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Who are rural entrepreneurs? And what challenges are faced by them?

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Rural entrepreneurs are the entrepreneurs who carry out entrepreneurial activities by establishing their industrial and business units in the rural sector of the economy. They have to face a lot of challenges. Some of them are -

Financial Problems –

It becomes difficult to raise fund or find investors in rural area due to lack of awareness. The people in rural area are not aware enough or they don’t have enough knowledge about entrepreneurship so it becomes really tough to find investors.

Lack of transportation–

In rural areas, the roads are not so developed so it becomes difficult to transport material from suppliers and vendors. This causes a lot of inconvenience for distribution & inventory management.

Lack of infrastructure –

As rural areas are away from the business hub, it becomes difficult to find place for work near to such hubs. Due to lack of infrastructural facilities, growth of the business is hampered.

Marketing problems –

Marketing becomes a great concern for the rural entrepreneurs as they may not find skilled people from local area. Also, very few facilities are there in rural area which makes it difficult to become tough competitor to other city based businesses.

Rural entrepreneurs are the people who practice rural entrepreneurship in rural areas by creating business opportunities, industries etc in rural economy. They also encourage industrialisation  in rural areas on huge scale. There is a great opportunity for entrepreneurs in rural economy as it is labour intensive, availability of skilled and unskilled labours, finance facility available to rural entrepreneurs, subsidies by government of india, various schemes launched by government for rural development etc. With these the following are the challenges that are faced by entrepreneurs are :

  1. Lack of infrastructure 
  2. Poor transport network
  3. Limited marketing resources 
  4. Lack of upgraded Technology 
  5. Finding financial assistance.