Date : 11/11/2023

Relevance:GS Paper 3- Economy- Rural Economy

Keywords:MSMEs, SHG, Start-up Village Entrepreneurship Programme (SVEP), Rural Migration

Context-

Rural entrepreneurship is a vital component of India's economic progress and growth, particularly in the context of rural enterprise development. These enterprises not only contribute to revenue generation but also act as drivers of social change at the grassroots level.

Status Of Rural Entrepreneurship:

• With over 63 million MSMEs in India, the majority being micro-enterprises, rural entrepreneurship holds significant potential. However, rural entrepreneurs face various challenges, ranging from societal biases and gender-based issues to a lack of business knowledge and essential skills.
• It is crucial to harness local resources effectively to promote prosperity and economic growth, leading to increased employment opportunities and reduced migration. To support rural entrepreneurs effectively, comprehensive resources, including manpower, capital, materials, machinery, and market understanding, must be made available.
• Rural enterprises can be categorized into proprietary ownership and group entrepreneurship, encompassing Self-Help Groups (SHGs), cooperatives, and producer companies, which, when successful, can attract investments, create local employment, foster partnerships, secure funding, and utilize idle savings for business growth.