After over five decades of Independence and Industrialization in India, still large part of population remains below poverty line. Agriculture and its allied activities are continued to be the back bone of rural India. Agriculture had a share of 70 per cent in the total work force of the India. Cultivators in the rural area own farmland was about 68 % of this work force and agricultural workers accounted for the remaining 32%. Thus, the government policy for rural development has to tackle, the problems of the under poverty line by providing rural entrepreneurial development activities to the rural youths.
According to the NSSO Report for the year 2008-09, there were 18.5 million Service Sector Enterprises in India, in which employed about 37.5 Mn. workers. Out of the 18.5 Mn. service sector enterprises, 75 per cent were own account enterprises (OAEs). Out of the 37.5 Mn. workers, 86 per cent were rural workers. The shares of the Annual Gross Value Addition (GVA) of the rural and urban sectors are 25 per cent & 75 per cent respectively.

Factors to Entrepreneurship in Rural Areas
An entrepreneur is a person who is able to look at the environment, identify opportunities to improve the environmental resources and implement action to maximize those opportunities (Robert E. Nelson) it is important to bear in mind the entrepreneurial skills that will be needed to improve the quality of life for individuals, families and communities and to sustain a healthy economy and environment. Taking this into consideration, we will find that each of the traditional definitions has its own weakness (Tyson, Petrin, Rogers, 1994, p. 4).

Loyalty of employees
It is very hard to find a job and work alternatives in the rural areas are scarce, the person engaged in the rural employment is very much loyal to his work nature. Because of that they know the money value at each and every part of the business. Since rural employees had much more to lose if they are laid off, they tend to work harder and more efficiently. Moreover, every problems relating with the rural people solved with their own elders only and rural misbehaviors are generally more punishable, and at the end result was they hold their proven esteem which is a great advantage to the potential entrepreneur.

Safer Zone of India
The people in the rural areas, they know each other and also they know every new entrant to their places, they themselves committed to their responsibility as an owner of the premises of the every entrepreneur. In 1991, the urban crime rates were 6,492.7 per 1 lakh persons, which include violent crime of 843.0 and property crime of 5,649.7. This rate was three fold more than the rural crime rates. Especially, violent crime rates only in urban areas are almost four fold more than in rural.

Market adoptability
The recent development of India’s consumerism is the inception of the rural market for many products. As already stated in the earlier Majority of India’s population lives in rural areas, and they contribute one-third of their income to the nation. They spread over the India, around to 0.6 Mn. of villages in India. The Indian rural market has been growing at 3 – 4 per cent p.a. Addition of more than 1 million new consumers every 12 month period and it was accounted for 50% of the consumption of fast-moving consumer goods (FMCG) in India.

Natural Supports
As compared with the urban areas majority of the villages are still have the potentiality in their infrastructure resources. The Government of India had launched “Bharat Nirman” for the development of rural infrastructure. This project included the development of India Rural Infrastructure, such as Irrigation, Roads, Housing, Water Supply, Electrification, and Telecommunication Connectivity which will induce the entrepreneur to take advantage also.
Sound India’s economic policy with regard to agriculture, including introduction of the rural entrepreneurship for the rural economic development; policies and special programs for the inducement and modeling of entrepreneurial talent; entrepreneurial thinking about rural development, not only by the rural people but also every rural development organization and NGO’s and also certain institutions supporting to the development of rural entrepreneurship.
There are many entrepreneurial activities in rural areas was carried out by women entrepreneurs such as: small trade, food preservative and processing, handicrafts, and manufacturing of small consumer articles, catering services, tourist establishments and bed and breakfast arrangements. However, compared to male entrepreneurs, female entrepreneurs in rural areas still tend to be limited to what have traditionally been viewed as women’s activities. Also the scale of their entrepreneurial operation tends to be smaller when compared with male entrepreneurs.
1. Bastian, L.D., & Taylor, B.M, A National Crime Victimization Survey Report in India 1991.
2. Krishnamurthy, Introduction to Rural Marketing, Himalaya Publishing house, 2009.
3. Philip Kotler &Gary Armstrong Principles of Marketing Prentice Hall of India 2007
4. Vasant Desai, Dynamics of Entrepreneurial Development and Management,
Himalaya Publishing House, 2007
5. S.S. Khanka, Entrepreneurial Development, Sultan chand, New Delhi.
6. Hisrich, entrepreneurial, Tata Mc Graw Hill,
7. Poornima M Charantimath, Entrepreneurship Development-Small Business Enterprises, Pearson Education-2006

Assistant Professor of Commerce,
K.S.Rangasamy College of Arts and Science,

Share This Post

Post Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.