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PERFORMANCE APPRAISAL
OF RURAL
ENTREPRENEURSHIP
DEVELOPMENT
PROGRAMMES

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CHAPTER-1
INTRODUCTIO
N
This chapter discusses the theoretical framework of the subject of study and related
issues under consideration. The major contents of this chapter includes conceptual overview
and history of entrepreneurship, conceptualization of rural entrepreneurship, rural
entrepreneurship development in the context of traditional and alternative paradigms of
entrepreneurship development and current scenario of rural entrepreneurship development in
India and more specifically in case of the state of Haryana.
1.1 Introduction
Economic development of any region is believed to be the outcome of purposeful
human economic activities and the recognition of entrepreneurial role, since the days of
industrial revolution, has assumed prime importance. For accelerating economic growth in
the developing countries, the entrepreneurial role has taken basic seat in research and in
action (Rajbir Singh, 2001). Entrepreneurship is recognized as a prerequisite for sound and
sustained economic development, especially the rural economy of a country. (Anand Bansal,
2012) Many studies on entrepreneurship have substantiated the fact that entrepreneurship
has a vital economic perspective in terms of productivity, growth, employment generation
and innovation (C. Mirjam van Praag Peter H. Versloot, 2008). Entrepreneurship on small
scale is the only solution to the problems of unemployment and proper utilization of both
human and non-human resources and improving the living condition of the poor masses

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(Prabha Sigh, 2009). In rural Indian economy tiny and micro enterprises, creates huge
employment opportunities; produces necessary goods and services to cater to the local
requirements and contributes significantly to the development and growth of the nation. It
helps inculcate growth with equity viz; both women and men alike; mobilize savings and
internal financial resources for entrepreneurial activities. In fact creation of micro enterprises
is considered as an effective tool for sustainable livelihood, poverty alleviation and
employment generation.
The present Study has been an attempt to understand, evaluate and document the
following two dimensions of the rural entrepreneurship development
Programs/initiatives/interventions in the study area-
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1. Performance evaluation (in terms of financial, operational) of the select Development
Institutions/Agencies with respect to such REDPs
2. Performance evaluation (in terms of Physical & Financial performance and Socio-
economic Impact evaluation) of the select development programs/Schemes of each of
such Development Institutions/Agencies
The overall objectives of the study is to examine and evaluate the performance of
various government schemes, programs and institutional support in achieving the target
of fostering rural entrepreneurship and promote, support and sustain rural entrepreneurs
& micro and small village enterprises (MSVEs) in the state of Haryana.
1.2 Theoretical analysis of Rural Entrepreneurship
Throughout the theoretical history of entrepreneurship, scholars from multiple
disciplines in the social sciences have grappled with a diverse set of interpretations and
definitions to conceptualize this abstract idea. Over time, "some writers have identified
entrepreneurship with the function of uncertainty-bearing, others with the coordination of
productive resources, others with the introduction of innovation, and still others with the
provision of capital" (Hoselitz, 1952). Even though certain themes continually resurface
throughout the history of entrepreneurship theory, presently there is no single definition
of entrepreneurship that is accepted by all economists or that is applicable in every
economy. Much of the theoretical consideration relates to the argument that
entrepreneurship is the practice of starting new organizations or revitalizing mature
organizations, particularly new businesses generally in response to identified
opportunities (Sourav Ghosh, 2012). Entrepreneurship or the self employment is
commonly believed to provide an important avenue for individuals to advance up the
income ladder. For some people, it may provide a better route than paid employment,
while for others, who may be disadvantaged when pursuing paid employment; it may
provide the only route.
1.2.1 Entrepreneurship: Concept and Nature

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Entrepreneurism has emerged as an important economic development strategy for
rural India. Entrepreneurship means different things to different people (T. Petrin, A.
Gannon, 1997). It is a complex phenomenon, as it can be viewed from economic,
psychological, sociological cultural and integrative perspectives. These different view
points lead to varying definitions of entrepreneurship. Defining entrepreneurship is not
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an easy task. There are almost as many definitions of entrepreneurship as there are
scholar books on the subjects (Stevenson Howard H., Jarillo J. C., 1990). The number of
definitions of entrepreneur and entrepreneurship that have been produced over the years
in the literature is daunting. Gartner (1988) lists thirty-two different definitions for the
purpose of showing that many (and often vague) definitions of the entrepreneur have
been used and that there are few studies that employ the same definition. To choose the
definition of entrepreneurship most appropriate for the area context of present study, it is
important to bear in mind the entrepreneurial skills that will be needed to improve the
quality of life for rural individuals, families and communities and to sustain a healthy
economy and environment. Barnett (1993) after studying more than 70 viewpoints of
scholars on entrepreneurs and entrepreneurship concluded that, it is not easy to come up
with a consensus definition from the literature.
The definition of entrepreneurship has been debated among scholars, educators,
researchers, and policy makers since the concept was first established in the early 1700’s.
The term “entrepreneurship” comes from the French verb “entreprendre” and the
German word “unternehmen”, both means to “undertake” (Anantha Raj A. Arokiasamy,
2011) Entrepreneurship has been considered as the propensity of mind to take calculated
risk with confidence to achieve predetermined business objectives (Evans, David S., and
Linda S. Leighton, 1989). There are many views and opinions on the concept of
entrepreneurship. A review of some prevailing definitions of the concept of
entrepreneurship are listed below-
"Entrepreneurship is the process of acquiring, assembling, and deploying
resources in the pursuit of perceived opportunities for long-term gain." (Bowman &
Upton, 1991 "Entrepreneurship is the discovery of new combinations of resources under
uncertain situations that generate entrepreneurial rent as reward for risk taking" (Rumelt,
1987). Entrepreneurship is recognized as a primary engine of economic growth. Without
it other factors of development will be wasted or frittered away. Entrepreneurship
stimulates economic growth through the knowledge spill over and increased competition
of the entrepreneurs (Carree & Thurik, 2005). Schumpeter's Definition revealed that

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entrepreneur in an advanced economy is an individual who introduce something new in
the economy- a method of production not yet tested by experience in the branch of
manufacturing, a product with which consumers are not yet familiar, a new source of raw
material or of new markets and the like. Richard Cantillon asserted that “A person who
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pays certain price for a product to resell it at an uncertain price thereby making decision
about obtaining and using resources while assuming the risk of enterprise” An Integrated
Definition explains the concept as, “Entrepreneurship is a dynamic process of vision,
change, and creation. It requires an application of energy and passion towards the
creation and implementation of new ideas and creative solutions. Essential ingredients
include the willingness to take calculated risks- in terms of time, equity, or career; the
ability to formulate an effective venture team; the creative skill to marshall needed
resources; the fundamental skills of building a solid business plan; and, finally, the vision
to recognize opportunity where others see chaos, contradiction, and confusion.”
The most appropriate definition of entrepreneurship that would fit into the rural
development context, argued here, is the broader one, the one which defines
entrepreneurship as: "a force that mobilizes other resources to meet unmet market
demand", "the ability to create and build something from practically nothing", "the
process of creating value by pulling together a unique package of resources to exploit an
opportunity". Scholars call people who turn ideas into realities assuming risk and reward
as “Entrepreneurs”. For the purposes of this study and keeping in mind its key role in
creating value to the rural development, researcher defines Entrepreneurship as
‘Entrepreneurship is the professional application of knowledge, kills and competencies
and/or of monetizing a new idea, by an individual or a set of people or communities in
the rural areas by launching an micro and small village enterprise de novo or diversifying
from an existing one (distinct from seeking self employment as in a profession or trade),
thus to pursue growth and rural socio-economic development while generating wealth,
employment and social good’.
1.2.2 Rural Entrepreneurship: An Introduction
The difference between rural and urban entrepreneur is only a matter of degree
rather than the content. Many successful entrepreneurs are prospering in the cities who
are hailing from rural areas. It is essential to have a balanced regional development of the
country and to avoid the concentration of industry in one place. Rural areas must try for

