Entrepreneurship Development

ENTREPRENEURSHIP DEVELOPMENT FOR RURAL FAMILIES 4(1+3)

Lesson 3 : Need of Entrepreneurship Development for Farm Families

Need for entrepreneurship development

• Every country, whether developed or developing, needs entrepreneurs.
  A developing country needs entrepreneurs to initiate the process of development, the developed one needs entrepreneurship to sustain it.
• Entrepreneurship promotes small business in the society. Government has accepted the fact that small firms have a crucial role to play in the economic development of the country and are an essential part of our future economic prosperity
• Most economists today agree that entrepreneurship is a necessary ingredient for stimulating economic growth and employment opportunities in all societies.
• Entrepreneurship can really take India to the heights of becoming a super economic power.
• The quality of dynamism originates in the inherent nature of the enterprise. The structure of small and medium enterprises is less complex than that of large enterprises and therefore facilitates quicker and smoother communication and decision- making. This allows for the greater flexibility and mobility of small business management.
• Small business promotion needs relatively low investment and therefore can be easily undertaken in rural and semi-urban areas. This in turn creates additional employment in these areas and prevents migration of people from rural to urban areas. Since majority of the people are living in the rural areas, therefore, more of our development efforts should be directed towards this sector.
• In India, the government policies, political and economic environment greatly encourage the establishment of new and small enterprises. Self- employment and small scale industry schemes have been further liberalized during the last decade.
• Small enterprises use local resources and are best suited to rural and underdeveloped sector. This in turn will also lead to dispersal of industries, reduction in concentration of economic power and balanced regional development.
• Business enterprises need to be innovative for survival and better performance. It is believed that smaller firms have a relatively higher necessity and capability to innovate. An increased number of small firms are expected to result in more innovations and make the Indian industry compete in the international market.