Rural Rural EntrepreneursEntrepreneurs

hiphipforfor

Development DevelopmentMukesh VatsMukesh Vats

Topics coveredTopics covered

• INTRODUCTIONINTRODUCTION• CONCEPT OF ENTREPRENEURSHIPCONCEPT OF ENTREPRENEURSHIP• RURAL URBAN DIVIDERURAL URBAN DIVIDE• RURAL ADVANTAGERURAL ADVANTAGE• BASIC TRAINING FOR PROSPECTIVE RURAL BASIC TRAINING FOR PROSPECTIVE RURAL

ENTREPRENEURENTREPRENEUR• BENEFITS OF RURAL ENTERPRISES TO NATIONBENEFITS OF RURAL ENTERPRISES TO NATION• GOVERNMENT STRATEGIESGOVERNMENT STRATEGIES• FACTORS RESPONSIBLE FOR LIMITED GROWTHFACTORS RESPONSIBLE FOR LIMITED GROWTH• HOW TO MOVE FORWARDHOW TO MOVE FORWARD• OWNERSHIP PATTERNOWNERSHIP PATTERN• GATHERING IDEASGATHERING IDEAS

Topics covered Topics covered (contd..)(contd..)

• GATHERING INFORMATIONGATHERING INFORMATION

• PROJECT REPORTPROJECT REPORT

• SOURCES OF FINANCE LEGAL REQUIREMENTSSOURCES OF FINANCE LEGAL REQUIREMENTS

• MARKETING ISSUESMARKETING ISSUES

• TRAINING/SKILL DEVELOPMENTTRAINING/SKILL DEVELOPMENT

• BASIC INFRASTRUCTUREBASIC INFRASTRUCTURE

• OPPORTUNITIES FOR RURAL ENTREPRENEUROPPORTUNITIES FOR RURAL ENTREPRENEUR

• RURAL TECHNOLOGIESRURAL TECHNOLOGIES

• PURA AND RURAL ENTERPRISESPURA AND RURAL ENTERPRISES

• WAY AHEADWAY AHEAD

• SUM UPSUM UP

INTRODUCTIONINTRODUCTION

• The farming activity is itself an example of entrepreneurship as it has all elements of an enterprise i.e. land, labour, process, technology, inputs, finance, risk, marketing etc.

• Our farmers invest money, labour and inputs to get the final out put i.e. harvest.

• However, the income level of the farmers/rural people is much lower than the urban people.

• We have discussed various reasons while learning about processing and marketing etc.

• Sometimes, it is said that risk taking capacity of rural people is lower than the urban people, which is not correct.

Contd…Contd…

• Agriculture itself is a high risk low return activity, and farmers are taking risk year after year to increase the agriculture production.

• The farmers can prove to be better entrepreneurs if proper training is provided

• Several advantages are there in rural areas specially in respect of agro-products and animal husbandry related industries.

• Since the farming is seasonal activity, the farmers can start and run small and micro enterprises.

Contd…Contd…

• In the present scenario ,the rural areas are source of

raw materials and the urban areas are acting as

processing centers.

• This reminds us the typical set up during industrial

revolution when colonies were source of raw

materials and European Nations were processing

and selling back the same to undeveloped nations.

• Prosperity will not come to rural areas unless the

value addition takes place at the rural areas itself.

Contd….Contd….• The absence of entrepreneurship in rural areas is

main cause of poverty in rural areas.

• The farmers are at loss whether ,it is bumper crop or famine.

• Establishment of micro or household industries in rural areas can break the cycle of poverty .

• This will not only bring prosperity but also provide employment to youth and landless people.

• The energy of womenfolk can be used for productive purpose with establishment of small and micro enterprises in rural areas.

Contd…Contd…

• This will also result in saving of huge amount of

energy in form of transportation of bulky raw

materials and manpower going daily to nearby

urban areas for employment.

• The present discussion will be focused on

issues related to prospects and problems

related to entrepreneurship in rural areas and

also the various activities which can be taken

up without huge investment and specialized

know-how.

CONCEPT OF ENTREPRENEURSHIPCONCEPT OF ENTREPRENEURSHIP

• The entrepreneurs were earlier referred as persons participating in military expeditions.

• Now the person/ group of persons who start a business or expand the existing business with full knowledge of risks involved are said to be entrepreneurs.

