NGO’S AND RURAL

ENTREPRENEURSHIP…

K. ARAVIND SIVARAM

INTERNATIONAL CHALLENGES OF GLOBAL ENTREPRENEURSHIP ON 21ST CENTURY

PARTICIPANT FROM:

RAMAKRISHNA MISSION

VIVEKANANDA COLLEGE,

MYLAPORE, CHENNAI 600004.

WHAT’S AN NGO??? HOW IT WORKS….

• A non-governmental organization (NGO) is a legally constituted organization created by NATURAL or LEGAL PERSONS that operates independently from any form of GOVERNMENT.

• The term originated from the UNITED NATIONS (UN), and is normally used to refer to organizations that are not a part of the government and are not conventional for-profit business.

• In the cases in which NGOs are funded totally or partially by governments, the NGO maintains its non-governmental status by excluding government representatives from membership in the organization.

• The term is usually applied only to organizations that pursue wider SOCIAL aims that have POLITICAL aspects, but are not openly political organizations such as political parties.

• The number of NATIONALLY OPERATING NGO’S is estimated at 40,000. International numbers are even higher: RUSSIA has 277,000 NGOs; INDIA is estimated to have around 3.3 million NGOs in year 2009, which is just over one NGO per 400 Indians, and many times the number of primary schools and primary health centres in India.

NGO-BANKER’S INTERFACE ONRURAL ENTREPRENEURSHIP..

• Rural India continues to suffer from lack of employment and self-employment opportunities owing to its narrow economic base.

• In the recent past, considerable success has been achieved in developing rural poor through entrepreneurship development approach which focuses on selectively utilising local talent, appropriately developing them through training intervention and linking them with relevant business opportunities.

• EDI implemented Rural Entrepreneurship Development (RED) Approach, in collaboration with NGOs by training their development workers. One of the major hurdles faced in the process is non-availability of required and timely financial support to trained entrepreneurs. It was, therefore, felt that the desired success rate could not be achieved in REDPs despite best possible training inputs, because of non-availability of funds from banks to trainees.

• Keeping this in view, EDI conducts workshops for bankers to make them aware of the REDP approach and the role of support system therein.

• Objectives of this workshop :

• To share EDI's rural entrepreneurship development experience and approach

CONT….• To provide orientation to the participants regarding rural entrepreneurship development

strategy as a viable alternative, role of NGOs and the support systems

• To expose the participants to various phases of RED training intervention

• To provide a common platform to NGOs and support system officials, to discuss various issues pertaining to success of RED activity

• To evolve a future course of action for rural entrepreneurship development and involvement of NGOs and the support system for maximum impact.

• These programmes attended by officers of Commercial / Regional Rural Banks/ SFC branches operating in areas where REDPs have been or are to be implemented by EDI in collaboration with NGOs, have generated positive response from the support system officials for trained potential entrepreneurs.

WHAT’S AN RURAL ENTREPRENEURSHIP???

• The problem is essentially lop sided development which is development of one area to the cost of development of other.

• Some areas have to concentrated in the case of rural areas.

• For instance, the unemployment or underemployment in the villages that has led to influx of rural population to the cities.

• Mere migration is not always undesirable but it should be the minimum as far as employment is concerned.

• The sitiuation should be such that people should find it worthwhile to shift themselves from towns and cities to rural areas because of realization of better opportunities there.

• The migration from rural areas should not only get checked but overpopulated towns and cities should also get decongested.

EMPHASIS OF RURAL ENTREPRENEURS…

• Entrepreneurs emerging in rural areas are generally termed as rural entrepreneurs. These types of entrepreneurs give much emphasis on establishment of industrial units in rural areas. Rural entrepreneurs have paid special attention on village industries which are classified into the following major categories.

• Agro-based Industry

• Textile Industry

• Polymer and chemical based Industry

• Engineering Industry

• Forest based Industry.

• There is a growing need for rural entrepreneurs because industrial units undertaken by rural entrepreneurs are providing much employment to men than machines. It has high potential for income generation in rural areas because of more employment opportunities.

MEASURES TO BE IMPLEMENTED:• The growth of rural entrepreneurs in 2nd five year plan is quite satisfactory.

As growth of rural entrepreneurs is not satisfactory, the following measures are to be implemented for development of rural entrepreneurs.

• i. As raw materials constitute the basic ingredient of industry, there should be free and continuous supply of raw materials. Continu8ous supply of raw materials ensures continuous and smooth production process.

• ii. Rural entrepreneurs face inadequacy of capital which is regarded as the life blood of business unit. Provision for adequate capital will facilitate development of rural entrepreneurs.

• ii. Rural entrepreneurs face inadequacy of capital which is regarded as the life blood of business unit. Provision for adequate capital will facilitate development of rural entrepreneurs.

• iii. One of the major problems of rural entrepreneurs is marketing of product. The problems of marketing can be solved by provision of common production cum marketing centers.

• iv. Most of rural entrepreneurs accept this professional career not according to their choice but by chance. This ensures lack of aptitude and competency. One can overcome these difficulties by encouraging rural entrepreneurs.

• v. Rural industries fail not due to non-availability of facilities but non-awareness of facilities. So different awareness programmers are to be encouraged for development of rural entrepreneurs.

• In the present days different non-government organizations (NGOs) are formed for developing awareness programmed on development of entrepreneurs. There are 3 different types of NGOs.

• vi. Primary level NGOs who mobilize their own resources. They operate at international level for undertaking developmental activities. The examples of these types of NGOs are ACTION AID and OXFAM.

• vii. Intermediate NGOs who obtains funds from various agencies. They conduct different training programmers and workshop. The examples of intermediate NGOs are SEWA and AWAKE.

• viii. Grass root levels NGOs denote a type of NGO which conduct field activities by establishing linkage with grass root people. RUDSETI and ANARDE are the best examples of grass root level NGO.

IMPORTANCE OF NGO:

CHAIRMAN OF TECHNOSOL MR. CHRISTCHURCH

• The NGO entrepreneur of the TECHNOSOL after 12 years of

providing solar energy to rural areas of NICARAGUA.

• He made others to realize the importance of NGO as

EDI.(ECONOMIC DEVELOPMENT INSTITUTION)…

CONCLUSION:• HENCE, MANY NGOS ARE NOW TAKING PART IN THE RURAL ENTREPRENEURSHIP FOR THE THE DEVELOPMENT PROCESS

TO BE HELD.. LIKE TECHNOSOL MANY NGOS ARE ACTIVELY

TAKING PART IN BUILDING THEIR STANDARDS AND NOT THAT

TOO THEY ARE GETTING REWARDS FROM GOVERNMENT FOR

THEIR ACTIVITIES…….

THANKS FOR VIEWING