RURAL ENTREPRENEURSHIP: A REVIEW OF INTERNAL AND EXTERNAL ENVIRONMENTAL FACTORS INFLUENCING THE PERFORMANCE OF MICRO, SMALL AND MEDIUM MANUFACTURING ENTERPRISES

Abstract

Entrepreneurship development in rural areas is increasingly seen as a promising alternative to traditional economic development. The Micro, Small and Medium manufacturing enterprises play an imperative role in the rural economy. They have a major share of contribution towards Gross Domestic Product (GDP) through 45 per cent manufacturing output, 40 per cent exports and 69 per cent employment. Apart from economic aspects, the social role of these enterprises have also been quite significant for achieving the objectives such as removal of poverty, reduction in income inequality, wealth, consumption standard and regional imbalances (Uma Pujar, 2014; Dipanjan Chakmraborty and Barman, 2014). However, the survival and growth of rural Micro, Small and Medium manufacturing enterprises have greatly depended on the dynamic business environment in which it operates. Hence, the study presents a review of the literature on Micro, Small and Medium manufacturing enterprises incepted in rural areas and stated that rural entrepreneurship is a distinct area of entrepreneurship research and practice, with abundant opportunities for balanced regional development.