Starting, owning and managing a start-up business by optimum utilization of local resources for the development of a rural population is what rural entrepreneurship means.
We have seen an influx of rural migration into the cities in search of employment, resulting in overpopulation in the urban areas. To prevent such a situation and to minimize migration owing to unemployment, we need to create situations that create opportunities of employment in the rural areas itself. Value addition to rural resources in rural areas, engaging rural human resources is Rural Entrepreneurship in its truest form.
In countries like India, the need for rural entrepreneurship is very strong and the reasons are, employment generation, income generation, rural development and making villages self-sufficient. Doing so will invariably prompt the villagers to earn and live where they belong rather than moving to bigger towns and cities thus curbing rural to urban migration. An ideal situation would be when citizens from cities and towns find it worthwhile to shift themselves to rural areas looking at the vast possibilities and opportunities that are waiting to be tapped.
Young people with a creative and positive perspective, who aim to work towards the development of rural areas using rightly channelized efforts will be the ones to bring about a drastic change in the situation we see today. These dynamic rural entrepreneurs shall be successful in solving many such chronic problems within a short time span and make a mark in the industry while doubling their profits.
The rapid growth in population and an even faster rate of urbanization creates an increase in demands which are challenging for the traditional small-scale businesses who cannot cope up with the demand and supply cycle. This is where new and innovative solutions of an entrepreneur come in. Bringing in all-new global concepts, business strategies, information technology and a highly efficient infrastructure, the entrepreneur would have all the right tools in hand to chisel out one of the finest masterpiece in rural entrepreneurship.
Most of the industries in the rural sector are small-scale and cottage industries with a huge potential for growth. While being quick yielding they also provide large employment opportunities, which indirectly means, a smaller gestation period and cheaper labour as compared to the urban industries, ultimately resulting in better profit margins.
A host of opportunities are open for rural entrepreneurs and the categories they relate to are Food processing and Agro products, textile industry, cottage and handicraft industry, mineral based industry, engineering related and service industry.
Those who aspire to make it big in the world of rural entrepreneurship need to decide on the type of entrepreneurship suitable for their business and may choose from the following:
Individual entrepreneurship, which is a proprietary concern and a single ownership of an enterprise.
Group entrepreneurship is a partnership and can also be a public or private limited company.
Cluster formation relates to associations consisting of a group of individuals sharing the same interest, religion, caste or occupation etc. which are known as Non-Governmental Organizations (NGOs), Voluntary Organization (VOs), Self-Help Groups (SHGs), Community-Based Organizations (CBOs) and networking of all these.
Co-operatives are autonomous associations of persons united voluntarily for a common purpose.
It is not necessary that those who prefer rural entrepreneurship need to be from rural areas themselves. Enterprising urban citizens who are earnest and sincere enough to ensure and manage rural development must take up innovative projects and also promote the benefits of rural entrepreneurship to others.