Any development is not possible without taking

the rural masses into account. Thus innovations

affecting the rural population are at the heart of any
developmental process in India .

There has not been satisfactory improvement in
the rural sector, problems such as the middlemen
standing between the farmers and the market and
making away with the profits. This can be stopped by
encouraging entrepreneurship in rural areas.

Rural entrepreneurship is, in essence, that
entrepreneurship which ensures value addition to rural
resources in rural areas engaging largely rural human
resources.


This means that finished products are produced in rural
areas out of resources obtained in rural areas by largely rural
people.
Whats Rural Entrepreneurship?
Types of Rural Entrepreneurship :

Rural entrepreneurial activity can be broadly classified in 4 types:

i) Individual Entrepreneurship - It is basically called proprietary i.e.
single ownership of the enterprise.

ii) Group Entrepreneurship - It mainly covers partnership, private
limited company and public limited company.

iii) Cluster Formation - It covers NGOs*, VOs*, CBOs*, SHGs* and even
networking of these groups. These also cover formal and non-formal
association of a group of individuals on the basis of caste, occupation,
income, etc.

iv) Cooperatives - It is an autonomous association of persons united
voluntarily for a common objective. An entrepreneur has to decide on a
particular type of entrepreneurship based on the various options
available.
Rural innovations not only improve the
productivity and efficiency of local farmers & rural areas,
but also have significant environmental and social
impact by developing eco friendly appropriate
solutions to local problems. Rural innovations and
appropriate technologies are being created for viable and
sustainable micro ventures.
Domains of Rural Entrepreneurship:

1. Food Processing
2. Dehydrated Fruits and Vegetables
3. Fruit Based Beverages
4. Mushrooms
5. Chikki Industry
6. Poultry Industry
7. Cottage and Handicrafts Industry
8. Oil Industry
9. Pottery
10. Repair of Phone/Mobile Phone, Electronic and Electrical
goods
11. Rural Tourism
12. Entertainment
13. Modern Industries
Innovations of Rural India
Rural innovations and appropriate technologies are being created
for viable and sustainable micro ventures.
In India there are about 6.3 million villages contribute 60% of national
income.
Unemployment is the main problem in Rural India.
A small innovation in the rural area would catch up the most of the
population and would facilitate to produce competitive products and
increase the income of rural people.
Entrepreneur has the ability to perceive latest economic
opportunities and device innovative strategies to increase the demand
for their goods.
India is the most populous
country in the world.

About 70% of its population
resides in Rural area

About 2/3
rds
of Indias rural
population engaged in
agriculture, accounts for
less than 1/4
th
of the National
Income.



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

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

Azim Premji: People who produce innovative technologies
to customers; they will definitely succeed.
TCS Ramadorai and Bill Gates opine that
entrepreneurs are people who do things differently and by sheer
perseverance they build the enterprise to a greater height.
Some Personalities on Innovation & Entrepreneurship:

Success Full Rural Innovations:
Milk & Fruit Based Beverages: A washing machine converted to lassi
maker.

Handicrafts Industry: Old clothes given new lives as curtains &
cushion covers. Paper & Areca Nut Plates, Clay made Idols and allied
items.

Pottery Industry: An ingenious refrigerator made entirely from
terracotta (clay) that keeps water cool and fruits, vegetables and milk fresh
for days and yet doesn't use a single watt of electricity.

Modern Industries: A rural Business Process Outsourcing company


Pottery Industry:
Mr. Manshuk Lal Raghavji Bhai Prajapati from the Village Wankaner Dis. Rajkot.
(Gujarat).
Started as a supervisor in roof tiles Manufacturer Company of Gujarat.
At the year 1989 started making Tavdi (TAWA) from the TARAQUTA MUD
Then in 1997 launched MITTI COOL WATER FILTER successfully
After in 2002 launched MITTI COOL REFRIGRATOR .
In 2004 MITTI COOL REFRIGRATOR got award from National and State RURAL
DEVELOPMENT institutions.
Now he get orders from abroad and peoples like to use his natural Refrigerator /
Filter.
It is manufactured and marketed by J Support Industries, a Kerala-based
company headed by Mr. Joy John.
This portable machine has a vacuum handle, which is used to create the
necessary suction power to draw milk out & the most hygienic and easy manner.
Makes the whole process of milking absolutely simple and safe for the cattle.
JS MILKER (Manual Milking Device)
Milk & Dairy Industry:
Mr. Karrupaiah, of Process Ekuipment, a S.S.I in Pollachi,
has developed the coconut-dehusking machine.
The machine can dehusk 500-coconuts/ hour of size of dia
120 mm to 250 mm.
The machine requires 3 semi-skilled people to operate and
achieve the above efficiency. The machine operates on a 1.5
HP single-phase motor, weighs 175 kg and is provided with
forward and reverse switch.
The machine's design has been registered with the Patent
Office, Chennai.


