Socio-economic impact of dairy entrepreneurship on rural households in Hadauti region of Rajasthan

Introduction

Entrepreneurship comprises qualities of an individual for planning, launching and managing one's own venture profitably while creating self-employment and engaging others therein. For healthy development of agriculture, industry or any sphere of an economy, there must be men or women who possess drive ambition, foresight and imagination to break through traditional barriers and transform thereby into practice, individual performing these functions are the entrepreneurs and their enterprising ability and skill is known as entrepreneurship. Entrepreneurship development among rural people is increasingly being recognized as a means to overall development of the rural community. Livestock plays a vital role in the Indian economy by contributing to livelihood security, employment, income and nutritional support to Indian households (Kumar et al. 2016). Dairying is perceived as a subsidiary occupation for vast majority of farming community while it has acquired independent status as main occupation. Entrepreneurship development in dairy sector will be a key driver for promoting and sustaining the momentum of growth. It is essential for exploiting full potential of dairy industry on one hand and providing job opportunities to the unemployed youth of the country. Dairy entrepreneurship refers to the application of entrepreneurial skills, innovation, risk-taking and management within the dairy farming and processing sector. In many developing economies, particularly India, which is the world's largest milk producer, dairy entrepreneurship is not merely a business model but a key pillar of rural development, offering a powerful tool for poverty alleviation, employment generation and women empowerment. India is primarily an agriculture-based country, providing livelihood to the majority of the population, which is about 58.00% with livestock being an important sub-sector. The dairy sector has emerged as one of the most dynamic components of agriculture contributing significantly to income generation, employment creation and nutritional security. With increasing demand for milk and milk products, dairy farming has evolved from a traditional subsistence activity into a commercially viable entrepreneurial venture. Dairy entrepreneurship has emerged as a promising livelihood option in the Kota division of Rajasthan. Dairy entrepreneurship has emerged as an important enterprise for enhancing the income, employment and overall standard of living of rural households. Impact Assessment is a mean of measuring the effectiveness of a programme/technologies/activities and judging the significance of changes brought about by those activities. Therefore, there is a need to systematically examine the socio-economic impact of dairy entrepreneurship in the Hadauti region of Rajasthan. The study aims to analyze how dairy-based entrepreneurial activities affect the economic condition, social status, and quality of life of rural families, while also identifying the major constraints and opportunities associated with the sector. The findings of the study may help policymakers, development agencies and financial institutions formulate effective strategies for promoting sustainable dairy entrepreneurship in the region Hadauti region of Rajasthan. Hence, keeping in the mind, the study entitled "Socio-Economic Impact of Dairy Entrepreneurship in Hadauti Region of Rajasthan" has been undertaken.

Research methodology

The present study was conducted in 'Hadauti" region (Kota Division) of Rajasthan, India. The Kota and Bundi districts of 'Hadauti' region of Rajasthan was selected purposively, wherein Krishi Vigyan Kendras of Agriculture University, Kota are involved in developing dairy entrepreneurial skills among unemployed youth and farmers of the district. KVK, Kota and Bundi played a major role in creating jobs and enhancing income opportunities for unemployed youth and farmers of the district. A multistage sampling technique was adopted for the present study. Krishi Vigyan Kendras (KVKs), Kota and Bundi organized a series of dairy entrepreneurship development training programmes during the period from 2013 to 2023 with the objective of promoting self-employment and generating income opportunities among rural youth. A complete list of trainees comprised 394 trainees from KVK, Kota and 250 trainees from KVK, Bundi was obtained from the records maintained at the respective KVKs. Thereafter, a proportionate random sampling technique was employed to select the respondents. Accordingly, 49 dairy entrepreneurs were selected from Kota district and 71 dairy entrepreneurs from Bundi district. Thus, the total sample size of 120 respondents was proportionately selected for the study. All the social, economic, psychological and resources utilization impact statements were finalized after discussion with experts. The respondents were asked to give their response in three-point continuum. The three-point continuum on which the response was obtained included; to great extent, to some extent and not at all comprising scores of 2, 1 and 0, respectively. The score of each statement was summed up to obtain final score which indicates impact. The socioeconomic impact was calculated by using impact index formula:

𝐼𝑚𝑝𝑎𝑐𝑡 𝑖𝑛𝑑𝑒𝑥 = 𝑇𝑜𝑡𝑎𝑙 𝑜𝑏𝑡𝑎𝑖𝑛𝑒𝑑 𝑠𝑐𝑜𝑟𝑒 𝑀𝑎𝑥𝑖𝑚𝑢𝑚 𝑝𝑜𝑠𝑠𝑖𝑏𝑙𝑒 𝑠𝑐𝑜𝑟𝑒 × 100

The total obtained score for each respondent was computed by multiplying the frequency of responses under each response category by their respective assigned scores and then summing the score. Thus, the total obtained score was computed as:

Where: f 2 = Frequency of respondents who expressed 'To great extent' f 1 = Frequency of respondents who expressed 'To some extent' f 0 = Frequency of respondents who expressed 'Not at all' The maximum possible score for each statement was calculated by multiplying the maximum obtainable score per respondent by the total number of respondents. The impact index obtained by each respondent was used to classify the level of socio-economic impact into three categories. Respondents with an impact index of < 33.33 per cent were classified as having a low level of impact, those with an impact index of 33.33-66.66 per cent as having a medium level of impact and those with an impact index of > 66.66 per cent as having a high level of impact. This classification was adopted to assess the extent of socio-economic impact of dairy entrepreneurship among the respondents.

Results and discussion

In this study, the impact was measured in terms of socio-economic improvement due to the consequences of improved scientific dairy practices. Improvement is the change that occurs in an individual or a social system as a consequence of adopting an innovation or enterprise. In the present study, improvement has been operationally defined as the changes that occurred in the livelihood of dairy entrepreneurs as a result of their engagement in dairy entrepreneurship. The socio-economic impact was assessed under four major dimensions, namely; social, economic, psychological and resource utilization. The social dimension comprised social, educational and social participation, lifestyle and material possession and extension and institutional linkage. The economic dimension included income, saving and investment, employment generation, credit and financial management and marketing and market linkage. In addition, psychological and resource utilization aspects were also considered to comprehensively assess the impact of dairy entrepreneurship on the livelihood of dairy entrepreneurs. Based on the information collected from the dairy entrepreneurs, the impact under each dimension was analysed to determine the extent of socio-economic improvement brought about by dairy entrepreneurship. An attempt was also made to assess the overall socio-economic impact of dairy entrepreneurship on the livelihood of dairy entrepreneurs.

Socio-economic impact of dairy entrepreneurship on rural households

The socio-economic impact was assessed under four major dimensions, namely; social, economic, psychological and resource utilization. The social dimension comprised social, educational and social participation, lifestyle and material possession and extension and institutional linkage. The economic dimension included income, saving and investment, employment generation, credit and financial management and marketing and market linkage. In addition, psychological and resource utilization aspects were also considered to comprehensively assess the impact of dairy entrepreneurship on the livelihood of dairy entrepreneurs. Based on the information collected from the dairy entrepreneurs, the impact under each dimension was analysed to determine the extent of socio-economic improvement brought about by dairy entrepreneurship. An attempt was also made to assess the overall socio-economic impact of dairy entrepreneurship on the livelihood of dairy entrepreneurs.

Social impact of dairy entrepreneurship

The data presented in Table 1 revealed that extension and institutional linkage recorded the highest impact index (71.58%) and was categorized under the high level of impact. This was followed by education and social participation, which registered an impact index of 64.94 per cent, indicating a medium level of impact. Similarly, social status recorded an impact index of 53.95 per cent, while lifestyle and material possession registered the impact index of 51.16 per cent. Both these aspects were categorized under the medium level of impact of dairy entrepreneurship on rural households. This might be due to the fact that all the respondents were trainees of KVK, where they regularly participated in training programmes, demonstrations, field days and advisory activities. Such programmes might have strengthened their interaction with scientists, extension personnel, officials of the Department of Animal Husbandry and dairy development agencies.