• The following qualities are important for any person to become an entrepreneur.

1. Motivation-Self motivated persons with desire to perform better.

2. Energetic: capacity to work for long hours.

Contd….Contd….

3. Creative:finding simple solutions rather than

discussing problems.

4. Flexibility : as the business environment is

dynamic and demand ,supply ,products etc.

keep changing rapidly ,flexible approach is

required.

5. Analytical powers :keeping the risk and

uncertainty involved in business, the

analytical power is required to calculate the

risk take appropriate measures to manage it.

Contd….Contd….6. Leadership: since various people are involved

in business at various levels, leadership qualities are needed to bind them as an organization.

7. Vision: Since the enterprise is considered to be “going concern”, the person handling the business must have vision towards future and take steps to avoid redundancy.

• The qualities described above are only indicative, in addition to those indicated above the rural entrepreneur should have additional qualities.

Contd….Contd….

• In a typical rural scenario the person has to deal with problems of infrastructure.

• The socio –economic set up in rural areas is different and the person of rural background will have advantage.

• Similarly, knowledge of local language and customs is also necessary for any entrepreneur.

• A farmer owning and cultivating land in same village will be ideal person to start a micro or medium enterprise.

• Taking advantage of forward & backward linkages is key to success for any rural entrepreneur.

Small ideas Small ideas grow to an grow to an enterpriseenterprise

RURAL URBAN DIVIDERURAL URBAN DIVIDE

• Agriculture as primary

occupation.

• Generally under-

employed people

• Lack of infrastructure

• Low cost of labour and

land

• Cheap local raw

materials

• Variety of occupation

• People having more

than one employment

• Over burdened infra

• High cost of labour and

land

• Costly raw materials

• Poor education and

training facilities

• More prone to natural

disasters

• Difficult access to

technology

• High marketing cost

• Poorly organized

• Migration of talent to

urban areas

• Better education and

training facilities

• Less prone to natural

disasters

• Easy access to new

technology

• High production cost

• Highly organized

• Over population due to

migration

(Contd..)(Contd..)

RURAL ADVANTAGE RURAL ADVANTAGE

• Having gone through the advantages and disadvantages of rural areas as far as establishment of industries is concerned we may observe that following type of industries can be established in rural areas:

a) Labour intensive: food processing, herbal medicines, assembly units etc.

b) Space intensive: bio mass based (paper/pulp), livestock based etc.

c) Low capital: small, tiny and cottage industries like handicrafts etc.

Contd…Contd…

d) Industries without power: like vegetable

dyes, terracotta etc.

e) Seasonal: like sugar, khandsari

production

f) Service based: service centers for

agriculture implements, e-chaupals etc.

g) Skill training based: small computer

training institutes and other skills in

demand.

BASIC TRAINING FOR PROSPECTIVE RURAL BASIC TRAINING FOR PROSPECTIVE RURAL ENTREPRENEURENTREPRENEUR

• We certainly do not require MBAs to run or start rural enterprises.

• Some basic training is necessary for rural people to become prospective entrepreneur.

• Motivation through success stories and actual visits to successful enterprise in the area

• Information related to government agencies and their role

• Systematic way of identifying opportunity• Access to model projects or sources for

preparation of project reports

Contd…Contd…

• Sources of finance

• Government programmes or subsidies

• Knowledge of accounting

• Training in the area selected by prospective

entrepreneur

• Certain general aspects will be discussed in

detail ,however in a dynamic environment

things are changing too fast and latest

information must be collected by person.

BENEFITS OF RURAL ENTERPRISES TO BENEFITS OF RURAL ENTERPRISES TO NATIONNATION

• The trend of establishment of rural industries

will reverse the migration to urban areas.

• The ever increasing slums in urban areas will

be reduced.

• The crumbling infrastructure of urban areas

will get a reprieve.

• Nation will save huge sum of money in form of

fuel.

• The reduced cost of production may result in

higher exports and import substitution of

small value goods.

Contd…..Contd…..

• It will unlock potential of crores of under-employed people and increase the GDP of nation.

• Use of non conventional sources of energy will be encouraged as vast potential for use of bio gas, solar energy, wind and water energy exist in rural areas.

• The large amount of agriculture, horticulture and animal husbandry related produce going waste will be gainfully utilized.

