Rural Entrepreneurship

Group Members:

Nitin Shetty

Avinash Shinde

Aditi Surve

Vinay Singh

Roshan Shivkar

Introduction :“India lives in Villages and it’s true spirits lives in rural

areas” – Mahatma Gandhi.In favour of heavy and large industies.Crying need of India is production by masses through

rural entrepreneurshipFocus of Rural Entrepreneurship:- Self employment oppurtunities. Increase Employment oppurtunities.

Definition :“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”.

Industries coming under the purview of KVIC are treated as rural industries.

Rural Industries under KVIC Purview :KhadiVillage Industry or Rural IndustryKVIC has broadly re-grouped the various village

industries for the purpose of implementation of its programmes which includes the following :

Mineral-Based IndustryForest-Based IndustryAgro-Based and Food-Based IndustryPolymer and chemical-Based Industries

Contd……..Engineering and non-conventional energy-based

IndustriesTextile IndustryService Industry.According to a report of DCSSI basic objectives of Rural

Industries projects are: Expeditious growth of small scale industries. Creation of oppurtunities for fuller and additional

productive employment in rural areas.Definition of rural industry has been modified.

Meaning of Rural Industrialization : Rural Industrialisation means encouraging location

of large and small scale units away from urban areas or planned shifting of units from urban areas to rural areas. But it is not likely that the existing urban industrial structure can be disturbed.

Therefore under rural industrialization concept, the state should encourage industrialization in rural areas on a massive scale. It is immaterial whether it is small, village industries or large scale industries.

Advantages of Rural Industrialization :

Small & Cottage industries can be started with low capital investment

The rural industries can take advantage of local resources-local raw material, skill & experience

Catering to the local demand thereby avoiding transaction cost.

Rural enterprise create jobs in the rural areas of developing countries.

Contd….

Specialized components of large industries can be manufactured at a less cost in small units in rural areas by means of subcontract system.

Rural industries can produce the best type of products where skilled labour of specific nature is required.

Slow down urban migration.Reduce unemployment

Contd….Meet demand arising from local consumption needs.The role of rural industries is of paramount

importance in our country due to above-mentioned advantages.

Major challenges in the way of development of Rural Industries :Captive market for rural industrial products.Safeguard micro-enterprises and micro-rural

Industries.Better Allocation of resources and control for

products.Make regulatory policies.Promote more modern types of processing

industries.To find solution from problem of sickness.Access to information, credits and technology.

Contd…Exemption from Excise and Sales Tax.To Cope with rural Infrastructure.To motivate professionals in the field of finance.To impart need-based entrepreneurship development

programme for entrepreneurs of rural areas.

Recommendations To Boost Up Rural Entrepreneurship :

Modernization of Rural Industrial Sector and Upgradation of Rural Skills.

Supply of Raw Material at Reasonable rate.Specific action to link the production centers to

market in the urban areas.Training in Government Schemes.Training Institution needs to be Strengthened.Eliminate Middle Men in Marketing Business.

Contd….Exemption from Excise and Sales Tax.Micro Finance Organization should be set upCommon Marketing Complex should be Developed.Growth of Entrepreneurship, Managerial Skills can be

made possible through training Programmes

Entrepreneurship through Poverty Alleviation Programmes :Government of India and State Government have

Sponsored Several Self-Employment generation and poverty alleviation programmes.

IRDP TRYSEM DWCRA JGSY SGSY PMRY REGP etc.

Contd…This Programmes will Alleviate Poverty and Increase

Employment.Rural Development in the Ninth Plan was Rs 74,686

Crore.Rural Development in the Ninth Plan was Rs 74,686

Crore.Thereby Increase in 63.25%.

Excerpts from former Prime Minister’s address on Youth Entrepreneurship and Employment :

Employment is not merely a means of livelihood for young people, it is also the enabler of discovery, self-discovery and self-development.

Both globally and locally, we have to reorient our economic thinking, planning and implementation to achieve the goal of full employment everywhere.

Change in India is visible not only in IT-enabled services. Entrepreneurship employment and self-employment, are also growing in India’s rural and semi-urban economy.

Some Famous Rural Entrepreneurs

Mansukhbhai Jagani developed a motorcycle-based tractor for India's poor farmers, which is both cost effective - costing roughly $ 318, and fuel efficient (it can plow an acre of land in 30 minutes with two liters of fuel).After 4-5 years of experiments, Mansukhbhai developed an attachment for a motorbike -- a multi-purpose tool bar -- in 1994. This could be attached to any 325cc motorcycle by replacing the rear wheel with an assembly unit.The 'super plough' called Bullet Santi (a cultivator that pulverizes or smoothens the soil is locally called as santi), can carry out various farming activities like furrow opening, sowing, inter-culturing and spraying operations.

A farmer, Mansukhbhai Patel invented a cotton stripping machine that has significantly cut the cost of cotton farming and revolutionised India's cotton industry.Patel who studied up to Class X, invented a cotton-stripping machine in 1991.Patel's machine helps in in removing cotton from semi opened and unopened shells of various cotton varieties. The machine has won a United States patent.

Mansukhbhai Prajapati, a potter, invented a clay non-stick pan that costs Rs 100 and a clay refrigerator that runs without electricity for those who cannot afford a fridge or their electricity and maintenance costs, Gupta said.During the 2001 earthquake, all earthen pots were broken. "Some people told me the poor people's refrigerators are broken. They referred to the 'matkas'(pots) as refrigerators. It struck me then that I must try to make a fridge for those who cannot afford to buy a fridge," says Prajapati.The patent winning Mitticool has been the most challenging product for him. It needed a lot of experimenting. He started work on it in 2001, the product was finally ready by 2004.In 2005,he started the non-stick tava (pan) business. "My wife could not buy a non-stick tava as it was costly. So I thought many people would be facing the same problem. That's when I designed the non-stick tavas, priced between Rs 50-100," he says.

For the villagers of Tamkuha, a dusty hamlet in rural Bihar, Gyanesh Pandey is the modern day alchemist who transformed piles of discarded rice husk to light up their lives.Today, every household in Tamkuha has been literally lifted out of darkness with an uninterrupted, self-sufficient power supply, which many towns and cities in India still have not been able to achieve even 60 years after Independence.Tamkuha, however, is not alone in this matter. Around 50,000 villagers in 120 villages across Bihar and 3 villages in Uttar Pradesh have been benefited by these 'green' power plants.For villagers, this cheap and eco-friendly model of generating electricity is a miracle that has transformed their lives. No wonder Gyanesh Pandey, the 33-year-old Non-Resident Indian has won the hearts of many poor villagers. "Aap Bhagwan ho (you are God!)!" said a poor villager to Gyanesh Pandey, when he first saw his house lit up.

Social entrepreneur Anshu Gupta who founded GOONJ, a system that transfers used clothing and household goods from India's rich to its poorest communities, also featured on the Forbes list.Gupta collects 30 tonnes of cloth every month and distributes it across 20 states. "He has an amazing reach, a simple network and excellent supply chain management," Anil Gupta said.

Anil Gupta said Chintakindi Mallesham, inventor of the Laxmi Asu Machine, "ignited a revolution in India's weaving community."Mallesham's machine can make six saris worth of material in one day, and "no human effort is required beyond placing thread on the machine and removing the material after the process is complete."

Next on the list is Future Group chairman Kishore Biyani . Called the 'Sam Walton of India' , Biyani's company operates about three million square feet of retail space in 25 Indian cities.

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