UNIT 01

CAN I BECOME AN ENTREPRENEUR?

An entrepreneur is an individual who creates a new business, bearing most of the risks and
enjoying most of the rewards. The process of setting up a business is known as
entrepreneurship. The entrepreneur is commonly seen as an innovator, a source of new ideas,
goods, services, and business/or procedures. Entrepreneurs play a key role in any economy,
using the skills and initiative necessary to anticipate needs and bring good new ideas to market.
Entrepreneurship that proves to be successful in taking on the risks of creating a startup is
rewarded with profits, fame, and continued growth opportunities. Entrepreneurship that fails
results in losses and less prevalence in the markets for those involved.

In order to answer the question Can I become an entrepreneur? My answer for this question is
NO. Because, The Entrepreneur is the person one who is having the skills of decision making,
managerial skills, coordination, communication, etc...,

These are the various reasons I don’t want to become an entrepreneur:

Lack of a steady income

If you can’t imagine life without a steady income, do not become an entrepreneur. You will
not always have consistent or steady income, especially when you first start out as an
entrepreneur. If this is a problem for you, then becoming an entrepreneur will not be the optimal
career path for you. As an entrepreneur, income is oftentimes “feast or famine.” There is either
too much work to get it all done or there is not enough work to go around. Because of that,
there will be times when money is tight. If you cannot budget your finances and stretch a dollar
very far, working for yourself will not be a wise move.

Paid time off

If paid time off appeals to you, do not become an entrepreneur. Paid time off is certainly a perk
for working for a large business. For someone who has health issues and may be out of work
because of them, becoming an entrepreneur may not be a viable option. If you only get paid
when you work (theoretically), then you will need a job where you get paid time off.

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Insurance benefits

If you are someone who needs insurance for yourself or your family, such as health, vision,
dental, life insurance, etc., then becoming an entrepreneur may not work for you. While you
are able to purchase these types of insurance from private sources, they are generally very
expensive and often do not offer the coverage that you are accustomed to. I would suggest you
read through a policy carefully before you purchase private insurance. If you have a large
family, becoming an entrepreneur may not be feasible from an insurance standpoint.

Lack of motivation

When running your own business, there really is no telling when you will be rewarded or even
how you will be rewarded. You may hope for a bigger bank balance or aspire to develop an
industry-leading product, but that can’t happen without motivation and drive. Becoming an
entrepreneur essentially means taking risks in the hope of receiving a reward, but without ever
really knowing when the reward will come. If that’s something you can’t deal with, then
starting your own business is not the ideal choice.

Stress

If you can’t handle stress. Becoming an entrepreneur is extremely stressful from so many
different aspects; income (or lack of income), learning a new trade, hiring employees, learning
all the laws, rules and regulations that go along with your line of work. It can be extremely
overwhelming at times. If you are not a person who can roll with the punches, then becoming
an entrepreneur is going to be very difficult.

If you’re a perfectionist

If you are a perfectionist, becoming an entrepreneur probably is not the right fit for you. As an
entrepreneur, you oftentimes cannot wait until something is perfected before you launch it
(whether it’s a product, idea, etc.). You will always have time to tweak things as you go along.
Unfortunately, perfectionists do not like to present their work until it is polished, shined…and
well, perfect. Entrepreneurship deals a lot with flying by the seat of your pants and taking an
idea and running with it. There is not a lot of time for perfection. So, if you are someone who
has to do every “I” and cross every “T” then you will probably not have a lot of happiness as
an entrepreneur.

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You’re not a forward thinker

Entrepreneurs need to be forward thinking. If you are of the mindset that “this is the way we’ve
always done it,” then becoming an entrepreneur will be a hard transition for you. Entrepreneurs
are always looking towards the future to find a better way to accomplish tasks and being stuck
in the past will be counterproductive to your goals.

