Rural Entrepreneur are the budding people in the rural area those are trying to convert there noble idea into business, and government is helping such people in Finance, Marketing, Technological aspect etc

1. RURAL
ENTREPRENEURSHIP:
SCOPE & CHALLENGES

2. Introduction
• In the present scenario ,the rural areas are source of raw
materials and the urban areas are acting as processing
centers.
• Establishment of micro or household industries in rural
areas can break the cycle of poverty .
• This will not only bring prosperity but also provide
employment to youth and landless people.
• The present discussion will be focused on issues related
to prospects and problems related to entrepreneurship in
rural areas and also the various activities which can be
taken up without huge investment and specialized knowhow.

3. Introduction
• “Rural Entrepreneurship can be defined as
entrepreneurship emerging at village level which can take
place in a variety of fields of Endeavour such as business,
industry, agriculture and acts as a potent factor for
economic development”.

4. Scope of Rural Entrepreneurship
• Rural area as SME Sector and Economy Builder
• Employment and income for poor and unemployed people
• Contributing more than 52% of the GDP
• A rapid expansion in the small and medium industry
arena.

5. Scope of Rural Entrepreneurship
• Repair shops, service centers, PCO, internet café, hiring
of agriculture implements & tractor, computer and other
skill training centers have good scope in cluster of
villages.
• Success of the e-Chaupals has opened door for
replication of this model.
• Entertainment, cable TV ,rural tourism and amusement
parks (near urban areas) are also some of the potential
areas for entrepreneurs in service sector

6. Scope of Rural Entrepreneurship
• Various development programs are being executed
through Panchayti Raj Institutions, who are engaging
contractors for civil /mechanical works. Rural youth can
enter into this business.
• Changed consumption pattern has opened doors for
trading activities in rural areas.
• Rural areas are also consuming large amount of
agriculture inputs such as fertilizers, seeds, pesticides
and insecticides etc.

7. Some known facts of MSME’s
• Employ 41 Million People
• Number – 26 Million MSMEs
• Give 45% of Industrial Production
• Account for more than 40% of Exports
• Contribute 8% to GDP
• Exports: Rs. 1.5 lakh cr.
($ 38 Bn)
• Production: Rs. 5.9 lakh cr. ($ 140 Bn)

8. Region Wise Disbursement of
Refinancing (in Cr.)
• Year: 2010-2011
Total: Rs12,980
Disbursed: Rs13,485.87
• Year: 2011-2012
Total: Rs14,995
Disbursed: Rs15,421.70
• Year: 2012-2013
Total: Rs16,990
Disbursed: Rs177674.29

10. Obstacles and Challenges for
Entrepreneur in India
• Lack of Knowledge
• Financial Challenges
• Lack of Infrastructure
• Family & Social Challenges
• Technological Challenges
• Policy Challenges

11. Involvement of Government
• National Agricultural and Rural Development Bank
(NABARD)
• Small Industries Bank of India (SIDBI)
• Government Schemes to Enhance Rural
Entrepreneurship
• Rural Entrepreneur Development Programme(REDP)

12. Role of SIDBI
Supply side
Activities
–
Microfinance
• Help transform NGOs/Societies
Demand Side – Promotional &
Developmental Activities
•
Enterprise promotion programs
•
Skill-cum-Technology Upgradation
etc. to more regulated entities.
• Associated with more than 150
Programme
MFIs
• Introduced the concept of rating
•
of MFIs
• Term loans
• Equity / Quasi Equity
• Capacity Building Grants
Cluster Development Programme
(CDP)
•
Entrepreneurship
Development
Programme (EDPs)
12

19. Bihar

20. Himachal Pradesh

21. Orissa

22. Uttar Pradesh

23. Andhra Pradesh

24. Average Cost per REDP and per Trainee
in different state

25. Conclusion
• Rural entrepreneurship programmes must be carried in
such a way so that it can be opted by rural youth as a
career.
• Introduction of policies of government among rural youth
to raise innovation level.
• Various incentive monetary and subsidies should be
given to rural entrepreneurs. (some farmer do not plant
certain type of crop in there farm land therefore
government has planned to give them subsidies and
higher market value if they plant particular crop).
•

26. Questions