Promoting Small & Rural Business

Business, in the economy, plays a vital role in the by providing goods and services, creating jobs, and driving innovation. Small and Rural business plays  a major role in the countries economy of contribute major to the nations GDP It contributes to society by supporting communities and promoting social and economic development. Small business is business run in small scale with fewer employees and with less annual income / turnover. Small business does not require larger space and larger investment. In the Ministry of Government of India there is an apex executive body to formulate and regulate rules and regulations pertaining to micro, small and medium enterprises in India called Ministry of Micro, Small and Medium enterprises (MSME).

National Small Industries Corporation (NSIC), an ISO certified Government of India Enterprise has been working to promote, aid and foster the small-scale business under MSME. It provides support under Marketing, finance, technology and other services.

Government of India has established, “Startup India”, a flagship initiative to catalyse startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India. It also has Several schemes to help the small and rural entrepreneurs by providing credits, training unemployed youth including skill-based training and etc.  Mudra loan, credit Link Capital Subsidy Scheme, Prime Minister Employment Generation Program (PMEGP), Mahila Coir Yojana (MCY) – provide skill development program for women are few of the schemes provided by Government of India to uplift small-scale and Rural business.

Tamil Nadu has an pioneer culture in promoting small-scale industry. Tamil Nadu stands third in micro, small and medium scale industry in India. Government of Tamil Nadu has launched New Entrepreneur cum Enterprise Development scheme to provide capital subsidy to new entrepreneurs for setting up their own business. Main aim of launching this scheme is to encourage youths to start up their own industry/ business as per their own interest and talent and to make them entrepreneurs. It has also established TANSIDCO, TANSI, EDII-TN, M-TIPB, TANSIM to promote small-scale industry in Tamil Nadu.

An organisation or industry is considered small scale when its investment is less than 50 crore and its turnover is less than 250 crores. Some of the small-scale business that can be setup in rural areas are retail shop, mill, dairy farming, pesticide and fertiliser store to name a few. Small business gives greater employability for people in rural areas and improves the economic condition of the employer, employee and the state. It gives independence, flexibility in timing, developing close contact with costumers and the ability to bounce back in case of financial crisis/instability. Even a person with out proper educated can be benefited from small scale business.

Small businesses solely depend on manpower more than technology and rely on immediately available and local resources. Thus it is most suitable for rural areas. Woman Self-help group is a type of small-scale business exist today. Woman in both urban and rural area are the beneficiaries of this scheme. Some of the small business run by this group are artificial jewellery making, stitching, preparing masalas needed for cooking, jam and pickle making and so on. They also get loans from bank to establish their business. It is a source of income for them as well as the state.

As per Mahatma Gandhi’s words “India lives in her villages”, it is important to promote and create awareness on small scale business to the rural people as it will elevate their life and in turn the country economically. Amarendra Sinha, Special Secretary and Development Commissioner at India’s Ministry of Micro, Small and Medium Enterprises, says, it is the small business that can lead the charge of manufacturing. Promoting small business helps to fight unemployability as it will create new owners and job vacancies.  It paves way for innovation and economic growth. It helps in reducing the migration of people from rural to urban areas