Weekends don't exist

"No days off" is a real thing. If you live for the weekend, entrepreneurship isn't for you. There's
no such thing as "checking out' at 5pm on Friday and "checking in' 9am on Monday. You never
checkout. Ever. This is your life — Every. Single. Day. What's the difference between a
Tuesday and Saturday for me? Not much. I don't believe in burning yourself out — that's not
beneficial to anyone ... but I do believe in always staying on top of things. I think about and
cater to my business 365 days a year. If you can't wrap your head around that concept, stay put
doing what you're doing.

You can’t manage ups and downs

A full-time job brings a steady paycheck, but entrepreneurship brings a roller coaster of money
and emotions. You’ll have great months when you close lots of sales and bring in lots of money,
and you’ll have bad months when you can’t make a sale. Success comes from being able to
manage your emotions and stay level-headed, no matter how well or poorly the business is
doing. If you can’t manage ups and downs, you shouldn’t be an entrepreneur.

Risk Of Failure

The problem with investing capital into a new business is that if the business tanks, you will
lose all that money. If you had to take out a bank loan, or a second mortgage, in order to come
by the money that you required, then you will have to find a way to pay that money back
without having a job or a business to assist you. But what can be even more damaging in the
sense that you failed, you weren’t good enough, you’re the idea was poorly received by peers.
Before you set off on your journey as an entrepreneur you should seriously consider whether
you are mentally resilient enough to cope with the possibility of failure.

These are the reasons I don’t want to become an entrepreneur. Even though at this current
situation there are lots and lots of entrepreneurs and companies. It is also one of the reasons I
don’t want to become an entrepreneur.

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 UNIT 02

INFOSYS ENTREPRENEURSHIP

INTRODUCTION

Established in 1981, Infosys is a NYSE listed global consulting and IT services company with
more than 346k employees. From a capital of US$250, we have grown to become a US$ 17.94
billion (LTM FY23 revenues) company with a market capitalization of approximately US$
75.39 billion. In our journey of over 40 years, we have catalysed some of the major changes
that have led to India's emergence as the global destination for software services talent. We
pioneered the Global Delivery Model and became the first IT Company from India to be listed
on NASDAQ. Our employee stock options program created some of India's first salaried
millionaires.

OUTLINE OF THE CASE STUDY

Infosys Limited is an Indian multinational information technology company that provides

business consulting, information technology and outsourcing services. The company was
founded in Pune and is headquartered in Bangalore. Infosys is the second-largest Indian IT
company, after Tata Consultancy Services, by 2020 revenue figures, and the 602nd largest
public company in the world, according to the Forbes Global 2000 ranking. On 24 August
2021, Infosys became the fourth Indian company to reach $100 billion in market capitalization.
In this case study analysis about the entrepreneurship and achievements of Infosys.

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ANALYSIS OF THE CASE STUDY
Beginning of Infosys
• Infosys Founder Narayana Murthy did not grow up with the most favourable
circumstances. The first focus for Murthy was education. He received his master's
degree from IIT, Kanpur and post that he started working at IIM, Ahmedabad.
However, soon after, Murthy decided to quit his 9-to5 job and embark on his
entrepreneurial journey in the IT sector. It was a brave choice for him at the time but it
worked out wonderfully well.
• The key role Narayana Murthy's wife, Sudha Murthy played in kickstarting Infosys in
1981, after quitting his job and borrowing Rs 10,000 from his wife, Murthy started
Infosys. In a span of only four years, the company grew into a tech giant and employed
over 2 lakh people, while also making Bangalore the IT hub of India. Not only did
Murthy taste sweet success with Infosys, he also created an array of jobs for IT
graduates.
• Narayana Murthy's return to Infosys in 2011, Narayana Murthy gave up his position of
the chairman at Infosys after serving for 30 years. However, he returned after two years,
in 2013 as the executive chairman and handed over management to Dr. Vishal Sikka.
In 2014, Murthy retired from his role of executive chairman and now acts as the
chairman emeritus.

