A Study On Rural Entrepreneurship Development

“A STUDY ON RURAL ENTREPRENEURSHIP DEVELOPMENT
CHALLENGES AND OPPORTUNITIES IN KOLAR DISTRICT”
CHAPTER-1
INTRODUCTION
The term “Entrepreneur” is derived from the trench word “ENTERPRENDRE” Its
meaning is to “undertake”. The Simple meaning of an “Entrepreneur” is “a person who is
responsible for setting up a business or an enterprises.”The term “Entrepreneur” is defined in
a variety of ways yet, no consensus has been arrived at on the precise skills and abilities that
make a person a successful entrepreneur.
To promote entrepreneurs who would take to rural entrepreneurship in

utmost Earnestness and sincerity is to ensure rural development. Such enterprising people
who prefer rural entrepreneurship may or may not themselves belong to rural areas.
Entrepreneurs taking to 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.
Economic Development in every economy is a continuous activity. The process of

socio-economic change is an intrinsic part if human activity. Man continuously works for
utilizing the gift of nature and make is living comfortable. He always thinks of and works for
maximizing economic growth. This is what is happening in every economy. The government
evolves effective programmes to co-ordinate social, economical, technical / technological and
cultural factor for the balanced and sustained rate of economic growth economic planning is
increasingly becoming an effective instrument of socio-economic transformation.
“Economic development originates and tasters in relation to the strength and health of
the local entrepreneurship and depends on the rate of its generation and equality to the
intensity of its sense of social responsibility. It’s index of managerial capabilities.”
DEPARTMENT OF COMMERCE, P.G .CENTRE, KOLAR Page 1

This is one such law of dynamic of economic development which clearly states that human
beings is the key factor in economic development and “entrepreneurs” is the driving force.
The entrepreneur may or may not be of rural origin. The entrepreneurs may be from
anywhere, but their enterprises have to be located in a rural area, using mainly local resources
both material as well as human. Also, the enterprises have to be located in a rural area though
it need not be actually using 100 percent local material and human resources. Some amount
of material and some people may be from urban cities. But certainly large portion of material
used has to be locally produced and an appreciable number of people engaged in the
production of finished goods should be people based or living in rural areas. Even a unit set
up by the government or a large company in a rural area could promote rural
entrepreneurship depending on how much opportunities it throws up for entrepreneurs to use
local resources, to fulfill the demands of such large units and the multiplier effect such large
units create. Any large unit coming up in rural areas more or less does have an impact
inactivating the surrounding economy for entrepreneurs to take advantage of. This is
precisely the reason why it is recommended to shift industries from urban centers to
neighboring rural areas. Such shifting initially may be a difficult proposition but in the long
run beneficial in many ways. Moreover, it would throw up lots of opportunities in the rural
areas and result in decongestion of the urban centers. Urban slums would start disappearing
with large number of industries getting shifted to rural areas resulting in increasing
opportunities in the rural areas. Thus, both the rural as well as urban areas get benefited by
setting up more industrial units in the rural areas, making rural areas attractive locations for
investments.
On the Indian scene, there is an impressive growth of entrepreneurs particularly in the

small scale business sector. Small business houses today are producing wide variety of
sophisticated goods in different product line requiring high degree skills and precision.
HISTORY OF RURAL ENTREPRENEURSHIP IN INDIA:

We are a very young nation –just over 55 year since independence- setting out on a
path of sustained economic growth, for decades to come. We already have over a billion
fellow Indians, within the next 20 year; we will have 400 million people below the age of 35
years –more than the entire population of the United States! Each person, in this bold new

generation, will be in the prime of his or her life, striving for a better tomorrow – creating, in
the process, new growth opportunities, for budding entrepreneurs.
On the most conservative basis, our domestic consumption, in virtually any sector,
has the potential to at least double, or trouble, from current levels- perhaps, just to catch up
with a country like China.
Then, there is the entire global opportunity, across diverse sectors internationally; the
“Made in India” tag is now an increasingly respected brand, valued for quality, reliability,
and competitiveness. Truly, with economic reforms in the country, and with the virtual
removal of all trade barriers, the world is now our market and our opportunity.
MEANING OF ENTREPRENEUR:
“Entrepreneurs” are people who create and grow enterprises. “Entrepreneurship” is

the process through which entrepreneurs create and grow enterprises. “Entrepreneurship
development” refers to the infrastructure of public and private policies and practices that
foster and support entrepreneurship.
Definition of Entrepreneur:
 One who organizes, manages, and assumes the risks of a business or enterprise.
 A person who starts a business and is willing to risk loss in order to make
money.
ENTREPRENEURSHIP:
The concept of Entrepreneurship has a wide range of meanings. On the one extreme
an Entrepreneur is a person of very high aptitude who pioneers change, possessing
characteristics found in only a very small fraction of the population. On the other extreme
of definitions, anyone who wants to work for himself or herself is considered to be an
entrepreneur.

The word entrepreneur originates from the French word, entrepreneur, which means
"to undertake." In a business context, it means to start a business. The Merriam-Webster
Dictionary presents the definition of an entrepreneur as one who organizes, manages, and
assumes the risks of a business or enterprise.
Meaning of Entrepreneurship:
1) Entrepreneurship is the personality of mind to take calculated risk with confidence to
achieve a pre-determined business or industrial objective. In substance, it is the risk
taking ability of the individual, broadly coupled with correct decision making.
Entrepreneur Entrepreneurship Enterprise
Person Process of action Object
Understanding the Concepts, Entrepreneur, Entrepreneurship and Enterprise.
Definitions of Entrepreneurship:
 Entrepreneurship is a multi-dimensional concept defined by different people in
different ways. “Adam smith”. Few definitions as perceived by traditional
economists and later accepted by all are given here to understand the concept.
 According to Adam smith “Entrepreneur is a person who only provides
capital without taking active part in the leading role in enterprise.”
 According to Adam smith “Entrepreneur is a proprietary capitalist, a
supplier of capital, at the same time, working as manager intervening
between labour and consumer.”

RURAL ENTREPENURSHIP:
INTRODUCTON OF ENTREPRENEUR:
Entrepreneurs are people who create and grow enterprises. Entrepreneurship is the
process through which entrepreneurs create and grow enterprises. Entrepreneurship
development refers to the infrastructure of public and private policies and practices that foster
and support entrepreneurship.
RURAL ENTREPRENEURSHIP:
The problem is essentially lop-sided development which is development of one area at the cost
of development of some other place, with concomitant associated problems of under development. For
instance, we have seen unemployment or underemployment in the villages that has led to influx of rural
population to the cities. What is needed is to create a situation so that the migration from rural
areas to urban areas comes down.
Meaning of Rural Entrepreneurship:
Entrepreneurship emerging in rural areas is called rural Entrepreneurship.

Establishing industries in rural areas refers to rural Entrepreneurship. Rural entrepreneurship
is synonymous of rural industrialization.
RURAL ENTREPRENEURSHIP IN INDIA:

1. SMALL INUSTRY DEVELOPMENT ORGANISATION (SIDO):
Aims and objectives:
“Imparting greater vitality and growth impetus to the small, tiny and village
enterprises in terms of output, employment and exports and instilling a competitive culture
based on heightened technology awareness.”
The Small & Medium Enterprises (SME) sector is one of the fastest growing
industrial sectors all over the world. Many countries of the world have established a SME
Development Agency (SMEDA) as the nodal agency to coordinate and oversee all

Government interventions in respect of the development of this sector. In the case of India,
though a separate medium sector is not defined, the office of Development Commissioner
(Small Scale Industries) also knows as Small Industries Development Organization (SIDO)
functions as the nodal Development Agency for small industries. SIDO functions under the
Ministry of SSI (Ministry of small scale Industries.)
SIDO provides a wide spectrum of services to the small industries sector. These
include facilities for testing, tormenting, training for entrepreneurship development,
preparation of project and product profiles, technical and managerial consultancy, assistance
for exp orts, pollution and energy audits etc. SIDO provides economic information services
and advises Government in police formulation for the promotion and development of SSIs.
The field offices also work as effective links between the central and the state Governments.
Services:
The main services rendered by DC SSI office are
1. Advising the Government in policy formulation for the promotion and development
of small scale industries
2. Providing techno-economic and managerial consultancy, common facilities and
extension services to small scale units.
3. Providing facilities for technology up gradation modernization, quality improvement
and infrastructure.
4. Developing Human Resources through training and skill up gradation.
5. Providing economic information services.
6. Maintaining a close liaison with the Central Ministries, Planning Commission, state
Governments, Financial Institutions and other Organizations concerned with
development of Small Scale Industries.
7. Evolving and coordinating polices and programmers for development of Small Scale
Industries as ancillaries to large and medium scale industries.
8. Monitoring of PMRY (Prime Minister Rojgar Yojna) Scheme.

Institutional Network of SIDO:
 The Development Commissioner (SSI) heads the Small Industry Development

Organization (SIDO),
 Which has a network of 30 Small Industries Service Institutes ( SISIs), 28
Branch Small Industries Service Institutes (Br. SISIs)
 4 Regional Testing Centers (RTCs) , 7Field Testing Stations (FTSs),
 19 Autonomous bodies which include 10 Tool Rooms(TRs) and Tool Design
Institutes (TDI),
 4 Product-cum-Process Development Centers (PPDCs centre (ESTC),
 1 Institute for Design of Electrical Measuring Instrument (IDEMI) 2 National
Level Training Institutes, and 1 Departmental Training Institute and one
Production center.
Regional Testing Center (RTC):

 Provide Testing facilities for quality up gradation
 Training/ constancy in testing, quality control, quality management
 Process quality control systems, etc.
 Product specific testing facilities are provided by field Testing Stations (FTSs)
 List of Autonomous Bodies under SIDO
 Fragrance & Flavour Development Centre, (FFDC), P.O Makrand Nagar,
Kannauj , Farrukhabad- 209 726 (U.P)
 National Institute of small Industry Extension Training (NISIET),
HYDERABAD- 500 045.(A.P)
 National Institute for Entrepreneurship, NEW DELHI- 110 020.
 Central Footwear Training Institute, AGRA-282 007 (U.P)
 Central Tool Room &Training Centre, KOLKATA- 700 108 (west Bengal)
 Central Tool Room, LUDHIANA -141 010 (Punjab)
 Central Institute of Tool Design, HYDERABAD- 500 037(A.P)
 Central Institute of Hand Tools, JALANDHAR- 144 008 (Punjab)
 Indo German Tool Room, INDORE -452 003 (M.P)
 Indo German Tool Room, AHMEDABAD -382 445 (Gujarat)

Central Footwear Trainings Institutes (CFTIs):
 Develop footwear designing to promote exports

 Training for manpower in Footwear Industry.
 Sub –contract Exchanges for Ancillary Development (SCXs)
 There are 61 Sub –Contracting Exchanges (34 attached to SISIs and Branch SISIs and
27 by Industrial Associations) to provide marketing support and serve as a forum to.
 Register and create database of the spare manufacturing/ service capacity of SSI
Create database of requirement of large/medium units and match the requirements
with the spare capacity available with small units. Arrange Buyer- Seller Meets,
organize vendor exhibitions, seminar, workshops for large- small units coordination,
quality up gradation, export promotion, etc and facilitate flow of data on vendor
development.
2. NATIONAL SMALL INDUSTRIES CORPORETION Ltd (NSIC):
The NSIC is directly operating different programmers by professionals through 8

regional offices, 5 Technical Service Centre’s, 2 foreign offices, 2 software Technology
parks, 17 branch offices located in almost all the states and 3 Technical services Extension
Centers.
Major Schemes:
Composite Term Loan Scheme
To promote small- scale sector, NSIC has launched a Composite Term Loan Scheme for the
benefit of existing and prospective entrepreneurs to acquire land and building, machinery
and equipment and working capital under one roof to the tiny units.
Machinery and Equipment:

Hire purchase scheme
 Supply of indigenous and imported machinery and equipment on easy financial
terms.
 Mainly targeted on first generation entrepreneurs.

