Rural Entrepreneurship T.Y.B.Com Prof. Arjun B. Bhagwat S. M. Joshi College, Hadapsar, Pune-28 T.Y.B.Com

Introduction India is described as a country of villages A large portion of population still lives in villages Rural entrepreneurship & industry played vital role in economy The entrepreneurship in rural areas related to craftsman & artisan It raises per capita income & living standard of rural people Rural industries can provide work opportunities to people This concept can prevent migration of rural people to urban area Generation of direct & indirect employment in rural areas Reduction in the pressure and dependence on agriculture Assistance in decentralization of economic power Balanced regional development T.Y.B.Com

Introduction “Poor of the World can’t be helped by mass production but only by production by masses” ------ Mahatma Gandhi Over 70% of Indians live in rural areas Over 75 % of rural labour force still earns its livelihood from agriculture and its allied activities. Thus, there is a need to develop RURAL INDUSTRIALISATION. T.Y.B.Com

Definitions According to Khadi and Village Industries Commission (KVIC) “Village Industry or a rural industry means…….. Industry located in rural areas Population of which doesn’t exceed 10000 Which produces any goods or renders any services With per capita fixed investment of Rs. 15000/- With or without the use of power and In which the fixed capital investment per head of a worker does not exceed 1000 rupees”. T.Y.B.Com

Definitions According to Reserve Bank of India (RBI) Village Industry or a rural industry means…….. “Village industry as Artisans or small industrial activities in village and small towns with a population not exceeding 50,000 involving natural resources and human skills”. T.Y.B.Com

Problems of Rural Entrepreneurship in Agricultural Sector and village Industry T.Y.B.Com

1. Insufficient Financial Resources Non availability of credit facility due to eco position Non availability of initial capital or future expansion Misutilization of Bank’s fund in several areas Financial banks take long time to dispose off loan application Due to the defective identification of beneficiaries (Bank scheme) Wrong design of scheme & lack of knowledge about scheme T.Y.B.Com

2. Problems Relating to Raw Materials Irregular supply of raw materials Insufficient quantity of raw material Non availability of raw material at reasonable prize 70% cost of raw material in respect of finished product Purchase the raw material in open markets at high prize The raw material predominantly supplied to big company High cost of raw material and uncertain quantity of raw material T.Y.B.Com

3. Labour Problems Rural industry mostly are in form of household activity The workers employed such units are family members Lack of skilled labour Lack of training Superstition and orthodox thinking Low productivity and low commitment T.Y.B.Com

4. Marketing Problems Rural entrepreneurs sell their products in local market The proper marketing channel is absent These products very rarely reach the urban market Lack of finish precision and modern design Cannot stand on the competition of large industry Lack of market research ands cost consciousness Cannot attract choosy urban customers Do not have a marketing strategy and modern outlook T.Y.B.Com

5. Transportation & Storage Problems Problems of storage of inputs & outputs They do not have big space Cant store the raw material & Finished product Cant maintain the big stock of finished product That’s why depend upon middlemen A big enterprise can make annual fright contract with transport co. They can purchase their own truck & arrange separately T.Y.B.Com

6. Technology Problems Rural entrepreneurs are mostly labour intensive Use of traditional & old technology Lack of technical knowledge Lack of financial help for bringing the equipments Use of old, primitive, outdated tools, equipments & work method Productivity is very low T.Y.B.Com

7. Personal Problems Traditional business environment Lack of family & socially support Burden on business choice Lack of technical knowledge Quality of education Lack of Communication Facilities Lack of Quality Management Lack of motivation T.Y.B.Com

8. Agricultural Problems Non cultivable land Quality of seeds, fertilizers & irrigation Lack of marketing knowledge Traditional production technique Fake government scheme Credit facilities Lack of management skills T.Y.B.Com

9. Other Problems Lack of Basic Needs & Infrastructural Facilities Non supportive attitude of financial institutions Lack of Ware-Housing Facilities Rigidity of rules while providing of loans Poor government scheme T.Y.B.Com

Thank You T.Y.B.Com