Rural india consists of 75% of its population dependent on agricultural activities. In rural areas Literacy rate is less, land is limited, development rate is low, resources are not properly utilized so there is a need to give importance and develop rural areas at par with urban areas in terms of industries, employment, services, education etc. Growth of rural areas leads to the development of the nation as a whole. So rural entrepreneurship means entrepreneurship that adds value to rural economy by exploring business opportunities, resources and establishing industries and help in development of rural areas. In other words rural entrepreneurship results in rural industrialisation and help to solve problems like poverty and employment. It raises standard of living of rural people and removes backwardness of rural economy. According to government of india rural industries or village industries are defines as ' any industry located in rural areas, village or town with a population of 20,000 and below and having investment of ₹3 crore in plant and machine isnclassifies as village industries.' the village industries include :
- Agro based industries like Vegetables fruits, dairy etc.
- Mineral based industry - cement, coal etc.
- Textile based industries - spinning, tailoring etc.
After realizing the importance and benefits of rural entrepreneurship government of india is taking various measures for its growth and development.