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Entrepreneurial Development Programme EDPs | Objectives, Need and Weakness of EDPs | Entrepreneurship Development Notes

Entrepreneurial development programme (edps), entrepreneurship development notes, for b.com, bba and mba.

entrepreneurship development program need and objectives

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In the post I have given a brief introduction of Entrepreneurs Development Programmes (EDPs) . These notes are useful for the students of B.Com, BBA and MBA of various universities. For more notes visit our website regularly.

ENTREPRENEURIAL DEVELOPMENT PROGRAMMES (EDPs)

Entrepreneurial Development Programme (EDP) can be defined as a programme, formally designed to help an individual in strengthening his/her entrepreneurial motive and in acquiring skill and capabilities necessary for playing entrepreneurial role effectively. In fact, it is an academic exercise to build up human resources by including them to take up entrepreneurial activities through motivation and developing the required entrepreneurial skills through exposure creation to effectively manage their enterprises. According to N.P. Singh, EDP is not merely a training programme. It is a process of:

a)       Enhancing and motivation, knowledge and skills of the potential entrepreneurs;

b)       Arousing and reforming the entrepreneurial behavior in their day-to-day activities; and

c)        Assisting them develop their own ventures or enterprise as a sequel to entrepreneurial action.

Thus, EDPs endeavous to change educate and equip a person to become a successful entrepreneur. The whole process envisages developing the participant’s latent qualities and skills as also equipping him with other capabilities. By the end of the programme, the participant is expected to be in a position to crystalise his vision in to action and launch and manage his enterprise with competence. The system involves a selection procedure and only those who prove to have certain minimum initial traits are selected as potential entrepreneurs to be trained up to develop the other required traits through interventions.

History of Entrepreneurship Development in India

Traditionally, Indian economy is purely agriculture based due to which our country is still a backward country. The experience all over the world proves that the economies which are predominately agrarian in character continue to remain backward and fails to sustain development. To diversify the Indian economy and to accelerate the entrepreneurial activities, The Government of India soon after attaining independence laid down its first Industrial Policy Resolution in 1948. In order to promote local entrepreneurs, ban on the imports of a large number of consumers and other goods imposed by the Government of India during the post independence period. Subsequently, during 1953-54, the Ministry of Commerce and Industry, Government of India, invited an International Planning Team under the courtesy of Ford Foundation to report on measures that could be adopted to develop small scale industries for promotion of indigenous entrepreneurship. The team strongly recommended the need for development of “Modern Small Scale Industries” to meet the need of time and pace. The team also recommended several measures for promotion and development of entrepreneurship in this sector of the economy.

Since then, the Government of India has been adopting a series of measures for promotion of local entrepreneurship in the country. In course of time, with unemployment problem taking serious turn, the self employment and Entrepreneurial Development Programmes (EDPs) came to receive serious attention in the country. The literature available indicates that the birth of training effort for the promotion of entrepreneurship in India was purely an indigenous initiative i.e. the “Technician Scheme” launched in the year by two state level agencies of Gujarat. The scheme visualized 100% finance without collaterals. A large number of people took the advantage of this scheme. The real gain of the scheme was the realization that there is vast entrepreneurial potential available in the country that could be tapped and developed through appropriate training intervention. This led the Gujarat Industrial Investment Corporation (GIIC), along with other state level agencies to conceptualize, mount and develop, in 1970, a 3-month long training programme known as Entrepreneurship Development Programme (EDP). However, with the number of programme increasing, the need for having a separate state level organization to look into selection, training and development of first generation entrepreneurs was strongly felt. Thus, the Centre for Entrepreneurship Development (CED), Gujarat, the first of its kind in the country came into existence in 1979 with the support of the Government of Gujarat and the industrial promotion and the assistance agencies in the state.

Meanwhile, the success story of Gujarat experiment spread far and wide and the Ford Foundation encouraged the Gujarat team to test out EDP strategy in a few less developed states like Rajasthan, Assam, etc. Several development agencies in other parts of the country also mounted their own EDPs and the Gujarat CED provided professional support to some of them.

There is another story of the origin of Entrepreneurship Development Programme (EDP) in India. The story suggests that the well known behavioural scientist David McClelland at Harvard University made an interesting investigation into why certain societies developed great creative powers at particular period of time of their history. He found that “the need for achievement” was the answer. It was the “need to achieve” that motivated people to work hard and money making was incidental. Money was only a measure of achievement, not its core motivation.

In order to answer the next question whether this need for achievement could be induced, McClelland conducted a five-year experimental study in one of the prosperous distracts of Andhra Pradesh in India in collaboration with the Small Industry Extension Training Institute (SIET); which later came to be known as the National Institute for Small Industry Extension Training (NISIET) and now called National Institute for Micro Small and Medium Enterprises (ni-msme), Hyderabad. This experiment is popularly known as “Kakinda Experiment”. Under this experiment, young persons were selected and put through a three month training programme and motivation to see fresh goals.

One significant conclusion of the experiment was that traditional belief did not seem to inhibit an entrepreneur and that suitable training can provide the necessary motivation to entrepreneurs. It was the Kakinda Experiment that made people appreciate the need for entrepreneurial training (now popularly known as EDPs) to induce motivation and competence among young prospective entrepreneurs. Based on this realization India embarked in 1971 on a massive programme of entrepreneurship development. At present there are more than 700 all India and state level institutions conduct EDPs.

The above findings reveal that EDP was conceptualized almost at the same time in two parts of India viz Gujarat and Andhra Pradesh. However, while the Gujarat model was applied first to organize massive EDPs in 1970, the Andhra Pradesh (SIET) model found its massive application in 1071.

Objectives of EDP : The major objectives of the Entrepreneurship Development Programmes (EDPs) are to:

a)       Develop and strengthen the entrepreneurial quality, i.e. motivation or need for achievement.

b)       Analyse environmental set up relating to small industry and small business.

c)        Select the product.

d)       Formulate proposal for the product.

e)       Understand the process and procedure involved in setting up a small enterprise.

f)        Know the sources of help and support available for starting a small scale industry.

g)       Acquire the necessary managerial skills required to run a small-scale industry.

h)       Know the pros and cons in becoming an entrepreneur.

i)         Appreciate the needed entrepreneurial discipline.

j)         Besides, some of the other important objectives of the EDPs are to:

k)       Let the entrepreneur himself / herself set or reset objectives for his / her enterprise and strive for their realization.

l)         Prepare him / her to accept the uncertainty in running a business.

m)     Enable him / her to take decisions.

n)       Enable to communicate clearly and effectively.

o)       Develop a broad vision about the business.

p)       Make him subscribe to the industrial democracy.

q)       Develop passion for integrity and honesty.

r)        Make him learn compliance with law.

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Also read: 1. introduction to entrepreneurs, traits and qualities of entrepreneurs 2. rural entrepreneurs and woman entrepreneurs notes 3. self help groups 4. entrepreneurship development programme (edps) 5. leadership - styles and qualities 6. msme promotional agencies ************************************ also read (dibrugarh university) 1. entreprenurship development question papers 2. entrepreneurship development solved question papers 3. entrepreneurship development mcqs 4. entrepreneurship develoment important questions for upcoming exams, need and importance of edp.

Importance of entrepreneurship development Programme  (EDP) is to enable entrepreneurs initiating and sustaining the process of economic development in the following ways:

1.Creation of Employment Opportunities : Unemployment is one of the most important problems confronting developing and underdevelopment countries, EDP’s enable prospective entrepreneurs in the setting up of their own units, thus enabling them to get self employment. With the setting up of more and more units by entrepreneurs, both on small and large scale, numerous job opportunities are created for the others.

2. Capital Formation : It is not possible to set up an enterprise without adequate funds. Entrepreneur as an organizer of factors of production employs his own as well as borrowed resources for the setting up of his enterprise. Entrepreneur mobilizes idle savings of the public and put them to productive use. In this way he helps in capital formation, which is so essential for the industrial and economic development of a country. Various development banks like ICICI, IFCI, IDBI; SFCs, SIDCs take initiative in promoting entrepreneurship through assistance to various agencies involved in EDP and by providing financial assistance to new entrepreneurs.

3.Balanced Regional Development : Small scale units can be set up in industrially backward and remote areas with limited financial resources. Successful EDP’s assisted in accelerating the pace of industrialization in the backward areas and reduces the concentration of economic power in the hands of a few. Setting up of more units leads to more development of backward areas and balanced regional development.

4. Use of Local Resources : In the absence of any initiative local resources are likely to remain unutilized. Proper use of these resources can result in the progress or development of the area and that too at lower cost. Effective EDPs can help in the proper use of local resources by providing guidance, assistance, education and training to the prospective entrepreneurs.

5.Improvement in per Capital Income : Entrepreneurs are always on the lookout for opportunities. They explore and exploit the opportunities. Entrepreneurs take lead in organizing various factors of production by putting them into productive use through the setting up of enterprises. More enterprises will lead to more production, employment and generation of wealth in the form of goods and services. It will result in the increase in the overall productivity and per capita income in the country. EDPs play a positive role in the setting of more units and thus help in generation of more employment and income.

6.Improvement in the Standard of Living : Entrepreneurs by adopting latest innovations help in the production of wide variety of goods & services. By making efficient use of the resources, they start producing more of better quality and that too at lower costs. This enable them to ensure easy availability of better quality products at lower prices to the consumers which result in the improvement in the standard of living of the people.

7.Economic Independence : Entrepreneurs enable a country to produce wide variety of better quality goods & services and that too at competitive prices. They develop substitutes of the goods being imported and thus prevent over-dependence on foreign countries and at the same time help in the saving of precious foreign exchange. Through sale of their surplus products in foreign market entrepreneurs enable a country to earn foreign exchange, which is so essential for meeting developmental needs of the economy. Export promotion and import substitution thus help in promoting economic independence of the economy.

8.Preventing Industrial Slums : Industrially developed areas are faced with problem of industrial slums, which result in over burdening of civic amenities and adverse impact on the health of people. Dispersal of industries can help in the overcoming of this grave problem. EDPs can help in preventing spread of industrial slums by providing various incentives, subsidies and infrastructural support to entrepreneurs for setting up their enterprises in industrially backward areas. This will also help in reducing pollution and overtaxing of civic amenities.

9. Helps in searching and exploiting opportunities : There are many opportunities for entrepreneurs in various fields like-Electronics, medicine, engineering, agriculture, food technology and packing, communication etc. EDPs help in searching such opportunities and provide necessary information, guidance and assistance in the search and exploiting these opportunities.

10. Enhancing managerial abilities : Entrepreneur development programmes help the entrepreneurs to enhance their organizing and managerial abilities so that they can run their enterprise efficiently and successfully. This is done through organizing educational, management, training and orientation programmes. Various specialized agencies like National Institute for Entrepreneurship and small Business Development(NIESBUD),New Delhi and Entrepreneurship Development Institute of India(EDII), Ahmadabad are engaged in entrepreneurship programmes.

Weakness and Problems of entrepreneurship development programmes (EDPs) in India

1. No Policy at the National Level.   Though Government of India is fully aware about the importance of entrepreneurial development, yet we do not have a national policy on entrepreneurship. It is expected that the government will formulate and enforce a policy aimed at promoting balanced regional development of various areas through promotion of entrepreneurship.

2. Problems at the Pre training Phase.   Various problems faced in this phase are — identification of business opportunities, finding   &   locating target group, selection of trainee & trainers etc.

3. Over Estimation of Trainees.   Under EDPs it is assumed that the trainees have aptitude for self employment and training will motivate and enable the trainees in the successful setting up and managing of their enterprises. These agencies thus overestimate the aptitude and capabilities of the educated youth. Thus on one hand the EDPs do not impart sufficient training and on the other financial institutions are not prepared to finance these risky enterprises set up by the not so competent entrepreneurs.

4. Duration of EDPs.   An attempt is made during the conduct of EDPs to prepare prospective entrepreneurs thoroughly for the various problems they will be encountering during the setting up and running of their enterprises. Duration of most of these EDPs varies between 4 to 6 weeks, which is too short a period to instill basic managerial skills in the entrepreneurs. Thus the very objective to develop and strengthen entrepreneurial qualities and motivation is defeated.

5. Non Availability of Infrastructural Facilities.   No prior planning is done for the conduct of EDPs. EDPs conducted in rural and backward areas lack infrastructural facilities like proper class room suitable guest speakers, boarding and lodging etc.

6. Improper Methodology.   The course contents are not standardized and most of the agencies engaged in EDPs are themselves not fully clear about what they are supposed to do for the attainment of pre-determined goals. This puts a question mark on the utility of these programmes.

7. Mode of Selection.   There is no uniform procedure adopted by various agencies for the identification of prospective entrepreneurs. Organisations conducting EDPs prefer those persons who have some project ideas of their own and thus this opportunity is not provided to all the interested candidates.

8. Non Availability of Competent Faculty.   Firstly there is problem of non availability of competent teachers and even when they are available, they are not prepared to take classes in small towns and backward areas. This naturally creates problems for the agencies conducting EDP.

9. Poor Response of Financial Institutions.   Entrepreneurs are not able to offer collateral security for the grant of loans. Banks are not prepared to play with the public money and hence they impose various conditions for the grant of loans. Those entrepreneurs who fail to comply with the conditions are not able to get loan and hence their dream of setting up their own enterprises is shattered. Helpful attitude of lending institutions will go a long way in stimulating entrepreneurial climate.

Skill development  Programme

Skill development and vocational training programs are conceptualized, executed and monitored by various organizations, working closely with the government of India. There are various plans and schemes that are dedicated to achieve scalable skilling with quality and higher productivity, particularly in the unorganized  or informal sector which accounts for  83% of India’s workforce. The Ministry of Skill Development and Entrepreneurship (MSDE) is responsible for the co-ordination of overall skill development efforts across the country, building the vocational and technical training framework, skill up-gradation, building of new skills, and innovative thinking not only for existing jobs but also jobs that are to be created.

Posted by Kumar Nirmal Prasad

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Entrepreneurship development programmes: meaning, need and objectives of edp.

entrepreneurship development program need and objectives

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Entrepreneurship Development Programmes: Meaning, Need and Objectives of EDP!

As the term itself denotes, EDP is a programme meant to develop entrepreneurial abilities among the people. In other words, it refers to inculcation, development, and polishing of entrepreneurial skills into a person needed to establish and successfully run his / her enterprise. Thus, the concept of entrepreneurship development programme involves equipping a person with the required skills and knowledge needed for starting and running the enterprise.

Let us also consider a few important definitions of EDPs given by institutions and experts:

Small Industries Extension and Training Institute (SIET 1974), now National Institute of Small Industry Extension Training (NISIET), Hyderabad defined EDP as “an attempt to develop a person as entrepreneur through structural training.

The main purpose of such entrepreneurship development programme is to widen the base of entrepreneurship by development achievement motivation and entrepreneurial skills among the less privileged sections of the society.”

According to N. P. Singh (1985), “Entrepreneurship Development Programme is designed to help an individual in strengthening his entrepreneurial motive and in acquiring skills and capabilities necessary for playing his entrepreneurial role effectively. It is necessary to promote this understanding of motives and their impact on entrepreneurial values and behaviour for this purpose.” Now, we can easily define EDP as a planned effort to identify, inculcate, develop, and polish the capabilities and skills as the prerequisites of a person to become and behave as an entrepreneur.

Need for EDPs :

That, entrepreneurs possess certain competencies or traits. These competencies or traits are the underlying characteristics of the entrepreneurs which result in superior performance and which distinguish successful entrepreneurs from the unsuccessful ones.

Then, the important question arises is: where do these traits come from? Or, whether these traits are in born in the entrepreneurs or can be induced and developed? In other words, whether the entrepreneurs are born or made? Behavioural scientists have tried to seek answers to these questions.

A well-known behavioural scientist David C. McClelland (1961) at Harvard University made an interesting investigation-cum-experiment into why certain societies displayed great creative powers at particular periods of their history? What was the cause of these creative bursts of energy? He found that ‘the need for achievement (n’ ach factor)’ was the answer to this question. It was the need for achievement that motivates people to work hard. According to him, money- making was incidental. It was only a measure of achievement, not its motivation.

In order to answer the next question whether this need for achievement could be induced, he conducted a five-year experimental study in Kakinada, i.e. one of the prosperous districts of Andhra Pradesh in India in collaboration with Small Industries Extension and Training Institute (SIET), Hyderabad.

This experiment is popularly known as ‘Kakinada Experiment’. Under this experiment, young persons were selected and put through a three-month training programme and motivated to see fresh goals.

One of the significant conclusions of the experiment was that the traditional beliefs did not seem to inhibit an entrepreneur and that the suitable training can provide the necessary motivation to the entrepreneurs (McClelland & Winter 1969). The achievement motivation had a positive impact on the performance of entrepreneurs.

In fact, the ‘Kakinada Experiment’ could be treated as a precursor to the present day EDP inputs on behavioural aspects. In a sense, ‘Kakinada Experiment’ is considered as the seed for the Entrepreneurship Development Programmes (EDPs) in India.

The fact remains that it was the ‘Kakinada Experiment’ that made people appreciate the need for and importance of the entrepreneurial training, now popularly known as ‘EDPs’, to induce motivation and competence among the young prospective entrepreneurs.

Based on this, it was the Gujarat Industrial Investment Corporation (GIIC) which, for the first time, started a three-month training programmes on entrepreneurship development. Impressed by the results of GIIC’s this training programme, the Government of India embarked, in 1971, on a massive programme on entrepreneurship development. Since then, there is no looking back in this front. By now, there are some 686 all-India and State level institutions engaged in conducting EDPs in hundreds imparting training to the candidates in thousands.

Till now, 12 State Governments have established state-level Centre for Entrepreneurship Development (CED) or Institute of Entrepreneurship Development (lED) to develop entrepreneurship by conducting EDPs. Today, the EDP in India has proliferated to such a magnitude that it has emerged as a national movement. It is worth mentioning that India operates the oldest and largest programmes for entrepreneurship development in any developing country.

The impact of India’s EDP movement is borne by the fact that the Indian model of entrepreneurship development is being adopted by some of the developing countries of Asia and Africa. Programmes similar to India’s EDPs are conducted in other countries also, for example, ‘Junior Achievement Programme’ based on the principle of ‘catch them young’ in USA and ‘Young Enterprises’ in the U. K.

Objectives of EDP :

The major objectives of the Entrepreneurship Development Programmes (EDPs) are to:

a. Develop and strengthen the entrepreneurial quality, i.e. motivation or need for achievement.

b. Analyse environmental set up relating to small industry and small business.

c. Select the product.

d. Formulate proposal for the product.

e. Understand the process and procedure involved in setting up a small enterprise.

f. Know the sources of help and support available for starting a small scale industry.

g. Acquire the necessary managerial skills required to run a small-scale industry.

h. Know the pros and cons in becoming an entrepreneur.

i. Appreciate the needed entrepreneurial discipline.

j. Besides, some of the other important objectives of the EDPs are to:

k. Let the entrepreneur himself / herself set or reset objectives for his / her enterprise and strive for their realization.

l. Prepare him / her to accept the uncertainty in running a business.

m. Enable him / her to take decisions.

n. Enable to communicate clearly and effectively.

o. Develop a broad vision about the business.

p. Make him subscribe to the industrial democracy.

q. Develop passion for integrity and honesty.

r. Make him learn compliance with law.

Related Articles:

  • Phase of Entrepreneurship Development Programme
  • Entrepreneurship Development Programmes : Evaluation and Problems of EDPs

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Entrepreneurial Development Programmes (EDP): Meaning, Phases, Importance and Objectives

Meaning of entrepreneurial development programme (edp).

Entrepreneurial development programme refers to a programme formally designed to help individuals in strengthening their entrepreneurial skills and capabilities. It is an overall process aimed at improving all those competencies and skills-set of persons that are essential for carrying out the role of entrepreneurial in effective manner. In simple terms, this is academic exercise focused on building up human resources by including them to take up the entrepreneurial functions via motivating and developing the required skills. The entrepreneurial skills are created among individuals via exposure creation to systematically manage their organization. 

The entrepreneurial development programme is designed at promoting the small enterprises via tapping latent talents of capable entrepreneurs through training. It equips the person with required knowledge and skills needed for starting and running a business enterprise. In today’s time, this has become a professional task that extensively encourages the development of private businesses. It is far more than just a training where all possible transformations are brought within the individual for turning him/her into successful entrepreneur. Once the participant completes this programme, he/she is able to crystallize his/her vision into action, and launch and manage the business enterprise with excellency. A selection procedure is involved within the entrepreneurial development programme, where only peoples possessing certain minimum initial traits are chosen as potential entrepreneurs for training, in order to develop other needed traits via interventions. 

Phases of Entrepreneurial Development Programme (EDP)

There are three phases involved within the Entrepreneurial development programme that are well-explained in points given below: – 

Pre-Training Phase

Pre-training phase is regarded as introductory phase where entrepreneurial development programmes are launched. There are wide-spectrum of activities that are performed within this phase, such as:

  • Recognition of right location where operations should be initiated like a district or town.
  • Choosing the individuals as project leader or course coordinator for coordinating all activities related to EDP.
  • Organizing the base infrastructural facilities associated with the programme. 
  • Performing environmental scanning or industry survey in order to find out the better business opportunities.
  • Development of various plans related with the programme, such as promotional activities using electronic or print media, posters, etc., contacting business experts, different agencies and NGOs, printing the application forms, establishment of selection committee, preparation of budget and getting approval form concerned management, and deciding the required-based elements within the syllabus of training programme and contacting guest faculties for training session. 
  • Connecting with distinct agencies like banks, NSIC, DICs, SISI and so on. 
  • Organizing number of industrial motivational campaigns for increasing the number of applicants.

Training Phase

The key role of any entrepreneurial development programme is providing training to future entrepreneurs and helping them in establishment of enterprises. The normal duration of EDP varies from 4 to 6 weeks and is generally a full-time course. Programme design clearly explains the objectives, training input and centre of focus. 

Generally, it is believed that trainees don’t possess much information about the change due to which new programme is prepared. Once the training programme is terminated, every trainee should appraise himself in order to have clear view about his/her future endeavours. 

Post-Training Phase

Post-training phase is also termed as the phase of follow-up assistance. During this phase, all candidates who have successfully completed their training programmes are provided with post-training assistance. It is very crucial as majority of entrepreneurs face lot of difficulties in the implementation of business plan, after completion of their training programme. Therefore, the training organization with the help of distinct counselling sessions offer full support to trainees. 

