Basic 7 Principles of Rural Entrepreneurship for Development. Rural settings in many parts of the world are poor. The rural is poor despite the presence of much raw material in the areas. The experience is the rural areas host many people in them. Since these areas are home to many individuals then they are to be well developed. The beauty about the rural is that they have their own natural resources which could just be developed into the final goods needed.
We think the rural could be developed through entrepreneurship. To carry out entrepreneurship properly it calls for proper skills to do it. In addition to this, rural people do not have much knowledge and awareness about the entrepreneurial opportunities which is open to them. And they are also not aware of the support organizations, government schemes and programmes and all the necessary information which is needed for its commencement.
Establishment of Rural Entrepreneurship
Setting up an industry in rural areas so as to develop entrepreneurship is not an easy task. Indeed it encompasses a series of activities. There are certain measures recommended for the development of entrepreneurship in the rural areas, which are discussed as under:
Availability of Raw Material
For the establishment of any industry, the availability of adequate raw material is a must. Nevertheless, the non-availability of raw materials along with their expensiveness has weakened the growth of such industries. Over the years, it has been observed that rural industries that have a heavy raw material base produced in the rural areas itself, often sustain in the long run. Hence the rural entrepreneurs should be ensured of the proper supply of raw material.
Creation of Finance cells
To start and operate an industry smoothly and uninterruptedly in rural areas, finance acts as a fuel. Availability of funds at the time of need, at a reasonable rate of interest, is the major requirement, which must be fulfilled. For this purpose banks and financial institutions can be opened, which can remove the hindrances caused due to the lack of finance.
Production and Marketing centres
Production cum marketing centres need to be established with state-of-the-art technology and advanced infrastructural facilities in the areas where the rate of production and growth is high. It encourages export business as well as bring together the buyers and sellers, and eliminates intermediaries.
Development of Entrepreneurial Attitude
If the entrepreneurs lack aptitude and competency, it will make the industrial unit sick. So, the entrepreneurial attitude and competencies need to be developed among the would-be entrepreneurs by way of training programmes such as EDP – Entrepreneurship Development Programme. To impart entrepreneurial skills, attitude and acumen in the youth, entrepreneurial education should be given in schools, colleges and universities. This will shape and direct the young minds to work or make their career in that field.
Basically, non-availability of the facilities is not a big problem, rather the big problem is the non-awareness of the facilities available for the development of rural entrepreneurship. So, the steps must be taken to make the people aware of the facilities and support provided to the entrepreneurs, to assist them in establishing the industries in rural areas.
Facilities should be made to provide institutional training to direct the entrepreneurs in the products and trades so that the resources of the region can be utilized in the best possible manner. Of the above-given measures, setting up of marketing cooperatives is an effective way which will provide complete assistance, guidance, direction and encouragement to the rural entrepreneurs for establishing the business. These will help the rural entrepreneurs to get the desired inputs at a reasonable price, as well as they can sell their output at competitive prices.