Rural Management Principles and Practices First Edition Mahatma Gandhi National Council of Rural Education (MGNCRE) Department of Higher Education Ministry of Human Resource Development, Government of India Editorial Board Dr W G Prasanna Kumar, Chairman MGNCRE Dr K N Rekha Ms V Anasuya First Edition: 2019 ISBN : 978-81-940618-0-9 Price: ₹ 350/- All Rights Reserved No part of this book may be reproduced in any form or by any means without the prior permission of the publisher. Disclaimer The editor or publishers do not assume responsibility for the statements/opinions expressed by the authors in this book. © Mahatma Gandhi National Council of Rural Education (MGNCRE) Department of Higher Education Ministry of Human Resource Development, Government of India 5-10-174, Shakkar Bhavan, Ground Floor, Fateh Maidan Road, Hyderabad - 500 004 Telangana State. Tel : 040-23422112, 23212120, Fax : 040-23212114 E-mail : [email protected], Website : www.mgncre.in Published by: Mahatma Gandhi National Council of Rural Education (MGNCRE), Hyderabad Printed by: Ram Digi Graphics, Hyderabad Cover Design and Layout: Mr. G Sivaram Contents Preface Acknowledgement Block 1 Rural Planning and Development Chapters 1. Introduction to Rural Development 8 2. Rural Management 23 3. Institutions for Rural Development and Management 39 4 Major Development and Welfare Programs 61 5 Experiments in Rural Development 79 Block 2 Civil Society and Development Chapters 1. History of Civil Society 92 2. Civil Society and Social Justice 106 3. Nature of Civil Society in India 116 4. Civil Society and Sustainable Rural Development 129 5. Sustainable Development Goals 143 Block 3 Rural Entrepreneurship Part 1 Chapters 1. Entrepreneur Traits, Types, and Significance 173 2. Entrepreneurial Inputs 184 3. Entrepreneurial Systems 191 4. Rural Entrepreneurship I 201 5. Rural Entrepreneurship II 207 Part 2 Chapters 1. Introduction to Rural Entrepreneurship 225 2. Institutional Eco-Systems for Promotion of Rural Entrepreneurship 240 3. Small and Micro Rural Enterprises 264 4. Rural Enterprise Incubation 286 5. Live Project and Hands-on Support 305 Caselets on Rural Management 317 Authors’ Profile 404 Preface Rural well-being has been one of the imperative objectives of planning in India since Independence. Government Intervention in rural sector is considered essential in view of the fact that a sizeable population continues to exist in rural areas despite growing urbanization. Signifying its importance Mahatma Gandhi said‘India lives in its villages’. From the socio- economic, and political perspectives, the statement is valid even today and could well prove prophetic even for years to come.As per the 2011 Census, 68.8 per cent of country’s population and 72.4 per cent of workforce resides in rural areas. Rural economy constitutes 46 per cent of national income. Despite the increase of urbanisation more than half of India’s population is projected to be rural by 2050.Therefore, progress of rural economy is a key to overall growth and inclusive development of the country. But the nation's economy has been agriculture dependent for centuries.This continues to be so, asthe market forces are not always able to improve the living conditions of the rural massesowing to existing structural rigidities and institutional deficiencies. Without the productive participation of vast proportion of the rural population, the development process remains incomplete. The rural sector impacts, directly or indirectly, almost all economic activities in the country. It offers employment to majority of population. Rural India has key assets of natural resources and these resources are multifunctional serving both the production and consumption. It supplies food for the growing population. It also provides input and raw material necessary for major industries ofIndia. A large part of revenue of the Government is also generated from the rural sector. Hence rural wellbeing has been of key focus in India.India being a welfare statehas welfare of its people as its foremost obligation. Rural wellbeing not only deals with infrastructure development of rural areas but also with the overall improvement in standard of living such as sanitation, safe drinking water, shelter, good health facilities and livelihood for survival. India got backwardness, poverty, under development, and unemployment, lack of adequate infrastructure facilities and industrial base, poor health, and under production as inheritance from British rule. Hence rebuilding the shattered economy, eradication of poverty and improvement in the standard of living continue to be very difficult tasks. Rural wellbeing is holistic. It encompassesintegrated natural and human resource development. It aims at increasing the opportunities