial;font-size: 1em\"> for the rural development.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">h)\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Lack of infrastructural facilities: <\/strong><span style=\"text-align: initial;font-size: 1em\">Though <\/span>government<span style=\"text-align: initial;font-size: 1em\"> is putting its best efforts <\/span>but<span style=\"text-align: initial;font-size: 1em\"> the growth of the rural entrepreneurs is not very healthy due to lack of proper and adequate infrastructural facilities.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">i)\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Poor quality of products<em>:<\/em> <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural entrepreneurs produce <\/span>inferior<span style=\"text-align: initial;font-size: 1em\"> quality of products due to lack of availability of standard tools and equipment and the availability of poor quality raw materials<\/span><strong style=\"text-align: initial;font-size: 1em\"><em>.<\/em><\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">j)\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Negative attitude: <\/strong><span style=\"text-align: initial;font-size: 1em\">The environment in the family and society is not favorable to support rural people to take up entrepreneurship as a career. It may be due to lack of awareness and knowledge of entrepreneurial opportunities.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">7.\u00a0 <\/strong><strong style=\"text-align: initial;font-size: 1em\">Advantages of Rural entrepreneurship:<\/strong><\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Abundance of Resources<\/strong><span style=\"text-align: initial;font-size: 1em\">: Rural areas have abundant natural resources including land, water minerals <\/span>and<span style=\"text-align: initial;font-size: 1em\"> solar power and also wind power. Moreover land is easily available at cheap rates.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Easy availability of labour<\/strong><span style=\"text-align: initial;font-size: 1em\">: <\/span>Semi skilled<span style=\"text-align: initial;font-size: 1em\"> and unskilled <\/span>labour<span style=\"text-align: initial;font-size: 1em\"> is easily available and low wage rates <\/span>increases<span style=\"text-align: initial;font-size: 1em\"> the vulnerability of rural areas for industrialization.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Tax advantage<\/strong><span style=\"text-align: initial;font-size: 1em\">: Tax burden in rural areas is low, which increases competitive strength of <\/span>rural<span style=\"text-align: initial;font-size: 1em\"> industry.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Low investment: <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural industries can be started with low investment and Production can be done at a less cost due to easy availability of resources.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Employment: <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural Industries generate jobs in <\/span>the developing<span style=\"text-align: initial;font-size: 1em\"> countries like India where <\/span>the unemployment<span style=\"text-align: initial;font-size: 1em\"> is the main problem.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Slow down urban migration: <\/strong><span style=\"text-align: initial;font-size: 1em\">As rural industries create jobs, therefore it slows down the <\/span>rural - urban<span style=\"text-align: initial;font-size: 1em\"> migration which creates problems in urban areas.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Meet demands<\/strong><span style=\"text-align: initial;font-size: 1em\">: in developing countries like India, where the population is extremely large, rural industries can help in meeting demands arising from local consumption needs.<\/span><\/li>\r\n<\/ul>\r\n<\/div>\r\n<div>\r\n\r\n<span style=\"text-align: initial;font-size: 1em\">\u00a0 \u00a0 The role of rural industries is of vital importance in our country due to above-mentioned advantages.<\/span>\r\n\r\n&nbsp;\r\n\r\n<strong style=\"text-align: initial;font-size: 1em\">8. Developmental strategies for rural entrepreneurship<\/strong><span style=\"text-align: initial;font-size: 1em\">:<\/span>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">While developing <\/span>strategy<span style=\"text-align: initial;font-size: 1em\"> for industrial enterprise in rural areas, it is necessary to take into consideration the totality of rural reality in terms of resources physical and human as also environmental. It is believed that <\/span>following<span style=\"text-align: initial;font-size: 1em\"> approaches can be used for formulating <\/span>strategy<span style=\"text-align: initial;font-size: 1em\"> for <\/span>rural<span style=\"text-align: initial;font-size: 1em\"> industrial enterprise:<\/span><\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Harmonize Govt. efforts<\/strong><span style=\"text-align: initial;font-size: 1em\">: Government should synchronize its initiatives with some NGO\u201fs or the agencies working for the rural development so that policies can be implemented in a perfect order for the rural growth.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Technology development<\/strong><span style=\"text-align: initial;font-size: 1em\">: Provisions should be made to provide the rural population with the latest technologies so that rapid development can <\/span>takes<span style=\"text-align: initial;font-size: 1em\"> place.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Basic training for prospective rural entrepreneurs<\/strong><span style=\"text-align: initial;font-size: 1em\">: Prospective entrepreneurs must be identified and basic training should be provided. They should be motivated by telling the success stories of the different entrepreneurs.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Skill enhancement training programs<\/strong><span style=\"text-align: initial;font-size: 1em\">: Such training programs should be provided to the rural population so that skilled workers can be available for the rural industries.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Modern infrastructure facilities<\/strong><span style=\"text-align: initial;font-size: 1em\">: It is necessary to create modern infrastructural facilities in <\/span>the rural<span style=\"text-align: initial;font-size: 1em\"> areas so that entrepreneurs can be attracted.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Credit supply<\/strong><span style=\"text-align: initial;font-size: 1em\">: banking and <\/span>non banking<span style=\"text-align: initial;font-size: 1em\"> agencies should provide the funds at cheaper credit and at short terms and conditions.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Co-ordination between small and large industries<\/strong><span style=\"text-align: initial;font-size: 1em\">: collaborations should be encouraged between small and large scale industries so that cheaper products made by small industries can be marketed at <\/span>large<span style=\"text-align: initial;font-size: 1em\"> scale.