Rural Industrialization and Women Entreprenuership

Meaning of rural industrialization, Entrepreneurship, Women Entrepreneurship, Challenges and Remedies, SMEs and their role

1. Unit-5: Rural Industrialization and
Entrepreneurship
Prepared by:
Ankur Sachdeva
Assistant Professor, ME
Ankur Sachdeva, Assistant Professor, ME

2. Introduction
•Oneofthecentralproblemsimpingingsignificantlyonruraldevelopmentistheshrinking
employmentopportunitiesinruralareas.
•Seasonalunemployment,partialunemployment,andartisanswhoareatthemargins
becausethetechnologytheyusehasbecomeobsoletearecommoninIndianvillages.
•Findingjobstomatchtheskillsofthepeopleisoneenormoustaskforanygovernment.
•Agricultureiswidelyfoundtobenon-remunerative.Thishasacceleratedmigrationto
urbanareasinabigway,worseningthesituationofurbanpoverty.
•Thedearthofaccesstoinformation,knowledgeandtechnologymakesruralpeoplestand
awayandwatchtheirresourcessuchasland,sand,soil,water,vegetation,herbs,treesetc.
beingexploitedbyprofiteeringinterests.
•Theunletteredorsemi-literateruralpeoplewinduptheirbusinessinvillagesandgetset
todeparttourbancentresinsearchofemploymentinthecities.
Ankur Sachdeva, Assistant Professor, ME

3. Meaning of Rural Industrialization
•RuralIndustrializationmeansencouragingthelocationoflargeandsmallscale
unitsawayfromurbanareasorplannedshiftingofunitsfromurbanareasto
ruralareas.
•Ruralindustrializationaimsattheall-arounddevelopmentofanareaaswellas
peoplelivinginsuchareas.
•Ruralindustrializationincludeseconomicactivitiesoutsideagriculture,carriedout
invillagesandvaryinginsizefromhouseholdstosmallfactories.
•Someexamplesoftheseactivitiesarecottage,tiny,villageandsmall-scale
manufacturingandprocessingindustries;andservicesofvariouskinds.
Ankur Sachdeva, Assistant Professor, ME

4. Significance of Rural Industrialization
•Theycanslowdownurbanmigrationandtherebyeasetheproblemsof
urbanization.
•Theyleadtoimprovementintheenvironmentbyreducingtheconcentrationof
industrialunitsinbigcities.
•Theycanincreaseruralincomeandgeneratenonfarmemploymentforthe
farmers.
•Theycanreducebothskilledandunskilledunemployment.
•Theycanpromotebalancedindustrializationbyavoidingexcessiveindustrial
concentration.
•Theyarebasedonthelocalneedsandcanbettermeetthelocalconsumption
needs.
Ankur Sachdeva, Assistant Professor, ME

5. Objectives of Rural Industries
•Toassistinthegrowthandwidespreaddispersalofindustries
•Toincreasethelevelsofearningsofartisans;
•Tosustainandcreateavenuesofself-employment;
•Toensureregularsupplyofgoodsandservicesthroughtheuseof
localskillsandresources;
•Todevelopentrepreneurshipincombinationwithimprovedmethods
ofproductionthroughappropriatetrainingandapackageof
incentives;
•Topreservethecraftsmanshipandartheritageofthecountry
Ankur Sachdeva, Assistant Professor, ME

6. Gandhian Approach to Rural Industrialization
•Gandhianapproachhasalwayssaidaboutthevoluntarywants,theneedforself-
sufficientvillagecommunitiesandtheissuesrelatingtoabetterbalancebetween
manandnature.
•Gandhiwantedtohaveanidealsocietyofhisownimaginationandhiseconomic
ideasareapartandparcelofhisphilosophicalandsociologicalideas.
•Gandhiwasinterestedinthegrowthofhumanbeingsandmoresignificantlythe
growthofthedeprivedandunderprivilegedgroupofpeople.
•'RuralIndustrialization'wasneverthetermusedbyGandhi.
•However,twobasiccomponentsofGandhiandevelopment,self-sufficientvillages
anddecentralizationofeconomicandpoliticalpowers,gaveaveryimportant
placetothedevelopmentofKhadiandVillageIndustries.
Ankur Sachdeva, Assistant Professor, ME