 Special focus on women entrepreneurs, weaker sections, handicapped and ex-

servicemen and SC/ST entrepreneur.
 Creating a sound and formidable and entrepreneurship base.
 Faster growth and employment.
3. SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI):

The SIDBI was established on April 02, 1990 by Government of India, as a
wholly owned subsidiary of IDBI. It was delinked from IDBI w. e. f March 27, 2000.
SIDBI is headed by the Chairman & Managing Director. The SIDBI is operating different
programmes and schemes through 5 Regional offices and 33 Branch offices.
SCHEMES FOR MITIGATING THE PROBLEMS OF THE SSI SECTORS:
1) Delayed payment of Bills
Schemes operated by SIDBI:
 Direct Discounting of Bills (Components) Scheme

 Direct Discounting of Bills (Equipment) Scheme.
 Direct Factoring Services.
 Bills Rediscounting Scheme Against Inland supply Bills of SSI
 Invoice Discounting Scheme.
2) Obsolescence of Technology
 Technology Development and Modernization Fund (TDMF) Scheme (both

direct and indirect assistance)
 ISO 9000 Scheme (both direct and indirect assistance)
 Technology Up gradation fund scheme for Textile Industry (both direct and
indirect assistance)
 Tannery Modernization Fund Scheme (both direct and indirect assistance)

3) Working Capital Availability

 Single Window Scheme Through primary Composite Loan Scheme Lending

Institutions
 Working Capital Term Loan Direct Assistance
 Short Term Loan
4) Marketing Inadequacies
 Schema for Financing Activities Relating to Marketing of SSI products.
5) Lack of Suitable Infrastructure
 Scheme of Direct Assistance for Development of Industrial Infrastructure for

SSI Sector
 Scheme of Integrated Infrastructural Development (IID)
6) Insufficient Export Credit
 Export Credit
 Pre- Shipment Credit in Foreign Currency
 Scheme for Export Bills Financing.
 Rupee Pre-Shipment/ Post-Shipment Credit
 Foreign Letters of Credit
7) Venture Capital Availability
 Venture Capital Scheme

8) Human Resources Development
 Entrepreneurship Development Programmes

 Small Industries Management Programme
 Skill –cum- Technology Up gradation Programme.
New Initiatives of SIDBI:

Two Subsidiaries viz. SIDBI Venture capital Limited and SIDBI Trustee Company Limited
formed to oversee Venture Capital.
Technology Bureau for small Enterprise formed to oversee Technology Transfer, Match
making Services, Finance syndication and facilitating joint Ventures.
 Marketing Finance & Development Department to set up Marketing
Development Assistance Fund
 International Finance Department
 International Co-operation Division
 Foundation for Micro Credit
Aims & Objectives: (SIDBI)

 Agro –Technology & Extension Services.
 Process Technology.
 Fragrance & Flavor Development and its Applications.
 Quality Assessment and Standardization.
 Information, Documentation, Packaging and Marketing.
PROBLEMS FACED IN GROWTH OF RURAL ENTREPRNEURS:

1. Water Problems.
2. Labour Problems.
3. Power Problems.
4. Paucity of funds.
5. Competition.
6. Middlemen.

7. Legal formalities.
8. Procurement of raw materials.
9. Risk element.
10. Lack of technical knowledge.
11. Lack of infrastructural facilities.
12. Poor of products.
13. Negative attitude.
14. Marketing problems.
15. Lack of adequate knowledge and information.
16. Raw materials.
17. Legal problems.
1. Water Problems:
Water issues in developing countries include scarcity of drinking-water, floods, the
siltation of river systems, as well as the contamination of rivers and large dams. ...
Barriers to addressing water problems in developing nations include poverty, educational,
and poor governance.
2. Labour Problems:
Rural entrepreneurship is labour intensive and provides a clear solution to the growing
problem of unemployment. Development of industrial units in rural areas through rural
entrepreneurship has high potential for employment generation and income creation.
3. Power Problems:
Rural entrepreneur uses the scarce resources in the most efficient manner thereby
increasing profits and decreasing costs. ... Most of the rural entrepreneurs face
peculiar problems like illiteracy, fear of risk, lack of training and experience, limited
purchasing power and competition from urban entrepreneurs.

4. Paucity of funds:
Most of the rural entrepreneurs fail to get external funds due to absence of tangible
security and credit in the market. The procedure to avail the lone facility is too time –
consuming that its delay often disappoints the rural entrepreneurs.
5. Competition:
Rural entrepreneurs face severe completion from large sized organizations and
urban entrepreneurs. They incur high cost of production due to high input cost.
6. Middlemen:
Middlemen exploit rural entrepreneurs. The rural entrepreneurs are heavily dependent
on middlemen for marketing of their products who pocket large amount of profit.
7. Legal formalities:
Rural entrepreneurs find it extremely difficult in complying with various legal
formalities in obtaining licenses due to illiteracy and ignorance.
8. Procurement of raw materials:

Procurement of raw materials is really a tough task for rural entrepreneur, they may
end up with poor quality raw materials, may also face the problem of storage and
warehousing.
9. Risk element:
Rural entrepreneurs have less risk bearing capacity due to lack of financial resources
and external support.
10. Lack of technical knowledge:

Rural entrepreneurs suffer a severe problem of lack of technical knowledge. Lack of
training facilities and extension crate a hurdle for the development of rural
entrepreneurship.
11. Lack of infrastructural facilities:

The growth of rural entrepreneurs is not very healthy in spite of efforts made by
government due to lack of proper and adequate infrastructural facilities. Rural areas are

characterized by poor infrastructural farcicalities in the field of roads, electricity, street

lighting, road transport etc. which hampers the smooth movement of various industrial
activities. This is a major problem faced by rural entrepreneurs.
12. Poor of products:

Another important problem is growth of rural entrepreneurship is the inferior
quality of products produced due to lack of availability of standard tools and
equipment and poor quality of raw materials.
13.Negative attitude:
The environment in the family, society and support system is not conducive to
encourage rural people to take up entrepreneurship as a career; It may be due to lack of
awareness and knowledge of entrepreneurial opportunities.
14. Marketing problems:

Marketing of rural products has not been well developed. Promotion, distribution and
implementation of customer feed-back is lacking. Rural industries cannot compete with
their urban counterparts. Dealers exploit the rural industries in the traditional sector. Lack
of proper communication facilities and marketing information adds to the problem to
large extent.
15. Lack of adequate knowledge and information:

Though information technology has substantially developed in the modern world and
has penetrated into the rural areas through internet, rural people hardly availed its
benefits. Because, rural people do not have adequate information avenues. They are not
knowledgeable, trained and motivated to achieve more and more in their own sphere.
16. Raw materials:

Rural industries face a tough task in procuring and storing raw materials. Since rural
industries are small they procure raw materials from middlemen at higher prices. Lack of
warehousing facilities in the rural sector also costs more towards storing of raw materials.

17. Legal problems:

Rural industries need compliance of various legal formalities in obtaining the
government’s approval and license for carrying out industrial activities. But rural
entrepreneurs find it extremely difficult to comply with various legal formalities due to
sometimes complex legal provisions or illiteracy and ignorance.
Besides the above problems, lack of awareness and knowledge about the importance
of rural industries stand as a major problem before rural entrepreneurs. Added to this
another problem crops up relates to the disinterest shown by rural people to assume rural
entrepreneurship as career. The ninth plan has also sorted out the problems of rural
industries as follows:
 Inadequate flow of credit

 Use of obsolete technology, machinery and equipment
 Poor quality standards
 Inadequate infrastructural facilities.
RURAL DEVELOPMENT SCHEMES
1. RURAL CLINIC SERVICE (RCS)
Rural Clinic Service (RCS) ,a novel scheme was introduced in our Bank during
1983.The objective of the scheme is to provide basic medical services to the backward
villages lacking medical facilities besides encouraging unemployed doctors to set up clinics
there by promoting self-employment. Monitory incentives will be given to the doctors who
are willing to extend medical services besides reimbursement of cost of medicines, to enable
them to provide free medicine to poor patients.
Our bank is implementing two types of RURAL CLINIC Schemes through rural
branches at present
 Rural clinic at village
The clinic will be opened in the village which is not having medical doctor and
medical facilities. The clinic will be run by willing qualified /registered doctors in Allopathic,

Ayurvedic, Homeopathic or other recognized branches of Indian medicine. The clinic will
function for 6 hours per day for 6 Days in a week.
 Rural Clinic Service at Selected Branch Premises:
The clinic will be opened in the branch premises of a rural branch, in case of non-
availability of suitable premises in villages. The necessary infrastructure to start the clinic
will be provided by the bank. The clinic is run by willing qualified /registered doctors in
Allopathic, Ayurvedic, Homeopathic or other recognized branches of Indian medicine. The
clinic will function for 3 days in a week on alternate days without affecting day to day
functioning of the branch. This will facilitate the visiting customers of branch to avail the
medical facilities also, in one visit
2. JALAYOGA SCHEME
The scheme introduced in the year 1996 to commemorate Bank's 90th year of establishment
to provide safe drinking water to SC/ST/Backward communities of rural areas coming under
lead districts of the Bank. Acute shortage of drinking water faced by the impacted community
has driven the Bank to respond to their needs. Governments alone cannot meet the basic
needs of the people and this has prompted the Bank to take up community development
projects like JALAYOGA.
The Bank through its operating mechanism identifies the areas for implementation of the
scheme. The necessary land is allotted/granted by the Village Panchayat/ Village
Development Committee. The Bank funds the project and implements through its branches.
A sum of Rs. 3.00 lakhs per project is released and any extra cost towards the project is to be
borne by the local bodies. After completion, the system is handed over to the local bodies for
future maintenance and servicing.

A PIONEERING EFFORT FOR HELPING WOMEN ENTREPRENEURS IN

MARKETING:
Canara Bank, as part of its Corporate social responsibility (CSR) initiatives has sponsored a
Retail Mobile Marketing Van for Display cum Sale of House hold products, articles made by
Self - Help Groups, Small women entrepreneurs, Artisans, Self Employed women etc.
This van is custom built high tech, solar powered, equipped with computerized billing,
swiping machine for credit/debit card acceptance. This marketing van will be stationed in
important locations of Bangalore to enable the citizens of the city to see and purchase the
products manufactured by artisans and other underprivileged women entrepreneurs. This
Mobile Van thus provides a platform for publicity of products in the entire city instead of
being restricted to one area/locality.
This is a hand holding effort by Canara Bank in support of Women entrepreneurs, SHG’s and
SHG members etc.
INSTITUTIONAL SUPPORT FROM TO RURAL ENTREPRENEURS:

1. KSFC: (KARNATAKA STATE FINANCIAL CORPORATION):
Karnataka state financial corporation was established by the government of Karnataka

in march 1959 under the state financial corporation’s Act 1951 for extending the financial
assistance for setting up of tiny, small and medium scale industrial units in the state since
then it has been working as a regional industrial development bank of Karnataka. The loan
sanctioned by KSFC as at 31st march 2001 amounted to Rs. 6237.63 crores to 150013
projects.
Quality policy:
“KSFC endeavors to create satisfied customers through equate and timely financial
assistance guidance. This shall be achieved through professional management and team
work .”
Quality objectives:
 To ensure customer satisfaction through and professional management.

