WELCOME

INTRODUCTION

OBJECTIVES
1
• To know the concept of entrepreneurship and
problems faced by rural entrepreneurs.
2
• To analyze the promotion of entrepreneurship for
rural development.
3
• To visualize a training approach for economic
development of rural entrepreneurs.
4
• To review the research studies related to rural
entrepreneurship.

Concept of Entrepreneurship
• Entrepreneurship is the act of being an
entrepreneur, which is a French word
“entreprendre” meaning "one who
undertakes innovations, finance and business
acumen in an effort to transform innovations
into economic goods". (en.wikipedia.org)

TYPES OF RURAL ENTREPRENEURSHIP
1. Individual Entrepreneurship
2. Group Entrepreneurship :
(i) Partnership
(ii) Private Limited Company
(iii) Public Limited Company
3. Cluster Formation: Non-Governmental
Organizations (NGOs), Voluntary Organization
(VOs), Self- Help Groups (SHGs), Community-
Based Organizations (CBOs),
4. Cooperatives.

DOMAINS OF RURAL ENTREPRENEURSHIP
• Food processing
• Dehydrated Fruits and Vegetables
• Fruit Based Beverages
• Mushrooms
• Poultry Industry
• Cottage industries
• Oil Industry
• Pottery
• Repair of Phone/Mobile Phone, Electronic and Electrical
goods
• Rural Tourism
• Entertainment

Problems faced by rural entrepreneurs
Technical assistance
Entrepreneurial
attitude
Financing
Qualification of
human resources
Market

Constraints of Potential Rural Entrepreneurs and
Development Inputs
Sl.
No.
Constraints Development Inputs
1. Low self-image and confidence Motivational inputs, experience sharing
by successful local entrepreneurs
2. No faith on others includes friends Group building experiences
3. No exposure to industry/business Field visit to factories and big markets
4. What formalities and procedures are to be
followed?
Information inputs on procedures and
formalities
5. How to know whether the identified
business is a viable and sound
proposition?
Market survey, project report
Preparation, Opportunity identification
and guidance
6. How does one carry out bank
operations?
Training in simple banking procedures
7. How to manage the business? Basic management orientation through
simulation exercises
8. Almost no technical skills Technical training

FRAMEWORK FOR ENCOURAGING RURAL ENTREPRENEURSHIP
Propensity to
become
entrepreneurs
Knowledge & skills
associated with
entrepreneurship
Succeeding as
entrepreneurs
Need to address cultural
& behavioural issues
Preparing to be
entrepreneurs through
training
Supporting through
financial assistance
An
entrepreneurial
economy
NO
NO
NO
YES
YES
YES

Promotion of
entrepreneurship

Two approaches
1
•Promotional programmes
2
•Institutional approach

Promotional programmes
Entrepreneurship Development Programme
(EDP)
Rural Entrepreneurship Development
Programme (REDP)
Technology based Entrepreneurship
Development Programme (TEDP)
Training of rural Youth for Self Employment
(TRYSEM)
Prime Minister's Rozgar Yojana (PMRY)
Swarnajayanti Gram Swarozgar Yojana (SGSY)

Entrepreneurship Development Programme
(EDP)
• Development of entrepreneurs through
systematic training.
• Important strategy for development of human
resources for promoting small business
enterprises in rural areas.
• Comprises 3 distinct phases, viz.,
a. pre-training
b. training
c. post-training

Rural Entrepreneurship Development
Programme (REDP)
• Supported by NABARD
• Objective: to create sustainable employment
and income opportunities in a cost effective
manner for the benefit of educated
unemployed rural youth.
• To set up small/ micro-enterprises.

Technology based Entrepreneurship
Development Programme (TEDP)
• Focus of training is on specific products/
technologies, having commercial viability.
• Motivational & managerial inputs.

