Asia Pacific Journal of Research ISSN (Print) : 2320-5504

ISSN (Online) : 2347-4793

www.apjor.com Vol: I. Issue XLI, July 2016

33

OPPORTUNITIES AND CHALLENGES OF RURAL ENTREPRENEURSHIP IN INDIA

Dr. G.JAYABAL

Professor & Head, Dept of Bank Management, Alagappa University, Karaikudi.

Ms. M.SOUNDARYA

M.phil Scholar, Dept of Bank Management, Alagappa University, Karaikudi.

ABSTRACT

Entrepreneurship is an important engine of growth in the economy. Rural entrepreneurship has an important role to play in the

development of Indian economy. Rural entrepreneurship is now a days a major opportunity for the people who migrate from rural

areas or semi - urban areas to Urban areas. On the contrary it is also a fact that the majority of rural entrepreneurs is facing many

problems due to not availability of primary amenities in rural areas of developing country like India. Lack of education, financial

problems, insufficient technical and conceptual ability it is too difficult for the rural entrepreneurs to establish industries in the rural

areas. The present paper focuses on opportunities and challenges of rural entrepreneurship in India.

KEYWORDS:

Rural Entrepreneurship, Economy, Developing Country, Rural Areas.

INTRODUCTION:

India is a country of villages. About three-fourth of India's population are living in rural areas out of which 75% of the labour force is

still earning its livelihood from agriculture and its allied activities. Land being limited is unable to absorb the labour force in

agriculture. Therefore, there is a need to develop rural industries to solve rural unemployment and rural migration to cities. Growth

and development of rural economy is an essential pre-condition to development of the nation as a whole. The gap between rural urban

disparities should be lessened.

The standard of living of the rural people should be increased. Entrepreneurship in rural sector provides an answer to the above

problems. Indian rural sector is no longer primitive and isolated. Therefore, entrepreneurship in the rural and tribal areas looms large

to solve the problems of poverty, unemployment and backwardness of Indian economy. Rural industrialisation is viewed as an

effective means of accelerating the process of rural development. Government of India has been continuously assigning increasing

importance and support for the promotion and growth of rural entrepreneurship.

DEFINITION :

“Rural Entrepreneurship can be defined as entrepreneurship emerging at village level which can take place in a variety of fields of

Endeavour such as business, industry, agriculture and acts as a potent factor for economic development”.

Asia Pacific Journal of Research ISSN (Print) : 2320-5504

ISSN (Online) : 2347-4793

www.apjor.com Vol: I. Issue XLI, July 2016

34

OBJECTIVE:

To Generate new business and employment opportunities

To Analyse the challenges faced in growth of rural entrepreneurs in india.

To know the importance of rural entrepreneurship in india.

IMPORTANCE OF RURAL ENTREPRENUETSHIP IN INDIA:

Rural entrepreneurs play a vital role in the overall economic development of the country. The growth and development of rural industries facilitate self employment, results in wider dispersal of economic and industrial activities and helps in the maximum utilisation of locally available raw materials and labour. Followding are some of the important role which rural industries play in ameliorating the socio-economic conditions of the rural people in particular and the country in general.

1.Proper utilisation of local resources:

Rural industries help in the proper utilisation of local resources like raw materials and labour for productive purposes and thus

increases productivity. They can also mobilise rural savings which help in increase of rural funds.

2.Employment generation:

Rural industries create large-scale employment opportunities for the rural people. The basic problem of large-scale unemployment and

underemployment of rural India can be effectively tackled through rural industrialisation.

3.Prevents rural exodus:

Lack of employment opportunities, heavy population pressure and poverty forced the rural people to move to urban areas for

livelihood. It creates rural urban imbalance. Under these circumstances, rural industries help in reducing disparities in income between

rural and urban people and acts as a potential source of gainful employment. This prevents rural people to migrate to urban areas.

4.Fosters economic development:

Rural industrialization fosters economic development of rural areas. This curbs rural urban migration on the one hand and also reduces

disproportionate growth of towns and cities, growth of slums, social tensions and environmental pollutions etc. on the other.

5.Earnings of foreign exchange:

Rural industries play an important role in increasing the foreign exchange earnings of the country through export of their produce.

6.Producers goods of consumers' choice:

Rural industries including village and cottage industries produce goods of individual consumers' choice and taste. Jewellery, sarees,

artistic products are produced to cater to the needs of different consumers according to their taste, design and choice.

7.Entrepreneurial development:

Rural industries promote entrepreneurial development in the rural sector. It encourages young and promising entrepreneurs to develop

and carry out entrepreneurial activities in the rural sector which finally facilitate the development of the rural areas

Asia Pacific Journal of Research ISSN (Print) : 2320-5504

ISSN (Online) : 2347-4793

www.apjor.com Vol: I. Issue XLI, July 2016

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ROLE OF RURAL ENTREPRENUERS IN INDIA:

Provide employment opportunities

Check on migration of rural population

Balanced regional growth

Promotion of artistic activities

Check on social evils

Awaken the rural youth

Improved standard of living

NECCESSITY OF RURAL ENTREPRENUERS IN INDIA:

The need for and growth of rural industries has become essential in a country like India because of the following reasons:

1. Rural industries generate large-scale employment opportunities in the rural sector as most of the rural industries are labor

intensive.

2. Rural industries are capable of checking rural urban migration by developing more and more rural industries.

3. Rural industries/entrepreneurship help to improve the per capital income of rural people thereby reduces the gaps and

disparities in income of rural and urban people.

4. Rural entrepreneurship controls concentration of industry in cities and thereby promotes balanced regional growth in the

economy.

5. Rural entrepreneurship facilitates the development of roads, street lighting, drinking water etc. in the rural sector due to their

accessibility to the main market.

6. Rural entrepreneurship can reduce poverty, growth of slums, pollution in cities and ignorance of inhabitants.

7. Rural entrepreneurship creates an avenue for rural educated youth to promote it as a career.

OPPORTUNITIES :

Free entry into world trade.

Improved risk taking ability.

Agro Based Industries

Forest Based

Industries

Mineral based industry

Textile Industry

TYPES OF RURAL

ENTREPRENUER

S

Asia Pacific Journal of Research ISSN (Print) : 2320-5504

ISSN (Online) : 2347-4793

www.apjor.com Vol: I. Issue XLI, July 2016

36

Governments of nations withdrawn some restrictions

Technology and inventions spread into the world.

Encouragement to innovations and inventions.

Promotion of healthy completions among nations

Consideration increase in government assistance for international trade.

The establishment of other national and international institutes to support business among the nations of the world.

Benefits of specialization.

Social and cultural development

CONCLUSION:

Rural Entrepreneurship plays an important role for economic development in developing countries such as that of India. It is evident

from the study that rural entreprenuers are ready to face the challenges associated with setting up of business. Therefore, the rural

entrepreneurs need to be motivated to take up entrepreneurship as a career, with training and sustaining support systems providing all

necessary assistance.

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