 To extend effective guidance to entrepreneurs for successful accomplishment of their

business ventures.
 To provide quality service on a continuous basis to the satisfaction pf customers.
 To encourage everyone in the organization to upgrade and enhance there skill and
knowledge with appropriate training for improving quality of services to the
entrepreneurs.
 To motivate and involve everyone for achieving organizational growth through
implementation of the document quality marketing system.
2. SMALL ENTERPRISES ORGANIZATIONS:
The large number of official assistance institutions at national, state, and lower levels still
have problems in reaching their dispersed clientele.
1. Federation of Associations of Small industries of India (FASII):

Established in 1959, whose main aim is to promote the development of small- scale
industries. Small- Scale industry cooperatives have been organized in almost all fields of
village and small industries. In the case of many subsectors the progress has not been
significant so that there are still under 0.1 million cooperatives. At the national level, a
National Federation of industrial Co-operatives (NFIC) exists which assists in local and
overseas promotion and marketing of cooperatives products and imports scarce raw materials,
components and goods for its members.
Assistance to small industries development :

Assistance in expanding markets (including preference in purchasing by government;
support in joint tendering for government purchase contracts; price preference ; and
reservation of certain product lines or industries for only small- scale manufacturers).
Supply of essential raw materials. Provision (and subsidy on cost) of investment and working
capital. Provision of technical assistance and other advisory services. Banks, cooperative
Banks and Regional Rural Banks State Financial Corporations, State industrial Development
Corporations, and the National Small Industries Corporation.

There has been consistent growth in the availability of credit facilities extended by
Commercial Banks, During the 5- year period of 1979/83 the annual disbursement had nearly
doubled in volume to Rs. 50506 million lent to 1.23 million enterprises . Such loans are
covered by the industrial Development Bank of India (IDBI) under its refinance scheme. All
loans up to Rs .0.5 million are covered by the automatic refinance scheme at the concessional
rate of interest.
2. State Finance Corporations:

State Finance Corporations also lend to the VSI (Village and Small Industries sector
( also eligible for refinance by IDBI at concessional rate of interest) The IDBI itself lends
heavily to SSI: the total assistance provided by it to the VSI sector up to March, 1986 was Rs
52850 million. Its annual financing has doubled between 1979/80 and to 1982/83 when it
reached Rs. 2902 millions, which included refinancing of advances made by other
institutions.
To Four Wheelers Body Building Manufacturing:

1) Two Wheelers manufacturing
2) Milk Processing
3) Sponge iron
4) Fruits & Vegetable Processing
5) Automobile parts manufacturing
6) Ready Made manufacturing
7) Bio-Tech Park
8) Software Park
9) Hand tool Centre
10) Spun Silk
11) Pharmaceuticals products
12) Granites Manufacturing
13) Mango Processing and its Products
14) Cashew Processing and its Products

TO SERICULTURE:
Play a pivotal role in economic development of the country by generating
Employment, income as well as foreign Exchange in India thousands of mailers practice
sericulture silk reeling and processing for their ill hood.
Associated with both:
Sericulture & industry presents a large number of players in areas of like.
 Food plant cultivation

 Silk worm rearing
 Reeling
 Twisting
 Spinning
 Post yarn processing that includes dyeing, weaving, printing, finishing, trading
& export.
Opportunities of sericulture:
 Agricultural economy development
 Industrial job vacation
 Foreign exchange natural Economy
 Farmer produced by good quality silks
Objectives:
 Major to create job sector of in rural Entrepreneurs
 To best the Indian Economy through the sale of quality silks
 Control of decision and out breaks like a F M D , HS PPR, PET, hanthrance.
 Giving technical guidance & information. Like animal brain, activity and
facilities interest farmer and agriculture.
Supporting To :
Through bank NABARD, DCC Banks Higher good opportunities because of meet,
heg higher population, natural climates water & irrigation, facilities .

To Schemes of animal husbandry:

 SCP=Special component plan
This schemer giving on subsidy SC/ST upto60 percent and 40
percent bank loan.
 TSP =Tribal sub-plan
This plan up to 75 percent subsidies &25 percent bank.
 RKVY= Rashtria krushi vicause yojane.
Supporting from :
 Government schemes like
1. Central Government schemes like
2. State Government schemes like
 Nationalized banks like
1. DCC
2. NABARD
3. Co-Operative banks
4. Commercial banks
To Veterinary animal husbandry (VAH):

Veterinary animals husbandry started from 1948 that’s main schemes of catholic
scheme. Veterinary.
objectives:
 Treatment of animal an decision
 Up gradation of breed through artificial
 Information in terms of higher milk.
 Chaff cutters 90 percent milking mission 90 percent subsidies silly future growth upto
25000 supporting local cattelcoff erasing for single person 4000 percent
Challenges:
 Infrastructure facilities
 Found allocation

 Scarcity of staff.
 To conduct entrepreneurship development programmes
 To initiate promotional programmes.
1. DISTRICT INDUSTRIAL CENTRE:

 The DIC programme was started 1978
 The DICs are as a single window infracting agency at district level providing service
and support to small entrepreneurs under a single roof.
Functions:
 To help the specialized training organization to conduct entrepreneur development
programmes.
 To conduct artisan training programme
 To help the entrepreneurs in obtaing required license/
 (permits/clearance.)
2. NATIONAL SMALL INDUSTRIES CORPORATION (NSIC):

 Performance & credit rating give credit rating by International agencies subsidized for
small entrepreneur up to 75 percent get latter credit terms from bank & export order
from foreign buyers.
KARNATAKA STASTE WOM EN’S DEVELOPMENT CORPORATION

(KSWDC):
Karnataka state women’s Development Corporation is implementing the Swashakti
project in sever District. This Established in the year of 1987, The state as well as central
government has been launching different packages to encourage establishment. Of industrial
activities and implementing this Kolar District being backward concessions and incentive
have been published.
It so, the procedure you have to follow, the officers whom you have to contact and the
various concession and incentive available under different programmers like.
 Prime Minister’s RozgarYojana (PMRY)
 Yashaswini Programmes.

 Swashakti & Shree Shakti Programmes

 Different types of training for self –Employment Programmes
Rural youths are being imported with training in different activities to enable then to
improve their skills. Special schemes have been formulated for the benefit of SC/ST Training
can be avail under the
Following programmes :
a) Special component plan
b) Tribal sub plan
c) Rural atrium training programme
d) Bee- keeping programme
e) Departmental training programme
f) Vishwa Schemes
g) Entrepreneurial development programme
Karnataka Milk Federation limited (KMF ):

Kolar- The “Silk Land” is now a “Milk Land” This union became autonomous in
1987 and has more than 1645 Dcs covering 11 Taluks innovation include here.
 Ultra high temperature treatment adopted for good life a 60 days shelf life product
without refrigeration
 Smart and Slim ‘Low fat, vitamins rich milk for health conscious sectors.
 Flavored drinking yoghurt.
 Ghee in pearl pet jars
 Cheese plant
It has chilling centers at chintamani -100 TLPD sadali-100 TLPD and Gowrididanur-
100 TLPD. total chilling capacity 300 TLPD. There is bulk milk collars 137. Automatic milk
collars 456 and community milking partor-52 in the union.
The union procedures on an AVG 7.20 lac kg/ day of milk and sale 2.24 Lac liters/per

(Ambedkar development corporation):

Karnataka scheduled caste & scheduled tribe Development corporation limited ST/SC.DC)
Major activities :
 Financial assistance to SC/ST,S
 Providing irrigation facilities to land belonging to SC/ST s
 Providing agricultural land to landless agriculture labourers
Self-Employment schemes
 Self-employment schemes
 Land purchase schemes
 Gang kaiyana schemes
 Micro credit schemes
 Direct land schemes
Eligibility criteria for getting benefits of above listed schemes are:

 The applicant should belong to SC/ST
 He should resided in Karnataka for 15 years
 Applicant must be in the age group of 18-60 years.
 Applicant should have knowledge and experience in the proposed activity
 None of the family member of the applicant is employed in government or semi
government.
NABARD:
National Bank for Agriculture and Rural Development (NABARD) is an apex
development bank in India. NABARD was established on the recommendations of
Shivaraman Committee. NABARD was established by an act of Parliament on 12 July 1982
to implement the National Bank for Agriculture and Rural Development Act 1981.

PILOT PROJECT:
With the above assumptions, NABARD have launched a pilot project in 1991 for
linking Banks with Self-Help groups the linkage between Banks and Self-Help groups was
encouraged on the following guidelines.
A) Quantum of Credit :
 Proportion of savings to loan could vary from 1:1 to 1:4 based on the assessment of
SHGs by Bank.
B) Disbursement :
 Directly to SHG in bulk individual members of SHG on recommendations of SHG
with an undertaking for monitoring and recovery of loan.
 Direct financing to NGO/SHPI as an intermediary based on the track record of NGO
C) Support from NABARD :

 100 percent re finance.
 At 6 percent (subject to change).
As part of its Institutional Development (ID) initiatives, NABARD supports the following
institutions:
• Rural Credit Cooperatives
• State Cooperative Banks (StCBs)
• Central Cooperative Banks (CCBs)
• Primary Agricultural Credit Societies (PACS)
• State Cooperative Agriculture and Rural Development Banks (SCARDBs)
• Primary Cooperative Agriculture and Rural Development Banks (PCARDBs)
Sum up of Institutional Development Initiatives of NABARD:
 Assistance in Implementation of Revival Package for improving the health of Short

Term Rural Cooperative Credit system (STCCS)

 Sanction of credit limits under Short Term Seasonal Agricultural and other Operations
to StCBs
 Direct refinance assistance to CCBs for short term multipurpose credit
 Support for Seasonal Agricultural Operations to Commercial Banks for financing
PACS
 Refinance for lending to farmers against Negotiable Warehouse Receipts
 Support from Producers Organization Development Fund (PODF) to develop PACS
as Multi Service Centers
 Refinance and Credit Facility to Marketing Federations
 Special Package with concessional rate of interest for North Eastern and other regions
 Interest subvention for short term crop loans on the own funds involved by
Cooperative Banks
 Creation of Cooperative Development Fund (CDF), primarily for Capacity Building
& Infrastructure Development of PACS
 Setting up of Short Term Cooperative Rural Credit (Refinance) Fund (STCRC) to
augment NABARD resources for Short Term Credit facilities to Cooperatives
 Providing level playing field to Co-operatives through Core Banking Solution (CBS)
 Assistance for Setting up of PACS Development Cell (PDC) in Cooperative Banks
 Establishment of Centre for Professional Excellence in Co-operatives (C-PEC) by
NABARD for supporting Co-operative Training Institutes (CTIs) to impart quality
training
Challenges for Rural Entrepreneurship:
 Growth of mall culture

 Poor Assistance
 Power Failure
 Lack of Technical know how
 Capacity Utilization
 Infrastructure Sickness

CHAPTER -2
REVIEW OF LITERATURE
A literature review or narrative review is a type of review article. A literature review

is a scholarly paper, which includes the current knowledge including substantive findings, as
well as theoretical and methodological contributions to a particular topic. Literature reviews
are secondary sources, and do not report new or original experimental work. Most often
associated with academic-oriented literature, such reviews are found in academic journals,
and are not to be confused with book reviews that may also appear in the same publication.
Literature reviews are a basis for research in nearly every academic field. [1] A narrow-scope
literature review may be included as part of a peer-reviewed journal article presenting new
research, serving to situate the current study within the body of the relevant literature and to
provide context for the reader. In such a case, the review usually precedes the methodology
and results sections of the work.
Producing a literature review may also be part of graduate and post-graduate student
work, including in the preparation of a thesis, dissertation, or a journal article. Literature
reviews are also common in a research proposal or prospectus (the document that is approved
before a student formally begins a dissertation or thesis)
The Literature Review Is a critical step in the research process. It helps to direct one’s
thinking and moves one towards developing specific research questions. Primary objective of
reviewing literature is to understand previous work that has been done in the subject and to
chalk out a research Endeavour with a focus on the unexplored aspects to the problem.
A brief literature would be of immense help to the researcher in gaining in sight in to

selected problem. The researcher would gain good back ground knowledge of the problem by
reviewing certain studies. A reference to this entire studies will be related in the contest of the
shaping the present study. These are very limited studies, which are directly relevant to the
study concerned. They have been taken from journals, articles, PhD, theses and unpublished
research work.