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better utilization of human resources to improve the rural economy (Ahirrao J., Chaugule
S., 2010).
Government has moral responsibility in designing, promoting, innovating rural
entrepreneurial development Programme for the upliftment of the rural economy on
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which the urban economy is built upon. The promotion of rural entrepreneurship is vital
in the context of generating gainful employment and minimizing the widening of
disparities between rural and urban population. For reducing poverty and to overcome
low productivity in the farm sector rural entrepreneurship is necessary. The Rural
entrepreneurs want to earn more income, but most of them are not aware of innovative
ways of selling their ideas and services to customers in a productive way (Ahirrao J.,
Chaugule S., 2010).
The concept of rural entrepreneurship does not dilute the definition of
entrepreneurs in general. An entrepreneur is an individual who fails to conform to the
traditional structured role given to him in society and finds an exit to venture on his own.
In this context of his deviant pursuit, the societal frame of reference of a rural
entrepreneur (Baharum S. A., 2004) assumes operational significance. Like
entrepreneurship, rural entrepreneurship also conjures different meanings to different
people. Without going into semantics, rural entrepreneurship can simply be defined as
entrepreneurship in rural areas. In other words, establishing industrial units in the rural
areas refers to rural entrepreneurship.
Rural entrepreneurship is, fundamentally, about using a market-driven business
model to address key socio-economic issues (David L. Barkley, 2006) pertaining to the
rural economy under consideration. It is an emerging field with diverse and shifting
interpretations. Entrepreneurship emerging in rural areas is called rural entrepreneurship
(Ramalingam C., Gayatri G., 2009). Rural entrepreneurship symbolizes rural
industrialization. Rural industrialization provides the best solution to (Ahirrao J.,
Chaugule S., 2010) tackle with the twin problems of unemployment and poverty stalking
the rural areas in the country. That is why the government of India has been assigning
increasing importance to the development of rural industrialization or entrepreneurship in
her subsequent five year plans.
The focus of rural entrepreneurship is, therefore, very clear. Firstly, it can
produce self employment opportunities, to the millions and thus, reduce unemployment;

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secondly, it can augment employment avenues for others in backward areas and bring in
balanced regional development to alleviate poverty. This perspective has viewed and
elaborated rural entrepreneurship as rural industrialization consisting mainly of agro-
based industries, Khadi and village industries and cottage industries. Industries coming
under the purview of Khadi and village industries commission (KVIC), Govt. of India
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organization, are treated as rural industries. According to a report of development
commissioner, small scale industries (DC-SSI), the basic objectives of fostering rural
entrepreneurship through rural industries projects are expeditious growth of micro and
small scale industries and creation of opportunities for fuller and additional employment
in rural areas so as to improve the earnings of the artisans and rural entrepreneurs.
Rural Entrepreneurship attempts to cater the rural need for Employment
generation (Awogben A. C., Iwuamadi K. C., 2010), Income generation, rural
development, build up village republics and stopping rural-urban migration (Abraham D.
T., Kalamkar S. S., 2011). In accordance with the literature, a rural entrepreneurial
economy, as in any other economy, is nothing more than an ecosystem of risk takers,
capital providers, markets, technology, and intermediaries that facilitate non-market
transactions.
1.2.3 The Rural Entrepreneur
Although no single definition of entrepreneur exists and no one profile can
represent today's entrepreneur, research is providing an increasingly sharper focus on the
subject. Entrepreneur is a person who assumes risk and control of commercial enterprise.
The dictionary meaning is a "bold undertaking where there is an element of risk, whether
the enterprise is on small scale or large scale, whether it is carried on by an individual as
proprietary concern or takes any other form of business organization, such as partnership,
corporate sector in private or public ltd. enterprise and also it is established by male or
female entrepreneur"(Friday O. Okpara, 2007).
Entrepreneurs have been described as people who have the ability to see and
evaluate business opportunities, gather the necessary resources to take advantage of them
and initiate appropriate action to ensure success. Meredith et al (1991). He is a risk-taker,
a man, or woman who bears uncertainty, strikes out on his or her own, and through
natural wit, devotion to duty and singleness of purpose, somehow creates a business and
industrial activity where none existed before. Bird (1992) sees entrepreneurs as

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mercurial, that is, prone to insights, brainstorms, deceptions, ingeniousness and
resourcefulness. They are cunning, opportunistic, creative, and unsentimental.
Rural entrepreneurship is the work of a rural entrepreneur. A Rural entrepreneur
is someone who recognizes a business or self employment opportunity in the rural or
village context and uses entrepreneurial principles to organize, create, and manage a
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venture assuming risk and rewards (Patricia La Caille John, 1993). Successful
entrepreneurship is hard work carried out in an unpredictable environment. It requires a
blend of calculation and luck laced with the ever present possibility of failure.
Diversification into non-agricultural uses of available resources such as catering for
tourists, blacksmithing, carpentry, spinning, etc. as well as diversification into activities
other than those solely related to agricultural usage, for example, the use of resources
other than land such as water, woodlands, buildings, available skills and local features,
all fit into rural entrepreneurship (Prabjot K., Belwal M., 2011). The entrepreneurial
combinations of these resources are, for example: tourism, sport and recreation facilities,
professional and technical training, retailing and wholesaling, industrial applications
(engineering, crafts), servicing (consultancy), value added (products from meat, milk,
wood, etc.) and the possibility of off-farm work. Equally entrepreneurial, are new uses of
land that enable a reduction in the intensity of agricultural production, for example,
organic production.
1.2.4 Concept of Rural Enterprises
Rural enterprises are defined differently in different countries. The present study
uses the term Micro and small village Enterprises (MSVEs) broadly to include any
enterprise that involves relatively few individuals or employees engaged in activities in
the rural context.
Micro and small village Enterprises (MSVEs) is a comprehensive term that the
researcher has used in a common parlance to refer to the economic or business activities
carried on in relatively small establishment in the rural context. The concept of smallness
is with reference to the scale of operations. This definition of rural enterprises may differ
from one country to another. MSVE conceptualizes to include every type of human
economic activities which broadly tends to fall under the category of Commercial,
Service and Industrial activities. A rural enterprise comes in all types and tends to cover
rural traders and merchants, service provider and rural industries, Street venders,
carpenters, machine shop operators, Seamstresses and peasant farmers etc.

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The different empirical studies and observations made researcher to
conceptualize the prevailing trends of form and nature of rural industries as Micro and
Small Village Enterprises (MSVEs). MSVEs can be classified into small, tiny, Cottage
and Household Industries, Handloom and Textiles, Khadi and Village Industries,
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Handicrafts Development and Sericulture. MSVEs includes producers of goods, agro and
related products, micro/Tiny/cottage level manufacturing enterprises, Trading enterprise
and service providing enterprise covering artisans, skilled craftsman and Technicians in
the areas identified as Villages , small towns which are socio-economically poor , areas
rural in nature, industrially backward or less developed or areas purely having purely
agricultural or farming pattern of occupation. MSVEs focus on cottage
industry/household industry/Tiny industry/Rural Traders etc.
1.3 Entrepreneurism in India
Entrepreneurship is a typical global phenomenon attracting millions of
economists, Politicians and social workers (J. P. Kumar, A. Abirami, 2012). In
developed countries, entrepreneurship has gained attention in the last century. But in
developing countries like India, it has been gained original consideration only in recent
decades (Embran, Krishnan M K, 2010). In these countries, entrepreneurship
development is considered as the way to promote self-employment- the panacea not only
for chronic unemployment among the educated youth but also to sustain economic
development and to augment the competitiveness of industries in the eve of globalization
and liberalization (Khare R. J., 2011).
India has been predominantly an agriculture-based country and it was the only
source of livelihood in ancient time (Nazeerudin, 2012). During prehistoric time when
there was no currency system the India economy system followed barter system for
trading i.e. the excess of agricultural produce were exchanged against other items. The
Economy in India is wholly agriculture based and it is of tremendous importance because
it has vital supply and demand links with the other Indian industries (Lohana S. R.,
Musale R. S., 2011). Agriculture is the main stay of the Indian economy, as it constitutes
the backbone of rural India which inhabitants more than 70% of total Indian population.
Further, Rural Economy in India has been playing an important role towards the overall
economic growth and social growth of India (Vaidyanathan S., Sundar V., 2011).

