As we know, entrepreneurship is the process through which enterprises are established. Based on that, 'Rural Entrepreneurship' can be explained as entrepreneurship that emanates from rural areas in diversified fields of endeavors such as business, industry, agriculture, and many more disciplines.
Such kind of entrepreneurship plays a significant role in the overall development of developing economies such as India. Let's see how –
Create employment opportunities–entrepreneurship in rural areas is capable of tackling the major problem of unemployment as setting up industrial units will enable employment generation and income creation.
Rural entrepreneurship can awaken the rural youth and expose them to various avenues to adopt entrepreneurship and promote it as a career.
Curb migration of rural population – If people in rural areas get employment there, the majority of them would stop migrating to urban areas in search of employment opportunities.
Furthermore, entrepreneurship in these areas will bring in the development of infrastructural facilities such as power, roads, bridges, and more. Eventually, this will result in filling the huge gap prevailing between the income of rural and urban people.
Promote Indian culture and heritage – We can promote Indian art and handicrafts, which form a great part of our heritage through rural entrepreneurship.
Check on social evils – Growth of entrepreneurship in remote areas can scale down the practice of social evils like poverty, illiteracy, etc.
Improve the standard of living – entrepreneurship in such areas will initiate a wave of awakening and inspire people to get an education and use their skills and create something new.
Their education and self-employment will prosper the community, thus enhancing their standard of living.
Rural entrepreneurs invest their efforts in village industries such as Agro-based, Forest based, Textile, Engineering services, handicrafts, etc. However, rural entrepreneurs have to face several challenges in their journey which most of the time leads to their failure.
This discourages entrepreneurial spirit in others who have ideas as well as skills to start an enterprise. Entrepreneurship in rural areas can be developed only if the overall industrial and economic environment becomes conducive to its growth. The following measures can be taken to achieve that:
As raw materials constitute the fundamental of industry, the continuous supply of raw materials must be ensured for a smooth production process; a strong raw material base is created in rural areas itself
There should be policies for providing adequate capital on easy and flexible terms and conditions to facilitate the establishment and development of businesses.
Rural entrepreneurs must be supported in their marketing initiatives; there must be facilities for educating and facilitating them, especially in those areas which have great potential for growth
Entrepreneurship in rural areas is majorly associated with risk-taking and most entrepreneurs consider it as an option while planning their careers. There is a dire need for Entrepreneurial Development Programmes, which can develop entrepreneurial aptitude in people through training. This can also be done by educating young minds about entrepreneurship and developing their skills in the schools, colleges, and universities in these areas