<\/span><\/li>\r\n<\/ul>\r\n<\/div>\r\n<div>\r\n\r\n<strong>\u00a0 \u00a0 9.\u00a0 <\/strong><strong>Role of NGO in Development of Rural Entrepreneurship<\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">Rural entrepreneurship is one of the most important factors for the rural development to remove the problem of unemployment and poverty. Therefore, it is the need of the hour. Government has taken many initiatives for the rural development and started various self employment and poverty alleviation programmes like Pradhana Mantri Rozgar Yojna, IRDP, TRYSEM etc. but proved ineffective due to the improper execution of the programmes. For the rural development, one has to be at the grassroots to identify the problems and then find the solutions and this can be done only when one is in the contact of the rural population. Such a situation necessitated the need of the NGO\u201fs to join hands with the Government and find the problems and thus helps in the execution of the programmes implemented by the government. Government therefore collaborated with the NGO\u201fs to reach the actual problems of the rural population.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">Today we have large number of the NGO\u201fs working for the rural entrepreneurship. The main NGO\u201fs are: National Alliance of Young Entrepreneurs (NAYE), World Assembly of Small and Medium Entrepreneurs (WASME), Xavier institute for Social Studies (XISS), SEWA of Ahmedabad, \u201eY\u201f Self-Employment of Calcutta, AWAKE (Association of Women Entrepreneurs of Karnataka), and Rural Development and Self-Employment Training Institute (RUDSETIs) based in Karnataka:<\/p>\r\n&nbsp;\r\n\r\n<span style=\"text-align: initial;font-size: 1em\">NGO\u201fs functioning for the rural entrepreneurship can be classified into three types:<\/span>\r\n\r\n<span style=\"font-size: 1em;text-align: initial\">1. Primary level NGO\u201fs<\/span>\r\n\r\n<span style=\"text-align: initial;font-size: 1em\">2.\u00a0 Secondary Level NGO\u201fs<\/span>\r\n\r\n<span style=\"text-align: initial;font-size: 1em\">3.\u00a0 Grass root level NGO\u201fs<\/span><strong style=\"text-align: initial;font-size: 1em\">.<\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: justify;font-size: 1em\">1.\u00a0<\/strong><strong style=\"text-align: justify;font-size: 1em\">Primary Level NGO\u2019s: <\/strong><span style=\"text-align: justify;font-size: 1em\">These are the NGO\u201fs who assemble their own resources and implement developmental activities on their own and works at <\/span>international<span style=\"text-align: justify;font-size: 1em\"> level. <\/span><strong style=\"text-align: justify;font-size: 1em\">Example:<\/strong> ACTIONAID<span style=\"text-align: justify;font-size: 1em\">, OXFAM, Christian Children Fund, etc. are some of the best examples of primary level NGOs in India.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">2.\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Intermediate NGO\u2019s: <\/strong><span style=\"text-align: initial;font-size: 1em\">These are the NGO\u201fs who arrange funds from the external agencies and impart training and conduct workshops for the target group. <\/span><strong style=\"text-align: initial;font-size: 1em\">Example:<\/strong><span style=\"text-align: initial;font-size: 1em\"> SEWA and AWAKE are examples of intermediate NGOs<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">3.\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Grass Root Level NGO\u2019s: <\/strong><span style=\"text-align: initial;font-size: 1em\">These are the NGO\u201fs who make direct contact with the target group and work at the grass root level. <\/span><strong style=\"text-align: initial;font-size: 1em\">Example:<\/strong><span style=\"text-align: initial;font-size: 1em\"> Such NGO\u201fs are RUDSETIs, ANARDE Foundation (Gujarat), Indian Institute of Youth Welfare (IIYW) of Maharashtra etc.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The training imparted to the rural population can be divided into three types:<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">1.\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Stimulation: <\/strong><span style=\"text-align: initial;font-size: 1em\">Conducting workshops and <\/span>trainings<span style=\"text-align: initial;font-size: 1em\"> for the rural population to stimulate the entrepreneurial attitude amongst them.<\/span><\/p>\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">2.\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Counselling: <\/strong><span style=\"text-align: initial;font-size: 1em\">Providing counseling and consultancy services to the rural entrepreneurs regarding Project analysis, selection of an idea, preparation of business plan etc.<\/span><\/p>\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">3.\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Assistance: <\/strong><span style=\"text-align: initial;font-size: 1em\">Providing help to the target group in financial support and providing <\/span>market<span style=\"text-align: initial;font-size: 1em\"> for their products.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The NGOs can prove to be a boon for rural entrepreneurship due to following reasons:<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">a. NGO\u201fs works at the <\/span>grassroot<span style=\"text-align: initial;font-size: 1em\"> level so they are near to the rural population which helps in understanding them well.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">b. their experiments with the community can <\/span>helps<span style=\"text-align: initial;font-size: 1em\"> in developing policies.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">c. working of the NGO\u201f<\/span>s is<span style=\"text-align: initial;font-size: 1em\"> flexible so they help in <\/span>formulate<span style=\"text-align: initial;font-size: 1em\"> appropriate solutions and can tailor to meet the individual needs<\/span>.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">d. NGO\u201fs concerns with the rural poor, so can reach <\/span>at<span style=\"text-align: initial;font-size: 1em\"> the remote locations, where it is not possible for the government to reach.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">e. Due to their flexibility, they have the capability to innovate and adapt using technology transfer and settle them according to the local conditions.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">NGOs also suffer from certain weaknesses as <\/span>following<span style=\"text-align: initial;font-size: 1em\">:<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"font-size: 1em;text-align: initial\">a. NGO\u201fs prime job is to work for the social development of the community. So, there can be role conflict.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">b. NGO\u201fs have limited capacities, therefore <\/span>there<span style=\"text-align: initial;font-size: 1em\"> projects are limited in area.