Presented bySimran KaurMBA 2nd yearIGICM

Rural Business in India

Business is an economic activity involving regular production or purchase and distribution of goods and services with the object of earning profit

Rural businesses are those firms that are established and operate in rural settings, far from the metropolitan areas that have traditionally been the site of most non-agricultural business enterprises

Rural Business

SizeSectoral mixInnovation performanceInadequate resourcesCompetitive environmentLimited information accessManagement of natural resourcesHigh operation cost

Features of Rural Business

Agro-based businessForest-based businessMineral-based businessTraditional businessDairy businessRenewable energy business

Types of Rural Business

Utilize the idle capitalUtilize the local resourcesAvoid migration of rural populationPromotion of artistic activitiesEncourage rural youthEquitable distribution of incomeStandard of livingProvide employment opportunitiesBalanced regional growthCheck on social evils

Importance of Rural Business

FINANCIAL PROBLEMSPaucity of fundsLack of infrastructural facilitiesRisk elementMARKETING PROBLEMSCompetitionCommunicationMiddlemen

Problems of Rural Business

MANAGEMENT PROBLEMSLack of knowledge of ITProcurement of raw materialPoor quality of productsHUMAN RESOURCES PROBLEMS

Problems of Rural Business(contd.)

Associated society, cooperative, union, federation or even a firm

Promote interests of farmersOwned and controlled by their membersGive farmers a political voiceTwo categories of economic functions: 1)integrated

forward by processing/marketing farm products 2) integrated backwards by purchasing/producing farm inputs

Rural Producer Organization(RPO)

Information needsImproved contract farmingMultipurpose organizationVertical coordinationProfessionalizationControlling institutional environment

Needs of RPO

Enabling business environmentAdequate mechanisms, processes and structuresEffective infrastructureAccess to integrated and open marketsFinancial needs

Needs of Rural Enterprises

Financial needTechnical needInfrastructure needAdministrative need

Needs of Rural Projects

Primary health facilitiesEducationProper sanitationNutrition, water and housingInformationRoad and transportation

Needs of Rural People

Analyses threats and opportunities of rural marketAdopt strategies for changing requirements2 sections of rural population: large portion have a

low income and low consumption levels; and the rest are rural rich

Rural Marketing Environment

PopulationOccupation patternsInfrastructure facilitiesLand distributionRural retail outletsRural area requirements

Elements of Rural Marketing Environment

Income generationRural credit institutionsPrint media in rural areasLiteracy levelExpenditure patternLocation of rural population

Elements of Rural Marketing Environment (contd.)

Social environmentEconomic environmentDemographic environmentPhysical environmentPolitical environmentTechnological environment

Factors affecting Rural Marketing Environment

Knowledge of marketing environment is central to marketing management

Spotting opportunities and threatsStrategic response to environment is possible only

with proper environment analysisTask involved in marketing environment analysis

Significance of analyzing Rural Marketing Environment

Society living in village and dependent on natural environment

Rich in culture and traditionEconomy rests on agriculture and allied activitiesSocio-economically less developed

Rural Social Scenario

ReligionCentral mobilityCaste systemInstitution of marriageVillage unityInternal organizationJoint family systemOccupational structure

Features of Structure Dynamics of Rural Society

Characterized by Jajmani systemConceptualize agrarian social structure in

framework of exchange relationsServicing castes such as priest, barber, and

washerman and water carrier cater to needs of everyone except Harijans

Paid annually in grain at harvest timeJajmani in North, bara batute in Maharashtra, mirasi

in Tamil Nadu, adade in Karnataka

Rural society in India in pre-independence period

Community development programme in 1952In 1959, Panchayati Raj startedIn 1979, Integrated Rural Development ProgrammeNature of property relations negatively to physical

labour on landProcess of planned development has

transformations in rural societyGreen revolution started

Changes of rural society in India in post-independence period

Market focused agrarian sectorAdoption of improved tools and techniquesAppearance of power blockGovernment interventionEffect of new intermediaries on politics

Trends of rural transformation post-independence

Based upon perseverance of certain old traditional values

Panchayat and Village Pradhan/Sarpanch represented rural India historically

Three-tier structure of local government in rural areas at village, mandal and district levels

Reserved representation is available for SC/ST

Rural political scenario

Administrative set-up and decentralization of power Role and importance of political parties in rural

societyLocal village politics

Features of structure dynamics of rural politics

ANCIENT AND MEDIEVAL PERIODAncient period: self-government functioned in self-

sufficient villagesComprised village assembly and its standing

committeeBasic functional and administrative autonomy

continued to be its distinctive characteristicsFeudalistic system of governments during medieval

period

Rural politics in India in pre-independence period

BRITISH PERIODAdministrative foothold in Bengal during 1765About mid-forties, East India Company ruledHighly centralized bureaucratic system of

administrationIn 19th century, rudimentary type of municipal bodies

began to be established

Rural politics in India in pre-independence period(contd.)

Changes in relationship between rural people and state-led politics

Successful implementation of PRIs(Panchayati Raj Institutions)

Reservation for SC/ST and womenAttention to both panchayat and party as two

institutions of political power

Changes of rural polity in India in post-independence period

Amendments in Panchayati rajGram sabhaRe-organized Panchayat systemWomen empowerment

Changes of rural polity in India in post-independence period

THANK YOU!!!