Page 37 - IMDR - Journal of Management Development and Research - March2019-20

b. Legal formalities: In complying with various legal formalities and in obtaining

licenses rural entrepreneurs find it extremely difficult due to ignorance and illiteracy.
Also, procurement of raw materials is really a tough task for many rural

entrepreneurs. They may also end up with poor quality raw materials, which may also
face the problem of storage and warehousing.

c. Lack of technical knowledge: Rural entrepreneurs to a major extent suffer a
severe problem of lack of technical knowledge. Lack of training facilities and other

extensive services create a hurdle for the development of rural entrepreneurship.

d. Poor quality 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 other equipment’s as well as poor quality of raw materials.

4. Human resource Problems: Some of the major human resource problems found
in organization are as follows:

a. Low skill level of workers: Most of the entrepreneurs working in rural areas are
unable to find workers with high skills. In this case turnover rates are also high.

b. Negative attitude: Sometimes environment in the family, society and support
system is not much conducive enough to encourage rural people to take up

entrepreneurship as a career. It may be certainly due to lack of awareness and

knowledge of entrepreneurial opportunities.

Remedial measures to solve the problems faced by rural entrepreneurs
Different organizations like IFCI, SIDBI, ICICI, NABARD etc are trying to sort the

major problems faced by rural entrepreneurs. Marketing problems are mainly related
with pricing, distribution channels, product promotion etc. In order to make the rural

entrepreneurs to state the business venture, following measures may be adopted:

a. Creation of finance cells: Banks and financial institutions which provide finances
to entrepreneurs must create special cells for providing easy finance to rural

entrepreneurs

b. Concessional rates of Interest: On easy repayment basis and at concessional rates
of interest the rural entrepreneurs should be provided finances. The cumbersome

formalities should necessarily be avoided in sanctioning the loans to rural
entrepreneurs.

36 | P a g e