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">c. They are dependent on other agencies for funds. Therefore, donor pressure may create problems.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">d. The NGO\u201fs structures are becoming bureaucratic in nature leading to the reduced efficiency in the overall development.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">In spite of the weaknesses, the role of NGOs in entrepreneurship development cannot be undermined. There is <\/span>large<span style=\"text-align: initial;font-size: 1em\"> number of <\/span>Evidences<span style=\"text-align: initial;font-size: 1em\"> which shows that NGOs in India have succeeded largely in imparting entrepreneurial skills among the weaker sections of the society.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">11. Summary<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Rural area has a wide potential which can be harnessed by developing appropriate strategies for the rural entrepreneurship. Rural entrepreneurship has incredible opportunities but due to lack of infrastructure and awareness people don\u201ft prefer rural entrepreneurship. Moreover, the glamour of urban life has so widened that people prefer to migrate to urban areas then starting <\/span>enterprise<span style=\"text-align: initial;font-size: 1em\"> in rural areas. Coordinated efforts of Government along with various agencies <\/span>are requires<span style=\"text-align: initial;font-size: 1em\"> to achieve the goal. Therefore, Rural entrepreneurship will help in developing the rural area by employment and income generation and thus developing the economy.<\/span><\/p>\r\n\r\n<\/div>\r\n<div>\r\n\r\n&nbsp;\r\n\r\n<strong><span style=\"text-align: initial;font-size: 1em\">WEBLINKS:<\/span><\/strong>\r\n\r\n&nbsp;\r\n\r\n<a style=\"text-align: justify;font-size: 1em\" href=\"http:\/\/www.ijarcsms.com\/docs\/paper\/volume1\/issue2\/V1I2-0003.pdf\">http:\/\/www.ijarcsms.com\/docs\/paper\/volume1\/issue2\/V1I2-0003.pdf<\/a>\r\n\r\n&nbsp;\r\n\r\n<a style=\"text-align: justify;font-size: 1em\" href=\"http:\/\/www.fao.org\/docrep\/w6882e\/w6882e02.htm\">http:\/\/www.fao.org\/docrep\/w6882e\/w6882e02.htm<\/a>\r\n\r\n&nbsp;\r\n\r\n<a style=\"text-align: justify;font-size: 1em\" href=\"http:\/\/www.publishyourarticles.net\/eng\/articles2\/role-and-importance-of-rural-entrepreneurs-in-india\/2722\/\">http:\/\/www.publishyourarticles.net\/eng\/articles2\/role-and-importance-of-rural-entrepreneurs-in-<\/a><a style=\"text-align: justify;font-size: 1em\" href=\"http:\/\/www.publishyourarticles.net\/eng\/articles2\/role-and-importance-of-rural-entrepreneurs-in-india\/2722\/\">india\/2722\/<\/a>\r\n\r\n&nbsp;\r\n\r\n<a style=\"text-align: justify;font-size: 1em\" href=\"http:\/\/www.preservearticles.com\/201101143355\/importance-of-rural-entrepreneurs.html\">http:\/\/www.preservearticles.com\/201101143355\/importance-of-rural-entrepreneurs.html<\/a>\r\n\r\n&nbsp;\r\n\r\n<a style=\"text-align: justify;font-size: 1em\" href=\"http:\/\/www.journal.bonfring.org\/papers\/iems\/volume1\/BIJIEMS-01-1004.pdf\">http:\/\/www.journal.bonfring.org\/papers\/iems\/volume1\/BIJIEMS-01-1004.pdf<\/a>\r\n\r\n<\/div>\r\n&nbsp;\r\n\r\n&nbsp;","rendered":"<div>\n<p>&nbsp;<\/p>\n<p><strong>Learning Outcome<\/strong><\/p>\n<p>After completing this module students will be able to:<\/p>\n<p>i.\u00a0 \u00a0Understand the concept of rural entrepreneurship<\/p>\n<p>ii.\u00a0 Understand the need for rural entrepreneurship<\/p>\n<p>iii. Know the problems of rural entrepreneurs<\/p>\n<p>iv. Role of NGO in developing Rural Entrepreneurship<\/p>\n<p>&nbsp;<\/p>\n<p><strong style=\"text-align: initial;font-size: 1em\">\u201cIndia lives in Villages and it\u2019s true spirit lives in rural areas\u201d \u2013 Mahatma Gandhi.<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><strong style=\"text-align: initial;font-size: 1em\">1. Introduction<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">India is principally an agrarian economy. About three- <\/span>fourth<span style=\"text-align: initial;font-size: 1em\"> of the Indian population lives in rural area and out of which 75% is still earning its livelihood from agriculture and its allied activities. There is a wide gap between the economic activities of the rural and urban people. Rural Population is more or less dependent on agriculture whereas industries are exclusively located in urban areas. Moreover, the growth in agriculture sector is much <\/span>slow<span style=\"text-align: initial;font-size: 1em\"> than <\/span>industry<span style=\"text-align: initial;font-size: 1em\"> which widens the income level gap between both. Further, the relationship between the agriculture and industry has a dependency structure which puts the rural area at <\/span>more<span style=\"text-align: initial;font-size: 1em\"> disadvantageous position in terms of gain and thus leads to poverty and backwardness. Therefore there is a need of the rural development which can be best done through rural entrepreneurship.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">2. Concept of Rural Entrepreneurship<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Rural entrepreneurs are those who carry out entrepreneurial activities by establishing industrial and business units in the rural sector of the economy<\/span>.(<span style=\"text-align: initial;font-size: 1em\">Ajmeri, 2012) \u201cRural Entrepreneurship can be defined as entrepreneurship rising at village level which can take place in a variety of fields of <\/span>venture<span style=\"text-align: initial;font-size: 1em\"> such as business, industry, agriculture <\/span>and<span style=\"text-align: initial;font-size: 1em\"> acts as a powerful reason for economic development\u201d. Industries coming under the purview of Khadi and Village Commission (KVIC) are treated as rural industries. According to KVIC, \u201cvillage industry or rural industry means any industry located in rural area, population of which does not exceed 10,000, or such other figure 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 an artisan or worker does not exceed a thousand rupees.\u201d (Misra, 2005)<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">To enlarge the scope, the definition has been tailored recently by the government. Accordingly, any industry located in rural area, village or town with a population of 20,000 and below and an investment of Rs. 3 crores in plant &amp; machinery <\/span>is<span style=\"text-align: initial;font-size: 1em\"> classified as a village industry. (Source: Government of India) Village industries have been grouped into seven categories as follows:<\/span><\/p>\n<ul>\n<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Mineral-Based Industry: e.g stone crushing, cement industries, red oxide making, wall coating powders etc.<\/span><\/li>\n<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Forest-Based Industry: e.g wood products, bamboo products, honey, coir industry, making eating plates from leaves.