in rural India in respect of health, knowledge and skill development, income and participation in decision making, creating conducive environment for reducing social as well as economic inequalities and conflicts. Thus, it attempts to promote optimal use of all present and potential natural resources. It ensures their conservation and development. Civil society has been playing major role in the democratic decision making process by making the decisions more rationale and sustainable. The globalised world now has seen vibrant civil society participation and the way they are driving the State and its machinery for better, accountable and responsible performance. Entrepreneurship has re-ignited the imagination of the people, with India producing a number of Unicorns, start-ups with over US$ 1 billion in valuation. However, for a country where the majority of its population continues to live in the rural space, entrepreneurship in the rural areas assumes significance. Rural entrepreneurship has the potential to reap the demographic dividend that Indian economists refer to. It can create value for rural consumers while addressing community level challenges. This book represents the collective efforts of so many remarkable individuals. We would like to thank the contributors to this volume for their collective wisdom, experience and insight. We would like to thank our Subject authors: Prof Sundar Bharadwaj, Coca-Coal Company Chair of Marketing at the University of Georgia, Atlanta; Prof Prakash Satyavageeswaran, Assistant Professor, IIM Udaipur; Prof W C Singh, Professor, Manipur Institute of Management Studies, Manipur University; Dr Nilam Panchal, Associate Professor, BK School of Professional and Management Studies, Gujarat University; Dr Puja Singhal, Consultant of Gender Issues. We also have compilation of caselets on rural management from different subject areas like Rural Planning and Devleopment, Marketing, Finance, HR/OB, Strategy. We would like to thank our Caselet authors: Dr Sumathi, GN, Associate Professor, VIT Business School; Dr Syed Kazim, Associate Professor, Acharya Bangalore B School; Ms Neha Gupta, Independent Consultant, L & D, Hyderabad; Ms. Rasheeda Shums, Assistant Professor, Amjad Ali Khan College of Business Administration, Hyderabad; Dr Gowri Pisolkar, Associate Professor, Aurora’s PG College, Hyderabad; Dr. Bhalchandra Balkrishna Bite, AISSMS IOM, Pune; Dr Rajini.G, Professor and Head, VELS Institute of Science and Technology and Advanced Studies, Chennai. We would like to thank our Editor, Ms. Anasuya and Designer, and Mr. Shivaram for extending extreme support in completing this book. Acknowledgement This book is an effort to highlight and spread the action in public and private domains. It focuses on state and individual initiatives in India for full political, economic and socialself- expression of communities.There are many efforts for promoting prosperity and well-being of rural communities. But, the dynamics in rural aspirations and rural capacities need not just be a renewed effort but also a revamped and restructured effort with people orientation. This book is organised into blocks. The first block provides introduction and conceptual framework, outlines the importance and scope of rural development as well as the approaches and strategies of rural development. In the second block, along with scope and significance, sectoral issues of rural development are given. Institutions for Rural Development and Management at national,state and district levels have been presented in block third. It also has Scientific inputs and support from Institutions like ICAR, ISRO, CSIR and Institutes for Rural Development.The book provides theoretical knowledge, practical exposure and field visits through activities, so that, the students can link their theoretical knowledge with the real-life experience of engaging with communities at grass root level. Few caselets are also added in for better perspective of the situations around the world. Block 1 Rural Planning and Development Chapter 1 Introduction The subject of rural development has gained extensive importance in India as 72% (Census 2011) of the Indian population resides in villages. Rural development is not totally a new thought; it existed in India since Vedic times. Now it has been realized globally that, without the development of rural areas, growth of country is not possible. For Rural development, planning is imperative as it became clear that the strategies adopted in developing countries remained largely unsuccessful in alleviating poverty and inequalities in rural areas. It became gradually understood by every economy, that apart from a struggle to surge agricultural and industrial production, it is also essential to address directly