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India is the fifth largest economy in the world (ranking above France, Italy, the
United Kingdom, and Russia) and has the third largest GDP in the entire continent of
Asia. It is also the second largest among emerging nations. The liberalization of the
economy in the 1990s has paved the way for a huge number of people to become
entrepreneurs.
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Entrepreneurship has been ‘embedded in the Indian genius and is a part of its
tradition. The entrepreneurial spirit is an ongoing characteristic of India’s history,
particularly visible in a number of communities engaged primarily in trading.
Traditionally, the Entrepreneurship of such communities is facilitated principally by the
successful use of informal ‘entrepreneurial ecosystems and interdependent business
networks. Further, there is also a rich tradition within the Indian Diasporas, spanning the
past several hundred years, whose spirit of enterprise is legion (Biswas T., Sengupta P.P.,
2008)
1.3.1 Rural Entrepreneurship in India
Rural entrepreneurship is acknowledged as an important component that
contributes to the economic development of a country. Rural development is often
defined as development that benefits rural populations and is able to uplift on a long term
and sustainable basis of the population's standards of living and well-being. It is
commonly accepted, that rural areas are associated with poverty and agriculture-based
economic activities. Recently however, an enduring claim that entrepreneurial activity
promotes economic growth and development has attracted the attention of governments
especially in developing countries to embark on various programs and strategies aimed at
developing rural areas and increasing rural economic activity through entrepreneurial
development.
Rural development is more than ever before linked to entrepreneurship. The
entrepreneurial orientation to rural development accepts entrepreneurship as the central
force of economic growth and development, without it other factors of development will
be wasted or frittered away. However, the acceptance of entrepreneurship as a central
development force by itself will not lead to rural development and the advancement of
rural enterprises. What is needed in addition is an environment enabling entrepreneurship
in rural areas. The existence of such an environment largely depends on policies
promoting rural entrepreneurship.

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These days rural entrepreneurship in India is seen as the largest force in the
development of the rural areas. Infect, many of the developing countries in the world
have use the concept of rural entrepreneurship as a very successful method of deterring
rural unrest. The greatest asset that the rural areas have in not the natural resource but it
is the vast uncultivated land. Due to the ever growing population of the world and the
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expansion of the metropolitan areas, government’s reliance on the rural land has
significantly increased. These lands are used in the development of industry and
establishing manufacturing base. Many countries have used these lands to establish
recreational and educational facilities. This is one of the primary reasons that most new
institutions of higher education in India too, are opening in suburbs and small towns.
Abraham D. T., Kalamkar S. S. (2011) stated that in India, initiatives like the
IRDP and the SGSY were undertaken to reach the poor in the rural areas aimed at
increasing income through self-employment. Many of these programs, gave thrust to
promoting group entrepreneurship as group approach was considered to be more suitable
and therefore to be promoted.
1.3.3 Rural Entrepreneurship in Haryana
The structural composition of state economy has witnessed significant changes
since the formation of Haryana State. Agriculture sector still continues to occupy a
significant position in state economy, although, the share of this sector in the gross state
domestic product is continuously declining. Primarily an agrarian state, now, Haryana is
throbbing with industrial activity. The state has taken a number of initiatives for
developing industrial infrastructure to achieve consistent economic growth. HSIIDC is
the state's premier industrial promotion agency. It is responsible for providing reliable
and efficient facilities for entrepreneurs investing in the state.
The Directorate of Rural Development (DRD) plays a major role in the socio-
economic growth of the state by implementing various schemes for the upliftment of the
rural people. The department has the responsibility to implement special centrally
sponsored rural development schemes. At the district level, the schemes are coordinated
and implemented by the district rural development agencies with the help of block
agencies and other line departments. The Panchayati raj institutions are also fully
involved in planning, execution, monitoring of schemes at the field level.

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Besides, the state govt. has established Rural Development and Self Employment
Training Institutes (RSETIs) in five districts. These institutes are being managed by the
public sector banks for training rural Below Poverty Line (BPL) youths for self
employment. District Mahendergarh and Sirsa are covered under the 100 percent
centrally assisted scheme, namely Backward Regions Grant Fund (BRGF) from the year
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2007-08. The objective of the scheme is to fill up the critical infrastructural gaps in
various sectors identified by the local bodies.
To alleviate the poverty and for the generation of employment opportunities in
the state, a good number of state govt. agencies, financial and development institutions
are involved responsible for implementing various schemes both state and centrally
sponsored rural development schemes regarding employment generation as Self Help
Groups (SHG’s) National Rural Employment Guarantee Programme ,Prime Minister
Rojgar Yojna, Rural Employment Generation Programme (REGP),Prime Minister
Employment Guarantee Programme ( PMEGP) etc. for generation of employment
opportunities through establishment of micro enterprises in rural as well as urban areas.
Besides, a good number of agencies like DRDAs, DICs, HKVIB, NABARD, and
RRBs etc. have implemented various schemes like Swarnjayanti Gram Swarozgar
Yojana (SGSY), SHG-Bank linkage program, PMRY & REGP (now PMEGP), Member
of Parliament Local Area Development Scheme (MPLADS), and HSIIDC Udyog Kunj
Scheme etc. Institute of Rural Research and Development in Haryana is currently
targeting sustainable development in rural Haryana. The goal of the Foundation in India
is to improve the overall well-being of villagers through grassroots activities and by
promoting "self employment" to the youth of rural Haryana.
1.4 The Entrepreneurship Development Perspectives
There are two distinctive schools of thoughts pertaining to entrepreneurship
development around the economies in the world. The first relates to a traditional
paradigm of education and training for developing first generation entrepreneurs. The
second school of thought advocates not only developing and enabling potential
entrepreneurs but providing start-up support (through an eco-system of policy, facilities,
credit & finance, Technical, managerial and strategic support framework) also (Gorman,
G., Hanlon, D. & King, W., 1997).

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A traditional paradigm in entrepreneurship development assumes that the process
of entrepreneurship development is associated with entrepreneurship development
programs (EDPs) conducted mainly for the purpose of identifying and developing
potential entrepreneurs (Chandrasekhar K.S., 2006). These EDPs are devised for
grooming entrepreneurs through entrepreneurial training to develop and strengthen the
entrepreneurial quality (Kroon J., Klerk S. D., Dippenaar A., 2006) and competencies of
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the potential entrepreneurs willing and ready to build their own business or enterprise
creation. The basic features of such EDPs are identification and careful selection of
potential entrepreneurs for training, developing entrepreneurial capabilities of the
trainees (Kumar S. A., 2008), equipping the trainees with basic managerial
understanding and ensuring a viable industrial project for each identified potential
entrepreneur (J.S. Saini J. S., Bhatia B. S., 1996).
It is primarily meant for developing first generation entrepreneurs.
Entrepreneurial development is a process in which persons are injected with motivational
drives of achievement (Shah P., Mehta B., 2012) and in right to tackle uncertain and
risky situations especially in business undertakings. The process of entrepreneurial
development focuses on training, education, reorientation and creation of conductive and
healthy environment for the growth of enterprises (Kao, J.J. and Stevenson, H.H., 1985).
1.4.1 The Paradigm of Rural entrepreneurship development
With a shift in the traditional paradigm, rural entrepreneurship development as an
alternative paradigm involves developing capacity of rural people or communities to be
entrepreneurial in their own rural context and providing start-up support (through an eco-
system of policy, facilities, finance, Technical, managerial and strategic support
framework). The strategy for RED is three pronged. RED is mainly concerned with the
development of three constituent aspects of the concept of rural entrepreneurship namely
development of rural entrepreneurs, development of rural enterprises and development of
rural entrepreneurial eco-system. These aspects may also be defined as the
developmental needs with respect to RED. The basic objective of rural entrepreneurship
development demarcated by policy makers in our country envisaged the commitment to
create socio-economic parity in the rural areas as against its counterparts. Rural
Entrepreneurship Development aims at bringing about the dispersal of micro and small
village industries (MSVEs) in rural areas with the advantage of optimum mobilization of
local resources.