<\/span><\/li>\n<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">A<\/span><span style=\"text-align: initial;font-size: 1em\">gro-Based and Food-Based Industry: e.g sugar industries, jaggery, oil processing from <\/span>oil seeds<span style=\"text-align: initial;font-size: 1em\">, pickles, fruit juice, spices, dairy products etc<\/span><\/li>\n<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Polymer and chemical-Based Industries: e.g manufacturing of <\/span>aloevera<span style=\"text-align: initial;font-size: 1em\"> gel, ball pen ink, <\/span>aggarbatti<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/li>\n<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Engineering and non-conventional energy-based Industries: e.g agriculture <\/span>equipments<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/li>\n<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Textile Industry: e.g spinning, weaving, <\/span>colouring<span style=\"text-align: initial;font-size: 1em\">, bleaching.<\/span><\/li>\n<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Service Industry: e.g tractors and <\/span>pumpsets<span style=\"text-align: initial;font-size: 1em\"> repairs etc.<\/span><\/li>\n<\/ul>\n<\/div>\n<div>\n<p><strong style=\"text-align: initial;font-size: 1em\">\u00a0 \u00a0 3. Types of Rural Entrepreneurship:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"text-align: initial;font-size: 1em\">a. Individual entrepreneurship<\/span><\/p>\n<p><span style=\"text-align: initial;font-size: 1em\">b. Group entrepreneurship<\/span><\/p>\n<p><span style=\"text-align: initial;font-size: 1em\">c. Cluster formation<\/span><\/p>\n<p><span style=\"text-align: initial;font-size: 1em\">d. Cooperative<\/span><\/p>\n<\/div>\n<div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-71 size-full\" src=\"http:\/\/mgmtp09.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/75\/2018\/10\/Untitled-20.png\" alt=\"\" width=\"550\" height=\"159\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/mgmtp09\/wp-content\/uploads\/sites\/75\/2018\/10\/Untitled-20.png 550w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp09\/wp-content\/uploads\/sites\/75\/2018\/10\/Untitled-20-300x87.png 300w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp09\/wp-content\/uploads\/sites\/75\/2018\/10\/Untitled-20-65x19.png 65w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp09\/wp-content\/uploads\/sites\/75\/2018\/10\/Untitled-20-225x65.png 225w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp09\/wp-content\/uploads\/sites\/75\/2018\/10\/Untitled-20-350x101.png 350w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">a. <strong>Individual entrepreneurship:<\/strong> It is the type of the entrepreneurship where the single entrepreneur is the owner or the sole proprietor. The entrepreneur bears the whole risk and is solely responsible for the business decisions.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">b. <strong>Group Entrepreneurship<\/strong>: It is mainly classified into three types: 1) Private limited company 2) Public limited company 3) Partnership<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>1)\u00a0<\/strong><strong>Private limited company<\/strong>: In this case, minimum two members are required and maximum members are 50. The financial capital is divided into shares and shares are not sold to the general public. Therefore such companies are generally small in size and are owned by the families. Liability of the shareholders is limited in such companies.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>2)\u00a0<\/strong><strong>Public limited companies<\/strong>: in such companies, minimum seven members are required and there is no maximum limit. Being a public limited, it can raise money from the general public. There is separation between the control and ownership. Shareholders are the owners but they do not take active participation in the running of the business. The control of the business is in the hands of the board of directors.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>3)\u00a0<\/strong><strong>Partnership<\/strong>: In this case there is no individual owner and the business is handled by the partners (maximum 20). For the partnership, mutual trust is must and all the partners should complement each other for common goals and objectives. Partnership companies are easier to form and provide large resources but it has unlimited liability on the partners.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>c. Cluster formation<\/strong>: It is a formal and informal group of people to achieve common objectives. It includes NGO\u201fs, VO\u201fs, SHG\u201fs &amp; CBO\u201fs.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">1)\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">NGO\u2019s (Non-Government organisations)<\/strong><span style=\"text-align: initial;font-size: 1em\">: These are the non \u2013 profit <\/span>organisations<span style=\"text-align: initial;font-size: 1em\"> sponsored or formed by the government and are registered under the Society\u201fs Registration act, 1860. A <\/span>minimum<span style=\"text-align: initial;font-size: 1em\"> seven people <\/span>are grouped<span style=\"text-align: initial;font-size: 1em\"> together for the <\/span>socio- economic<span style=\"text-align: initial;font-size: 1em\"> growth of the people. These are the formal <\/span>organisations<span style=\"text-align: initial;font-size: 1em\"> and <\/span>usually<span style=\"text-align: initial;font-size: 1em\"> receive funds from the government.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">2)\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">VO\u2019s (Voluntary Organisations): <\/strong><span style=\"text-align: initial;font-size: 1em\">These are the <\/span>organisations<span style=\"text-align: initial;font-size: 1em\"> generally initiated by the individuals to serve the society and for the <\/span>socio economic<span style=\"text-align: initial;font-size: 1em\"> development of the people. These <\/span>organisations<span style=\"text-align: initial;font-size: 1em\"> may or may not register under any act. Such <\/span>organisations<span style=\"text-align: initial;font-size: 1em\"> are generally sponsored by the NGO\u201fs or the\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">Government.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">3)\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">SHG\u2019s (Self Help Groups): <\/strong><span style=\"text-align: initial;font-size: 1em\">These groups are mainly consisted of 10-20 people and are formed with the objective to mutually help each other. These groups are sponsored by the NGO\u201fs, VO\u201fs and sometimes by the Government for the <\/span>socio \u2013 economic<span style=\"text-align: initial;font-size: 1em\"> development of the backward people. It is an informal <\/span>organisation<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4)\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">CBO\u2019s (Community based organisations): <\/strong><span style=\"text-align: initial;font-size: 1em\">They are informal in nature and are formed with the objective to enhance the bargaining power of the community. People from the common living <\/span>are<span style=\"text-align: initial;font-size: 1em\"> or from the common community come together with the common objective of upliftment of the community.