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What are the rpblems faced by rural, entrepreneurs, The entrepreneurs of rural India are confronted by an array of obstacles, and hindrances. The problems faced by the rural entrepreneurs crop up, owing to the socio-economic, political, cultural, business environment in, which they exist., The major problems faced by the rural entrepreneurs are, discussed below:, 1. Illiteracy:, The level of literacy is a serious handicap for the aspiring rural, entrepreneurs. They find it very difficult to understand the nitty- gritty of, business activities, the changes in technological environment and the, prospects of different sectors of business. Besides, in the rural areas, the, rural entrepreneurs have to tackle the problem of illiteracy among the, labour force available., The levels of literacy of the workers affect the business prospects of the, rural entrepreneurs and is thus as a serious challenge. The rural, entrepreneurs owing to the low level of literacy find very cumbersome to, understand and comply the legal formalities., 2. Lack of Experience:, The rural entrepreneurs are mostly the first generation entrepreneurs., They a rarely endowed with rich experience of entrepreneurship. It is, obvious that they have to compete with the people with rich experience., 3. Purchasing Power is Limited:, Lack of purchasing power is a serious handicap for the rural, entrepreneurs. Leaving aside few exceptions, the rural entrepreneurs face, the crisis of lack of capacity to purchase resources and machineries., 4. Threat from the Existing Urban Entrepreneurs:, The urban entrepreneurs are believed to be in an advantageous position., They have better access to information, technology, business prospects,, credit facility and etc. The rural entrepreneurs ultimately have to compete, with the urban counterparts who are placed in an advantageous situation., 5. Lack of Funding:, The entrepreneurs of the rural areas find its challenging to generate, external funds owing to the absence of tangible security. Moreover, the, lack of credit facilities also adds to their plight. They often borrow from, the unorganized financial sector and get thwarted., 6. Existence of Middlemen:

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The existence of different levels of middlemen is a serious problem for the, entrepreneurs of rural areas. Rural entrepreneurs are often dependent on, the middlemen and in the process get exploited., 7. Procurement of Raw Materials:, The rural entrepreneurs have to face serious hurdles in procurement of, raw materials. Usually the suppliers neglect the upcoming rural, entrepreneurs because initially they are small size firms. The rural, entrepreneurs also face the problem of warehousing and storage., Entrepreneurs using perishable raw materials don’t have easy access to, cold storage facilities within the rural areas., 8. Lack of Technical Skill:, Rural entrepreneurs face a severe problem of lack of technical knowledge., There are two problems associated with. First, the rural entrepreneurs do, not keep themselves updated with information of technological, developments. Second, the employees and workers without technical skill, affect productivity., 9. Lack of Training Facilities:, The lack of training and skill development facilities in rural areas is also a, serious problem. The rural entrepreneurs find it very difficult to train and, develop their workers in order to enhance their productivity., 10. Low Level of Infrastructural Facilities:, Usually the level of roads, communication facilities and electricity supply, in rural areas are below standard. The low level of infrastructural facilities, retards the development of rural entrepreneurship., 11. Poor Quality of Products:, The entrepreneurs of the rural areas find it extremely difficult to maintain, high level of standard in their products and services. They lack the proper, information about the prescribed standards owing to lack of access to, internet. They also do not have the standard tools and equipments., 12. Lack of Positive and Inspiring Atmosphere:, In most of the cases, the rural entrepreneurs are not born and brought up, in an environment that promotes entrepreneurship. The social, environment, family customs, traditions are not conducive to encourage, youngsters to take up entrepreneurship. The rural areas lack the, awareness and knowledge of entrepreneurial opportunities., 13. The Element of Risk Involved:, Rural entrepreneurs unlike their counterparts are not well equipped to, undertake heavy risks. The rural entrepreneurs have less risk bearing, capacity due to lack of financial resources, credit facilities and external, support.