Development of Rural Entrepreneurship in India

Abstract A rural entrepreneur is an individual residing in a village who produces goods or services using mainly local resources. Such individuals organize production factors and assume risks. In India, nearly 70% of the population lives in rural areas, largely dependent on agriculture and related activities. These regions face significant unemployment and underemployment due to surplus labor and limited capital. Therefore, promoting rural entrepreneurship becomes essential. Risk perception plays a crucial role in decision-making among rural individuals. Each person has a threshold for accepting risk based on personal attitudes and experiences. When uncertainty outweighs supportive conditions, perceived risk increases. For sustainable development, it is important to create supportive environments and build individuals’ capacity to manage risks within acceptable limits.