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">d. Cooperative<\/strong><span style=\"text-align: initial;font-size: 1em\">: According to the International cooperative alliance (ICA), \u201ca cooperative is an autonomous association of persons united voluntarily to meet their economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.\u201d<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4. Need of Rural Entrepreneurship:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">There is a need of the rural entrepreneurship to develop the rural economy. Rural entrepreneurship is needed because of the following reasons:<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Employment Generation: <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural Entrepreneurship is a <\/span>labour<span style=\"text-align: initial;font-size: 1em\"> intensive and requires <\/span>large<span style=\"text-align: initial;font-size: 1em\"> number of human resource. Therefore, it has a large potential <\/span>of<span style=\"text-align: initial;font-size: 1em\"> employment generation and can reduce the problem of unemployment in <\/span>rural<span style=\"text-align: initial;font-size: 1em\"> area.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Income Generation: <\/strong><span style=\"text-align: initial;font-size: 1em\">By providing employment, rural entrepreneurship has <\/span>potential<span style=\"text-align: initial;font-size: 1em\"> for income generation and thus bridging the gap between the rural and urban disparities.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Rural development: <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural entrepreneurship helps in setting industries in rural areas and thus leads to the employment generation and income generation which directly help in rural development.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Curbs Rural \u2013 Urban migration: <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural development helps in curbing the <\/span>rural \u2013 urban<span style=\"text-align: initial;font-size: 1em\"> migration by reducing the unequal growth in cities.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Environment Friendly: <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural industries are more <\/span>environment friendly<span style=\"text-align: initial;font-size: 1em\"> thus leads to <\/span>the development<span style=\"text-align: initial;font-size: 1em\"> without damage.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Builds up Village republics: <\/strong><span style=\"text-align: initial;font-size: 1em\">Development of the rural industries serves as an effective means to build village republics and thus make them more independent.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Improved standard of living: <\/strong><span style=\"text-align: initial;font-size: 1em\">As rural entrepreneurship helps in income generation which helps in prospering the community and thus improving their standard of living.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Balanced regional growth: <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural entrepreneurship will direct the concentration of industries in rural areas which leads to <\/span>the balanced<span style=\"text-align: initial;font-size: 1em\"> regional growth.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">5.\u00a0 <\/strong><strong style=\"text-align: initial;font-size: 1em\">Scope of rural entrepreneurship:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Rural entrepreneurship is active and is opening new scopes for the entrepreneurs and are discussed as follows:<\/span><\/p>\n<ul>\n<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Rural area has the capacity of small and medium enterprises and these sectors <\/span>acts<span style=\"text-align: initial;font-size: 1em\"> as the economy builders by generating Employment and income for poor and unemployed people and is contributing more than 52% of the GDP.<\/span><\/li>\n<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Moreover, there is a rapid expansion in the small and medium industry arena. Therefore, Repair shops, service centers, PCO, internet caf\u00e9, <\/span>hiring<span style=\"text-align: initial;font-size: 1em\"> of agriculture implements &amp; tractor, computer and other skill training centers have good scope in <\/span>cluster<span style=\"text-align: initial;font-size: 1em\"> of villages.<\/span><\/li>\n<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Entertainment, cable <\/span>TV ,rural<span style=\"text-align: initial;font-size: 1em\"> tourism and amusement parks (near urban areas) are also some of the potential areas for rural entrepreneurs in <\/span>service<span style=\"text-align: initial;font-size: 1em\"> sector<\/span><\/li>\n<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Various development programs are being executed through <\/span>Panchayti<span style=\"text-align: initial;font-size: 1em\"> Raj Institutions, who are engaging contractors for civil \/mechanical works. Rural youth can start this business.<\/span><\/li>\n<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Changed consumption pattern has opened up new avenues for trading activities in rural areas.<\/span><\/li>\n<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Rural areas are also using <\/span>large<span style=\"text-align: initial;font-size: 1em\"> amount of agriculture products like fertilizers, seeds, pesticides <\/span>and<span style=\"text-align: initial;font-size: 1em\"> insecticides etc.<\/span><\/li>\n<\/ul>\n<\/div>\n<div>\n<p><strong>\u00a0 \u00a0 6.\u00a0 <\/strong><strong>Problems faced in the growth of rural entrepreneurs:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Rural entrepreneurs face large number of problems like illiteracy, risk factor, improper training and experience, limited purchasing power and tough competition from urban entrepreneurs. Various problems faced by rural entrepreneurs are following.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">a)\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Scarcity of funds: <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural entrepreneurs find it difficult to get external funds due to the risk involved in the rural industries. Moreover, the procedure to avail loan facility is too long and cumbersome that its postponement often disappoints the rural entrepreneurs.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">b)\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Competition: <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural entrepreneurs face tough competition from <\/span>large scale<span style=\"text-align: initial;font-size: 1em\"> industries and the urban entrepreneurs as their cost of production is high due to high input cost.