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Promoting Economic Growth: Strategies for Developing Rural Entrepreneurship in Pakistan

Entrepreneurship in rural areas has arisen as a dynamic idea. It is often characterized as the emergence of entrepreneurship at the village level in several endeavors, including business, industry, and agriculture, and it is a significant force in economic development. It can be viewed as one of the answers to alleviate poverty, migration, economic inequity, and unemployment and revitalize rural and underdeveloped regions. Rural entrepreneurship provides economic benefits to the rural sector by generating new production methods, new markets, and goods, as well as employment opportunities, assuring continual rural growth.

Rural

Population of Pakistan

Pakistan is predominantly a rural country, with two-thirds of the population residing in rural areas. According to the World Bank Report, Pakistan’s rural population was 62.56% in 2021. 70 percent of our rural population depends directly or indirectly on 44 percent of our rural business entities. However, more effort must be put into encouraging business in rural areas.

Types of Rural Entrepreneurship

The agro-based, livestock, horticulture, handicraft, forest, and mineral-based industries can attract a new generation of aspiring entrepreneurs if they receive the required assistance to launch small businesses in their home regions. This will prevent adolescents from traveling to metropolitan regions in search of employment. To maximize their potential, businesses in rural areas should be given preference and funding based on the quality of their indigenous resources.

Challenges

However, rural entrepreneurship is more challenging to develop than urban entrepreneurship. There are several issues to address: Funds shortage, technical incompetence, Skills shortage, Technical ignorance, Uncontrolled Quality, Lack of communication and market ignorance, insufficient storage and transportation, Infrastructure deficit, and lack of awareness.

Developing

Rural Entrepreneurship

It is complex to establish an industry to foster entrepreneurship in rural areas. Indeed, it encompasses a variety of endeavors. Several measures are advocated for the growth of entrepreneurship in rural areas, which are addressed below:

  •    Availability of raw material
  •        Financial Support
  •        Development of entrepreneurial attitude
  •        Entrepreneurial education
  •        Skill development institutions
  •       Awareness campaigns

Off the above-given measures, setting up marketing cooperatives is an efficient strategy that will give rural entrepreneurs full support, guidance, direction, and motivation to launch their businesses. Because of this, rural business owners can purchase necessary supplies at affordable rates and then recoup some of their investment through increased profits when they sell their products.

The Bottom Line

Entrepreneurs in rural areas play a crucial role in Pakistan’s economic growth, which can propel it from the developing to the developed stage. This will secure employment for the rural population, not only eradicate poverty on a broad scale and raise their standard of living but also reduce the number of impoverished people who migrate to urban regions in quest of work. As a result, income inequality can be reduced, and a more stable economy can emerge.

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