• Public Investment in rural infrastructure will give higher returns and it will encourage private investment.

GOVERNMENT STRATEGIESGOVERNMENT STRATEGIES

• Mahatma Gandhi was one of the prime supporters of khadi and village industries even before industries.

• One of the basic philosophy was to keep the three basic needs of human beings out of purview of mechanization to generate employment i.e. food, shelter and clothing.

• After independence ,the development strategies were worked out in the form of five year plans.

• The first plan :Boards were created for development of six specific rural sectors i.e. khadi, coir, silk, handicrafts, handlooms, small industries.

Contd….Contd….

• Second five year plan: Role and activities of KVIC increased. Items reserved for small scale industries. Technologies resulting in unemployment were discouraged.

• Third five year plan: cluster development approach initiated, training and skill development projects were launched. Rural Industries Project was launched.

• Fourth five year plan: emphasis on quality and financial viability of rural industries. Provision of financial assistance to KVIC for various programmes.

Contd….Contd….

• Fifth five year plan: Agriculture was given less importance as compared to industries.

• Sixth five year plan: Programmes named IRDP and TRYSEM were launched to promote rural entrepreneurship. The programme introduced the concept of subsidy and self employment first time to rural people.

• Seventh five year plan: The strategy of the plan was to enhance the level of earnings of small enterprises by providing assistance in form of technology, entrepreneurship skills and finance.Several dedicated institutions like Small Industries Service Institute

Contd….Contd….

• National Institute of Small Industries Extension and Training, National Institute of entrepreneurship and small business development ,NSIC,DIC etc were activated to provide extension service to small industries.

• Eighth five year plan: The focus was shifted from rural & cottage industries and era of reforms started. The emphasis was to invest in infrastructure and catalyze the growth. Private investment welcomed in all sectors. Reserved items were removed from list one by one.

Contd….Contd….

• Ninth five year plan: agenda of globalization was taken further. Separate ministry was created for small scale and agro industries. Marketing support for KVI products was planned.

• Tenth five year plan: Cluster based development was proposed with financial assistance from KVIC, NABARD, SIDBI and CAPART.

• Eleventh Plan: Technology up gradation, skill development and quality improvement with focus on employment generation.

Factors responsible for limited growthFactors responsible for limited growth

• Though we have already discussed about the

disadvantages /advantages of rural areas as

far as growth of enterprises is concerned.

• Some external factors were also responsible

for limited development of rural enterprises.

Though the factors indicated below can be

reversed in favour of rural industries:

• Subsidy and target oriented programmes

encouraged people to somehow avail the

subsidy and the enterprise could not sustain

for long.

Contd…..Contd…..

• Technology developed at faster rate and the rural people could not get the benefits.

• The electronic media diverted the attention of youth from enterprise to wage employment or jobs for easy life, it also promoted migration.

• The limited infrastructure expenditure was concentrated to urban areas as private investment was not allowed.

• The image of rural enterprise was limited to “khadi cloth”, “achar –murabba” or “kachhi ghani oil”, which resulted in rural areas becoming source of raw materials only.

HOW TO MOVE FORWARDHOW TO MOVE FORWARD

• We have discussed about the past and problems, but future of rural industries is bright.

• The growing concern about environmental degradation and reducing carbon emission opens a flood gate of opportunities for rural industries, low technology, low energy intensive and natural products.

• Increasing interests in organic products, chemical free cosmetics and vegetable dyes etc can open a flood gate of opportunities for rural industries.

• Export of small items from toys to school bags has boosted Chinese economy and made it a world leader in economic development.

• We will now discuss about the options, sources of finance and technologies available to youth for starting new enterprise.

• As and when a person decides to start an enterprise, he has choice to take up any of the following :

1. Manufacturing or processing

2. Trading ,retail sales ,distribution etc.

3. Service sector

4. Contracting

5. Combination of above activities

OWNERSHIP PATTERNOWNERSHIP PATTERN

The rural enterprise can be owned in one of the following ways:

• Individual ownership (in most of the cases, this pattern is there)

• Partnership or private limited companies (when the business grows ,the above formations take place for expansion)

• Cooperatives: these institutions have legal identity and formed by willing people for achieving a common goal.

• Group ownership : It includes NGOs, VOs, JLGs

• The groups like, self help groups though do not have formal structure but they can run an enterprise and also eligible for bank finance.

