Ease of Doing Business for MSMEs: India’s vision to become a $5 trillion economy by 2025 might be fulfilled by spurring rural entrepreneurship in the country. The report ‘Insights into Rural Entrepreneurship’ found that almost 44 per cent of the young adults residing in rural India aspire to become entrepreneurs and run their own business. The interest was higher among males (at 47 per cent) as compared to females (at 38 per cent).

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The findings are part of the survey of 2,041 rural businesses and 1,906 young enterprise aspirants in the age group of 16-29 years done by think tanks Development Intelligence Unit and Development Alternatives to understand the aspirations and attitudes of young rural entrepreneurs towards entrepreneurship. 

The rural entrepreneurs are not only seeking higher pursuits, they are also taking bigger risks. Almost nine out of ten rural businesses are led by first-generation enterpreneurs who prefered to start up on their own, found the survey. 

Kanika Verma, Lead, Green and Inclusive Entrepreneurship and AVP, Development Alternatives Group said, “The survey has highlighted the brimming aspirations of youth towards entrepreneurship. Data from the survey reflects the emerging need to build supportive ecosystems that are cognizant of local opportunities.”

She added that pathways and collaborations will have to be fostered to create millions of micro-enterprises that are the backbone of the Indian economy. 

The survey also highlighted the concerns rural enterprises face in accessing credit and hiring talent. Nearly half of the rural businesses hire workforce from and within the same villages and only 20 per cent of it are from other places. Also, 40 per cent of them said that lack of financial aid restraints the growth of their businesses. 

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Another key enabler for business growth is technology whose adoption is abysmally low in rural enterprises. Only 11 per cent had accessed a technological service in the past and only 13.4 per cent of these businesses had made use of marketing services.