Rural Entreprneurship -One Key to Rural Revitalisation

Entrepreneurship stooge play an important role in outlandish catchment. Entrepreneur means one who shits a product on his larn account, who ever undertakes on his own an industrial/trading enterp elevate in which work men argon employed. If entrepreneurships very encouraged in bucolic argona it would, of course, be instrumental in changing the display case of country argonas by solving the problems of un habit, poverty, frugal disparity, unforesightful utilization of boorish capacity, hapless level of standard of living. Authors 1. Dr.Ratan Barman, Reader, Department of Commerce, Assam University (Diphu Campus) 2. Dipanjan Chakraborty, Senior Lecturer, Department Of commerce,Darrang College,tezpur understructure India lives in her villages- this axiom is still true today despite the good celestial sphere budding in the urban and semi urban areas. volume of the nation still lives in untaught India and the large chunk of commonwealth in urban areas still live throug h and through the learning of a village vitality. For the strength of the country there is a necessity to develop the villages. suppuration of a country is a choice loaded on its race, whether urban or unsophisticated.It is individuals who shape up a society and set its progress and performance. Urban and rude are two sides of the same property of economic evolution. While the urban sector has witnessed phenomenal produce and maturation, fuelled by the post independence era of industrialisation, the sylvan sector saw lowly corporate maturement. verdant development is to a greater extent than ever before united to entrepreneurship. Institutions and individuals promoting sylvan development now hitch entrepreneurship as a strategic development intervention that could accelerate the outlandish development process.Furthermore, institutions and individuals seem to comply on the urgent need to gain agrarian enterprises development agencies see rural entrepreneurship as an enormous employment potential politicians see it as the key strategy to prevent rural unrest farmers see it as an instrument for improving farm earnings and women see it as an employment possibility near their homes which go aways autonomy, independence and a reduced need for favorable support. To all these groups, however, entrepreneurship stands as a vehicle to improve the quality of life for individuals, families and communities and to sustain a healthy economy and environment.rustic industrialization is important non only as a means of generating employment opportunities in the rural areas with low capital cost and raising the real income of the people, but similarly because it contributes to the development of farming and urban industries. In the absence of rural industrialization, it would non be easy to solve the problem of unemployment in rural areas. The entrepreneurial orientation to rural development accepts entrepreneurship as the central force of economic gr owth and development, without it other factors of development entrust be wasted or frittered away.However, the acceptance of entrepreneurship as a central development force by itself will non lead to rural development and the advancement of rural enterprises. What is needed in addition is an environment enabling entrepreneurship in rural areas. The existence of much(prenominal)(prenominal) an environment largely depends on policies promoting rural entrepreneurship. The potentiality of such policies in turn depends on a conceptionual poser about entrepreneurship, i. e. , what it is and where it comes from. purpose of Entrepreneurship and Entrepreneur The terms entrepreneurship and entrepreneur are not new to the Indian economy.Often these two terms are considered synonymous and utilise interchangeably. But conceptually both the terms are different. The relationship among the two is just like the two sides of the same coin. The understanding of the concept of entrepreneurship owes a lot to the work of economist Joseph Schumpeter and the Austrian School of economics. agree to Schumpeter (1950), and entrepreneur is a person who is willing and able to convert a new idea or invention in to a lucky innovation. Entrepreneurship forces creative destruction across markets and industries, simultaneously creating new products and business models and liminating others. In this way, creative destruction is largely responsible for the dynamism of industries and long-run economic growth. The entrepreneur is the kind of persons that is willing to put his career and financial hostage on the line for an idea, overleaping his time and capital in an groping venture. Entrepreneurship as a stabilizing force limits entrepreneurship to reading markets disequilibria, while entrepreneurship delineate as owning and operating a business, denies the possibility of entrepreneurial behaviour by non-owners, employees and managers who have no equity stake in the business.Theref ore, the most hold definition of entrepreneurship that would fit into the rural development context, argued here, is the broader one, the one which defines entrepreneurship as a force that mobilizes other resources to meet unmet market demand, the ability