Theory Of Rural Entrepreneurship

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Abstract:
Entrepreneurship stands as a vehicle to improve the quality of life for individuals, families and communities and to sustain a healthy economy and environment. Rural entrepreneurship has emerged as a dynamic concept. If entrepreneurship really encouraged in rural area it would, of course, be instrumental in changing the face of rural areas by solving the problems of unemployment, poverty, economic disparity, poor utilization of rural capacity, low level of standard of living. The majority of the rural population depends directly and indirectly on agriculture based activities like livestock processing, agro processing, fishery, animal husbandry etc. Diversification into non-agricultural uses of available resources such as catering …show more content…

In his study, he points out that there is no universally accepted definition of entrepreneurship. However, there are two main approaches to defining entrepreneurship, the functional approach and indicative (traits) approach. The functional approach says an entrepreneur is what an entrepreneur does to make money. It specifies a certain function in business and deems anyone who performs this function to be an entrepreneur. While the indicative describes an entrepreneur by his/her contractual relations with other parties, his/her position in society in an effort to carry out business and create wealth.
Petrin (1994) in another article concluded that rural development is now being largely linked to entrepreneurship. It acts as a vehicle to improve the quality of life for individuals, families and communities in order to sustain a healthy economy and environment.
Satya pal (2013), Rural entrepreneurship should not only set up enterprises in rural areas but should be also using rural produce as raw material and employing rural people in their production processes. Rural entrepreneurship is, in essence, that entrepreneurship which ensures value addition to rural resources in rural areas engaging largely rural human …show more content…

Development of industrial units in rural areas through rural entrepreneurship has high potential for employment generation and income creation.
• Proper utilization of local resources:
Rural industries help in the proper utilization of local resources like raw materials and labor for productive purposes and thus increase productivity. They can also mobilize rural savings which help in increase of rural funds.
• Improved standard of living:
Rural entrepreneurship will also increase the literacy rate of rural population. Their education and self-employment will prosper the community, thus increasing their standard of living.
• Producers goods of consumers' choice:
Rural industries including village and cottage industries produce goods of individual consumers' choice and taste. Artistic products are produced to cater to the needs of different consumers according to their taste, design and choice.
• Entrepreneurial development:
Rural industries promote entrepreneurial development in the rural sector. It encourages young and promising entrepreneurs to develop and carry out entrepreneurial activities in the rural sector which finally facilitate the development of the rural

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