Member such as commercial banks, State financial corporation and District industries centre come all together to provide all possible assistance to entrepreneurs on the basis of mentioned goals:

  • Assisting trainees in appropriate manner such that business plan can be effectively realized by them.
  • Analysing the progress made so far in the implementation of business plan.
  • Evaluation of post-training approach.
  • Offering escort services to trainees via taking help from distinct financial and promotional institutes. 

In general, the follow-up action tools and meetings conducted after every 3 years of training completion are: Telephonic follow up, team meetings, postal questionaries and individual contact by trainer. 

There are several public as well as private institutions offering assistance to entrepreneurs in India. Some of them are National alliance of young entrepreneurs (NAYE), Technical consultancy organisation (TCO), Small industries development organization (SIDO), Entrepreneurship development institute of India (EDI), Small-scale industrial development bank of India (SIDBI), etc. 

Importance of Entrepreneurial Development Programme (EDP)

Various importance of entrepreneurial development programme are well-discussed in points given below: – 

Formation of Employment opportunities

The Entrepreneurial development programmes (EDP) generates employment opportunities on large scale in both developing as well as under-developed nations. It helps and motivate people for building up and establishing their own business units, thereby enabling them to become self-employed. EDP, by establishing a large number of business enterprises, create abundant job opportunities for other people. When more and more people become successful entrepreneurs, they provide job opportunities to large number of people within their business units. 

Effective utilization of local resources

New entrepreneurs utilize the locally available resources in the most efficient manner. Such utilization of resources available in particular area or region plays a key role in overall development of that area at minimal cost. Entrepreneurial development programme guides, educate and teach the entrepreneurs for utilizing the local resources in efficient manner. 

Provides adequate capital

Establishment of business enterprises require a large amount of capital. This financial assistance is offered by distinct EDP agencies. The Entrepreneurial development programme institution provide instructions to distinct development banks such as IDBI, SIDCs, ICICI, IFCI, etc, for taking initiatives toward promotion of entrepreneurship. 

Enhancing per capital income

The entrepreneurs carry ability to properly organize the factors of production and utilize them in most efficient manner via setting up business enterprise. All these developments result in enhanced production, employment and wealth generation. As a result of all this, the overall productivity and per capital income of economy rises. 

Economic Independence

Entrepreneurial development programme strengthens the entrepreneurs for producing large variety of products in big quantities at competitive prices. This also assist entrepreneurs in developing the substitutes of imported products that avoids the company’s dependency on other foreign nations. It ultimately saves large foreign exchange reserve of the country. 

Reduction of social tension

A large number of youths and educated people in society are in state of social tension and unrest. They get distracted and are unable to find right direction in their careers due to this state of social tension. Many students get frustrated at not getting the right job after completing their studies. EDP help individuals under such situation by offering them proper guidance, training, assistance and support for setting up new business enterprises. As a result of all this, the people generate self-employment opportunities, thereby bringing down the social tension among peoples in society. 

Facilitation of overall development

Entrepreneurial development programmes play an effective role in the overall development of country. It facilitates the development via producing new product, innovative services, low priced consumer goods, employment opportunities, raising the overall productivity and standard of living. All this ultimately leads to overall development of economy and nation. 

Prevention of industrial slums

The industrial slums is one of the serious problems faced by most of developed industrial areas. This results in overall burdening of public amenities and also negatively influences the public health. Entrepreneurial development programme provides distinct subsidies, incentives, support for infrastructural development and financial aid to new entrepreneurs for setting up their business units, thereby, avoiding the growth of industrial slums. 

Improves standard of living

Entrepreneurial development programmes offer innovative methods and latest technologies to business entrepreneurs for production of large quantities of products at minimal cost. This also enable entrepreneurs in efficiently utilizing the available resources and producing high quality products. More and more peoples are able to utilize the quality products when available at lower prices, and this automatically raises the standard of living for peoples. 

Objectives of Entrepreneurial Development Programme (EDP)

The objectives of entrepreneurial development programme are as follows: – 

Developing the entrepreneurial motivation

The EDP aims at developing the entrepreneurial motivation among individuals. Training inputs provided under these programmes are focused on inducing and enhancing the need for achieving results among participants. All efforts revolve around inducing confidence and positive attitude in each of the participants towards business. The motivation may be of any type like internal or external, financial or non-financial, etc. EDP denotes activating and directing energy among the individuals. The ultimate goal of this programme is to influence participants toward starting their own business post completion of their development programme. 

Analysing the environment

Entrepreneurial development programmes do proper analysis of environment that affects the success of business to great extent. There are numerous environmental factors affecting the business both directly and indirectly, such as natural, economical, social, political, legal, technological, etc. Entrepreneurs learn to analyse the business environment with the help of such programmes. After a proper analysis of all such environmental factors, entrepreneur can easily face the competition and avail best opportunities available in environment.  

Selection of project

Selecting the right type of product or project remain one of the major problems faced by entrepreneurs. This decision is very crucial that need to be taken carefully as all future efforts are associated with it. Entrepreneurial development programmes assist and give direction to entrepreneurs for solution of this problem, thereby enabling them in right selection of project or product. 

Project formulation

The project report is important area for each business entrepreneur. This report contains all key aspects on business project and plays key role at the initial stage of project. Entrepreneurial development programmes contribute a lot in proper understanding of process and procedure to formulate the project. 

Acquiring the basic managerial skills

Managerial skills is needed by every business entrepreneur irrespective of the size of business they are running, either small or large. Having good managerial skills enable the entrepreneur in smooth and successful running of his/her business enterprise. The key objective of entrepreneurial development programme is providing the managerial skills to entrepreneur needed for successful running of business enterprise.   

Upgradation of support system and procedure

EDP’s also pay attention on updating entrepreneurs regarding the support available from distinct agencies and institutions for establishing and running small scale business units. This also includes communicating them about the procedure for approaching such agencies, applying and obtaining support from them. 

Developing broader view about business

Entrepreneurial development programmes provide gainful self-employment to the interested individuals. They motivate them to go for their own employment instead of working for others in jobs. These programmes present a broader view regarding business to the interested group of peoples. They also provide general knowledge on entrepreneurship regarding the factors affecting small-scale industries, entrepreneur’s role in economic development, behaviour of entrepreneur and the facilities available for setting up small-scale enterprises. 

Exposure to project feasibility study

The EDPs provide guidelines for effective study of project feasibility or viability with regard to marketing, social, financial, technical and organizational aspects. All this type of knowledge assist entrepreneurs in future for conducting the feasible study of their business project. 

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Entrepreneurship Development

entrepreneurship development

Entrepreneurship development is concerned with the study of entrepreneurship behavior. the dynamics of business setup, development, and expansion of the business. Here in this article, we have explained the ED program and its meaning, definition, objective, models, and advantages.

► What is Entrepreneurship Development?

Entrepreneurship Development is a process of improving the skills as well as the knowledge of the entrepreneurs.

Entrepreneurship dev. can be done through various methods such as classroom sessions or training programs specially designed to increase entrepreneurship acumen.

◉ Entrepreneurship Development Meaning

Entrepreneurship development, in short E.D, means a process of enhancing entrepreneurship skills and knowledge through structured training and institution-building programs.

◉ Definition of Entrepreneurship Dev.

Entrepreneurship Dev. is the process of developing the infrastructure of public and private policies and practices that foster and support entrepreneurship.

Entrepreneurship Development could be defined as a process of enhancing the capacity to develop, manage and organize a business venture while keeping in mind the risk associated with it.

► Concept of ED

This concept of ED is all about enlarging the base of entrepreneurs in order to hasten the pace at which new ventures are created.

ED accelerates employment generation and economic development within the country.

Must Read : What is Entrepreneurship?

► Objectives of Entrepreneurship Development

  • Develop and strengthen entrepreneurial traits
  • Employment Generation
  • Boosting industrial development
  • Developing urbanization
  • Select and formulate the project
  • Learning the art of Product development
  • To know the source of help and support for a startup venture
  • Industry Exposer Learning
  • Entrepreneurial incubator culture
  • Fundraising Awareness
  • Sustainability and growth

► Need for Entrepreneurship Development

  • Increase in National production
  • Balanced development in all areas
  • Reinvestment of profit for the welfare of the areas of profit generation
  • The development provides motivation and human resource
  • Entrepreneurial awareness
  • Increase in employment opportunity
  • Increasing productivity
  • Optimum use of local resources
  • Continued innovation in technology and managerial practices
  • Improving international competitiveness

► Characteristics of Entrepreneurship Development

  • Encouraging Entrepreneurship
  • Building Desire for Entrepreneurship
  • Motivating Entrepreneurs
  • Ease of Doing Business
  • Facilitating Human Resource Development
  • Dynamic process
  • Knowledge Centre for Entrepreneurs
  • Mentorship program

► Importance of Entrepreneurship Development

  • Eliminate poverty and unemployment
  • Balance regional development
  • Reducing industrial slums
  • Utilizing locally available resources
  • Refuses social tension
  • Capital Formation Economic Independence

► Phases of ED Programme

  • Initial or Pre-training phase
  • Training or Development phase
  • Post-training or Follow-up phase

Must Read : Entrepreneurship Dev. Syllabus

► Process of Entrepreneurship Dev.

The total time period of Entrepreneurship dev. is over one and a half to two years.

  • Pre Seminar Awareness
  • Counseling, Motivation, and Idea Generation
  • Project Report Preparation & Submission to Bank
  • Follow-up sanction and disbursement of loans
  • Mentoring for two years.

► Factors Affecting Entrepreneurship Development

  • Aspiration and Attitude of Entrepreneurs
  • Individual traits
  • Family circumstances
  • Govt Policies, Schemes, and Incentives
  • Social Cultural factors
  • Custom and Traditions
  • Market Competition
  • Business Environment and Industry trends
  • Support system
  • The attitude of Big Entrepreneurs
  • Entrepreneurship courses and training
  • Role of Financial Institutions and Banks

► Entrepreneurship Development Program

Entrepreneurship dev. programs may be defined as a program designed to help a person in strengthening his entrepreneurial motive, and in acquiring the skills and capabilities necessary for playing his entrepreneurial role effectively.

The ED program is designed to identify people who have entrepreneurial spirits and capabilities.

These programs provide immense information to potential entrepreneurs regarding new business ideas, how to set up a new venture, how to prepare project reports, how to fulfill legal formalities, sources of raising finance, etc.

A program that seeks to do all this shall qualify to be called an entrepreneurship dev. program.

► Entrepreneurship Development in India

There are various Government institutions for ED in India. The Entrepreneurship Development Institute of India (EDI) an autonomous body and not-for-profit institution founded in 1983 is sponsored by apex finance institutions namely the IDBI Bank Ltd, IFCI Ltd. ICICI Ltd, and State Bank of India (SBI).

The institute is registered under the societies registration act 1860 and the Public Trust Act 1950. The Government of Gujrat pledged twenty-three acres of land on which stands the majestic and sprawling EDI campus.

Following are the Govt Institutions for ED Programs in India;

  • National Institute for Entrepreneurship and Small Scale Business Development (NIESBUD)
  • Entrepreneurship development Institute of India (EDII)
  • Technical Consultancy Organization (TCO)
  • Indian Investment Centre (IIC)
  • Post Graduate Diploma in Management Business Entrepreneurship (PGDM-BE)
  • Post Graduate Diploma in Management Development Studies (PGDM-DS)
  • Fellow Programme in Management (FPM)

Apart from the above-mentioned institutions, there are various national and state-level institutions that provide assistance to the entrepreneurial development program.

For example;

  • SIDC: State Industrial Development Corporation
  • IDBI: Industrial Development Bank of India
  • ICICI: Industrial Credit and Investment Corporation of India
  • IFCI: Industrial Finance Corporation of India

◉  Problems / Challenges of Entrepreneurship Dev.

  • No specific policy at the national level
  • Nonavailability of infrastructural facilities
  • Duration of ED programs
  • Lack of commitment
  • Selection of wrong trainees
  • Improper methodologies
  • The lukewarm attitude of financial institutions
  • Less availability of competent staff

Getuplearn

Entrepreneurship Development Program EDP: Definition, Features, Objectives, Achievements

  • Post author: Anuj Kumar
  • Post published: 16 September 2023
  • Post category: Uncategorized
  • Post comments: 0 Comments

Table of Contents

  • 1 What is EDP in Entrepreneurship?
  • 2 Table of Contents
  • 3 Definition of EDP in Entrepreneurship
  • 4 Features of EDP
  • 5 Objectives of EDP
  • 6.1 Creation of Employment Opportunities
  • 6.2 Capital Formation
  • 6.3 Balanced Regional Development
  • 6.4 Use of Local Resources
  • 6.5 Improvement in Per Capita Income
  • 6.6 Improvement in the Standard of Living
  • 6.7 Economic and Independence
  • 6.8 Preventing Industrial Slums
  • 6.9 Reducing Social Tension
  • 6.10 Facilitating Overall Development
  • 7.1 What are the achievements of EDP?
  • What is EDP in Entrepreneurship?

An entrepreneurial development program EDP may be defined as a program designed to help an individual strengthen his entrepreneurial motive and acquire the skills and capabilities necessary for playing his entrepreneurial role effectively. It is necessary to promote this understanding of motives and their impact on entrepreneurial values and behavior for this purpose.

Definition of EDP in Entrepreneurship

Features of edp, objectives of edp, creation of employment opportunities, capital formation, balanced regional development, use of local resources, improvement in per capita income, improvement in the standard of living, economic and independence, preventing industrial slums, reducing social tension, facilitating overall development, faqs section about the entrepreneurship development program edp.

The entrepreneurial development program is a systematic and organized development of a person to an entrepreneur refers to inculcating entrepreneurial skills into a common person, providing the needed knowledge, developing technical, financial, marketing, and managerial skills, and building an entrepreneurial attitude .

The concept of entrepreneurial development involves equipping a person with the required information and knowledge used for enterprise building and polishing his entrepreneurial skills.

These days, entrepreneurial development programs are treated as an important tool of industrialization and a solution to the unemployment problem in India. The overall aim of an entrepreneurial development program is to stimulate a person to adopt entrepreneurship as a career and to make him able to identify and exploit the opportunities successfully for new ventures.

These are the following are the definitions of EDP in entrepreneurship :

Identifies intelligence, motivation, knowledge and opportunity as the prerequisites for entrepreneurial development. Joseph E. Schempter
EDP is an attempt to develop person as entrepreneur through structural training. The main purpose of such entrepreneurial development programme is to widen the base of entrepreneurship by developing achievement motivation and entrepreneurial skills among the less privileged sections of society. SIET Institute, Hyderabad

Following are the some important features of EDP’s :

  • Enhancing the motivation knowledge and skills of the potential entrepreneurs.
  • Assisting them in the development of their own enterprise.
  • Arousing and reforming the entrepreneurial behavior in their day-to-day activities.
  • Join an EDP all your problems will be solved.
  • EDP’s success is the sole responsibility of the trainer’s motivations.
  • The higher the number better the EDP.
  • Need-based common facilities center.

The main objectives of EDP are as follows:

  • To identify and train the potential entrepreneurs in the region.
  • To develop necessary knowledge and skills among the participants in EDPs.
  • To impart basic managerial knowledge and understanding.
  • To provide post-training assistance.
  • To develop and strengthen entrepreneurial quality and motivation.
  • To analyze the environmental issues related to the proposed project . To help in selecting the right type of project and products.
  • To formulate an effective and profitable project.
  • To enlarge the supply of entrepreneurs for rapid industrial development.
  • To develop small and medium enterprises sector which is necessary for employment generation and wider dispersal of industrial ownership.
  • To industrialize rural and backward regions.
  • To provide gainful self-employment to educated young men and women.
  • To diversity the source of entrepreneurship.
  • To know the pros and cons of being an entrepreneur.
  • To provide knowledge and information about the source of help, incentives, and subsidies available from the government to set up the project.
  • To impart information about the process, procedure, rules, and regulations for setting up a new unit.

Achievements of EDP

Entrepreneurship plays a very important role in the economic development of entrepreneurs as catalytic agents in the process of industrialization and economic growth. Joseph Schumpeter states that the rate of economic progress of a nation depends upon its rate of innovation which in turn depends up on the distribution of entrepreneurial talent in the population.

Technological progress alone cannot lead to economic development unless technological breakthroughs are put to economic use by entrepreneurs. It is the entrepreneur who organizes and puts to use capital, labor, and technology in the best possible manner for the setting up of his enterprise.

EDP enables entrepreneurs to initiate and sustain the process of economic development in the following ways:

Unemployment is one of the most important problems confronting developing and undeveloped countries, EDPs enable prospective entrepreneurs the set up their own units, thus enabling them to get self-employment. With the setting up of more and more units by entrepreneurs, both on small and large scale, numerous job opportunities are created for the others.

Entrepreneurs in this way get an opportunity to lead an independent and honorable life and at the same time, they enable others to get employment. Several schemes like Nehru Rozgar Yojna, National Rural Employment Programme (NREP), Integrated Rural Development Programme (IRDP), etc. have been initiated by the Government of India in the direction.

The thrust of all these schemes is to eliminate poverty and generate gainful employment opportunities for the unemployed. Thus entrepreneurs can play an effective role in reducing the problem of unemployment.

It is not possible to set up an enterprise without adequate funds. An entrepreneur as an organizer of factors of production employs his own as well as borrowed resources for the setting up of his enterprise. Entrepreneur mobilizes idle saving of the public and put them to productive use.

In this way, he helps in capital formation which is so essential for the industrial and economic development of a country. Various development banks like ICICI, IFCI, SFCs, and SIDCs take the initiative in promoting entrepreneurship through assistance to various agencies involved in EDP and by providing assistance to new entrepreneurs.

Small-scale units can be set up in industrially backward and remote areas with limited financial resources. Successful EDPs assist in accelerating the pace of industrialization in the backward areas and reduce the concentration of economic power in the hands of a few.

Entrepreneurs feel like taking advantage of the various concessions and subsidies offered by the state and central government. The success story of entrepreneurs set the right example for others to follow and this accelerates the pace of industrialization in the backward areas.

In the absence of any initiative, local resources are likely to remain unutilized. Proper use of these resources can result in the progress or development of the area and that too at a lower cost.

Alert entrepreneurs seize the opportunity and exploit it in the best interests of the area and industry. Effective EDPs can help in the proper use of local resources by providing guidance, assistance, education, and training to prospective entrepreneurs.

Entrepreneurs are always on the lookout for opportunities. They explore and exploit the opportunities. Entrepreneurs take the lead in organizing various factors of production by putting them into productive use through the setting up of enterprise.

More enterprise will lead to more production, employment, and generation of wealth in the form of goods and services. It will result in an increase in the overall productivity and per capita income in the country. EDPs play a positive role in the setting of more units thus helping in the generation of more employment and income.

Entrepreneurs by adopting the latest innovations help in the production of a wide variety of goods and services. By making efficient use of the resource, this starts producing more of better quality, and that too at lower costs.

This enable them to ensure easy availability of better quality product at lower prices to the consumer which result in the improvement in the standard of living of the people. EDPs provide the necessary support to entrepreneurs by educating them about the latest innovations and market trends.

Entrepreneurs enable a country to produce a wide variety of goods & services and that too at competitive prices. They develop substitutes for the goods being imported and thus prevent over-dependence on foreign countries and sometimes help in the saving of precious foreign exchange, which is so essential for meeting the developmental needs of the economic independence of the economy.

Industrially developed areas are faced with and problem of industrial slums, which result in the overburdening of civic amenities and adverse impact on the health of people. Dispersal of industries can help in the overcoming of this grave problem.

EDPs can help in preventing the spread of industrial slums by providing various incentives, subsidies, and infrastructural support to entrepreneurs for setting up their enterprises in industrially backward areas. This will also help in reducing pollution and overtaxing of civic am entities.

Unemployment amongst young and educated people is emerging as the major cause of social unrest. People are bound to feel frustrated if they fail to get gainful employment after completion of their education.

EDPs can help channel the talent of this section of society in the right direction by providing proper guidance, training, and assistance for setting up their enterprise resulting in the generation of self-employment and prevention of social tension, unrest, etc.

An entrepreneur acts as a catalytic agent for change which results in a chain reaction. With the setting up of an enterprise, the process of industrialization is set in motion. This unit will generate demand for various types of inputs required by it and there will be so many other units that will require the output of this unit.

This leads to the overall development of an area due to an increase in demand and the setting up of more and more units there. Moreover, the success of one entrepreneur sets the right type of example for others to follow. Entrepreneurs thus create an environment of enthusiasm and convey a sense of purpose. This gives future impetus to the overall development of that area.

What are the achievements of EDP?

The following are the achievements of EDP: 1. Creation of Employment Opportunities 2. Capital Formation 3. Balanced Regional Development 4. Use of Local Resources 5. Improvement in Per Capita Income 6. Improvement in the Standard of Living 7. Economic and Independence 8. Preventing Industrial Slums 9. Reducing Social Tension 10. Facilitating Overall Development.

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14 Entrepreneurial Development Programmes

  • Learning Outcome:  

After studying this module the learners will be able to:

  • Understand the concept of Entrepreneurial Development Programmes (EDPs);
  • Know the needs and objectives of EDPs;
  • Explain the present status of EDPs in India;
  • Understand the role, relevance, and effectiveness of EDPs in the development of an entrepreneur;
  • Describe the various phases of entrepreneurial development programmes; and
  • Highlight the challenges faced in the conduct of EDPs.

    2. I ntroduction

Entrepreneurship provides the solution to many economic and social problems and also acts as an engine of growth. Entrepreneurship has become an important concern for many countries to achieve the status of economic superpower. It is rightly said that if a country is able to produce an entrepreneur from each of its family then economy of that country would be sky rocket. Entrepreneurs generate employment, contribute in national income, and fulfil the need of the customer and society also. Entrepreneur is considered as one of the most important input or component of economic  development of any region as s/he makes the real difference between the economic developments by performing various functions. Economic development of an economy rests on the growth of entrepreneurship. For the development of entrepreneurship, entrepreneurs’ attitude and performance is the key. Entrepreneurs’ competencies make the real difference to the rate of economic and entrepreneurship growth. Entrepreneurial competencies are the decisive factors for the success and failure of entrepreneurs. Entrepreneurial competencies (discussed in module 12) help an entrepreneur in meticulous planning, effective implementation, and smooth operation of the enterprise. Competencies make an entrepreneur creative and innovative who always searches for new dimensions of business operations. But, the real problem is to make entrepreneurs competent so that they can drive their enterprise in the roads of success. Entrepreneurial Development Programmes (EDPs) are considered as potential solution to these two problems. EDPs not only help in development of entrepreneurship but also help in the development of competencies among entrepreneurs. In the following sections, you will discuss in details about the EDPs and its role and relevance in the development of entrepreneur and entrepreneurship.

