(GIST OF KURUKSHETRA) Rural Entrepreneurship

[June-2021]

Rural Entrepreneurship

Introduction:

Rural entrepreneurship can be defined as the activity taken up by the individuals in the countryside that supports either manufacturing products or provides services or adoption of new technologies for an economic benefit.
It brings value addition to rural resources engaging largely human resources of rural area. Rural Entrepreneurship is synonymous of rural industrialisation.
The development and growth of it help in generating self-employment, spreading industrial and economic activities and utilising local labour as well as locally available raw materials.

Why Rural Entrepreneurship?

In rural India, unlike the urban India, with cyclic and disguised unemployment, it suffers with chronic underemployment. Due to distressed migration of rural people to mega cities, the villages remain deserted and village resources are remaining unexplored. Besides, lack of infrastructure, market and financial access further aggravate rural livelihoods.
The livelihood of trained village artisans stands at stake due to unorganised structure and lack of market. Apart from this, the purchasing power of rural people is crippling down and that of urban areas is bursting due to overcrowding. The traditionalist ways of rural industries somehow contribute meager to the productivity levels in rural India, so neither the new technological support nor the IT revolution has made any significant alterations in the pace of rural growth. The above-mentioned causes are underlying as a necessity to promote rural entrepreneurship so that the chronic underemployment and out-migration issues of rural areas are tackled on priority basis.
Rural Entrepreneurship is synonymous of rural industrialisation. The development and growth of it helps in generating self-employment, spreading industrial and economic activities and utilising local labour as well as locally available raw materials. In India, rural industries have been promoted since establishment of Khadi and Village Industry Commission (KVIC) during 1956-57 with social objectives of providing employment in rural areas, economic objectives of providing saleable articles and wider objectives of creating self-reliance amongst people and building up a strong rural community spirit.
Entrepreneurial activities have enhanced in the rural areas over a period of time; however, it is less as compared to urban areas. Moreover, it is dominated with manufacturing activities and micro level enterprises.

Opportunities for the rural entrepreneurs:

Low establishment costs involved
Availability of raw materials
Competitive advantages exists
Low cost of production compared to the urban enterprises
Optimum utilization of products
Government policies and subsidies are slowly diverted into this
Support and inspiration to native people through employment generated
Reduced promotional costs
Existing customer base for the produce
Ethical and goodwill building is smooth for rural enterprise in comparison to a foreign enterprise in rural setting

Initiatives for Promotion of Rural Entrepreneurship
1. Scheme for credit & financial assistance to the rural enterprises:

a. Prime Minister’s Employment Generation Programme (PMEGP)

b. Credit Linked Capital Subsidy Scheme (CLCSS)

c. Credit Guarantee Trust Fund for MSEs (CGTMSEs)

d. Interest Subvention Scheme for Incremental Credit to MSEs

2. Schemes for Skill Development and Training:

a. A scheme for Promotion of Innovation, Rural Industry & Entrepreneurship (ASPIRE)

b. Entrepreneurship and Skill Development Programmes (ESDP)

c. Gramodyog Vikas Yojana (GVY)

3. Schemes for Infrastructure Development:

a. Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

b. Scheme for Micro and Small Enterprises Cluster Development Programme (MSE-CDP)