Make in india

Rural entrepreneurship: challenges and

opportunities
Mamatanjali Parida
Chandrika Prasad Das
Student, P.G. Department of Commerce
Utkal University, Vani Vihar, Bhubaneswar

ABSTRACT
India lives in villages. So development of Indian economy is
depends on the development of rural areas. As we are
progressing through the industrialization process and industrial
sector plays a pivotal role in a developing nation like India. But,
there is a need of balanced development. This can be possible
only when we focus towards the development rural
entrepreneurs and small scale industries as compared to large
scale industries. But, rural entrepreneurs are facing many
challenges like negative attitude of people, raising of finance,
infrastructure and many more on their way to success. These
challenges can overcome by exploring the opportunities
available to them. The government of India also taking initiative
like Make in India to help the entrepreneurs. The only need is
organize the plan effectively and creat a development oriented
environment.

INTRODUCTION
The economic development of a Nation depends on its
industrial development .The the industrial development is
based on the entrepreneurial competencies of people. Hence,
the concept of building entrepreneurship promotion is need of
the hour.
Defining entrepreneurship is not an easy task .To some
entrepreneur means primarily innovation, and to some others it
means risk taking .An entrepreneur is a person who either
creates new methods of production, new product, new market,
finds new source of supply and new organizational forms by
taking risk.
Therefore, entrepreneurship and industrialization is a need
of any developing country like India to explore new market for a
new product. But, the problem is essentially lopsided
development of some area i.e. urban, at the cost of
development of some other place i.e. rural areas. The ultimate
outcome is underdevelopment. For example: we have seen
unemployment or underemployment in villages lead to the
rushing of rural people into cities. We have to create a situation
, so that the migration from rural areas to urban areas comes
down.
But, who should be capable of doing this for the betterment
of rural people? This is possible when young consider rural
areas as places of opportunities by which we can decrease the
outflow of rural people and attracting them back to the villages.

OBJECTIVEs
To analyse various problems faced by rural entrepreneurs
To find out the opportunities available for them
To introduce some suggestive measures to avoid those
problems

RURAL ENTREPRENEURSHIP
Rural entrepreneurship implies entrepreneurship emerging
in rural areas. Rural entrepreneurship means rural
industrialization. Industrialization cant originate or sustain
without entrepreneurship whether rural or urban. Rural
industrialization means encouraging location of large and small
scale units away from urban areas or planned shifting of units
from urban areas to rural area. Rural entrepreneurship should
not only set up enterprises in rural areas but should be also
using rural produce as raw material and employing rural people
in their production processes. Rural entrepreneurship is, in
essence, that entrepreneurship which ensures value addition to
rural resources in rural areas engaging largely rural human
resources. In other words, this means that finished products are
produced in rural areas out of resources obtained in rural areas
by largely rural people. Rural entrepreneurship can stop the
increasing migration towards cities as it provides wide range of
employment opportunities to the village people.
Challenges Faced by rural entrepreneurs
Despite of recommendable contribution to the nation's
economy, the Rural entrepreneurs do not get the required
support from the concerned Government Departments, Banks,
Financial Institutions and Corporate, which become a handicap
for more competitive in the National and International Markets.
Rural entrepreneurs in India could not progress satisfactorily
due to various problems they are facing while running

enterprise. In spite of having huge potentiality rural

entrepreneurs facing different problems are given below :
Family challenges
It is one of the important problems that to convince to
opt for business is not an easy task for a rural entrepreneur.
The first thing compared is Will you make more money in the
business at your choice or s a successor of a family business.
This is where it becomes almost impossible to convince that
you can generate more cash from the business with your
passion over the normal agricultural activities.
Social challenges
Family challenges are always at the top because that is
what matter the most but at times social challenges are also
very important. Rural people are not that educate to support
an entrepreneur who goes to start a business leaving the
farming .
Financial challenges
The problem arises in front of every entrepreneur is the
financial problem. Rural entrepreneurs are suffering more than
the large industrials for raising capital. No financial institutions
believe their business ideas and provide credit assistance to
them. So they suffer more to start a new business initially.
Technological challenges
Rural entrepreneurs are not known about the
technologies available and which is ideal for their business.
They can avail technology by taking suggestion of some others
but they have no sufficient amount of capital for that.
Infrastructure sickness
Still there are many leaving without roof in villages.
In this case an entrepreneur suffers from that loo fools. Lack of
infrastructure facilities available in rural areas also create
problem for rural entrepreneurs. They could not able to get
timely raw materials and other tools require for production for
the transportation problem.
Power supply
After five decades of Independence still there are
many villages without electricity. So lack of power supply in
rural areas is not suited to an entrepreneur for production or
doing business.
Problem of skilled manpower

It is not possible to get skilled workforce in rural areas

due to lack of education or vocational education system
specially in India. Often the rural entrepreneurs fail because
inefficient human factor and unskilled manpower create
innumerable problems for the survival of small industries. Nonavailability of adequate skilled manpower in the rural areas
poses problem to rural entrepreneurs.
Absence of organised market
One major problem of rural industries is marketing.
These units often do not possess any marketing organization
and consequently their products compare unfavourably with
quality of the products of the large entrepreneurs. They also fail
to get information about consumers taste and preferences for
the product. These problems are not allow them to sustain in
the market.
Lack of machinery and equipment
Rural enterprises are striving hard to employ modern
machineries and equipment in their process of production in
order to compete with large industries. Most of the small units
employ outdated and traditional technology and equipment.
Lack of appropriate technology and equipment create a major
stumbling block for the growth of small-scale industries.
Opportunities Available to Rural Entrepreneurs
In spite of various problems many opportunities are
also available to the rural entrepreneurs to develop their
potentiality and explore the world market. Our government also
doing so many development programmes for the rural and
small scale entrepreneurs. The available opportunities are
described below :
Crashed Scheme for Rural Development
Food for Work Programme
National Rural Employment Programme
Regional Rural Development Centres
Entrepreneurship Development institute of India
Bank of Technology
Rural Innovation Funding
Social Rural Entrepreneurship.
Venture capital funding

 Innovative financial services like leasing, hire purchase

etc.
SUGGESTIONS
It is rightly believed that India has talent pool with
limitless potential to become entrepreneur. Therefore, it is
important to get committed to creating the right environment
to develop successful entrepreneurs. We have to take some
initiative steps to develop the entrepreneurs in rural areas.
Entrepreneurial thinking not only by farmers but also by
everyone and every development organisations. For a balanced
development in industrial level we have to focus on some
specific areas like:
Policies and special programmes for channelizing
entrepreneurs
Create the Right Environment for Success
Ensure that Entrepreneurs have access to the Right Skill
and avail skilled workforce in rural areas.
Ensure that Entrepreneurs have access to Smart Capital
Enable Networking and Exchange that they can get all
information about world market
Government Support: Both the Central and State
Governments should take more interest in promoting the
growth of entrepreneurship.
Provide different services in the area of finance,
marketing, research etc.
CONCLUSION
So in conclusion we can say that the rural
entrepreneurs more than increasing national income by
creating new jobs act as a positive force in economic growth.
The promotion of rural entrepreneurs is essential in developing
economies like India to achieve equitable distribution of
income, wealth, economic self dependence and entrepreneurial
development. But , finding, encouraging and motivating
entrepreneurs in rural areas is not an easy proposition. Central
and state government to have to change some of the ways we
currently do business to be really useful to rural based

entrepreneurship. We have also to change our mindset about

the entrepreneurship.