7. Gandhian Approach to Rural Industrialization
•AccordingtoarecentstudytheKhadimovementwasnotonlyamass
mobilizationmovementagainsttheanti-imperialiststruggle,butitwasalsoa
socialmovementofrecognizingwomen’scapacityaseconomicallyandpolitically
activebeingswithoutwhosesupportthegoaloffreedomorSwarajwouldbe
unattainableandmeaningless.
•Infact,Gandhi’swell-knownconceptof'LivingWageforSpinners'originatedin
hisrealizingthedangerofwomenbeingpaidlowwagesevenbyconstructive
workers.
•TheWorldofAppropriateTechnology,inwhichitdefinedappropriatetechnology
ascharacterizedby"lowinvestmentcostperworkplace,lowcapitalinvestment
perunitofoutput,Organizationalsimplicity,highadaptabilitytoaparticular
socialorculturalenvironment,sparinguseofnaturalresources,lowcostofthe
finalproductorhighpotentialforemployment.
Ankur Sachdeva, Assistant Professor, ME

8. Gandhian View of Self–Sufficient Village Economy
•Gandhiholdstheviewofthemaximizationofsocialwelfareandforthis,hegivesprimeimportancetothewelfare
oftheindividualsbyreducinginequalitiesinincomeandwealth.
•Gandhiisinfavouroftheself-sufficientvillageeconomywherethevillageswillbetheindependenteconomicunits.
•Indialivesinvillages.Naturally,thedevelopmentofthecountrydependsonthedevelopmentofvillages.
•Allthegoodsandservicesnecessaryforthevillagemembersshouldbegrownwithinthevillage.
•Agriculturalsectoralonecannotsolvetheproblemofruralpovertyandunemployment.That'swhyGandhigives
stressonthegrowthoftheruralindustrieslikekhadi,handlooms,sericultureandhandicrafts.
•Heopinesthatlarge-scaleindustriesmakepeoplelazyandhelpconcentratewealthinthehandsofafew.Therefore
thereisnoproblemwithproductionandmarket.
•Largescaleproductioncreatesconflictsbetweenlabourandcapital.Onthecontrary,ruralindustriesarebasedon
familylabourandrequiredlessamountofcapital.
•Therawmaterialsarealsocollectedfromlocalmarketsandthegoodsthusproducedaresoldinthelocalmarkets.
•Gandhiisnotinfavouroflarge-scaleindustriesinthesensethattheseindustriesarenotrelatedtoavastpopulation
livinginruralareas.
•Thusindustrialization,accordingtoGandhi,doesnothelpthegrowthofthepersonality;contrarilyithelpsonlythe
materialprogressofafew
Ankur Sachdeva, Assistant Professor, ME

9. Meaning of Rural Entrepreneurship
•Insimpleterms“entrepreneurship”istheactofbeinganentrepreneur,whichcan
bedefinedas“onewhoundertakesinnovations,financeandbusinessacumenin
anefforttotransforminnovationsintoeconomicgoods”.
•Ruralentrepreneurshipcertainlyimpliesentrepreneurshipemerginginruralareas.
•Inotherwords,establishingtheindustryinruralareasisreferredtoasrural
entrepreneurship.
•Thismeansthatruralentrepreneurshipissynonymouswithruralindustrialization.
•Diversificationintonon-agriculturalusesofavailableresourcessuchas
blacksmithing,cateringfortourists,carpentry,spinningetc.aswellas
diversificationintoactivitiesotherthanthosesolelyrelatedtoagriculturalusage
liketheuseofresourcesotherthanlandsuchaswater,woodlands,buildings,local
featuresandavailableskillsallfitintoruralentrepreneurship.
Ankur Sachdeva, Assistant Professor, ME

10. More Areas of Rural Entrepreneurship
•Theentrepreneurialcombinationsoftheseresourcesare
•tourism,
•sportandrecreationfacilities,
•professionalandtechnicaltraining,
•retailingandwholesaling,
•industrialapplications(engineering,crafts),
•servicing(consultancy),
•valueadded(productsfrommeat,milk,wood,etc.)andthe
possibilityofoff-farmwork.
Ankur Sachdeva, Assistant Professor, ME