to create and build something from practically nothing, the process of creating value by pull together a unique package of resources to exploit an opportunity2. Concept of untaught entrepreneurship Many examples of successful rural entrepreneurship can already be found in literature.Rural entrepreneurship can be defined as entrepreneurship rising at village level which can take place in a variety of fields of endeavour such as business, intentness, agri finishing and acts as a potent factor for economic development, In short, rural entrepreneurship implies rural industrialization consisting mainly of agro-based industries, Khadi and village industries and cottage industries. The forward motion of rural entrepreneurship is vita l in the context of generating gainful employment and minimizing the siding of disparities between rural and urban population.About 75% of the population who lives in villages has to implement the village resources and they are plentifully available and people are not utilizing it effectively due to mass illiteracy. The take a chance aversion people can be transformed in to risk taking innovative entrepreneurs by proper training. Rural entrepreneurship not only concentrates on sweetening of products by use of local force or by artisans but in like manner has significant environmental and social collision by developing eco loving and permit olution to local problems China represents a unique example of rural entrepreneurial development with prima facie importance to the use of local resources, such as natural resources, human resources and material resources for local economic, social and pagan development and for running within the local area the surpluses so generated and at the same time effectively integrating rural development with modernisation the urban sector. Chinas successful rural development through less dogmatic and down-to-earth approach to rural industrialization is really worth emulating for our country.Dynamic rural entrepreneurs can also be found. They are expanding their activities and markets and they gamble new markets for their products and services beyond the local boundaries. Role of Entrepreneurship in Rural development For rapid development, rural industrialization is must. But rural industrialization requires development of rural areas.. According to the Government of India, any industry dictated in rural area, village or town with population of 20,000 or less and an investment of Rs. crore in Plant and machinery is treated is rural industry. Rural or village industry is classified in to the following categories mineral based industry Forest based industry Agro based and food for thought industry Polymer and chemical i ndustry Engineering and non-conventional energy Textile industry Service industry Objectives of entrepreneurship in Rural Development To reduce disparities in income between rural and urban areas To promote balanced regional development To pressure the age-old rich heritage of the country To control migration of population from rural to urban area and thus helps in checking haphazard growth of cities and slums To help in reducing social tension and pollution Rural Entrepreneurship as a policy Tool to Achieve Rural Development Before independence, rural industrialization and hence rural entrepreneurship did not get any emphasis. The British Government gave importance to imports and neglected the development of Indian industries.In order to achieve rural development, after independence, the government of India used rural entrepreneurship as a policy tool. It has been clearly reflected in various quintuple year plans and industrial policies. 1) Production in Khadi & Village ind ustries sector was Rs 4,519 croes in the year 1997-98 and by the end of the year 2006-07, it is expected to increment up to Rs. 13,250croes i. e. in the span of 9 years it is expected to rise by almost 3 times. 2) Employment in KVI sector was 6. 65 million in the year 1997-98 and it is expected to increase up to 9. 5million by the end of year. Problems seemd by entrepreneurs of rural areas Lack of finance-Modern entrepreneurship is a high-priced affair which of necessity abundant credit facilities. But in undeveloped countries, there is always scarcity of such credit facilities Lack of technical foul know-how-On account of faulty education system youth inadequacy professional, managerial and technical knowledge which is an impediment in developing the spirit of enterprise, thus not many a(prenominal) people come forward to establish self-employment units. absence seizure of Enterprising dexterity- Most of the rural people in India lack risk bearing ability. Reluctance to i nvolve oneself in business, inclination towards wage employment, lack of creative thinking are few reasons which have restricted the growth of self-employment in rural area. Lack of Infrastructure-On account of lack of infrastructural facilities viz, transport, water, electricity, market, storage and conversation etc, entrepreneurs are shying away from establishing industries in villages. Industries which are already established are also facing similar problems. Adverse, social, cultural and Industrial environment-Caste systems, social