3.  Concept of Entrepreneurial Development Programme (EDPs)

Entrepreneurial Development Programme (EDP) means programme designed to develop entrepreneurial ability among individuals. In other words, EDP means a programme which aims to strengthen the entrepreneurial ability of prospective entrepreneur. Entrepreneurial development programme helps a person in acquiring skills and developing capabilities to play a role of an effective entrepreneur. EDP refers to programme which inculcate , develop, and polish the requisite skills into a prospective entrepreneur to establish and run an enterprise. The concept of entrepreneurial development programme refers to equip a person with the required knowledge and skills and change the attitude of a person for running the business successfully .A programme which achieves all the above mentioned tasks called EDP. The programmes which provide necessary information and inputs to prepared project reports and other documents not eligible to be an EDP as their basic objective is not to develop entrepreneurship. A programme which achieves the objectives like imparting necessary skills, knowledge to run an enterprises and also touches the aspects of entrepreneurial motivation and behavioural aspects of an entrepreneur called entrepreneurial development programme.

National Institute of Small Industry Extension Training (NISIET), Hyderabad defined EDP as “An attempt to develop a person as entrepreneur through structural training. The main objective of such entrepreneurship development programme is to develop the entrepreneurship through increasing achievement motivation and entrepreneurial skills among less privileged sections of the society.”

On the basis of above definitions and concepts, we can say that EDP is a planned process to identify, impart, develop, and sharpen the competencies which are essentials to run a business among individuals to become a successful entrepreneur.

An EDP consists following as an essential component:

1.   Need of the programme

2. Main objectives of the programme

3. Design of the programme

4. Evaluation and feedback

4.  Relevance of EDPs

To achieve developmental objectives, it is important to promote entrepreneurship and that too in right directions. To promote entrepreneurship, attracting and motivating entrepreneurs is the first step and if entrepreneurs are attracted and motivated than successfully running enterprises is another challenge. Entrepreneurs require some basic characteristics to establish and run an enterprise. Sometimes entrepreneurs able to identify those underlying characteristics and sometimes they don’t. To identify  and developing those underlying characteristics, EDPs are very essential as proved by D. McClelland through famous Kakinada Experiment . In Kakinada experiment, a proper training was provided to young persons and after experiment , it was found that they were highly motivated to start their own entrepreneurial activity. This experiment concluded that training through entrepreneurial development programme can develop need for achievement and high motivation and these has positive impactson the performance of entrepreneurs. Other than high motivation and need for achievement, entrepreneurs’ required necessary competencies to achieve success in their initiatives. Competencies are underlying characteristics of a person and behavioural aspect of an individual. Basic components of competencies are knowledge, skills, and motivation. To inculcate necessary knowledge and skills, EDPs are very helpful as proved in many researches .

5.  Objectives of EDPs

The main aims and objectives of entrepreneurial development programmes are as follow:

i.       Develop entrepreneurship and strengthen the entrepreneurial base and quality.

ii.      Promote and develop small scale businesses that encourage self employment .

iii.      Analysing surrounding environment to identify the opportunities lying in the environmental set up .

iv.     Help prospective entrepreneurs to select the type of business and product to run an enterprise.

v.      Train individuals to prepare project proposal or business plans.

vi.     Educate prospective entrepreneurs about the process of setting an enterprise.

vii.  Inform about the sources from where entrepreneurs can get the financial and other supports for starting an entrepreneurial activity.

viii.   Developing the entrepreneurial competencies which result in superior business performance.

ix.     Identification of necessary characteristics of entrepreneurship and inculcate the required ones.

x.   Develop first-generation entrepreneurs who want to start their own business, but required some guidance and assistance.

xi.    To establish the fact that entrepreneurs are made, not born.

xii.   Helps an entrepreneur to choose the best business idea or in establishment of enterprise .

xiii.  Develop an entrepreneur so that s/he can select the best location and identify the target customers for business.

xiv.   To motivate an entrepreneur or develop high need achievement.

xv.    To impart necessary knowledge and skills to successfully run an enterprise.

xvi.   To know the relative advantages and disadvantages of choosing entrepreneurship.

xvii.  Preparing entrepreneurs to deal with the uncertainty in world of entrepreneurship.

xviii. Develop the broad vision about the entrepreneurship.

xix.   Develop passion for entrepreneurship, dedication, determination and honesty for business.

xx.  Making aware about the various policies, schemes, and statutory regulations of government for entrepreneurship.

xxi.   Inculcating basic managerial skills which are pre-requisites of entrepreneurship.

xxii.  Prepare entrepreneurs to take fast, accurate, andstrategic decisions.

xxiii. Enable prospective entrepreneurs to accept the challenges and unforeseen risks of entrepreneurship.

Some other objectives are:

i.   Accelerate the pace of economic and industrial development.

ii.  Transform the Indian economy.

iii. Develop the entrepreneurial culture in the society.

iv. Develop the sense of social responsibility among prospective entrepreneurs.

6.  EDPs in India: An Overview

After getting the freedom, govt. realised the importance of economic freedom and has been trying very hard to solve the problems of vast unemployment, poverty, heavy dependence on agriculture, and regional imbalances. Policy makers identified small scale business as an alternate to get rid of above mentioned problems and to boost the economic development process. Since then, this sector is recognised as an employment generation tool. To speed up the process of entrepreneurial development, government decided to provide special incentives and promotional packages to entrepreneurs. These packages were included financial assistance, providing infrastructural support, technical and managerial assistance through various agencies of the government. After launching series of promotional programme, government did not get the desired and expected growth of entrepreneurship and finally realised that promotional packages are necessary but not enough to foster the entrepreneurship. Therefore, focus was shifted towards the development of prospective entrepreneurs or human capabilities and concept of entrepreneurial development programme was emerged. The first step in this process was the establishment of Small Industry Extension and Training Institute (SIET), Hyderabad in 1962, now known as NISIET. This institute in collaboration with famous behavioural scientist David.C.McClelland conducted famous Kakinada experiment and proved that through proper education and training, necessary competencies (including knowledge, skills, and need for achievement) can be developed in an entrepreneur. This step laid down the foundation of entrepreneurship development programme and now has been become a movement as entrepreneurial development programme in India.

Recognising the relevance of entrepreneurial development programme, Gujarat Industrial Investment Institutions launched a detailed three month training programme for entrepreneurs to develop entrepreneurship. The motto of the programme was to identify and promote the young talent of potential entrepreneurs. This programme was focused on main areas like; development of small enterprises, management of business , and generate sufficient profit through small business ideas.

Another initiative in this direction was establishment of North Eastern Council (NEC) to promote entrepreneurship in North Eastern States of the country. Later on, North Eastern Industrial and Technical Consultancy Organisation (NEITCO) and after that Entrepreneurial Motivation Training Centre (EMTC) were established in the region to boost the process of entrepreneurship.

After these initiatives various institutions were set up under the initiatives of entrepreneurship development programmes (EDPs) like EDIIs, SIDO, and National Institute for Entrepreneurship and Small Business Development (NIESBUD), etc. All these institutions are trying to make entrepreneurial development programmes as a movement to develop the entrepreneurship in the country so as to achieve the economic development objectives.

7.  Structure of EDPs

EDPs are well planned and well organised efforts to develop the entrepreneurs. There is well devised structure of each EDPs and generally organised for the duration of six-weeks . It covers the following components to meet the objectives:

i.  Awareness about entrepreneurship : During EDPs, first of all, all the participants, who are prospective entrepreneurs, need to be familiarised with the world of entrepreneurship. All must get information about the various aspects of business, pros & cons, and their role in entrepreneurship.

ii.  Behavioural Training : Along with awareness about entrepreneurship, prospective entrepreneurs should go through the behavioural training. The main aim of this training is  to induce the high need for achievement and inject confidence among entrepreneurs to take initiative to establish enterprise . It is their behaviour , which makes the difference in success and failure of the enterprise.

iii.  Inculcating Skills :Only competent entrepreneur can succeed in his venture. For the long run survival, entrepreneurs should be imparted with necessary knowledge and skills during the entrepreneurial development programmes. Various types of skills like technical, managerial, human resource and operational skills are required to become a successful entrepreneur.

iv.  Knowledge about process and services : The prospective entrepreneurs must be informed about the process of setting an enterprise and support services available to them to implement their ideas. They need to inform about the various government agencies and the process of approaching them to get necessary assistance.

v.   Business Plan and Feasibility Analysis : After knowing the basics of  entrepreneurship, prospective entrepreneurs need to educate about the preparation of business plan and further analysing the feasibility of that plan. They must be educated about the various aspects of business plan and parameters on which plan is evaluated.

vi.  Practical Exposure :To get the practical exposure, entrepreneurs are exposed with real life situations during EDPs. This step helps them to familiarise with practical environment, personality of entrepreneur , his/her attitude, behaviour , and approach towards entrepreneurship.

The ultimate aim of EDPs is to train individuals to start their own business after the completion of programme .

8.  Stages/ Phases of Entrepreneurial Development Programmes (EDPs)

Entrepreneurial Development Programme is divided into various stages to fulfil its objectives and following are the stages of EDPs:

i.  Pre-Training Phase : During this phase of EDPs, preparation of conduct is done. This stage of EDP includes:

  • Identification and selection of prospective entrepreneurs through various procedures like conducting psychological test, thematic aptitude test, and interviews, etc.
  • Arrangements of necessary equipments and sources to organise the programme.
  • Formation of various committees for the smooth conduct of training programme.
  • Pre-survey of potential entrepreneurial opportunities.
  • Devising the course content for the programme.

    ii.  Training Phase: At this stage, prospective entrepreneurs are provided with the necessary training to run the enterprise successfully. During training phase, efforts are made to change the behaviour and attitude of the entrepreneurs. Focus is on development of need for high achievement or motivation to take initiatives and become a successful entrepreneur. This phase aims at answering questions like; what are his basic traits, what kind of competencies s/he requires, how s/he behaves in complicated situations, what kind of knowledge and skills trainees possess. During this phase, trainees are also exposed to the practical situations and completed many tasks which are required to set up an enterprise.

iii.  Evaluation Phase: Whether the underlying objectives of the EDP are achieved or not? This evaluation is done at this phase of entrepreneurial development programme. At this  phase, assessment is done about the entrepreneurial orientation of the participants. It is evaluated that how far prospective entrepreneurs are ready to start their own enterprise. During the follow-up process, review of various components of EDPs is done. These components include; pre-training components, course contents of programme , satisfaction of entrepreneurs, and post-training behaviour of prospective entrepreneurs.

9.  Challenges for Entrepreneurial Development Programmes (EDPs)

No doubts, entrepreneurial development programmes (EDPs) are shaping the aspirations of prospective entrepreneurs and contributing in the development of entrepreneurship. If all the underlying objectives of EDPs are achieved, then India can achieve the status of entrepreneurial society. But, EDPs suffer from many problems and faced following challenges to achieve the desired results:

i.     Low motivation level of trainers as well as trainee during the training.

ii.  Lack of commitment, dedication, determination, and sincerity in conduct of EDPs and low level of involvement and lack of active participation of trainees.

iii.   Proper planning and non-conducive environment of entrepreneurial development programme.

iv.   Lack of coordination between the organiser and supportive agencies like banks and other institutions.

v.    Poor implementation of planning.

vi.   Pre-decided course contents and lack of adaptive training modules.

vii.  Lack of monitoring and proper evaluation of feedback.

viii. Lack of after training assessment of prospective entrepreneurs and non-consideration of entrepreneurs’ feedback.

10.  Myths About Entrepreneurial Development Programmes

EDPs are potential solution to boost the entrepreneurship and also contribute in motivation of prospective entrepreneurs. People assume that EDPs would solve all the issues of entrepreneurship. Lack of understanding and non-clarity of objectives of EDPs limits its growth. There are following misconceptions/myths about entrepreneurial development programmes:

i.  Most of prospective entrepreneurs believe that mere joining of an entrepreneurial development programme will solve all the problems of entrepreneurs.

ii.  People considers EDPs as training programme whereas, training is one part of the EDPs. It also covers other aspects of entrepreneurship.

iii. People often link the success of EDPs with the number of participants. There is myth about EDPs that higher will be number, better will be the EDP.

iv.  Participants think that success of EDPs is the sole responsibility of trainers, motivators, organisers .

v.   Huge financial support to organiser and trainers. Whereas, these are national income and public money.

vi. Waste the resources as it belong to government and government is responsible to manage all the resources.

11.  Summary

It is well established and recognised fact that development of entrepreneurship is the need of the hour. Entrepreneurship development heavily relies on entrepreneurial attitude and behaviour . Attitude and behaviour of entrepreneurs can be developed through appropriately designed entrepreneurial development programmes. Entrepreneurial development programmes involve  three basic attributes and these are; development of need for high achievement, identifying, developing, and sharpening entrepreneurial competencies, and guidance and assistance on opportunities identification, process of entrepreneurship, and project planning an implementation. The basic objectives of entrepreneurial development programme are to foster entrepreneurship and motivation of entrepreneurs so that they can initiate their own entrepreneurial activities .Government proactive approach and support is essential to make EDPs successful and a movement also. EDPs cover various components to fulfil its basic objectives like awareness about entrepreneurship, motivation, training, practical exposure, feedback etc. Generally, EDP is divided into three phases which include; pre-training, training and post-training part. Course contents and its coverage must be in tune with its objectives and should cover general introduction of business, inducement of motivation, inculcation of requisite skills, procedure involved and fundamentals of feasibility analysis. EDPs ignite one’s own need for high achievement and activate internal stimuli to start own business. There are many misconceptions about entrepreneurial development programmes among participants and general public. To ensure the success of entrepreneurial development programme, proper planning, effective execution, and active participation of participants is the key. Assessment and evaluation of EDPs may help in the growth of entrepreneurship. The simplest and best method of evaluation of EDPs is to find out how many participants have started their own entrepreneurial activities after completing the entrepreneurial development programme. Entrepreneurial development programme have faced many challenges like low motivation of trainers as well as participants. These must be addressed to achieve the objectives of entrepreneurial development programmes.

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Entrepreneurship Development Program

Cartoon image of rocket ship taking off while five others sit on the ground next to it. image number null

Management and Leadership

Certificate Credits

- Entrepreneurship

- Financial Management

- Strategy & Innovation

  • Participants

Course Highlights

  • Network with innovators, entrepreneurs, and intrapreneurs from around the world on the MIT campus surrounding Kendall Square — known globally as the most innovative mile on the planet
  • Receive feedback from coaches, pitch to a panel of judges, and engage with the MIT ecosystem
  • Learn the 24-step Disciplined Entrepreneurship process created by Bill Aulet, Faculty Director of the program
  • Earn a certificate of course completion from the MIT Sloan School of Management

Course Snapshot

Why attend the Entrepreneurship Development Program (EDP) ?

Drawing from the vast culture of innovation and entrepreneurship at MIT, this unique entrepreneurship development course introduces participants to MIT’s entrepreneurial education programs, technology transfer system, and global entrepreneurial network. It covers the entire venture creation process, from generating ideas to building viable global businesses, with a special emphasis on the nurturing roles of corporations, universities, governments, and foundations.

This program leverages MIT's culture of high-tech entrepreneurship to help entrepreneurs , corporate venturing executives, startup companies , and others involved in entrepreneurial environments learn what they need to develop ideas into successful businesses, and how to increase entrepreneurial opportunities in their corporations, institutions, and regions.

Course Experience

Through lectures by senior MIT faculty, visits to local startup companies, and live case studies with successful entrepreneurs, participants will be exposed to the content, context, and contacts that enable entrepreneurs to design and launch successful new ventures based on innovative technologies. Specially designed team projects give participants hands-on training and practical experience developing a business plan, while networking events bring participants together with members of MIT’s entrepreneurial community.

Learn more about the in-person course experience.

Applying to the Course

We accept enrollments until the offering reaches capacity, at which point we will maintain a waitlist. Many of the courses fill up several weeks in advance, so we advise that you enroll as early as possible to secure your seat.

You can begin the application process by using the red 'Enroll Now' bar at the bottom of the screen.

Have Questions?

Watch this recently recorded information session about the program and our related course, Disciplined Entrepreneurship .

Contact us if you would like to speak with a program director or visit our Frequently Asked Questions page for answers to common questions about our courses.

Health and Safety

See our on campus healthy and safety policies.

Testimonial from past course participant Tarek F.

Upon successful completion of your course, you will earn a certificate of completion from the MIT Sloan School of Management. This course may also count toward MIT Sloan Executive Certificate requirements.

You'll leave this course able to

  • Create, identify, and evaluate new venture opportunities
  • Interpret customer needs and quantify the value proposition
  • Start and build a successful technology-based company
  • Understand how the process of starting new ventures may vary geographically and culturally
  • Develop winning business plans
  • Scale startups to be globally successful
  • Navigate the venture capital investment process
  • Obtain feedback on personal entrepreneurship skills
  • Enhance and expand your network

Testimonial from past course participant William S.

Read more about William Sunito's experience . 

Sample Schedule—Subject to Change

Should you attend the Entrepreneurship Development Program?

This program is designed for

  • Aspiring entrepreneurs
  • Corporate venture officers
  • Those who would like to develop or strengthen a climate of entrepreneurship in their corporations, universities, and regions
  • Teams of entrepreneurs or intrapreneurs are encouraged to attend the program together with university staff and/or development professionals from their region  

Titles of past participants have included

  • Managing Director
  • Vice President
  • Chief Technology Officer
  • Director of Knowledge and Technology
  • R&D Manager
  • Business Development Manager
  • Investment Manager
  • Venture Manager
  • Development Officer
  • Head of Innovations and Enterprise

Regional economic development agencies

Photograph of Scottish castle and surrounding grounds.

Entrepreneurship development program is designed to help a person in strengthening and fulfilling his entrepreneurship motive and in acquiring skills and capabilities necessary for playing his entrepreneurship role effectively. Towards this end it is necessary to promote his understanding of motives, motivation patterns, their impact on behaviour and entrepreneurship value. A programme, which seeks to do this, can qualify to be called as EDP.

Entrepreneurship Development Programmes means a programme designed to help a person in strengthening his entrepreneurship motive and in acquiring skills and capabilities necessary for playing his entrepreneurship role effectively. A programme which seeks to do this can be called as entrepreneurship Development Programmes.

EDP is a programme designed to help a person in strengthening his entrepreneurship motive and in acquiring skills and abilities necessary for playing his entrepreneurship role effectively.

Entrepreneurship Development Programme means a programme conducted to help a person in strengthening his entrepreneurship motive and in acquiring skill and capabilities required for promoting and running an enterprise efficiently. A programme which is conducted with a motive to promote potential entrepreneurs, understanding of motives, motivational pattern, their impact on behaviour and entrepreneurship value is termed as entrepreneurship development programme.

ADVERTISEMENTS:

There are a number of programmes which give information to the prospective entrepreneurs regarding new business ideas, how to set up a new venture, how to prepare a project report, sources of finance etc. These programmes should not be confused with EDP; these are all a part of EDP. EDP is primarily concerned with developing, motivating entrepreneurship talent and understanding the impact of motivation on behaviour.

A well designed EDP envisages three tiered approach:

  • Developing achievement motivation and sharpening entrepreneurship traits and behaviour.
  • Guidance on industrial opportunities, incentives, facilities, rules and regulations.
  • Developing managerial and operational capabilities.

Meaning of Entrepreneurship Development Programme (EPD)

Entrepreneurship development programme is designed to help a person in strengthening and fulfilling his entrepreneurship motive and in acquiring skills and capabilities necessary for playing his entrepreneurship role effectively. Towards this end it is necessary to promote his understanding of motives, motivation patterns, their impact on behaviour and entrepreneurship value. A programme, which seeks to do this, can qualify to be called as EDP.

EDP is defined as a programme designed to help an individual in strengthening his entrepreneurship motive and in acquiring skills and capabilities necessary for playing his entrepreneurship role effectively.

EDP is defined as a process which instils entrepreneurship behaviour in the minds of entrepreneurs in their day-to-day activities.

Definitions of Entrepreneurship Development Programme 

According to Joseph E. Schumpeter , “Intelligence, motivation, knowledge and Opportunities are the perquisites of entrepreneurship Development.”

According to other Experts, “A programme designed to help an individual in strengthening his entrepreneurship motive and acquiring skills and capacities necessary for playing his entrepreneurship role effectively.”

Entrepreneurship Development Programme is designed to identify persons who have entrepreneurship spirits and capabilities. These persons are trained and motivated to venture into business activities. An entrepreneurship Development Programme is based on the belief that individuals can be developed, their outlook can be changed and their ideas can be converted into action through organised and systematic programmes.

The entrepreneurship Development Programme is not merely a timing programme. It is a process of enhancing the motivation, knowledge and skills of the potential entrepreneurs or arousing the entrepreneurship behaviour of their day to day activities. These are necessary to promote this understanding of motives and their impact on entrepreneurship values and behaviour for this purpose.

Despite several facilities and concessions, the desired target group could not be attracted towards self-employment. Lack of proper integration between person, project and policy was the main cause of failure. In that situation the entrepreneurship development programmes play a crucial role.

What is Entrepreneurship Development Programme (EDP)

Entrepreneurship Development Programmes aim at developing entrepreneurship motives, skills and helping to play his/her role & as an entrepreneur effectively, entrepreneurship Development Programmes are primarily concerned with developing and motivating entrepreneurship talent and grooming him to be an effective entrepreneur.

Features of Entrepreneurship Development Programme (EDP)

The basic features of the entrepreneurship development programme  has gone through several modifications over time as:

  • Identification and careful selection of entrepreneurs for training;
  • Developing the entrepreneurship capabilities of the trainee;
  • Equipping the trainee with the basic managerial understanding and strategies;
  • Ensuring a viable industrial project for each potential entrepreneur;
  • Helping him to secure the necessary financial, infrastructural and related assistance; and
  • Training cost is highly subsidised and only a token fee is charged. A deposit is, however, taken to ensure commitment of participants.

Need of Entrepreneurship Development Programme 

Entrepreneurship Development Programme means a programme conducted to help a person in strengthening his entrepreneurship motive and in acquiring skill and capabilities required for promoting and running an enterprise efficiently. It is a programme which is conducted with a motive to promote potential entrepreneurs, understanding of motives, motivational pattern, their impact on behaviour and entrepreneurship value is termed as entrepreneurship development programme.