11. Role of Rural Entrepreneurship in Economic Development
•Formation of capital:
•Entrepreneursassuchbyplacingprofitablebusinesspropositionsdoattractinvestmentto
ensureprivateparticipationintheindustrializationprocess.
•General Job creators and job providers and not the job seekers:
•Employmentisgenerateddirectlybytherequirementofthelargeenterprisesandalso
indirectlybyancilliariationandconsequentialdevelopmentalactivities
•Balanced regional development:
•Entrepreneursalwayslookforopportunitiesintheworkingenvironment.
•Theycapitalizeontheopportunitiesofgovernmentalconcessions,facilitiesandsubsidies
tosetuptheirenterprisesinundevelopedareas.
•ClassicexampleissettingupofsteelplantatTataNagar,ReliancePetrochemicalsat
Jamnagar(Gujarat)whichhaveresultedinthedevelopmentofGoodTownshipand
peripheralregionaldevelopment.
Ankur Sachdeva, Assistant Professor, ME

12. Role of Rural Entrepreneurship in Economic Development
•Improvement in the standard of living
•Entrepreneurialinitiativestakenbyentrepreneursthroughemploymentgeneration
leadtoanincreaseinincomeandalsopurchasingpowerwhichisspenton
consumptionexpenditure.
•Certainlyincreaseddemandforgoodsandservicesboostsupindustrialactivity.
•Largescaleproductionwithtechnologicaladvancementswillresultineconomiesof
scaleandlowcostofproduction
•National Self-Reliance
•Entrepreneursarecertainlythecornerstoresofnationalself-reliance.
•Theyhelptomanufactureindigenoussubstitutesforimportedproductswhichreduces
thedependenceonforeigncountries.
•Thereisalsoawidepossibilityofexportingthegoodsandservicestoearnforeign
exchangeforthecountry.
•Hence,theexportpromotionandimportsubstitutionensureeconomicindependence
andthecountrybecomesself-reliant.
Ankur Sachdeva, Assistant Professor, ME

13. Role of Rural Entrepreneurship in Economic Development
•Increase in per capita income:
•Entrepreneursconvertthelatentandidleresourceslikelabour,landandcapitalintogoodsand
servicesresultinginanincreaseinthenationalincomeandinturnwealthofanation.
•Theincreaseinnationalincomeisthusanindicationofanincreaseinthenetnationalproduct
andpercapitaincomeofthecountry.
•Planned Production:
•Entrepreneursareconsideredandbestjudgedaseconomicagentssincetheyuniteallmeansof
production.
•Allthemajorfactorsofproductioni.e.,land,labour,capitalandenterpriseareallbrought
togethertogetthedesiredproduct.
•Thiswillhelptomakeuseofallthefactorsofproductionwithperseverance,proper
judgementandknowledgeoftheworldofbusiness
•Equitable distribution of economic power:
•Theincreasingnumberofentrepreneurshelpsinthedispersalofeconomicpowerintothe
handsofmanyeffectiveandefficientmanagersofnewenterprises.
•Hencesettingupofalargenumberofenterprisescertainlyhelpsinawakeningtheevileffects
ofmonopolies
Ankur Sachdeva, Assistant Professor, ME

14. Major benefits from Rural Entrepreneurship
•Provide employment opportunities:
•Ruralentrepreneurshipassuchismainlylabour-intensiveandcertainlyprovidesa
clearsolutiontothegrowingproblemofunemployment.
•Mainlythedevelopmentofindustrialunitsinruralareasthroughrural
entrepreneurshiphasahighpotentialforincomecreationandemploymentgeneration
•Balanced regional growth:
•Ruralentrepreneurshipcandispeltheconcentrationofmajorindustrialunitsinurban
areasandalsopromoteregionaldevelopmentinabalancedway
•Check on the migration of rural population:
•Ruralentrepreneurshipcanfillthelacunaeandbiggapandalsodisparitiesinincome
forruralandurbanpeople.
•Ruralentrepreneurshipwillbringinordevelopinfrastructuralfacilitieslikeroads,
power,bridgesetc.
•Itcanhelptocheckthemigrationofpeoplefromruraltosemi-urbanandurban
areasinsearchofjobs
Ankur Sachdeva, Assistant Professor, ME

