Rural Enterprenurship: Role of Government


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Rural Entrepreneur are the budding people in the rural area those are trying to convert there noble idea into business, and government is helping such people in Finance, Marketing, Technological aspect etc

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Rural Enterprenurship: Role of Government

  2. 2. Introduction • In the present scenario ,the rural areas are source of raw materials and the urban areas are acting as processing centers. • 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 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 knowhow.
  3. 3. Introduction • “Rural Entrepreneurship can be defined as entrepreneurship emerging at village level which can take place in a variety of fields of Endeavour such as business, industry, agriculture and acts as a potent factor for economic development”.
  4. 4. Scope of Rural Entrepreneurship • Rural area as SME Sector and Economy Builder • Employment and income for poor and unemployed people • Contributing more than 52% of the GDP • A rapid expansion in the small and medium industry arena.
  5. 5. Scope of Rural Entrepreneurship • 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
  6. 6. Scope of Rural Entrepreneurship • Various development programs are being executed through Panchayti Raj Institutions, who are engaging contractors for civil /mechanical works. Rural youth can enter into this business. • Changed consumption pattern has opened doors for trading activities in rural areas. • Rural areas are also consuming large amount of agriculture inputs such as fertilizers, seeds, pesticides and insecticides etc.
  7. 7. Some known facts of MSME’s • Employ 41 Million People • Number – 26 Million MSMEs • Give 45% of Industrial Production • Account for more than 40% of Exports • Contribute 8% to GDP • Exports: Rs. 1.5 lakh cr. ($ 38 Bn) • Production: Rs. 5.9 lakh cr. ($ 140 Bn)
  8. 8. Region Wise Disbursement of Refinancing (in Cr.) • Year: 2010-2011 Total: Rs12,980 Disbursed: Rs13,485.87 • Year: 2011-2012 Total: Rs14,995 Disbursed: Rs15,421.70 • Year: 2012-2013 Total: Rs16,990 Disbursed: Rs177674.29
  9. 9. Obstacles and Challenges for Entrepreneur in India • Lack of Knowledge • Financial Challenges • Lack of Infrastructure • Family & Social Challenges • Technological Challenges • Policy Challenges
  10. 10. Involvement of Government • National Agricultural and Rural Development Bank (NABARD) • Small Industries Bank of India (SIDBI) • Government Schemes to Enhance Rural Entrepreneurship • Rural Entrepreneur Development Programme(REDP)
  11. 11. Role of SIDBI Supply side Activities – Microfinance • Help transform NGOs/Societies Demand Side – Promotional & Developmental Activities • Enterprise promotion programs • Skill-cum-Technology Upgradation etc. to more regulated entities. • Associated with more than 150 Programme MFIs • Introduced the concept of rating • of MFIs • Term loans • Equity / Quasi Equity • Capacity Building Grants Cluster Development Programme (CDP) • Entrepreneurship Development Programme (EDPs) 12
  12. 12. Bihar
  13. 13. Himachal Pradesh
  14. 14. Orissa
  15. 15. Uttar Pradesh
  16. 16. Andhra Pradesh
  17. 17. Average Cost per REDP and per Trainee in different state
  18. 18. Conclusion • Rural entrepreneurship programmes must be carried in such a way so that it can be opted by rural youth as a career. • Introduction of policies of government among rural youth to raise innovation level. • Various incentive monetary and subsidies should be given to rural entrepreneurs. (some farmer do not plant certain type of crop in there farm land therefore government has planned to give them subsidies and higher market value if they plant particular crop). •
  19. 19. Questions