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">c)\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Middlemen: <\/strong><span style=\"text-align: initial;font-size: 1em\">As there is small market available for the rural entrepreneurs so they are heavily dependent on the middlemen for marketing of their products and thus Middlemen exploit rural entrepreneurs<\/span><strong style=\"text-align: initial;font-size: 1em\"><em>.<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">d)\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Legal formalities: <\/strong><span style=\"text-align: initial;font-size: 1em\">As Rural entrepreneurs are illiterate and ignorant so they find it extremely difficult to comply with various legal formalities in obtaining licenses. Moreover, the legal formalities are so complex and <\/span>time consuming<span style=\"text-align: initial;font-size: 1em\"> that it <\/span>become<span style=\"text-align: initial;font-size: 1em\"> tough for the entrepreneurs.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">e)\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Procurement of raw materials: <\/strong><span style=\"text-align: initial;font-size: 1em\">Arranging raw material is really a tough task for <\/span>rural<span style=\"text-align: initial;font-size: 1em\"> entrepreneur. They may finish with poor quality raw materials and can also face the problem of storage and warehousing.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">f)\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Risk element<em>:<\/em> <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural entrepreneurs face tough competition from <\/span>large scale<span style=\"text-align: initial;font-size: 1em\"> industries and do not have <\/span>large<span style=\"text-align: initial;font-size: 1em\"> market available for them. Therefore, have much less <\/span>risk taking<span style=\"text-align: initial;font-size: 1em\"> capacity due to <\/span>shortage<span style=\"text-align: initial;font-size: 1em\"> of financial resources and external support.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">g)\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Lack of technical knowledge: <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural entrepreneurs suffer a problem of lack of technical knowledge because rural people are illiterate and lack of training facilities which acts as <\/span>hurdle<span style=\"text-align: initial;font-size: 1em\"> for the rural development.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">h)\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Lack of infrastructural facilities: <\/strong><span style=\"text-align: initial;font-size: 1em\">Though <\/span>government<span style=\"text-align: initial;font-size: 1em\"> is putting its best efforts <\/span>but<span style=\"text-align: initial;font-size: 1em\"> the growth of the rural entrepreneurs is not very healthy due to lack of proper and adequate infrastructural facilities.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">i)\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Poor quality of products<em>:<\/em> <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural entrepreneurs produce <\/span>inferior<span style=\"text-align: initial;font-size: 1em\"> quality of products due to lack of availability of standard tools and equipment and the availability of poor quality raw materials<\/span><strong style=\"text-align: initial;font-size: 1em\"><em>.<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">j)\u00a0<\/span><strong style=\"text-align: initial;font-size: 1em\">Negative attitude: <\/strong><span style=\"text-align: initial;font-size: 1em\">The environment in the family and society is not favorable to support rural people to take up entrepreneurship as a career. It may be due to lack of awareness and knowledge of entrepreneurial opportunities.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">7.\u00a0 <\/strong><strong style=\"text-align: initial;font-size: 1em\">Advantages of Rural entrepreneurship:<\/strong><\/p>\n<ul>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Abundance of Resources<\/strong><span style=\"text-align: initial;font-size: 1em\">: Rural areas have abundant natural resources including land, water minerals <\/span>and<span style=\"text-align: initial;font-size: 1em\"> solar power and also wind power. Moreover land is easily available at cheap rates.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Easy availability of labour<\/strong><span style=\"text-align: initial;font-size: 1em\">: <\/span>Semi skilled<span style=\"text-align: initial;font-size: 1em\"> and unskilled <\/span>labour<span style=\"text-align: initial;font-size: 1em\"> is easily available and low wage rates <\/span>increases<span style=\"text-align: initial;font-size: 1em\"> the vulnerability of rural areas for industrialization.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Tax advantage<\/strong><span style=\"text-align: initial;font-size: 1em\">: Tax burden in rural areas is low, which increases competitive strength of <\/span>rural<span style=\"text-align: initial;font-size: 1em\"> industry.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Low investment: <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural industries can be started with low investment and Production can be done at a less cost due to easy availability of resources.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Employment: <\/strong><span style=\"text-align: initial;font-size: 1em\">Rural Industries generate jobs in <\/span>the developing<span style=\"text-align: initial;font-size: 1em\"> countries like India where <\/span>the unemployment<span style=\"text-align: initial;font-size: 1em\"> is the main problem.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Slow down urban migration: <\/strong><span style=\"text-align: initial;font-size: 1em\">As rural industries create jobs, therefore it slows down the <\/span>rural &#8211; urban<span style=\"text-align: initial;font-size: 1em\"> migration which creates problems in urban areas.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Meet demands<\/strong><span style=\"text-align: initial;font-size: 1em\">: in developing countries like India, where the population is extremely large, rural industries can help in meeting demands arising from local consumption needs.<\/span><\/li>\n<\/ul>\n<\/div>\n<div>\n<p><span style=\"text-align: initial;font-size: 1em\">\u00a0 \u00a0 The role of rural industries is of vital importance in our country due to above-mentioned advantages.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><strong style=\"text-align: initial;font-size: 1em\">8. Developmental strategies for rural entrepreneurship<\/strong><span style=\"text-align: initial;font-size: 1em\">:<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">While developing <\/span>strategy<span style=\"text-align: initial;font-size: 1em\"> for industrial enterprise in rural areas, it is necessary to take into consideration the totality of rural reality in terms of resources physical and human as also environmental. It is believed that <\/span>following<span style=\"text-align: initial;font-size: 1em\"> approaches can be used for formulating <\/span>strategy<span style=\"text-align: initial;font-size: 1em\"> for <\/span>rural<span style=\"text-align: initial;font-size: 1em\"> industrial enterprise:<\/span><\/p>\n<ul>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Harmonize Govt. efforts<\/strong><span style=\"text-align: initial;font-size: 1em\">: Government should synchronize its initiatives with some NGO\u201fs or the agencies working for the rural development so that policies can be implemented in a perfect order for the rural growth.