The need of EDP is as follows:

  • It helps in developing entrepreneurs
  • It helps entrepreneurs in developing and improving their skills
  • EDP is a tool of industrialisation and path to economic growth through entrepreneurship
  • EDP helps in dispersal of economic activities in different regions by providing training and other support to local people
  • It provides opportunities for self-employment and entrepreneurship careers
  • EDP develops motivation, competence and skills necessary for successful launching, management and growth of the enterprise
  • EDP, by inculcating entrepreneurship capabilities and skill in the trainees, creates a new generation of entrepreneurs

The urge to achieve is one of the most significant variables connected with economic development. People with high need for achievement tend to be more successful entrepreneurs as compared to people who are with low need for achievement.

The need of the hour is:

  • To develop genuine entrepreneurs to accelerate the process of industrialisation
  • To stimulate innovation and the entrepreneurship spirit to support the development of new ideas through new and mature enterprises.

Objectives of Entrepreneurship Development Programme

The objectives of an entrepreneurship development programme (EDP) are categorised into two types:

  • Short-Term Objectives
  • Long-Term Objectives

1. Short-Term Objectives:

These imply the objectives which are to be achieved immediately after the completion of the programme.

The short-term objectives are:

  • Preparing a person mentally for the entrepreneurship venture
  • Making him competent to scan the environment and situation within the existing regulatory framework
  • Help a participant in the fixation of his/her goal of life as entrepreneur as an objective in general.

2. Long-Term Objectives:

An entrepreneurship development programme seeks to equip the participants with all the skills required for the establishment and smooth running of business ventures. The ultimate objective is that the participant under training should establish his/her own venture.

The objectives of an EDP are as follows:

  • To enlarge the supply of entrepreneurs for rapid industrial development
  • To develop small and medium scale sector which is necessary
  • To industrialise rural and backward regions
  • To provide gainful employment to educated young men and women
  • To diversify the sources of entrepreneurship and
  • To improve the performance of small industries by developing managerial skills among small entrepreneurs

EDP Programs

EDP programs are organised to address the needs of various types and levels of people. The EDP are directed at students, aspiring entrepreneurs, faculty, local entrepreneurs etc. The objective of the EDP would be to foster entrepreneurship spirit, quality, enable product design, help in project identification, report preparation, understand finance, compliance etc. Entrepreneurship being multi-disciplinary, the program should be structured to handle various subjects, domains and skills.

A typical program should cover:

  • entrepreneurship motivation
  • Business skills
  • Industry Interactions
  • Compliance and statutory aspects
  • Venture Creation and Management
  • Schemes, Grants, incentives and subsidies
  • Support Systems

EDP is structured in three phases:

  • Pre-training phase where participants are identified, program is designed and relevant tie-ups all achieved
  • Training Phase – Execution of training
  • Post training support.

Success of EDP is evaluated by looking at the number of participants who have turned into entrepreneurs. More recent measure is also to see how the participants assume other critical roles post the training to further the entrepreneurship ecosystem.

  Importance of Entrepreneurship Development Programme  

Entrepreneurs are considered as agents of economic growth. They create wealth, generate employment, provide new goods and services and raise the standard of living. EDP is an effective way to develop entrepreneurs which can help in accelerating the pace of socio-economic development, balanced regional growth, and exploitation of locally available resources. It can also create gainful self-employment.

An EDP equips entrepreneurs and makes them competent to anticipate and deal with a variety of problems that any entrepreneur may have to face. It gives confidence to the entrepreneur to face uncertainties and take profitable risks. It prepares them to deserve and make good use of various forms of assistance.

EDP can be beneficial in the following ways:

1. Economic Growth:

EDP is a tool of industrialisation and path to economic growth through entrepreneurship.

2. Balanced Regional Development:

EDP helps in dispersal of economic activities in different regions by providing training and other support to local people.

3. Eliminates Poverty and Unemployment:

EDPs provide opportunities for self-employment and entrepreneurship careers.

4. Optimum use of Local Resources:

The optimum use of natural, financial and human resources can be made in a country by training and educating the entrepreneurs.

5. Successful Launching of New Unit:

EDP develops motivation, competence and skills necessary for successful launching, management and growth of the enterprise.

6. Empowers New Generation Entrepreneurs:

EDP, by inculcating entrepreneurship capabilities and skill in the trainees, created a new generation of entrepreneurs who hitherto were not entrepreneurs.

Role of Entrepreneurship Development Programme (EDP) 

EDP is essential for first generation entrepreneurs because they may not become successful unless a proper training is received. It is a continuous process of motivating the entrepreneur. The potential entrepreneurs can solve many of their problems provided proper training is given to them.

1. Eliminates Poverty and Unemployment:

The basic problems of most of the developing countries like India are poverty and unemployment. Entrepreneurship development programmes can help the unemployed people to opt for self-employment and entrepreneurship as a career.

Several programmes like National Rural Employment Programme (NREP), Integrated Rural Development Programme (IRDP) etc., are in operation in India to help the potential entrepreneurs. All these special schemes intend to eliminate poverty and solve the problem of unemployment.

Successful entrepreneurship development programmes help in fostering industrialization and reduce the concentration of economic power. It is because small-scale entrepreneurs can set up their units in remote areas with little financial resources which can help in achieving balanced regional development.

The medium and large enterprises do not help in reducing the disparities in income and wealth of the people. Thus, entrepreneurship development programmes help in balanced regional development by spreading industrial units in each, and every part of the country.

3. Prevents Industrial Slums:

The urban cities are highly congested and leading to industrial slums. Decentralisation of industries is very much required by relocating the industries.

entrepreneurship development programmes help in removal of industrial slums as the entrepreneurs are provided with various schemes, incentives, subsidies and infrastructural facilities to set up their own enterprises in all the non-industrialized areas.

This will control the industrial slums and also reduce the pollution, traffic congestion, overcrowding in cities etc.

4. Harnessing Locally Available Resources:

Since abundant resources are available locally, proper use of these resources will help to carve out a health base for sound economic and rapid industrialization.

The entrepreneurship development programmes can help in harnessing these resources by training and educating the entrepreneurs.

5. Defuses Social Tension:

Every young person feels frustrated if he does not get employment after completing his education. The talent of the youth must be diverted to self-employment careers to help the country in defusing social tension and unrest among youth which is possible by entrepreneurship development programmes.

6. Capital Formation:

The various development banks like ICICI, IDBI, IFCI, SFC, SIDC and SIDBI take initiative in promoting entrepreneurship through assistance to various agencies involved in EDP and by providing financial help to new entrepreneurs. It is impossible to start a new enterprise without sufficient funds.

Entrepreneurs are the organisers of factors of production who employ their own and borrowed money for setting up new ventures. This all results in the process of capital formation.

7. Economic Independence:

Entrepreneurs develop and produce substituted products of imported goods and prevent the over-dependence on other countries.

They also enable the country to produce a variety of better quality goods and services at competitive prices of imported goods which help in promoting the economic independence of the country.

8. Improvement in per Capita Income:

Entrepreneurs always explore and exploit the new opportunities which lead to productive use of factors of production for more output, employment and generation of wealth.

The overall increase in productivity and income help in improvement in per capita income. EDPs play a significant role in setting up more industrial units to generate more employment opportunities and to secure improved per capita income.

9. Facilitating Overall Development:

Entrepreneurs act as agents of proper use of various limited resources such as men, money, material, machines etc., which leads to overall development of an area, an industry.

The successful entrepreneurs set a motivating example for others to adopt entrepreneurship as a career. Thus entrepreneurs create a motivating environment for economic development of a country.

Some of the other role of EDP are as follows:

  • Selection of project and product
  • To analyse the environment regarding the small industry/business
  • To know the process and procedure regarding the establishment of new business
  • Helpful in preparation of the project
  • Helpful to learn the primary stage of managerial skill
  • To know the essential resources for establishing a new venture
  • Giving assistance in appreciating the quality of an entrepreneur
  • To identify the feasible entrepreneur
  • To provide training & education to feasible entrepreneurs
  • To know the EDPs obstacles and their measures
  • Helpful in searching for the incentives subsidy and financial assistance resources

Phases of Entrepreneurship Development Programme 

After deciding on course contents and curriculum on EDP, the next important task is to decide various phases of EDP.

There are three different phases of EDP like:

Phase1 – Pre-Training Phase:

Pre-training phase consists of all activities and preparation to launch the training programme.

Pre-training phase of EDP consists of the following activities:

  • Selection of entrepreneurs for the training programme
  • Arrangements of infrastructure are for the programme like selection of place of training
  • Deciding guest faculty for the programme from the education industry and banks
  • Taking necessary steps for the inauguration of the programme
  • Formation of selection committee to select trainees from the programme
  • Making provision with regard to publicity and campaigning for the programme

Phase 2 – Training Phase:

The primary objective of the training programme is to develop motivation and skill or competency amongst the potential entrepreneurs. Care should be taken to impart both theoretical and practical knowledge to various trainees.

The training phase of EDP will be so designed that it will answer the following questions:

  • Whether the attitude of the entrepreneur has been tuned towards the proposed project or not
  • Whether the trainee has been motivated to accept entrepreneurship as a career
  • How the trainee behaves like an entrepreneur
  • Whether the trainee has sufficient knowledge on resources and technology or not
  • What kind of entrepreneurship traits he lacks and what steps should be taken to set it

Phase3 – Follow-up Phase:

Follow up phase of EDP has been termed as the post-training phase. The ultimate objective is to develop competent entrepreneurs.

So that they can start their project. Post-training phase is a review phase of a training programme.

It consists of reviewing of work in the following manner:

  • Review of pre-training work
  • Review of actual training programme
  • Review of the post training programme so that the cost effectiveness of the present programme can be evaluated.

Major Relevance of EDP 

Relevance of EDP can be summarised as follows:

1. Creation of Employment Opportunities:

Unemployment is one of the most important problems confronting developing and underdevelopment countries, EDP’s enable prospective entrepreneurs in the setting up of their own units, thus enabling them to get self-employment. With the setting up of more and more units by entrepreneurs, both on a small and large scale, numerous job opportunities are created for the others.

Entrepreneurs in this way get an opportunity to lead an independent and honourable life and at the same time they enable others in getting gainful employment. Several schemes like Nehru Rozgar Yojna, National Rural Employment Programme (NREP), and Integrated Rural Development Programme (IRDP) etc., have been initiated by the government of India in this direction.

The thrust of all these schemes is to eliminate poverty and generate gainful employment opportunities for the unemployed. Thus entrepreneurs can play an effective role in reducing the problem of unemployment.

2. Capital Formation:

It is not possible to set up an enterprise without adequate funds. Entrepreneur as an organiser of factors of production employs his own as well as borrowed resources for the setting up of his enterprise. Entrepreneurs mobilise the idle savings of the public and put them to productive use.

In this way he helps in capital formation which is so essential for the industrial and economic development of a country. Various development banks like ICICI, IFCI, IDBI; SFCs, SIDCs take initiative in promoting entrepreneurship through assistance to various agencies involved in EDP and by providing financial assistance to new entrepreneurs.

3. Balanced Regional Development:

Small scale units can be set up in industrially backward and remote areas with limited financial resources. Successful EDP’s assist in accelerating the pace of industrialization in the backward areas and reduce the concentration of economic power in the hands of a few. Entrepreneurs feel like taking advantage of the various concessions and subsidies offered by the state and central government.

Success stories of entrepreneurs set the right example for others to follow and this accelerates the pace of industrialization in the backward areas. Setting up more units leads to more development of backward areas and balanced regional development.

4. Use of Local Resources:

In the absence of any initiative local resources are likely to remain unutilized. Proper use of these resources can result in the progress or development of the area and that too at lower cost. Alert entrepreneurs seize the opportunity and exploit it in the best interests of the area and industry. Effective EDPs can help in the proper use of local resources by providing guidance, assistance, education and training to the prospective entrepreneurs.

5. Improvement in Per Capita Income:

Entrepreneurs are always on the lookout for opportunities. They explore and exploit the opportunities. Entrepreneurs take the lead in organising various factors of production by putting them into productive use through the setting up of enterprises. More enterprises will lead to more production, employment and generation of wealth in the form of goods and services. It will result in the increase in the overall productivity and per capita income in the country. EDPs play a positive role in the setting of more units and thus help in generation of more employment and income.

6. Improvement in the Standard of Living:

Entrepreneurs by adopting latest innovations help in the production of a wide variety of goods & services. By making efficient use of the resources, they start producing more of better quality and that too at lower costs.

This enables them to ensure easy availability of better quality products at lower prices to the consumers which result in the improvement in the standard of living of the people. EDPs provide the necessary support to entrepreneurs by educating them about the latest innovations and market trends.

Entrepreneurs enable a country to produce a wide variety of better quality goods & services and that too at competitive prices. They develop substitutes of the goods being imported and thus prevent over-dependence on foreign countries and at the same time help in the saving of precious foreign exchange.

Through sale of their surplus products in foreign market entrepreneurs enable a country to earn foreign exchange, which is essential for meeting developmental needs of the economy. Export promotion and import substitution thus help in promoting economic independence of the economy.

8. Preventing Industrial Slums:

Industrially developed areas are faced with the problem of industrial slums, which result in over burdening of civic amenities and adverse impact on the health of people. Dispersal of industries can help in the overcoming of this grave problem.

EDPs can help in preventing spread of industrial slums by providing various incentives, subsidies and infrastructural support to entrepreneurs for setting up their enterprises in industrially backward areas. This will also help in reducing pollution and overtaxing of civic amenities.

9. Reducing Social Tension:

Unemployment amongst the young and educated people is emerging as the major cause of social unrest. People are bound to feel frustrated if they fail to get gainful employment after completion of their education.

EDPs can help in channelizing the talent of this section of society in the right direction by providing proper guidance, training and assistance for setting up their enterprises. This results in generation of self-employment and prevention of social tension, unrest etc.

10. Facilitating Overall Development:

An entrepreneur acts as a catalytic agent for change which results in chain reaction. With the setting up of an enterprise the process of industrialization is set in motion. This unit will generate demand for various types of inputs required by it and there will be so many other units which will require the output of this unit.

This leads to overall development of an area due to increase in demand and setting up of more and more units there. Moreover, the success of one entrepreneur sets the right type of example for others to follow. Entrepreneurs, thus, create an environment of enthusiasm and convey a sense of purpose. This gives future impetus to the overall development of that area.

Steps of Entrepreneurship Development Programme (EDP)

The steps of EDP are as follows:  

1. Outline the objectives of the program and focus on venture development:

Entrepreneurship development aims at individuals who want to start or possibly expand a business. The aims of a program have to be clearly explained otherwise the program will never reach its full potential.

2. Select educated people who have high entrepreneurship potential:

An entrepreneurship development program requires that various people be selected. However, most programs tend to look for a specific group of educated people rather than target everyone. Ideally, you have to look at the education and traits that you are looking for, in an entrepreneur, and match them with the people who have applied for the program.

3.Select uneducated people who have high entrepreneurship potential: 

Even though many people are uneducated, they have great entrepreneurship potential because they have the right motivation. Such people need to be aided by assistance packages where training can be given on entrepreneurship. This will instil confidence and teach them the skills they need in order to provide for their family.

4. Identify the local market and search for people who have potential in it:

By concentrating on selecting local entrepreneurs, the effects of the program can be easily and quickly seen within the community.

5. Provide support through private sector based organisations: 

By concentrating on selecting local entrepreneurs, the effects of the program can be easily and quickly seen within the community. They help reduce the cost of the entrepreneurship development program and increase its effectiveness.

6. Provide a methodology that will help in improving the entrepreneurs in the short as well as long run:

Entrepreneur development training proves to be highly effective when finance, quality assurance, marketing and productivity are linked to the training program.

7. Implement measures to improve usefulness of trainers and facilitators:

Training facilitators can significantly improve their usefulness in tackling the needs of entrepreneurs.

8. Selection of areas for pilot program:

Selecting pilot target areas will usually depend on the ease at which support institutions are available. It will also depend on the interest people take in entrepreneurship development programs. These facts can never be the same for any two geographical locations and hence must be considered carefully.

9. Launch pilot ED programs:

Analysing pilot feasibility is an effective way of launching a major entrepreneurship development program. If the program shows signs of high promise, it can be launched on a national level.

10. Government policies:

Government policies usually have a substantial impact on the number of entrepreneurs in a country.

Different Types of EDP Courses Conducted by the SIDO

Entrepreneurship Development Programme is defined as a programme designed to help an individual in strengthening his entrepreneurship motive and in acquiring skills and capabilities necessary for playing his entrepreneurship role effectively. It is necessary to promote this understanding of motives and their impact on entrepreneurship values and behaviour for this purpose.

EDP means a programme designed to help a person in strengthening his entrepreneurship motive and in acquiring skills and capabilities necessary for playing his entrepreneurship role effectively. It is necessary to promote his understanding of motives, motivation patterns, their impact on behaviour and entrepreneurship value.

EDPs endeavour to change, educate and equip a person to become a successful entrepreneur.

The different types of EDP courses conducted by the SIDO for various categories of persons are:

  • EDPs among non-engineers
  • EDPs among self-employment beneficiaries
  • Technical training courses (for workers of SSI, prospective entrepreneurs)
  • Industrial management course (only for SSIs, their managerial personnel, prospective entrepreneur group)
  • EDPs among women entrepreneurs
  • EDPs for rural artisans, students, weaker sections of the society, physically handicapped persons etc

Role of Government in EDP

Small and Medium-sized Enterprises (SMEs) in market economies are the engine of economic development. Owing to their private ownership, entrepreneurship spirit, their flexibility and adaptability as well as their potential to react to challenges and changing environments, SMEs contribute to sustainable growth and employment generation in a significant manner.

SMEs have strategic importance for each national economy due a wide range of reasons. Logically, the government shows such an interest in supporting entrepreneurship and SMEs. There is no simpler way to create new job positions, increasing GDP and rising standard of population than supporting entrepreneurship and encouraging and supporting people who dare to start their own business. Every surviving and successful business means new jobs and growth of GDP.

Therefore, designing a comprehensive, coherent and consistent approach of Council of Ministers and entity governments to entrepreneurship and SMEs in the form of government support strategy to entrepreneurship and SMEs is an absolute priority.

A comprehensive government approach to entrepreneurship and SMEs would provide for a full coordination of activities of numerous governmental institutions (chambers of commerce, employment bureaus, etc.,) and NGOs dealing with entrepreneurship and SMEs.

With no pretension of defining the role of government in supporting entrepreneurship and SMEs, we believe that apart from designing a comprehensive entrepreneurship and SMEs strategy, the development of national SME support institutions and networks is one of key conditions for success.

There are no doubts that governments should create different types of support institutions:

i) To provide information on regulations, standards, taxation, customs duties, marketing issues

ii) To advise on business planning, marketing and accountancy, quality control and assurance

iii) To create incubator units providing the space and infrastructure for business beginners and innovative companies, and helping them to solve technological problems and to search for know-how and promote innovation

iv) To help in looking for partners. In order to stimulate entrepreneurship and improve the business environment for small enterprises

1. Training:

Basic training differs from product to product but will necessarily involve sharpening of entrepreneurship skills. Need based technical training is provided by the Govt., and State Govt. technical Institutions.

There are a number of Government organisations as well as NGOs who conduct EDPs and MDPs. These EDPs and MDPs are conducted by SMEs, NIESBUD, NSIC, IIE, NISIET, Entrepreneurship Development Institutes and other state government developmental agencies.

2. Marketing Assistance:

There are Governmental and non-governmental specialised agencies which provide marketing assistance. Besides promotion of MSME products through exhibitions, NSIC directly markets the MSME produce in the domestic and overseas market. NSIC also manages a single point registration scheme for manufacturers for Govt., purchase. Units registered under this scheme get the benefits of free tender documents and exemption from earnest money deposit and performance guarantee.

3. Promotional Schemes:

Government accords the highest preference to development of MSME by framing and implementing suitable policies and promotional schemes. Besides providing developed land and sheds to the entrepreneurs on actual cost basis with appropriate infrastructure, special schemes have been designed for specific purposes like quality upgradation, common facilities, entrepreneurship development and consultancy services at nominal charges.

Government of India has been executing the incentive scheme for providing reimbursement of charges for acquiring ISO 9000 certification to the extent of 75% of the cost subject to a maximum of Rs. 75,000 in each case.

ISO 9000 is a mechanism to facilitate adoption of consistent management practices and production techniques as decided by the entrepreneur himself. This facilitates achievement of desired level of quality while keeping check on production process and management of the enterprise.

4. Concession on Excise Duty:

MSME units with a turnover of Rs. 1 crore or less per year have been exempted from payment of Excise Duty. Moreover there is a general scheme of excise exemption for MSME brought out by the Ministry of Finance which covers most of the items.

Under this, units having turnover of less than Rs. 3 crores are eligible for concessional rate of Excise Duty. Moreover, there is an exemption from Excise Duty for MSME units producing branded goods in rural areas.

5. Credit Facility to MSME:

Credit to the micro, small and medium scale sector has been covered under priority sector lending by banks. Small Industries Development Bank of India (SIDBI) has been established as the apex institution for financing the MSME. Specific schemes have been designed for implementation through SIDBI, SFCs, Scheduled Banks, SIDCs and NSIC etc.

Loans upto Rs. 5 lakhs are made available by the banks without insisting on collaterals. Further Credit Guarantee Fund for micro, small and medium enterprises has been set up to provide guarantee for loans to MSME upto Rs. 25 lakhs extended by Commercial Banks and some Regional Rural Bank.

Functions of National Level and State Level Institutions in EDP in Entrepreneurship 

Functions of national level institutions:.

The following are the functions of national levels institutions for entrepreneurship development:

  • To evolve standardised materials and processes for selection, training, support and sustenance of entrepreneurs, potential and existing
  • To help/support and affiliate institutions/organisations in carrying out training and other entrepreneurship development related activities
  • To train trainers, promoters and consultants in various areas of entrepreneurship development
  • To provide national/international forums for interaction and exchange of experiences helpful for policy formulation and modification at various levels
  • To offer consultancy nationally/internationally for promotion of entrepreneurship and small business development
  • To share internationally, the experience and expertise in entrepreneurship development
  • Creating a multiplier effect on opportunities for self-employment
  • Augmenting the supply of competent entrepreneurs through training
  • Inculcating the spirit of entrepreneurship in youth
  • Developing new knowledge and insights in entrepreneurship theory and practise through research
  • Facilitating corporate excellence through creating intrapreneurs
  • Improving managerial capabilities of small scale industries
  • Sensitising the support system to facilitate entrepreneurs establish and manage their enterprise
  • Promote micro enterprise at rural level
  • To set up state level entrepreneurship institutions
  • Contribute to dispersal of business ownership

Functions of State Level Institutions:

State level institutions include the following along with their specific functions:

1. District Industries Centre:

The Government of Karnataka established the District Industries Center (DIC) in 1913 under the erstwhile Princely State of Mysore to oversee the Industrial Development in the State. This department works under the Commerce and Industries Department of Karnataka, at the state level through the Directorate of Industries and Commerce and at the District level through the network of District Industries Centres.

