PROLOGUE

Why Rural Industrialization (RI)? By taking industry to rural segments, large scale rural out-migration to cities can be checked. RI could stop skill drain if sufficient opportunities are generated RI could utilize “slack” resources which are not being capable of useful in modern industry RI would can lead to an economy to a greater degree of regional and sectoral equality and decentralization. RI will have significant spin-off to agricultural development as well

Characteristics of Tiny Units Tiny Units (TU) do not have much of a process or structure. They are run by one individual or a small team who make the decisions, Since there is little process or structure in TU, this also provides a mechanism to put in place "best practice business" processes. TUs are generally more flexible, and can rejig the way they do their work around a better solution. TUs do not favour complex, formal methods of project management, preferring simplicity and familiarity. Entrepreneurs at TU are generally "all-rounders" with basic knowledge of many areas. TUss are more people-dependent than process-dependent. TUs are less sophisticated with their infrastructure. The focus is more on medium-term survival than long-term profits.

Characteristics of successful enterprises able entrepreneur - a resourceful and capable person can overcome many obstacles; marketable product - the entrepreneur must continually assess the future of the product's market: Will price trends for the product (and its substitutes) cause its market to grow or decline? What new products threaten to replace it? reliable supply of materials - processors and traders need a predictable and stable supply for maintaining markets. favorable infrastructure and access to credit - access to transportation, utilities and credit for capital investment heavily influence an enterprise's chances for success. Small enterprises can overcome the conditions that favour larger operations by grouping together.

Elements of a successful enterprise strategy ..1.. Entrepreneurs can explore ways of increasing their income start with products for which a local market already exists. Entering an existing market allows producers to start repaying costs immediately, but creating markets for new products takes time; improve production techniques and reduce process losses increase the product's competitiveness by: (1) reducing costs of production, (2) creating a niche market, or (3) improving management of the resource

Elements of a successful enterprise strategy ..2.. adopt a simple strategy. Complex production/marketing strategies permit more unforeseen difficulties. Management ability is the biggest challenge for most rural entrepreneurs; simpler management strategies favour them; start with one product and gradually diversify. First, choose the easiest product that yields a good revenue for the time involved. Invest profits in the processes required to produce a second market item. The income from the first product can also leverage credit for a larger operation; diversity the markets for each product. Before expanding from local to regional or national markets, estimate the added costs and benefits. Stay informed about research on new products and on changes in populations and preferences.

Elements of a successful enterprise strategy ..3.. add value locally, usually through processing. continually study the available technology for potential improvements; know the quality standards required by buyers, and the standard of the enterprise's product. Products such as food, soap, shampoo and cosmetic products often must meet health and safety requirements. Learn about those minimum standards, and decide how to have the product evaluated; organize with other producers for collective strength. This helps to reduce each producer's costs for transportation, storage or materials, and also helps in negotiation with manufacturers in downstream processing

Typical needs of an Entrepreneur Technical needs (product/process/know-how) Planning needs Financial needs Marketing needs People-related needs Infrastructural needs Information needs Energy needs

What should be done … Sensitize Rural entrepreneurs about the opportunities that exist Provide a comprehensive understanding of RI Share experiences of success stories