Amit Kumar Patjoshi, CEO, Palladium, 0
Rural businesses not only generate revenue but serve as catalysts for social change at the bottom of society by making effective use of local resources. These organizations play an important role in the overall development of the rural economy and contribute to the economic prosperity of the country. In India, the emergence of women entrepreneurs and their contribution to the national economy is visible. Women in rural areas have engaged in small entrepreneurship development programs with the help of self-help groups. As a result, these women have become economically empowered and have achieved status in their families and communities.
Below is an excerpt from our recent interview with Amit Kumar Patjoshi, CEO, Pelladium India, on this topic.
What is the role of rural businesses in fostering economic growth?
Rural businesses are fundamental to the economic health of many communities. Firstly, they create much-needed jobs in areas that might otherwise have limited options. These jobs keep money circulating locally, boosting spending by residents and tax revenue for the community. Secondly, rural businesses diversify the economic landscape beyond Agri and Allied. While many people rely heavily on businesses in agriculture, handloom, grocery stores, etc., many people are also exploring new businesses and sectors that can build a more stable and resilient foundation for sustainable growth.
Innovation is another key aspect. Rural entrepreneurs are often at the forefront of adapting ideas and innovations, which help them scale. These businesses bring fresh perspectives and technologies that benefit both the local economy and the environment. Furthermore, successful rural businesses often become anchors for their communities, fostering a powerful sense of community pride and collaboration.
What are the main challenges faced by rural businesses, particularly those led by women?
Rural businesses in India, especially those led by women, face a unique set of hurdles. Limited access to finance is a major obstacle. Additionally, many women lack property ownership, further hindering their ability to secure funding. Another challenge is the burden of balancing family and business commitments. Societal expectations often place childcare and household duties primarily on women, making it difficult to dedicate sufficient time and energy to their businesses. Furthermore, rural areas often lack essential infrastructure, like reliable transportation and internet connectivity which limit market reach, access to resources, and communication with potential customers and partners. Women entrepreneurs also face social barriers. Patriarchal attitudes can make it challenging to gain respect and authority in the business world. Additionally, limited access to business training and mentorship can hinder their entrepreneurial skill development.
Despite the challenges, rural women have always played a significant role in businesses. Since the mid-18th century, they managed retail shops and small handloom enterprises from their homes. This tradition continued, but the real change came in the 20th century when the number of businesswomen grew significantly as they started applying new skills, investing, finding market niches, and creating job opportunities. Today, women entrepreneurs in India have not only broken through gender barriers but have also become employers themselves, proving they are no longer newcomers to the entrepreneurial world.
What programs are available for women in rural areas to learn and expand their businesses?
Women in rural India have access to a range of programs aimed at learning and expanding their businesses. Firstly, government schemes like the Mudra Yojana offer targeted loans for women entrepreneurs, while initiatives such as Mahila Shakti Kendras serve as comprehensive
service centers. Additionally, the Rashtriya Mahila Kosh provides microfinance and credit facilities, empowering women with financial support. Government portals like the Udyam Shakti portal and the Ministry of Skill Development and Entrepreneurship website offer invaluable information and resources for aspiring women entrepreneurs, aiding them in navigating the business landscape effectively.
Furthermore, digital platforms such as Mahila E-Haat play a pivotal role in facilitating marketing and e-commerce opportunities, providing women entrepreneurs with a platform to showcase and sell their products, thereby expanding their reach and impact. Unfortunately, many women are not aware of these platforms, missing all the advantages they offer. Apart from these central schemes, there are many state sponsored programs which focus on enhancing the economic status of women by providing them with financial assistance, training, and capacity building. However, while government is doing their bit to promote women entrepreneurs, private sector is no way behind. Bilateral agencies like United States Agency for International Development (USAID), Foreign, Commonwealth & Development Office (FCDO), and donors like Bill & Melinda Gates Foundation often prioritize the economic empowerment of women through various initiatives and programs. The agencies support programs through access to finance, skills training and capacity building, market access and value chain development, policy advocacy, technological support, research and data collection. For instance, in India, USAID supports Women’s Global Development and Prosperity (W-GDP) initiatives aimed at advancing women’s participation in the economy, promoting entrepreneurship, and improving access to finance and markets.
How are government or private firms assisting rural businesses, and how can women benefit from these efforts?
Both government and private firms play crucial roles in supporting rural businesses, offering financial assistance, and credit facilities through initiatives like the National Rural Livelihoods Mission (NRLM), Mahila Kisan Sashaktikaran Pariyojana (MKSP), and Pradhan Mantri Mudra Yojana (PMMY). Additionally, they promote technological innovation through programs such as Digital India and Startup India, empowering rural entrepreneurs with tools for success. For women entrepreneurs, these efforts open doors to a world of possibilities. By embracing technology solutions for farm mechanization, e-commerce, and digital marketing, they can enhance productivity and competitiveness. Government-led platforms like the Women Entrepreneurship Platform and private-sector initiatives offer networking and collaboration opportunities, fostering growth and empowerment.