15. Major benefits from Rural Entrepreneurship
•Promotion of artistic activities in rural areas:
•Theage-oldrichheritageofruralIndiaispreservedbypromotingandprotecting
handicraftsandartsthroughruralentrepreneurship.
•Check on social evils existing in society:
•The growth of rural entrepreneurship can reduce social evils like the growth of slums,
poverty, pollution in cities etc.
•Awaken the rural youth:
•Rural entrepreneurship can awaken the rural youth and also expose them to various
avenues to adopt entrepreneurship and promote it as a career.
•Improved standard of living:
•Ruralentrepreneurshipwillalsoincreasetheliteracyrateoftheruralpopulation.
Theireducationandself-employmentwillalsoprosperthecommunity,thus
increasing their standard of living.
Ankur Sachdeva, Assistant Professor, ME

16. Problems in Rural Entrepreneurship
1.Financial Problem
(a)Paucity of funds:
•Duetotheabsenceoftangiblesecurityandcreditinthemarketmostoftherural
entrepreneursfailtogetexternalfunds.
•Alsotheproceduretoavailoftheloanfacilityfromthebanksistootime-consumingthat
itsdelayoftendisappointstheruralentrepreneurs.
•Lackoffinanceavailabletoruralentrepreneursisbyfaroneofthebiggestproblems
facedbyruralentrepreneursnowadaysespeciallyduetotheglobalrecession.
(b)Lack of infrastructural facilities:
•Inspiteofeffortsmadebythegovernmentthegrowthofruralentrepreneursisnotvery
healthyduetoalackofproperandadequateinfrastructuralfacilities.
(c)Risk Element:
•RuralEntrepreneurshaveverylessrisk-bearingcapacityduetoalackoffinancial
resourcesandexternalsupport.
Ankur Sachdeva, Assistant Professor, ME

17. Problems in Rural Entrepreneurship
2. Marketing Problem
(a)Competition:
•Ruralentrepreneursfacestiffandseverecompetitionfromlarge-sizedorganizationsandurban
entrepreneurs.
•Theyincurahighcostofproductionduetohighinputcosts.
•Problemofstandardizationandcompetitionfromlargescaleunitsaresomeofthemajorproblemsfacedby
marketers.
•Theyfacetheproblemoffixingthestandardsandthenstickingtothem.
•Forthesurvivalofnewventurescompetitionfromlargescaleunitsalsocreatesdifficulty.
•Newventureshavelimitedfinancialresourcesandhencecannotaffordtospendmoreonsalespromotion
andadvertising.
•Theseunitsarenothavinganystandardbrandnameunderwhichtheycanselltheirproducts.
(b) Middlemen:
•Middlemenexploitruralentrepreneurs.
•Ruralentrepreneursareheavilydependentonmiddlemenformarketingtheirproductswhonecessarily
pocketalargeamountofprofit.
•Poormeansoftransportationfacilitiesandstoragefacilitiesarealsoothermarketingproblemsinrural
areas.
Ankur Sachdeva, Assistant Professor, ME

18. Problems in Rural Entrepreneurship
3. Management Problem
(a) Lack of knowledge of information technology:
•Informationtechnologyassuchisnotverycommoninruralareas.
•Entrepreneursrelyoninternallinkagesthatencouragetheflowofservices,goods,ideasand
information.
•Theintensityoffamilyandpersonalrelationshipsinruralcommunitiescansometimesbevery
muchhelpbuttheymayalsopresentobstaclestoeffectiveandefficientbusinessrelationships.
(b) Legal formalities:
•Incomplyingwithvariouslegalformalitiesandinobtaininglicensesruralentrepreneursfinditextremely
difficultduetoignoranceandilliteracy.
(c) Lack of technical knowledge:
•Ruralentrepreneurstoamajorextentsufferasevereproblemoflackoftechnicalknowledge.
•Lackoftrainingfacilitiesandotherextensiveservicescreateahurdleforthedevelopmentofrural
entrepreneurship.
(d) Poor quality products:
•Anotherimportantprobleminthegrowthofruralentrepreneurshipistheinferiorqualityofproductsproduced
duetolackofavailabilityofstandardtoolsandotherequipmentaswellaspoorqualityofrawmaterials.
Ankur Sachdeva, Assistant Professor, ME

