© 2013, IJARCSMS All Rights Reserved 28 | P a g e
ISSN: 2321-7782
Volume 1, Issue 2, July 2013
International Journal of Advance Research in
Computer Science and Management Studies
Research Paper
Available online at: www.ijarcsms.com
Rural Entrepreneurship in India:
Challenge and Problems
Brijesh Patel
1
Kirit Chavda
2
Research Scholar
G. H. Patel Institute of Business Management
Research Scholar
G. H. Patel Institute of Business Management
Sardar Patel University – Vallabh Vidhyanagar Sardar Patel University – Vallabh Vidhyanagar
Gujarat – India Gujarat – India
Abstract: Rural entrepreneurship is now a days a major opportunity for the people who migrate from rural areas or semi -
urban areas to Urban areas. On the contrary it is also a fact that the majority of rural entrepreneurs is facing many
problems due to not availability of primary amenities in rural areas of developing country like India. Lack of education,
financial problems, insufficient technical and conceptual ability it is too difficult for the rural entrepreneurs to establish
industries in the rural areas. This paper makes an attempt to find out the Problems and Challenges for the potentiality of
Rural Entrepreneurship. It also focuses on the major problems faced by rural entrepreneurs especially in the fields of
Marketing of products, financial amenities and other primary amenities, i.e. availability of electricity, water supply, transport
facilities and required energy etc.
Keywords: Rural Entrepreneurship, challenges, Problems, constraints, rural, amenities.
I. Introduction
Concept of Rural Entrepreneurship
Defining entrepreneurship is not an easy task. To some, entrepreneurship means primarily innovation, to others it means
risk-taking? To others a market stabilizing force and to others still it means starting, owning and managing a small business. An
entrepreneur is a person who either creates new combinations of production factors such as new methods of production, new
products, new markets, finds new sources of supply and new organizational forms or as a person who is willing to take risks or
a person who by exploiting market opportunities, eliminates disequilibrium between aggregate supply and aggregate demand or
as one who owns and operates a business.
What is Rural Entrepreneurship?
The problem is essentially lopsided development which is a development of one area at the cost of development of some
other place, with concomitant associated problems of underdevelopment. For instance, we have seen unemployment or
underemployment in the villages that has led to influx of rural population to the cities. What is needed is to create a situation so
that the migration from rural areas to urban areas comes down. Migration per se is not always undesirable but it should be the
minimum as far as employment is concerned. Rather the situation should be such that people should find it worthwhile to shift
themselves from towns and cities to rural areas because of realization of better opportunities there. In other words, migration
from rural areas should not only get checked but overpopulated towns and cities should also get decongested. If it is so, ways
can always be found out. One is by forcibly stopping villagers from settling in the slums of towns and cities, making use of all
powers to clear the slums so the villagers are forced to go back. But such practices have not achieved the desired results in the
past. Apart from causing suffering to the poor people and adding to the expenditure of the Government, social tensions and