What are the Importance of Rural Entrepreneurs?


Rural entrepreneurs play a vital role in the overall economic development of the country. The growth and development of rural industries facilitate self employment, results in wider dispersal of economic and industrial activities and helps in the maximum utilisation of locally available raw materials and labour. Followding are some of the important role which rural industries play in ameliorating the socio-economic conditions of the rural people in particular and the country in general.

Proper utilisation of local resources:

Rural industries help in the proper utilisation of local resources like raw materials and labour for productive purposes and thus increases productivity. They can also mobilise rural savings which help in increase of rural funds.


Employment generation:

Rural industries create large-scale employment opportunities for the rural people. The basic problem of large-scale unemployment and underemployment of rural India can be effectively tackled through rural industrialisation.

Prevents rural exodus:

Lack of employment opportunities, heavy population pressure and poverty forced the rural people to move to urban areas for livelihood. It creates rural urban imbalance. Under these circumstances, rural industries help in reducing disparities in income between rural and urban people and acts as a potential source of gainful employment. This prevents rural people to migrate to urban areas.


Fosters economic development:

Rural industrialization fosters economic development of rural areas. This curbs rural urban migration on the one hand and also reduces disproportionate growth of towns and cities, growth of slums, social tensions and environmental pollutions etc. on the other.

Earnings of foreign exchange:

Rural industries play an important role in increasing the foreign exchange earnings of the country through export of their produce.


Producers goods of consumers’ choice:

Rural industries including village and cottage industries produce goods of individual consumers’ choice and taste. Jewellery, sarees, artistic products are produced to cater to the needs of different consumers according to their taste, design and choice.

Entrepreneurial development:

Rural industries promote entrepreneurial development in the rural sector. It encourages young and promising entrepreneurs to develop and carry out entrepreneurial activities in the rural sector which finally facilitate the development of the rural areas.

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