Rural Entrepreneurship: Meaning, Types and Importance
Rural Entrepreneurship: Meaning, Types and Importance: Let us tackle the basic concept. What is Entrepreneurship? Generally, it is an activity of setting up a business and carrying out all the business operations by taking some financial risks to maximize the margin of profit. It is enough to briefly understand the whole concept properly.
Now, fighting with the next one in mind, what is Rural Entrepreneurship? Rural Entrepreneurship is quite similar to that of urban entrepreneurship. When the entrepreneurship is based on the welfare and upbringing of the remote areas, then it is known as Rural Entrepreneurship.
Why Rural Entrepreneurship?
As people are migrating from rural areas to urban areas due to lack of job opportunities and rural youth is unable to find any options for their growth. It is not only bad for the rural areas as the rural areas do not have any options for youth but it also put pressure on the infrastructure and amenities of the urban areas.
However, a large number of products and services are available in remote areas but people do not have any inventive ideas to utilize all these resources in a proper manner. That is the reason; Rural Entrepreneurship is highly required to develop the small villages and their people too.
Rural Entrepreneurship: Meaning, Types and Importance
Definition of Rural Entrepreneurship
Rural Entrepreneurship defines the entrepreneurship whose origin lies in the rural areas whereas has a lot of potentials to undertake various business, industry, agriculture and play a significant role in the economic growth of the nation.
Limitations of Rural Entrepreneurship and development inputs
|1||Low level of confidence||Motivating inputs and sharing experience by successful local entrepreneurs.|
|2||No faith in anyone||Experience in group building.|
|3||No industry or business exposure||Factories and big markets visit.|
|4||With whom to contact for starting a venture and what are the policies and procedures?||Information inputs regarding procedures and policies.|
|5||How to know about the viability and soundness of the business?||Identification and guidance of opportunities.|
|6||How to evaluate the viability of the business?||Market survey and preparation of project report.|
|7||How to deal with bank operations?||Get basic training in banking procedures such as filling up deposit and withdrawals.|
Importance of rural Entrepreneurship
A significant role has been playing by the rural entrepreneurship in the overall economic development of a nation. Various opportunities comes with the growth as well as development of rural industries as it facilitates self-employment which may lead to the wider distribution of things in different economic and industrial activities which will be helpful in the maximum and proper utilization of resources such as raw material and labour which is available within the boundaries of the rural areas.
Here, we have jotted down some of the aspects that are related to the importance of rural entrepreneurship which results in the enhancement of socio-economic conditions of a nation and especially in remote areas. So, let us have a brief look at all these realms.
Proper Utilization of resources
All the resources related to the business are available in the remote areas and the rural entrepreneurship is associated with the proper and complete usage of all the materials to maximize the profit. Directly and indirectly, this will be helpful for making improvements in the economic and financial conditions of the rural areas. If the rural entrepreneurship does not exist, then it may lead to proper wattage of all the available resources and this might be not in favour of any nation.
When there is the proper utilization of all the resources by the rural entrepreneurs, then this may lead to increase productivity. On the other side, when the labour available in the rural areas gets some work through these types of entrepreneurship, then it will also be helpful to eliminate unemployment. Unemployed people get employed due to rural entrepreneurship.
Generation of employment opportunities
A huge number of employment opportunities generated because of the rural entrepreneurship for the people who are living in these areas. A basic problem of any nation in today’s era is unemployment and underemployment. This type of entrepreneurship gives ample new opportunities to people and effectively tackle the problem in a very positive way.
Rural industrialization is labour intensive and provides great dealings to all rural people. People from rural areas migrate to the urban areas in search of a job and it helps to decrease the migration by offering similar opportunities for growth in their remote areas.
Also See: Top Cheapest Business to Start from Home
Plug the gap
There is always a huge gap between the remote areas and urban areas in terms of better education as well as job opportunities for all. Rural Entrepreneurship helps to fill the gap by providing a similar level of growth and development opportunities for people in rural areas and compete with the urban areas too. It maintains a gap between the income in remote and the urban areas.
Enhance traditional culture
All type of historic and ancient artistic activities was originated from rural areas and it is obvious that people have immense talent in terms of tradition and culture. Rural entrepreneurship plays a vital role in the promotion of artistic activities and helps them to create some brilliant handicraft pieces and earn their bread and butter easily. In addition to this, the old-age artistic heritage is also conserved by protecting as well as promoting the rural entrepreneurship.
Foster economic development
The economic development of remote areas fosters with the help of rural entrepreneurship. On the one hand, it keeps control over the migration from rural areas to the urban areas and secondly, increases the level of growth in all the areas equally. Differentiation between the areas such as slum, towns and cities, etc, eliminates to a great extent. Apart from this, there is a proportion of social tension and environmental pollution too.
