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Rural and Women

Entrepreneurship

By
Group No 4
Group Members
• Ms. Wilma
• Ms. Vanishri
• Ms. Zenely
• Ms. Yashaswitha
Topics
• Meaning of RE
• Need for RE
• Self Help Groups
• Problems of RE
• How to develop RE
• Meaning of WE
• Functions of WE
• Problems of WE
• Growth and recent trends in WE
• How to develop women entrepreneurs
Rural Entrepreneurship & Self
Help Groups

By
Wilma
Introduction
• 75% of the Indian population is living in
rural areas
• Rural-urban dichotomy reveals wide
disparities
• Agriculture has a tendency to develop at a
lower pace than industry
• Industry leads to higher level of output
than agriculture
Meaning
• Rural entrepreneurship

“ Entrepreneurship emerging in rural areas”

“ Establishing industrial units in the rural


areas”
Meaning of rural industry
KVIC GOVERNMENT

Population <10000 <=20000

Fixed capital Not exceeding 3 crores in plant &


investment Rs. 1000 machinery
Need for Rural entrepreneurship
• To provide Employment
• To reduce disparities in income between
rural and urban areas
• To promote balanced regional development
• Promote creativity
• Economic development in rural areas
• Environment friendly
Self Help Groups
• SHG is a small group of rural poor, who have
voluntarily come forward to form a group for
improvement of the social and economic status of the
members.
• The concept underlines the principle of Thrift, Credit
and Self Help.
• Members of SHG agree to save regularly and
contribute to a common fund.
• The members agree to use this common fund and
such other funds (like grants and loans from banks),
which they may receive as a group, to give small loans
to needy members as per the decision of the group
Needs of SHG’s
• To mobilize the resources of the individual
members for their collective economic
development.
• To create a habit of savings.
• Utilization of local resources.
• To mobilize individual skills for group’s
interest.
• To create awareness about rights
• To assist the members financially at the
time of need.
• To identify problems, analyzing and finding
solutions in the group.
• To organize training for skill development.
• To build up teamwork.
• To develop linkages with institutions of
NGOs.
Membership
• From one family, only one person can become a
member of SHG
• The group normally consists of either only men or
only women
• Members should be homogenous i.e. should
have the same social and financial background
• Members should be between the age group of
21-60 years.
Functions of SHG
SAVING AND THRIFT
• All SHG members regularly save a small
amount
• “Savings first-Credit later” should be the
motto of every SHG member.
• SHG members take a step towards self-
dependence when they start small
savings.
INTERNAL LENDING
• The SHG should use the savings amount
for giving loans members.
• The purpose, amounts, rate of interest,
schedule of repayment etc. are to be
decided by the group itself.
• Proper accounts to be kept by the SHG.
MEETING
• The group should meet regularly, the meetings
should be weekly or at least monthly.
• Compulsory Attendance
• Membership register, minutes register etc. are
to be kept upto date by the group by making the
entries regularly.
• Commonplace
• Discussing problems
- Find solutions

• Planning
- Plan to get financial supports from
Government, Bank and NGO
- Development programmes
SKDRDP (Sri Kshethra
Dharmasthala Rural
Development Project)
• Established by Dr. D. Veerendra Heggade

• Launched in the year 1982

• Upliftment of rural poor


Major types of SHG
Pragathibandhu Model (Male groups)
• Partner for progress
• Labor sharing
• each member works for all the members
once in a week
• Jnanavikasa women SHGs
• promotes women SHGs involving landless women in the villages

• Jnana vikasa SHGs


• Group enterprises SHGs
• Simple SHGs.
Shree Dharmasthala SIRI
Gramodyoga Samsthe
• Backbone to SHG

• The products are sold


under brand SIRI
through out
Karnataka.
Apart from all the above, SKDRDP is
conducting various social awareness
programmes like environment
programmes, watershed development
programmes, irrigation systems,
adoption of alternative sources of
energy, agriculture development
programmes, religious festivals etc.,
for the benefit of the rural people. That
is SKDRDP has single window solution
to the beneficiaries for their daily life.
PROBLEMS OF RURAL
ENTREPRENEURSHIP,
ROLE OF THE GOVERNMENT IN
RURAL ENTREPRENEURSHIP, HOW
TO DEVELOP RURAL
ENTREPRENEURSHIP

by,
VANISHRI. P
Problems of rural entrepreneurship

Lack of technical know-how


Lack of training & extension services
Management problems
Lack of quality control
High cost of production due to high input cost
Lack of communication & market information
Poor quality of raw materials
Lack of storage & warehousing facilities
Obsolete & primitive technology
Lack of promotional strategy
ACCORDING TO THE NINTH PLAN…………………

Inadequate flow of credit


Use of obsolete technology, machinery,
& equipment
Poor quality standards
Inadequate infrastructural facilities
How to develop rural ENTREPRENEURSHIP

Raw material is a must for any industry


Finance
Marketing
Development programmes
Education
Awareness of facilities
ROLE OF THE GOVERNMENT IN
RURAL ENTREPRENEURSHIP

By…
vanishri.
INTRODUCTION

After the liberalization of Indian economy, with


the entry of multinationals, the competition has
become intense. As a result urban markets have almost
been saturated with the products.
Bottom of the pyramid includes parties like
Private enterprise, Civil society organizations and
Local government, Development and aid agencies,
BOP consumers, BOP entrepreneurs. After the
liberalization of Indian economy, with the entry of
multinationals, the competition has become intense in
rural markets.
CHALLENGES