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Entrepreneurial development is the practice of encouraging the creation and
growth of start-up companies-represents another emerging set of innovative development
practices. Rural Entrepreneurship Development (Kirve H., Kanitkar A., 1993) is a vital
program for socio-economic development of rural areas. The objectives are to trigger
economic development and generate employment by providing necessary factor inputs
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and infrastructure for productive uses in agriculture and rural industries, and improving
the quality of life of the rural people by entrepreneurial Empowerment. This also focuses
on to help upgrade the skill, creativity & productivity of rural artisans and encourage
value-addition and quality of their products.
The rationale for the Rural Entrepreneurship Development is rooted in a clear
opportunity for building more prosperous, dynamic and sustainable economies in rural
India through entrepreneurship development enabling the rural people to build micro and
small industries on their own. Energizing rural entrepreneurs is one important place of
this strategy for rapid rural industrialization and creating Rural Entrepreneurship
Development eco-system that focus on supporting rural entrepreneurs and building
entrepreneurial communities is another part of this strategy.
1.4.2 Scope ofRural entrepreneurship development
Rural industrialization driven rural entrepreneurship development for promoting
Micro and Small Village Enterprises (MSVEs) is considered basically a question of
properly linking the rich, but idle natural resources in the rural areas. It is a process of the
involvement of industries in the development of an area and also participation by area
factors and agents in the growth of industries best suited to that specific area. It implies a
fusion among the resources of the rural area and people’s aspirations and the industrial
activities.
The scope of RED revolves around building a system of support for entrepreneurs –
through a focus on entrepreneurship education, technical assistance, and financial capital
– and to create a culture of entrepreneurship and supportive policy that would sustain
these efforts into the future. Rural Entrepreneurship Development (RED) Policies,
efforts, programs and schemes focus on:-

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Identification and cultivation of potential entrepreneurs among different target
groups such as Rural Poor, Women, Minorities, SCs, STs, OBCs etc and
promotion of rural unemployed people (men & women) into gainful economic
activities.
Recognize and developing a climate conducive to the development of rural
enterprises and entrepreneurs and Creating and fostering a support environment
such that any resident with the motivation and capacity to become an
entrepreneur can do so, regardless of location in rural hinterland.
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1. Identification of area-specific viable manufacturing and service activities,
developing the potential of setting up all types of industries in the rural areas and
Promoting and Supporting Micro and Small Village Enterprises (MSVEs) for
rural people to utilize their potential for self-employment and innovation.
3. Providing, developing and augmenting both production-oriented and welfare-
oriented rural infrastructure, and physical facilities to facilitate setting up of new
enterprises.
4. Identifying the educational and training & Development needs of the rural
people, designing suitable program of entrepreneurial education and providing
them with the skills, knowledge and tools needed to start their own venture, and
establishing and sustaining a comprehensive and supportive institutional
framework for providing Gainful economic and employment opportunities to
utilize rural resources.
5. Fostering institutional network to provide necessary support and assistance
pertaining to Credit and finance, Technical Know-how, input sources and
procurement, information and Data need about govt. Policies, Market potential
sand competition in the market, technological changes, opportunities and treats to
their business etc.
6. Institutionalization of support agency network to deliver customized and
comprehensive entrepreneurial solutions to suit the specific requirements of rural
entrepreneurs and Extending candidate specific 'escort services' to entrepreneurs’
right from project identification, availing financial assistance and accessing
markets.
7. Economic empowerment to rural people and empowering prospective rural
entrepreneur through knowledge and expertise
8. Alleviation of Poverty and unemployment.

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Keeping in view the aforesaid contents of rural entrepreneurship development for
expeditious rural industrialization and present socio-economic contents of the state, the
process of rural entrepreneurship development demands the following essential
conditions in its perspectives: (i) Micro and Small Village Enterprises (MSVEs) built and
managed by first generation rural entrepreneur should be based on the locally available
raw material. (ii) Scope of marketing should be extended to urban, regional,
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national and if possible up to foreign trade (iii) Appropriate and up-to-date technology
adoption by Micro and Small Village Enterprises (MSVEs) to enhance viability and
competitive strength.
1.5 Govt. Role in Developing Rural Entrepreneurship
Rural policy makers are turning to entrepreneurial development strategies to
stimulate economic growth. In many respects, by making entrepreneurship a cornerstone
of economic development, these new endeavors are forging a new policy frontier.
However, the impacts of these activities are largely unknown. Going forward, the
impacts must be monitored to ensure the benefits outweigh the costs.
In India, the Government's policy and programmes have laid emphasis on poverty
alleviation, generation of employment and income opportunities and provision of
infrastructure and basic facilities to meet the needs of rural poor. Governments at the
Centre as well at the State designed a number of schemes and programs for the support
of entrepreneurs in general and for rural men/women entrepreneurs in particular.
Government has identified several sectors in the rural areas and has accordingly formed
various schemes to improve and enhance the socio-economic well being and quality of
life in villages. RED in India has received much attention during the last few years. The
Department of Rural Employment and Poverty Alleviation under the Ministry of Rural
Development have initiated several schemes in which 30 to 40 per cent of the benefits
are reserved for rural women below the poverty line. The underlying philosophy of these
schemes is to encourage entrepreneurship and self-help among rural women. Several
policies, programs, schemes, procedures and institutions have been formulated and setup
to support development of entrepreneurship among the rural people in India (N.C.
Saxena, 2007). Such developmental and promotional measures can be categorized as
follows-
6. Policy framework supporting rural entrepreneurship and entrepreneurs.
7. Programs supporting rural entrepreneurship and entrepreneurs.

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8. Institutional support to rural entrepreneurship and entrepreneurs.
1.5.1 Govt. Policies, Assistance and Programs
Rural entrepreneurship development program/sponsored schemes (Nitin Jain,
2006) has been perceived by the researchers as a supplementary measure and is
undertaken within the broader context of rural development framework. These programs
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aim primarily at not only providing the means of self-employment to the person
concerned but at the same time providing direct and indirect employment opportunities
to many others (Ashappa C., Hanamanthappa B. Sedamkar, 2011).
REDPs are envisioned as mechanism of socio-economic development of the rural
India (Shiva Kant Singh, 2002). Such Programs creates entrepreneurs who are able to
establish small and micro enterprises which require lower investment of funds and a few
employees only (R. K. Khatkar, 1989). These programs aims at mitigating poverty,
elimination of unemployment and thus providing gainful self-employment and
promotion of micro and small village enterprises (MSVEs), balanced regional
development, Utilization of local resources, in the rural areas and to check lopsided
economic development.
The various government schemes offered which includes entrepreneurship
development concept are Prime Minister’s Rojgar Yojna (PMRY), Swarnjayanti Gram
Swarozgar Yojna (SGSY), and rural employment generation Program (REGP).
Swarnjayanti Gram Swarozgar Yojana Scheme (SGSY), the amended and merged
version of the erstwhile Development of Women and Children in Rural Areas
(DWCRA), Integrated Rural Development program (IRDP) and Training of Rural Youth
for Self Employment (TRYSEM), was launched in April 1999. It is a holistic credit-cum-
subsidy program, covering all aspects of self-employment.
An overview (chapter-5) of the major conclusions drawn from the secondary
Data analysis of the centrally and state sponsored rural industrialization and employment
generation schemes and programs implemented in the state provide the perspective to
identify the core issues related to performance of such program/sponsored schemes and
their true impact on the socio-economic well being of the people in the rural context and
fostering and nurturing rural entrepreneurship and micro and small village enterprises
(MSVEs).
Keeping in view the documented objectives, a detailed study about Govt.
policies, assistance and programs has been done in chapter five (5) entitled as “Role of

