Need for Rural Entrepreneurship

Entrepreneurship is a wide concept. On one side, an entrepreneur is a person who initiates change. Very few people possess this quality. On the other side, anyone who wishes to take an effort and work for himself is also characterized as an entrepreneur. In India the problem of unemployment is very chronic and to correct this situation, we need to work for the idea of working for ourselves and try to become the initiator of change.

Rural entrepreneurship is possible in various forms such as Individual Entrepreneurship, Group Entrepreneurship, Cluster Formation and cooperatives. Clusters and cooperatives are suitable and effective forms of rural entrepreneurship. A cluster is a formal or non-formal group of people formed with a common objective or goal. Rural entrepreneurship primarily deals with industries of micro or tiny structure. The gestation period of micro and tiny industries is less than the large industries, hence they are capable to generate yield quickly. Most of the micro and tiny industries are labour intensive, hence a large number of local unemployed people may get employment by establishing micro and tiny industries.

Rural entrepreneurship is an important socio–economic boosting factor, and considering the importance of rural entrepreneurship for the development of our economy, the Government is also positive in this direction and has started several initiatives. Various Government and Non-Government organizations are working for the development of rural entrepreneurship. Like the District Industry Centre, Centre for Entrepreneurship Development, Small Industry Service Institutes, Technical Consultancy Organizations, Khadi and Village Industries Commission and Commissioner of Cottage Industries etc. Along with these organizations, several big business houses are also working in the area of rural entrepreneurship to strengthen the rural sector.

Rural entrepreneurship is an opportunity to utilize the rural resources in our economy. Along with Government and Non-Government institutions established for the development of rural areas, Micro financial institutions also play an important role. Microfinance is an arrangement of providing financial assistance to the poor and low-earning class of people, not capable to access banks and other financial institutions for their formal financial needs. Due to this basic characteristic of microfinance, microfinance institutions may become pioneers in rural finance and help in spreading the revolution of rural entrepreneurship. Microfinance institutions are not only engaged in providing micro-credit but also many other financial amenities like saving, insurance, and fund transfer. Microcredit is one of the areas of microfinance.

Despite the various initiatives designed for the development of rural entrepreneurship or the rural sector of our economy, the result is not satisfactory. Marketing is one of the major challenges for rural entrepreneurship. Along with rural entrepreneurs, a major portion of the rural market is captured by big companies and multinationals. These companies have huge monetary reserves and skilled marketing forces. They use many attractive marketing strategies to improve their customer base. Apart from financial support rural entrepreneurs also need training in effective marketing to survive and grow in such a dynamic environment. Regular training will help rural entrepreneurs to understand the problem in a precise manner and equips them with diagnostic tools. Thus, with active organizational support and creativity along with restless efforts a rural entrepreneur may achieve his desired goal.