Five Measures for Development of Rural Entrepreneurs in India

Entrepreneurs emerging in rural areas are generally termed as rural entrepreneurs. These types of entrepreneurs give much emphasis on establishment of industrial units in rural areas. Rural entrepreneurs have paid special attention on village industries which are classified into the following major categories.

  1. Agro-based Industry
  2. Textile Industry
  3. Polymer and chemical based Industry
  4. Engineering Industry
  5. Forest based Industry.

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There is a growing need for rural entrepreneurs because industrial units undertaken by rural entrepreneurs are providing much employment to men than machines. It has high potential for income generation in rural areas because of more employment opportunities.

It also facilitates wide dispersal of economic activities in rural areas. In spite of growing need for rural entrepreneurs, there has not been much progress and development of rural entrepreneurs. Slow progress of rural entrepreneurs is seen from the following data.


The analysis of above data reveals that there is no much substantial development of rural entrepreneurs and rural industries in different plan period.

However, the growth of rural entrepreneurs in 2nd five year plan is quite satisfactory. As growth of rural entrepreneurs is not satisfactory, the following measures are to be implemented for development of rural entrepreneurs.

i. As raw materials constitute the basic ingredient of industry, there should be free and continuous supply of raw materials. Continu8ous supply of raw materials ensures continuous and smooth production process.

ii. Rural entrepreneurs face inadequacy of capital which is regarded as the life blood of business unit. Provision for adequate capital will facilitate development of rural entrepreneurs.


iii. One of the major problems of rural entrepreneurs is marketing of product. The problems of marketing can be solved by provision of common production cum marketing centers.

iv. Most of rural entrepreneurs accept this professional career not according to their choice but by chance. This ensures lack of aptitude and competency. One can overcome these difficulties by encouraging rural entrepreneurs.

v. Rural industries fail not due to non-availability of facilities but non-awareness of facilities. So different awareness programmers are to be encouraged for development of rural entrepreneurs.

In the present days different non-government organizations (NGOs) are formed for developing awareness programmed on development of entrepreneurs. There are 3 different types of NGOs.


vi. Primary level NGOs who mobilize their own resources. They operate at international level for undertaking developmental activities. The examples of these types of NGOs are ACTION AID and OXFAM.

vii. Intermediate NGOs who obtains funds from various agencies. They conduct different training programmers and workshop. The examples of intermediate NGOs are SEWA and AWAKE.

viii. Grass root levels NGOs denote a type of NGO which conduct field activities by establishing linkage with grass root people. RUDSETI and ANARDE are the best examples of grass root level NGO.

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