 Quality Consciousness
 Brand Loyalty

 Fashion Consciousness

 Urban Orientation
NEED OF GOVERNMENT
SUPPORT
 The government has critical role in creating system and regulatory
framework for meaningful engagement by the Bottom of the
Pyramid Entrepreneurs in the Bottom of the Pyramid (BOP)
markets.
 Education and healthcare.
 Public sector banks in India government has provided banking
services in remote rural areas also, Rural Credit institutions such
as National bank for agriculture and rural development,
Commercial banks, State cooperative banks, State cooperative
agriculture and rural development banks.
 SHG.
 Government has to identify various rural technologies which can
be applied and installed with small investment and minimum
infrastructure that are available in rural areas.
 Goals of sustainable economic development and generation of additional
employment opportunities by way of promoting entrepreneurship and
setting up of small rural industries.
 Providing training, sourcing of appropriate technology, micro-finance and
marketing.
 This will not only be a complete hand-holding support system, but also a
self-sustaining system for poverty alleviation through rural empowerment.
 Need of technological skills.
 This will gainfully employ the unemployed unskilled, semi-skilled or
skilled youth.
Type of credit for investment

Short term loan:


-for 18 months
- working capital loan given to industrial
establishments
- usually without any collateral security
Medium- term loans:
- for machinery etc
- investments involves lower amount of capital
- can repay in 5-8 years
Long term loans:
- For high investment purpose

- Collateral security is needed

- Can repay in 20 years


Commercial banks
 There are about 100 commercial banks.
 51,595 branches of which 40 % were rural
branches, semi urban 25 % and urban 19%,
and metropolitan branches 16%.
 40 % of the total advances must come from
rural areas
State cooperative banks
 Offer only short term loan
 Operate at state level with branches in rural
areas
 The share holders and members are from
district central cooperative banks
 It operates in district level and village level
 Financed by NABARD
State cooperative agricultural and
rural development banks

 Offer medium term and long term loans


 There 19 banks and 1219 branches
 Operating in village and district level
 There is no banking operations
Regional rural banks
 There are 196 RRB’s mainly to support
agriculture
 Also called as grameen banks
 There are 6 metropolitan, 348 urban, 1875
semi urban
CONCLUSION
As Bottom of the Pyramid Entrepreneurs are
more close to markets and have greater understanding
of consumers, they are often far more innovative in
developing products. They have been proved to be
better in preserving local culture and often are more
sensitive to environmental and ecological
considerations.
Growth of women
entrepreneurship
Recent trends of women
entrepreneurship
How to Develop women
entrepreneurship

By
Ms.Yashaswitha
Reg.No 0816119
Growth of Women
Entrepreneurship

Regarded as the “better half of the


society
Some facts

Women Men
• Literacy rate • Literacy rate
(55%) (77%)
• Work • Work
participation(28 participation(52
%) %)
• Women account for only
5.2% of the total self
employed persons in the
country.
• In India, Kerala is a state with
highest literacy (including
women literacy)
• Number of Women’s industrial
units in Kerala was 385 in 1981
and 782 in 1984
It was mainly due to
• proper education
• Financial, marketing and training
assistance by state government
• Desire for social recognition
One more state is Maharashtra
Recent trends in Women
Entrepreneurship

• Women are increasingly participating in all


spheres of activities
• The fact remains that women are excelling in
academics, politics, administration, business
and industry
• The share of women owned enterprises
in America is continuously rising
• 1975-85 was declared as the Decade for
Women by United Nations
• The Government of India is
assigning increasing importance to
the development of women
entrepreneurs
• The Sixth Five Year Plan is
proposed for promoting female
employment in women based
industries
In the Seventh Five Year Plan a
special chapter on Integration of
women in development was added
• To treat women as specific target
groups in all development
programmes
• To diversify vocational training
facilities to suit their needs
• To promote appropriate technology
to improve their efficiency and
productivity
• To provide assistance for
marketing their products
• To involve women in decision
making process
• Research has shown that women
owned firms comprise between
one-quarter and one-third of all the
businesses
How to develop Women
Entrepreneurship

• Women as specific target groups


for all developmental programmes
• Better educational facilities and
schemes from Government
• Adequate training programmes on
management skills
• Encouraging women participation
in decision making
• Vocational training to women
community with regard to
production process and production
management
• Skill development programmes in
women’s polytechnics and
industrial training institutes
• Training on professional
competence and leadership skills
• Training and counseling on large
scale to remove psychological fear
• Counseling through aid of
committed NGO’s, Psychologists,
Managerial experts and technical
personnel to existing and
emerging WE.
• Continuous monitoring and
improvement of training
programmes
• Making provision of marketing and
sales assistance from government
• State Financial Corporation and
Financial Institutions should
provide trade related finance
• The financial institutions should
provide more working capital
assistance
• Repeated gender sensitation programmes
to train financiers to treat women with
dignity and respect
• Infrastructure in the form of industrial plots
and sheds
• Industrial estates must provide marketing
outlets for the display and sale of products
made by women
• Women Entrepreneur’s Guidance
Cell
• District Industries Centres must
assist women in their trade
• Training in Entrepreneurial
attitudes at college level through
well designed courses
Conclusion
• Independence has brought promise of
equality of opportunity and laws
guaranteeing for their equal rights in
education and employment
• Unfortunately Government sponsored
development activities have benefited
only a small section of women. Majority
are still unaffected by change &
Development
Thank You

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