The unemployment or underemployment in the villages has led to influx of rural population to the cities. What is needed is to create a situation so that the migration from rural areas to urban areas comes down. Migration is not always undesirable but it should be the minimum as far as employment is concerned.
Rather the situation should be such that people should find it worthwhile to shift themselves from towns and cities to rural areas because of realization of better opportunities there. In other words, migration from rural areas should not only get checked but overpopulated towns and cities should also get decongested.
Though governments have tried out various schemes for generating incomes in the rural areas such government initiatives have not stopped people from moving out of villages to cities. This is because such government initiatives are not on their own capable of enabling people to earn adequately and ameliorate their conditions. There has to be some committed enterprising individual or a group of people who should be capable of making use of the government policies and schemes for the betterment of rural people. Some individuals who happen to be local leaders and NGOs and who are committed to the cause of the rural people have been catalytic agents for development. Despite all the inadequacies in rural areas one should assess their strengths and build on them to make rural areas places of opportunities. Enabling them to think positively, creatively and Entrepreneurship purposefully is must for the development of rural areas. Young people with such perspective and with the help of rightly channelized efforts would usher in an era of rural entrepreneurship.
To promote entrepreneurs who would take to rural entrepreneurship in utmost earnestness and sincerity is to ensure rural development. Such enterprising people who prefer rural entrepreneurship may or may not themselves belong to rural areas. Entrepreneurs taking to rural entrepreneurship should not only set up enterprises in rural areas but should be also using rural produce as raw material and employing rural people in their production processes. Rural entrepreneurship is, in essence, that entrepreneurship which ensures value addition to rural resources in rural areas engaging largely rural human resources.
In other words, this means that finished products are produced in rural areas out of resources obtained in rural areas by largely rural people.
The entrepreneur may or may not be of rural origin. The entrepreneurs may be from anywhere, but their enterprises have to be located in a rural area, using mainly local resources both material as well as human. Also, the enterprises have to be located in a rural area though it need not be actually using 100% local material and human resources. Some amount of material and some people may be from urban cities. But certainly large portion of material used has to be locally produced and an appreciable number of people engaged in the production of finished goods should be people based or living in rural areas.
Even a unit set up by the government or a large company in a rural area could promote rural entrepreneurship depending on how much opportunities it throws up for entrepreneurs to use local resources, to fulfill the demands of such large units and the multiplier effect such large units create.
Any large unit coming up in rural areas more or less does have an impact inactivating the surrounding economy for entrepreneurs to take advantage of. This is precisely the reason why it is recommended to shift industries from urban centers to neighboring rural areas. Such shifting initially may be a difficult proposition but in the long run beneficial in many ways.
Moreover, it would throw up lots of opportunities in the rural areas and result in decongestion of the urban centers. Urban slums would start disappearing with large number of industries getting shifted to rural areas resulting in increasing opportunities in the rural areas.
Thus, both the rural as well as urban areas get benefited by setting up more industrial units in the rural areas, making rural areas attractive locations for investment.