There are a lot of literatures available on entrepreneurs. Recently many International

and National level studies have been made regarding role of EDPs in entrepreneurship
development in India and Maharashtra. Researcher has reviewed a number of research
studies, books and journals which have a bearing on the present study in one way or the
other.
The existing literature can be categories as per the year.
1. Anil Aggarwal (2013)25 - Enterprises in rural environments are operating in an

arena of extreme and rapid change. However, despite the recognition that entrepreneurship is
one of the primary facets through which rural economic development can be achieved,
empirical research on rural entrepreneurship is relatively sparse and this concept remains
largely unknown. Appreciating the need for and relevance of understanding conceptual
paradigm of rural entrepreneurship, Rural Entrepreneurs and the role plays by the selected
Developmental institutions in the creation of Micro and small village enterprises has been
proved very much significant. Rural entrepreneurship is currently at the focus of much
theoretical, practical and political interest. This paper examines and evaluate the performance
of select government sponsored self employment generating programs for rural people as
well as the performance of developmental institutions and their role in developing and
fostering rural enterprises in the state of Haryana. The appraisal of these entrepreneurship
development Institutions in Haryana will certainly provide a comprehensive picture of
various institutional set up to promote the growth of entrepreneurship in rural areas as well as
the programs and activities that help promoting potential entrepreneurs especially in rural
areas and foster rural entrepreneurship. 64
2. Jitendra Ahirrao (2013)20 -Entrepreneurship has assumed prime importance, both

in research and in action, for accelerating economic growth. An entrepreneur is a critical
factor who strives to reorient the national strategies and bring out the desired changes in the
development pattern. Contrary to the earlier belief that entrepreneurs are a special creed and
are born with special traits, entrepreneurship can be cultivated through proper training and
financial support. An entrepreneur is a catalyst who can 59 mobilize different resources and
put them to effective use. Women constitute the backbone of any nation. Prosperity of the
nation depends upon the prosperity of its women. However, the role played by rural women
in economic development has not been assigned sufficient importance. Women face gender-

specific barriers in access to educational, health and employment. Again, women have little
control over the assets. Women are often under-paid or unpaid for their work. Their
contribution to society and the economy are often ignored. Encouraging women, particularly
in rural areas, to set up small enterprises is an effective method to promote their welfare,
development and empowerment.
3. Shantanu Bagchi and Debabrata Pal (2003)2 - Pattern of entrepreneurial

activities in India has undergone a sea change in the latter half of the 20th century, more
towards the end of it. From being a government dominated sector in the immediate post-
independence scenario to a one with reasonable space for operation of private entrepreneurs,
this transition has not been a smooth one at all. In fact, at every step, the country has learnt by
experience. The authors attempt to briefly and sequentially enumerate the policies followed
by the government of India with respect to entrepreneurial activities since its birth as an
independent democracy, and their economic implications. It attempt to bring out two main
issues in this context, one being the public sector - private sector debate, and the other being
the foreign entrepreneur - domestic entrepreneur tussle. The authors use some elementary
micro-economics in trying to show the problems posed by these issues, and methods in which
the government may intervene to improve situations.
4.Sangram Keshari Mohanty (2005)3 – This study exposes the readers to the
entrepreneurial culture and industrial growth in India. The intricate theories involved in
entrepreneurship are explained in a step-by-step manner, supported by a large number of
tables and figures. The 48 thorough discussions on promotion of venture and rising of funds
is aimed at enabling the potential entrepreneurs to set up and successfully manage their own
small business units. Separate chapters on Women Entrepreneurship and Rural
Entrepreneurship make this text a class apart. Besides undergraduate students of commerce,
students of management and EDP trainers will also find this text extremely useful.
5. Anil K. Lal and Ronald W. Clemen (2005)4 - The Indian economy provides a
revealing contrast between how individuals react under a government-controlled environment
and how they respond to a market-based environment. Evidence suggests that recent market
reforms that encouraged individual enterprise have led to higher economic growth in that
country. India can generate additional economic growth by fostering entrepreneurial activity
within its borders. To pursue further the entrepreneurial approach to economic growth, India

must now provide opportunities for educational directed specifically at entrepreneurial skills,
financing of entrepreneurial efforts, and networking among potential entrepreneurs and their
experienced counterparts. Further, although the Indian government should establish policies
supportive of entrepreneurial efforts, its role overall should be minimized so that the
influence of the free market and individual self interest can be fully realized.
6. Abhishek Goel and Neharika Vohra (2006)5 - This study argues that social
support is an important enabler in entrepreneurial activity in a country or a region. One
untested assumption in policy making has been that all regions are equally desirous of
entrepreneurial activity and one policy could address issues in all regions. It was argued that
attitudes towards entrepreneurs and entrepreneurship are important determinants for future
entrepreneurial activity. These attitudes would be impacted by the familial occupational
background of an individual and entrepreneurial development of the region which he/she
comes from. It was hypothesized that more positive attitude would be seen in people form
entrepreneurial backgrounds, and entrepreneurially more developed regions. These
hypotheses were tested on more than 5,000 respondents in India and China. The results for
familial occupational background’s influence on attitudes found strong support in both India
and China. Regional development showed stronger influence on attitude in India than in
China. The findings, issues around measurement of attitudes in cross cultural study, and
implications for policy making are discussed.
7. Jainendra Kumar Verma (2007)6 - Entrepreneurship is one of the most

important inputs in the economic development of a country. Entrepreneurs play a central role
in the economy by establishing firms, which in turn create markets and organizations. An
individual engages in entrepreneurial activities before the firm is established and 50 then
becomes an owner after the firm is established. In the case of India, Entrepreneur have
performed below expectation due to a combination of different problems themselves through
environmental related factors, instability of governments and frequent government policy
changes etc. Entrepreneurship Promotions should thus ensure the availability or possession of
managerial capacity and acumen before pursuing financial resources for the development of
the respective enterprise. The study is to develop and analyse the contributions of
entrepreneurship in the economic development in India. Whereas both the positive as well as
the negative impact of entrepreneurship on the economy has been discussed.

8.Report on the Evaluation of Entrepreneurship Development Institution

Scheme (2008)7 - Launching of the Entrepreneurship Development Institution Scheme by
the Government in 1993 was a happy augury meant for giving a fillip to the small industrial
sector in the wake of economic reforms. This verily was a laudable initiative taken for
supplementing entrepreneurship educationalal endeavors of the field institutes (SISIs) of the
Small Industries Development Organization with a view to developing entrepreneurial spirit
amongst the vast mass of India’s unemployed populace inhabiting villages and urban areas as
well. And, consequently, as provided under the Scheme - band of additional EDIs had
sprouted around the country characterized by distinct elements/inputs such as modernization,
strengthening of rest of the requisite training 51 amenities like equipment, state-of-the-art
teaching aids and other support services located in 17 of the country’s 30 states which have in
the past 15 years trained thousands of educated unemployed youth besides producing
thousands of entrepreneurs in manufacturing, business and services sectors by organizing
tailor-made / product specific /process-specific programmes in various trades that included
many a sunrise sector in active collabouration with State Governments, State and Central
Government Departments, local / national / international funding agencies like the European
Union, the world Bank, United Nations Development Programme.
9. Sultan Rehman Sherief (2008)8 - This study has attempted to set out the key
issues related to entrepreneurship in the context of its relationship with rural development.
The analysis is then broadened to understand the determinants of rural entrepreneurship and
the environment conducive to its development. Consequently the policies that are necessary
to make this environment favorable have been discussed in detail. The generic constraints
that are faced by rural enterprises have been listed out. The conclusion is that to accelerate
economic development in rural areas, it is necessary to promote entrepreneurship.
Entrepreneurial orientation in rural areas is based on stimulating local entrepreneurial talent
and subsequent growth of indigenous companies. This in turn would create jobs and add
economic value to a region, and at 52 the same time it will keep scarce resources within the
community.
10. K. Lavanya Lathaa, C. Madhavaiah and Murthy (2008)9 - In a developing

country like India; Small Scale Entrepreneurship plays a significant role in economic
development of the country. These industries, by and large represent a stage in economic
transition from traditional to modern technology after globalization. The variation in

transitional nature of this process is reflected in the diversity of these industries. Most of the
small scale industries use simple skills and machinery. Besides playing economic role in the
country, small scale industries, because of their unique economic and organizational
characteristics, also play social and political role in local employment creation, balanced
resource utilization, income generation and in helping to promote change in a gradual and
peaceful manner. The study of entrepreneurship is essential not only to solve the problem of
industrial development but also to solve the problems of unemployment, unbalanced areas
development, concentration of economic power and diversion of profits from traditional
avenues of investment. In this backdrop, the study attempts to get insights to review, in brief,
the evolution of the concept of entrepreneurship, the definition of small scale enterprises and
also to study the small scale entrepreneurship in India.
11. Sarang S. Jewlikar and O.P. Haldar (2014)28 - This study examine the
effectiveness of entrepreneurship development programs (EDP) in achieving some objectives.
MCED has been a pioneer in espousing social and economic entrepreneurship since 1988. It
is a training institute in the core area of entrepreneurship development. It works as a
facilitator and guide for the creation and cultivation of the entrepreneurial spirit and the
concept of ‘self-employment’ in a nation that is largely driven by third party employment. At
MCED, there is always the hummable buzz of people discussing, brainstorming, making
plans and revamping shelved ideas. The thrum of work and the exciting buzz of activity is an
indelible part of the work culture. MCED is also an incredibly technology savvy organization
which, not surprisingly, is amongst the few offices to enforce the paperless office concept.
MCED is a training institute where is the product ‘entrepreneurship training’ is intangible.
Thereby, the main objective of EDPs is to make the EDP trainee an enterprise creator. Hence,
it seems necessary to see whether, the objectives of EDPs are fulfilled or not. In simple
words, there is a need to have a retrospective look into how many participants have actually
started their own enterprises after completing the training. This calls for the evaluation of
EDPs. Assets of the organization are the human resources that are an invaluable asset. 66
12. Nimit Chowdhary and Monika Prakash (2010)11 - This study investigates the
less than acceptable performance of rural entrepreneurship development programmes in the
state of Rajasthan (India). A case study method of research was deployed seeking feedback of
participants of three entrepreneurship development programmes. Feedback was obtained
from those who completed the EDP programme and those who either did not attend the

programme or dropped out at some stage. Investigation resulted into identification of several
areas of inadequate performance choice and deployment of faculty, course material,
expectations of the participants, timing, delivery and focus of the programme. Authors
recommend a major shift in delivery of these programmes. In place of a fixed duration one-
off programme, authors suggest institutionalizing an entrepreneurship development process.
The study departs from earlier studies those suggest some disparate improvements against the
immediate problems identified. The study strongly argues a radical rethink in delivery of the
contents as part of continuous ongoing hierarchical process.