evils, fatalism, spiritual superstitions, particularly in the countryside, do not allow development of daring spirit. Lack of skill and expertise in labourers, their tendency to migrate to tumid cities and consumers habit to buy goods produced by big companies create many problems for new entrepreneurs. Lack of cognisance about quality control-It is true that of knowingness hinders rural entrepreneurship. There are number of factors responsible for the lack of awareness among rural folk.Illiteracy, ignorance, lack of proper propaganda by agencies, corruption among government functionaries etc are some of the factors responsible for this problem. Lack of market discipline due to poor communication facility- The absence of effective communication and access to right information makes it difficult for rural entrepreneurs to understand market trends and policies followed by the government on industrialization. Rural Development through Rural Entrepreneurship To achieve rural development through rural entrepreneurship, The support infrastructure given by nib Bolton & John Thompson should be implemented given below.The support infrastructure great deal Ideas The Enterprise Sector Education and Research and Property Finance come out Business support Community schooling Development development adeptness School, Industry, Business Seed and Sub Government Housing, College University Incubator venture contractor s Agencies Schools, University store Innovation capital Labour Clubs and Hospitals, Training centre pool Associations, Recreation, easiness Science Consultants Transport Entrepreneur Technology And business Tele commu Business advices nications naturalize parks Activity Courses of Technology Premises Equity& Staff Training advice Amenity programmes transfer and support Loans & Suppliers and networking provision Source Entrepreneurs by observation Bolton & John Thompson Conclusion On the basis of analysis and role of rural entrepreneurship for rural development, we can conclude that rural entrepreneurship and rural development are two sides of the same coin. A part from Government policy, there is an urgent need to create conducive environment in rural areas so that rural entrepreneurship should flourish. Suggestions The following suggestions can be put forwarded for the protection and enhancement of demand potentiality leading to fertile ground for entrepreneurship.Entrepreneurship would be conducive for rural capacity utilization and development and solving rural problems like, unemployment, poverty, low level standard of living etc. ? Formulation of a registered sight union, under the guidance of appropriate Government, at village level-The role of such a trade union should be to protect and promote the elicit of labours in the village. It will lead to enhance their bargaining power, thereby more earnings. Labour concessions will be instrumental in changing the face of rural areas. ? Formation of village development council, under the guidance of appropriate Government, at the village level . This council should lead in forming and propagating about prejudicial impacts of drain of rural demand, rural resources to urban area.Consciousness should be created about the fulfillment of rural demand by rural supplier living in the same village. It means trading should be promoted in the villages. Positive impact of divion of work. Divion of work will lead specialization, better capacity utilization, assurance of decisive market and enough earning to meet family needs. The positive and detrimental impacts of migration of people from rural area to urban area. It is good in the sense that it is going to provide employment to rural people in urban area. But the negative part of the process is that commit their funds in urban area. These migrated people should be encouraged and motivated to finally stay in village.They should spend their money in rural areas. It would lead to enhancement in rural demand and rural development. Such a village development council will be forum where issues relating development will be discussed and opinions will be floated among the people for course of action. ? Formation of Rural entrepreneurship Development Bank of India, on the line of Industrial Development bank of India, is essential to promote entrepreneurship in the rural areas. It role would be to make avai lable finance, knlwledge, technical expertise, managerial advice, help in marketing, string etc. it has to take case from commencement to end. Even its role would be to come up with plans.The is need to promote urban culture in rural area in applaud of consumption, entertainment, education, spending, standard of livingrationality,etc. to promote economic activities. Rural-Urban interaction, T. V, Radio, Mobile, Road etc, are promoting urban culture in rural areas. ? State Government must invest in more for development of rural entrepreneurship ? All latest technology of the ball is to be disseminated to all rural areas by Government through bell free number ? Appointment of SSI ombudsman and having one stop centre for needs of rural entrepreneurs to be established. ? There is necessary to promote education and skill necessary for entrepreneurship ?