Getting foreign exchanges
The products manufactured in rural areas is exported to the other nations across the world and in this way, they will earn foreign exchanges. It also enhances the rural entrepreneurship and gives a great push to the way of success.
Consider the taste of consumers
All the products manufactured by the rural entrepreneurship are according to the taste of the customers and fulfil all the expectations what they want. Choice of each individual taken into consideration and so, they produce jewellery, sarees, artistic materials that are produced serve all the requirements of the customers.
In the remote areas, the development of entrepreneurship is enhancing by the rural entrepreneurship. At the same token, it encourages the young generation and talented people to come up with something new and carry out the entrepreneurial tasks in the rural sector. Hence, it develops the rural areas also.
Types of Rural Entrepreneurship
Rural Entrepreneurship is related to the development and improvement of rural area people by utilizing all the available resources in a proper manner. Various types of opportunities for rural entrepreneurs are there in remote areas if you consider area, population, biodiversity and various agro-climatic zones. Now, we will discuss various types of Rural Entrepreneurship that can be done in rural areas. Let us have a look.
- Farm-based enterprise: This types of rural entrepreneurship comprises of different types of farming which are mentioned below:
Organic and Floriculture
It includes organic farming and floriculture. The demand for all the organic products and goods is increasing day by day across all the corners of the world. When there is the availability of certified organic products, then the export will increase. All the required inputs are available in rural areas and it is a type of entrepreneurship that can be a very good option.
High Tech Agriculture
It includes the production of all types of non-seasonal vegetables, non-native vegetables, mushroom and so on. The production of these products will increase with the increase in the income of middle-class people.
It is of great benefit to cultivate some medicinal plants as it is required because people believe in natural medicines more as compared to drugs. Moreover, there is a reduction of medicinal plants from the forest.
The demand for natural perfumes is highly popular among people and they are not harmful to health as compared to chemical products. It will give a great opportunity to natural perfumes as it is a heart-winning product,
A meagre amount of land is not good from an agriculture point of view and these are easily used for commercial purposes. To exemplify, plants like eucalyptus, poplar, bamboo etc can be cultivated. These items are used widely by paper mills, matchstick manufacturers and furniture makers. Bamboo trees are useful in producing more than thirty products.
- Food processing and Agro waste
It is the most preferred activity and especially in rural areas. The market of this type of entrepreneurship is expanding and tons of agro-waste is burning every day. Here is a very straightforward option of turning the waste into briquettes which can be burnt in rural industries. To exemplify, various products are there such as rice bran oil, Gum from tamarind seeds and others can be extracted. Some other products are also made in rural areas such as handmade paper, board, packing paper and corrugated paper boards.
- Pesticide products
Presently, we are using the chemical fertilizers for crop cultivation at a great extent. Several types of organic fertilizers such as compost, vermin-compost as well as neem based fertilizers can be produced fro own use and to sell the same in urban areas also. These products are using a very low level of energy and can be easily made out of wastes.
- Animal Husbandry based enterprise
One of the most organized and popular enterprises is dairy farming and it can begin with two to three animals to thousands of animals. This business is related to the production and distribution of milk. Poultry will be next very popular enterprise as it includes the sale of eggs and the poultry birds as well as the poultry feed industry which are also viable.
In addition to this, there is another option of commercial rearing of animals such as pigs, sheep, rabbits and goats for wool and meat where the grass is easily provided to these animals.
Sericulture is also known as apiculture and it is a very old profession. It is undeniable that silk garments are highly popular and it can also be shifted to the commercial level. Moreover, there are no issues with the production of silk and processing silk. It is also beneficial to export the products directly. Apart from this, pollination can also be done with the help of honey bees and maximizes agriculture production.
It can be easily done in any corner of the world where water is easily available. Fish tanks can be established in waste and degraded lands. Moreover, Shrimp or Prawn culture is also popular in coastal areas.
- Traditional Handicrafts
Every nation is famous for its distinct traditional and cultural art which is originated from rural areas. Rural people have more experience and expertise in the field of historic products and arts. A huge market is there for crafts and traditional products. Small businessman buys products from these markets and sells the same to urban areas at a high price.
Hundreds of people are working in this industry in rural areas however the benefit has taken by urban areas by selling the products produced by rural people. The rural entrepreneurs can also take up this activity and get the entire profit by directly selling the products to urban areas and export to other nations also.
There are many options for rural entrepreneurs however there is a need to take action regarding the various resources available and its proper utilization.
So it was all about Rural entrepreneurship: meaning, types and importance. If you liked then please share it with your friends.