Products and services of Infosys

NIA – Next Generation Integrated AI Platform
Infosys Consulting – a global management consulting service
Cloud-based enterprise transformation services
Infosys Information Platform (IIP) – Analytics platform
Edge Verve Systems which include Finacle, a global banking platform
Panaya Cloud Suite
Engineering Services
Digital Marketing
Skava – now rebranded as Infosys Equinox

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Achievements of Infosys
• Crossed a milestone of Rs. 100000 crores in revenue in FY21.
• Infosys announces Canadian expansion to Calgary, doubling Canadian workforce to
4000 by 2023.
• Infosys recognized as one of World's Most Ethical Companies by Ethisphere Institute.
• Infosys recognized as a Global Top Employer 2021 by the Top Employer Institute.
• Infosys recognized as the Fastest Growing Top 10 IT Services Brand by Brand Finance.
• Infosys launched Infosys Cortex, its AI-first, Cloud-first customer engagement
platform.

Developments of Infosys
• Infosys has eleven development centres located across the country - Bangalore,
Bhubaneswar, Chennai, Mangalore, and Pune.
• Well known for HR practices. Infosys are envisioned by its founders and the culture
that has been predominant over the year.
• Though Infosys grew to cross to touch $100 billion m-cap, still retained the same
culture and high values.
• Infosys Rated Amongst World's Best in Employee Training and Development.
• Infosys announced the launch of the Milken Institute and Infosys report ‘Future of
Work: Insights for 2021 and Beyond’.

Approach to tackle the challenges

Relevance to clients
Anticipating client’s needs in advance.
Delivering superior value
• Adding new clients, and developing more projects for existing ones.
• Moving from mere project development to design work.
• Addressing the needs of the client’s business unit and not just its IT department.
• Building relationships on the client side with important stakeholders through increased
domain knowledge.

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Talent Enhancement
• Integration of IT capabilities with strategic expertise, and business management.
• The Global Education Centre in Mysore dedicatedly equipped and trained 4,500
employees at a time.
• Bifurcation into vertical business units (who handled specific regions and industries)
and enterprise capability units (which handled specific processes) resulted in greater
specialisation.
Client Intimacy
• 50 Global Development Centres in 9 countries. (25 Proximity DCs and 25 Offshore
DCs).
• Onsite teams captured customer’s business problem, and directed the offshore teams
for targeted business solution development.
• Brought about reduction in delivery time, and maximised support availability round the
clock. Reduction of delivery cycle time by 50%.
• Early defect detection, and consequential reduction in cost.
Relationship Enhancement
• Hunters (Sales Personnel) brought in new clients.
• Gatherers (Engagement Managers) widened project scope.
• Account Managers developed solutions.
• Delivery Manager coordinated the execution.
Trust based partnership
• The ITRAC (Infosys as a Trusted Advisor to Clients) program managed key accounts
to transformational partnerships.
• Through its 3 stages of
Providing cost reduced IT services
Delivering technology-driven solutions for specific processes
Transforming client organisation
• Leveraged the GDM and Consulting wing, to help increase client revenues/enhance
profitability.

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SWOT Analysis of Infosys
Strengths
Infosys’ fundamental strengths are its 119 development centres which can be placed in India,
in which enthusiastic and skilful technical experts are hired at a low fee as exertion value is
decreasing in India as compared to different developed international locations. Infosys gives a
diffusion of stop to quit enabled software program development and consultancy services to
organizations which allows them to attract companies of different sectors. Strategic
collaborations with HP, IBM, Microsoft, and Amazon permits Infosys to offer progressive and
collaborative solutions
Weaknesses
Most of the personnel of Infosys go away to the organization for better possibilities and better
training which affects their picture. Many of the operations of the business enterprise are
carried out in like Europe which creates instability and vulnerability in their domestic India.
Opportunities
The want for cloud-based answers is increasing globally, Infosys can tap this market to their
advantage. Worldwide spending on virtual transformational technologies is predicted to
develop. So, there are chances for Infosys to regain its strength in the IT market.
Threats
Infosys is dealing with extreme opposition with rival consultancy organizations like Accenture,
Oracle, Capgemini, and TCS. This leads to pricing strain with a purpose to advantage a
competitive advantage.

