Rural entrepreneurship refers to business activities started by individuals living in rural areas. Traditionally, rural entrepreneurs engaged in occupations like carpentry, blacksmithing, and operating small shops. Government schemes like TRYSEM and DWCRA provided training and loans to encourage rural youth and women to start small businesses. Some challenges rural entrepreneurs face include lack of skills, capital, infrastructure and access to markets. However, opportunities exist in areas like repair services, small manufacturing, retail shops, and other village-level enterprises.
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Rural entrepreneurship refers to business activities started by individuals living in rural areas. Traditionally, rural entrepreneurs engaged in occupations like carpentry, blacksmithing, and operating small shops. Government schemes like TRYSEM and DWCRA provided training and loans to encourage rural youth and women to start small businesses. Some challenges rural entrepreneurs face include lack of skills, capital, infrastructure and access to markets. However, opportunities exist in areas like repair services, small manufacturing, retail shops, and other village-level enterprises.
Rural entrepreneurship refers to business activities started by individuals living in rural areas. Traditionally, rural entrepreneurs engaged in occupations like carpentry, blacksmithing, and operating small shops. Government schemes like TRYSEM and DWCRA provided training and loans to encourage rural youth and women to start small businesses. Some challenges rural entrepreneurs face include lack of skills, capital, infrastructure and access to markets. However, opportunities exist in areas like repair services, small manufacturing, retail shops, and other village-level enterprises.
Copyright:
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Download as PPT, PDF, TXT or read online from Scribd
Rural entrepreneurship refers to business activities started by individuals living in rural areas. Traditionally, rural entrepreneurs engaged in occupations like carpentry, blacksmithing, and operating small shops. Government schemes like TRYSEM and DWCRA provided training and loans to encourage rural youth and women to start small businesses. Some challenges rural entrepreneurs face include lack of skills, capital, infrastructure and access to markets. However, opportunities exist in areas like repair services, small manufacturing, retail shops, and other village-level enterprises.
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RURAL ENTREPRENEURSHIP
• Definition of Entrepreneur:( Rural Enterprise)
• An Entrepreneur is one who organizes, Manages, and assumes the risks of a business or an Enterprise. (As per Webster Dictionary) • Entrepreneurship means – The process leading to the creation and running of any new business regardless of its size, product, service, potential or form of ownership. • A business person who plans, owns, organizes and manages a concern and bears risks in expectation of good earnings is termed as an Entrepreneur. • The word entrepreneur as per BBC English Dictionary (1993), refers to “a person who sets up business.” • RURAL ENTREPRENEUR: • A Rural Entrepreneur is one who lives in Rural Area and starts an economic activity in Rural Area which will generate income for him and his family. • Traditionally, the person in village who were doing Carpentry, Blacksmithy, Cobbler, shoe-maker, Weavers, Floor mill,Tailoring, Basket and Rassi maker, Bricks manufacturer, Earthen Pottery (Kumhar), Cloth merchants, Grocery Shop-keeper, General Stores ,Tea stall ,Restaurent, were all Rural Entrepreneurs. Rural Area means where the majority of the population is engaged in Agricultural activities and some others are engaged in Allied to Agriculture and Non-Agricultural activities. The persons who were engaged • in Non-Agricultural Activities were known as Business people to whom today we may call as Rural Entrepreneurs. • The population in Rural area- for a village it was below 5,000 and for a big village or town/semi-rural