• The choice of ownership pattern will depend on the type of business activity and requirement of manpower or money required for the particular enterprise.

• For example, a forest produce based activity is generally taken up by group of persons in form of cooperatives or self help groups.

• However in case of trading, the best structure is individual ownership.

Proprietorship or individually owned Proprietorship or individually owned enterprises enterprises

• In this case the individual called Proprietor is absolute owner of the enterprise. His liability is 100%.

• This structure is best suited for small enterprises where capital requirement is low and many legal complications are not there.

• The sense of ownership and passing the business to next generation are best motivators.

• However ,this type of organizations have limited access to the bank funds and no access to public funds in form of shares.

PARTNERSHIP CONCERNSPARTNERSHIP CONCERNS

• Partnership concerns can have maximum 20 persons as partners working together for common goal and objective.

• The firms are governed by Indian Partnership Act 1932.

• The partners can take advantage of best abilities of each other and pool the resources for enterprise.

• It is always better to have a written agreement to avoid any legal issues later on.

• The partnership concerns fail when the duties and responsibilities of partners are not clearly defined.

PRIVATE LIMITED COMPANYPRIVATE LIMITED COMPANY

• The private limited companies can have 2-50 shareholders

• The liability of the shareholder is limited in this case ,as the personal assets are separate from the assets of the shareholders.

• The promoters of public limited companies have better control on day to day affairs of the company .

• The private limited companies have better access to bank finance .

• This type of organization is suitable for medium level business.

PUBLIC LIMITED COMPANIESPUBLIC LIMITED COMPANIES

• The public limited companies can have minimum 7 shareholder and there is no limit on maximum number.

• The company can raise money from general public by issuing shares or debentures.

• The public limited companies have to follow the norms and laws as per companies act 1956.

• Such organizations are generally out of purview of rural enterprise as the size of business is small, however a successful entrepreneur can convert the small enterprise into company.

NGO / Voluntary OrganizationsNGO / Voluntary Organizations

• A group of 7 or more persons can start NGO for public service and specific objective.

• The NGOs are registered under Society’s Registration Act 1860.

• Specific rules and regulations are formulated to manage the day to day affairs of NGOs.

• These organizations can receive government grants or public donations.

• The voluntary organizations are registered under any of the act like Indian Trust Act, Society’s Registration Act etc.

• These organizations are promoted by self motivated, social service oriented people.

SELF HELP GROUPSSELF HELP GROUPS

• These are informal groups of 10-20 persons from below poverty line families.

• The groups are formed for mutual help and people pool there small savings for mutual benefits on agreed terms.

• The groups are eligible for bank finance and can graduate into joint liability groups for starting rural enterprises.

• Various schemes of GOI & NABARD are available for the SHGs so that the members can come out of the cycle of poverty.

COMMUNITY BASED ORGANIZATIONSCOMMUNITY BASED ORGANIZATIONS

• The CBOs are also informal organizations.

• They come together for common cause or objective, however there economic status may be different.

• They also receive funds from various donors and GOI .

• There is no liability on part of members as the donor agencies make necessary enquiries before release of funds.

CO-OPERATIVESCO-OPERATIVES

• These are association of persons coming together for common objectives, and the organizations are controlled by elected boards and functioning of organization is based on democratic principles.

• There could be different types of cooperatives like producers, marketing, credit or housing etc.

• The cooperatives could be single state or multi state.

• The success of AMUL in milk processing and marketing is an example for entire world but we could not replicate the same….why??

Gathering ideasGathering ideas• Either the entrepreneur himself acts as

innovator or he can contact certain institutions to get business ideas suitable for rural areas.

• The following institutions are dealing in this area:

1. KVIC2. NABARD3. SIDBI 4. EXTEN. CENTERS OF AGRICULTURE UNIV.5. NIDC,NIESBUD6. TECHNICAL CONSULTANCY ORG IN EACH

STATE7. CENTERS FOR ENTREPRENEURSHIP

DEVELOPMENT8. DEVELOPMENT COMMISSIONER

HANDICRAFTS/ COTTAGE INDUSTRIES

Contd…..Contd…..