CONCLUSION
Infosys specializes in innovative digital strategies to make precise choices to enhance its
performance with the intention to obtain its dreams. The company additionally intends to
increase its group of workers. Digital exertions control, technique re-engineering, skills, and
cost chain sharing innovation–those are destiny outsourcing opportunities. This case study
makes us to understand about the Infosys developments, Achievements, SWOT Analysis. This
analysis helps to know about the brief detail about the Infosys.

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 UNIT 03

SMALL SCALE INDUSTRIES BOARD (SSIB)

INTRODUCTION

Essentially the small-scale industries are generally comprised of those industries which
manufacture, produce and render services with the help of small machines and less manpower.
These enterprises must fall under the guidelines, set by the Government of India. The SSIs are
the lifeline of the economy, especially in developing countries like India. These industries are
generally labor-intensive, and hence they play an important role in the creation of employment.
SSIs are a crucial sector of the economy both from a financial and social point of view, as they
help with the per capita income and resource utilization in the economy.

OBJECTIVES OF SMALL-SCALE INDUSTRIES

The objectives of the small-scale industries are:

1) To create more employment opportunities

2) To help develop the rural and less developed regions of the economy
3) To reduce regional imbalances
4) To ensure optimum utilization of unexploited resources of the country
5) To improve the standard of living of people
6) To ensure equal distribution of income and wealth
7) To solve the unemployment problem
8) To attain self-reliance

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ADVANTAGES OF SMALL-SCALE INDUSTRIES

The advantages of a small-scale business are as follows:

1) Close supervision
2) Greater employment
3) Only a small amount of capital is needed
4) Direct relation between the customers and employees
5) Easy management
6) Freedom of work
7) Fewer possibilities of lockouts and strikes
8) External Economies

DISADVANTAGES OF SMALL-SCALE INDUSTRIES

The disadvantages of small-scale business are as follows:

1) Less scope for machinery

2) Less scope for division of labour
3) Lack of research and experimentation
4) High overhead costs
5) Less wages to workers
6) Lack of Modernization
7) Low competitiveness
8) Lack of pollution control

TYPES OF SMALL-SCALE INDUSTRIES

SSI are primarily categorized into 3 types, based on the nature of work carried out, which are
as follows:

Manufacturing Industries

The manufacturing industries manufacture finished goods for consumption or used further in
processing. Some examples of such SSIs are food processing units, power looms, engineering
units, etc.

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Ancillary Industries

Ancillary industries manufacture components for other manufacturers. These manufacturers

then assemble the final product. Big companies manufacture finished goods, but they do not
generally make all the parts themselves. The vendors of such big companies are ancillary
industries.

Service Industries

Service-based industries are not involved in any kind of manufacturing products. They provide
services such as repair, maintenance and upkeep of the products after-sales.

ADMINISTRATIVE BODIES OF SMALL-SCALE INDUSTRIES

Several administrative bodies were established under the Ministry of Small-Scale Industries
and the Ministry of Agro and Rural Industries to help sustain and encourage SSIs. However,
after these two Ministries merged into the Ministry of MSME, all of the SSIs are administered
by the Ministry of MSME. The following are the government administrative bodies that are
operating under the Ministry of MSMEs to provide help to the SSIs:

• Office of Development Commissioner (MSME)

• Khadi Village Industries Commission (KVIC)
• Coir Board
• National Small Industries Corporation Limited (NSIC)
• National Institute for Micro, Small and Medium Enterprises (NIMSME)

ELIGIBILITY CRITERIA OF SSI REGISTRATION

SSI registration can be obtained for enterprises that are considered as micro and small
enterprises under the MSME Act, 2006.

A micro enterprise is an enterprise whose investment in plant, machinery and equipment does
not exceed Rs.1 crore, and turnover does not exceed Rs.5 crore.

