1. Rural Entrepreneurship T.Y.B.Com
Prof. Arjun B. Bhagwat
S. M. Joshi College, Hadapsar, Pune-28
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2. 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
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3. 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.
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4. 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 /-
With or without the use of power and
In which the fixed capital investment per head of a worker does
not exceed 1000 rupees”.
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5. 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”.
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6. Problems of Rural Entrepreneurship in Agricultural Sector and village Industry
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7. 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
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8. 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
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9. 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
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10. 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
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11. 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
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12. 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
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13. 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
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14. 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
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15. 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
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16. Thank You
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