Vol: 2, Issue: 1 2012

Page: 124-134

Rural Entrepreneurship Through SHG's as a Distribution Channel for E-Commerce Companies in Rural Areas

Dr. K. Anjaneyulu

India is predominantly an agrarian economy not because of fertile land or lucrative dividends of agriculture sector, but it is the rural and pastoral society that has accorded the status f agrarian economy. Still three fourth of the population of this country lives in rural areas and depends on agriculture or para agriculture sectors in search oflivelihood.The major problems with farm sector is the excess dependency which has reduced the per capita income.It is learnt from the formal statistics of the country that 61 % of the country still depends up on agriculture sector which contributes only 23 % to the Gross Domestic Product creating a wide dichotomy between the earnings of urban and rural population. The best remedy which can fix this problem is the development of rural enterprises. Indeed, the idea of promoting rural entrepreneurs is not a new concept. Government of India has initiated Khadi and Village Industry Commission (KVIC) way back in fifties to support the growth of village industries. Apart from it, many institutional measures were mooted from time to time to address the problems of rural enterprises. If Rural Areas based SHG’s undertake the distribution channel of online parcels form e- commerce companies, earnings of SHG members will increase enormously.