Moreover, private organizations are setting up incubators tailored for rural women entrepreneurs, providing essential resources like training, mentorship, and workspace. Microfinance Institutions also play a crucial role, offering small loans and financial literacy training, enabling women to access capital and realize their business dreams. Donors and foundations also provide various support mechanisms apart from finance and capacity building. These facilitate networking opportunities and mentorship programs connecting women entrepreneurs with industry experts and peer support networks. They invest in technology and innovation-driven solutions such as digital platforms, e-commerce tools, and mobile applications that empower entrepreneurs.
How can technology and innovation enhance the productivity and efficiency of rural businesses?
The government has truly spearheaded the development of a robust Digital Public Infrastructure, positioning India as a leader in technological innovation, thanks to JAM Trinity and now UPI. While JAM Trinity has helped enhance transparency and efficiency in government schemes and subsidy delivery, UPI has revolutionized digital payments and paved the way for services like credit evaluation and loans through platforms like Bharat Pe. Platforms such as ONDC and OCEN are democratizing markets for micro-entrepreneurs, offering a diverse range of services and providers. These platforms, coupled with AI-driven underwriting processes, are empowering rural businesses with better value for money and enhanced market access.
Furthermore, digital platforms such as Mahila E-Haat play a pivotal role in facilitating marketing and e-commerce opportunities, providing women entrepreneurs with a platform to showcase and sell their products, thereby expanding their reach and impact. Unfortunately, many women are not aware of these platforms, missing all the advantages they offer. Apart from these central schemes, there are many state sponsored programs which focus on enhancing the economic status of women by providing them with financial assistance, training, and capacity building. However, while government is doing their bit to promote women entrepreneurs, private sector is no way behind. Bilateral agencies like United States Agency for International Development (USAID), Foreign, Commonwealth & Development Office (FCDO), and donors like Bill & Melinda Gates Foundation often prioritize the economic empowerment of women through various initiatives and programs. The agencies support programs through access to finance, skills training and capacity building, market access and value chain development, policy advocacy, technological support, research and data collection. For instance, in India, USAID supports Women’s Global Development and Prosperity (W-GDP) initiatives aimed at advancing women’s participation in the economy, promoting entrepreneurship, and improving access to finance and markets.
Microfinance Institutions also play a crucial role, offering small loans and financial literacy training, enabling women to access capital and realize their business dreams
How are government or private firms assisting rural businesses, and how can women benefit from these efforts?
Both government and private firms play crucial roles in supporting rural businesses, offering financial assistance, and credit facilities through initiatives like the National Rural Livelihoods Mission (NRLM), Mahila Kisan Sashaktikaran Pariyojana (MKSP), and Pradhan Mantri Mudra Yojana (PMMY). Additionally, they promote technological innovation through programs such as Digital India and Startup India, empowering rural entrepreneurs with tools for success. For women entrepreneurs, these efforts open doors to a world of possibilities. By embracing technology solutions for farm mechanization, e-commerce, and digital marketing, they can enhance productivity and competitiveness. Government-led platforms like the Women Entrepreneurship Platform and private-sector initiatives offer networking and collaboration opportunities, fostering growth and empowerment.
Moreover, private organizations are setting up incubators tailored for rural women entrepreneurs, providing essential resources like training, mentorship, and workspace. Microfinance Institutions also play a crucial role, offering small loans and financial literacy training, enabling women to access capital and realize their business dreams. Donors and foundations also provide various support mechanisms apart from finance and capacity building. These facilitate networking opportunities and mentorship programs connecting women entrepreneurs with industry experts and peer support networks. They invest in technology and innovation-driven solutions such as digital platforms, e-commerce tools, and mobile applications that empower entrepreneurs.
How can technology and innovation enhance the productivity and efficiency of rural businesses?
The government has truly spearheaded the development of a robust Digital Public Infrastructure, positioning India as a leader in technological innovation, thanks to JAM Trinity and now UPI. While JAM Trinity has helped enhance transparency and efficiency in government schemes and subsidy delivery, UPI has revolutionized digital payments and paved the way for services like credit evaluation and loans through platforms like Bharat Pe. Platforms such as ONDC and OCEN are democratizing markets for micro-entrepreneurs, offering a diverse range of services and providers. These platforms, coupled with AI-driven underwriting processes, are empowering rural businesses with better value for money and enhanced market access.