Rural Entrepreneurship T Y B Com Prof Arjun
Rural Entrepreneurship T. Y. B. Com Prof. Arjun B. Bhagwat S. M. Joshi College, Hadapsar, Pune-28 T. Y. B. Com 1
Introduction Ø India is described as a country of villages Ø A large portion of population still lives in villages Ø Rural entrepreneurship & industry played vital role in economy ØThe entrepreneurship in rural areas related to craftsman & artisan Ø It raises per capita income & living standard of rural people Ø Rural industries can provide work opportunities to people Ø This concept can prevent migration of rural people to urban area Ø Generation of direct & indirect employment in rural areas Ø Reduction in the pressure and dependence on agriculture Ø Assistance in decentralization of economic power Ø Balanced regional development T. Y. B. Com 2
Introduction Ø “Poor of the World can’t be helped by mass production but only by production by masses” ------ Mahatma Gandhi Ø Over 70% of Indians live in rural areas Ø Over 75 % of rural labour force still earns its livelihood from agriculture and its allied activities. Ø Thus, there is a need to develop RURAL INDUSTRIALISATION. T. Y. B. Com 3
Definitions v According to Khadi and Village Industries Commission (KVIC) Ø “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 4
Definitions v According to Reserve Bank of India (RBI) Ø 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 5
Problems of Rural Entrepreneurship in Agricultural Sector and village Industry T. Y. B. Com 6
1. Insufficient Financial Resources Ø Non availability of credit facility due to eco position Ø Non availability of initial capital or future expansion Ø Misutilization of Bank’s fund in several areas Ø Financial banks take long time to dispose off loan application Ø Due to the defective identification of beneficiaries (Bank scheme) Ø Wrong design of scheme & lack of knowledge about scheme T. Y. B. Com 7
2. Problems Relating to Raw Materials Ø Irregular supply of raw materials Ø Insufficient quantity of raw material Ø Non availability of raw material at reasonable prize Ø 70% cost of raw material in respect of finished product Ø Purchase the raw material in open markets at high prize Ø The raw material predominantly supplied to big company Ø High cost of raw material and uncertain quantity of raw material T. Y. B. Com 8
3. Labour Problems Ø Rural industry mostly are in form of household activity Ø The workers employed such units are family members Ø Lack of skilled labour Ø Lack of training Ø Superstition and orthodox thinking Ø Low productivity and low commitment T. Y. B. Com 9
4. Marketing Problems Ø Rural entrepreneurs sell their products in local market Ø The proper marketing channel is absent Ø These products very rarely reach the urban market Ø Lack of finish precision and modern design Ø Cannot stand on the competition of large industry Ø Lack of market research ands cost consciousness Ø Cannot attract choosy urban customers Ø Do not have a marketing strategy and modern outlook T. Y. B. Com 10
5. Transportation & Storage Problems Ø Problems of storage of inputs & outputs Ø They do not have big space Ø Cant store the raw material & Finished product Ø Cant maintain the big stock of finished product Ø That’s why depend upon middlemen Ø A big enterprise can make annual fright contract with transport co. Ø They can purchase their own truck & arrange separately T. Y. B. Com 11
6. Technology Problems Ø Rural entrepreneurs are mostly labour intensive Ø Use of traditional & old technology Ø Lack of technical knowledge Ø Lack of financial help for bringing the equipments Ø Use of old, primitive, outdated tools, equipments & work method Ø Productivity is very low T. Y. B. Com 12
7. Personal Problems Ø Traditional business environment Ø Lack of family & socially support Ø Burden on business choice Ø Lack of technical knowledge Ø Quality of education Ø Lack of Communication Facilities Ø Lack of Quality Management Ø Lack of motivation T. Y. B. Com 13
8. Agricultural Problems Ø Non cultivable land Ø Quality of seeds, fertilizers & irrigation Ø Lack of marketing knowledge Ø Traditional production technique Ø Fake government scheme Ø Credit facilities Ø Lack of management skills T. Y. B. Com 14
9. Other Problems Ø Lack of Basic Needs & Infrastructural Facilities Ø Non supportive attitude of financial institutions Ø Lack of Ware-Housing Facilities Ø Rigidity of rules while providing of loans Ø Poor government scheme T. Y. B. Com 15
Thank You T. Y. B. Com 16
- Slides: 16