Private business is encouraged in transition countries in order to generate economic development in rural areas. Governments and development agencies in every country have put a lot of stress at promoting economic growth and poverty reduction in rural areas .These efforts have achieved mixed results. Different approaches have been tried.
It is noticed that achievements in some countries are countered by success elsewhere. The rural areas in some countries have experienced huge improvements in their lives and retain the realistic expectation of more to come while, in many others, the numbers of the poor have grown and their prospects, apparently, are grim? Why is this difference, and how can we enable more people to move away from poverty. The only hope is to generate employment opportunities in the sustainable non-farm sector in the rural areas. The rural industrialization can provide an answer to the growing problems of poverty, Unemployment and migration. Rural industrialization through rural entrepreneurship development is viewed as one effective means of accelerating the process of rural development and thus, reduce gap in income levels between rural & urban areas. This paper analyses the case of Khadi and Village Industries commission (KVIC) and Maharashtra State Khadi and Village Industries Commission.
Introduction:
In the recent past agriculture in the rural areas became a relatively unrewarding exercise due to unfavorable price structures and poor productivity, resulting in migration to urban areas.
Most of the poor in the rural areas are small farmers; tenants share croppers, artisans and landless agricultural workers. Due to seasonality of agriculture, employment is a...