[6] The reasons for business operating in the rural area are favorable factors such as the appealing dwelling, fresh air, bigger extend headroom, cheaper rental fees, and harmonious relationships with labor.
Between 1990 and 1991, the launch of new economic policies leads to a decline in the output of food grains and an increase in non-food crops such as cotton.
[11] The agriculture industry is crucial as it solved the subsistence of the 2/3 of the population in the field study at Ambedkar Negar district, in which, the labor force of India accounts for 52%, and this sector made the contribution of 15.7% of the Gross domestic product between 2008 and 2009.
There are approximately 91% of the population in the 13 selected villages in India works associated with farming, among these, over 86% are the small and marginal farmers who have an achievement of cultivating 75% of the total arable land.
However, there are still some factors such as the advent of diseconomies caused by the liberalization agenda,[12] the downward trend of the share of the land, the limited job opportunities and production possibilities may lead to the livelihood under the line of poverty.
[13] For example, the commercial products (milk, vegetables, and fruits) are the sources that can be traded in markets and are required by the residents as secured food.
Besides, the small and medium farmers are more likely to foster diversified resources with catering the demand such as the grains, fibers, and oilseeds, which makes more profits.
[15] The hand loom industries in Odisha state, India is followed by the agriculture sector in terms of the contribution of the employment, which maintained the livelihood of the weavers in the low class.
In rural India, the Bastralaya handloom cooperative produces traditional clothes (sarees, lungis) and household's products (bed cover) with dyeing Yarns.
Furthermore, there is a complicated braid art called Ikat, based in Telangana, which weaving prominent patterns on the silk with using environmentally friendly colored threads.
Furthermore, while carrying on the orders, the quality of the product is strictly controlled, such as if the weaver did not meet the standard criteria in terms of the dimension of the sari, the cash fined will be required after rigorously check.
Weavers in this industry should possess Textile skills,[16] learn new knowledge through regular activities and observe the needs of the customer such as the color they preferred for the sarees, these competencies with the help of Bastralaya company will improve social-economic.
However, there are some challenges for enterprise in rural India, such as the limited assets, inadequate skills and labors, unsteady communication system, and weak transport infrastructure.
For example, India rural enterprise has a reliance on the traditional experiences to thrive on, such as the weavers in Sambalpuri Bastralaya Handloom cooperative society limited obtained basic knowledge from parents and community.
[7] Cooperatives originated from the twentieth century, and at an early stage mainly catered to the financial needs of the farmer, especially the advent of harvesting and sowing.
[22] Rural Cooperatives also engaged in distributing quality inputs to farmers by charging maximum price through the activity of procurement.
[7] The dairy cooperatives in rural India help women become involved in the production of milk, acquiring confidence, more specifically, concerning the success of the Amul experiment.
[24] In South India, the large proportion of rural women, especially widows, experienced poverty, uncertainty in the inheritance of land, and barriers of involving in community.