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Technology development<\/strong><span style=\"text-align: initial;font-size: 1em\">: Provisions should be made to provide the rural population with the latest technologies so that rapid development can <\/span>takes<span style=\"text-align: initial;font-size: 1em\"> place.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Basic training for prospective rural entrepreneurs<\/strong><span style=\"text-align: initial;font-size: 1em\">: Prospective entrepreneurs must be identified and basic training should be provided. They should be motivated by telling the success stories of the different entrepreneurs.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Skill enhancement training programs<\/strong><span style=\"text-align: initial;font-size: 1em\">: Such training programs should be provided to the rural population so that skilled workers can be available for the rural industries.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Modern infrastructure facilities<\/strong><span style=\"text-align: initial;font-size: 1em\">: It is necessary to create modern infrastructural facilities in <\/span>the rural<span style=\"text-align: initial;font-size: 1em\"> areas so that entrepreneurs can be attracted.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Credit supply<\/strong><span style=\"text-align: initial;font-size: 1em\">: banking and <\/span>non banking<span style=\"text-align: initial;font-size: 1em\"> agencies should provide the funds at cheaper credit and at short terms and conditions.<\/span><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Co-ordination between small and large industries<\/strong><span style=\"text-align: initial;font-size: 1em\">: collaborations should be encouraged between small and large scale industries so that cheaper products made by small industries can be marketed at <\/span>large<span style=\"text-align: initial;font-size: 1em\"> scale.<\/span><\/li>\n<\/ul>\n<\/div>\n<div>\n<p><strong>\u00a0 \u00a0 9.\u00a0 <\/strong><strong>Role of NGO in Development of Rural Entrepreneurship<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Rural entrepreneurship is one of the most important factors for the rural development to remove the problem of unemployment and poverty. Therefore, it is the need of the hour. Government has taken many initiatives for the rural development and started various self employment and poverty alleviation programmes like Pradhana Mantri Rozgar Yojna, IRDP, TRYSEM etc. but proved ineffective due to the improper execution of the programmes. For the rural development, one has to be at the grassroots to identify the problems and then find the solutions and this can be done only when one is in the contact of the rural population. Such a situation necessitated the need of the NGO\u201fs to join hands with the Government and find the problems and thus helps in the execution of the programmes implemented by the government. Government therefore collaborated with the NGO\u201fs to reach the actual problems of the rural population.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Today we have large number of the NGO\u201fs working for the rural entrepreneurship. The main NGO\u201fs are: National Alliance of Young Entrepreneurs (NAYE), World Assembly of Small and Medium Entrepreneurs (WASME), Xavier institute for Social Studies (XISS), SEWA of Ahmedabad, \u201eY\u201f Self-Employment of Calcutta, AWAKE (Association of Women Entrepreneurs of Karnataka), and Rural Development and Self-Employment Training Institute (RUDSETIs) based in Karnataka:<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"text-align: initial;font-size: 1em\">NGO\u201fs functioning for the rural entrepreneurship can be classified into three types:<\/span><\/p>\n<p><span style=\"font-size: 1em;text-align: initial\">1. Primary level NGO\u201fs<\/span><\/p>\n<p><span style=\"text-align: initial;font-size: 1em\">2.\u00a0 Secondary Level NGO\u201fs<\/span><\/p>\n<p><span style=\"text-align: initial;font-size: 1em\">3.\u00a0 Grass root level NGO\u201fs<\/span><strong style=\"text-align: initial;font-size: 1em\">.<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: justify;font-size: 1em\">1.\u00a0<\/strong><strong style=\"text-align: justify;font-size: 1em\">Primary Level NGO\u2019s: <\/strong><span style=\"text-align: justify;font-size: 1em\">These are the NGO\u201fs who assemble their own resources and implement developmental activities on their own and works at <\/span>international<span style=\"text-align: justify;font-size: 1em\"> level. <\/span><strong style=\"text-align: justify;font-size: 1em\">Example:<\/strong> ACTIONAID<span style=\"text-align: justify;font-size: 1em\">, OXFAM, Christian Children Fund, etc. are some of the best examples of primary level NGOs in India.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">2.\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Intermediate NGO\u2019s: <\/strong><span style=\"text-align: initial;font-size: 1em\">These are the NGO\u201fs who arrange funds from the external agencies and impart training and conduct workshops for the target group. <\/span><strong style=\"text-align: initial;font-size: 1em\">Example:<\/strong><span style=\"text-align: initial;font-size: 1em\"> SEWA and AWAKE are examples of intermediate NGOs<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">3.\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Grass Root Level NGO\u2019s: <\/strong><span style=\"text-align: initial;font-size: 1em\">These are the NGO\u201fs who make direct contact with the target group and work at the grass root level. <\/span><strong style=\"text-align: initial;font-size: 1em\">Example:<\/strong><span style=\"text-align: initial;font-size: 1em\"> Such NGO\u201fs are RUDSETIs, ANARDE Foundation (Gujarat), Indian Institute of Youth Welfare (IIYW) of Maharashtra etc.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The training imparted to the rural population can be divided into three types:<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">1.\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Stimulation: <\/strong><span style=\"text-align: initial;font-size: 1em\">Conducting workshops and <\/span>trainings<span style=\"text-align: initial;font-size: 1em\"> for the rural population to stimulate the entrepreneurial attitude amongst them.<\/span><\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">2.\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Counselling: <\/strong><span style=\"text-align: initial;font-size: 1em\">Providing counseling and consultancy services to the rural entrepreneurs regarding Project analysis, selection of an idea, preparation of business plan etc.