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Entrepreneurship and Rural development

Chapter · January 2016

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Shubhada Mohan Kulkarni Parag Arun Narkhede

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Dr Shubhada Mohan Kulkarni Dr Parag Arun Narkhede

KCES’s Institute of Management and Research KCES’s Institute of Management and Research

Jalgaon. Jalgaon.

[email protected] [email protected]

Abstract: Rural development is more than ever before connected to entrepreneurship. Entrepreneurship is

an important driver of economic growth, productivity, innovation, and job creation, and as a key aspect of

economic dynamism. Rural entrepreneurship is generally defined as “entrepreneurship emerging at village

level which can take place in a variety of fields of endeavor such as business, industry, agriculture and acts

as a potent factor for economic development”. MCED helps development of entrepreneurship among rural

population. Training in Jalgaon district was studied. In the year 2015-16, out of total 171 participants in the

six programmes, 131 women) and 40 men benefitted from EDP. Maximum participants (74) were 10th pass,

followed by 12th pass (72). Majority participants were OBC (93), followed by ST (42) and SC (39).11

participants were from general category. It empowers those sections of society who were traditionally

denied equal opportunities. Overall feedback is very positive.

Key words: Rural, Entrepreneurship, Training, Jalgaon,MCED

Introduction

India is a country of villages. About three-fourth of India's population are living in rural areas out of which

75% of the labor force is still earning its livelihood from agriculture and its allied activities. Land being

limited is unable to absorb the labor force in agriculture. Mahatma Gandhi rightly said “The future of India

lies in its villages”. Therefore, there is a need to develop rural industries to solve rural unemployment and

rural migration to cities. Rural development is more than ever before connected to entrepreneurship.

Institutions and individuals promoting rural development now see entrepreneurship as a strategic

development intervention that could increase the rural development process. Entrepreneurship is

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increasingly recognized as an important driver of economic growth, productivity, innovation, and job

creation, and as a key aspect of economic dynamism(Karimi, 2015). Growth and development of rural

economy is an essential pre-condition to development of the nation as a whole. The gap between rural

urban disparities should be lessened. The standard of living of the rural people should be increased.

Entrepreneurship in rural sector provides an answer to the above problems. Due to this positive impact of

entrepreneurship, many developing countries around the world, including India, are paying serious

attention to entrepreneurship as a potentially fundamental solution to various problems. The Prime Minister

of India has launched standup and startup India Scheme in order to promote the Entrepreneurship. In an

effort to support rural entrepreneurs of India, the Centre would think of giving loans under the Micro Units

Development and Refinance Agency (MUDRA) Yojana of the Prime Minister Narendra Modi(Singh,

2015).

Rural Entrepreneurship

The entrepreneurship has been regarded as an important factor of social and economic change since 1960;

however, the phenomenon appeared in economics in early 1930s. For more than a decade the studies of

entrepreneurship confined to large scale businesses and industry, and to small scale industrial sector. Lately

this phenomenon percolated to artisans and farmers, the two major forces of rural transformation(Sharma,

Vandana, Rajni, & Ranchan, 2013). Rural entrepreneurs are those who carry out entrepreneurial activities

by establishing industrial and business units in the rural sector of the economy. In other words, establishing

industrial and business units in the rural areas refers to rural entrepreneurship.

The concept of rural entrepreneurship does not dilute the definition of entrepreneur in general(Sharma,

Vandana, Rajni, & Ranchan, 2013). An entrepreneur can be defined as a person who fails to conform to the

traditional structured role given to him in the society and finds an exit to venture on his own (Bhanshali,

1987). In the context of his deviant pursuit, the societal frame of reference of a rural entrepreneur assumes

operational significance. Rural entrepreneurship is generally defined as “entrepreneurship emerging at

village level which can take place in a variety of fields of endeavor such as business, industry, agriculture

and acts as a potent factor for economic development” Development of rural areas, has been linked to

entrepreneurship more than ever before. The emerging entrepreneurship in the rural areas across the

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country is termed to be rural entrepreneurship which implies rural industrialization. It tends to cater the

rural needs such as income generation, employment generation, rural development, infrastructure

upgradation, and restricting rural urban migration. Entrepreneurship is now regarded as a strategic

development intervention that could accelerate the rural development process by institutions and

individuals promoting rural development. The majority of the rural population depends, directly and

indirectly, on agriculture, fishery, animal husbandry or rural wage labour associated with plantations and

ranches, along with ancillary activities linked to rural townships. Rural entrepreneurship development

strategies aim at diversifying rural economic activities, which include the development of non-farm

economic activities and facilitating the transition of informal activities into the formal growth sector.(Das,

2014)

MCED and its contribution

Maharashtra Centre for Entrepreneurship Development is an autonomous society working under

Directorate of Industries, Government of Maharashtra since 1988 with a vision “To create & develop spirit

of Entrepreneurship globally. MCED has been a pioneer in espousing social and economic

entrepreneurship since 1988. It is a training institute in the core area of entrepreneurship development. It

works as a facilitator and guide for the creation and cultivation of the entrepreneurial spirit and the concept

of ‘self-employment’ in a nation that is largely driven by third party employment.