Training of rural Youth for Self Employment
(TRYSEM)
• Facilitating component of IRDP, aims at
providing basic technical and entrepreneurial
skills to the rural poor in the age group of 18
to 35 years to enable them to take up income
generating activities.

Prime Minister's Rozgar Yojana (PMRY)
• To assist educated unemployed youth to set
up self-employment ventures.
• To develop entrepreneurial skill and attitude
among rural unemployed youth

Swarnajayanti Gram Swarozgar Yojana
(SGSY)
• With a focus on providing effective self
employment through self help group
approach and activity cluster approach for
rural poor families below poverty line.
• The self help groups are motivated through
training and capacity building for taking up
thrift and credit activity and start their own
small rural enterprises .

Institutional approach
Educational
institutions
Financial
institutions
Inter-firm
institutions

Educational Institutions
• RUDSETI
• Entrepreneurship Development Institute of India
• National Institute for Entrepreneurship and
Small Business Development ( NIESBUD)
• Indian Institute of Entrepreneurship (IIE)
• Association of Women Entrepreneurs of
Karnataka (AWAKE)

Objectives
• To identify, orient, motivate, train and assist the rural youth to
take up self-employment as an alternative career.
• To promote rural entrepreneurship.
• To train village level workers.
• Counselling and project consultancy.
 68% of the trained candidates have successfully established
self-employment ventures.
 RUDSET Institutes have contributed to the national wealth to
the tune of Rs. 315 Crores per annum. (At an average earning
of Rs. 2500/- per month by a successful trainee).

Entrepreneurship Development
Institute of India
National Resource Institute Engaged In
Entrepreneurship Education, Research & Training,

Contd…

National Institute for Entrepreneurship and
Small Business Development ( NIESBUD)
OBJECTIVES:
• To promote, support and sustain Entrepreneurship
and small business through Training, education,
research, consultancy
• To serve as an apex national level resource institute
for accelerating the process of entrepreneurship
development ensuring its impact across the country
and among all strata of the society.
• To share experience and expertise in
entrepreneurship development across National
frontiers.

Indian Institute of Entrepreneurship
(IIE)
• Established in the year 1993 in Guwahati.
OBJECTIVES:
• To organize and conduct training for
entrepreneurship development.
• To evolve strategies & methodologies for different
target groups & locations & conduct field tests.
• To identify training needs and offer training
programmers to Government and non-Government
organizations engaged in promoting and supporting
entrepreneurship.

Association of Women Entrepreneurs of
Karnataka (AWAKE)
• India’s premier institutions for women totally devoted to
Entrepreneurship Development.
• Established in 1983.
MISSION
* To promote entrepreneurship among women and thereby
empower them to join the economic mainstream.
* To enhance the status of women in the society, by
creating a culture of entrepreneurship amongst women in
both rural and urban areas.
* To develop successful models of entrepreneurship for
emulation worldwide.

Financial Institutions
• Commercial banks, Co-operative societies,
Regional Rural Bank.
• Development banks:- Small industries
development bank of India(SIDBI) , National
Bank of Agricultural and Rural Development
Bank (NABARD), National Housing Bank (NHB)

Inter-firm institutions
Business incubators
Industrial parks
Business support centres

PLANNING A RURAL ENTERPRISE
PROJECT IDENTIFICATION
INFORMATION ACCESSIBILITY
MARKET ASSESSMENT
FEASIBILITY REPORT

BASIC INFRASTRUCTURE FOR RURAL
ENTREPRENEURSHIP
Transport
Railways
Roads
Power
Communication & telecommunication services
Additional infrastructure facilities that are also
required are drinking water, housing, healthcare
etc.