The following are some of the main functions of the DIC:

i) It monitors the registration of MSMEs

ii) It provides infrastructural assistance to entrepreneurs in form of grievance redressal through the District level clearance committee of Industries and commerce, allotment of KIADB’s land to SMEs in the District and recommendation for loans from financial institutions

iii) It assists in implementation of incentive schemes through sanction and disbursement of Investment Subsidy. It also inspects and recommends investment subsidies to food processing industries of India

iv) It is responsible for the implementation and Monitoring of the Prime Minister Employment Generation programme

v) It helps in the implementation and monitoring of the Special Component Plan and the Tribal Sub plans that provide assistance to SC & ST artisans in form of training, better toolkits, venture and equity capital etc

vi) DIC is also involved in conducting various entrepreneurship and vendor development and awareness programmes at Hobli, Taluk and District levels

vii) DIC helps in arranging buyer-seller meets

viii) Various other programmes are taken up by DIC such as Cluster Development Programmes and Sensitization Programmes

ix) DIC conducts various Industrial Exhibitions at District and Taluk levels where young entrepreneurs could showcase their products and services and artisans could showcase their work

x) DIC also follows-up the Industrial Approvals

2. State Financial Corporations:

They are established by respective states and are playing a significant role in providing financial assistance and other types of support to SSIs.

State Financial Corporation Act passed in 1951 provides long term finance for certain identified groups of items in manufacturing as well as service sectors.

SISI has been established by GOI to help the SSI sector on different issues.

Its main activities include:

  • Assistance/consultancy to prospective entrepreneurs
  • Assistance/consultancy to existing units
  • Publishing information pertaining to economic and industrial activities of the state
  • Conducting surveys to identify emerging business opportunities
  • Profiling various projects
  • Undertaking Entrepreneurship Development Programmes (EDP)
  • Publishing the data on the production index
  • Quality control and Up gradation
  • Export Promotion measures
  • Setting up of ancillary industries
  • Creation of common facility workshop
  • Preparation of Directory of specific Industry
  • Intensive Technical Assistance
  • Co-ordinate with DICs in promoting industrial development
  • Coordinate with various government functionaries
  • Conducting market surveys on various products/services

SIDBI was established in 1990. This institution, through its five regional offices and about 33 branches, provides varied types of finance to SSIs. The types are – (i) Direct finance, (ii) Foreign currency loans (iii) Venture capital fund (iv) Refinancing and (v) Micro financing.

KSIIDC is another institution which extends financial support to SSIs in Karnataka. This organisation of Karnataka has no specific financial programme for adaptation of pollution control etc., but provides medium and long term loans, equipment financing and direct equity participation.

Institutes Conducting and Organising EDP

The work of entrepreneurship development is not very simple and closely related to the economic and social environment which is prevalent in society. Before independence, the private sector dominated all sectors of the Indian economy and that too was concentrated in a few hands only.

However, after independence, Govt. of India recognized the need and role of entrepreneurs in the process of rapid industrialization and economic deve­lopment.

The major institutes conducting & organising EDP are as follows in three parts:

  • Govt. of India establish institution of all
  • State Level Institutes
  • National Level Institutes

The Govt. of India has established many institutions at all India level or central level in the field of EDP’s which are as follows:

1. Management Development Institute (MDI):

It is one of the institutes under central level in the field of EDP’s which was established in Gujarat in 1975 and sponsored by Industrial finance Corporation of India. Its main aim is to improve managerial effectiveness in the industry.

This institute organises or conducts several managerial development pro­gramme which are as follows:

  • Indian Economic Services. (IES)
  • Indian Administration Services (IAS)
  • Oil & Natural Gas Commission (ONGC)
  • Bharat and Heavy Electrical Ltd. (BHEL)
  • Bharat Aluminum Company Ltd. (BALCO)
  • Export Credit Guarantee Corporation of India (ECGCL)
  • Bureau of Indian Standards (BIS)
  • Hindustan Machine Tools (HMT)
  • Indian Drugs and Pharmaceuticals Ltd. (IDPL)
  • Uttar Pradesh State Industrial Development Corporation Ltd. (UPSIDC)
  • Madhya Pradesh Financial Corporation (MPFC)

2. Entrepreneurship Development Institute of India (EDII):

It is one of the national institutes which was established by all Indian Financial Institutions and Govt. of Gujarat. It is also merged in entrepreneurship develop­ment. It provides training through a training programme for encouraging the participation of backward regions.

Its main functions are as follows:

  • Selection of potential entrepreneurs
  • Achievement, motivation & training
  • Selection of product and preparation of project report
  • Imparting business management training
  • Rendering post training
  • Evolving innovative training techniques for trainers

3. Small Industries Development Organization (SIDO):

It is one of the institutes which was established in 1954 by the central Govt. This organisation provides its services through 27 small industrial services Institution, 314 regional training centres, 20 local testing centres, 4 product co-process and centres, 2 shoe training centres and 4 production centres. It is also pro­viding training grounds for entrepreneurs.

4. Small Industries Services Institute (SISI):

It is also one of the institutes which provides technical, economical, and managerial assistance. Under EDP, this institute organises management training programmes.

5. All India Small Scale Industry Board (AISSIB):

This institute was established in 1954 determining the policies and programmes for the develop­ment of small industries.

It induces the representational of following organisations:

  • Representatives of the Central organisation
  • Representatives of the Central Government
  • Representatives of Different organisations such as NSIC, SFC etc
  • Representatives of RBI and SBI
  • Non-Government members, such as members of public commission, Trade & Industries members

6. National Small Industries Corporation Limited (NSIC):

The main object of the Institution which was established in 1955 with the help of the Central Government is to assist the small industries in the government purchase programme. It provides a large market to small industries for their selling products and services.

7. National Institute for Entrepreneurship and Small Business Development (NIESBUD):

This institute was established by the Govt. of India in 1983 and started its functioning from 6th July 1983 under the Industries Ministry of India.

The main objectives and functions of this institute are as follows:

  • Evolving effective training strategies and methodology
  • Formulation of scientific selection procedure
  • Standardising model syllabi for training various target groups
  • Development of training aids, manuals and other tools
  • Facilitating and supporting agencies which are engaged in entre­preneurship development
  • Conducting such types of programmes which are not taken by other agencies
  • Maximisation of benefits which leads to accelerate the process of entrepreneurship development
  • Conducting workshops, seminars, conferences etc. for entrepreneurship development programmes
  • Organising all those activities which develop entrepreneurship culture in society
  • To assist in setting up of regional and state level training institutes for entrepreneurship and small business development

8. National Alliance of Young Entrepreneur (NAYE):

It has launched numerous schemes in collaboration with various public sector banks. The main aim of the scheme is to encourage young entrepreneurs to explore investment and self-employment opportunities. This scheme was set up by a women’s wing in 1975.

9. National Institute of Small Industries Extension Training (NISIET):

It was established in 1960. The prime objective of NISIET is to conduct training programmes and give managerial assistance and technical consultancy. It organises seminars and research workshops.

10. National Research Development Corporation (NRDC):

This institute was established in 1953 under the department of science and industries research. The main function of the corporation is to provide assistance to technological development functions. It also maintains Industrial relations with other technological development institutes. It constructs a large storage system for products which are manufactured by research and development institutes.

11. Risk Capital and Technological Finance Corporation Limited (RCTEC):

This institute was established in Feb. 1988 having authorised capital of Rs. 15 lakhs. The main aim is to provide capital assistance. Beside this, it also provides venture capital for technological promotion and development to highly technical projects.

The functions of the institutes are as follows:

a. Providing financial assistance in recognizing research centres for new technology, new production processes, marketing services, energy protection, technological promotion & development, environment protection

b. Conducting commercial research and development programmes

12. Centre for Entrepreneurship Development (CED):

It was adver­tised by the Govt. of Gujarat and public financial Institutions operating in the state. It conducts EDP at various centres.

The financial features of the training programme are:

  • Conducting a training programme after a survey of opportunities was made
  • Establishment of appropriate linkage with supporting agencies, applying finance, raw material etc. Covering theoretical and practical aspects of the training programme
  • For selection of entrepreneurs, behavioural tests were conducted

13. Miscellaneous Institute of National Level and State Level:

a. National Level:

  • Industrial Development Bank of India (IDBI)
  • Industrial Finance Corporation of India (IFCI)
  • Industrial Credit and Investment Corporation of India (ICICI)
  • National Small Scale Industries Development Corporation. (NASIOC)
  • Small Industries Development Bank of India. (SIDBI)
  • Khadi & Village Industries Centre (KVIC)
  • National Bank of Agriculture and Rural Development (NABARD)
  • Science and Technology Entrepreneur Park (STEP)

b. State Level:

  • District Industries Centre (DIC)
  • State Finance Corporation (SFC)
  • Technical Consultancy organisations. (TCOs)

Problems of EDP 

The various problems of entrepreneurship development programme are:

1. Non Availability of Competent Faculty:

There is a problem of non-availability of competent teachers and even when they are available, they are not prepared to take classes in small towns and backward areas. This naturally creates problems for the agencies conducting EDP.

2. Over Estimation of Trainees:

Under EDPs it is assumed that the trainees have aptitude for self-employment and training will motivate and enable the trainees in the successful setting up and managing of their enterprises. These agencies thus overestimate the aptitude and capabilities of the educated youth. Thus on one hand the EDPs do not impart sufficient training and on the other financial institutions are not prepared to finance these risky enterprises set up by the not so competent entrepreneurs.

3. Duration of EDPs:

An attempt is made during the conduct of EDPs to prepare prospective entrepreneurs thoroughly for the various problems they will be encountering during the setting up and running of their enterprises. Duration of most of these EDPs varies between 4 to 6 weeks, which is too short a period to instil basic managerial skills in the entrepreneurs. Thus the very objective to develop and strengthen entrepreneurship qualities and motivation is defeated.

4. No Policy at the National Level: 

Though the Government of India is fully aware-about the importance of entrepreneurship development, yet we do not have a national policy on entrepreneurship. It is expected that the government will formulate and enforce a policy aimed at promoting balanced regional development of various areas through promotion of entrepreneurship.

5. Non Availability of Infrastructural Facilities:

No prior planning is done for the conduct of EDPs. EDPs conducted in rural and backward areas lack infrastructural facilities like proper classroom suitable guest speakers, boarding and lodging etc.

6. Improper Methodology:

The course contents are not standardised and most of the agencies engaged in EDPs are themselves not fully clear about what they are supposed to do for the attainment of predetermined goals. This puts a question mark on the utility of these programmes.

7.  Mode of Selection:

There is no uniform procedure adopted by various agencies for the identification of prospective entrepreneurs. Organisations conducting EDPs prefer those persons who have some project ideas of their own and thus this opportunity is not provided to all the interested candidates.

8. Poor Response of Financial Institutions:

Entrepreneurs are not able to offer collateral security for the grant of loans. Banks are not prepared to play with the public money and hence they impose various conditions for the grant of loans. Those entrepreneurs who fail to comply with the conditions are not able to get loans and hence their dream of setting up their own enterprises is shattered. Helpful attitude of lending institutions will go a long way in stimulating the entrepreneurship climate.

Operational Problems of EDP

The operational problems of EDP are as follows:

  • Inherent inability
  • Inconsistent programme design
  • Diverse opinions
  • Perpetual ambiguity
  • Lack of proper strategy (No clear-cut objective)
  • Low institutional commitment
  • Lack of clarity in approach
  • Absence of local support
  • Lack of creativity and commitment
  • Non-availability of inputs
  • Insufficient follow up
  • Absence of research facilities
  • Ill-planned training methodology

Related Articles:

  • Importance of Entrepreneurship
  • Industrialisation and India’s Economic Development
  • Entrepreneurship Development
  • Community Development (CD) Programme
  • US Programs
  • Scholarship
  • Govt. Scheme
  • Universities
  • Student Loan

Entrepreneurial Development Programme | Objectives, Phases and Importance

Entrepreneurial Development Programme (EDP)

  • Meaning and Definition of EDP.
  • Objectives of  EDPs.
  • Phases of EDPs.
  • Importance of EDPs.

What is EDP ?

Meaning and definition of entrepreneurial development programme (edp) :, objectives of  entrepreneurial development programme (edp) :.

  • To make people learn compliance with law.
  • To develop and fortify entrepreneurial quality, i.e., motivation or need for achievement.
  • To develop small and medium scale enterprises in order to generate employment and widen the scope of industrial ownership.
  • To industrialize rural and backward sections of the society.
  • To understand the merits and demerits of becoming an entrepreneur.
  • To investigate the environmental set-up relating to small industries and small businesses.
  • To design project for manufacturing a product.
  • To increase the supply of entrepreneurs for quick industrial development.
  • To prepare individuals to accept the uncertainty involved in running a business.
  • To develop managerial skills among small entrepreneurs for improving the performance of small-scale industries.
  • To offer profitable employment opportunities to educated young men and women.
  • To expand the sources of entrepreneurship.

Phases of Entrepreneurial Development Programme (EDP) :

a) Promotional activities by using electronic or print media, posters, leaflets, etc. b) Contacting business experts, different agencies, NGOs that can become a part of the programme, directly or indirectly. c) Printing the application forms and availing them in different locations with the instructions. d) Establishing selection committee for screening of candidates. e) Preparing budget and getting it approved from the management and arranging other activities which are related to the programme. f) Arranging and deciding the need-based elements in the syllabus of training programme and to contact guest faculties for the training session.
  • To assist trainees in a meaningful manner so that trainees can realize their business plan.
  • To analyse the development made by trainees in the project implementation.
  • To evaluate the post-training approach.
  • To provide escort services to the trainees with the help of various promotional and financial institutions.
  • Postal questionnaires.
  • Telephonic follow-up.
  • Individual contact by the trainer.
  • Team meetings.
  • Small Industries Development Organisation (SIDO),
  • Commercial Banks,
  • National Alliance of Young Entrepreneurs (NAYE),
  • National Institute for Entrepreneurship and small Business Development (NIESBUD),
  • Entrepreneurship Development Institute of India (EDI),
  • India Investment Centre (LIC),
  • Small-scale industrial Development Bank Of India (SIDBI), and
  • Technical Consultancy Organisation (TCO).

Importance of Entrepreneurial Development Programme (EDP) :

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1.1: Chapter 1 – Introduction to Entrepreneurship

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  • Page ID 21253

  • Lee A. Swanson
  • University of Saskatchewan

Whilst there is no universally accepted definition of entrepreneurship, it is fair to say that it is multi-dimensional. It involves analyzing people and their actions together with the ways in which they interact with their environments, be these social, economic, or political, and the institutional, policy, and legal frameworks that help define and legitimize human activities. – Blackburn (2011, p. xiii)

Entrepreneurship involves such a range of activities and levels of analysis that no single definition is definitive. – Lichtenstein (2011, p. 472)

It is complex, chaotic, and lacks any notion of linearity. As educators, we have the responsibility to develop our students’ discovery, reasoning, and implementation skills so they may excel in highly uncertain environments. – Neck and Greene (2011, p. 55)

Learning Objectives

  • Examine the challenges associated with defining the concepts of entrepreneur and entrepreneurship
  • Discuss how the evolution of entrepreneurship thought has influenced how we view the concept of entrepreneurship today
  • Discuss how the list of basic questions in entrepreneurship research can be expanded to include research inquiries that are important in today’s world
  • Discuss how the concepts of entrepreneurial uniqueness, entrepreneurial personality traits, and entrepreneurial cognitions can help society improve its support for entrepreneurship
  • Apply the general venturing script to the study of entrepreneurship

This chapter provides you with an overview of entrepreneurship and of the language of entrepreneurship. The challenges associated with defining entrepreneur and entrepreneurship are explored, as is an overview of how entrepreneurship can be studied.

The objective is to enable you to apply current concepts in entrepreneurship to the evaluation of entrepreneurs, their ventures, and the venturing environment. You will develop skills, including the capability to add value in the new venture sector of the economy. You will acquire and practice evaluation skills useful in consulting, advising, and making new venture decisions.

Entrepreneurs and Entrepreneurship

Considerations influencing definitions of entrepreneur and entrepreneurship.

It is necessary to be able to determine exactly who entrepreneurs are before we can, among other things, study them, count them, provide special loans for them, and calculate how and how much they contribute to our economy.

  • Does someone need to start a business from scratch to be called an entrepreneur?
  • Can we call someone an entrepreneur if they bought an ongoing business from someone else or took over the operations of a family business from their parents?
  • If someone starts a small business and never needs to hire employees, can they be called an entrepreneur?
  • If someone buys a business but hires professional managers to run it so they don’t have to be involved in the operations, are they an entrepreneur?
  • Is someone an entrepreneur if they buy into a franchise so they can follow a well-established formula for running the operation?
  • Is someone an entrepreneur because of what they do or because of how they think?
  • Can someone be an entrepreneur without owning their own business?
  • Can a person be an entrepreneur because of the nature of the work that they do within a large corporation?

It is also necessary to fully understand what we mean by entrepreneurship before we can study the concept.

Gartner (1990) identified 90 attributes that showed up in definitions of entrepreneurs and entrepreneurship provided by entrepreneurs and other experts in the field. The following are a few of these attributes:

  • Innovation – Does a person need to be innovative to be considered an entrepreneur? Can an activity be considered to be entrepreneurial if it is not innovative?
  • Activities – What activities does a person need to do to be considered an entrepreneur?
  • Creation of a new business – Does someone need to start a new business to be considered to be an entrepreneur, or can someone who buys a business, buys into a franchise, or takes over an existing family business be considered an entrepreneur?
  • Starts an innovative venture within an established organization – Can someone who works within an existing organization that they don’t own be considered an entrepreneur if they start an innovative venture for their organization?
  • Creation of a not-for-profit business – Can a venture be considered to be entrepreneurial if it is a not-for-profit, or should only for-profit businesses be considered entrepreneurial?

After identifying the 90 attributes, Gartner (1990) went back to the entrepreneurs and other experts for help in clustering the attributes into themes that would help summarize what people concerned with entrepreneurship thought about the concept. He ended up with the following eight entrepreneurship themes:

1. The Entrepreneur – The entrepreneur theme is the idea that entrepreneurship involves individuals with unique personality characteristics and abilities (e.g., risk-taking, locus of control, autonomy, perseverance, commitment, vision, creativity). Almost 50% of the respondents rated these characteristics as not important to a definition of entrepreneurship (Gartner, 1990, p. 21, 24).

  • “The question that needs to be addressed is: Does entrepreneurship involve entrepreneurs (individuals with unique characteristics)?” (Gartner, 1990, p. 25).

2. Innovation – The innovation theme is characterized as doing something new as an idea, product, service, market, or technology in a new or established organization. The innovation theme suggests that innovation is not limited to new ventures, but recognized as something which older and/or larger organizations may undertake as well (Gartner, 1990, p. 25). Some of the experts Gartner questioned believed that it was important to include innovation in definitions of entrepreneurship and others did not think it was as important.

  • “Does entrepreneurship involve innovation?” (Gartner, 1990, p. 25).

3. Organization Creation – The organization creation theme describes the behaviors involved in creating organizations. This theme described acquiring and integrating resource attributes (e.g., Brings resources to bear, integrates opportunities with resources, mobilizes resources, gathers resources) and attributes that described creating organizations (new venture development and the creation of a business that adds value). (Gartner, 1990, p. 25)

  • “Does entrepreneurship involve resource acquisition and integration (new venture creation activities)?” (Gartner, 1990, p. 25)

4. Creating Value – This theme articulated the idea that entrepreneurship creates value. The attributes in this factor indicated that value creation might be represented by transforming a business, creating a new business growing a business, creating wealth, or destroying the status quo.

  • “Does entrepreneurship involve creating value?” (Gartner, 1990, p. 25).

5. Profit or Nonprofit

  • “Does entrepreneurship involve profit-making organizations only” (Gartner, 1990, p. 25)?
  • Should a focus on growth be a characteristic of entrepreneurship?

7. Uniqueness – This theme suggested that entrepreneurship must involve uniqueness. Uniqueness was characterized by attributes such as a special way of thinking, a vision of accomplishment, ability to see situations in terms of unmet needs, and creates a unique combination.

  • “Does entrepreneurship involve uniqueness?” (Gartner, 1990, p. 26).

8. The Owner-Manager – Some of the respondents questioned by Gartner (1990) did not believe that small mom-and-pop types of businesses should be considered to be entrepreneurial. Some respondents felt that an important element of a definition of entrepreneurship was that a venture be owner-managed.

  • To be entrepreneurial, does a venture need to be owner-managed?

Examples of Definitions of Entrepreneur

An entrepreneur can be described as “one who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying significant opportunities and assembling the necessary resources to capitalize on them” (Zimmerer & Scarborough, 2008, p. 5).

An entrepreneur is “one who organizes, manages, and assumes the risks of a business or enterprise” (Entrepreneur, n.d.).

Examples of Definitions of Entrepreneurship

Entrepreneurship can be defined as a field of business that

seeks to understand how opportunities to create something new (e.g., new products or services, new markets, new production processes or raw materials, new ways of organizing existing technologies) arise and are discovered or created by specific persons, who then use various means to exploit or develop them, thus producing a wide range of effects (Baron, Shane, & Reuber, 2008, p. 4)

A concise definition of entrepreneurship “is that it is the process of pursuing opportunities without limitation by resources currently in hand” (Brooks, 2009, p. 3) and “the process of doing something new and something different for the purpose of creating wealth for the individual and adding value to society” (Kao, 1993, p. 70)

The Evolution of Entrepreneurship Thought

This section includes an overview of how entrepreneurship has evolved to the present day.

The following timeline shows some of the most influential entrepreneurship scholars and the schools of thought (French, English, American, German, and Austrian) their perspectives helped influence and from which their ideas evolved. Schools of thought are essentially groups of people who might or might not have personally known each other, but who shared common beliefs or philosophies.

image1.png

Figure 1 – Historical and Evolutionary Entrepreneurship Thought (Illustration by Lee A. Swanson)

The Earliest Entrepreneurship

The function, if not the name, of the entrepreneur is probably as old as the institutions of barter and exchange. But only after economic markets became an intrusive element of society did the concept take on pivotal importance. Many economists have recognized the pivotal role of the entrepreneur in a market economy. Yet despite his central importance in economic activity, the entrepreneur has been a shadowy and elusive figure in the history of economic theory (Hebert & Link, 2009, p. 1).