CHAPTER 3
RESEARCH DESIGN
RESEARCH:
 to study a subject in detail, especially in order to discover new information or reach a

new understanding.
 a detailed study of a subject in order to discover information or achieve a new
understanding of it.
RESEARCH DESIGN:
A research design is the set of methods and procedures used in collecting and
analyzing measures of the variables specified in the problem research .
INTRODUCTION:
The problem is essentially lop-sided development which is development of one area at

the cost of development of some other place, with concomitant associated problems of
underdevelopment. For instance, we have seen unemployment or underemployment in the
villages that has led to influx of rural population to the cities. What is needed is to create a
situation so that the migration from rural areas to urban areas comes down. Migration per se
is not always undesirable but it should be the minimum as far as employment is concerned.
Rather the situation 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. In
other words, migration from rural areas should not only get checked but overpopulated towns
and cities should also get decongested. The question is, is it really possible? If it is so, ways
can always be found out. One is by forcibly stopping villagers from settling in the slums of
towns and cities, making use of all powers to clear the slums so the villagers are forced to go
back. But such practices have not achieved the desired results in the past. Apart from causing
suffering to the poor people and adding to the expenditure for the Government, social

tensions and economic hardships created by the government officials and their staff in every
demolition of slums is not desirable from a sane government. Moreover, when a slum is
demolished people do not move out of urban locality. They only relocate to a nearby place
because they are entrenched in the economy of the town or city. Though governments have
tried out various schemes for generating incomes in the rural areas such government
initiatives have not stopped people from moving out of villages to cities. This is because such
government initiatives are not on their own capable of enabling people to earn adequately and
ameliorate their conditions. There has to be some committed enterprising individual or a
group of people.
The most common aspects involved in research design includes the following:
TITLE OF THE STUDY:
“A Study on Rural Entrepreneurship Development Challenges and

Opportunities in Kolar District”
STATEMENT OF THE PROBLEM:

Rural Entrepreneur Succeeding as an entrepreneur and an innovator. Today’s world is
vastly different from what it was earlier. Besides, the existing generation of entrepreneurship
also is passing through the transition period. They experience financial resource limitation to
promote or to develop a venture and there is also look of research and innovation to meet
with marketing challenges. Indian rural economy is also experiencing behavior of
entrepreneurial. Aim of most Rural Entrepreneur is to earn profits from Micro and small
business like any other business, if he determines the objectives. A small business necessarily
requires deliberate decision and proper investment after assessing risk and available resources
to maximize profit. Therefore entrepreneurship is a force that mobilizes other resources to
meet unmet market demand, the ability to create and build something from practically
nothing. Hence Entrepreneurship is “the process of creating value by pulling together a
unique package of resources to exploit an opportunity.” In this scenario the present study is
justified.

NEED OF THE STUDY:

The need for and growth of rural industries has become essential in a country like
India because of the following reasons:
 Rural industries generate large-scale employment opportunities in the rural

sector as most of the rural industries are labour intensive.
 Rural industries are capable of checking rural urban migration by developing

more and more rural industries.
 Rural industries/entrepreneurship help to improve the per capital income of

rural people thereby reduces the gaps and disparities in income of rural and
urban people.
 Rural entrepreneurship controls concentration of industry in cities and thereby

promotes balanced regional growth in the economy.
 Rural entrepreneurship facilitates the development of roads, street lighting,

drinking water etc. in the rural sector due to their accessibility to the main
market.
 Rural entrepreneurship can reduce poverty, growth of slums, pollution in cities

and ignorance of inhabitants.
 Rural entrepreneurship creates an avenue for rural educated youth to promote

it as a career.
OBJECTIVES OF THE STUDY:
 To Identify the Challenges for self-employment in micro and small industries of Kolar
District.
 To Identify the Opportunities available in the form of Institutions for
the development of rural entrepreneurship.
 To understand ground realities of existing sample respondents Entrepreneurs.
 To offer constructive suggestions on the topic.

SCOPE OF THE STUDY:
The study is confirmed to the challenges and opportunities of self-employed

entrepreneurs in micro and small industries in Kolar District and institutional support
extended to rural entrepreneurs particularly micro and small industries such as gold smith,
handlooms, handicrafts, food processing, brick manufacturing, and sericulture by the
Institutions as well as from the government. The support includes financial, marketing,
technical know-how, training, and preparation of project report, besides focus on leadership
skills, motivations and communicational skill, entrepreneurship skills and the like. The rural
entrepreneurship related schemes of the sample institutions forms part of the scope of the
study. Further the beneficiary rural entrepreneurs, their problems, prospects ; benefits are also
comprehensively covered under the study.
OPERATIONAL DEFINATION:
The term Operational Definition refers to a precise statement of how a conceptual

variable is turned into a measured variable. Research can only proceed once an adequate
operational definition has been defined. In some cases the conceptual variable may be too
vague to be operationalized, and in other cases the variable cannot be operationalized because
the appropriate technology has not been developed. For instance, recent advances in brain
imaging have allowed new operationalizations of some variables that could not have been
measured even a few years ago. Table 4.1 lists some potential operational definitions of
conceptual variables that have been used in behavioral research. As you read through this list,
note that in contrast to the abstract conceptual variables (employee satisfaction, frustration,
depression), the measured variables are very specific. This specific city is important for two
reasons. First, more specific definitions mean that there is less danger that the collected data
will be misunderstood by others. Second, specific definitions will enable future researchers to
replicate the research.

 Rural Entrepreneurship:
Entrepreneurship emerging in rural areas is called rural Entrepreneurship.

Establishing industries in rural areas refers to rural Entrepreneurship. Rural entrepreneurship
is synonymous of rural industrialization.
 Sustained economy:
Sustainable economic growth is economic development that attempts to satisfy the needs
of humans but in a manner that sustains natural resources and the environment for future
generations. An economy functions in the ecosystem. We cannot separate the economy from
it. In fact, an economy cannot exist without it.
 Economic development:
Economic development is the process by which a nation improves the economic, political,
and social well-being of its people. The term has been used frequently by economists,
politicians, and others in the 20th and 21st centuries. The concept, however, has been in
existence in the West for centuries.
 International finance:
International finance (also referred to as international monetary

economics or international macroeconomic) is the branch of financial economics broadly
concerned with monetary and macroeconomic interrelations between two or more
countries. International finance examines the dynamics of the global financial
system, international monetary systems, balance of payments, exchange rates, foreign direct
investment, and how these topics relate to international trade.
 Self employment:
The state of working for one self as a freelance or the owner of a business rather than for an
employer.

 Credit:
The ability of a customer to obtain goods or services before payment, based on the trust that
payment will be made in the future.
 Infrastructure sickness:
The Reserve Bank of India has defined a sick unit as one “which has incurred a cash loss
for one year and is likely to continue incurring losses for the current year as well as in the
following year and the unit has an imbalance in its financial structure, such as, current ratio
is less than 1: 1 and there is worsening trend in debt-equity ratio.” The State Bank of India
has defined a sick unit as one “which fails to generate an internal surplus on a continuous
basis and depends for its survival upon frequent infusion of funds.”
METHODS OF DATA COLLECTION:

Primary data:
Primary data is data that is collected by a researcher from first-hand sources, using
methods like surveys, interviews, or experiments. It is collected with the research project in
mind, directly from primary sources.
Sources of primary data:
 raw data
 original research (journal articles, books)
 diary entries, letters and other correspondence
 photographs, artifacts
 eyewitness accounts or interviews
 legal documents, government documents, public records (e.g. birth certificates)
 Records or other documents created by organizations.
Secondary data:
Secondary data refers to data which is collected by someone who is someone other
than the user. Common sources of secondary data for social science include censuses,
information collected by government departments, organizational records and data that was
originally collected for other research purposes.

Sources of secondary data:

 Books
 Survey
 Reports
 Articles
 News bulletins
 Annual report of the institutions
 Periodicals
 Journals etc
PLAN OF ANALYSIS:
The data collected was classified and tabulated for analysis purpose and chart &
graphs are used to find the conclusions. To make the presentation very simple the data
gathered were presented by using statistical tools and techniques of average, percent etc.
wherever necessary the data will be depicted with the help of diagrams, charts & graphs.
Based on which findings, conclusions, suggestions are given.
REFERENCE PERIOD:
The study was carried out for a span of 3 months.
LIMITATION OF THE STUDY:

 The study it is not a comprehensive study
 The findings of the study are purely on the basis of information supplied by the
respondents, which may be subject to personal basis, prejudices & ambiguity
 Time has been the major constraints experienced by the study
 The research conducted in Kolar District. The result obtained may not be an accurate
representation

CHAPTER SCHEMES:
CHAPTER – 1: INTRODUCTION
This chapter includes meaning and definition of Rural Entrepreneurs, institutional support,
challenges and problems of rural entrepreneurs.
CHAPTER – 2: REVIEW OF LITERATURE

This chapter deals with meaning of review of literature, Purpose of review of
literature, uses, profile of various respondents about various articles.
CHAPTER – 3: RESEARCH DESIGN

This chapter includes complete research plan and methodology.
CHAPTER – 4: DATA ANALYSIS AND INTERPRETATION
This chapter includes data analysis, classification and interpretation tables and charts.
CHAPTER – 5: SUMMARY AND FINDINGS, RECOMMODATION, CONCLUSION

AND SUGGESTION
BIBLIOGRAPHY:
ANNEXURE:

CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
INTRODUCTION:
The science of statistics involves four major stages: collection of data, presentation of data,
analysis of data, and interpretation of data. The presentation of general conclusion to the common
people on the basis of scientific analysis of data is the greatest work, which a statistician is known as
statistical interpretation. The interpretation of data is a very difficult task requires a high degree of
skill, care, judgment and objectively. In the absence of all these, there is very likelihood of the data
being misused to prove things that are not at all true.
MEANING:
It is the technique of interpretation of financial statements with the help of the accounting
ratio derived from the financial statements.
According to Wallis and Roberts, “Statistical data in the raw simply furnish facts for
someone to do the reason from. They can be extremely useful when carefully collected and critically
interpreted. But unless handled with care skill and, above all, objectivity, statistical data may seem to
prove things which are not at all true”.

TABLE 4.1
TABLE SHOWING AGE OF RESPONDENTS
Sl. No Age group No. of respondents % of respondents
1 Below 20 years 0 0%
2 20-30 years 7 14%
3 30-40 years 30 60%
4 40-50 years 9 18%
5 Above 50years 4 8%
Total 50 100%
ANALYSIS:
The above table reveals that the out of 50 respondents, 60 percent of respondents are between
the age group of 30-40 years, 14 percent are 20-30 years, 18 percent are 40-50 years, and remaining 8
percent of respondents age is above 50 years, from the same.
Majority of respondents age is between 30-40 years.

GRAPH 4.1
THE GRAPH SHOWING AGE OF RESPONDENTS
Age of respondents
Above 50yrs 8%
40-50 yrs 18%
30-40 yrs 60%

% of respondents
20-30 yrs 14%
Below 20 yrs
0%
0% 20% 40% 60% 80%
INTERPRETATION:
The above graph it can be known that majority of respondents age is 30-40 years that is 60
percent, 14 percent respondents age is 20-30 years, 18 percent respondents age is between 40-50
years, and remaining 8 percent respondents age is above 50 years.
In this graph most of the respondents age is between 30-40 year4s that is 60 percent.

TABLE 4.2
TABLE SHOWING MARITAL STATUS OF THE RESPONDENTS
Sl. No Particulars No. of respondents % of respondents
1 Single 11 22%
2 Married 39 78%
Total 50 100%
ANALYSIS:
The above table indicates that out of total respondents 39 are married that is 78 percent, and
remaining 11 respondents, marital status is single that is 22 percent.
It shows majority of respondents are married that is 78 percent.

