em rural entrepreneurship management - neelesh anurag samar
TRANSCRIPT
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.
What’s 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 Processing2.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 goods11.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 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.
PROJECT IDENTIFICATION
Choice of starting new business in –
Manufacturing Unit Trading Service Enterprise Other Sectors
MARKET ASSESSMENT
Analysis of Market DemandThe CompetitionTrading PracticesPrimary & Secondary DataMarket Research
FEASIBILITY REPORT
REGISTRATION PROCEDURE
LEGAL ASPECTS OF BUSINESSThe Factories Act, 1948Industrial Disputes Act, 1947Social legislationsWage 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 –RailwaysRoadsPowerTelecommunication services.Scheme of Fund for Regeneration of Traditional
Industries (SFURTI)
PRIMARY MANAGEMENT FUNCTIONS
PlanningOperational PlanningDecision-makingProduct ChoiceTechnology ChoiceOrganizing Production/ServicesStaffing
PRODUCTION MANAGEMENT FUNCTIONS
Production ManagementProduction 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 CapitalOperating Cycle
PRODUCTION MANAGEMENT FUNCTIONS
Marketing ManagementMarketing 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
CostingPricingBreakeven AnalysisCash and Fund flows ManagementAccount & 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 InstitutionsDevelopment BanksNon-banking financial companies
Non-Institutional Agencies – Operate in non-formal manner.
Fund Based FacilitiesCash Credit/Working Capital LoanBridge Finance (short term finance)Term Loan (for appearing Fixed Assets)
Non-fund Based FacilitiesBanks issue Letter of Credit or Letter of Guarantee
Lack in strategic planningConflicts in Partnership VenturePractice of organizing resources for
production/services is taken on grantedDo not prepare long-term plansDo not learn from mistakesDelayed 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: It’s 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 one’s hidden talents, learning potential and strength.
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 ½ 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 furtherDemand 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/douknow2.http://www.rinovations.org/Innovations/data-bank3.http://www.innovationsofindia.com/list_of_innovat
ions/elecsha.htm4.http://www.indianmba.com/Faculty_Column/FC99
5/fc995.html5.http://www.rajdst.gov.in/entrepreneurship_develo
pment_divnew.htm