Historically those who acted similarly to the ways we associate with modern day entrepreneurs – namely those who strategically assume risks to seek economic (or other) gains – were military leaders, royalty, or merchants. Military leaders planned their campaigns and battles while assuming significant risks, but by doing so they also stood to gain economic benefits if their strategies were successful. Merchants, like Marco Polo who sailed out of Venice in the late 1200s to search for a trade route to the Orient, also assumed substantial risks in the hope of becoming wealthy (Hebert & Link, 2009).

The entrepreneur, who was also called adventurer , projector , and undertaker during the eighteenth century, was not always viewed in a positive light (Hebert & Link, 2009).

Development of Entrepreneurship as a Concept

Risk and uncertainty.

Richard Cantillon (1680-1734) was born in France and belonged to the French School of thought although he was an Irish economist. He appears to be the person who introduced the term entrepreneur to the world. “According to Cantillon, the entrepreneur is a specialist in taking on risk, ‘insuring’ workers by buying their output for resale before consumers have indicated how much they are willing to pay for it” (Casson & Godley, 2005p. 26). The workers’ incomes are mostly stable, but the entrepreneur risks a loss if market prices fluctuate.

Cantillon distinguished entrepreneurs from two other classes of economic agents; landowners, who were financially independent, and hirelings (employees) who did not partake in the decision-making in exchange for relatively stable incomes through employment contracts. He was the first writer to provide a relatively refined meaning for the term entrepreneurship . Cantillon described entrepreneurs as individuals who generated profits through exchanges. In the face of uncertainty, particularly over future prices, they exercise business judgment. They purchase resources at one price and sell their product at a price that is uncertain, with the difference representing their profit (Chell, 2008; Hebert & Link, 2009).

Farmers were the most prominent entrepreneurs during Cantillon’s lifetime, and they interacted with “arbitrageurs” – or middlemen between farmers and the end consumers – who also faced uncertain incomes, and who were also, therefore, entrepreneurs. These intermediaries facilitated the movement of products from the farms to the cities where more than half of the farm output was consumed. Cantillon observed that consumers were willing to pay a higher price per unit to be able to purchase products in the smaller quantities they wanted, which created the opportunities for the intermediaries to make profits. Profits were the rewards for assuming the risks arising from uncertain conditions. The markets in which profits were earned were characterized by incomplete information (Chell, 2008; Hebert & Link, 2009).

Adolph Reidel (1809-1872), form the German School of thought, picked up on Cantillon’s notion of uncertainty and extended it to theorize that entrepreneurs take on uncertainty so others, namely income earners, do not have to be subject to the same uncertainty. Entrepreneurs provide a service to risk-averse income earners by assuming risk on their behalf. In exchange, entrepreneurs are rewarded when they can foresee the impacts of the uncertainty and sell their products at a price that exceeds their input costs (including the fixed costs of the wages they commit to paying) (Hebert & Link, 2009).

Frank Knight (1885-1972) founded the Chicago School of Economics and belonged to the American School of thought. He refined Cantillon’s perspective on entrepreneurs and risk by distinguishing insurable risk as something that is separate from uncertainty, which is not insurable. Some risks can be insurable because they have occurred enough times in the past that the expected loss from such risks can be calculated. Uncertainty, on the other hand, is not subject to probability calculations. According to Knight, entrepreneurs can’t share the risk of loss by insuring themselves against uncertain events, so they bear these kinds of risks themselves, and profit is the reward that entrepreneurs get from assuming uninsurable risks (Casson & Godley, 2005).

Distinction Between Entrepreneur and Manager

Jean-Baptiste Say (1767-1832), also from the French School, advanced Cantillon’s work, but added that entrepreneurship was essentially a form of management. Say “put the entrepreneur at the core of the entire process of production and distribution” (Hebert & Link, 2009, p. 17). Say’s work resulted in something similar to a general theory of entrepreneurship with three distinct functions; “scientific knowledge of the product; entrepreneurial industry – the application of knowledge to useful purpose; and productive industry – the manufacture of the item by manual labour” (Chell, 2008, p. 20).

Frank Knight made several contributions to entrepreneurship theory, but another of note is how he distinguished an entrepreneur from a manager. He suggested that a manager crosses the line to become an entrepreneur “when the exercise of his/her judgment is liable to error and s/he assumes the responsibility for its correctness” (Chell, 2008, p. 33). Knight said that entrepreneurs calculate the risks associated with uncertain business situations and make informed judgments and decisions with the expectation that – if they assessed the situation and made the correct decisions – they would be rewarded by earning a profit. Those who elect to avoid taking these risks choose the relative security of being employees (Chell, 2008).

Alfred Marshall (1842-1924), from the English School of thought, was one of the founders of neoclassical economics. His research involved distinguishing between the terms capitalist, entrepreneur, and manager. Marshall saw capitalists as individuals who “committed themselves to the capacity and honesty of others, when he by himself had incurred the risks for having contributed with the capital” (Zaratiegui & Rabade, 2005, p. 775). An entrepreneur took control of money provided by capitalists in an effort to leverage it to create more money; but would lose less if something went wrong then would the capitalists. An entrepreneur, however, risked his own reputation and the other gains he could have made by pursuing a different opportunity.

Let us suppose that two men are carrying on smaller businesses, the one working with his own, the other chiefly with borrowed capital. There is one set of risks which is common to both; which may be described as the trade risks of the particular business … But there is another set of risks, the burden of which has to be borne by the man working with borrowed capital, and not by the other; and we may call them personal risks (Marshall, 1961, p. 590; Zaratiegui & Rabade, 2005, p. 776).

Marshall recognized that the reward capitalists received for contributing capital was interest income and the reward entrepreneurs earned was profits. Managers received a salary and, according to Marshall, fulfilled a different function than either capitalists or entrepreneurs – although in some cases, particularly in smaller firms, one person might be both an entrepreneur and a manager. Managers “were more inclined to avoid challenges, innovations and what Schumpeter called the ‘perennial torment of creative destruction’ in favour of a more tranquil life” (Zaratiegui & Rabade, 2005, p. 781). The main risks they faced from firm failure were to their reputations or to their employment status. Managers had little incentive to strive to maximize profits (Zaratiegui & Rabade, 2005).

Amasa Walker (1799-1875) and his son Francis Walker (1840-1897) were from the American School of thought, and they helped shape an American perspective of entrepreneurship following the Civil War of 1861-1865. These scholars claimed that entrepreneurs created wealth, and thus played a different role than capitalists. They believed that entrepreneurs had the power of foresight and leadership qualities that enabled them to organize resources and inject energy into activities that create wealth (Chell, 2008).

Entrepreneurship versus Entrepreneur

Adam Smith (1723-1790), from the English School of thought, published An Inquiry into the Nature and Causes of the Wealth of Nations in 1776. In a departure from the previous thought into entrepreneurship and economics, Smith did not dwell on a particular class of individual. He was concerned with studying how all people fit into the economic system. Smith contended that the economy was driven by self-interest in the marketplace (Chell, 2008).

Also from the English School, David Ricardo (1772-1823) was influenced by Smith, Say, and others. His work focused on how the capitalist system worked. He explained how manufacturers must invest their capital in response to the demand for the products they produce. If demand decreases, manufacturers should borrow less and reduce their workforces. When demand is high, they should do the reverse (Chell, 2008).

Carl Menger (1840-1921), from the Austrian School of thought, ranked goods according to their causal connections to human satisfaction. Lower order goods include items like bread that directly satisfy a human want or need like hunger. Higher order goods are those more removed from satisfying a human need. A second order good is the flour that was used to make the bread. The grain used to make the flour is an even higher order good. Entrepreneurs coordinate these factors of production to turn higher order goods into lower order goods that more directly satisfy human wants and needs (Hebert & Link, 2009).

Menger (1950 [1871], p. 160) established that entrepreneurial activity includes: (a) obtaining information about the economic situation, (b) economic calculation – all the various computations that must be made if a production process is to be efficient, (c) the act of will by which goods of higher order are assigned to a particular production process, and (d) supervising the execution of the production plan so that it may be carried through as economically as possible (Hebert & Link, 2009, p. 43).

Entrepreneurship and Innovation

Jeremy Bentham (1748-1832), from the English School of thought, considered entrepreneurs to be innovators. They “depart from routine, discover new markets, find new sources of supply, improve existing products and lower the costs of production” (Chell, 2008).

Joseph Schumpeter’s (1883-1950) parents were Austrian, he studied at the University of Vienna, conducted research at the University of Graz, served as Austria’s Minister of Finance, and was the president of a bank in the country. Because of the rise of Hitler in Europe, he went to the United States and conducted research at Harvard until he retired in 1949. Because of this, he is sometimes associated with the American School of thought on entrepreneurship (Chell, 2008).

Whereas Menger saw entrepreneurship as occurring because of economic progress, Schumpeter took the opposite stance. Schumpeter saw economic activity as leading to economic development (Hebert & Link, 2009). Entrepreneurs play a central role in Schumpeter’s theory of economic development, and economic development can occur when the factors of production are assembled in new combinations .

Schumpeter (1934) viewed innovation as arising from new combinations of materials and forces. He provided the following five cases of new combinations.

  • The introduction of a new good – that is one with which consumers are not yet familiar – or of a new quality of good.
  • The introduction of a new method of production, that is one not yet tested by experience in the branch of manufacture concerned, which need by no means be founded upon a discovery scientifically new, and can also exist in a new way of handling a commodity commercially.
  • The opening of a new market, that is a market into which the particular branch of manufacture of the country in question has not previously entered, whether or not this market has existed before.
  • The conquest of a new source of supply of raw materials or half-manufactured goods, again irrespective of whether this source already exists or whether it has first to be created.
  • The carrying out of the new organisation of any industry, like the creation of a monopoly position … or the breaking up of a monopoly position (Schumpeter, 1934, p. 66).

Another concept popularized by Schumpeter – in addition to the notion of new combinations – was creative destruction . This was meant to indicate that the existing ways of doing things need to be dismantled – to be destroyed – to enable a transformation through innovation to a new way of doing things. Entrepreneurs use innovation to disrupt how things are done and to establish a better way of doing those things.

Basic Questions in Entrepreneurship Research

According to Baron (2004a), there are three basic questions of interest in the field of entrepreneurship:

  • Why do some persons but not others choose to become entrepreneurs?
  • Why do some persons but not others recognize opportunities for new products or services that can be profitably exploited?
  • Why are some entrepreneurs so much more successful than others (Baron, 2004a, p. 221)?

To understand where these foundational research questions came from and what their relevance is today, it is useful to study what entrepreneurship research has uncovered so far.

Entrepreneurial Uniqueness

Efforts to teach entrepreneurship have included descriptions of entrepreneurial uniqueness based on personality, behavioural, and cognitive traits (Chell, 2008; Duening, 2010).

  • Need for achievement
  • Internal locus of control (a belief by an individual that they are in control of their own destiny)
  • Risk-taking propensity
  • Behavioural traits
  • Cognitive skills of successful entrepreneurs

Past studies of personality characteristics and behavioural traits have not been overly successful at identifying entrepreneurial uniqueness.

As it turned out, years of painstaking research along this line has not borne significant fruit. It appears that there are simply not any personality characteristics that are either essential to, or defining of, entrepreneurs that differ systematically from non-entrepreneurs…. Again, investigators proposed a number of behavioural candidates as emblematic of entrepreneurs. Unfortunately, this line of research also resulted in a series of dead ends as examples of successful entrepreneurial behaviours had equal counterparts among samples of non-entrepreneurs. As with the personality characteristic school of thought before it, the behavioural trait school of thought became increasingly difficult to support (Duening, 2010, p. 4-5).

This shed doubt on the value of trying to change personality characteristics or implant new entrepreneurial behaviours through educational programs in an effort to promote entrepreneurship.

New research, however, has resurrected the idea that there might be some value in revisiting personality traits as a topic of study. Additionally, Duening (2010) and has suggested that an important approach to teaching and learning about entrepreneurship is to focus on the “cognitive skills that successful entrepreneurs seem uniquely to possess and deploy” (p. 2). In the next sections we consider the new research on entrepreneurial personality traits and on entrepreneurial cognitions.

Entrepreneurial Personality Traits

While acknowledging that research had yet to validate the value of considering personality and behaviour traits as ways to distinguish entrepreneurs from non-entrepreneurs or unsuccessful ones, Chell (2008) suggested that researchers turn their attention to new sets of traits including: “the proactive personality, entrepreneurial self-efficacy, perseverance and intuitive decision-making style. Other traits that require further work include social competence and the need for independence” (p. 140).

In more recent years scholars have considered how the Big Five personality traits – extraversion, agreeableness, conscientiousness, neuroticism (sometimes presented as emotional stability ), and openness to experience (sometimes referred to as intellect) – might be used to better understand entrepreneurs. It appears that the Big Five traits might be of some use in predicting entrepreneurial success. Research is ongoing in this area, but in one example, Caliendo, Fossen, and Kritikos (2014) studied whether personality constructs might “influence entrepreneurial decisions at different points in time” (p. 807), and found that “high values in three factors of the Big Five approach—openness to experience, extraversion, and emotional stability (the latter only when we do not control for further personality characteristics)—increase the probability of entry into self-employment” (p. 807). They also found “that some specific personality characteristics, namely risk tolerance, locus of control, and trust, have strong partial effects on the entry decision” (p. 807). They also found that people who scored higher on agreeableness were more likely to exit their businesses, possibly meaning that people with lower agreeableness scores might prevail longer as entrepreneurs. When it came to specific personality traits, their conclusions indicated that those with an external locus of control were more likely to stop being self-employed after they had run their businesses for a while. There are several implications for research like this, including the potential to better understand why some entrepreneurs behave as they do based upon their personality types and the chance to improve entrepreneurship education and support services.

Entrepreneurial Cognitions

It is only fairly recently that entrepreneurship scholars have focused on cognitive skills as a primary factor that differentiates successful entrepreneurs from non-entrepreneurs and less successful entrepreneurs. This approach deals with how entrepreneurs think differently than non-entrepreneurs (Duening, 2010; Mitchell et al., 2007).

Entrepreneurial cognitions are the knowledge structures that people use to make assessments, judgments or decisions involving opportunity evaluation and venture creation and growth. In other words, research in entrepreneurial cognition is about understanding how entrepreneurs use simplifying mental models to piece together previously unconnected information that helps them to identify and invent new products or services, and to assemble the necessary resources to start and grow businesses (Mitchell, Busenitz, et al., 2002, p. 97).

Mitchell, Smith, et al. (2002) provided the example of how the decision to create a new venture (dependent variable) was influenced by three sets of cognitions (independent variables). They described these cognitions as follows:

Arrangements cognitions are the mental maps about the contacts, relationships, resources, and assets necessary to engage in entrepreneurial activity; willingness cognitions are the mental maps that support commitment to venturing and receptivity to the idea of starting a venture; ability cognitions consist of the knowledge structures or scripts (Glaser, 1984) that individuals have to support the capabilities, skills, norms, and attitudes required to create a venture (Mitchell et al., 2000). These variables draw on the idea that cognitions are structured in the minds of individuals (Read, 1987), and that these knowledge structures act as “scripts” that are the antecedents of decision making (Leddo & Abelson, 1986, p. 121; Mitchell, Smith, et al., 2002, p. 10)

Cognitive Perspective to Understanding Entrepreneurship

According to Baron (2004a), by taking a cognitive perspective, we might better understand entrepreneurs and the role they play in the entrepreneurial process.

The cognitive perspective emphasizes the fact that everything we think, say, or do is influenced by mental processes—the cognitive mechanisms through which we acquire store, transform, and use information. It is suggested here that this perspective can be highly useful to the field of entrepreneurship. Specifically, it can assist the field in answering three basic questions it has long addressed: (1) Why do some persons but not others choose to become entrepreneurs? (2) Why do some persons but not others recognize opportunities for new products or services that can be profitably exploited? And (3) Why are some entrepreneurs so much more successful than others (Baron, 2004a, p. 221-222)?

Baron (2004a), illustrated how cognitive differences between people might explain why some people end up pursuing entrepreneurial pursuits and others do not. For example, prospect theory (Kahneman & Tversky, 1977) and other decision-making or behavioural theories might be useful in this regard. Research into cognitive biases might also help explain why some people become entrepreneurs.

Baron (2004a) also revealed ways in which cognitive concepts like signal detection theory, regulation theory, and entrepreneurial might help explain why some people are better at entrepreneurial opportunity recognition. He also illustrated how some cognitive models and theories – like risk perception, counterfactual thinking, processing style, and susceptibility to cognitive errors – might help explain why some entrepreneurs are more successful than others.

Cognitive Perspective and the Three Questions

  • Prospect Theory
  • Cognitive Biases
  • Signal Detection Theory
  • Regulation Theory
  • Entrepreneurial Alertness
  • Risk Perception
  • Counterfactual Thinking
  • Processing Style
  • Susceptibility to Cognitive Errors

Entrepreneurial Scripts

  • “Cognition has emerged as an important theoretical perspective for understanding and explaining human behavior and action” (Dutta & Thornhill, 2008, p. 309).
  • Cognitions are all processes by which sensory input is transformed, reduced, elaborated, stored, recovered, and used (Neisser, 1976).
  • Cognitions lead to the acquisition of knowledge, and involve human information processing.
  • Is a mental model, or information processing short-cut that can give information form and meaning, and enable subsequent interpretation and action.
  • The subsequent interpretation and actions can result in expert performance … they can also result in thinking errors.
  • the processes that transfer expertise, and
  • the actual expertise itself.
  • Scripts are generally framed as a linear sequence of steps, usually with feedback loops, that can explain how to achieve a particular task – perhaps like developing a business plan.
  • Sometimes scripts can be embedded within other scripts. For example, within a general venturing script that outlines the sequences of activities that can lead to a successful business launch, there will probably be sub-scripts describing how entrepreneurs can search for ideas, screen those ideas until one is selected, plan how to launch a sustainable business based upon that idea and including securing the needed financial resources, setting up the business, starting it, effectively managing its ongoing operations, and managing the venture such that that entrepreneur can extract the value that they desire from the enterprise at the times and in the ways they want it.
  • The most effective scripts include an indication of the norms that outline performance standards and indicate how to determine when any step in the sequence has been properly completed.

General Venturing Script

Generally, entrepreneurship is considered to consist of the following elements, or subscripts (Brooks, 2009; Mitchell, 2000).

  • Idea Screening
  • Planning and Financing
  • Ongoing Operations

Searching (also called idea formulation or opportunity recognition)

  • This script begins when a person decides they might be a potential entrepreneur (or when an existing entrepreneur decides they need more ideas in their idea pool ).
  • This script ends when there are a sufficient number of ideas in the idea pool.
  • overcome mental blockages to creativity which might hinder this person’s ability to identify viable ideas;
  • implement steps to identify a sufficient number of ideas (most likely 5 or more) which the person is interested in investigating to determine whether they might be viable given general criteria such as this person’s personal interests and capabilities;

Idea Screening (also called concept development)

  • This script begins when the person with the idea pool is no longer focusing on adding new ideas to it; but is instead taking steps to choose the best idea for them given a full range of specific criteria .
  • This script ends when one idea is chosen from among those in the idea pool.
  • Evaluate the political, economic, social, technological, environmental, and legal climates
  • Evaluate the degree of competitiveness in the industry, the threat of substitutes emerging, the threat of new entrants to the industry, the degree of bargaining power of buyers, and the degree of bargaining power of suppliers.
  • Do a market profile analysis to assess the attractiveness of the position within the industry that the potential venture will occupy.
  • Formulate and evaluate potential strategies to leverage organizational strengths, overcome/minimize weaknesses, take advantage of opportunities, and overcome/minimize threats;
  • Complete financial projections and analyze them to evaluate financial attractiveness;
  • Assess the founder fit with the ideas;
  • Evaluate the core competencies of the organization relative to the idea;
  • Assess advice solicited from trusted advisers

Planning and Financing (also called resource determination and acquisition)

  • This script begins when the idea screening script ends and when the person begins making the plans to implement the single idea chosen from the idea pool, which is done in concert with securing financing to implement the venture idea.
  • This script ends when sufficient business planning has been done and when adequate financing has been arranged.
  • The scripting process involves a logical flow of steps to develop a business plan and secure adequate financing to start the business.

Set-Up (also called launch)

  • This script begins when the planning and financing script ends and when the person begins implementing the plans needed to start the business.
  • This script ends when the business is ready to start-up.
  • The scripting process involves a logical flow of steps, including purchasing and installing equipment, securing the venture location and finishing all the needed renovations, recruiting and hiring any staff needed for start-up, and the many other steps needed to prepare for start-up.
  • Start-Up (also called launch)
  • This script begins when the set-up script ends and when the business opens and begins making sales.
  • This script ends when the business has moved beyond the point where the entrepreneur must continually fight for the business’s survival and persistence. It ends when the entrepreneur can instead shift emphasis toward business growth or maintaining the venture’s stability.
  • The scripting process involves a logical flow of steps needed to establish a new venture.

Ongoing Operations (also called venture growth)

  • This script begins when the start-up script ends and when the business has established persistence and is implementing growth (or maintenance) strategies.
  • This script ends when the entrepreneur chooses to harvest the value they generated with the venture.
  • The scripting process involves a logical flow of steps needed to grow (or maintain) a venture.

Studying Entrepreneurship

The following quotations from two preeminent entrepreneurship and entrepreneurship education researchers indicate the growing interest in studies in this field.

Entrepreneurship has emerged over the last two decades as arguably the most potent economic force the world has ever experienced. With that expansion has come a similar increase in the field of entrepreneurship education. The recent growth and development in the curricula and programs devoted to entrepreneurship and new-venture creation have been remarkable. The number of colleges and universities that offer courses related to entrepreneurship has grown from a handful in the 1970s to over 1,600 in 2005 (Kuratko, 2005, p. 577).

Interest in entrepreneurship has heightened in recent years, especially in business schools. Much of this interest is driven by student demand for courses in entrepreneurship, either because of genuine interest in the subject, or because students see entrepreneurship education as a useful hedge given uncertain corporate careers (Venkataraman, 1997, p. 119).

