Page 33 - IMDR - Journal of Management Development and Research - March2019-20

A Study on Rural Entrepreneurship- Prospects and Challenges in India

Ritesh K Patel
Operations & Clearing Officer - Bank of Baroda (Nani Daman Branch)

Abstract
Indian economy is highly dependent on rural economy as 72.2 % of the total

population lives in rural areas where agriculture and allied activities are the major
sources of income. Rural entrepreneurship is starting of enterprises in rural areas.

Entrepreneurship is a wise answer to solve the unemployment, migration and to

promote economic and social development in rural areas. The strengthening of the
rural villages will encourage the preservation of natural resources and improve the

rural economy. There exists a wide gap between rural and urban areas in terms of

infrastructure, market and financial access etc .To reduce the disparities, revitalizing
the rural economy can be achieved by establishing entrepreneurial ventures in rural

areas. Rising rural incomes will have a multiplier effect by raising the demand for
farm and nonfarm products and services instigating growth of employment

opportunities. Government of India has been continuously assigning increasing
importance and support for the promotion and growth of rural entrepreneurship. The

obstacles for growth of rural entrepreneurship are literacy, risk aversion, lack of

skilled labor, less technical knowhow, limited access to essential services, lack of
communication facilities etc. This paper provides an insight into the present scenario

of rural entrepreneurship, advantages, opportunities, challenges faced by the
entrepreneur and institutions promoting rural entrepreneurship and their role in

developing and fostering rural enterprises.
Keywords: preservation of natural resource, employment opportunities, rural

entrepreneurship.

Concept of Rural Entrepreneurship
Defining entrepreneurship is not an easy task. To some, entrepreneurship means

primarily innovation, to others it means risk-taking? To others a market stabilizing

force and to others still it means starting, owning and managing a small business. An
entrepreneur is a person who either creates new combinations of production factors

such as new methods of production, new products, new markets, finds new sources of
supply and new organizational forms or as a person who is willing to take risks or a

person who by exploiting market opportunities, eliminates disequilibrium between
aggregate supply and aggregate demand or as one who owns and operates a business.

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