GRAPH4.2
THE GRAPH SHOWING MARITAL STATUS OF THE RESPONDENTS
marital status
Single Married
39
40
30
20 11 78%
Married
10 22%
Single
0
No. of respondents % of respondents
INTERPRETATION:
The above graph it can be known that, 78 percent of respondents are married, 22 percent of
respondents’ marital status is single.
From this we can come to know that most of respondents are married and working for
their family and they have many responsibilities to be full filled.

TABLE 4.3
TABLE SHOWING HIGHEST LEVEL EDUCATION OF

RESPONDENTS

1 SSLC 7 14%
2 PUC 14 28%
3 Graduation 18 36%
4 Post graduation 8 16%
5 others 3 6%
total 50 100%
ANALYSIS:
The above table indicates that about 7 people respondents educational qualification is SSLC,
14 people respondents educational qualification is PUC, 18 people respondents are completed
graduation, 8 people respondents are post graduators, and remaining 3 people respondents are other
educational qualification.

GRAPH 4.3
THE GRAPH SHOWING HIGHEST LEVEL EDUCATION OF

RESPONDENTS
20 Education level of Respondents

36%
18
16
28%
14
12
10 % of respondents
18 16%
14% No. of respondents
8
14
6
4 8 6%
7
2
3
0
SSLC PUC Graduation Post others
graduation
INTERPRETATION:
Above graph shows that out of 50 respondents, 14 Percent of them have their educational
qualification is SSLC, 28 Percent of them are PUC , 36 Percent of them are graduates, 16 Percent
of them are Post Graduates, and remaining 6 percent of them are other educational qualification
respondents are there.
By this it can be revealed that most of respondents are graduates.

TABLE 4.4
TABLE SHOWING SOURCE OF INCOME OF RESPONDENTS
1 Business 11 22%
2 Handicraft 24 48%
3 dividends 3 6%
4 Capital growth 4 8%
5 other 8 16%
total 50 100%
ANALYSIS:
The above table shows that source of income from 50 respondents, in that 11 respondents are
getting business income, 24 respondents are getting handicraft income, 3 respondents are getting
dividends income, 4 respondents are getting capital growth income, and remaining 8 respondents
getting other income.
In this table most of the respondents source of income is handicraft business.

GRAPH 4.4
THE GRAPH SHOWING SOURCE OF INCOME OF RESPONDENTS
source of income of respondents

Business Handicraft dividends Capital growth other
16%
22%
8%
6%
48%
INTERPRETATION:
The above graph interpret that out of 50 respondents 48 percent respondents source of
income is handicraft, 22 percent are getting business income, 8 percent of them are capital growth, 6
percent of respondents are dividends income, and remaining 16 percent of respondents source is other
income.
In this above graph most of respondents source of income is handicraft.

TABLE 4.5
TABLE SHOWING MONTHLY INCOME OF RESPONDENTS
SL.No Options No. of % of respondents

respondents
1 Below 5000 8 16%
2 5000-10000 19 38%
3 10000-15000 11 22%
4 Above 15000 12 24%
total 50 100%
ANALYSIS:
The above table reveals that majority of respondents are between the monthly income level
of 5000-10000 with 38 percent, about 22 percent of respondents monthly income level is between
10000-15000, 16 percent respondents monthly income is below the 5000, and remaining 24 percent
respondents monthly income is above the 15000.

GRAPH 4.5
THE GRAPH SHOWING MONTHLY INCOME OF

RESPONDENTS
monthly income of respondents

24%
Above 15000
12
22%
10000-15000
11
% of respondents
38% No. of respondents

5000-10000
19
16%
Below 5000
8
0 5 10 15 20
INTERPRETATION:
The above graph interpreted that majority of respondents are between the monthly income
level of 5000-10000 with 38 percent, 24 percent respondents monthly income level is above 15000,
and 16 percent respondents income level is below the 5000, and remaining 22 percent respondents
monthly income is between 10000-15000.

TABLE 4.6
TABLE SHOWING TOTAL YEARS OF EXPERIENCE IN PERSONAL

BUSINESS BY RESPONDENTS
Sl. No Particulars No. of % of respondents

respondents
1 Below 2 years 8 16%
2 2-5 years 17 34%
3 5-10 years 18 36%
4 Above 10 years 7 14%
Total 50 100%
INTERPRETATION:
The above table shows that the personal business experience of the respondents. Most of the
respondents experience is between 5-10 years that is 36 percent, 34 percent respondents experience is
between 2-5 years, and 16 percent are below 2 years, and remaining 14 percent of respondents
personal business experience is above 10 years.

GRAPH 4.6
THE GRAPH SHOWING TOTAL YEARS OF EXPERIENCE IN

PERSONAL BUSINESS BY RESPONDENTS
personal business experiance for respondents
17 18
18
16
14
12
10 8
8 No. of respondents
7
6 % of respondents
4 16% 34%
36%
2 14%
0
Below 2
2-5 yrs
yrs 5-10 yrs
Above 10
yrs
INTERPRETATION:
The above graph interpret that personal business experience for the respondents , 16 percent
are below 2 years, 34 percent are 2-5 years, 36 percent are 5-10 years, and remaining 14 percent are
above 10 years experience.

TABLE 4.7
TABLE SHOWING KIND OF BUSINESS OWNED BY

RESPONDENTS
Sl. No Types of business No. of % of respondents

respondents
1 Pottery making 9 18%
2 Poultry farming 6 12%
3 Small scale 22 44%
industrial unit
4 others 13 26%
Total 50 100%
ANALYSIS:
The above table shows that the kind of business owned by respondents, 18 percent of
respondents are owned pottery making business, 12 percent of respondents are owned poultry
farming, 44 percent of respondents are owned small scale industrial unit, and remaining 26 percent of
respondents owned other businesses.

GRAPH 4.7
THE GRAPH SHOWING KIND OF BUSINESS OWNED BY

RESPONDENTS
kind of business owned by

respondents
Pottery making Poultry farming Small scale industrial unit others
18%
26%
12%
44%
INTERPRETATION:
The above graph represent that the kind of business owned by respondents, majority of
respondents owned small scale industrial unit that is 44 percent, 26 percent of respondents owned
pottery making business, 12 percent of respondents owned poultry farming , and remaining 18 percent
of respondents owned other type of business.

TABLE 4.8
TABLE SHOWING PARENTS OF RESPONDENTS EVER INVOLVED IN OWNING

AND OPERATING THEIR OWN BUSINESS
Sl. No Options No. of % of respondents

respondents
1 Yes 35 70%
2 No 15 30%
Total 50 100%
ANALYSIS:
The above table reveals that the parents of respondents ever involved in owning and
operating their own business or not, in this table 70 percent of respondents given positive reaction and
remaining 30 percent of respondents are given negative reaction.

GRAPH 4.8
GRAPH SHOWING PARENTS OF RESPONDENTS EVER INVOLVED IN

OWNING AND OPERATING THEIR OWN BUSINESS
Involvement of Parents in business of Respondents
30%
Yes
No
70%
INTERPRETATION:
Above graph reveals that, 70 percent of respondents say that their parents have involved in
owning and operating their own business and remaining 30 percent of respondents say that their
parents have not involved for the same.
From this it can be known that most of the respondents’ parents have involved in owning and
operating the businesses of respondents.

TABLE 4.9
TABLE SHOWING TYPE OF BUSINESS ORGANIZED BY

RESPONDENTS
Sl. No Type of business No. of % of respondents

respondents
1 Sole proprietorship 35 70%
2 Partnership 8 16%
3 Co-operative 4 8%
4 corporation 3 6%
Total 50 100%
ANALYSIS:
The above table reveals that the kind of business organized by respondents, 70 percent of
respondents organized sole proprietorship, 16 percent of respondents organized partnership business,
8 percent of respondents organized co-operative business, and remaining 6 percent of respondents
organized corporative business.

GRAPH 4.9
GRAPH SHOWING THE TYPE OF BUSINESS ORGANIZED BY

RESPONDENTS
kind of business organized by Respondents
% of respondents
70% 16%
8% 6%
Sole Partnership Co-operative corporation

proprietorship
INTERPRETATION:
The above graph interpret that the kind of business organized by respondents, 70% of
respondents owned sole proprietorship, 16% of respondents owned partnership, 8% of respondents
owned co-operative, and remaining 6% of respondents owned corporative business.
In this graph shows majority of respondents organized sole proprietorship business.

TABLE 4.10
TABLE SHOWS THAT THE BEST BUSINESS ACTIVITY CHOSEN BY

RESPONDENTS
Sl. No Particulars No. of % of

respondents respondents
1 Retail(including 13 26%
restaurants)
2 Finance/insurance/real 5 10%
estate
3 Transportation 12 24%
4 Business and 0 0%
professional services
5 Wholesale/distribution 7 14%
6 manufacturing 13 26%
7 construction 0 0%
8 others 0 0%
Total 50 100%
ANALYSIS:
The above table reveals that the describes primary business activity of respondents, 26
percent of respondents are retail, 10 percent of respondents are finance, 24 percent of respondents are
transportation, 14 percent of respondents are wholesale, and remaining 26 percent of respondents are
manufacturing.

GRAPH 4.10
THE GRAPH SHOWS THAT THE BEST BUSINESS ACTIVITY

CHOSEN BY RESPONDENTS
primary business activity of respondents

% of respondents
others 0%
construction 0%
26%
manufacturing
Wholesale/distribution 14%
Business and professional services 0%
Transportation 24%
Finance/insurance/real estate 10%
Retail(including restaurants) 26%
INTERPRETATION:
The above graph interprets that the primary business activity of respondents, the majority of
respondents are 26 percent in manufacturing and retailing, 24 percent of respondents are doing
transportation activity, 14 percent of respondents are doing wholesale business activity, and remaining
10 percent of respondents are doing finance/insurance/real estate business activity.

TABLE 4.11
TABLE SHOWING NUMBER OF HOURS DEVOTE TO THE BUSINESS BY THE

RESPONDENTS IN AN AVERAGE FOR A WEEK
Sl. No No. of hrs No. of % of respondents

respondents
1 0-20 hrs 4 8%
2 20-40 hrs 13 26%
3 40-60 hrs 23 46%
4 Above 60 10 20%
Total 50 100%
ANALYSIS:
The above table reveals that the number of hours devote to the business in an average for a
week, 8 percent of respondents are working 0-20 hours for a week, 26 percent of respondents are
working 20-40 hours for a week, 46 percent of respondents are working 40-60 hours, and remaining
20 percent of respondents are working above 60 hours in an average for a week.

GRAPH 4.11
THE GRAPH SHOWING NUMBER OF HOURS DEVOTE TO THE BUSINESS BY

THE RESPONDENTS IN AN AVERAGE FOR A WEEK
number of working hours in an averege

for a week
0-20 hrs 20-40 hrs 40-60 hrs Above 60
8%
20%
26%
46%
INTERPRETATION:
The above graph interpret that the respondents working hours in an average for a week, 46% of
respondents are working between the 40-60 hours in an average for a week, 26% of respondents are
working between the 20-40 hours in a week, 8% of respondents are working below 20 hours in a
week, and remaining 20% of respondents are working more than 60 hours in an average for a week.

TABLE 4.12
TABLE SHOWING THE NUMBER OF EMPLOYEES ARE

EMPLOYED
Sl. No No. of employees No, of % of respondents

respondents
1 0-20 8 16%
2 20-40 17 34%
3 40-60 14 28%
4 60-100 7 14%
5 Above 100 4 8%
Total 50 100%
ANALYSIS:
The above table reveals that the number of employees are been employed, 16 percent of
respondents tells 0-20 employees are employed, 34 percent of respondents 20-40 employees are
employed, 28 percent of respondents 40-60 employees are employed, 14 percent of respondents 60-
100 employees are employed and remaining 8 percent of respondents tells above 100 employees are
employed.