area it was below 50,000. • These Entrepreneurs are utilizing local available human resources & skills, Raw- material with appropriate Technology. • Rural Business Entrepreneur is doing business with the help of his family members. Very few persons are engaged from outside as labour or helper/Salesmen • Cottage industry is another name of Rural Entrepreneurship. Most of the activities are Agro-based in Rural Area. Hence availability of raw material is never a problem for Rural Entrepreneur. • Majority of the population lives in villages, hence, there is never a problem for labour/semi- skilled workers. • Capital or Finance is usually raised by himself from friends & relatives in Rural Area or from Financing Agencies (Banks or Money-lenders). • Rural Industry: It includes the Cottage, village or household industries as well as SSI which is now known as MSME. • Rural Industry as small scale Industry, today is defined as an industry with a Capital Investment in Plant & Machinery up to Rs.1 Crore. MICRO, SMALL AND MEDIUM ENTERPRISES:(MSME): MSMED Act, 2006 have been enacted by the Government. In this Act investment Limit for Micro Enterprise is Rs. 10 lakh, For Small Enterprise it is Rs. 5 Crore and for Medium Enterprise it is Rs.10 Crore. In MSME, the concept of “Enterprise” has been used which means it comprises both Manufacturing and Services. • (i) Manufacturing Enterprises : • (a) Investment in Plant & Machinery in Micro Enterprises upto Rs. 25 lakh, • (b) In Small Enterprises – Investment above Rs.25 lakh and upto Rs.5 Crore, and • (c) In Medium Enterprises – investment above Rs.5 Crore has been permitted. (ii) Service Enterprises: Investment up to: (a) Micro Enterprises –Upto Rs.10 lakh (b) Small Enterprises- Above Rs.10 lakh and up to Rs.2 Crore (c) Medium Enterprises- • Above Rs.2 Crore and upto Rs. 5 Crore. SCHEMES FOR RURAL ENTREPRENEURSHIP • 1. Training of Rural Youth for Self- Employment ( TRYSEM): • (a) TRYSEM was started on 15th Aug.1979 • (b) Main objective was to impart Technical Training and Business expertise to those Rural Youth who belong to the families living Below Poverty Line (BPL). • (c) Self employment to Rural Youth of age group of 18-35 years according to their • Physical and mental abilities. • (d) This Training was given as per requirements of the Youth of Local Area. • (e) Training to Rural Women was also given under this Programme. • (f) 30% of Trainees will be from SC/ST. • (g) 1/3rd trainees would be Women. • (h) Ex-servicemen were also included. • 2. Under 6th Plan (1985-90) the target was to impart training to Minimum 2 lakh Rural Youth. (40 Youth per Block per year). • 3.Training was imparted at District level by Institutions like ITI, Polytechnic, Master Craftsman, Mater Trainers and skilled Artisans. (Tailoring, Carpentry, Black- smithy, Masonary work, Pottery making • Mechanics, Electricians, Plumber, cycle- repair/motor-cycle repair and Pump-set repair etc. were the activities). • 5. Stipend during Training period was also given to Youths. • 6. After training, Loan and subsidy was provided to start self-employment and self- dependent. (Investment Capital for Tools & Machines plus WC for Raw material was • Made available to Trained youth. • 7. The Central Govt. and State Govt. shared the expenses under the Scheme on a 50 : 50 basis. • 8. Scheme was administered by DRDA. BDO was given this task to identify trade and institutions and select the trainees. • 9. Target during 6th Plan period was to train 10.05 lakh Youth. Against this target 9.39 lakh youths were trained. In 7th Plan again 10 lakh youths were trained. 10. Banks – CB, RRBs, & DCCBs were to finance under the scheme on small project basis. (Investment Capital + WC). 11. Training in 60 trades was imparted as against 100 trades identified in the country to 37 lakh youth up to April, 1999. • Present Position of the Scheme: • This scheme is not in existence at present. Since April 1, 1999, TRYSEM has been merged with newly introduced programme named as SGSY (Swarna- Jayanti Gram Swarojgar Yojna). DWCRA • Development of Women and Child in Rural Areas: (DWCRA): • 1. This programme was started in Sept. 1982 as Sub-plan of IRDP. • 2. Objective of the scheme was to concentrate upon women members of target families for increasing their income and provide such facilities through which they could start their income. • 3. 