rd

1. UNIT – 5
RURAL INDUSTRIALIZATION AND
ENTREPRENEURSHIP
Concept of Rural Industrialization
Gandhian Approach to Rural Industrialization
Appropriate Technology for Rural Industries
Entrepreneurship and Rural Industrialization
Problems and diagnosis of Rural Entrepreneurship in India
Women Entrepreneurship
Development of small Entrepreneurship in India
Need for and Scope of Entrepreneurship in Rural Area

2. CONCEPT OF RURAL
INDUSTRIALIZATION
The concept of Rural Industrialization encompasses facilitating avenues
of employment in non-farm activities on a widely dispersed basis
nearer to the place of living of the poor.
Rural industries are non-farm activities that depend on rural resources,
and are primarily meant for employment generation through effective
utilization of locally available resources, human power and
technologies.
They are by nature small-scale and are usually based in villages. Hence,
they are popularly addressed as rural industries.

3. CONCEPT OF RURAL
INDUSTRIALIZATION
Since employment generation is one of the essential objectives of rural
industries, they usually work with the philosophy of production by
masses.
Rural industrialization aims at reducing unemployment levels, and
enhancing the individual and household incomes.
Since the scale of activities of rural industries is small, the financial
requirement is also usually small.
• Rural industrialization includes economic activities outside agriculture, carried
out in villages and varying in size from household to small factories.

4. CONCEPT OF RURAL
INDUSTRIALIZATION
• Some examples of these activities are cottage, tiny, village and small-
scale manufacturing and processing industries; and services of
various kinds.
• However, rural industrialization suffers from technological
obsolescence, low productivity, inefficiency, inconsistent quality,
drudgery and dependence upon nature’s clemency.
• To overcome these we need innovation or improvisation in
technologies used in rural industries.

5. CONCEPT OF RURAL
INDUSTRIALIZATION
The Significance of rural industrialization are as follow :
They can slow down urban migration and thereby ease the
problems of urbanization.
They lead to improvement in environment by reducing the
concentration of industrial units in big cities.
They can increase rural income and generate non-farm
employment to the farmers.