Submitted by: Submitted to

Kaniz Fatema Taskin Afrina

Reg no: 19-09777 Lecturer
Level-1, Semester-1 Department of Management and
Finance
Course code: MAFI 101
Sher-e-bangla Agricultural
BBA in Agribusiness
University
INTRODUCTION

Rural entrepreneurship is defined as entrepreneurship whose root

lies in the rural areas but has a lot of potential to drive various

endeavors in business, industry, agriculture etc. and contribute to

the economic development of the country. Bangladesh is a country

of villages. Nearly 80% of its major population resides in villages

and their livelihood is supported by agriculture and allied activities.

Thus the nation’s economic development depends largely on the

standard of living of the people who live in the rural areas and the

level of development which has actually taken place there.

TYPES OF RURAL ENTREPRENEURSHIP
 Individual entrepreneurship
 Group entrepreneurship
 Cluster formation
 Co-operatives
CATAGORIES OF RURAL ENTREPRENEURSHIP
All the village industries come under the following broad categories:

Agro Based Industries: like sugar industries, jiggery, oil processing from
oil seeds, pickles, fruit juice, spices, dairy products etc.

Forest Based Industries: like wood products, bamboo products, honey,

coir industry, making eating plates from leaves.

Mineral Based Industry: like stone crushing, cement industries, red

oxide making, wall coating powders etc.

Textile Industry: like spinning, weaving, coloring, bleaching.

Engineering and Services: like agriculture equipment, tractors and

pump sets repairs etc.
NEEDS FOR RURAL ENTREPRENEURSHIP

a) Reduce the levels of unemployment. The occupation provided by

rural entrepreneurs would serve as an antidote to this.

b) Reduce income disparities.

c) Reduce the number of migrants from rural to urban areas.

d) Balanced regional development.

e) To build up village republics.

f) Preserve the heritage of the country through art and creativity.

g) This leads to economic development of the rural areas and

country as a whole.
CURRENT SCENARIO OF RURAL
ENTREPRENEURSHIP
The growth rate of agriculture increase 4.2% to 5.53% in 1980-81 to
2000-01 respectively. Most of the rural entrepreneurship in Bangladesh
growing based on agro-industry. There are many agro based industry in
Bangladesh that people take to make them as an entrepreneur.

Location of entrepreneurship (in percent)

Urban Rural
68% 32%
GROWTH RATE OF RURAL ENTREPRENEURSHIP
IN BANGLADESH
Here is a bar graph that shows the increasing rate of rural
entrepreneurs from 2014 to 2018

80%

70%

60%

50%

40% 71%
62%
30%
45.50%
20%
22% 23%
10%

0%
2014 2015 2016 2017 2018

Rural Entrepreneurs

Source: trandingeconomics.com

Bangladesh Bureau of Statistics

PROBLEMS FACED BY RURAL ENTREPRENEUR
 Political problem

 Apathy of risk taking tendency

 Increasing labor & power source cost

 Finding trustworthy business partner

 Lack of Training Program

 Barriers of women entrepreneurship in Bangladesh

 Financial problem

 Raw material scarcity and sourcing problem

 Technological problem

 Weak infrastructure

 Choosing the right business

 Compete with the existing syndicate

 R%D facility problem

 Lack of managerial, commercial % technological knowledge

CHALLENGES FOR RURAL ENTREPRENEURS
There are a number of bottlenecks which create difficulties in efficient
working of the rural entrepreneurs. These are:

a) Lack of technical expertise among the rural masses

b) Financial constraints

c) Lack of training modules and support services

d) High cost of production

e) Expensive quality control which if not adhered to lower down

the standards

f) Storage and warehouse issues

g) Lack of marketing and promotional strategies

h) Low level of education

SOLUTIONS
1. Financial support

2. Creating R%D facilities

3. Establishment of entrepreneur friendly environment

4. Ensure political stability

5. Make sure of raw materials availability

6. Education facilities given by the government

7. Solve of mobility professions

8. Increase the size of business of projects

9. Maintain the time management time to time

10. Reserve enough raw materials and money

RURAL DEVELOPMENT THROUGH
ENTREPRENEURSHIP
a) Rural entrepreneurship development program

b) Regional rural development centers

c) Social rural entrepreneurship

d) Food for work program

e) Bank of technology

f) Rural innovation funding

In the last three decades, across the world there have been major shifts
in rural economics. Rural enterprises are important generators of
employment and economic growth both locally and internationally. It is
important to stress that rural entrepreneurship in its core essence does
not differ from entrepreneurship in urban areas. Entrepreneurship in
rural areas is finding a unique blend of resources be it within the
boundaries of agriculture or outside.
RURAL DEVELOPMENT THROUGH
ENTREPRENEURSHIP
EFFECTS OF GLOBALIZATION ON RURAL
ENTREPRENEURSHIP
To establish a causal linkage between globalization, a macro concept
and rural entrepreneurship, a micro concept is a tedious task. However
it is somewhat easier to identify channels through which the aspects of
globalization can impact the rural industries to a extents of its welfare.

a) Global production and efficiency can serve to be the benchmark

for the local entrepreneurs.

b) Improved access to foreign technology

c) Trade openness results in faster growth.