19. Problems in Rural Entrepreneurship
4. Human resource problems:
(a)Low skilled workers:
•Mostoftheentrepreneursworkinginruralareasareunabletofindworkerswithhighskills.
•Inthiscaseturnoverratesarealsohigh.Theyhavetobeprovidedwithonthejobtrainingandtheir
trainingtoogenerallyisaseriousproblemfortheentrepreneurastheyaremostlyuneducatedandthe
trainingshouldbeimpartedinlocallanguagewhichtheycanunderstandeasily
(b) Negative attitude:
•Sometimesenvironmentinthefamily,societyandsupportsystemisnotmuchconduciveenoughto
encourageruralpeopletotakeupentrepreneurshipasacareer.
•Itmaybecertainlyduetoalackofawarenessandknowledgeofentrepreneurialopportunities.
•Youngandmostlywell-educatedyouthsmostlytendtoleave.
•Continuousmotivationisneededinthecaseofaruralemployeewhoissometimesverymuchdifficult
foranentrepreneurtoimpart.
Ankur Sachdeva, Assistant Professor, ME

20. Major Remedies to Solve Problems in RE
•Provide loans at a concessional rate of interest:
•Finance should be provided to rural entrepreneurs at concessional rates of interest and
also on an easy repayment basis.
•Creation of finance cells:
•Specialfinancecellsmustbecreatedbyfinancialinstitutionsandbankstoprovide
easyfinancetoruralentrepreneurs.
•Setting up marketing co-operatives:
•Assistanceandencouragementshouldbeprovidedtoruralentrepreneursforsetting
upmarketingco-operativesinruralareas.
•Co-operativescertainlycanhelpingettinginputsatquiteareasonablerateandalso
turnouttobehelpfulinsellingtheirproductsatremunerationprices.
•Moreovertoboostruralentrepreneurscommonproductionandmarketingcentres
shouldbesetupwithsophisticatedmoderninfrastructuralfacilities.
Ankur Sachdeva, Assistant Professor, ME

21. Major Remedies to Solve Problems in RE
•Supplyofrawmaterials:
•Onaprioritybasis,ruralentrepreneursshouldbeensuredofapropersupplyof
scarcerawmaterials.
•Besidessubsidymustalsobeofferedtomaketheproductsmanufacturedby
ruralentrepreneurswhicharereasonableandalsocompetitiveintermsofcost.
•Offeringhigh-qualitytrainingfacilities:
•Aspropertrainingimpartsrequiredskillstorunanenterpriseitenablesrural
entrepreneurstoundertaketheirventuresuccessfully.
•Economicallyweakerentrepreneursofthesocietyarepresentlyofferedsuch
trainingfacilitiesunderProgrammedFICCI(NGO‟s),PrimeMinister’s
RozgarYojana(PMRY),Rotaryclubs,Lionclubsandvariousothervoluntary
organizations
Ankur Sachdeva, Assistant Professor, ME

22. Women Entrepreneurship
Ankur Sachdeva, Assistant Professor, ME

23. Introduction
•TheeducatedIndianwomenhavetogoalongwaytoachieveequalrightsandpositionsbecause
traditionsaredeep-rootedinIndiansocietywherethesociologicalset-uphasbeenamale-
dominatedone.
•Despiteallthesocialhurdles,Indianwomenstandtallfromtherestofthecrowdandare
applaudedfortheirachievementsintheirrespectivefields.
•ThetransformationofthesocialfabricoftheIndiansociety,intermsoftheincreasededucational
statusofwomenandvariedaspirationsforbetterliving,necessitatedachangeinthelifestyleof
Indianwomen.
•Shehascompetedwithmanandsuccessfullystoodupwithhimineverywalkoflifeandbusiness
isnoexceptionforthis.
•Thesewomenleadersareassertive,persuasiveandwillingtotakerisks.Theymanagedtosurvive
andsucceedinthiscut-throatcompetitionwiththeirhardwork,diligenceandperseverance.
•InIndia,women’sentrepreneurshipisarecenttopicthatstartedonlyafterthe1970swiththe
introductionoftheWomen’sDecade(1975to1985)andwhichmostlypickedupinthelate70s.
•ThisphenomenonwasparticularlyvisibleonlyinthemetropolitanandstatecapitalsinIndia.It
tookamuchlongertimetopercolatetotheothercitiesandmunicipalities.
Ankur Sachdeva, Assistant Professor, ME