<\/span><\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">3.\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Assistance: <\/strong><span style=\"text-align: initial;font-size: 1em\">Providing help to the target group in financial support and providing <\/span>market<span style=\"text-align: initial;font-size: 1em\"> for their products.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The NGOs can prove to be a boon for rural entrepreneurship due to following reasons:<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">a. NGO\u201fs works at the <\/span>grassroot<span style=\"text-align: initial;font-size: 1em\"> level so they are near to the rural population which helps in understanding them well.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">b. their experiments with the community can <\/span>helps<span style=\"text-align: initial;font-size: 1em\"> in developing policies.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">c. working of the NGO\u201f<\/span>s is<span style=\"text-align: initial;font-size: 1em\"> flexible so they help in <\/span>formulate<span style=\"text-align: initial;font-size: 1em\"> appropriate solutions and can tailor to meet the individual needs<\/span>.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">d. NGO\u201fs concerns with the rural poor, so can reach <\/span>at<span style=\"text-align: initial;font-size: 1em\"> the remote locations, where it is not possible for the government to reach.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">e. Due to their flexibility, they have the capability to innovate and adapt using technology transfer and settle them according to the local conditions.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">NGOs also suffer from certain weaknesses as <\/span>following<span style=\"text-align: initial;font-size: 1em\">:<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"font-size: 1em;text-align: initial\">a. NGO\u201fs prime job is to work for the social development of the community. So, there can be role conflict.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">b. NGO\u201fs have limited capacities, therefore <\/span>there<span style=\"text-align: initial;font-size: 1em\"> projects are limited in area.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">c. They are dependent on other agencies for funds. Therefore, donor pressure may create problems.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">d. The NGO\u201fs structures are becoming bureaucratic in nature leading to the reduced efficiency in the overall development.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">In spite of the weaknesses, the role of NGOs in entrepreneurship development cannot be undermined. There is <\/span>large<span style=\"text-align: initial;font-size: 1em\"> number of <\/span>Evidences<span style=\"text-align: initial;font-size: 1em\"> which shows that NGOs in India have succeeded largely in imparting entrepreneurial skills among the weaker sections of the society.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">11. Summary<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Rural area has a wide potential which can be harnessed by developing appropriate strategies for the rural entrepreneurship. Rural entrepreneurship has incredible opportunities but due to lack of infrastructure and awareness people don\u201ft prefer rural entrepreneurship. Moreover, the glamour of urban life has so widened that people prefer to migrate to urban areas then starting <\/span>enterprise<span style=\"text-align: initial;font-size: 1em\"> in rural areas. Coordinated efforts of Government along with various agencies <\/span>are requires<span style=\"text-align: initial;font-size: 1em\"> to achieve the goal. Therefore, Rural entrepreneurship will help in developing the rural area by employment and income generation and thus developing the economy.<\/span><\/p>\n<\/div>\n<div>\n<p>&nbsp;<\/p>\n<p><strong><span style=\"text-align: initial;font-size: 1em\">WEBLINKS:<\/span><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><a style=\"text-align: justify;font-size: 1em\" href=\"http:\/\/www.ijarcsms.com\/docs\/paper\/volume1\/issue2\/V1I2-0003.pdf\">http:\/\/www.ijarcsms.com\/docs\/paper\/volume1\/issue2\/V1I2-0003.pdf<\/a><\/p>\n<p>&nbsp;<\/p>\n<p><a style=\"text-align: justify;font-size: 1em\" href=\"http:\/\/www.fao.org\/docrep\/w6882e\/w6882e02.htm\">http:\/\/www.fao.org\/docrep\/w6882e\/w6882e02.htm<\/a><\/p>\n<p>&nbsp;<\/p>\n<p><a style=\"text-align: justify;font-size: 1em\" href=\"http:\/\/www.publishyourarticles.net\/eng\/articles2\/role-and-importance-of-rural-entrepreneurs-in-india\/2722\/\">http:\/\/www.publishyourarticles.net\/eng\/articles2\/role-and-importance-of-rural-entrepreneurs-in-<\/a><a style=\"text-align: justify;font-size: 1em\" href=\"http:\/\/www.publishyourarticles.net\/eng\/articles2\/role-and-importance-of-rural-entrepreneurs-in-india\/2722\/\">india\/2722\/<\/a><\/p>\n<p>&nbsp;<\/p>\n<p><a style=\"text-align: justify;font-size: 1em\" href=\"http:\/\/www.preservearticles.com\/201101143355\/importance-of-rural-entrepreneurs.html\">http:\/\/www.preservearticles.com\/201101143355\/importance-of-rural-entrepreneurs.html<\/a><\/p>\n<p>&nbsp;<\/p>\n<p><a style=\"text-align: justify;font-size: 1em\" href=\"http:\/\/www.journal.bonfring.org\/papers\/iems\/volume1\/BIJIEMS-01-1004.pdf\">http:\/\/www.journal.bonfring.org\/papers\/iems\/volume1\/BIJIEMS-01-1004.pdf<\/a><\/p>\n<\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"author":3,"menu_order":8,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":["shivani-mahajan"],"pb_section_license":""},"chapter-type":[],"contributor":[59],"license":[],"class_list":["post-68","chapter","type-chapter","status-publish","hentry","contributor-shivani-mahajan"],"part":3,"_links":{"self":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp09\/wp-json\/pressbooks\/v2\/chapters\/68","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp09\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp09\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp09\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":4,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp09\/wp-json\/pressbooks\/v2\/chapters\/68\/revisions"}],"predecessor-version":[{"id":290,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp09\/wp-json\/pressbooks\/v2\/chapters\/68\/revisions\/290"}],"part":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp09\/wp-json\/pressbooks\/v2\/parts\/3"}],"metadata":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp09\/wp-json\/pressbooks\/v2\/chapters\/68\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp09\/wp-json\/wp\/v2\/media?parent=68"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp09\/wp-json\/pressbooks\/v2\/chapter-type?post=68"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp09\/wp-json\/wp\/v2\/contributor?post=68"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp09\/wp-json\/wp\/v2\/license?post=68"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}