Rural business in india

Rural business

1. Presented by Simran Kaur MBA 2 nd year IGICM Rural Business in India

2. Business is an economic activity involving regular production or purchase and distribution of goods and services with the object of earning profit Rural businesses are those firms that are established and operate in rural settings, far from the metropolitan areas that have traditionally been the site of most non-agricultural business enterprises Rural Business

3. Size Sectoral mix Innovation performance Inadequate resources Competitive environment Limited information access Management of natural resources High operation cost Features of Rural Business

4. Agro-based business Forest-based business Mineral-based business Traditional business Dairy business Renewable energy business Types of Rural Business

5. Utilize the idle capital Utilize the local resources Avoid migration of rural population Promotion of artistic activities Encourage rural youth Equitable distribution of income Standard of living Provide employment opportunities Balanced regional growth Check on social evils Importance of Rural Business

6. FINANCIAL PROBLEMS Paucity of funds Lack of infrastructural facilities Risk element MARKETING PROBLEMS Competition Communication Middlemen Problems of Rural Business

7. MANAGEMENT PROBLEMS Lack of knowledge of IT Procurement of raw material Poor quality of products HUMAN RESOURCES PROBLEMS Problems of Rural Business(contd.)

8. Associated society, cooperative, union, federation or even a firm Promote interests of farmers Owned and controlled by their members Give farmers a political voice Two categories of economic functions: 1)integrated forward by processing/marketing farm products 2) integrated backwards by purchasing/producing farm inputs Rural Producer Organization(RPO)

9. Information needs Improved contract farming Multipurpose organization Vertical coordination Professionalization Controlling institutional environment Needs of RPO

10. Enabling business environment Adequate mechanisms, processes and structures Effective infrastructure Access to integrated and open markets Financial needs Needs of Rural Enterprises

11. Financial need Technical need Infrastructure need Administrative need Needs of Rural Projects

12. Primary health facilities Education Proper sanitation Nutrition, water and housing Information Road and transportation Needs of Rural People

13. Analyses threats and opportunities of rural market Adopt strategies for changing requirements 2 sections of rural population: large portion have a low income and low consumption levels; and the rest are rural rich Rural Marketing Environment

14. Population Occupation patterns Infrastructure facilities Land distribution Rural retail outlets Rural area requirements Elements of Rural Marketing Environment

15. Income generation Rural credit institutions Print media in rural areas Literacy level Expenditure pattern Location of rural population Elements of Rural Marketing Environment (contd.)

16. Social environment Economic environment Demographic environment Physical environment Political environment Technological environment Factors affecting Rural Marketing Environment

17. Knowledge of marketing environment is central to marketing management Spotting opportunities and threats Strategic response to environment is possible only with proper environment analysis Task involved in marketing environment analysis Significance of analyzing Rural Marketing Environment

18. Society living in village and dependent on natural environment Rich in culture and tradition Economy rests on agriculture and allied activities Socio-economically less developed Rural Social Scenario

19. Religion Central mobility Caste system Institution of marriage Village unity Internal organization Joint family system Occupational structure Features of Structure Dynamics of Rural Society

20. Characterized by Jajmani system Conceptualize agrarian social structure in framework of exchange relations Servicing castes such as priest, barber, and w asherman and water carrier cater to needs of everyone except Harijans Paid annually in grain at harvest time Jajmani in North, bara batute in Maharashtra, mirasi in Tamil Nadu, adade in Karnataka Rural society in India in pre-independence period

21. Community development programme in 1952 In 1959, Panchayati Raj started In 1979, Integrated Rural Development Programme Nature of property relations negatively to physical labour on land Process of planned development has transformations in rural society Green revolution started Changes of rural society in India in post-independence period

22. Market focused agrarian sector Adoption of improved tools and techniques Appearance of power block Government intervention Effect of new intermediaries on politics Trends of rural transformation post-independence

23. Based upon perseverance of certain old traditional values Panchayat and Village Pradhan/ Sarpanch represented rural India historically Three-tier structure of local government in rural areas at village, mandal and district levels Reserved representation is available for SC/ST Rural political scenario

24. Administrative set-up and decentralization of power Role and importance of political parties in rural society Local village politics Features of structure dynamics of rural politics

25. ANCIENT AND MEDIEVAL PERIOD Ancient period: self-government functioned in self-sufficient villages Comprised village assembly and its standing committee Basic functional and administrative autonomy continued to be its distinctive characteristics Feudalistic system of governments during medieval period Rural politics in India in pre-independence period

26. BRITISH PERIOD Administrative foothold in Bengal during 1765 About mid-forties, East India Company ruled Highly centralized bureaucratic system of administration In 19 th century, rudimentary type of municipal bodies began to be established Rural politics in India in pre-independence period(contd.)

27. Changes in relationship between rural people and state-led politics Successful implementation of PRIs( Panchayati Raj Institutions) Reservation for SC/ST and women Attention to both panchayat and party as two institutions of political power Changes of rural polity in India in post-independence period

28. Amendments in Panchayati raj Gram sabha Re-organized Panchayat system Women empowerment Changes of rural polity in India in post-independence period

29. THANK YOU!!!