Page 34 - IMDR - Journal of Management Development and Research - March2019-20

The basic principles of entrepreneur which applied the rural development are:

 Optimum utilization of local resources in an entrepreneurial venture by rural
population - Better distributions of the farm produce results in the rural

prosperity.

 Entrepreneurial occupation rural population to reduce discrimination and
providing alternative occupations as against the rural migration.

 To activate such system to provide basic '6 m'- manpower, money , material,

machinery, management and market to the rural population.
Major objectives of study:

1. To analyze the roles of rural entrepreneurs in economic development
2. To know the major benefits from rural entrepreneurship

3. To suggest some remedial measures to solve the problems faced by rural
entrepreneurs

4. To study the major challenges faced by rural entrepreneurship in India

Role of rural entrepreneurs in economic development

The entrepreneurs with their ability to scan, identify and analyze opportunities in the
environment transform them into business proposition through creation of major

economic entities there by channelizing the resources from less productive to more
productive use create wealth. Through effective and efficient utilization of natural and

national resources, they act as catalysts for economic development and also agents of

social change and transformation.
A catalyst is certainly needed which results in entrepreneurial activity to a much

considerable extent. The diversity of activities that which characterizes rich countries

can be attributed to the supply of entrepreneurs. They play a vital role for the
economic development of a country in the following ways:

1. Formation of capital: Entrepreneurs as such by placing profitable business
proposition do attract investment to ensure private participation in the

industrialization process. The otherwise idle savings are also channelized for
investment in business ventures in turn provides return. Again the savings are

invested giving a multiplier effect to the process of capital formation.

2. General Job creators and job providers and not the job seekers: With the
globalization process the government jobs are shrinking thus leaving many

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