GRAPH 4.12
THE GRAPH SHOWING NUMBERS OF EMPLOYEES ARE

EMPLOYED
number of employees are employed

0-20 20-40 40-60 60-100 Above 100
8%
16%
14%
8%
14% 16%
28% 34%
34%
28%
INTERPRETATION:
The above graph interpret that the number of employees are been employed, 16 percent of
respondents tells 0-20 employees are employed, 34 percent of respondents 20-40 employees are
employed, 28 percent of respondents 40-60 employees are employed, 14 percent of respondents 60-
100 employees are employed and remaining 8 percent of respondents tells above 100 employees are
employed.

TABLE 4.13
TABLE SHOWING ANNUAL INCOME FROM THE RESPONDENTS
Sl. No Annual income No. of % of respondents

respondents
1 Within 200000 24 48%
2 200000-700000 16 32%
3 700000-1500000 10 20%
4 More than 0 0%
1500000
Total 50 100%
ANALYSIS:
The above table reveals that the annual income from the respondents business, 48 percent of
respondents business income is within 2 lakhs, 32 percent of respondents business income is 2-7
lakhs, 20 percent of respondents business income is 7-15 lakhs.
In this graph majority of respondents business income is within 2 lakhs.

GRAPH 4.13
THE GRAPH SHOWING ANNUAL INCOME FROM THE

RESPONDENTS
annual income
48%
25
32%
20
15 20%
24
10
16
10
5 0%
0
0
Within 200000 200000-700000 700000-1500000 More than
1500000
INTERPRETATION:
The above graph interpret that the annual income of respondents business, in this graph
majority of respondents business income is within 2 lakhs that is 48 percent, 32 percent respondents
business income is between 2-7 lakhs and remaining 20 percent respondents anuual income for the
business is between 7-15 lakhs.

TABLE 4.14
TABLE SHOWING THE REASON FOR STARTING THE BUSINESS

BY RESPONDENTS
Sl. No Reasons for No. of respondents % of respondents

starting the
business
1 Government 2 4%
scheme
2 Hobby 9 18%
3 Rural development 23 46%
4 Tradition 12 24%
5 Others 4 8%
Total 50 100%
ANALYSIS:
The above table shows that the reasons for starting the business, 4 percent of respondents
reason is government scheme, 18 percent of respondents reason is hobby, 46 percent of respondents
reason is rural development, 24 percent of respondents reason is tradition, and remaining 8 percent of
respondents given other reasons.

GRAPH 4.14
THE GRAPH SHOWING THE REASON FOR STARTING THE

BUSINESS BY RESPONDENTS
reason for starting the business
23
25
20
15 12
9
10
4 No. of respondents
5 2
4% 18% 46% 24% 8% % of respondents
0
INTERPRETATION:
The above graph interpret that the reasons for starting the business, 4 percent of respondents
reason is government scheme, 18 percent of respondents reason is hobby, 46 percent of respondents
reason is rural development, 24 percent of respondents reason is tradition, and remaining 8 percent of
respondents given other reasons. Majority of respondents reason is rural development.

TABLE 4.15
TABLE SHOWING THE CHALLENGES FACED BY RURAL

ENTREPRENEURS
Sl. No Challenges No. of % of respondents

respondents
1 Personal 10 20%
challenges
2 Social challenges 5 10%
3 financial 11 22%
challenges
4 Marketing 4 8%
challenges
5 Competition 7 14%
challenges
6 Lack of 13 26%
knowledge
Total 50 100%
ANALYSIS:
The above table show that the challenges faced by rural entrepreneurs, about 50 respondents
given different challenges in the above table.

GRAPH 4.15
THE GRAPH SHOWING THE CHALLENGES FACED BY RURAL

ENTREPRENEURS
challenges faced by rural entrepreneurs

20% 10% 22% 8% 14% 26%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Personal Social financial Marketing Competition Lack of
challenges challenges challenges challenges challenges knowledge
% of respondents
INTERPRETATION:
The above graph interpret that the challenges faced by rural entrepreneurs,20 percent of
respondents reason is personal challenges, 10 percent are social challenges, 22percent are financial
challenges, 8 percent of respondents reason is marketing challenges, 14 percent are competition
challenges, and remaining 26 percent are lack of knowledge.

TABLE 4.16
TABLE SHOWING THE MAIN PROBLEMS / OBSTACLES FACED BY

THE RESPONDENTS

respondents
1 No obstacles 6 12%
2 Start up finance 9 18%
3 Entrepreneurial 15 30%
skills
4 Awareness / 11 22%
access to business
support
5 others 9 18%
Total 50 100%
ANALYSIS:
The above table shows that the main problems/obstacles faced by the respondents, in this table
12 percent of respondents tells no obstacles, 18 percent of respondents problem is start up finance, 30
percent of respondents problem is entrepreneurial skills, 22 percent of respondents problem is
awareness/access to business support, and remaining 18 percent of respondents given other problems.

GRAPH 4.16
THE GRAPH SHOWING THE MAIN PROBLEMS / OBSTACLES

FACED BY THE RESPONDENT
problems / obstacles faced by the

respondents
12%
18%
No obstacles
18% Start up finance
Entrepreneurial skills
22% Awareness / access to

business support
others
30%
INTERPRETATION:
The above graph interpret that the main problems/obstacles faced by the respondents, in this
graph 12 percent of respondents tells no obstacles, 18 percent of respondents problem is start up
finance, 30 percent of respondents problem is entrepreneurial skills, 22 percent of respondents
problem is awareness/access to business support, and remaining 18 percent of respondents given other
problems. Most of respondents given problem of entrepreneurial skills.

TABLE 4.17
TABLE SHOWING THE VARIOUS ASSISTANCES OFFERED BY THE

ORGANIZATION TO RURAL ENTREPRENEURS

respondents
1 Training support 12 24%
2 Technical support 8 16%
3 Marketing support 6 12%
4 Preparation of 5 10%
project report
5 Research and 5 10%
development
6 Conduct of 0 0%
fair/exhibition
7 Purchase of raw 11 22%
materials
8 Any other 3 6%
Total 50 100%
ANALYSIS:
The above table reveals that the various assistance offered by the organization to rural
entrepreneurs, about 50 respondent given various assistance in the above table.

GRAPH 4.17
THE GRAPH SHOWING THE VARIOUS ASSISTANCES OFFERED BY

THE ORGANIZATION TO RURAL ENTREPRENEURS
supports of rural entrepreneurs

12
11
8
6
5 5
3
24% 16% 12% 10% 10% 0 0% 22% 6%
INTERPRETATION:
The above graph interpret that the various supports offered by the organization to rural
entrepreneurs, 24 percent of respondents reason is training support, 16 percent of respondents reason
is technical support, 12 percent are marketing support, 10 percent are preparation of project report and
research and development, 22 percent of respondents are purchase of raw material, and remaining 6
percent of respondents given other reasons.

TABLE 4.18
TABLE SHOWING THE QUALITIES THAT A RURAL

ENTREPRENEUR SHOULD HAVE

respondents
1 More parlances 4 8%
2 Capacity to make 31 62%
3 Ability to judge 10 20%
4 Empathize 5 10%
Total 50 100%
ANALYSIS:
The above table reveals that the realities of rural entrepreneurs should have, about 50
respondents 4 are given more parlances,31 respondents are capacity to make, 10 respondents are
ability to judge, remaining 5 respondents are empathize.

GRAPH 4.18
THE GRAPH SHOWING THE QUALITIES THAT A RURAL

ENTREPRENEUR SHOULD HAVE
qualities
10% 8%
20%
More parlances
Capacity to make
Ability to judge
Empathize
62%
INTERPRETATION:
The above graph interpret that the qualities of rural entrepreneurs, majority of respondents
reason is capacity to make that is 62 percent, 20 percent of respondents reason is ability to judge, 10
percent of respondents given reason is empathize, and remaining 8 percent of respondents are more
parlances. Majority of respondents choose the quality of capacity to make.

TABLE 4.19
TABLE SHOWS THE OPINION OF THE RESPONDENTS ABOUT DIFFERENCE

OF RURAL ENTREPRENEURSHIP & GENERAL ENTREPRENEURSHIP

respondents
1 Yes 47 94%
2 No 3 6%
Total 50 100%
ANALYSIS:
The above table reveals that, the difference of rural entrepreneurship and general
entrepreneurship, about 50 respondents 94 percent of respondents are given positive reaction and
remaining 6 percent of respondents are given negative reaction.

GRAPH4.19
THE GRAPH SHOWS THE OPINION OF THE RESPONDENTS ABOUT

DIFFERENCE OF RURAL ENTREPRENEURSHIP & GENERAL
ENTREPRENEURSHIP
difference of rural entrepreneurship and

general entrepreneurship
50 47
45
40
35
30
25
20
15
10
5 3
94% 6%
0
Yes No
INTERPRETATION:
The above graph interpret that, the difference of rural entrepreneurship and general
entrepreneurship, about 50 respondents 94 percent of respondents are given positive reaction and
remaining 6 percent of respondents are given negative reaction. Most of respondents are give positive
reaction.

TABLE 4.20
TABLE SHOWS THAT THE OPINION OF RESPONDENTS ABOUT SPECIAL

INACTIVE SCHEMES OF GOVERNMENT

respondents
1 Yes 45 90%
2 No 5 10%
Total 50 100%
ANALYSIS:
The above table reveal that the necessity of special incentive schemes of govt. to promote rural
entrepreneurship, in this table 90 percent of respondents given positive reaction and remaining 10
percent of respondents given negative reaction.

GRAPH 4.20
THE GRAPH SHOWS THAT THE OPINION OF RESPONDENTS ABOUT

SPECIAL INACTIVE SCHEMES OF GOVERNMENT
special incentive schemes
100%
90%
90%
80%
70%
60%
50%
40%
30%
10%
20%
10%
0%
Yes No
% of respondents
INTERPRETATION:
The above graph interpret that, the necessity of special incentive schemes of govt. to promote
rural entrepreneurship, in this graph 90 percent of respondents given positive reaction and remaining
10 percent of respondents given negative reaction. Majority of respondents given positive reaction.

TABLE 4.21
TABLE SHOWING OPINION OF THE RESPONDENTS ABOUT PRE TRAINING

FOR RURAL ENTREPRENEURSHIP

respondents
1 Yes 33 64%
2 No 18 36%
Total 50 100%
ANALYSIS:
The above table reveals that, out of 50 respondents, 64 percent of them feel that there is a
necessity of pre-training for rural entrepreneurs before starting up their ventures and remaining 36
percent of them don’t feel the same.

GRAPH 4.21
THE GRAPH SHOWS THAT THE OPINION OF THE RESPONDENTS ABOUT

PRE TRAINING FOR RURAL ENTREPRENEURSHIP
Pre-training for rural entrepreneurs
36%
Yes
No
64%
INTERPRETATION:
The above graph it can be noticed that, out of 50 respondents, 64 percent of them feel that
there is a necessity of pre-training for rural entrepreneurs before starting up their ventures and
remaining 36 percent of them don’t feel the same. By this it can be known that most of the
respondents feel that there is a necessity for pre-training programme and are interested to have
training on it.

TABLE 4.22
TABLE SHOWING THE RESPONDENT OPINION ABOUT THE STATEMENT IS

THAT “RURAL ENTREPRENEURSHIP IS A BOON TO THE SOCIETY”

respondents
1 Yes 50 100%
2 No 0 00%
Total 50 100%
ANALYSIS:
The above table reveals that, out of 50 respondents all the respondents feel that rural
entrepreneurship is boon for the society. This shows the confidence and commitment of rural
entrepreneurs to the society.