Cottage Industry:
COCONUT DEHUSKER
Modern Industries:
DesiCrew a rural Business Process Outsourcing company by
IIT-MADRAS, which sets up IT-enabled service centers in rural areas to employ
and train local people to meet the back-office demands of regional clients.
Elecsha:
Is a completely battery driven Electric cycle rickshaw modifying the
rickshaw by making it a 3-gear .
It has the potential to provide attractive alternative to petrol & diesel
powered three wheelers.
Cost - An estimate cost would be about Rs.50, 000- Rs 60,000

Conclusion:
Its true that India lives in her villages.
Rural entrepreneurship is the answer to removal of rural poverty in
India.
The problem is that most of the rural youth do not think of
entrepreneurship as the career option.
Therefore, the rural youth need to be motivated to take up
entrepreneurship as a career, with training and sustaining support
systems providing all necessary assistance.
Innovation and entrepreneurship is not only about making it big, but
also a journey of self realization Of ones hidden talents, learning
potential and strength.

KADAKNATH POULTRY
REARING

Smt. Keena wife of Shri Nanu of
Mendal village, District Jhabua, Madhya
Pradesh was landless and survived on wage
labour, with her husband and two
daughters. The family would migrate in
search of wage labour, to nearby villages for
almost seven months each year.
In March 2005, Keena returned to her
village -- participate in a village meeting for Self
Help Groups organized by the Assistant
Development Officer (ADO) along with eleven
other women of her village ---A year after forming
the SHG, members decided to initiate some
activities to generate income for the family---
However, considering the low saving level within
the group,
Keena obtained a bank loan of
Rs.44,000/- with a 50% subsidy through the
Integrated Tribal Development Project facilitated
by the Madhya Pradesh Rural Livelihoods Project
(MPRLP).
With her past experience and
interest in rearing local poultry birds, Keena
decided to rear Kadaknath, an indigenous
poultry breed of Jhabua District(m.p)
constructed a shed measuring 22*12 feet
200 birds of 15-20 days old pre-vaccinated
chicks @ Rs 15 per chick.
Her venture resulted in a profit of
more than Rs 37000/- in a year enabling her
to return the loan of Rs. 11,000/- to the bank
in 2007. Most birds are sold by Keena for Rs
300 each as they reach 5-6 months of age
and weigh between 1-1 Kg.
The Kadaknath poultry rearing unit emerged
as a good source of income for Keena to
meet both her household financial needs as
also provide a source of nutrition for herself
and her family. The mortality rate was
brought down to 10% through her practical
skills .
There is no need for the family to
migrate in search of wage labour anymore,
contends Keena. She is a happy woman
who has set an example for other tribal
families to emulate.
STRENGTH:

Her self confidence and self interest paved the way to her
success.
Innovative ideas help in her growth.
Her family support and practical management skills.
Innovative marketing strategy

OPPURTUNITES::

Availability of market.
Opportunities to expand further
Demand for the birds meat and eggs




WEAKNESS

Success in her project remains uncertain.
Financial constraint.

THREATS

Risk of drought.
Threat of epidemic diseases.
Drastic climatic changes.
Growth of other competitors.
Threat to new entrants.

Referance:
1. http://www.nif.org.in/bd/douknow
2. http://www.rinovations.org/Innovations/data-
bank
3. http://www.innovationsofindia.com/list_of_innov
ations/elecsha.htm
4. http://www.indianmba.com/Faculty_Column/FC
995/fc995.html
5. http://www.rajdst.gov.in/entrepreneurship_devel
opment_divnew.htm