Approaches to Studying Entrepreneurship

Entrepreneurship is a discipline, which means an individual can learn about it, and about how to be an effective entrepreneur. It is a myth that people are born entrepreneurs and that others cannot learn to become entrepreneurs (Drucker, 1985). Kuratko (2005) asserted that the belief previously held by some that entrepreneurship cannot be taught has been debunked, and the focus has shifted to what topics should be taught and how they should be covered.

Solomon (2007) summarized some of the research on what should be covered in entrepreneurship courses, and how it should be taught. While the initial focus was on actions like developing business plans and being exposed to real entrepreneurs, more recently this approach has been supplemented by an emphasis on technical, industry, and personal experience. “It requires critical thinking and ethical assessment and is based on the premise that successful entrepreneurial activities are a function of human, venture and environmental conditions” (p. 172). Another approach “calls for courses to be structured around a series of strategic development challenges including opportunity identification and feasibility analysis; new venture planning, financing and operating; new market development and expansion strategies; and institutionalizing innovation” (p. 172). This involves having students interact with entrepreneurs by interviewing them, having them act as mentors, and learning about their experiences and approaches through class discussions.

Sources of Information for Studying Entrepreneurship

According to Kuratko (2005), “three major sources of information supply the data related to the entrepreneurial process or perspective” (p. 579).

  • Academic journals like Entrepreneurship Theory and Practice , Journal of Business Venturing , and Journal of Small Business Management
  • Proceedings of conferences like Proceedings of the Academy of Management and Proceedings of the Administrative Sciences Association of Canada
  • Textbooks on entrepreneurship
  • Books about entrepreneurship
  • Biographies or autobiographies of entrepreneurs
  • News periodicals like Canadian Business and Profit
  • Trade periodicals like Entrepreneur and Family Business
  • Government publications available through sources like the Enterprise Saskatchewan and Canada-Saskatchewan Business Service Centre (CSBSC) websites and through various government resource centers
  • Data might be collected from entrepreneurs and about entrepreneurs through surveys, interviews, or other methods applied by researchers.
  • Speeches and presentations by practicing entrepreneurs

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Entrepreneurship Development Process

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Overview of Entrepreneurship Development Process

Entrepreneurship is the dynamic process of developing something new with value by devoting the required time and effort, taking up financial risks and relishing the monetary rewards\ associated with it. This product may or may not be new, but the entrepreneur has infused its value. He/she has done it by using the skills and resources effectively and efficiently.

An entrepreneur is a person who is responsible for an entrepreneurship venture. Even though it is widely believed that entrepreneurs are born with the necessary skills; however, it is not entirely true, anyone can learn how to become one by undergoing an entrepreneurship development process.

What is Entrepreneurship Development?

Entrepreneurship development is the process of enhancing the entrepreneurial knowledge and skills via structured training programmes. It deals with the study of entrepreneurial behaviour, dynamics of business, and its development and expansion. The objectives of entrepreneurship development programmes are to increase the knowledge and skill of existing entrepreneurs and encourage others to become one. Ultimately, it helps in increasing the number of such individuals in an economy.

Entrepreneur development focuses on training individuals who are interested in commencing their venture or expanding their existing one. Furthermore, it concentrates more on encouraging innovation and evaluating the growth potential of an enterprise. This development process helps new firms to perform better and achieve their goals and expand their businesses. As a result, the economy of a nation also improves. Moreover, it enables entrepreneurs to develop and manage their business better along with the financial insecurities associated with it.  

An increase in the rate of development of entrepreneurship ventures alleviates the problem of unemployment in an economy. Additionally, it decreases the issue of stagnation and increases competition in the market. A process like this aims to develop the competence of an entrepreneur and his/her venture. Therefore, it enhances entrepreneurial objectives and encourages more people to become entrepreneurs.

Objectives of Entrepreneurship Development Programme

The objective of Entrepreneurship Development programme are listed down here - 

To Develop Entrepreneurial qualities and habits among the upcoming youth via the help of proper training and expert counselling.

To search and identify the best existing and upcoming business ideas and opportunities.

Motivating and guiding various individuals for launching their own new businesses and startups. Thus, becoming a contributor to the economy.

To reach risk mitigation to the youth of the nation.

Provide and conduct various programmes to spread the idea of Entrepreneurship in rural areas and villages.

To generate employment and self-employment with the help of Entrepreneurship and the growth of small scale businesses.

To inform about various schemes launched by various Government (central, state or regional governmental bodies) and also about various taxes put on enterprises. 

Every entrepreneurship development process comprises several steps. Here are the vital steps of building an effective development programme to help individuals –

Learn about the Business Idea

It is the starting process of entrepreneurship. Once an individual has generated the idea for a business, he/she will subsequently need to evaluate and identify its business opportunities. Hence, he/she has to learn more about the business and its consumers.

However, it is not an easy task. To find relevant information, an entrepreneur has to talk to his/her employees, the marketing team, product designing team, etc. Apart from these, consumer surveys often unearth various new pieces of information. They can help individuals to learn more about their business ideas.

Thorough Evaluation

Before moving forward, entrepreneurs need to evaluate a business idea or opportunity thoroughly. It is considered one of the most crucial parts of the Entrepreneurship Development Process. An entrepreneur can do it by himself/herself by considering the following points –

Whether an opportunity or idea is worth investing in or not.

What are the requirements for this product?

Is it feasible or not based on its cost?

What are the competitive advantages?

The capital that is required to put in the business, before the launch of that certain product or service. And where to get this capital.

Associated risks that are inherent with the product or service?. Such risks can be of many types like Technical risks, Economic risks, Social and Environmental Risks.

Whether it coincides with the company’s goal or not

Additionally, an entrepreneur must evaluate his/her skills and if he/she can manage such it.

Business Plan 

After identifying the opportunity and gathering information about it, an entrepreneur needs to create a comprehensive business plan to make most of this opportunity. It is one of the vital stages of the entrepreneurship development process. Such a plan acts as the base of a venture as well as the benchmark. It shows whether the business is on track or not.

Creating a business plan requires time and effort, and an entrepreneur must be dedicated to it. The significant pieces of a business plan, i.e. its vision, goal, objectives, capital and the product itself must be figured out in this process.

Finding Resources

Once the entire business plan is ready, the next step of entrepreneurship development and management is to locate sources of finance and human resources. Here entrepreneurs find investors for his/her venture. Moreover, recruits individuals as per their skill and abilities to carry out different business activities. 

Especially the marketing team, as it is the most important aspect for the growth of businesses nowadays. Special care is also needed to find the HR person, who will manage the entire human resource of the company.

Framing out the Management Structure

It is a crucial concept of entrepreneurship development. After raising funds and hiring the required employees, this is the next process on the list. An entrepreneur must frame out the hierarchy in the organisation. Thus, it becomes easier to resolve any problem through this chain of command.

Plan the Future

Once a business is up and running smoothly, an entrepreneur has to consider its future. In this final point of entrepreneur development programme notes, businesspersons decide the next step of the business. Based on actual data generated by the company and pitting it against the projected one gives a clear idea of how the business is performing. If everything is positive and on track, then an entrepreneur decides to invest in expansion.

In a nutshell, an entrepreneurship development process is about assisting individuals in improving their skill via training. Thus, it aids such individuals to make better decisions in their existing ventures or encourages them to start a new one. Moreover, it is an important topic for commerce students. Additionally, students who want to know more on other topics of this subject can visit the official website of Vedantu.

Entrepreneurship Development and Start up India

India has the world's highest number of start-ups and has had great success attracting large amounts of foreign direct investment (FDI). Furthermore, the government is actively removing administrative barriers and bottlenecks to promote entrepreneurship growth. To support the development of an entrepreneurial culture, the subject has been integrated into the curriculum at both the undergraduate and postgraduate levels across disciplines.

Indian Entrepreneurship Development Challenges

Capital: India has a very low per capita income compared to other countries. The allocation of resources to futile endeavours is the primary cause of this. Youth have limited access to technical and vocational education institutions. Students' broad education in school is insufficient to support entrepreneurs.

Motivation Centres: There aren't many training facilities, and the ones that exist are mostly in cities.

Low Mood: Typically, children are advised to pursue lucrative careers to secure their futures. As a result, there is little desire to start a business.

Competition: Major corporations dominate both domestic and international markets. This presents a significant challenge for business owners. The government incentivises public firms to operate in the public sector.

Corruption: Bureaucracy, delays, and incompetent government agencies stifle the nation's entrepreneurship.

Backward Thinking: Uncertainty about innovative ideas has led to hesitancy and the rise of anti-progressive thinking.

Case Study - Entrepreneurship Development and Start up India

The Adani Group, founded by Gautam Adani, is used as a case study to demonstrate the concept of entrepreneurship development. Gautam Adani moved to Mumbai from his hometown of Ahmedabad at a young age. When he was 18, he left his family and travelled to Mumbai. He began working as a diamond sorter for Mahindra Brothers. After two years of working for Mahindra Brothers and gaining sufficient knowledge, he established his own diamond brokerage firm. He made a sizable profit of roughly ten lakh rupees in his first year of business, which was a sizable sum in the 1980s.

In the latter half of the 1980s, he founded Adani Enterprises. He specialised in agricultural and energy-related products. Adani Group and Cargill, an American multinational corporation, have joined forces to export salt from Gujarat. As time passed, the company grew, and the partnership ended. Adani Group now owns nearly 5,000 acres of land as a result of this arrangement. The policy regulations enacted in 1991 allowed for several improvements, which boosted and supported Indian businesses and helped the Adani Group generate enormous profits.

A choice between a seaport in Gujarat that must be lent to private businesses. A decision was made in 1993. However, the Adani Group later received this deal. The group worked hard to develop the port to the point where it can now handle approximately 8 crore tonnes of cargo annually and is considered India's largest private-sector port. Adani imported coal as a result of projections it made about future energy demand. As a result, Adani decided to enter the energy and electricity industries.

Adani Power Ltd. was established along these lines. And as of now, it is one of the largest privately owned thermal power companies, with a capacity of approximately 4620 MW. According to the most recent data, Gautam Adani is the 11th richest person in India, with assets worth $40 billion USD and a workforce of over 60,500 people.

Running a business necessitates a great deal of dedication, careful planning, and attention to detail. Your ideas can be properly coordinated to ensure the company's success. There are various types of businesses. Some are known as start-ups, while others are known as entrepreneurs. It is critical to understand that not all entrepreneurship is startup-related, and there are several key differences between the two. This distinction must be well understood for a business to be successful.

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FAQs on Entrepreneurship Development Process

1. What is Entrepreneurship Development?

Entrepreneurship development is a process that enables individuals to learn more about building a business from scratch. Additionally, it aids the existing entrepreneurs to evaluate their skill and knowledge and pick up on new techniques and ideas. It is a comprehensive training programme. It covers aspects like entrepreneurial manners, dynamics of a business, and its development and expansion. If a student wants to Pursue Entrepreneurship Development as a career, he/she will have to work with new entrepreneurs or newly started small firms to facilitate the development of skills among them and also to assist in the issues they are facing as a business.

2. What is the need for an Entrepreneurship Development Programme?

The concept and need of entrepreneurship development programmes are important in every economy. It aids existing entrepreneurs and aspiring ones to develop and manage a successful venture. A comprehensive training program such as this covers various aspects of building and maintaining a business. The need for such programmes is to encourage entrepreneurship in an economy. Doing so reduces the stagnation in the market and increases competition. Furthermore, it generates employment in an economy. So, one can say that Entrepreneurship Development Programmes are needed in an economy to supply skilled entrepreneurs.

3. What are the Stages of an Entrepreneurship Development Programme?

Entrepreneurship Development Programme is designed in order to bring skilful and knowledgeable entrepreneurs to the economy, by teaching the budding ventures how to build and manage an enterprise. Various such programs consist of many different levels or stages of their programs. But majorly all of them can be divided into these six steps. These six stages of an entrepreneurship development programme are, learning about the business idea, its evaluation, forming a plan, accumulating resources, putting a proper structure in place, and planning the future.

4. Which skills or habits will be helpful to grow for an entrepreneur in an Entrepreneurship Development Programme?

It will help full for an entrepreneur to grow these certain things or habits with the help of an Entrepreneurship Development Programme - 

Consistently dedicating around 2 hours to learning about the projects and the field they are working in. They can learn from the industry leaders, big companies, other Entrepreneurs and from customers feedback. History teaches us a lot, learning from past experience or projects is a must.

Digital marketing is a necessity nowadays, one should learn to build a perfect marketing team.

Trying to find market gaps, market gaps refers to the untapped areas of the market, which can provide massive returns and expansion.

Meet with other successful entrepreneurs and industry leaders, to share and discuss new ideas and also to get a deeper knowledge of the market.

Arranging Skills development training programs for the employees or team members.

Living a healthy life and developing various healthy habits.

5. Give details about the Thorough Opportunity Evaluation step of the Entrepreneurship Development Process or in an Entrepreneurship Development programme.

The entrepreneurship development process enables an individual or a new entrepreneur to learn more about building a business from scratch. And a critical element of this entrepreneurial process is to identify various opportunities, screen these opportunities and evaluate them. A well-executed Thorough Opportunity Evaluation can easily tell if an idea or an opportunity has the potential to give the demanded returns that can justify the investment needed to put in it and the risk an individual has to take. Many people in this field had given some questions to ask to check whether the opportunity was worth it. Some of these questions are - 

Questions regarding the product or service : How easy or difficult is it to produce that specific product and what will it cost

How much capital is required before one can start selling the service or product?

Market Demand: If the product is in market demand, if yes, where does this demand lie? is the product or service generic or a niche? 

Understand the various risks involved with the Business ideas with respect to the returns it can provide.

Entrepreneurship Development Programme

entrepreneurship development program need and objectives

Entrepreneurship development programme is a programme meant to develop entrepreneurial abilities among the people.

The concept of entrepreneurship development programme involves equipping a person with the required skills and knowledge needed for starting and running the enterprise.

EDP is an effective way to develop entrepreneurs which can help in accelerating the pace of socio-economic development, balanced regional growth, and exploitation of locally available resources.

It takes care of all the constraints and therefore it is proved to be one of the most effective tools for developing new entrepreneurs.

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Learn about:-

1. Introduction to EDP 2. Meaning of EDP 3. Evolution 4. Objectives 5. Features 6. Course Contents and Curriculum 7. Need

8. Role 9. Rationale 10. Evaluation 11. Factors Influencing 12. Phases. 13. Models 14. Process 15. Relevance

16. Limitations 17. Institutions Involved in Providing EDPs in India 18. Achievement 19. Problems 20. Lessons from EDP Experience and Strategies for Future.

Entrepreneurship Development Programme: Meaning, Objectives, Features, Role, Evaluation, Factors and Models

Edp – introduction to entrepreneurship development programme.

Entrepreneurship Development Programme is primarily meant for developing those first generation entrepreneurs who on their own cannot become successful entrepreneurs. It covers three major variables- location, target group and enterprise. Any of these can become the focus or starting point for initiating and implementing an EDP.

Entrepreneurship development programme is a programme meant to develop entrepreneurial abilities among the people. The concept of entrepreneurship development programme involves equipping a person with the required skills and knowledge needed for starting and running the enterprise.

EDP is an effective way to develop entrepreneurs which can help in accelerating the pace of socio-economic development, balanced regional growth, and exploitation of locally available resources. It takes care of all the constraints and therefore it is proved to be one of the most effective tools for developing new entrepreneurs.

The remaining two then will follow by making proper synthesis with the first. For example, if the objective is to promote women entrepreneurs, suitable location and proper entrepreneurial activities must match or if the objective, is to develop North East region. Methodology for selection of the prospective entrepreneurs as well as support services after the training have a significant impact on the success -of the entrepreneur development programme.

These programmes broadly envisage a three tiered approach, developing achievement motivation and sharpening of entrepreneurial traits and behaviour, project planning and development and guidance on industrial opportunities, incentives and facilities and rules and regulations, and developing managerial and operational capabilities. Various techniques and approaches have been developed and adopted to achieve these objectives keeping in view the target groups and or to target areas.

Past experience has shown that industrial promotion by provision of facilities, technical assistance, management training, consultancy, industrial information and other services alone are not sufficient to develop entrepreneur. Hence the EDP package was launched over the years; the EDPs have become a vital strategy for harnessing the vast untapped human skills, to channelize them into accelerating industrialisation in general and growth of the small scale sector in particular.

In line with the national programme for the promotion and development of small and medium industries in the countryside, the Industrial Service Institute (ISI) under the Department of Industrial Promotion (DIP) launched the EDP to give substance to the government’s policies of stimulation of economic growth, dispersing industries to rural areas and promoting the processing of local raw materials. The EDP was considered a part of the industrial development policy which was articulated in the Five year national economic and social development plan.

Entrepreneurship Development Programme  – Meaning

Entrepreneurial Development Programme (EDP) may be defined as a programme designed to help a person in strengthening his entrepreneurial motives and in acquiring skills and capabilities necessary for playing his entrepreneurial role effectively and efficiently. It is therefore necessary to promote his understanding of motives, motivation pattern, impact on behaviour and entrepreneurial values.

A programme that seeks to do this is called an EDP This point is to be stressed here because there are several programmes which aim at providing information or managerial inputs or focus on preparation of a project. Of course a new entrepreneur requires all these inputs but programme which does not touch entrepreneurial motivation and behaviour cannot be regarded as an EDP.

Entrepreneurship is vital for an economy. The spirit of entrepreneurship can be generated within an economy by infusing the urge, motivation and providing training to the aspiring entrepreneurs or the people with the potential. Entrepreneurial development programme (EDP) is a way to achieve the aforesaid goal.

EDPs are planned programmes developed to identify, inculcate, cultivate, develop, and polish the capabilities and skills as the prerequisites of a person to become an entrepreneur. The EDPs focus on training, education, reorientation and creation of conducive and healthy environment for the growth of entrepreneurship.

EDP can be conceived as a tool for enhancing human resource. It is a programme meant to develop entrepreneurial abilities among the people. The EDP is basically designed to instill and infuse entrepreneurial motive and spirit among people and cultivating and nurturing the skills and capabilities necessary for playing successfully his/her role as an entrepreneur. An EDP involves inculcation, development, and polishing of entrepreneurial skills, knowledge in the participants which are required by them to establish and successfully run their enterprises.

An entrepreneur is a creator or a designer who design new ideas and business processes according to the market requirements and his/her own passion. Entrepreneurship is the art of starting a business, basically a startup company offering creative product, process or service. We can say that it is an activity full of creativity.

Entrepreneurship development is the process of improving the skills and knowledge of entrepreneurs through various training and classroom programs. Entrepreneurship development is concerned with the study of entrepreneurial behaviour, the dynamics of business set-up, development and expansion of the enterprise.

The whole point of entrepreneurship development is to increase the number of entrepreneurs. This accelerates employment generation and economic development. Entrepreneurship is promoted to help lessen the unemployment problem, to overcome the problem of stagnation and to increase the competitiveness and growth of business and industries.

Entrepreneurship development concentrates more on growth potential and innovation. Entrepreneurship Development has gaining increasing significance in developing an economy. It is an organised and systematic development. It is a tool of industrialization and a solution to unemployment problem for any country.

Entrepreneurship Development Programme – Evolution of EDP

Earlier, Government and other agencies were responsible for supporting potential entrepreneurs to set up their units specially in backward and tribal areas. In this context, Small Industries Service Institute and SIET Institute in the sixties tried to fill the information gap which existed and were relevant for small entrepreneurs.

“The entrepreneurs required a lot of information for setting up a business and in that context the contribution of these programmes was essentially in the area of disseminating knowledge on financial, technical and managerial aspects. To that extent, these programmes were not basically programmes towards entrepreneurship development, but were in the nature of supportive programmes for the existing and the new entrepreneurs.”

However, it was visualised that creation of industrial development corporations and other external facilities has failed to develop, an effective and sufficient condition for entrepreneurship development.

There must be an effective framework to develop the qualities of the individual who respond to the external opportunities i.e. availability of funds, financial incentives etc. Similarly, efforts should also be made so that social and organisational factors help potential entrepreneurs to perceive the opportunities and learn to respond to them.

At present, existing entrepreneurs basically emerged out of the natural growth of entrepreneurial talent of certain communities like Marwaris, Gujaratis, Parsi’s and South Indian Brahmins. This type of entrepreneurs is a highly motivated group but problem is that they be often interested in quick profits or high profits, opportunities which are normally concentrated in the already well-developed areas.

So, it would be more important to have a broad-based entrepreneurial source to command the tempo of economic growth. In this context, entrepreneurial training can make a lot of difference in performance of the entrepreneurs. By motivating non-entrepreneurial participants to start a viable enterprise, we can easily develop a valid substitute for natural institutions like business families or existing entrepreneurs.

Entrepreneurship Development Programme  – Objectives

Entrepreneurship Development Programme (EDP) in India has many objectives.

The expert group constituted by the NIESBUD accepted that it must be able to help selected entrepreneurs to:

(1) Develop and strengthen their entrepreneurial quality/motivation;

(2) Analyse environment related to small industry and small business;

(3) Select project/product;

(4) Formulate projects;

(5) Understand the process and procedure of setting up of small enterprise;

(6) Know and influence the source of help/support needed for launching the enterprise;

(7) Acquire the basic management skills;

(8) Know the pros and cons of being an entrepreneur; and

(9) Acquaint and appreciate the needed social responsibility/entrepreneurial disciplines.

Further some of the other important objectives of entrepreneurial training are:

(i) To let the entrepreneur set or reset the objectives of his business and work individually and along with his group for their realisation.

(ii) To prepare him for accepting totally unforeseen risks of business after such training.

(iii) To enable him to take strategic decisions

(iv) To enable him to build an integrated team to fulfill the demands of tomorrow.

(v) To communicate fast, clearly and effectively

(vi) To develop a broad vision to see the business as a whole and to integrate his function with it.

(vii) To enable him to relate his product and industry to the total environment, to find what is significant in it and to take it into account in his decisions and actions.

(viii) To enable him to cope with and coordinate all relevant paper work, most of which is statutorily obligatory.

(ix) To make him accept industrial democracy, that is, accepting workers as partners in enterprise; and

(x) To strengthen his integrity, honesty, and compliance with law, the key to success in the long run.

Entrepreneurship Development Programme – Features

The basic features of Entrepreneurship Development Programme have gone through several modifications overtime as:

(a) Identification and careful selection of entrepreneurs for training;

(b) Developing the entrepreneurial capabilities of the trainee;

(c) Equipping the trainee with the basic managerial understanding and strategies;

(d) Ensuring a viable industrial project for each potential entrepreneur;

(e) Helping him to secure the necessary financial, infrastructural and related assistance; and

(f) Training cost is highly subsidised and only token fee is charged. A deposit is, however, taken to ensure commitment of participants.