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Select Development Agencies and programs” and the impact evaluation of such
programs in chapter six (6) entitled as Impact and growth Analysis.
1.5.2 Institutional Network and Support Agencies
A network of organizations is there in the state, which provides loan facilities as
well as training, consultancy, and marketing services to the rural entrepreneurs. The
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government has created institutional network to provide the infrastructural support to
entrepreneurs (Arun Aggarwal & Nicolas Perrin, 2009). A number of institutions and
government agencies (Vaidyanathan S., Sundar V., 2011) at different levels are involved
in RED creating an entrepreneurial eco-system for removing various environmental and
personal inhibiting factors or barriers to the growth of rural micro and small village
enterprises (Kalpana Vaish, 1993). Entrepreneurship development institutions in context
represent the Institutional Network and Support Mechanism for Rural Economic
Development (Bharati V. Pathak, Pathak Bharati V., 2011). The government of India and
the respective governments in the states have created, developed and sustained the
institutional network of organized developmental institutions in the country supporting
the development and sustenance of micro and small village enterprises and alleviating
rural poverty (Rakesh Kumar Gupta, 1993). The various central and state sponsored
institutions and autonomous agencies for support of SSI are SSI board, KVIC, SIDO,
NSIC, NSTEDB, NPC, NISIET, IIE and EDI etc. The state government agencies are DI,
DIC, SFC, SIDC, SIIC, SSIDC etc (Bhole, 2009).
State Government of Haryana provides special care for the development of
infrastructure for the development of rural enterprises. The efforts of the state in this
direction are supplemented by the Central scheme called "Integrated infrastructure
development" (IID). National Programme for Rural industrialization (NPRID) is another
Central Govt. Scheme to set up Industrial clusters in Rural and backward areas.
Keeping in view the documented objectives, a detailed study about development
organizations and support agencies has been done in chapter four (4) entitled as
“Institutional network and support agencies” and their developmental roles in chapter
five (5) entitled as “Role of Select Development Agencies).
1.6 Performance Appraisal Perspectives
The Oxford English dictionary defines performance as the “accomplishment,
execution, carrying out, and working out of anything ordered or undertaken”. Armstrong

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and Baron (2005) argue that performance is a matter not only of what people achieve, but
how they achieve it. Bates and Holton (1995) suggest that performance is a
multidimensional construct, the measurement of which depends on a variety of factors.
Brumbach (1998) offers the most precise definition. “Performance means both behaviors
and results. Behaviors are also outcomes in their own right and can be judged apart from
results”.
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Similarly, Performance Appraisal is considered one of the most important human
resource practices (Boswell and Boudreau 2002). The Oxford English Dictionary defines
appraise as “estimate the value or quality of”. Linking this to performance, Bird (2003)
suggest performance appraisal is the assessment of what we produce and how. The
phrase performance appraisal, in the present context of study, refers to program
evaluation. The process of evaluation provides with better means for learning from past
experience, improving service delivery, planning and allocating resources and
demonstrating results as part of accountability to key stakeholders.
Program evaluation, as viewed by the researcher, is an objective assessment of an
ongoing or recently completed project, program or policy, its design, implementation and
results. Evaluation deals with questions of cause and effect. It is assessing or estimating
the value, worth or impact of an intervention and is typically done on a periodic basis –
perhaps annually or at the end of a phase of a project or program. An evaluation studies
the outcome of a project (changes in income, housing quality, benefits distribution, cost-
effectiveness, etc.) with the aim of informing the design of future projects. Evaluation
looks at the relevance, effectiveness, efficiency and sustainability of an intervention. It
will provide evidence of why targets and outcomes are or are not being achieved and
address issues of causality. Evaluation Analyzes why intended results were or were not
achieved, Assesses specific casual contributions of activities to results, Examines
implementation process, Explores unintended results, Provides lessons, highlights
significant accomplishments or program potential and offers recommendations for
improvement.
Program Impact assessment is a particular aspect of evaluation, focusing on the
ultimate benefits of an intervention. The impact evaluation assesses changes in the well-
being of individuals, households, communities or firms that can be attributed to a
particular project, program or policy. Impact Assessment is an aspect of evaluation that
focuses on ultimate benefits. It sets out to assess what has happened as a result of the
intervention and what may have happened without it. Where possible impact assessment
tries to differentiate between changes that can be attributed to the program from other

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external factors that may have contributed as well as examining unintended changes
alongside those intended. Impact assessment Seeks to capture and isolate the outcomes
that are attributable (or caused by) the program, processes, reports and analysis, Provides
an in-depth understanding of the various causal relationships and the mechanisms
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through which they operate, May seek to synthesize, compare, contrast a range of
interventions in a region, timeframe, sector or reform area.
Performance evaluation sets out an evaluation framework for obtaining,
analyzing and appraising information about the relative worth of various developmental
programs, sponsored schemes and the development organizations. In the present context
of the study, this refers to the evaluation of the physical and financial performance of
rural entrepreneurship development program/sponsored schemes and assessment of the
impact of such interventions on the socio-economic well being of rural people. Such
evaluation is intended to provide information for and answers basic questions about
various program’s effectiveness, and evaluation data can be used to improve program
focus area. Such evaluation study of government-backed development organizations and
schemes are initiated to review the financial and physical progress, role of people and
people’s organizations in planning, implementation and monitoring of schemes, level of
achievement of objectives and the effectiveness of the administrative and implementing
systems. The performance appraisal of evaluation study draws important and useful
lessons to help designing future programs and policies.
The focus of the performance appraisal rural entrepreneurship development
programs is measuring and evaluating the actual performance of the development
institutions and sponsored schemes to judge their contribution in relative terms of the
desired/planned outcomes. Its aim is to measure and judge the gap between the actual
and the desired performance.
1.6.1 Scope of Performance Evaluation
The scope of this study is limited to a few selected institutions and further self-
employments program and entrepreneurship development schemes implemented by
respective selected institutions fostering rural entrepreneurship in Haryana.

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With respect to theoretical and factual evaluation in the light of documented objectives,
the present study made an attempt to understand and document the following two
dimensions of the rural entrepreneurship development Programs/initiatives/interventions
in the study area-
3. Performance evaluation (in terms of financial, operational) of the select Development
Institutions/Agencies with respect to such REDPs
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4. Performance evaluation (in terms of Physical & Financial performance and Socio-
economic Impact evaluation) of the select development programs/Schemes of each of
such Development Institutions/Agencies.
A detailed discussion about the various aspects of the scope of the present study
in chapter three entitled as “Research Methodology” tends to appreciate the relevance of
above documented appraisal/evaluation considerations.
1.7 concepts and operational definitions
This section deals with concepts and operational definitions of terms which are
much important for this study. Some of the terms used frequently in this study are
defined for the purpose of clarity.
Performance:
The term performance in the context of present study has been defined as the
“operationalisation, implementation, execution, accomplishment, and delivery of planned
outcomes to the stakeholders of anything ordered or undertaken. The phrase
performance, in the present context of study, refers to the operationalisation,
implementation, execution, accomplishment of development programs and Govt.
sponsored schemes, and delivery of planned outcomes to the beneficiaries of the
programs and society at large in a manner the program has been conceptualized.
Performance Appraisal:
Bird (2003) suggest performance appraisal is the assessment of what we produce
and how. The phrase performance appraisal, in the present context of study, refers to
program evaluation. The process of evaluation is an objective assessment of an ongoing
or recently completed project, program or policy, its design, implementation and results.
Evaluation Analyzes why intended results were or were not achieved, Assesses specific