24. Definition
•Womenentrepreneurshipistheprocesswherewomenorganizeallthefactorsof
production,undertakerisksandprovideemploymenttoothers.
•Womenwhoinnovateinitiateoradoptbusinessactivelyarecalledwomen
entrepreneurs”.Womenentrepreneurshipisbasedonwomen’sparticipationin
equityandemploymentinabusinessenterprise.
•Womenentrepreneurshipisaneconomicactivityofthosewomenwhothinkofa
businessenterprise,initiateit,organizeandcombinethefactorsofproduction,
operatetheenterpriseandundertakerisksandhandleeconomicuncertainty
involvedinrunningabusinessenterprise.
•Womanentrepreneurisapersonwhoisanenterprisingindividualwithaneyefor
opportunitiesandanuncannyvision,commercialacumen,tremendous
perseveranceandaboveallapersonwhoiswillingtotakeriskswiththeunknown
becauseoftheadventurousspiritshepossesses
Ankur Sachdeva, Assistant Professor, ME

25. Functions of a Women Entrepreneur
•Explorationoftheprospectsofstartinganewbusinessenterprise.
•Undertakingofrisksandthehandlingofeconomicuncertaintiesinvolvedin
thebusiness.
•Introductionofinnovationsorimitationofinnovations.
•Coordination,administrationandcontrol.
•Supervisionandleadership
Ankur Sachdeva, Assistant Professor, ME

26. Organizations Promoting
Women Entrepreneurship in India
•National Resource Centre for Women (NRCW)
•Women’s India Trust (WIT)
•Women Development Corporation (WDC)
•Development of Women and Children in Urban Area (DWCUA)
•Association of Women Entrepreneurs of Karnataka (AWAKE)
•Working Women’s Forum (WWF)
•Association of Women Entrepreneurs of Small Scale Industries (AWESSI)
•Women’s Occupational Training Directorate
•Aid The Weaker Trust (ATWT)
•Self-EmployedWomen’s Association (SEWA)
•Women Entrepreneurship of Maharashtra (WIMA)
•Self-Help Group (SHG)
•The National Resource Centre for Women (NRCW)
•Women Development Cells (WDC)
Ankur Sachdeva, Assistant Professor, ME

27. Obstacles faced by Women Entrepreneurship
•General obstacles to women engaging in entrepreneurship
•Specific obstacles to start-ups
•Specific obstacles to managing a small firm
•Specific obstacles to growing firms
Ankur Sachdeva, Assistant Professor, ME

28. REASONS FOR SLOW PROGRESS OF
WOMEN ENTREPRENEURS IN INDIA
1.Thegreatestdeterrenttowomenentrepreneursisthattheyarewomen.Akindof
patriarchal-male-dominantsocialorderisthebuildingblocktothemintheirway
towardsbusinesssuccess.Malemembersthinkitisabigriskfinancingtheventures
runbywomen.
2.Womenentrepreneurshavetofacestiffcompetitionfromthemen
entrepreneurswhoareeasilyinvolvedinthepromotionanddevelopmentareaand
carryouteasymarketingoftheirproductswithboththeorganizedsectorandtheir
malecounterparts.Suchacompetitionultimatelyresultsintheliquidationofwomen
entrepreneurs.
3.Lackofself-confidence,willpower,strongmentaloutlookandoptimistic
attitudeamongstwomencreatesfearofcommittingmistakeswhiledoingtheir
pieceofwork.Thefamilymembersandthesocietyarereluctanttostandbeside
theirentrepreneurialgrowth.
Ankur Sachdeva, Assistant Professor, ME

