importance of Rural entrepreneurship to encourage rural people to find new avenues and how to start up the business especially small enterprise

1. RURAL
ENTREPRENEURSHIP
V.Madhusudhan Goud
Assistant Professor
Department of Management Studies
GPCET, Kurnool

2. 11/23/2015
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

3. DEFINITION OF RURAL ENTREPRENEURSHIP
 According to Khadi and Village Industries
Commission (KVIC) rural industry is industry
located in rural area, population of which does not
exceed 10,000 or such other figure which produces
any goods or renders any services with or without
power and in which the fixed capital investment per
head of an artisan or a worker does not exceed a
thousand rupees.
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

4. AREAS OF RURAL INDUSTRIES CATEGORIES
 Mineral-based industry
 Forest-based industry
 Agro-based industry
 Polymer and chemical –based industry
 Engineering and non-conventional industry
 Textile industry including khadi
 Service industry
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

5. NEED FOR RURAL ENTREPRENEURSHIP
1.Labour Intensive
2.Employment Generation
3.Income generation
4.Encourages dispersal of economic activities-BRD
5.Development leads to village republics
6.Helps to protect and promote art and creativity-Kondapalli
toys.
7.Fosters economic development by reducing migration of
people from village to urban, reduces growth of slum areas,
atmospheric pollution.
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

6. RURAL INDUSTRIALIZATION
1.Industrial Policy 1948—”utilization of local resources and
the achievement of local self sufficiency in respect of
certain essential consumer goods”—Cottage and small
industries
2.Industrial Policy 1956- emphasis creation of employment ,
equitable distribution of income and effective mobilization
of capital and skills.
3.Industrial Policy 1962-66 stress the establishment of
ancillary units to enhance village and small scale industries.
4.Industrial Policy 1969-74 points BRD through agro
industries and dispersal of industries in backward areas.
5.Industrial Policy 1980 points to generate economic viability
in villages through DICs.
6.Industrial policy 1986 points to increase investment in plant
and machinery from 20 lakhs to 25 lakhs.
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

7. 7.KVIC taken responsibility to consider food processing,
pottery, leather items, ready made garments under village
industries.
8.Ninth five year plan covers the following strategies---
 Providing incentives to village industries for
employment and growth.
 Credit facilities to small scale industries will be
increased.
 Investment limit for small scale industries will be
revised to 3 crores.
 Technology up gradation and development in
handlooms, handicrafts etc.
 Special attention to sericulture to improve the quality of
raw silks by introducing better silk worm breeding
practices.
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

8. PROBLEMS OF RURAL ENTREPRENEURSHIP
1.Financial Constraints
2.Lack of technical know-how
3.Lack of training services
4.Management problems
5.Lack of quality control
6.Lack of communication and marketing information
7.Poor quality of raw materials
8. Lack of storage and warehousing facilities
9.Lack of latest technology
10.Lack of promotional strategy
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

9. HOW TO DEVELOP RURAL ENTREPRENEURSHIP
1.Set up plant near raw materials to generate more
employment
2.Finance-funds
3.Common production and marketing centers should set up.
(Govt. Purchase mandatory)
4.EDPs and Women Entrepreneurship Development
Programmes
5.Subject in Schools, colleges.
6.NGOs
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

10. NON GOVERNMENTAL ORGANIZATION
 A non-governmental organization (NGO) is
an organization that is neither a part of a government nor
a conventional for-profit business.
 Usually set up by ordinary citizens, NGOs may be
funded by governments, foundations, businesses, or
private persons. Some avoid formal funding altogether
and are run primarily by volunteers.
 NGOs are highly diverse groups of organizations
engaged in a wide range of activities, and take different
forms in different parts of the world.
 Some may have charitable status, while others may be
registered for tax exemption based on recognition of
social purposes.
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

11. TYPES OF NGOS
 National Alliance of Young Entrepreneurs (NAYE)
 World Assembly of Small and Medium Entrepreneurs
(WASME)
 Xavier Institute of Social Studies (XISS)
 Association of Women Entrepreneurs of Karnataka
 Rural Development and Self Employment Training
Institute(RUDSET)
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

12. LEVELS OF NGOS
 Primary level: mobilization of resources, operations by
themselves at international level
 Eg: Oxfam, originally founded in Oxford as the Oxford
Committee for Famine Relief, is an international
confederation of organizations working worldwide to find
solutions to poverty and related injustice around the
world, Christian Children Fund.
 Intermediate level: procure funds from various agencies ,
import training and conduct workshops for target
workforce.
 Eg: SEWA and AWAKE.
 Gross root level: conduct field surveys by establishing
direct contacts with needy people.
 Eg: RUDSET, Indian Institute of Youth Welfare (IIYM)
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

13. Types of training by NGOs:
1.Stimulation: EDPs
2.Counseling: to needy people by preparing feasibility report,
preparing project, purchasing plant and machinery.
3.Assistance: assisting target groups in marketing their products
and securing finance from financial institutions.
Strengths and weakness of NGOs:
1.Flexibility and responsiveness in operation
2.Nearness to client groups
3.Stimulating and mobilizing interest in community
4.Dependence on customer satisfaction
1.Role conflict
2.Doubt leadership
3.Lack of programme integration due to lack of training.
4.Inadequate opportunities as trainer.
5.Love job but hate work.
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

14. Thank you
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V.MadhsudhanGoud,AssistantProfessor,
GPCET