At MCED, there is always the hummable buzz of people discussing, brainstorming, making plans and

revamping shelved ideas. The thrum of work and the exciting buzz of activity is an indelible part of the

work culture. MCED is also an incredibly technology savvy organization which, not surprisingly, is

amongst the few offices to enforce the paperless office concept. This relaxed and fertile office environment

has been nurtured by the lack of a formal overseer as is the case in other organizations. The Governing

Council is the policy making authority of this premier organization and Executive Committee is looking

after day-to-day administration of the Centre. Let us look at the training imparted and its penetration to

grass root levels in this context.

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Research Methodology

Secondary data was collected from various sources. Personal interviews were conducted to understand how

MCED helps development of entrepreneurship among rural population. For this purpose we selected

Jalgaon district as sample. District Industrial Center (DIC), Jalgaon was visited to gather data about training

programmes conducted by them. The time span under study was trainings conducted in last one year.

Findings

Entrepreneurship Development Training will be organized in following way during 2015-16

A. MITCON, Jalgaon: General For 1 month

No Programme Location District Duration Participants

Description

1 Banana Processing Raver Raver 2/11/2015 to 8/12/2015 30

2 Food and Bakery Jamner Jamner 3/11/2015 to9/12/2015 30

3 Bakery/ Milk and Bhusawal Bhusawal 16/10/2015 to 21/11/2015 30

Foof processing

4 Preparing ropes Nashirabad Jalgaon 17/10/2015 to 24/11/2015 25

5 Readymade Muktainagar Muktainagar 19/10/2015 to 17/12/2015 30

Garments

6 Banana Processing Yawal Yawal 26/10/2015 to 3/12/2015 30

7 Milk Processing Bodwad Bodwad 23/10/2015 to 1/12/2015 30

8 Silver article Jalgaon Jalgaon 19/10/2015 to 27/12/2015 30

manufacturing

B. MITCON, Jalgaon special group-2 months

No Programme Description Location District Duration Participants

1 Readymade Garments Bahadarpur Parola 28/10/2015 to 5/12/2015 21

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C. MITCON, Jalgaon OTSP 1 month

No Programme Description Location District Duration Participants

1 Banana Processing and Banana Fiber Yawal Yawal 19/10/2015 to 7/12/2015 30

2. A MCED, Jalgaon General 1 month * 2 months

No Programme Description Location District Duration Participants

1 Paper product and Cloth Erandol Erandol 5/11/2015 to 25

bags 10/12/2015

2 Milk Processing Bhoras Chalisgaon 17/10/2015 to 30

2301/11/2015

3 Imitation jewelry and Bhadgaon Bhadgaon 15/10/2015 to 30

Jardosi work 20/11/2015

4 Spice manufacturing Pachora Pachora 19/11/2015 to 30

18/12/2015

5 Readymade Garments Dharangaon Dharangaon 20/10/2015 to 30

23/12/2015 *

6 Satranji & Zorya Kasoda Erandol 17/11/2015 to 30

manufacturing 16/12/2015

7 Milk Processing Hated Chopda 17/11/2015 to 30

16/12/2015

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2. B MCED, Jalgaon, Special Group, 1 month* 2 months

No Programme Description Location District Duration Participants

1 Waste plastic material KCE college Jalgaon 23/10/2015 to 25

processing 30/11/2015

2 Leather and rubber Amalner Amalner 24/10/2015 to 26

articles manufacturing 28/12/2015*

3 Paper and cloths bag KCE college Jalgaon 24/11/2015 to 22

manufacturing 27/12/2015

2. C MCED, Jalgaon, TSP, 1month

No Programme Description Location District Duration Participants

1 Banana Processing and Pal Raver 21/11/2015 to 30

Banana Fiber 20/12/2015

The criteria for selecting participants in the EDP was that participants should be from Jalgaon district and

they should not have been beneficiary of similar programme in the past. Stipend of Rs 1000/- PM is paid to

participants as incentive. It is a Non-residential programme and candidates were selected through oral

interviews. Information about the training is shared through personnel contacts with villages. Classroom

teaching is supported with practicals and field visits are also arranged during the training programme.

Reading material and writing material is provided to participants. Guidance to participants about loan

schemes, project report and loan proposal is provided by experts. Positive report by industries inspector

about conducting the training is received. Very positive feedback is given by participants about training

received by them.

In the year 2015-16, District Industrial Center (DIC), Jalgaon conducted Free Entrepreneurship

Development Programme sponsored by DIC, Jalgaon and organized by MITCON Self employment Center,

Jalgaon as follows:

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1. Banana Processing (Keli Prakriya) Sponsored by DIC, Jalgaon at Raver

Organized by MITCON at Jalgaon during4/11/2015 to 11/12/2015

Details of selection: Applications sold were 65, the applications received were 49, No of candidates

appeared for interview was 36 out of which 30 were selected

Total sessions conducted were 120 and out of these sessions 18 were handled by in house faculty and 102

sessions were conducted by guest faculty.

