Rural Entrepreneurship can simply be defined as entrepreneurship emerging in rural-areas is rural entrepreneurship, In other words, establishing industrial units in rural areas refers to rural entrepreneurship. Rural entrepreneurship implies rural industrialization. Rural industries are generally associated with agriculture.
According to Khaidi and Village Industries Commission (KVIC): “Village industry or rural industry means any industry located in rural area, population of which does not exceed 10,000 or such other figure which produces any goods or renders any services with or without use of power and in which the fixed capital investment per head of an artisan or a worker does not exceed a thousand rupees”.
All the village industries have been grouped into seven major categories as follows.
i) Mineral – based industry
ii) Forest-based industry
iii) Agro-based industrial
iv) Polymer and chemical – based industry
v) Engineering and Non – conventional Industry
vi) Textile industry (including khadi) and
vii) Service industry
Need for Rural Entrepreneurship: The need for rural entrepreneurship for developing industries in the rural areas is inspiring with the multiplicity of justification as listed below.
1. Rural industries being labour intensive have high potential in employment generation. Thus, they serve as a cure to the widespread problems of disguised unemployment or underemployment follow the rural territory.
2. By providing employment, these industries have also a high potential for income generation in rural areas. These thus help in reducing disparities in income between rural and urban areas.
3. These industries encourage dispersal of economic activities in rural areas and thus, promote balanced regional development
4. Development of industries in the rural areas also helps build up village republics.
5. Rural industries also help protect and promote art and creativity i.e., the age-old rich heritage of the country.
6. Rural industrialization fosters economic development in rural areas. This control rural-urban migration on the one hand and also lessens the disproportionate growth in the cities reduces the growth of slums. Social tensions and atmospheric pollution on the other
7. Rural industries being environment-friendly lead to development without destruction, i.e., the most essential of the time.