Business Knowledge

In any village that you visit you would find petty shops. Shop owners get groceries from the nearby towns and supply to the villagers. As you go further into the village you will find potters who make pots and sells to the villagers. You also find barbers and dhobis who provide their services for a cost. Though each of them does different activity all are doing business. Any product that one produces or trades for a profit is business. In other words exchange of a product or services for a price is business.

By doing business one gets profits (badly managed business can run into losses too), which helps run the house or lead a living. The activity that provides an income for leading one’s life is called livelihood. Tough there are several livelihoods and professions in the villages poverty still reigns. The reason is in all the activities practiced by them there is no change and more importantly they lack business knowledge. A potter cannot maintain or increase his profits making the same pots generation after generation. But a potter can make desired profits by making improvised pottery (different kinds) with reduced cost and effort. In the present day context the entrepreneur should identify the consumers’ needs or even further should create a need and make amends in their products or services according to the changing trends.

Bringing in such timely improvisations is becoming difficult for the poor and the illiterate rural people because of their low exposure to the changing trends, lesser access to information, technology and lack of business dynamics etc. Hence, it becomes pertinent and extremely important to provide the business inputs before implementing any livelihood development programme. It then brings into focus the importance of understanding the characteristic features of the entrepreneurs, without which the livelihood development programme would become a ropewalk. It is also important to bear in mind that facilitator should facilitate the process and create participation from them right from identification of the activity to its launching, grounding and management.

The ‘Risk Analysis’:

No Risk 4 elements are accessible (raw material, skill, market and support services)

Low Risk 3 elements are accessible (out of raw material, skill, market and support services)

Moderate Risk 2 elements are accessible (out of raw material, skill, market

and support services)

High Risk 1 element is accessible (out of raw material, skill, market and support services)

1. Exposure to market: Information on market, understanding of the local market and dealing with the critical players in the market are integral parts of an enterprise. However, the key element of this factor is that it is not under one’s control and rather it is the market that plays a critical role and controls the activity.

Dr surendra rao 9866249585 mr franklin executive associate