Prepared By-

Prabhuprasad Bad 09Chirag Patel 38Vipul Patel 39Dilesh Tare 58

“Entrepreneurs” are people who create and grow enterprises.

“Entrepreneurship” is the process through which entrepreneurs create and grow enterprises.

Definition:- Rural entrepreneurship is that

entrepreneurship which ensures value addition to rural resources in rural areas engaging largely rural human resources.

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.

Individual Entrepreneurship Group Entrepreneurship Cluster Formation Cooperatives

• Food Processing• Dehydrated Fruits and Vegetables• Fruit Based Beverages• Mushrooms• Chikki Industry• Poultry Industry• Cottage and Handicrafts Industry• Oil Industry• Pottery

Repair of Phone/Mobile Phone, Electronic and Electrical goods

Rural Tourism Entertainment Modern Industries

PROJECT IDENTIFICATION

Choice of starting new business in –

Manufacturing UnitTradingService EnterpriseOther 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

Training and Development of Rural Entrepreneurs

Training of rural Youth for Self Employment (TRYSEM) Launched by the Government of India in 1979 as a

facilitating component of Integrated Rural Development Programme (IPDP).

Prime Minister's Rozgar Yojana (PMRY) Launched on 2nd October 1993 to assist educated

unemployed youth to set up self-employment ventures.

Swaranjayanti Gram Swarozgar Yojana (SGSY) Launched by Government of India in 1999 with a focus on

providing effective self employment through self help group approach and activity cluster approach for rural poor families below poverty line.

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 FacilitiesBanks 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