GRAPH4.22
THE GRAPH SHOWS THAT THE RESPONDENT OPINION ABOUT THE

STATEMENT IS THAT “RURAL ENTREPRENEURSHIP IS A BOON TO THE
SOCIETY”
Rural entrepreneurship is a boon to the

society
100%
Yes
No
0%
Yes
No
INTERPRETATION:
Above graph spotlights that, out of 50 respondents all the respondents feel that rural
entrepreneurship is boon for the society. This shows the confidence and commitment of rural
entrepreneurs to the society.

TABLE 4.23
TABLE SHOWING ACCEPTANCE OF THE STATEMENT “SEVERE

COMPETITION FROM GLOBAL MARKET IS THE MAJOR DRAWBACK FOR
FAILURE OF RURAL ENTREPRENEURS”

respondents
1 Strongly agree 23 46%
2 Agree 25 50%
3 Disagree 2 4%
Total 50 100%
ANALYSIS:
The above table reveal that, out of 50 respondents, 50 percent of them agree that severe
competition from global market is the major drawback for failure of rural entrepreneurs, 46 percent
of them strongly agree with the same and remaining 04 percent of respondents disagree with the
statement.

GRAPH 4.23
GRAPH SHOWING ACCEPTANCE OF THE STATEMENT “SEVERE

COMPETITION FROM GLOBAL MARKET IS THE MAJOR DRAWBACK FOR
FAILURE OF RURAL ENTREPRENEURS”
Acceptance of Gobal market is major drawback

for Rural Entrepreneurs
50%
46%
Percentage of Respondents
4%
Strongly agree Agree Dis agree
INTERPRETATION:
The above graph it can be known that, out of 50 respondents, 50 percent of them agree that
severe competition from global market is the major drawback for failure of rural entrepreneurs, 46
percent of them strongly agree with the same and remaining 04 percent of respondents disagree with
the statement. By this it can be known that most of the respondents feel that severe competition from
global market is threat for them.

TABLE 4.24
TABLE SHOWING THE OVERALL SUCCESS OF YOUR BUSINESS

ON 7 POINTS SCALE

respondents
1 Extremely 0 0%
unsuccessful
2 unsuccessful 0 0%
3 Moderately 3 6%
unsuccessful
4 Neither successful or 11 22%
unsuccessful
5 Moderately 13 26%
successful
6 successful 17 34%
7 Extremely successful 6 12%
Total 50 100%
ANALYSIS:
The above table shows that the overall success of your business on 7 points scale, 34 percent of
respondents are successful in their business, 26 percent of respondents are moderately successful, 22
percent of respondents opinion is neither successful or unsuccessful, 6 percent of respondents are
moderately unsuccessful, and remaining 12 percent respondents reason is extremely successful.
Majority of respondents reason is successful on their business.

GRAPH 4.24
THE GRAPH SHOWING THE OVERALL SUCCESS OF YOUR

BUSINESS ON 7 POINTS SCALE
% of respondents
Extremely unsuccessful
unsuccessful
12% 0%6%
22% Moderately unsuccessful
34%
Neither successful or
26% unsuccessful
Moderately successful
successful
Extremely successful
INTERPRETATION:
The above graph interpret that the overall success of the business in 7 points scale, in this
graph 34 percent of respondents are successful in their business, 26 percent of respondents are
moderately successful in business, 22 percent of respondents are neither successful or unsuccessful,
12 percent of respondents are extremely successful, and remaining 6 percent of respondents are
moderately unsuccessful.

CHAPTER – 5
SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSIONS
FINDINGS:
 From the research analysis it is found that from the total population 48% of the
respondents get their income through handicraft, 22% of the respondents get their income
through business, 6% of the respondents get their income through dividends, 8% of
respondents income through capital growth and rest of 16% of respondents get their
income through other sources.
 From the research analysis it is found that from the total population 36 percent of
respondents personal business experience is 5-10 years, 34 percent of respondents
personal business experience is 2-5 years, 16 percent of respondents personal business
experience is below 2 years and rest of 14 percent respondents personal business
experience is above 10 years.
 It has been found that, 44 percent of respondents owned small scale industrial unit
business, 18 percent of respondents owned pottery making business, 12 percent of
respondents owned poultry forming business, and remaining 26 percent of respondents
owned other businesses.
 From the study it was found that 70 percent of respondents are involved in owning and
operating their own business, and remaining 30 percent of respondents are not involved,
for the same.
 From the study it was found that, 70 percent of respondents are organized sole
proprietorship business, 16 percent of respondents are organized partnership business, 8
percent of respondents are organized co-operative business and rest of 6 percent of
respondents are organized corporation business.
 From the research analysis it is found that from the total population most of the
respondents are chose the retail (including restaurants) and manufacturing business
activity.

respondents 40-60 hours of time devotes to the business in an average for a week, and 8
percent of respondents devotes below 20 hours, 26 percent of respondents devotes 20-40
hours and rest of 20 percent of respondents devotes above 60 hours of time to the
business.
 From the study it was found that 46 percent of respondents say reason of starting the
business is rural development, 24 percent of respondents say that tradition, 18 percent of
respondents say that hobby, 4 percent of respondents say that government scheme and
rest of 8 percent respondents given other reasons.
 It has been found that 26 percent of respondents are faced the challenge is lack of
knowledge, 22 percent of respondents are faced financial challenges, 14 percent of
respondents are faced competition challenges, 8 percent of respondents are faced
marketing challenges, 10 percent of respondents are faced social challenges and rest of 20
percent of respondent are faced personal challenges.
 From the research analysis it is found that from the total population most of the
respondents faced the problem of entrepreneurial skills.
 From the study it was found that 94 percent of respondents are accept the difference of
rural entrepreneurship and general entrepreneurship and remaining 6 percent of
respondents are not from the same.
 From the study it was found that 64 percent of respondents opinion is pre-training is
necessary for rural entrepreneurs before they take up their ventures and remaining 36
percent of respondents are not accepted, from the same.
respondents should accept the rural entrepreneurship is a boon to the society.
 From the research it has been found that 58 percent of respondents are accepted and
remaining 42 percent of respondents are rejected, from the organization is tie-up for other
institutions to support to rural entrepreneurship.

SUGGESTIONS:
 The government should provide timely and adequate financial assistance separately to the
rural entrepreneur so that more and more rural educated youth will come forward for
establishment of rural entrepreneurship in the country.
 Care should be taken by the government in state and central level to provide training facility
to the rural entrepreneurs so that the knowledge and skill of the rural entrepreneurs can
increase for utilization of local resources properly for productive purposes.
 Modernization of technology is an essential part of rural entrepreneurs of our country. In
order to apply latest technology, tools and other necessary equipments in rural enterprise
sufficient fund provision should be made by the funding agency so that the outdated
technique will be not utilized by the rural entrepreneurs.
 Rural entrepreneur should be provide with sufficient infrastructural facility to improve their
business by which more and more educated rural youth will come forward to be rural
entrepreneurs of the country.
 Industrial sheds should be constructed in rural areas in order to monitor the quality of the
products of rural enterprises so that rural entrepreneurs can compete with other
competitors in the market. In the era of globalization and liberalization.
 Majority of the entrepreneurs are facing financial constraint. Hence, the nationalized
banks should take proper initiative to create proper awareness among the
entrepreneurs.
 In Kolar, except government organizations, no much employment opportunities are
available for literates also both govt. as well as non-government organizations, should
take initiative to provide marketing assistance like guidance in promotion and
distribution of the products.

CONCLUSION:
Rural entrepreneurship provides a best solution for employment opportunity and

income generation not only in rural areas but also in national level. Without rural
entrepreneurship it seems to be impossible on the part of national planners for economic
development of our country. Rural entrepreneurship can be considered as a solution for
eradication of poverty, income disparity, migration, unemployment, balanced growth,
regional development, national economic and social development. Hence rural
entrepreneurship is a catalyst for rural development. In India national development can be
possible through development of rural entrepreneurship which can fulfill the dream of the
father of our nation.

A Study On Rural Entrepreneurship Development

Uploaded by

Copyright:

Available Formats

You might also like

A Study On Rural Entrepreneurship Development

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

A Study On Rural Entrepreneurship Development

Uploaded by

Copyright:

Available Formats

“A STUDY ON RURAL ENTREPRENEURSHIP DEVELOPMENT

CHALLENGES AND OPPORTUNITIES IN KOLAR DISTRICT”

To promote entrepreneurs who would take to rural entrepreneurship in

Economic Development in every economy is a continuous activity. The process of

DEPARTMENT OF COMMERCE, P.G .CENTRE, KOLAR Page 1

On the Indian scene, there is an impressive growth of entrepreneurs particularly in the

HISTORY OF RURAL ENTREPRENEURSHIP IN INDIA:

DEPARTMENT OF COMMERCE, P.G .CENTRE, KOLAR Page 2

“Entrepreneurs” are people who create and grow enterprises. “Entrepreneurship” is

DEPARTMENT OF COMMERCE, P.G .CENTRE, KOLAR Page 3

Entrepreneur Entrepreneurship Enterprise

Person Process of action Object

Understanding the Concepts, Entrepreneur, Entrepreneurship and Enterprise.

DEPARTMENT OF COMMERCE, P.G .CENTRE, KOLAR Page 4

Meaning of Rural Entrepreneurship:

Entrepreneurship emerging in rural areas is called rural Entrepreneurship.

RURAL ENTREPRENEURSHIP IN INDIA:

DEPARTMENT OF COMMERCE, P.G .CENTRE, KOLAR Page 5

DEPARTMENT OF COMMERCE, P.G .CENTRE, KOLAR Page 6

Institutional Network of SIDO:

 The Development Commissioner (SSI) heads the Small Industry Development

Regional Testing Center (RTC):

DEPARTMENT OF COMMERCE, P.G .CENTRE, KOLAR Page 7

Central Footwear Trainings Institutes (CFTIs):

 Develop footwear designing to promote exports

2. NATIONAL SMALL INDUSTRIES CORPORETION Ltd (NSIC):

The NSIC is directly operating different programmers by professionals through 8

Machinery and Equipment:

DEPARTMENT OF COMMERCE, P.G .CENTRE, KOLAR Page 8

 Special focus on women entrepreneurs, weaker sections, handicapped and ex-

3. SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI):

SCHEMES FOR MITIGATING THE PROBLEMS OF THE SSI SECTORS:

1) Delayed payment of Bills

Schemes operated by SIDBI:

 Direct Discounting of Bills (Components) Scheme

Schemes operated by SIDBI:

 Technology Development and Modernization Fund (TDMF) Scheme (both

DEPARTMENT OF COMMERCE, P.G .CENTRE, KOLAR Page 9

3) Working Capital Availability

 Single Window Scheme Through primary Composite Loan Scheme Lending

 Schema for Financing Activities Relating to Marketing of SSI products.

5) Lack of Suitable Infrastructure

Schemes operated by SIDBI:

 Scheme of Direct Assistance for Development of Industrial Infrastructure for

6) Insufficient Export Credit

Schemes operated by SIDBI:

7) Venture Capital Availability

Schemes operated by SIDBI:

 Venture Capital Scheme

DEPARTMENT OF COMMERCE, P.G .CENTRE, KOLAR Page 10

8) Human Resources Development

Schemes operated by SIDBI:

 Entrepreneurship Development Programmes

New Initiatives of SIDBI:

Aims & Objectives: (SIDBI)

PROBLEMS FACED IN GROWTH OF RURAL ENTREPRNEURS:

DEPARTMENT OF COMMERCE, P.G .CENTRE, KOLAR Page 11