Rural industries include wood products, coir industry,

Rural entrepreneurship implies entrepreneurship
emerging in rural areas. In other words establishing industries in rural areas
refers to rural entrepreneurship. Rural entrepreneurship is a process which
introduces new things in the economy. Rural entrepreneurship is the attempt to
create value through recognition of business opportunity, the management of risk-taking
appropriate to the opportunity, and through the communicative and management
skills to mobilize human, financial and material resources necessary to bring a
project to fruition in rural areas. Rural entrepreneurship stands as a vehicle
to improve the quality of life for individuals, families and communities and to
sustain a healthy economy and environment. The majority of the rural population
depends, directly and indirectly, on agriculture, fishery, animal husbandry or
rural wage labour associated with plantations and ranches. Rural
entrepreneurship development strategies aim at diversifying rural economic
activities, which include the development of non-farm economic activities and
facilitating the transition of informal activities into the formal growth
sector.

 

Types of Rural Entrepreneurship in
India

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Rural industry or village industry can be broadly
classified into the following categories:

1. Agro Based
Enterprises- This category includes
direct sale or processing of agro products such as jiggery, pickles, sugar
industries, oil processing from oil seeds, dairy products, fruit juice, spices etc.

2. Forest Based
Industries- These industries
include wood products, coir industry, beedi making, honey making, bamboo
products, etc.

3. Mineral Based
Industry- These include stone
crushing, cement industries, wall coating powders etc.

4. Textile
Industry- These include weaving,
colouring, spinning and bleaching.

5. Handicrafts- These include making of wooden or bamboo handicrafts
that are local to that area, traditional decorative products, toys and all
other forms of handicrafts typical to the region.

6. Engineering
and services- These include
agricultural equipment’s, tractors and pump sets, repairs etc.

 

 

Roles of Rural Entrepreneurs in
Economic Development

Rural entrepreneurs play a vital role in the overall
economic development of the country. The entrepreneurs with their ability to
scan, analyse and identify opportunities in the environment transform them into
business proposition through creation of economic entities. 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. Rural Entrepreneurs play a vital
role for the economic development of a country in the following ways.

1. Formation of
Capital- Entrepreneurs by
placing profitable business proposition attract investment to ensure private participation in the industrialization
process. The otherwise idle savings
are channelized for investment in business ventures which in turn provides
return. Again the savings are
invested giving a multiplier effect to the process of capital formation.

2. Balanced
Regional Development- Rural entrepreneurship
can facilitate the concentration of industrial units in urban areas and promote
regional development in a balanced manner.

3. Provide
employment opportunities- Rural
entrepreneurship is labour intensive and provide a clear solution to the
growing problem of unemployment. Development of industrial units in rural areas
through rural entrepreneurship has high potential for employment generation and
income creation.

4. Improvement
in Standard of Living- Rural entrepreneurship
will also increase the literacy rate of the rural population. Employment
generation leads to increase in income and purchasing power which is spent on consumption expenditure. Increased demand
for goods and services boost up industrial
activity. Large scale production
will result in economies of scale and low cost of production. Modern concept of marketing involves creating a demand
and then filling it. New innovative
and varying quality products at most competitive prices making common man’s
life smoother, easier and
comfortable are the contribution of entrepreneurial initiative.

5. Increase in
per Capita Income- Rural
entrepreneurship generates more output, employment and wealth by exploiting new
opportunities, Entrepreneurs convert
the latent and idle resources like land, labour and capital into goods and
services resulting in increase in
the national income and wealth of a nation.
The increase in national income is the indication of increase in net
national product and per capita income of the country.

6. National
Self-reliance- Entrepreneurs
are the corner stores of national self-reliance. They help to manufacture
indigenous substitutes to imported
products which reduce the dependence on foreign countries. There is also a possibility of exporting goods and services to
earn foreign exchange for the country. Hence, the import substitution and export promotion ensure economic
independence and the country becomes self-reliance.

7. Planned
Production- Entrepreneurs are
considered as economic agents since they unite all means of production. All the
factors of production i.e., land, labour, Capital and enterprise are brought
together to get the desired production. This will help to make use all the
factors of production with proper judgment, perseverance and knowledge of the
world of business. The least combination of factors is possible avoiding
unnecessary wastages of resources.

8. Equitable
Distribution Economic Power- Economic
power is the natural outcome of industrial
and business activity. Industrial development may lead to concentration of
economic power in few hands which
results in the growth of monopolies. The
increasing number of entrepreneurs helps in dispersal of economic power into
the hands of many efficient managers
of new enterprises. Hence setting up of a large number of enterprises helps in
weakening the evil effects of
monopolies. Thus, the entrepreneurs
are key to the creation of new enterprises that energies the economy and rejuvenate the established enterprises
that make up the economic structure.