• Some institutions are dealing purely in business ideas related to agriculture produce:

1. ICAR & ITS EXTENSION CENTERS2. CFTRI3. NHB4. NATIONAL MEDICINAL PLANT BOARD5. APEDA6. NATIONAL INSTITUTE FOR ORGANIC FARMING 7. NBRI8. CIMAP 9. FLAVOURS & FRAGRANCES DEVELOPMENT

INSTITUTE ETC.

GATHERING INFORMATIONGATHERING INFORMATION

• Once a person decides to start a business, he has to gather certain information related to business whether external finance is involved or not.

1. Similar enterprise in area and its viability.2. Availability of raw materials (nearby

/source)3. Technology or know how4. Availability of labour and skilled persons5. Marketing channels6. Related government policies/promotional

scheme7. Prospective buyers and demand pattern

etc.

PROJECT REPORTPROJECT REPORT

• Once an entrepreneur firms up the type of enterprise proposed to be established he will have to make a project report even if institutional finance is not involved.

• The project report helps the person to take objective decisions and also compare the data at the time of planning and actual implementation.

• The following information is required for a typical rural enterprise:

1. Name of entrepreneur and nature of the enterprise.

Contd….Contd….2. Demand for the item, planned capacity and

production schedule3. Source of raw materials, present cost and

approximate quantity required.4. Technology and skill required including

cost5. Manpower requirement 6. Cost of building, plant and equipments7. Recurring expenditure 8. Finance required at initial stage and the

source9. Financial appraisal showing viability of the

project by methods such as IRR, BCR etc.

SOURCES OF FINANCESOURCES OF FINANCE

• All entrepreneurs are not financially sound and may require assistance from financial institutions or banks for the project.

• Various sources of finance are;1. Commercial Banks2. Cooperative Banks3. Agriculture and Rural Development Banks4. Regional Rural Banks5. SIDC of various states6. Non Banking Finance Companies

Subsidies are also available under various government schemes.

LEGAL REQUIREMENTS LEGAL REQUIREMENTS

• Though the household and cottage industries do not require any registration, the small scale industries require registration with DIC.

• Registration with Trade Tax, Service Tax etc. is also required depending on nature of work

• In case the enterprise can be classified as industry, the following laws are also applicable:– The Factories Act– The Industrial Dispute Act

• The following laws are applicable even if the enterprise is not classified as industry:

(Contd..)(Contd..)

• Minimum wages act

• Payment of gratuity act

• ESI Act

• Payment of wages act

• Payment of Bonus Act

• Prohibition of child labour

• Pollution control act

• Other specific laws applicable to various

type of activities

Marketing issuesMarketing issues

• Marketing of rural produce is prime concern for the rural entrepreneurs .

• The rural areas act as markets for the person choosing service industry or trading as business.

• However, the urban areas and other villages act as markets for the manufacturing or producing enterprises.

• Some of the rural products even have export markets .

• Depending on the type of products market mix can be planned.

(Contd..)(Contd..)

• Direct marketing to bulk consumers (e.g. hotels for primary or secondary processed foods) through contacts.

• Marketing through retail outlets of KVIC• Participating in mela, haat or exhibitions• Direct sales to whole sellers/exporters• Direct sales to industries in advance

processing field like Ayurvedic Medicines• Marketing through cooperative marketing

system like Amul• Marketing through Web Site

(Contd..)(Contd..)

• Marketing through Mega Retail Stores like Spencers (e.g. high tech agriculture produce, cut flowers, ready to cook vegetables etc.)

• Marketing through Government Emporium

(handicrafts, handloom items, silk items)• Direct marketing through weekly market in

rural/urban areas.• Taking supply contracts from bulk buyers

like Army etc.

Traditional and developed marketsTraditional and developed markets

Training/skill developmentTraining/skill development• Every entrepreneur should undergo specialized

training before entering into a venture specially manufacturing, service or high tech agriculture.

• Specific skills development or area specific training institutes are conducting training for youth, such as;

1. CIMAP for medicinal plants2. NBRI for floriculture3. CFTRI for food processing4. NIRD for rural technology related projects5. NABARD is sponsoring various skill training

pogrammes through NGOs.

• The intending youth can get details from various web sites and News Papers or contact Kisan Help Line

TrainingTraining

TheThe

EntrepreneursEntrepreneurs

Basic infrastructureBasic infrastructure

• We have already discussed the importance of infrastructure for development ,however the minimum requirements are indicated below:– All weather roads– Electricity– Water supply– Telecommunications– Banking etc.