29. REASONS FOR SLOW PROGRESS OF
WOMEN ENTREPRENEURS IN INDIA
4.WomeninIndialeadaprotectedlife.Theyareevenlesseducated,economically
notstablenorself-dependentwhichreducestheirabilitytobearrisksand
uncertaintiesinvolvedinabusinessunit.
5.Theoldandoutdatedsocialoutlooktostopwomenfromenteringthefieldof
entrepreneurshipisoneofthereasonsfortheirfailure.Theyareundersocial
pressurethatrestrainsthemtoprosperandachievesuccessinthefieldof
entrepreneurship.
6.Women’smobilityinIndiaishighlylimitedduetomanyreasons.The
cumbersomeexerciseinvolvedinstartingwithanenterprisecoupledwithofficials’
humiliatingattitudetowardswomencompelsthemtogiveuptheirspiritof
survivinginenterprisealtogether.
Ankur Sachdeva, Assistant Professor, ME

30. REASONS FOR SLOW PROGRESS OF
WOMEN ENTREPRENEURS IN INDIA
7.Women'sfamilyobligationsalsobarthemfrombecomingsuccessful
entrepreneursinbothdevelopedanddevelopingnations.Thefinancialinstitutions
discouragewomenentrepreneursonthebeliefthattheycanatanytimeleavetheir
businessandbecomehousewivesagain.
8.Indianwomengivemoreemphasistofamilytiesandrelationships.Married
womenhavetomakeafinebalancebetweenbusinessandfamily.Businesssuccess
alsodependsonthesupportthefamilymembersextendedtowomeninthebusiness
processandmanagement.
9.Women‘sfamilyandpersonalobligationsaresometimesagreatbarrierto
succeedinginabusinesscareer.Onlyafewwomenareabletomanagebothhome
andbusinessefficiently,devotingenoughtimetoperformalltheirresponsibilities
inpriority.
Ankur Sachdeva, Assistant Professor, ME

31. REASONS FOR SLOW PROGRESS OF
WOMEN ENTREPRENEURS IN INDIA
10.Theeducationallevelandfamilybackgroundofhusbandsalsoinfluence
women’sparticipationinthefieldofenterprise.
11.Absenceofpropersupport,cooperationandback-upforwomenbytheir
ownfamilymembersandtheoutsideworldpeopleforcethemtodroptheideaof
excellingintheenterprisefield.Theyarealwaysmakingmanypessimisticfeelings
tobearousedintheirmindsandmakingthemfeelthatfamilyandnotabusinessisa
placemeantforthem.
12.Lackofawarenessaboutfinancialassistanceintheformofincentives,loans,
schemesetc.bytheinstitutionsinthefinancialsector.Sothesincereeffortstaken
towardwomenentrepreneursmaynotreachtheentrepreneursinruralandbackward
areas.
Ankur Sachdeva, Assistant Professor, ME

32. What are Small Entrepreneurs??
•Smallbusinessesareeitherservicesorretailoperationslikegrocerystores,
medicalstores,tradespeople,bakeriesandsmallmanufacturingunits.Small
businessesareindependentlyownedorganizationsthatrequirelesscapitalandless
workforceandlessornomachinery.
•Thesebusinessesareideallysuitedtooperateonasmallscaletoservealocal
communityandtoprovideprofitstothecompanyowners.
•Indiangovernmentdefinessmallbusinessesonthebasisofthebusiness’sability
toinvestintheplantandmachinery.
Ankur Sachdeva, Assistant Professor, ME