d) Various policy benefits at national and global level

ROLE OF RURAL ENTREPRENEURSHIP
IN ECONOMIC DEVELOPMENT
 Decentralized industrial development, better distribution of
wealth and investment
 Reduction of poverty and unemployment
 Check on migration of rural population
 Helps capital formation
 Balanced regional development
 Promotion of artistic activities
 Check on social evils like poverty, pollution, growth of slums etc.
 Awaken rural youth to develop and carry out entrepreneurial
activities in the rural areas
 Improves standard of living
 Proper utilization of local resources
 Improvement in per capita income
 Increase in general employment
 Promotes national self-reliance
 Planned production will increase
 Promote prosperity
 Increasing the foreign exchange earnings through exports
WOMEN ENTREPRENEURSHIP
In recent years, the rate of new business formation by women has
significantly risen in Bangladesh. However, women still own and
manage significantly fewer businesses than men. According to the
Economic Census 2013, the number of female headed establishments is
0.56 million (7.21 per cent) while it was 0.10 million (2.80 per cent) in
2001 and 2003. The explanation for this rising rate and the behavior of
female entrepreneurs in terms of traits, motivations, success rates, and
their gender-related distinctiveness are, however, complex and
multifaceted.

Historically, the fewer numbers of women entrepreneurs than men are

due to the fact that fewer women than men start businesses to begin
with. Evidence suggests that a variety of reasons contribute to
explaining the observed differences in entrepreneurial behavior across
gender, and that such differences have significant implications at the
macroeconomic level. In addition, the propensity of women to start a
business differs from that of men for cultural reasons such as
discrimination.
NUMBER OF RURAL ENTERPRISES, 2018

Sectors Number of
enterprises
Agro-processing/Agri-business/plantation 726
agriculture/specialist learning/ tissue culture and
related business
Leather making and leather goods 84
Knitwear and ready-made garments 447
Plastic and other synthetics 24
Educational services 10
Pharmaceuticals/cosmetics/toiletries 237
Fashion-rich personal effects, wear and consumption 2241
goods
Source: SME rural enterprise directory, 2018
BARRIERS OF WOMEN ENTREPRENEURSHIP
IN BANGLADESH
1. Lack of capital
2. Lack of knowledge and skills for marketing
3. Lack of women leadership
4. Lack of opportunities for training
5. Family issues and negative attitude of the society

Types of obstacles faced by women in doing

business

Loan
70%
Marketing
15%

Social
7%
Business
2%
Family Environment
3% 4%
ROLE PLAYED BY BSRS FOR WOMEN
ENTREPRENEUR DEVELOPMENT

On behalf of the government BSRS has arranged some policies and

schemes to promote the development of women entrepreneurship.
Very few women entrepreneurs have so far taken loan from BSRS.
However BSRS with the help of some other NGOs’ has taken initiatives
such as:

(1) Setting up of a Women Entrepreneurship Development Cell;

(2) Identification of women entrepreneurs of Bangladesh;

(3) Planned Publication of a directory of women entrepreneurs with

their

(4) Organizing entrepreneurship development training;

(5) Co-organizing convention of women entrepreneurs, discussion

meetings on the problems and prospects of women entrepreneurship
in Bangladesh in the grass root level

(6) Arranging market opportunities.

ENTREPRENEURSHIP DEVELOPMENT IN
RURAL AREA
Entrepreneurship is often considered one of the most effective and
flexible strategies for economic development of a country. So lack of
entrepreneurship development is one of the reasons for not developing
the economy. In Bangladesh at the time of initiating enterprise, an
entrepreneur faces many problems such as shortage of skilled workers
and infrastructural facilities. In Bangladesh lack of political
commitments and absence of creation of healthy environment required
for entrepreneurial growth are the limiting factors in the process of
adequate supply of reasonable number of entrepreneurs. Today, some
Govt. and some non-govt. organizations have come forward with great
facilities for entrepreneurs.

Entrepreneurs should be provided special facilities to develop their

enterprises. These include:

(1) Development Banks with separate advisory service cell for women;

(2) Separate counters in counters in commercial banks for women;

(3) Arrangement of exclusive fairs to promote products manufactured

by small & cottage based units;

(4) Fixed quota of stalls for women entrepreneurs at export fairs;

(5) Special market facilities both in the domestic and the international
arena.
RECOMMENDATIONS TO BOOST UP RURAL
ENTREPRENEURSHIP

 Modernization of rural industrial sector and upgradation of

rural skills

 Supply of raw material at reasonable rate

 Specific action to link the production centers to market in the

urban areas

 Training in government schemes

 Training institution needs to be strengthened

 Eliminate middle men in marketing business

PROMOTION OF RURAL ENTREPRENEURSHIP
TO THE MASSES LIVING IN THE VILLAGE

a) Soft and easy conditions for financing budding entrepreneurs.

b) The raw material base should be strengthened in the villages.

c) The production centers can be made the marketing end points

and thus solve issues faced regarding the same.

d) Development of entrepreneurial attitude among the local masses

by imparting entrepreneurial education at school and college level.

e) Provide and educate them about various benefits and facilities

available for rural entrepreneurs.