Prepared By-

Prabhuprasad Bad 09
Chirag Patel 38
Vipul Patel 39
Dilesh Tare 58
 “Entrepreneurs” are people who create and grow enterprises.
 “Entrepreneurship” is the process through
which entrepreneurs create and grow
enterprises.
Definition:-
Rural entrepreneurship is that
entrepreneurship which ensures value
addition to rural resources in rural areas
engaging largely rural human resources.
 India is the most populous
country in the world.

 About 70% of it’s population

resides in Rural area

 About 2/3rds of India’s rural

population engaged in
agriculture, accounts for
less than 1/4th of the National
Income.
 Individual Entrepreneurship
 Group Entrepreneurship
 Cluster Formation
 Cooperatives
• Food Processing
• Dehydrated Fruits and Vegetables
• Fruit Based Beverages
• Mushrooms
• Chikki Industry
• Poultry Industry
• Cottage and Handicrafts Industry
• Oil Industry
• Pottery
 Repair of Phone/Mobile Phone, Electronic
and Electrical goods
 Rural Tourism
 Entertainment
 Modern Industries
 PROJECT IDENTIFICATION

 Choice of starting new business in –

 Manufacturing Unit
 Trading
 Service Enterprise
 Other Sectors
 INFORMATION ACCESSIBILITY

◦ Information on Business Ideas

◦ Ideas
◦ Capital Organization
◦ Support System
 MARKET ASSESSMENT

◦ Analysis of Market Demand

◦ The Competition
◦ Trading Practices
◦ Primary & Secondary Data
◦ Market Research
 FEASIBILITY REPORT

 REGISTRATION PROCEDURE

 LEGAL ASPECTS OF BUSINESS

◦ The Factories Act, 1948
◦ Industrial Disputes Act, 1947
◦ Social legislations
◦ Wage legislations
 Training for Entrepreneurship
Development

◦ Entrepreneurship Development Programmes

(EDPs)

◦ Entrepreneurial motivation

◦ Entrepreneurship Development Centers being run

in each State, and national level institute
 Training and Development of Rural Entrepreneurs
 Training of rural Youth for Self Employment (TRYSEM)
 Launched by the Government of India in 1979 as a facilitating
component of Integrated Rural Development Programme (IPDP).

Prime Minister's Rozgar Yojana (PMRY)

Launched on 2nd October 1993 to assist educated unemployed
youth to set up self-employment ventures.

Swaranjayanti Gram Swarozgar Yojana (SGSY)

Launched by Government of India in 1999 with a focus on providing
effective self employment through self help group approach and
activity cluster approach for rural poor families below poverty line.
 Infrastructure plays a significant role in providing and
enabling encouraging atmosphere for the growth and
spread of rural enterprises and small industries.

 Basic infrastructure includes –

◦ Railways
◦ Roads
◦ Power
◦ Telecommunication services.
◦ Scheme of Fund for Regeneration of Traditional
Industries (SFURTI)
 PRIMARY MANAGEMENT FUNCTIONS

◦ Planning
◦ Operational Planning
◦ Decision-making
◦ Product Choice
◦ Technology Choice
◦ Organizing Production/Services
◦ Staffing
 PRODUCTION MANAGEMENT FUNCTIONS

◦ Production Management
 Production management is the process of arranging and
allocating work, men, money, and material resources in
such a structured manner to achieve the twin goals of an
enterprise - reducing costs and increasing profits.

 Working Capital
Operating Cycle
 PRODUCTION MANAGEMENT
FUNCTIONS

 Marketing Management
 Marketing involves assessment of the needs of
customers, a good pricing policy, promotional and
advertising approach and distribution system, and
finally good profit.
 FINANCIAL MANAGEMENT FUNCTIONS

◦ Costing
◦ Pricing
◦ Breakeven Analysis
◦ Cash and Fund flows Management
◦ Account & Book-keeping
 Credit and lending agencies operating in
rural areas –
 Institutional Agencies - Operate in regulated the
environment and observe fixed norms and guidelines
enumerated by the government.
 Banking Institutions
Development Banks
Non-banking financial companies

Non-Institutional Agencies – Operate in non-

formal manner.
 Fund Based Facilities
◦ Cash Credit/Working Capital Loan
◦ Bridge Finance (short term finance)
◦ Term Loan (for appearing Fixed Assets)

 Non-fund Based Facilities

Banks issue Letter of Credit or Letter of
Guarantee
 SUSTENANCE MANAGEMENT FUNCTIONS

◦ Co-ordination
◦ Controlling
◦ Delegating
◦ Supervising
 Lack in strategic planning
 Conflicts in Partnership Venture
 Practice of organizing resources for

production/services is taken on granted

 Do not prepare long-term plans
 Do not learn from mistakes
 Delayed cash flows