A small enterprise is an enterprise whose investment in plant, machinery and equipment does
not exceed Rs.10 crore, and turnover does not exceed Rs.50 crore.

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ROLE OF SSI IN INDIAN ECONOMY

Employment

SSIs are a major source of employment for developing countries like India. Because of the
limited technology and resource availability, they tend to use labour and manpower for their
production activities.

Total Production

These enterprises account for almost 40% of the total production of goods and services in India.
They are one of the main reasons for the growth and strengthening of the economy.

Make in India

SSIs are the best examples for the Make in India initiative. They focus on the mission to
manufacture in India and sell the products worldwide. This also helps create more demands
from all over the world.

Export Contribution

India’s export industry majorly relies on these small industries for their growth and
development. Nearly half of the goods that are exported from India are manufactured or
produced by these industries.

Public Welfare

These industries have an opportunity to earn wealth and create employment. SSIs are also
important for the social growth and development of our country.

Seedbed for Large Scale Industries

SSI acts as the seedbed for Large Scale Industries (LSI) as it provides conducive conditions for
the development and growth of entrepreneurs. Small enterprises require low investment and
simple technology and use local resources to meet local demands through personal contacts.
Thus, it creates scope for the growth and development of LSI.

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 UNIT 04

PROJECT PROPOSAL REPORT ON CHOCOLATE COMPANY

If I were asked to create idea generation and starting a business my all-time wish is to start a
chocolate manufacturing company. My wish is to start a chocolate manufacturing company
because when I was celebrating my Birthday on 2019 with my parents, family and friends. My
birthday was more interesting and enjoyable. More tasty foods and snacks are been prepared
and the main thing for the birthday is cake and chocolate. Everything the cake, dinner, snacks
tastes are awesome. But on that day, I was disappointed with that chocolate taste and I was
more expecting for the chocolate taste. On that day a small idea came out from my thought is
that we can start a chocolate manufacturing company. From that I has a plan to start a chocolate
manufacturing company. This project proposal report is the based on the inspiration of my
business idea.

MISSION

• The main mission of the company is to manufacture a tasty and healthy chocolate which
should satisfy all customers without any disappointment.
• To establish various types of chocolates with different flavors.
• The chocolates should easily available to all customers.

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VISION

• The huge vision of the company is to make a strong brand in the chocolate industry.
• The company should never compromise on the quality of the product at any cause.

OBJECTIVES OF THE COMPANY

• Manufacturing the chocolate tastier and healthier unique from the chocolate industry.
• The chocolate products should be in a reasonable price to the customers than other
markets.
• To create more physical stores available for the customers and my company will also
be in online orders for customers those who are not in a nearby location to the physical
stores.

BUSINESS MODEL

My business model is more unique, and it will attract more customers to buy my chocolates.
My brand will focus more on its texture, taste, manufacturing process and the ingredients used
to make the chocolate. The way I manufacture is unique and healthy while comparing with
other brands products. By this my chocolate brand will attract more customers and even though.
My chocolate price is lesser than the competitive chocolate brands.

GOOD VALUE

My chocolate brand manufactures chocolate healthier than another competitor’s brand. How
my chocolate is healthier? The process we do is on coco seeds and add natural ingredients.
For example: we make vanilla beans for infusing vanilla flavor in chocolates, my aim on my
Chocolate is less sugar content. My company has lots and lots of flavors to satisfy the
customer’s taste. This makes more customers retention and loyal customers to our chocolate
brand. My company will make a unique position in the chocolate industry world.

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PROJECT DESCRIPTION

Name of the company : Choco Del

Line of Activity : Manufacturing

Products : Chocolate

New/Expansion/Modernization : New

Constitution : Proprietor

Name of the proprietor : Sanjai Nanmugan K R

Registered address : KK Nagar, Tirupur.

Site Location : KK Nagar, Tirupur.

