Study on Rural Entrepreneurship in Cuddalore District Essay Example

collaborators. Entrepreneurs are seen as the driving force behind economic development, with their main role being to innovate and introduce new combinations, known as enterprises. The individuals who carry out these enterprises are referred to as entrepreneurs (Schumpeter, 1934).

The entrepreneurs are decision-makers and have the role of determining the level of employment in an industrial firm (Keynes, 1936). They display characteristics such as innovation, risk-taking, and decision-making (Diamond, 1957). The development of entrepreneurial activity is influenced by economic factors (Berna, 1960), as well as support from family to facilitate entrepreneurship (Bema J, 1960). Peter Drucker (1985) defines entrepreneurship as a practice based on knowledge, rather than an art. Tenmozhi (1997) explores the relationship between socioeconomic factors and the influence they have on entrepreneurs. Socioeconomic conditions and farm mechanization are among the main factors influencing farm entrepreneurship (Sharma & Singh, 1994). Farmers with strong entrepreneurial skills often adopt new agricultural practices (Patel, 1995).

Barura and Mali (2011) state that the performance of micro, small, and medium enterprises is primarily influenced by the amount of investment they receive rather than their employment levels.

Significance of the Study

The study emphasizes the potential for rural entrepreneurship to contribute to social capital and sustainability in rural areas. Rural entrepreneurs can have a positive impact on local and national economies. Small enterprises are vital for promoting job growth and innovation in rural economies. While many see entrepreneurship development in rural areas as a means to alleviate poverty, this research aims to examine the social and financial challenges faced by rural entrepreneurs.

This study aims to investigate the factors affecting rural entrepreneurship development in India. The objectives of the study include examining the current scenario

of rural entrepreneurship, analyzing factors influencing performance of rural entrepreneurs, identifying challenges faced by them, and proposing measures for their development.

The methodology involved identifying prospective villages in all taluks of Cuddalore district. A simple random sampling method was used to select 125 entrepreneurs from 25 villages (5 entrepreneurs per village) for the study.

The study collected data through a survey method, including a pre-test and a well-structured interview. Socio-economic factors were rated using a rating method. Secondary data from various sources such as articles, journals, websites, magazines, and research by different researchers were also collected. Data analysis was conducted using the software SPSS 20.

The data collected from business units will be categorized into different subgroups of socio-economic constraints of rural entrepreneurs using the weighted average method. These subgroups are Agro-based Industry, Mineral-based Industry, Forest-based industry, Hand-made paper and fiber, Rural engineering and Bio-technology, Polymer and chemical industry, and Service industry. The main financial constraints for rural entrepreneurs are a shortage of fixed capital, followed by a shortage of working capital. The least financial constraint is ignorance of banking, followed by a delay in sanctioning loans.

Suggestions for addressing these constraints include forming a committee among the entrepreneurs to discuss their needs, problems, and achievements. They can also hold meetings at a common place. Proper awareness about the importance of savings and reducing expenditure should be given to address the root cause of financial issues during surplus times. Training on inventory management can help reduce wastage. Lack of exposure in financial management and poor account maintenance can be resolved through proper training programs. The government should also conduct training programs to address public relations problems faced by rural

entrepreneurs.

• NGO's and governmental agencies can provide financial support as motivation and assistance.
• Banks make the loan procedures complicated; however, they can simplify the process and formalities.
• The lack of exposure can be eliminated through innovative development programs and specialized training.

Conclusion

It is evident that self-motivation and interest drive entrepreneurs to start their own businesses with minimal capital investment. However, there is a lack of proper financial management training and government support. Consequently, entrepreneurs form unregistered businesses without fulfilling government registration procedures. Additionally, the lack of awareness about available government organizations and difficulties in obtaining loans from banks make it particularly challenging for rural entrepreneurs to sustain their businesses. Despite these socio-economic obstacles, rural entrepreneurs view their business as a vital source of family income that contributes significantly to the country's economic growth.

The rural entrepreneurs have plans to expand in the future.