Rural Entrepreneurship

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RURAL ENTREPRENEURSHIP 

Written By:

R N RAMESH   (MBA)                                                                       

School of Commerce and Management ,  Dravidian University,  Kuppam-517425

R KOKILA , M.B.A

Assistant Professor, Kuppam Engineering College, Kuppam-517425  

 

INTRODUCTION 

Entrepreneurship is generally understood to be the practice of starting new business organizations in response to perceived opportunities. It has been identified as one of the major trends shaping the business, economy and even society.

Employees of many state owned enterprises and privately held companies are choosing to give up their jobs and start their own ventures.

This mindset has undergone a change and many educated youth are turning their attention to emerging business opportunities. Many more are opting for an entrepreneurial venture midway through their career.

Entrepreneurial firms are reshaping the business ecosystem, creating an environment where they play a major role in introducing innovations, commercializing new technologies, creating new jobs, opening new markets, creating value by combining resources in exciting new ways.           

“ENTREPRENEURS ARE REVELING IN THEIR ROLES AS WORLDS LEADERS, ROLE MODELS AND HEROES”

  

DEFINITION: 

The word entrepreneur is derived from the French word “entrepreneur”, which means “to undertake”.

“The term entrepreneur is applicable, to “one who organizes managers and assumes the risks of a business or enterprise.

 

WHY TO START A BUSINESS IN RURAL AREAS 

Owning an own business is a great dream for most of the people. It remains a dream for many  but some people turns this dream into action and take the plunge( thrust, throw , pitch , push sink ,fall , force ).

Owning a business is a boon, provided you got into it the right way and know what to expect and what to do, otherwise it can be a nightmare. One quickly learns that it is easy to start a business. But running a business is entirely different ball game.

ADVANTAGES TO RUN A BUSINESS IN RURAL AREAS 

  • You are the boss
  • All profits are yours
  • There will be great variety in roles and tasks
  • Increases self- confidence
  • Work can be very satisfying
  • Success will give you immense satisfaction. 

SWOT ANALYSIS

STRENGTHS 

  • Creativity, valuable intangible assets
  • Competitive capabilities
  • Cost advantages from proprietary know how
  • Effective recruitment of talented individuals

 

WEAKNESS 

  • Disadvantages locations
  • Weak human capital
  • Lack of cash
  • Non- adaptation of the latest technology

 

OPPORTUNITIES 

  • Downsizing of competitors
  • Market trends
  • Buoyant economic conditions
  • Technology

 

THREATS 

  • Unfamiliar technology
  • New competitors
  • Depresses economic conditions
  • Fades
  • Technological superiority
  • Low fixed costs
  • Knowledge of market
  • Leadership and management

 

FINANCIAL GROWTH 

To grow you need to have money to invest in growth. Growth naturally means investing in new assets, hiring more people, producing more and stocking more. All this needs “MONEY . All investments are made with a view to get returns, but there is a time lag between making the investments and getting the returns.

  • Internal accruals
  • Contribution own equity
  • Venture capital
  • Bank finance
  • Taking on new partners

 

CONCLUSION 

Rural people consume most products such as shampoo, biscuits, tooth powder etc, in macro units. This is major linked to the fact that they earn in daily or weekly wages.  If you visit any rural household or a surrounding retail stores please observe what kind of things they have, tooth powder in a sachet, coconut oil in sachet, fair and lovely in sachet, only one soap bar, small biscuit packet, the telephone usage with a 1 rupee coin box, mobile phones usages in small top- ups 10/- so for. Chota Pepsi etc..

Many examples of successful rural entrepreneurship can already be found in literature. 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. 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.

Entrepreneurship in rural areas can benefit a lot from the so called strategic development alliances, i.e., partnership among governments or nonprofit seeking organizations, universities and the private sector.

To summarize, policy implications for rural entrepreneurship development are:

  • Sound national economic policy with respect to agriculture, including recognition of the vital contribution of entrepreneurship to rural economic development;
  • Policies and special Programs for the development and channeling of entrepreneurial talent;
  • Entrepreneurial thinking about rural development, not only by farmers but also by everyone and every rural development organization; and
  • Institutions supporting the development of rural entrepreneurship as well as strategic development alliances.

 

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4 Comments

  1. Nag bhaskar says:

    hi dear writers .it’s a very nice concept about RURAL ENTREPRENEURSHIP i just share this link to my rest of friends.we have entrepreneurship benifits from govt so please add that benfit, readers will know what they unknowing of schemes from govt. such as:NSIC (national small scale industries development)MSME(medium small and micro entereprenuers)SSI(small scale industries)

  2. c v subba reddy says:

    its good aryan… 

  3. vishnu says:

    It’s good…so what kind of business you think will succeed in rural areas. 

  4. pradeep kumar dondeti says:

    all the best!!!

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