Cost of the Project : 5,00,00,000

Own Contribution : 1,50,00,000

Promoters Contribution : 2,50,00,000

Loan from bank : 10,000,000

Facilities required : Business loan

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TOTAL PROJECT COST

S.NO PARTICULARS AMOUNT (Rs)

01. Cost for a manufacturing unit 90,00,000

setup

02. Cost of a chocolate 1,50,00,000

manufacturing machine

03. Cost of a raw materials 1,00,00,000

04. Cost for transferring the 1,00,00,000

chocolates from the
manufacturing unit (Vehicles
like refrigerated truck, lorry)

05. Creating Website 10,00,000

06. Miscellaneous 50,00,000

TOTAL PROJECT AMOUNT = 5,00,00,000

COMPETITIVE OFFERINGS

So, if you took competitor Cadbury, Nestle, Parle, Amul these are the brands which are
competition for my business if u see my competitors they ultimately focus on money and
advertising the products. As well as my competitors’ products’ price are higher while
comparing with my chocolate brand. So, my chocolate brand will produce healthy chocolates,
more flavors, less price, acquiring more loyal customers and has huge market and customer
base.

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SALES PROJECTIONS

The statement showing expected revenue for Choco Del chocolate manufacturing company are
as follows:
EXPECTED SALES IN YEAR NO. OF UNITS
Expected sales in a normal season 10,00,000
Expected sales in a most demand season 15,00,000
Expected sales in an average season 8,00,000

INDIA CHOCOLATE MARKET

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CHOCOLATE MANUFACTURING PROCESS

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 UNIT 05

RURAL ENTREPRENEURSHIP

RURAL ENTREPRENEURSHIP

Rural entrepreneurship is a term that relates to the establishment of new business units and
industries in rural areas. It involves carrying out entrepreneurship activities in the rural
economy which results in the overall development of the nation. Rural entrepreneurship has its
root lying in non-urban areas and has a lot of potential for undertaking numerous endeavors in
business, industry, agriculture, etc. Generally, industries and business enterprises in rural areas
are involved in agriculture and its allied activities. These activities support the livelihood of
the majority of the population living in rural areas.

TYPES OF RURAL ENTREPRENEURSHIP

Rural entrepreneurship is a powerful means of rural economic development. It is very

important for a country like Nepal where the majority of the people live in rural areas. The
development of the country cannot be imagined without the development of rural areas. Rural
entrepreneurship takes various forms as mentioned below.

1. Farm entrepreneurship

Farm entrepreneurship is related to farming. It involves various agricultural activities for

earning a livelihood.

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2. Artisan entrepreneurship

It includes masonry, black-smithy, carpentry, repair of pump-sets, art, board painting, etc.

3. Merchants and traders

It includes businessmen dealing with the products mainly needed by the local population. They
may be producing goods themselves or acting as middlemen.

4. Tribal entrepreneurship

Tribal entrepreneurs belong to those who operate predominantly in tribal villages. Their source
of origin is the tribal community.

IMPORTANCE OF RURAL ENTREPRENEURSHIP

Employment generation

Rural industries are labor-intensive. Hence, they are important in generating employment in
rural areas.

Income generation

Rural industries create employment and self-employment. It helps to generate income for the
rural people. It further reduces the income gap between the rural and urban populations.

Balanced regional development

Rural entrepreneurship promotes entrepreneurship in rural areas. This helps to have a balanced
regional development. This is rather more important to a country like Nepal where the majority
of the people live in rural areas.

Promotion of culture

The industries in the rural areas are traditional. They are based on rural culture and traditional
technology. Hence, they help to promote art and culture.

Reduction of rural-urban migration

With the development of rural entrepreneurship, the independence of the rural people increases.
It reduces rural-urban migration. It also helps the city areas to grow better.

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Environment friendly

Since rural industries take small forms and are based on rural technology, they are
environmentally friendly. Unlike urban industries, they emit less smoke and wastage. This
results in the promotion of the environment.

Utilization of idle capital

Rural entrepreneurs raise finance from the scattered sources and use them for entrepreneurship
development. Hence, rural entrepreneurship is important to use the idle capital in the rural area.