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casual contributions of activities to results, Examines implementation process, Explores
unintended results, Provides lessons, highlights significant accomplishments or program
potential and offers recommendations for improvement. The term evaluation answers the
question “what has happened as a result of the intervention?”
Impact:
Impact is the effect as perceived in the development program aspects. Impact
assessment Seeks to capture and isolate the outcomes that are attributable (or caused by)
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the program, Will review all fore-going M&E activities, processes, reports and analysis,
Provides an in-depth understanding of the various causal relationships and the
mechanisms through which they operate, May seek to synthesize, compare, contrast a
range of interventions in a region, timeframe, sector or reform area.
Entrepreneurship:
Entrepreneurship is the process of acquiring, assembling, and deploying
resources in the pursuit of perceived opportunities for long-term gain. In the present
context, the term Entrepreneurship refers to the process of new venture (An income
generating activity) creation by acquiring, assembling, and deploying physical and
human resources and relevant knowledge in the pursuit of perceived opportunities for
long-term gain, assuming risk and rewards.
Rural Entrepreneurship:
It means establishing a Rural Enterprises i.e. a new business either commercial,
industrial or service venture in the rural areas. Rural Entrepreneurship is the dynamic
process of launching a micro and small village enterprise de novo or diversifying from an
existing one [distinct from seeking self employment as in a profession or trade] by an
individual or a set of people or communities in the rural areas, thus to pursue growth and
rural socio-economic development and people wellbeing while generating wealth,
generation of rural income, employment opportunities, social good and strengthening of
purchasing power of the rural people..
Rural entrepreneur:
A Rural entrepreneur is someone who is prepared to stay in the rural area and
contribute to the creation of local wealth by recognizing a business or self employment

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opportunity in the rural or village context and uses entrepreneurial principles to organize,
create, and manage a venture assuming risk and rewards.
Rural Enterprises:
Rural Enterprises refers to business activities either commercial, industrial or
service venture in the rural areas. The present study uses the term Micro and small
village Enterprises [MSVEs] broadly to include any enterprise that involves relatively
few individuals or employees engaged in activities in the rural context. Micro and small
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village Enterprises [MSVEs] is a comprehensive term that the researcher has used in a
common parlance to refer to the economic or business activities carried on in relatively
small establishment in the rural context. The concept of smallness is with reference to the
scale of operations. A rural enterprise comes in all types and tends to cover rural traders
and merchants, service provider and rural industries, Street venders, carpenters, machine
shop operators, and peasant farmers etc.
Village industry:
According to the Khadi and village industries commission [KVIC], [M.
Soundarapandian, 1999] “Village industry or rural industry means any industry located
in rural areas, population of which does not exceed 10,000 or such other figure which
produces any goods or renders any services with or without use of power and in which
the fixed capital investment per head of an artisan or a worker does not exceed a
thousand rupees”. The definition of village industry has been recently modified by the
government so as to enlarge its scope. Accordingly, any industry located in rural areas,
village or town with a population of 20,000 and below and an investment of Rs. 3 Crores
in plant and machinery is classified as a village industry [M. Soundarapandian, 1999].
Micro and Small Village Enterprises [MSVEs]:
The review of a vast pool of empirical studies and observations made researcher
to conceptualize the prevailing trends of form and nature of rural industries as Micro and
Small Village Enterprises [MSVEs]. MSVEs can be classified into small, tiny, Cottage
and Household Industries, Handloom and Textiles, Khadi and Village Industries,
Handicrafts Development and Sericulture. MSVEs includes producers of goods, agro and
related products, micro/Tiny/cottage level manufacturing enterprises, Trading enterprise
and service providing enterprise covering artisans, skilled craftsman and Technicians in
the areas identified as Villages , small towns which are socio-economically poor , areas
rural in nature, industrially backward or less developed or areas purely having purely

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agricultural or farming pattern of occupation. MSVEs focus on cottage
industry/household industry/Tiny industry/Rural Traders etc.
Rural Development:
Rural Development is a broad, inclusive term which takes in its ambit socio-
economic and political development of the rural areas. It includes measures to strengthen
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the democratic fabric of society through the Panchayati Raj Institutions as well as
provide the vast rural multitude ‘voice and choice’ apart from measures to improve the
rural infrastructure, improve income of rural households and delivery systems pertaining
to education, health and safety net mechanisms. Poverty alleviation and socio-economic
wellbeing of rural people and development of social and economic infrastructure are the
key components of rural development.
Entrepreneurship Development:
This refers to the process of identifying, developing and grooming potential
entrepreneurs through entrepreneurial training, developing entrepreneurial capabilities of
the trainees, equipping the trainees with basic managerial understanding and ensuring a
viable industrial project for each identified potential entrepreneur. The process of
entrepreneurial development focuses on training, education, reorientation and creation of
conductive and healthy environment for the growth of enterprises.
Entrepreneurship Development Programs (EDPs):
EDPs refers to the educational and training programs primarily meant for
developing first generation entrepreneurs, conducted mainly for the purpose of
identifying and developing potential entrepreneurs, strengthening the entrepreneurial
qualities and competencies of the potential entrepreneurs willing and ready to build their
own business or enterprise creation.
Rural entrepreneurship development: Rural entrepreneurship development as an
alternative paradigm involves developing capacity of rural people or communities to be
entrepreneurial in their own rural context and providing start-up support [through an eco-
system of policy, facilities, finance, Technical, managerial and strategic support
framework]. Rural entrepreneurship development is mainly concerned with the
development of three constituent aspects of the concept of rural entrepreneurship namely

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development of rural entrepreneurs, development of rural enterprises and development of
rural entrepreneurial eco-system.
Rural Entrepreneurship Development Program (REDPs):
REDPs in the context of present study, refers to ‘Government interventions'- both
institutional and sponsored schemes. The Government's policy and programmes for the
development of rural areas which includes the concept of entrepreneurship development,
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Self-employment generation, development of khadi and village industries, rural
industrialization and Poverty alleviation etc. has been envisioned by the researcher as a
mechanism of socio-economic development of the rural areas and conceptualized as
Rural Entrepreneurship Development Program (REDPs). Such Programs creates
entrepreneurs who are able to establish small and micro enterprises which require lower
investment of funds and a few employees only. These programs aims at mitigating
poverty, elimination of unemployment and thus providing gainful self-employment and
promotion of micro and small village enterprises [MSVEs], balanced regional
development, Utilization of local resources, in the rural areas and to check lopsided
economic development.
References:-
A.K. Sood (2009) “Evaluation of rural entrepreneurship development programs in
Himachal Pradesh, Evaluation study series, no. 4, NABARD HP regional office,
Shimla.
Abraham D. T., Kalamkar S. S. (2011) “Rural Entrepreneurship through Micro credit,
Bank Linkage and Subsidy”, Conference Research paper, Conference on
Inclusive & Sustainable Growth Role of Industry, Government and Society,
Conference Proceedings: 2011 ; IMT Ghaziabad
Alasadi R. and Abdelrahim A. (2007) Critical analysis and modeling of small business
performance, Journal of Asia Entrepreneurship and Sustainability, 3(2) 84-105
Anand Bansal (2012) “How is entrepreneurship good for economic development?” The
IUP journal of entrepreneurship development, vol. 9(2), June 2012, pp. 7-22

