A lot of rural development schemes and policies focus on how
to inculcate business acumen among the rural poor. Providing them capital and/
or training to open small enterprises for income enhancement is considered a
long lasting solution to end poverty. But how feasible is this approach?
Firstly, entrepreneurship is not something that can be taught to someone. It is
believed that entrepreneurial instinct is inherent in some people and cannot simply
be cultivated. Secondly, not everyone in a small village can become an
entrepreneur. After all, how many tailors or kirana shops are enough for an
entire village. There is a huge risk of supply exceeding demand by encouraging
everyone to become an entrepreneur.
Another important aspect is that when in a
poor and backward village where people are deprived of basic facilities, how
wise is it to sell entrepreneurship as panacea. Yes, it is true that providing
people with feasible livelihoods will go a long way in bettering their economic
position. After all as the saying goes – catch a fish for a man and you feed
him for a day, teach him how to fish and you feed him for life. But, when there
are a lot of existing government schemes that directly address the problem of
entitlements for rural poor, the delivery of the same can a go a long way in
addressing many needs of the rural poor. For e.g. the construction of
Individual Household Latrines (IHHLs) under the Swachh bharat Abhiyan, or the
construction of pucca houses under Indira Awas Yojna, or providing smart cards
under Rashtriya Swasthya Bima Yojna (RSBY). If the rural poor are successfully
linked with these government schemes it will go a long way in their human
development, because not only will their health and living conditions improve
but also the exorbitant amount of money being spent on a regular basis due to
poor living conditions will be drastically cut down. In other words, their
monthly recurring expenditure shall be cut down drastically. This in turn shall ensure that whatever additional income they earn from their entrepreneurial activity is not drained away and the net income registers an increase. Hence, livelihood
enhancement by encouraging rural enterprises is a welcome measure but at the
same time providing rightful entitlements to the rural poor is not something
that can be ignored.
-Prerna Rana
Prerna Rana can be contacted at prerna.rana03@gmail.com