Opportunities for rural entrepreneurOpportunities for rural entrepreneur

• The number of opportunities existing in rural area are unlimited, considering its area, population, bio diversity and different agro climatic zones.

• We will now discuss the broad areas under which the opportunities can be classified and few time tested ideas.

Farm based enterpriseFarm based enterprise

• Organic farming: the demand for organic products is increasing day by day.

• The certified organic products have good export potential.

• All inputs are available in rural areas ,if number of farmers take up this activity ,trading is another option for entrepreneurs.

• Floriculture: good demand exist in urban areas. If the village is located near to urban areas ,cost of transportation will be low.

Organic farming and floricultureOrganic farming and floriculture

(Contd..)(Contd..)

• High tech agriculture: Production of exotic vegetables, off-season vegetables, mushrooms etc are covered under this. The demand for the produce is increasing with increase in income of middle class.

• Medicinal plants: demand for cultivated medicinal plants is increasing due to reduced availability of medicinal plants from forest.

• Ayurvedic drug manufacturers are also entering into contracts with farmers for supply of medicinal plants.

(Contd..)(Contd..)• Aromatic plants: demand for natural perfumes

is increasing due to health issues related to chemical products. This has open gate for commercial production of aromatic plants.

• Commercial forestry: waste lands not fit for agriculture can be used for commercial forestry. Plants like eucalyptus, poplar, bamboo etc can be raised. Paper mills, matchstick manufactures and furniture makers are buying these items. The bamboo tree can be utilized for more than 30 products.

Medicinal plants and spicesMedicinal plants and spices

(Contd..)(Contd..)

• Bio fuels: about 30 verities of plants have been identified for production of bio fuels. Jatropha is one such verity. Raw oil can be extracted in rural areas for further refining into bio diesel.

• Seed production: good quality certified seeds are in great demand and marketing is very easy.

Food processing & agro waste based Food processing & agro waste based businessbusiness

• Food processing is most preferred activity for rural entrepreneurs.

• The value addition is considerable and the market is open and expanding.

• We have already discussed this topic in detail.• Millions of tons of agro waste is burnt every

year. • Simple option is to convert the waste into

briquettes which can be burnt in place of coal/wood in various rural /urban industries.

Food processingFood processing

(Contd..)(Contd..)

• Several other products such as rice bran oil, Gum from tamarind seeds etc. can be extracted at commercial scale.

• There are several other products like hand made paper, board, packing paper and corrugated paper boards etc. which can be made in rural areas.

Farm nutrition/ Pesticide productsFarm nutrition/ Pesticide products

• Presently our farmers are over dependent on chemical fertilizers for farming operations.

• The farmers can produce several organic fertilizers like compost, vermi –compost, neem based and other herbal pesticides etc on commercial scale for own use and sale in urban/ rural areas.

• The matter has been covered in details in organic farming module.

• The products are very low energy consuming and use raw materials which are otherwise waste.

Animal husbandry based enterpriseAnimal husbandry based enterprise• Dairy is most popular and organised rural

enterprise, the scale can start from 2-3 animals to hundreds of animals .

• Processing and distribution of milk is related business.

• It is expected that milk production in terms of money will cross the paddy very soon.

• The next popular enterprise is poultry.• In addition to sale of eggs and the poultry birds,

the poultry feed industry is also a viable enterprise.

(Contd..)(Contd..)

• In addition to the produce from living animals, certain rural industries are based on the residue of dead animals like bones and hide etc.

• The commercial rearing of various animals like pigs, sheep, goats and rabbits for wool and meat is also a popular enterprise in rural areas where grass is easily available.

• the topic has been discussed in detail in animal husbandry module.

• Misuse of hormones, chemicals and unethical rearing practices are major concerns for this sector.

Goat farmGoat farm

Sericulture/ apicultureSericulture/ apiculture

• Sericulture is very popular in certain pockets of India and is an old profession.

• The silk garments are very popular and the sericulture can be taken up on commercial scale as there is no problem in sale of raw as well as processed silk.

• Apiculture on commercial scale is gaining popularity not only for direct domestic sale but also for export .

• The honey bees also contribute towards pollination thereby increasing agriculture production.

Bee keeping and Dairy farmBee keeping and Dairy farm

Aquaculture Aquaculture

• Aquaculture can be practiced in any part of country where water is available.