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Anantha Raj A. Arokiasamy (2011) “The role of higher education in promoting
entrepreneurship in Malaysia’, Asian Journal of Management Research, vol-2(1),
pp. 520-523
God Mercury: An Entrepreneurial Archetype", Journal of Management Enquiry, vol
1(3), September, 1992.
Biswas T., Sengupta P.P. (2008) “Entrepreneurship: The Indian Story”, online research
paper available at IndianMBA.com; accessed on-
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Boswell W.R., Boudreau J.W. (2002) Separating the development and evaluative
performance appraisal uses, Journal of Business and Psychology, Vol 16, pp391-412
Brumbach G. (1998) “Some ideas, issues and predictions about performance Management”,
Public Personnel Management, winter, pp 387-402
C.G.E. Salami (2011) “Entrepreneurial Interventionism and Challenges of Youth
Unemployment in Nigeria”, Global Journal of Management and Business Research,
vol. 11(7); Version 1.0, July 2011, pp. 23-34
D. Anjum (2011) “Rural Entrepreneurship in Jammu and Kashmir: opportunities and
challenges”, International Journal of Research in commerce, Economics and
Encyclopedia of Business and Management: Routledge Publishers, London, pp. 168-
176
J. P. Kumar, A. Abirami (2012) “Perception on Entrepreneurship & Innovation among
college students”, International Journal of Current
Research, Vol. 4(3), pp.239-241
J.S. Saini J. S., Bhatia B. S. (1996) “Impact of Entrepreneurship Development
Programs vol. 5(1), pp. 65-80
“, journal of Entrepreneurship,

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7. Ahmad, Wan F. W. Yusoff, H. M. Noor, A. K. Ramin (2012) “Preliminary study on
Rural entrepreneurship development program in Malaysia”, Journal of Global
Entrepreneurship, vol. 2(1), pp. 23-26
R. K. Khatkar (1989) “Rural Development: IRDP in Mahendergarh District, Haryana”,
Northern Book Centre, Delhi
Rajbir Singh (2001) “Entrepreneurship Development in Haryana with reference to role of
vocational education”, PhD thesis; Department of business management, GJUST
(Hisar)
Rakesh Kumar Gupta (1993) Development Banks and Industrial Development, Deep and
Deep Publications, Delhi
S. K. Mohanty (2005) Fundamentals of Entrepreneurship, PHI Learning Pvt. Ltd, ND
CHAPTER-8
SUMMARY OF FINDINGS,
CONCLUSION AND SUGGESTIONS

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This chapter summarizes the study as a whole. The summary of
findings pertaining to both the secondary data about critical role of
various development institutions under consideration and primary
data collection under PMRY, SGSY, REGP, NABARD- SBLP and
MSME (SIDO) programs. The major findings of the evaluative
analysis of self-Employment Programme for Rural Poor in the three
districts viz Mahendergarh, Rewari and Gurgaon of Haryana, and the
findings of the impact of the programme in eradicating poverty,
Entrepreneurship Development, Employment generation and
economic well being of the rural poor has also been presented.
Further the conclusions has been drawn and documented. Based on
the findings and concluding remarks, a few suggestions has been
offered for better implementation of the programme, policy changes
and further research.
8.1 Summary
Entrepreneurship has become an important area of study and it
is also considered to be a new way for creating wealth, generating
employment and providing new and better goods and services. So,
initiating entrepreneurship is an important aspect of changing the
rural world. The notion of entrepreneurship development has often
been stressed as being crucial for the socio-economic development of
rural India and poverty alleviation, yet it generally neglected in
reference to the concept of Rural entrepreneurship and rural
entrepreneurship development. Only a few studies have addressed the

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construct of rural entrepreneurship and rural entrepreneurship
development and its impact on country’s economic and human
development. The concept of rural entrepreneurship development has
remained almost unexplored in India and at a larger scale in Asia as a
whole. One such unexplored area is that of the Indian rural economy
and rural industrial sector which has been experiencing the futile
attempts of the policy makers and supporting agencies meant for
fostering rural entrepreneurship development in the country.
The study attempts to add incrementally to the existing
literature in three ways. First, a few studies have been conducted to
examine the impact of rural entrepreneurship development
programmes of various development and supporting institutions on
promotion, development and sustenance of micro and small village
enterprises in the state of Haryana. However, development of micro
and small village enterprises and
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employment generation, so vital for the socio-economic and
industrial development of the rural areas, has never been the
subject of these research works. Second, an indirect impact of
rural entrepreneurship development initiatives, mediated by socio-
economic outcome in the form of micro and small village
enterprises, is assesses for the first time. Finally, while examining
the relationship between the performances of selected rural
entrepreneurship development institutions & government schemes
and its resulting socio-economic and employment outcomes, this
study makes use of responses both from the beneficiaries’ and the
people from such institutions responsible for the desired physical
and financial outcomes. Hence, a need was realized that prompted
the researcher to form a view to take up studies to assess the role
and impact of the developmental infrastructure and important
schemes as a whole in rural entrepreneurship development in
selected villages of the selected districts of the state of Haryana.
The study focused on the questions being asked by many
people in India on how the supporting institutional network for the
entrepreneurial development in the rural areas and various poverty
alleviation programmes of government, since 1970s have impacted
on the people. The aim was to look at both, the developmental
institutions and promotional interventions in the form of poverty
alleviation and entrepreneurship development measures put in
place by successive governments and how these programmes have
impacted positively or negatively, on the people. Hence, the
present study assumed greater importance. The study made an
attempt to understand and document the following two dimensions
of the Govt. sponsored self-employment generation oriented rural
development programs intended to foster rural entrepreneurship
development in the documented study area-

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3.Performance evaluation [in terms of financial, operational] of
the select Development Institutions/Agencies with respect to
such REDPs
4.Performance evaluation [in terms of Physical & Financial
performance and Socio-economic Impact evaluation] of the
select development programs/Schemes of each of such
Development Institutions/Agencies
This study made an explicit effort to define entrepreneurial
development in a way that might be applied to an examination of
rural economic development efforts. The overall objectives of
the study remained to examine and evaluate the Socio-economic
Impact and performance of various government schemes,
programs and institutional support in achieving the target of
fostering rural entrepreneurship and promote, support and
sustain rural entrepreneurs & micro and small village enterprises
[MSVEs] in the state of Haryana. The documented objectives
relates to the following-
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2.Documenting the institutional network and the involvement of
support agencies, profiling the select various entrepreneurship
development organizations and documenting their rural
entrepreneurship development programs, policies and schemes
in Haryana.
3.Documenting the credit & financial assistance, management &
technical assistance, infrastructural support and entrepreneurship
education and training provided by the development
organizations to the prospective rural entrepreneurs in Haryana.
4.Evaluating the performance of development programs and their
impact on the economic well being of the rural population,
growth of SSI and Village industries in the State, and generation
of employment opportunities in rural areas of Haryana.
8.2 Findings and Discussion
The findings of the study are presented in accordance with
the stated objectives outlined in chapter number three under
research methodology. Some of the major revelations of the study
are as follows-
2. There are a good number of development organizations
engaged in fostering rural entrepreneurship in the country. Such
organizations are primarily concerned with executing or
implementing development programs either sponsored by
center Govt. or by the state Govt. The schemes are channelized
and operationalised through such financial institutions,
development organizations or Govt. Support agencies like DIC
or DRDA. The present study dealt with select agencies like
DIC, DRDA, HKVIB, NABARD, HSIIDC and SIDO (now