Economic impact of dairy entrepreneurship

The data presented in Table 2 found that employment generation recorded the highest impact index (74.11%) and was categorized under the high level of impact. This was followed by income, saving and investment, which registered an impact index of 72.91 per cent and was categorized under the high level of impact. Further, marketing and market linkage recorded an impact index of 69.27 per cent, while credit and financial management registered the impact index of 67.25 per cent. Both these aspects were categorized under the medium level of economic impact of dairy entrepreneurship on rural households. This might be due to that dairy entrepreneurship provides year-round employment opportunities through activities such as feeding, milking, fodder cultivation, breeding, animal health care and marketing of milk. Since dairy farming requires regular labour throughout the year, it ensures continuous engagement of both family and hired labour. Further, the technical knowledge and skills acquired through Krishi Vigyan Kendra training programmes might have encouraged dairy entrepreneurs to expand and manage their dairy enterprises more efficiently.

Psychological impact of dairy entrepreneurship

The data presented in Table 3 indicated that improved risk-bearing capacity, decision-making confidence and innovative behaviour in dairy management (impact index of 77.91%) and strengthened leadership abilities, self-sufficiency and a positive attitude towards dairy activities (impact index of 73.33%) recorded the highest impact index and was categorized under the high level of impact. Further, increased economic motivation toward dairy entrepreneurship with impact index of 59.16%, problem-solving ability in dairy farming (impact index of 64.16%) and improved market orientation in planning dairy activities (impact index of 55.41%) were categorized under the medium level of psychological impact of dairy entrepreneurship on rural households.

Resource utilization impact of dairy entrepreneurship

The data presented in Table 4 shows that that improvement in soil fertility through the use of farmyard manure from dairy animals recorded the highest impact index (78.75%) and was categorized under the high level of impact. This was followed by efficient utilization of dairy resources in reducing the overall cost of farming, which registered an impact index of 76.25 per cent and proper and improved utilization of crop residues and farm by-products, which recorded an impact index of 75.83 per cent. Both these aspects were also categorized under the high level of impact of dairy entrepreneurship on rural households. Further, efficient utilization of available farm resources registered an impact index of 72.91 per cent, followed by efficient use of locally available feed and fodder (72.08%), effective utilization of dairy waste for biogas or other energy sources (71.11%) and effective utilization of family labour after adopting dairy farming (70.00%). All these aspects were categorized under the high level of impact. This might be due to that the regular availability of dung from dairy animals, which was utilized as farmyard manure in crop fields. The application of farmyard manure improved the physical, chemical and biological properties of the soil and reduced dependence on chemical fertilizers. In addition, the technical guidance provided through KVK training programmes might have motivated dairy entrepreneurs to adopt integrated nutrient management practices.

Overall impact of dairy entrepreneurs

The data presented in Table 5 revealed that resource utilization impact recorded the highest impact index (73.84%) and was categorized under the high level of impact. This was followed by economic impact, which recorded an impact index of 69.38 per cent and was also categorized under the high level of impact. Further, psychological impact recorded an impact index of 65.99 per cent, while social impact registered an impact index of 60.40 per cent. Both these dimensions were categorized under the medium level of impact of dairy entrepreneurship on rural households. These findings are also supported by the finding of Sushma et al. (2016) [1] , Tesfaye et al. (2022) [2] , Barot et al. (2023) [3] , Yadav et al. (2024) [4] and Adiri et al. (2025) [5] .

Conclusion

The study concluded that dairy entrepreneurship had a positive socioeconomic impact on rural households. Economic and resource utilization impacts were found at a high level, while social and psychological impacts were at a medium level. Dairy entrepreneurship contributed to improved employment and income opportunities, better utilization of farm resources, enhanced decision-making and risk-bearing capacity and strengthened extension and institutional linkages.

Overall, dairy entrepreneurship contributed to improving the livelihood conditions of rural households. Based on the findings of the study, it is suggested that extension agencies, Krishi Vigyan Kendras and the Department of Animal Husbandry should strengthen needbased technical guidance and capacity-building programmes for dairy farmers. Greater emphasis should be given to improving entrepreneurial skills, decision-making, risk-bearing capacity and efficient management of dairy enterprises.

References

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6. How to cite this article: Meena U, Meena K, Tanwar NK. Socio-economic impact of dairy entrepreneurship on rural households in Hadauti region of Rajasthan. International Journal of Agriculture Extension and Social Development. 2026;9(10):234237. doi: https://www.doi.org/10.33545/26180723.2026.v9.i10d. 4382