The document discusses entrepreneurship in rural areas of India. It notes that a large portion of the country lives below the poverty line and agriculture employs 70% of the workforce. This has led to overcrowding of agricultural land and diminishing returns. To address this, the document proposes that entrepreneurship can provide alternative occupations to reduce underemployment in agriculture and make better use of local resources. However, rural entrepreneurship faces challenges including lack of infrastructure, access to capital and markets, and skills shortages. The document outlines some government programs and opportunities that aim to support rural entrepreneurship as well as ongoing problems in the sector.

1. Entrepreneurship Perspectives
Entrepreneurship in Rural Areas
Sshailesh L. Prajapati

2. • Large part of the country is below poverty line.
• Agriculture continues to be the main activity of rural society.
• 70% of holdings are held by small and marginal farmers resulting
in overcrowding on the agricultural land and diminishing farm
value.
• The above leads to migration to Urban areas
• Agriculture work force is 70% in the total work force of the
country. Out of this 32% of 70% is agriculture labour and 68% is
owing farm land.
• In the above situation, entrepreneurship is the best option.
Entrepreneurship in Rural Areas
Entrepreneurship Perspectives
Sshailesh L. Prajapati

3. • Entrepreneurship could take off the excess of labour from
farms that causes disguised employment. These labour in
actual term does not add any value to GDP.
• The basic Principals should be applied to RD.
• Better distribution of farm produce
• Occupation to rural youth to reduced disguised employment
• Formation of Big Cooperatives like Amul for optimum utilisation
• Optimum utilisation of local resource in entrepreneurial ventures by
rural youth.
Entrepreneurship in Rural Areas
Entrepreneurship Perspectives
Sshailesh L. Prajapati

4. • Challenges faced by rural Entrepreneurship in India
• Family Challenges
• Social Challenges
• Technological Challenges
• Financial Challenges
• Policy Challenges
• Power failure
• Mall Culture
• Infrastructure Sickness
Entrepreneurship in Rural Areas
Entrepreneurship Perspectives
Sshailesh L. Prajapati

5. • Opportunities for Rural Entrepreneurs
• Crashed Schemes for Rural Development
• Food for work program
• National Rural Employment program
• Regional Rural Development Centres
• Bank for Technology
• Entrepreneurship Development Institute of India
• Rural Innovation Funding.
• The above programs are available for future Rural Ents
Entrepreneurship in Rural Areas
Entrepreneurship Perspectives
Sshailesh L. Prajapati

6. • Problem of Rural Entrepreneurship
• Financial Problems
• Paucity of Funds
• Lack of Infrastructural facilities
• Risk Elements
• Marketing Problems
• Competition
• Middlemen
Entrepreneurship in Rural Areas
Entrepreneurship Perspectives
Sshailesh L. Prajapati

7. • Problem of Rural Entrepreneurship
• Management Problems
• Lack of Knowledge of IT
• Legal Formalities
• Procurement of Raw Material
• Lack of Technical Knowledge
• Poor Quality of Products
• HR Related Problems
• Low skill level workers
• Negative Attitude
Entrepreneurship in Rural Areas
Entrepreneurship Perspectives
Sshailesh L. Prajapati

8. Entrepreneurship Barriers

9. Barriers to Entrepreneurship
Entrepreneurship Perspectives
Sshailesh L. Prajapati

10. • Capital
• Pre-requisite for setting up of the new Enterprise.
• It is a Lubricant to process of Production
• It is a source to mobilize other resources lime men, material, and
machines.
• Entrepreneurship in any society increases with the increase in supply
of capital.
• Hence lack of Capital with any society or nation acts as a serious
barrier for promoting Entrepreneurship in that society.
Economic Barriers
Entrepreneurship Perspectives
Sshailesh L. Prajapati

11. • Labour
• Real barrier is not the Labour but the poor quality of Labour is a
barrier to Entrepreneurship.
• Cheap Labour in developing country can be taken as strength
prima-facie but the fact is that cheap labour is often has low level of
productivity.
• Unskilled and Low productive Labour acts as a barrier in setting up
the modern enterprise.
• This can be substituted by labour saving innovation like, Machines
against the labour.
Economic Barriers
Entrepreneurship Perspectives
Sshailesh L. Prajapati

12. • Raw Material
• It is prime material by which product is getting manufactured.
• In absence of this, entrepreneurs do not emerge.
• Lack of RM is normally the greatest economic barrier for growth of
the entrepreneurship.
• Japanese society has been able to overcome this problem through
innovative management system like “ EOQ” Minimum Level, Stress
Level and JIT maintenance of Inventory.
Economic Barriers
Entrepreneurship Perspectives
Sshailesh L. Prajapati

13. • It is a sociological and psychological factor act as non-
economic barrier.
• Cultural Block
• Practical Values
• Importance of Logic as compared to Intuition and subjective
evaluation
• Respect for Entrepreneurs
• Emotional Blocks
Non- Economic Barriers
Entrepreneurship Perspectives
Sshailesh L. Prajapati

14. • Personal Barriers
• Lack of Sustained motivation
• Difficulty with ambiguity
• Inability to dream and use subconscious
• Impatience in solving problems
• Risk Avoidance
• Lack of Clear Perception.
• What is Tunnel Vision?
• It is to refuse to look beyond the set boundaries.
Non- Economic Barriers
Entrepreneurship Perspectives
Sshailesh L. Prajapati

15. Sshailesh L. Prajapati; FCA, MBA
Compiled from various Books
Sshailesh L. Prajapati