208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084
MSME-DI). These agencies have been analysed and
documented with reference to and in the context of stated
objectives of the present study related to fostering rural
entrepreneurship in the state of Haryana.
3. The analysis found that DIC, DRDA, and HKVIB have poorly
performed with respect to the promotional efforts required for
the proper operationalisation and execution of the entrusted
development programs in the three districts. The respondents
revealed a mix of responses about the creation of awareness
about the programs through different means and were lacking in
the proper promotion which resulted into a situation where a
large number of people in the society were not aware about
such programs and missed the opportunity to avail the benefits.
The development organizations have implemented the
sponsored programs aiming at providing avenues to rural poor
to be self sustained by starting and running their own income
generating activities in the form of any business like industrial
or trading or service etc. For this purpose, the eligible
applicants who wished to take advantage of Govt. programs
have been extended micro credit (Bank loan) through such
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Phone: 0512-2328181
Mobile: 7753818181, 9838033084
organizations. Such beneficiaries have also been provided the
management and technical assistance in their respective are of
business activities that helped them to start, run and manage the
business properly. The needed infrastructural support in terms
of land, shops, go down etc. has also been made available to the
needy entrepreneurs so as to help and support them in their
income generation venture. The analysis of primary data
revealed a poor scenario of the status of development
organizations who were supposed to extend management and
technical assistance and infrastructural support to the program
beneficiaries. On an average, 84% of the total respondents who
could be located said they were not even aware of such kind of
assistance and support and hence could not reach the concerned
authorities for a proper direction. (Refer table-7.10, Table-7.21
and so on)
9. The development organizations provided credit and financial
assistance and support to the prospective rural entrepreneurs
who availed the program benefits. Subsidy or margin money
assistance being the part of subsidy-linked credit programs, was
availed by almost 98% of the respondents under the different
programs like PMRY, REGP, SGSY etc. but out of this almost
90% beneficiaries failed to start any kind of income generating
activities for which the credit and subsidy was extended. (Refer
table-7.4 to table-7.32). The table revealed the year-wise
amount of finance extended, the cumulative value, and further
analysed in terms of the financial targets given and achieved
during the implementation of the program.
10. A program wise analysis to find out the relationship between
various REDPS and employment generation in rural Haryana
reveals that out of PMRY, REGP, SGSY, SHG-BLP etc., only
SHG-BLP have generated significant employment not only in
terms of employing the family members but providing

208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084
employment to other people also. In case of the rest of the
programs, the primary data analysis revealed that such
programs failed to even give a boost to employment in the study
areas. Further, it was observed that the aggregate data of growth
of rural employment is not available on websites of Govt. of
Haryana and also it is not available in any of the annual
statistical abstracts, and hence no statistical analysis could be
perform in this regard to test the hypothesis as the nature of
primary data was as such where no statistical tool could be
applied.
11. The primary data analysis with regards to the economic
wellbeing variables revealed that only those program
beneficiaries (12% approx) showed the improvement in their
economic status who availed the credit and subsidy benefits and
could actually convert the loan and subsidy amount into some
sort of income generating activities
201

208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084
by starting some petty business. Such beneficiaries have shown
the improved annual income level, improvement in the
household assets and different housing facilities. The researcher
observed that such beneficiaries have better health care
services, educational opportunities for their wards by sending
them to schools and colleges and access to various utility
services that happened to be possible only due to their profit
making income-generating venture started by taking the
advantage of Govt. sponsored programs.
9. Every sponsored program was conceptualized in terms of
mandatory entrepreneurship education and training to rural
youth who have availed the credit facility under the respective
programs. The primary data analysis revealed that on an
average 98% of total respondents under different programs
attended the mandatory EDPs or training programs which was
intended to equip the participating program beneficiaries, to
gain knowledge and required skills to venture into self owned
business to start some income generating activities.
Respondents under different programs have shown a mix of
training relevance and outcome responses and eventually the
usefulness for the proposed business activity. (Refer table-7.11,
Table-7.22 and so on)
10. Further, with regards to entrepreneurship education and
training in the form of EDPs or ESDPs or skills development
programs, the study reported several areas of inadequate
performance- choice and deployment of faculty, course
material, expectations of the participants, timing, delivery and
focus of the programme. EDPs conducted by banks or under the
schemes like PMRY (Prime Minister’s Rozgar Yojana) have
greater conversion rates of participants into entrepreneurs but
the mortality rates are also high. Participants start their
businesses because banks sanction loans to them rather

208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084
smoothly. However, the businesses fail because the
entrepreneurs did not really deserve.
11. The primary data revealed a poor overall performance of the
programs both in terms of physical achievements and financial
achievements. The respondents too have shown dissatisfaction
with regard to the working and operations of the implementing
agencies. Further observations revealed no coordination
between different agencies and Banks who are responsible for
granting small loans to those who has been referred by
implementing agencies to the banks for the sanction and
disbursement of loan amount and credit of subsidy amount.
202

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Phone: 0512-2328181
Mobile: 7753818181, 9838033084
8.3 Conclusions
On the whole, centrally sponsored rural self-employment
generation oriented programmes which have been studied in the
context of contribution to the rural entrepreneurship development
have not been implemented to a large extent in true letter and spirit
for improving the social and economic standard of living of the
targeted groups, growth of rural enterprises, generating
employment opportunities in the rural Haryana and economic well
being of the rural poor. Research has shown that entrepreneurship
is an increasingly important factor in the economic growth in the
rural areas and communities across the states. However, analysis
of the impact of entrepreneurship on rural economic growth is
limited. One primary reason is the lack of data on entrepreneurial
activity. Based on the scheme–wise findings of study, following
conclusions have been drawn on various employment generation
schemes:
1. Under SGSY program, the success rate in the three districts
under study is not satisfactory. any of the intended benefits
under SGSY have not reached the Swarozgaris in a proper way
due to some weakness in design and implementation. Animal
husbandry and Agriculture related occupation were dominant
SGSY activities in district Rewari and Mahendergarh. Not
many traditional activities were
given priority. In
most
o
f
the Self Help
Groups,
the selection
of
activity
was
finalized
through
grou
p
discussi
on;
there
has been
ver
y
limite
d role of
block officials, social activators and bankers in corrupti
in

208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084
decision making. The on
ban
ks
i
s
delayi
ng
th
e loan process,
man
y of
the
Swarozgari
s
have
indicated
that bank officials are
asking
for
bribes
for sanctioning the loans. Lack
of training
has been one of the major concerns in the scheme.
There is lack of
understandi
ng of SGSY
sche
me
among
st
many
of
the Swarozgaris.
There
is lack of supervision and monitoring by the
district/block officials. No
follow-up
is
bein
g
done to
see
whether the
ongoing
SHG/individual
Swarozgaris
are
able to
run
their
busines
s
in
an
effective and efficient manner.
There is also
shorta
ge
of
field
officer
s at
block
level
fo
r
proper supervision of the SHGs.
Some of
the
Swarozgari
s
are utilizing the
loan
money for their personnel
purpose.
2. Under PMRY scheme which has been now restructured in the form
of PMEGP, it
may be concluded that
some of
the
beneficiaries
availing loan from the
bank
did not start the due to financ or lack of

208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084
ventures/units inadequate e demand
for their products or services. As specified in
the guidelines of
PMRY, the
income-
ceiling limit of the beneficiaries should be Rs. 40,000 per
annum to avail the loan. Most of the beneficiaries interviewed,
fall into the annual personnel income group of
203

208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084
above Rs.45001 to more than Rs. 60000. A majority of ventures
started under PMRY were owned individually. The
participation of female beneficiaries under PMRY is
very limited. Many of the
beneficiaries
who started the venture could not
sustain it
for long and had
closed
down
the
unit
s
due to the tough competition
and
inadequate finance.
DICs is
not following
a
viab
le
frame work for up
gradation
of training provided to the beneficiaries
in terms of
the changing market
condition.
The
PMRY
schem
e
was intended to provide employment not
only to the
beneficiar
ies
but
also to
the family members and others. But the
proportion
of beneficiaries
reporting
as unemployed as well as unpaid family
labour at the
time of application had declined. There is no proper follow-up by
DIC.
4. Under REGP program, there a lack of infrastructure facilities at
the district level offices of KVIB. There is also inadequate
staffing in the office. There is no proper
follow-up by KVIB. No changes are suggested to the
beneficiaries for proper design and implementation of their
venture/units by KVIB. Most of the KVIB district offices are

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