Training approach

Entrepreneurial development process
1. Development of entrepreneurial culture
2. Encouraging start-ups
3. Setting up the new venture
4. Development of a new venture and growth
5. Institution building
(www.fao.org)

1. Development of entrepreneurial
culture
Understanding of:
What is entrepreneurship?
Who are entrepreneurs'? and
Mechanisms crucial for the development of
positive attitudes towards entrepreneurship

2. Encouraging start-ups
Identification of
constraints
Design of training inputs
Process to develop
business ideas
Estimating
entrepreneurial potential

3. Setting up the new venture
Feasibility study
The business plan
Guidelines

4. Development of a new venture and
growth
• Managerial skills
• Business performance
• Strategies for future growth

5. Institution building
Promoting institutions
Financial institutions
Networking

Model for the development of rural
areas
• The Enterprise (E) is
in the centre and
includes the sectors
Production (P),
Marketing (M) and
Development (D).

Research studies

Participatory Rural
Entrepreneurship Development for
Grassroots Transformation: A Factor
Analysis
O. D. Kolawole and
D.O Torimiro

Principal component analysis of independent variables (socio-economic
factors, infrastructure and institutional factors) associated with
participatory rural entrepreneurship development and employment
promotion (PREDEP)
Sl.
No.
Factor
Label
Names
% of
variance
Cumulative % of
variance
1. Social status 22.89 22.89
2. Personal experience 18.20 41.09
3. Infrastructure functionality 10.65 51.74
4. Educational advantage 9.78 61.52
5. Economic prowess 7.01 68.53
6. Institutional influence 5.90 74.43
7. Information and project type 4.93 79.36
8. Other unknown factors 20.64 100.00

Agro Processing Industries-
A Challenging
Entrepreneurship For
Rural Development
Pardeep S. Shehrawat

Technological problems encountered by
entrepreneurs for establishment of sustainable units
Sl.
No.
Problems Rank order
1. Technological gap between
Different institutions and entrepreneurs
I
2. Lack of specialized skill to the entrepreneurs II
3. Non availability of improved
technology
III
4. Outdated technology IV
5. Lack of technical know-how V
6. Non-availability of technologies in
time
VI
7. Lack of facilities for maintenance
And repair of the machinery
VII
N=120

Institutional problems encountered by entrepreneurs for
establishment of sustainable units N=120
Sl.
No.
Problems Rank
order
1. Lack of cooperation and coordination among different
developmental agencies
I
2. Poor working of various industrial agencies such as directorate of
small industries, SISIs, DICs, etc.
II
3. Lack of Govt. support and incentives III
4. Long and complicated procedures to avail institutional help IV
5. Lack of training to workers V
6. Insufficient publicity for imparting trainings VI
7. Training institutes give less attention to the objectives,
identification and proper selection of entrepreneur
VII
8. Trainers do not belong to the relevant field thus lack competence VIII
9. Lack of communication between field functionaries and
entrepreneurs
IX

Financial problems encountered by entrepreneurs
N=120
Sl.
No.
Problems Rank order
1. Problems in procuring finance loans as well as
working capital from different agencies
I
2. Lack of sufficient working capital II
3. Inadequate amount advanced
through financing agencies
III
4. Lack of funds for publicity and advertisement of
the product
IV
5. High rate of interest V
6. Difficulty in getting money from buyers after sales VI

A Study on Effectiveness of Group
Dynamics and Entrepreneurial
Behaviour of Women in Self Help
Groups
PRASANNA KUMAR, R.

Economic performance of enterprises
undertaken by women in SHGs
Sl.
No.
Enterprises Economic dimensions
Gross
income
(Rs.)
Cost of
productio
n
(Rs.)
Net
income
(Rs.)
B:C ratio
1 Dairy 38576 19403 19173 1.99 : 1
2 Sheep 17603 5703 11900 3.09 : 1
3 Fisheries 19833 4100 15733 4.84 : 1
4 Vermiculture 14167 3333 10834 4.25 : 1
5 Manufacturing activities 18704 4097 14607 4.57 : 1
6 Trading activities 24623 7766 16857 3.17 : 1
7 Dairy + others 30326 9725 20601 3.12 : 1
8 Sheep + others 38267 11683 26584 3.28 : 1
n=180

CONCLUSION

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