33. Classification of Business
Ankur Sachdeva, Assistant Professor, ME

34. Role of SME in India
•EmploymentOpportunities:Aftertheagriculturesector,smallindustriesprovidethelargestemployment
opportunities.
•DiverseVariety:Smallbusinessesprovideawidevarietyofconsumerandspecializedproductsusingsimple
technologyandlocalresources.
•OptimumUtilizationofResources:Smallbusinessfacilitatesoptimumutilizationofresourcesthroughlocally
availableresourcesandsimpletechnology.
•EncourageLocals:Itprovidesandencourageslocalpeopletoentrepreneur,andmakesthebestuseoftheir
handicraftandotherartisticskills.
•LessCostly:Thecostofproductionislow,asproductionisbecauseoflowoverheadcosts,andmakinguseof
inexpensivelocallyavailableresources.
•QuickDecisions:Itfacilitatesquickandtimelydecisionsduetothesmallsizeofthebusiness.
•RuralDevelopment:Throughtheprovisionofemploymentopportunities,andencouraginglocalstousetheir
skills,regionaldevelopmentismadepossible.
•BalancedDevelopment:Thesebusinessunitscanbesetupanywhereatanylocationandregion,astheyare
dependentonlocallyavailableresources,simpletechnology,andlabourclasspeople.Thisfacilitatesthebalanced
developmentofthecountry.
Ankur Sachdeva, Assistant Professor, ME

35. Role of SME in Rural Areas
•Encouragespeopleinruralareasforsettingupagro-basedindustries.
•Providingemploymentopportunitiestotraditionalartisansorworkers.
•Helpsinthereductionofincomeinequalities.
•Itpreventstheinclinationandmigrationofruralpopulationstourbanareas.
•Helpsintheindustrializationanddevelopmentofruralareas.
Ankur Sachdeva, Assistant Professor, ME

36. NeedforRural Entrepreneurship
•EmploymentGeneration:RuralEntrepreneurshipmaybelabourintensiveand
requiresasizableamountofhumanresources.Therefore,ithasalargepotential
foremploymentgenerationandcanreducetheproblemofunemploymentinrural
areas.
•IncomeGeneration:Byprovidingemployment,ruralentrepreneurshiphas
potentialforincomegenerationandthusbridgingthegapbetweentheruraland
urbandisparities.
•Ruraldevelopment:Ruralentrepreneurshiphelpsinsettingindustriesinrural
areasandthusleadstoemploymentgenerationandincomegenerationwhich
directlyhelpinruraldevelopment.
•CurbsRural-Urbanmigration:Ruraldevelopmenthelpsincurbingrural-urban
migrationbyreducingtheunequalgrowthincities.
Ankur Sachdeva, Assistant Professor, ME

37. Need for Rural Entrepreneurship
•EnvironmentFriendly:Ruralindustriesaremoreenvironmentfriendlythus
leadingtothedevelopmentwithoutdamage.
•BuildsupVillagerepublics:Developmentoftheruralindustriesservesasan
effectivemeanstobuildvillagerepublicsandthusmakethemmoreindependent.
•Improvedstandardofliving:Ruralentrepreneurshiphelpsinincomegeneration
whichhelpsinprosperingthecommunityandthusimprovingtheirstandardof
living.
•Balancedregionalgrowth:Ruralentrepreneurshipwilldirecttheconcentration
ofindustriesinruralareaswhichleadstothebalancedregionalgrowth
Ankur Sachdeva, Assistant Professor, ME

38. Scopefor Rural Entrepreneurship
•Ruralareahasthecapacityforsmallandmediumenterprisesandthesesectorsactas
theeconomybuildersbygeneratingEmploymentandincomeforpoorand
unemployedpeopleandiscontributingmorethan52%oftheGDP.
•Moreover,thereisarapidexpansioninthesmallandmediumindustryarena.
Therefore,Repairshops,servicecentres,PCOs,internetcafés,hiringofagriculture
implements&tractors,computersandotherskilltrainingcentreshaveagoodscope
inaclusterofvillages.
•Entertainment,cableTV,ruraltourismandamusementparks(nearurbanareas)also
areanumberofthepotentialareasforruralentrepreneursinthecommissionsector.
•VariousdevelopmentprogramsarebeingexecutedthroughPanchayatiRaj
Institutions,whichareengagingcontractorsforcivil/mechanicalworks.Ruralyouth
canstartthisbusiness.
Ankur Sachdeva, Assistant Professor, ME

39. Scope for Rural Entrepreneurship
•Changedconsumptionpatternhasopenedupnewavenuesfortradingactivitiesin
ruralareas.
•Ruralareasarealsousingalargenumberofagriculturalproductslikefertilizers,
seeds,pesticidesandinsecticidesetc.
Ankur Sachdeva, Assistant Professor, ME