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Last updateFri, 03 May 2013 10am

Back You are here: Home Human Resource Human Resource Entrepreneurship Rural Entrepreneurship

Rural Entrepreneurship

In simple words, rural entrepreneurship implies entrepreneurship emerging in rural areas. (or) rural entrepreneurship means rural industrialisation. Industrialisation cann’t originate (or) sustain without entrepreneurship whether rural (or) urban.

 Thus we can say, entrepreneurship precedes industrialisatio. Rural entrepreneurship is the only soluction to rural poverty and backwardness.

Rural industries are generally associated with agriculture. According to khadi and village industries commission (KVIC), ‘village industry (or) a rural industry means industry located in rural areas, population of which doesn’t exceed 10000 (or) such figure which produces any goods (or) renders any services with (or) without use of power and in which the fixed capital investment perhead of an artisan (or) a worker doesn’t exceed 1000 rupees’. As per the modified definition, an industry located in rural area, village (or) town with a population of 20000 and below and an investment of RS.3 crores in (plant and machinery, land and building) is classified as village industry.

Features of rural industry:

Agriculture and rural development are the main stay growth strategy. As far as meaning of rural industrialisation is concerned, there are conceptual difficulties in defining it as such. However, it is generally taken as a group of traditional industries like handloom, khadi, handicraft, sericulture and coir. All these are classified as rural industries although some of them like handloom, handicrafts, coir etc. are located in urban areas as well. A rural industry has following features:

  • Very low investment.
  • Low gestation period.
  • Use of traditional skills.
  • Decentralised production system.
  • Products are rither essential mass consumer goods (or) handicrafts.
  • Use of locally available raw-material (in a few cases).
  • Cater to limited markets.
  • Products are becoming popular in foreign markets for their unque nature and aesthetic nature.


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