10-15 women formed a group, each for taking up economic activities suited to their aptitudes and local conditions. To start economic activity, Govt. imparted Training and Financial assistance with loan facility from Banks. • 4. Now from April 1, 1999, this Scheme has been merged with SGSY and financing to women through SHG and • in other manner is being given for doing Economic Activities. • Activities includes :- • (i) Dairy Activity • (ii) Embroidery work • (iii) Massala Making (Grah Udyog) • (iv) Carpet/Galicha making • (v) Achar,& Murrabba making. • (vi) Basket making • (vii) Handicrafts, bags, wall hanging etc. • (viii) Tailoring & Embroidery work on Machine • (ix) Vermicompost preparation in village • Area for farmers. • (x) STD booth & Photo-copier Shop. • (xi) Selling Ready-made garments. • (xii) Soap, Candles, Agarbatti manufacturing. • (xiii) Grocery Shop in Village Area. • More than 6 lakh Women Groups under SHG has been formed and financed to the tune of Rs.1411 Crores (2007-08) has been given through SHG in India. • More than 85% SHGs consist of Women in India and their repayment of loan is also more than 80% in time. Majority of SHGs are located in Rural Area • Characteristics of an Entrepreneur:- • An Entrepreneur must be : • 1. Energetic. • 2. Hard-working • 3. Ambitious • 4. Self-confident • 5. Keen to assume responsibilities. • 6. Foresighted • 7. Single minded • 8. Good Tempered • 9. Eager to posses wealth.
• ENTREPRENEURIAL QUALITIES AND
SKILLS : • 1. Educated • 2. Intelligent • 3. Initiative • 4. Preparedness to accept Risk • 5. Good Judgment • 6. Firm Determination • 7. Emotional stability • 8. Knowledge of Market Trends • 9. Basic Technical knowledge. • 10. Ability to mobilize Resources. • 11. Good communication skills • 12. Dynamic Leadership • 13. Organizing Ability • 14. Quick at Decision taking • Success of Entrepreneurship will depend on Cooperation and support of the people who work for it, and they are as under: • 1. Employees • 2. Customers (good product/services) • 3. Dealers (distribution net work) • 4. Suppliers (raw materials suppliers) • 5. Investors • 6. Advertisements & Media (Publicity) • 7. Environment (Business conditions) • 8. Government policy (taxes etc.) • 9. Society (welfare of the consumers) PROBLEMS OF RURAL INDUSTRIES • 1. The Problem of Location
• 2. The problem of Raw Materials
• 3. The Problem of Skilled Labour
• 4. The Problem of Capital
• 5. The Problem of Entrepreneurship
• 6. The Problem of Industrial Sickness
• 7. The Problem of Technology
8. The Problem of Marketing
9. The Problem of Competition
10. The Problem of Organization
An Rural Entrepreneur can start any Business or Service activity in Rural Area for which the financial assistance is available from Banks. Following are few examples: 1. Photocopying Center 2. Photography & Videography 3. Setting-up of Cyber cafes 4. Computer Training/Service Center • 5. Auto repair, services and Garages • 6. Servicing of Electric and Electronic • Equipment or instruments • 7. Laundry and Dry cleaning • 8. Tailoring • 9. Repair of Tractor, Pump sets etc. • 10.STD/ISD Booths and Fax service • 11. Installation and operation of Cable TV • network • 12. Beauty parlours • 13. General Merchant Stores • 14. Storage facility and Cold Storage • 15. Pathological Laboratories • 16. Educational Services (Coaching • Centres) • 17. Hotels & Restaurents • 18. Advertizing Agencies • 19. Marketing consultancy • 20. Cement and products of Cement shop • 21. Iron & Steel Fabrication work • 22. Bread , Bakery shop • 23. Plastic goods • 24. Stationery and Book shop • 25. Courier Service • 26. Vermiculture • 27. Food, Fruits and Vegetables Process- • -ing, Refrigeration, and Transportation • 28. Insurance Service • 29. Telecommunication Service. • 30. Other feasible activities. • 11