Utilization of local resources

Rural entrepreneurs mainly depend on local resources. It helps to develop the rural economy.

PROBLEMS FACED BY RURAL ENTREPRENEURSHIP

Rural entrepreneurship is based on rural factors of production. It suffers from a number of

problems. Some of them are:

1. Financial problems

Rural entrepreneurship is largely found to suffer from financial problems. It is normally carried
with family or personal savings which may not be sufficient for carrying business activities.
Rural entrepreneurs borrow funds from their relatives or from informal sources. It hinders rural
entrepreneurship to grow and prosper. As per the latest Rural Credit Survey, it is estimated that
the institutional sector meets the only % of the demand for credit from the entire rural sector.
There is a gap between the demand and supply of rural credit in Nepal.

2. Lack of technological know-how

Technology has become an integral part of entrepreneurship. It helps to reduce cost and
enhance quality. However, rural enterprises use labor-based or obsolete technology. The rural
entrepreneurs also lack proper knowledge about technology to be used. All these negatively
affect the growth and development of rural entrepreneurship.

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3. Lack of awareness

One of the major problems faced by rural entrepreneurship is a lack of awareness and
knowledge about the importance of developing industries in rural areas. Rural people are not
interested in building their careers as entrepreneurs.

4. Prone to salaried employment

Rural people are found to be more interested in salaried employment because of assured
income, lesser time, a lesser degree of responsibility, etc. This is further supported by the high
status of the salaried people than the self-employed people. This has adversely affected rural
entrepreneurship.

5. Poor infrastructure facilities

Infrastructure facilities include transport, communication, security facilities, etc. A transport

facility is needed for the entrepreneur for distributing their output. Communication facility
brings effectiveness in the entrepreneurial development, Security is also very important to run
a business smoothly, However, rural entrepreneurs lack such facilities.

6. Low-risk bearing capacity

Rural entrepreneurs have a low risk-bearing ability; Hence, they are always fearful of investing
in a business. This has adversely affected the entrepreneurial growth in rural areas.

7. Low purchasing power of the people

The purchasing power of the rural consumer is lower compared to the urban consumers. It
hinders the market performance of the rural business, it further affects rural entrepreneurship
adversely,

8. Competition

Rural entrepreneurs face’ tough competition from large organizations and urban entrepreneurs.
They cannot compete with them on grounds of economies of scale, product
quality, and marketing.

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FACTORS AFFECTING RURAL ENTREPRENEURSHIP

Rural entrepreneurship is very important for the development of a rural economy. It promotes
rural industrialization and employment generation. For a country like Nepal where a majority
of the people live in rural areas, rural entrepreneurship is very important for the overall
development of the country, there are a number of factors that affect rural entrepreneurship.
They are mentioned below.

1. Availability of capital

Capital is the most important factor that determines the development of entrepreneurship in
rural areas. Easy availability of short as well as long-term capital promotes rural
entrepreneurship.

2. Availability of raw material

The raw material is the basic input in the production process. Hence, it plays a vital role in the
promotion of rural entrepreneurship. For this, the raw material base should be strengthened in
the villages.

3. Institutional support

Rural entrepreneurship can be promoted by institutional support by governmental as well as

non-governmental institutions. They can support capital as well as other aspects of
entrepreneurship to support the rural entrepreneurs.

4. Training and education

Rural entrepreneurship can be promoted through training and education. Training helps to
develop entrepreneurial skills. Education at the school and college level develops an
entrepreneurial attitude among the local masses.

5. Public awareness

For the development of rural entrepreneurship, awareness should be created among the rural
people regarding the importance of developing industries in rural areas. They should be
motivated to build their career as entrepreneurs.

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6. Development of infrastructure facilities

Infrastructure facilities include transport, communication, security facilities, etc. The

development of infrastructural facilities attracts rural people towards entrepreneurship.

NEED FOR RURAL ENTREPRENEURSHIP

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