All women participants

2.Silver article manufacturing Sponsored by DIC, Jalgaon

Organized by MITCON at Jalgaon during 23/10/2015 to 28/11/2015

Details of selection: Applications sold were 56, the applications received were 45, No of candidates

appeared for interview was 35 out of which 30 were selected

Total sessions conducted was 100 and out of these sessions 18 were handled by in house faculty and 82

sessions were conducted by guest faculty.

All male participants

3.Kela Prakriya & Banana Fiber at Yawal

Organized during 2/11/2015 to 8/12/2015

Applications sold were 75 out of which 70 applications were received for obtaining training. 65 candidates

appeared for an interview out of which 30 were selected.

Out of total 120 sessions conducted, 18 were handled by the in house faculty and 102 sessions were held by

guest faculty.

The training was organized under OTSP only for women.

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4.Readymade Garments: Muktainagar

Organized during 23/11/2015 to 28/12/2015

Applications sold were 60, out of which 55 applications were received. 50 candidates appeared for the

interview and 30 were selected from these.

120 sessions were conducted out of which 18 were by in house faculty and 82 were by guest faculty.

All women participants

5. Keli Prakriya: Yawal

Organized during 23/11/2015 to 28/12/2015

Applications sold were 70 out of which 65 were received. From amongst 50 candidates who appeared for

an interview, 30 were selected.

Total sessions conducted were 100, out of these 18 were handled by in house faculty and 82 were by the

guest faculty.

All women participants

6.Readymade Garments: Bahadarpur

Organised during 17/11/2015 to 19/01/2016, 2 months Special component Plan (SCP)

60 applications were sold out of which 55 were received. 50 candidates appeared for the interview and 21

got selected.

120 sessions were conducted out of which 18 were by in house faculty and 102 were by guest faculty.

Both male and female participants

Data Analysis and Interpretation

1.Gender: Out of total 171 participants in the six programmes, majority is of women (131) and only 40 men

benefitted from these programmes. Out of six programmes 4 were only for women participants and only

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one was particularly for men. One was mixed i. e. both men and women were selected to participate. This

shows clear positive bias towards women empowerment through such training.

140

120

100

80

60 Series1

40

20

0
Women Men

2.Educational Background of participants :Maximum participants (74) were 10th pass, followed by 12th pass

(72), 8 participants had less than 10th education. 5 participants were from SY BSc and 10 were graduate.

Only 2 participants had Post Graduate degree.

80

70

60

50

40
Series1
30

20

10

0
12th 10th Graduate PG Upto 10th SYBSc

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3. Category:Maximum participants were OBC (93), followed by ST (42) and SC (39).11 participants were

from general category and only one Muslim participant benefitted from these programmes. The special

programmes cover special groups that help in inclusive growth of all sections of the society.

100
90
80
70
60
50
Series1
40
30
20
10
0
OBC ST SC General Muslim

Conclusion

The contribution of such Entrepreneurship Development Programmes is very positive on development of

rural areas. This helps in creating inclusive growth and thereby sustainable and balanced growth of the

economy. It provides opportunities for economic development and creates demand for various products and

services in the rural markets. It empowers those sections of society who were traditionally denied equal

opportunities. Self esteem and self worth is positively affected of these participants which has impact on

better family and community relationships. This leads to welcome change from the society point of view.

Effective implementation of such programmes can be the key towards a better tomorrow.

References

Bhanshali, S. (1987). Entrepreneurship Development (1 ed.). New Delhi: Himalaya Publishing House.

Das, D. C. (2014). Prospects and Challenges of Rural Entrepreneurship Development in NER-A Study.

International Journal of Humanities & Social Science Studies (IJHSSS) , I (III), 178-182.

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 Karimi, S. (2015). Rural entrepreneurship: chalanges and opportunities. Journal of Entrepreneurship in

Agriculture , 1 (3), 101-119.

Santhi, N., & Kumar, S. R. (2011). Entrepreneurship Challenges and Opportunities in India. Bonfring

International Journal of Industrial Engineering and Management Science , 1 (Special Issue), 14-16.

Saxena, S. (2012). Problems Faced By Rural Entrepreneurs And Remedies To Solve It. IOSR Journal of

Business and Management (IOSRJBM) , 3 (1), 23-29.

Sharma, M., Vandana, C., Rajni, B., & Ranchan, C. (2013). Rural Entrepreneurship in Developing

Countries: Challenges, Problems and Performance Appraisal. Global Journal of Management and Business

Studies , 3 (9), 1035-1040.

Singh, S. R. (2015). Centre to support rural entrepreneurs under MUDRA. Retrieved 05 13, 2016, from

http://www.thehindubusinessline.com/economy/centre-to-support-rural-entrepreneurs-under-

mudra/article7952667.ece

wahid, M., Abdurahuf, & pal, S. (n.d.). Rural Entrepreneurship in India: Challenges and problems.

Retrieved 5 13, 2016, from tmimtjournal.org/pdf/poceddings/track4/track4_paper2.pdf

www.mced.nic.in

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