• The waste lands, degraded lands and closed brick kilns can be converted into fish tanks

• the aquaculture can also be practiced with other allied industries like poultry as waste of one can be used in other.

• In costal areas, the shrimp or prawn culture is also popular .

Fish farmingFish farming

Traditional handicraftsTraditional handicrafts

• India is famous for traditional crafts based on skills and local materials.

• There is huge export market for crafts and traditional products.

• Those interested in trading can buy the products from small manufactures and sell it in urban markets.

• The cooperatives or self help groups of producers can also take up trading activity.

Handloom/Power loom/KhadiHandloom/Power loom/Khadi

• This sector is providing employment to lakhs of rural people presently, but only traders from urban areas are benefited from sale of the items produced by rural people .

• If the cooperatives or self help groups of weavers can take up this activity, the benefit will go to rural people.

• Similarly the rural entrepreneurs can also take up this activity by value addition like ready made garments .

• Huge export potential exist in EU for the hand woven ,vegetable dye products without quota restrictions.

Khadi - Khadi - CharkhaCharkha to ready made to ready made

Edible oilsEdible oils

• India is an importer of edible oils.

• Production, extraction, packing, certification etc are potential areas having good demand.

• The by- products of oil extraction industry can be used for animal feed industry.

• Some of the by-products can be used for making several health products for human consumption like de-oiled ground nut powder, coconut husk, soy bean etc .

Service sectorService sector

• Service sector,growing at a high rate in urban areas, has good potential in rural areas also.

• Repair shops, service centers, PCO, internet café, hiring of agriculture implements & tractor, computer and other skill training centers have good scope in cluster of villages.

• Success of the e-chaupals has opened door for replication of this model.

• Entertainment, cable TV ,rural tourism and amusement parks (near urban areas) are also some of the potential areas for entrepreneurs in service sector

An opportunity in Service sectorAn opportunity in Service sector

E-chaupalE-chaupal

Service sector and Small units Service sector and Small units create employmentcreate employment

Trading/ ContractingTrading/ Contracting• Changed consumption pattern has opened

doors for trading activities in rural areas.• Demand for fast moving consumer goods as well

as consumer durables such as television sets, mobile phones, DVD players etc is increasing.

• Rural areas are also consuming large amount of agriculture inputs such as fertilizers, seeds, pesticides and insecticides etc.

• Various development programmes are being executed through Panchayti Raj Institutions, who are engaging contractors for civil /mechanical works. Rural youth can enter into this business.

(Contd..)(Contd..)

• Various banks, financial institutions and other extension agencies are executing programmes through NGOs.

• Educated rural youth having social service inclination can form NGOs /VA s for dual purpose of social service and business like activities.

RURAL TECHNOLOGIESRURAL TECHNOLOGIES

• There are many sources for getting technology inputs for establishing a rural enterprise however the Directory of Rural Technologies published by NIRD, Hyderabad is very useful .

• The book in three volume covers technological inputs for construction, hi-tech agriculture, fertilizers, fisheries, post –harvest technologies, mechanical works, leather technology, water conservation, natural dyes, solar heaters and cookers, bio-gas ,food processing etc and is very useful for prospective entrepreneurs.

PURA and Rural enterprisesPURA and Rural enterprises

• PURA aims at all types of connectivity within rural clusters.

• If the programme like PURA is implemented in India, we will be able to see changed rural landscape.

• It will give tremendous boost to Rural Industries and Infrastructure.

• Developed infrastructure will attract the rural youth to come back to rural areas, this will also generate employment in service sector.

Way aheadWay ahead• The present day problems of rural India can not

be solved without reducing the dependence of rural population on agriculture income alone.

• Since migration to urban areas is not feasible, rural industries alone can help us.

• We have to list the low technology high labour intensive products being imported .

• As a first step, the products can be introduced to rural entrepreneurs.

• People will be willing to pay high cost if the quality is good.

• Food processing may be second step towards rural industrialization.

Sum upSum up• We have discussed the process of

establishing a rural enterprise in detail.• The opportunities are tremendous but

takers are few.• Reason is lack of infrastructure and

awareness.• The media has spread the glamour of

urban life and speeded up the process of migration.

• Coordinated efforts of various agencies are required to achieve the goal of rural industrialization .

Thank Thank YouYou