Entrepreneurship Development Programme – Course Contents and Curriculum of EDPs

The course contents of an EDP should be formulated as per the objectives of the EDPs.

It should consist of the following:

1. General Approach to Entrepreneurship:

The participants should be given exposure about the conceptual framework of entrepreneurship role, expectation, Entrepreneurial environment etc. Innovative behaviour related issues should be focused to enlighten the entrepreneurs about their future challenges and prospects. Besides, development agencies should try to design appropriate strategies enabling the potential entrepreneur to tackle different risk inherent in an innovation activity.

These risks are as follows:

(i) Technical risks – the risk of not knowing enough about the technical processes, materials etc.

(ii) Economic Risks – the risk of market fluctuations and changes in relation to raw materials etc.

(iii) Social Risks – the risk inherent in the development of new relationship.

(iv) Environmental Risks – risk which result from environmental changes in the manager’s work as an outcome of the new activity.

Moreover, prospective entrepreneurs should be given a detailed information with regard to facilities generally provided by the government and other agencies involved in promotion of entrepreneurship.

2. Motivational Training:

Motivational training inputs are meant for developing the motivation of potential entrepreneurs and their enterprise building skills. Besides, motivational inputs also include psychological games, tests, goal setting exercises, role play etc.

The motivational inputs will be aimed at increasing the participants, understanding of the entrepreneurial personality and entrepreneurial behaviour and bring about through self-study, changes in self-concept, value, skills thereby leading to positive entrepreneurial behaviour.

The major motivational inputs may be given in the beginning of the training programme on full time basis though the learning effected through them will be reinforced and used throughout the training programme. The understanding of the entrepreneurial personality and behaviour will be supplemented through interface with one or two successful as well as not so successful entrepreneurs.

3. Developing Management Skills:

Prospective entrepreneurs should be given exposure in different types of management problems. It would sharpen their management skills. The management problems take different forms and the management patterns are peculiar to the situation. So, training for exposing managerial skills will be arranged in keeping the situational requirements. However, managerial aspects should include production planning, labour laws, cost analysis, financial accounting, selling arrangements, taxation laws etc.

4. Training for Project Management:

Project inputs are required to help the potential entrepreneurs to develop their project ideas into bankable projects. They should be given acquaintance with the industrial opportunities in the area and also necessary guidance on product selection. Necessary knowledge about project feasibility, viability and implementation should also be given to the potential entrepreneurs.

Under project preparation, technical feasibility includes selection of technology, availability of raw materials, selection of location and site, availability of plant and machinery, infrastructure facilities, roads, transport, power, manpower/personnel requirement.

Similarly, market analysis, level of competition, capital cost, working capital requirement, estimated cost of production, projected sales volume, profitability estimates, expected rate of return, projected cash flows and break even analysis are different aspects that have to be incorporated in assessing the commercial viability of the project.

Sufficient exposure is necessary with regard to financing of the project. Financing arrangement generally includes sources of financing, promoter’s contribution, level of institutional financing, seed capital, investment subsidy etc. Prospective entrepreneurs should be instructed about the importance of timely implementation of project. They should be given proper training about scheduling of various activities, provision for effective supervision and need for avoiding delay and consequent cost escalation.

5. Structural Arrangement:

Training inputs also aim at familiarising the participants about the proposed structural arrangement for the business or industrial unit. They should be given adequate familiarisation about government policy regarding development of industries, especially with regard to small scale industries, registration and licensing procedures, forms of organisation like proprietary, partnership, private company and Joint Stock Company, institutional setup etc.

6. Support System:

In most of the cases, participants are generally first generation entrepreneurs and they do not know about the government and institutional support system. Support system may also be used as motivational inputs to encourage the participants about their future prospects. They should be familiarised with the incentives/concessions available, tax-incentives, tax holiday, backward/zero industries districts concessions, soft loan scheme, special schemes for technicians etc.

This should be followed by acquainting them with procedure for approaching government departments and agencies, applying for and obtaining these concessions from them.

7. Factory Visits/In-Plant Training:

Practical exposure is also necessary. Depending upon their products the potential entrepreneurs may feel the need to gain more knowledge about the production process etc. by visiting some of the similar units in production. For this purpose, factory visits may have to be arranged.

Similarly, entrepreneurs who select relatively sophisticated products will be expected to have a good idea of the product and the process facilities should be arranged for in-plant training or prototype development on exceptional basis.

Entrepreneurship Development Programme – Need

Entrepreneurship Development Programme is very much essential for the first generation entrepreneurs because proper training and guidance will help them to get success. It is promoted to help alleviate the unemployment problem, to overcome the problem of stagnation and to increase the competitiveness and growth of business and industries.

The thrust of entrepreneurship development programme is to motivate people to accept entrepreneurship as a career. Training and successful entrepreneurs becomes ideal for other.

Following are the various needs for EDPs:

(i) Eliminates Poverty and Unemployment:

One of the important problems of any developing country is unemployment. The problem of poverty is severe and of long­standing duration in India, and is at its most acute in rural areas. In recent years central and state governments have started a number of schemes aimed at reducing rural poverty but they cannot solve the problem completely because of their shortcomings and inadequacies.

India needs to return to the syndrome of high growth rate quickly and sustain it for at least eight years to eradicate poverty, illiteracy, unemployment and backwardness. Entrepreneurship development programmes help people towards self-employment and provide entrepreneurship as a career.

Government of India has introduced various programmes to eliminate the poverty and solve the unemployment problem through National Rural Employment Programme (NREP), Integrated Rural Development Programme (IRDP) etc.

(ii) Balanced Regional Development and Growth:

One of the objectives of setting up of public enterprises is to promote balanced regional development. It can be possible through the expansion of the employment opportunities in backward regions.

The pace of economic development of different States and Regions in the country has not been uniform over the years owing to historic reasons and a number of other factors. Industrialisation plays an important role in correcting the regional imbalances and accelerating the industrial growth.

In order to remove regional inequalities and encourage balanced industrial growth of different states/regions, subsidies to industries set up in backward districts. Successful EDPs help in faster industrialisation and reduce the concentration of economic power. It is because the small scale industries can be set up in remote areas with little financial resources which help in achieving balanced regional development.

(iii) Prevents Industrial Slums:

The Indian economy, which has over the last six decades passed through various phases of growth, is now all set to enter an altogether different orbit marked by a high rate of expansion, combined with ‘inclusive growth.’ Slums are an outcome of imbalanced urban growth resulting from over-concentration of economic activities. As per the census 2001, 42.6 million of India’s population lives in slums.

This constitutes about 15% of the total urban population of the country. The urban cities are highly congested and leading to industrial slums. Decentralisation of industries is very much require for locating the industries. EDPs help in removal of industrial slums as the entrepreneurs are provided with various schemes, incentives, subsidies and infrastructural facilities to set up their own enterprises in all the regions.

(iv) Harnessing Locally Available Resources:

Human beings have inhabited the earth; they have used the earth’s resources and have continuously transformed it. Each landscape is the upshot not only of natural processes but of the actions throughout history of human beings whose responsibility is to organize, protect and manage the environment they share.

People use many of the earth’s natural resources. All of the products we use have a natural resource base. Minerals, forest products, water, and soil are just a few of the natural resources humans use to produce energy and make things people use.

Since abundant resources are available locally, proper use of these resources will help to carve out a healthy base for sound economic and rapid industrialisation. The EDPs can help in harnessing these resources by training and educating the entrepreneurs.

(v) Defuses Social Tension:

Self-employment and entrepreneurship become increasingly important in our modern economies. Many people have an ambition to “run their own business”, and these days more people than ever are starting up their own businesses. With redundancies on the increase in the recession, many people will take the chance of “working for themselves” and will relish the opportunity of being their own boss and not being answerable to anybody else.

It is, of course, admirable, but they could be digging a hole for themselves. Every young person feels frustrated if he does not get employment after completing his education. The talent of the youth must be diverted towards self-employment careers to help the country in defusing social tension and unrest among youth is possible by EDPs.

(vi) Capital Formation:

It is one of the most critical activities in getting a business started. Business creation has moved a lot from the days of Marco Polo and Schumpeter. The biggest hurdle the entrepreneurs face is in raising the initial capital needed for the new venture.

Getting equity from family and friends has many advantages over other types of financing. Entrepreneurship development programmes helps an individual to raise capital to start a business or to grow an existing business.

(vii) Improvement in per Capita Income:

Entrepreneurs play a vital role in achieving a higher rate of economic growth. Entrepreneurs are able to produce goods at lower cost and supply quality goods at lower price to the community according to their requirements. When the price of the commodities decreases, consumer gets the power to buy more goods for their satisfaction. All this are possible through entrepreneurship development programmes.

(viii) Facilitating Overall Development:

Entrepreneurship development programmes are great and successful in India. If everything goes in proper channel with proper judgment, it will flourish to fill up the sky. Entrepreneurship development programmes inspires innovations, creative ideas and provide new solution to the problems.

Entrepreneurship Development Programme – Role of EDPs

EDPs comprise a number of programmes which provide the prospective entrepreneurs with information regarding the scope of new business, the process of starting new ventures, the mode of preparation of project reports, and the sources of finance. They aim at developing human resources and inducing motivation and competence in the prospective entrepreneurs. They cause proper utilization of local resources, more employment generation, promotion of small enterprises and the overall development of an area.

1. Capital Formation – An entrepreneur mobilises idle savings of the public and puts them to productive use. Thus, he helps in capital formation. This is very essential for the industrial and economic development of a country.

2. Employment Opportunities – EDPs enable prospective entrepreneurs in the setting up of their own enterprises. This enables them to get self-employment. By setting up more and more enterprises by the entrepreneurs, both on small and large scale, many job opportunities are created for others.

3. Local Resources – The proper use of local resources promote the progress and development of the area at lower cost. EDPs help in the proper use of local resources by providing guidance, assistance, education and training to the prospective entrepreneurs.

4. Balanced Regional Development – EDPs help in accelerating the pace of industrialisation in remote and backward areas. Thus, they reduce the concentration of economic power in the hands of a few. This results in the development of backward areas and balanced regional development.

5. Improved Per Capita Income – EDPs promote the setting up of more enterprises. This will help in the generation of more employment and income.

6. Improved Standard of Living – Entrepreneurs now make efficient use of the resources and produce better quality products at lower costs. The consumers get better quality products at lower prices. This leads to improved standard of living of the society.

7. Economic Independence – Entrepreneurs can produce wide variety of better quality goods and services at competitive prices. They enable a country to earn foreign exchange by selling these products in the foreign market. This helps in promoting economic independence of the country.

8. Preventing Industrial Slums – EDPs can help in preventing spread of industrial slums. They can support entrepreneurs for setting up their enterprises in industrially backward areas. This will help in reducing pollution.

9. Social Tension – EDPs can help the unemployed youth for setting up enterprises by providing proper guidance, training and assistance. This results in self-employment and prevention of social tension and unrest.

10. Overall Development – EDPs promote setting up of various types of enterprises which mutually require the outputs of other. This leads to the overall development of an area.

EDP – Rationale of EDP

(i) EDP is meant for developing those first generation entrepreneurs who on their own cannot become successful owners of enterprises.

(ii) The effective entrepreneurial class is necessary to speed up the process of activating the factors of production to ensure higher rate of economic growth.

(iii) EDP ensures potential entrepreneurs of backward and tribal areas to set up their enterprises with the help of government and institutional support system.

(iv) EDP helps in dispersal of economic activities in different regions by providing training and other support to local people.

(v) EDP develops the persons who are interested to work as job providers by establishing enterprises not to those who are job seekers. Thus, it helps in creation of employment opportunities.

(vi) EDP improves the standard of living of the weaker sections of society and involvement of all sections in the process of economic growth.

(vii) EDP develops motivation and competence necessary for successful launching, management and growth of the enterprise.

Thus, EDP is necessary to motivate the potential entrepreneurs to convert their dreams into action. However, it is not expected to create any magical result. It is a continuous process of training and motivating them to set up enterprises in a big way.

General belief about the EDP is that individual can be developed and their perception can be changed. They may be motivated to convert their dreams/ideas into action through an effective EDP. However, it is notable that EDP is not merely a training programme. It also develops social and organisational framework which enable the potential entrepreneurs to perceive opportunities and learn to respond to them, in this way, EDP is a process of –

(i) Enhancing the motivation, knowledge and skills of the potential entrepreneurs,

(ii) Arousing and reforming the entrepreneurial behaviour in their day to day activities,

(iii) Assisting them in developing their own ventures or enterprise as a sequel to entrepreneurial action.

EDP – Evaluation of Entrepreneurial Development Programmes

Evaluation of EDPs begins with an assessment of philosophy or the central objective of the programme. The agency conducting the programme must be clear about the purpose underlying entrepreneurial development.

The objective may be to increase the production, to help the entrepreneur for selection of the product or project and for formulation of the project, to uplift certain people, to appreciate the needed social responsibility etc. Evaluation of EDPs means to check-

1. How these programmes do their work properly or not,

2. How many problems are faced by these programmes at the time of implementation?

1. How these programme do their work properly or not:

These programmes do their work properly or not, we can measure with the help of following aspects:

i. Selection strategy and the Procedure – The success of an EDP depend largely on proper selection of trainees. Evaluation of selection strategy and the procedure is very necessary. The Behavioral Science Centre (India), has been rating the selection of potential entrepreneurs, positive self-concept, initiative, independence, problem solving, hope of success, searching environment and time bound planning.

ii. To measure the financial result of Entrepreneur – In order to judge the financial health of units, return on capital employed, net profit over sales, net profit over net-worth and other ratios were used.

iii. To check the knowledge and ability of the Entrepreneur – For evaluation of the EDP, to check or measure the knowledge and ability of the entrepreneur. It refers to the education, training and experience of the entrepreneur.

iv. To consider the Socio-cultural background of Entrepreneur – It implies the environment in which the entrepreneur was born and brought up. It considers the values and attitudes of the entrepreneur.

v. To consider the Environmental Variables – For evaluation of these programmes, should consider the environmental variables. Environmental variables include Government policies, Market conditions, Availability of technology and Labour situation.

2. Problems faced by entrepreneur development programmes:

EDPs suffer on many counts.

The problems are the part of those who are involved in process such as:

i. The trainers

ii. The trainees

iii. The Entrepreneur Programme Organization

iv. The supporting organization

v. The State Government.

There are various problems faced at the time of organizing these programmes.

These problems are explained as follower:

1. Lack of National Level Policy:

There is no suitable national level policy in India for entrepreneurship development. The Government did not formulates and enforce a policy for the promotion of entrepreneurship. Because of that the entrepreneurship development programmes faced many problems at the time of their organization.

2. Difficulty in Pre-Training Phase:

It is also stated that there is ill-planned training methodology inconsistency during that phase, its content sequence, theme and the focus of the programme is not clear. There are large number of problems in that phase such as identification of business opportunities, finding and locating target group, selection of trainee and trainers etc.

3. Over Estimation of Trainees:

There are over estimation of trainees by assuming that the trainees have aptitude for self-employment and training will motivate and enable the trainees in the successful setting up of their enterprise.

4. Time Period of EDPs:

The duration period of these EDPs varies between 4 to 6 months, which is too short a period to instill basic managerial skills in the entrepreneurs. In that short period the trainees cannot develop their skills those are important for a successful entrepreneurs.

5. Lack of Infrastructure Facility:

These programmes are conducted in the rural and backward areas. In that area there are many problems regarding class rooms, guest speaker etc., so that we can say that the EDPs faced many problems such as – no proper infrastructure facility.

6. Wrong Selection Procedure:

Because of competition, the institutions not follow uniform method for the selection of trainees or prospective entrepreneurs. Some of institutions are still debating whether to have a proper identification and selection of entrepreneurs for preparing successful entrepreneurs.

7. Absence of Competent Management or Faculty:

Experience revealed that entrepreneurial failures are mostly due to incompetence faculty and management. There is a problem of non­-availability of competent teachers and even they are available, they are not prepared to take classes in the rural and backward areas.

8. Non-Availability of Inputs:

Non-availability of various inputs i.e., raw materials, power etc., with poor follow up by the primary monetary institutions resulted failing in the entrepreneurship development programmes.

9. Lack of Standardization:

The course content of training are not proper standardized – It is also another problem that there are not standard even in terms of a broad module being adopted by interventions.

10. Other Problems:

Those involved in and concerned with the selection and follow up activities have either limited manpower support or a narrow linkage with other support agencies. Training institutions do not have much concern for the objectives identification and selection of entrepreneurs for preparing successful entrepreneurs.

The problem is that there is a low institutional commitment for local support to the entrepreneurs. There is also a very low level of involvement in the marketing of the products of the units. Most of the existing support organizations meant for maintenance operation are not for innovative functions.

There is also an element of cynicism. A re-orientation in the attitude of supporting organization is called forth.

EDP – 3 Important Factors Influencing: Economic, Social and Psychological Factors

There are four categories of factors that impact entrepreneurship. These include economic development, culture, technological development and education. A strong and consistent growth of entrepreneurs may be observed in areas having these factors.

Emerging entrepreneurs may observe both positive and negative impact of these conditions. Positive influences constitute facilitative and conducive conditions for emergence of entrepreneurship, whereas negative influences create inhibiting milieu to the emergence of entrepreneurship.

Factor # 1. Economic :

The most direct and immediate influence on entrepreneurship is witnessed through that of the economic environment in which it lives. This has a basis on the fact that a lot of people turn to become entrepreneurs in absence of suitable jobs or opportunities for them.

The economic factors affecting entrepreneurial growth are:

(i) Capital:

Availability of capital in adequate amount plays a significant role in setting up an enterprise. Increased capital investments in viable projects lead to increased profits which further accelerate the process of capital formation. Easy availability of funds from financial markets also promotes entrepreneurship.

It is ready capital at an entrepreneurs’ disposal which helps him to mobilize the required resources to undertake business activity. Capital is therefore, regarded as lubricant to the process of production. Countries like France and Russia have witnessed slower or negligible industrial growth due to non-availability of capital and thereby hampered growth of entrepreneurial process.

(ii) Labour:

Entrepreneurship is also affected by the availability of good quality human capital or the right type of workers. It is the quality of workers which is more important than that of quantity to affect the emergence and growth of entrepreneurship. Most of the developing or less-developed countries are labour abundant due to dense and even increasing population. But enterprises can develop only if they get mobile and flexible work force.

Hence, another problem area in case of human capital is labour immobility which can be tackled by provision of developed infrastructural facilities including efficient transportation. The potential advantages of low cost labour availability cannot be encashed due to their immobility. The considerations of economic and emotional security inhibit labour mobility. Hence, entrepreneurs have to face serious challenges to secure sufficient labour.

(iii) Raw Materials:

The necessity of raw materials hardly needs any emphasis to establish any industrial activity and its influence in the emergence of entrepreneurship. It is impossible to set up a unit or seek entrepreneurial development in absence of raw material. Raw material is an indispensable factor of production and its absence hinders the smooth functioning of industry and hence, negatively affect emergence of entrepreneurship.

In fact, the supply of raw materials is not influenced by themselves but becomes influential depending upon other opportunity conditions. The more favourable these conditions are, the more likely is the raw material to have its influence on entrepreneurial emergence.

(iv) Market:

Entrepreneurial growth and development are highly dependent on market conditions and marketing strategies. Entrepreneurs, in modern competitive world build upon their strong knowledge base about the market and various marketing techniques. It is the potential of the market that substantially determine the probable returns from entrepreneurial activities.

The act of production becomes meaningless without its consumption (i.e., marketing). Entrepreneurship is affected by both the size and composition of market. A product market set up in monopoly frame is more attractive to entrepreneurship process than that of competitive one. Though, a competitive market may be tackled to some extent by improving transportation facilities to promote free flow of raw material and finished goods, and increasing the demand for producer goods.

(v) Infrastructure:

A well-developed communication and transportation network is a pre-condition for expansion in entrepreneurship. It not only helps to enlarge the market, but expand the business horizons as well. For instance, the establishment of post and telegraph system and construction of roads and highways in India considerably promoted entrepreneurial activities.

Apart from these, a significant contribution is made by institutions like trade, business associations, business schools, libraries, etc. in sustaining and developing entrepreneurial activities in the economy.

Factor # 2. Social :

Social factors play a significant role in encouraging entrepreneurship. In fact we take up case study of industrial success in Europe, it is revealed that it was highly helpful society which contributed largely to bring about glorious industrial success in the country. The social settings in which the people grow, shapes their basic beliefs, values and norms.

Some of the important components of social environment are:

(i) Caste Factor:

Certain cultural practices and values evolve over hundreds of years and greatly influence the individuals’ personalities and actions. For instance, caste system in India divided Hindus in four divisions – the Brahmana (priest), the Kshatriya (warrior), the Vaishya (trade) and the Shudra (artisan).

This caste system also limited the social mobility of individuals. ‘Social mobility’ refers to freedom to move to a higher caste. Then, monopoly players of commercial activities were Vaishyas. Members of the other three Hindu varnas did not show interest in trade and commerce, even when India opened up and developed extensive commercial inter-relations with foreign countries. Dominance of certain ethnical groups in entrepreneurship is seen across the globe.

(ii) Family Background:

This factor includes size of family, type of family and economic status of family. In a study by Hadimani, it has been revealed that Zamindar family helped to gain access to political power and exhibit higher level of entrepreneurship.

Background of a family in manufacturing provided a source of industrial entrepreneurship. Occupational and social status of the family influenced mobility. There are certain circumstances where very few people would have to be venturesome.

For example, in a society where the joint family system is in vogue, those members of joint family who gain wealth by their hard work denied the opportunity to enjoy the fruits of their labor because they have to share their wealth with the other members of the family.

(iii) Education:

Education enables one to understand the outside world and equips him with the basic knowledge and skills to deal with day-to- day problems. In any society, the system of education has a significant role to play in inculcating entrepreneurial values.

In India, the system of education prior to the 20th century was based on religion. In this rigid system, critical and questioning attitudes towards society were discouraged. The caste system and the resultant occupational structure were reinforced by such education. It promoted the idea that business is not a respectable occupation.

Later, when the British came to our country, they introduced an education system, just to produce clerks and accountants for the East India Company, the base of such a system, as is well evident is very anti-entrepreneurial.

Our educational methods have not changed much even today. The emphasis is still on preparing students for standard jobs, rather than making them capable enough to stand on their feet.

(iv) Attitude of the Society:

A related aspect to these is the attitude of the society towards entrepreneurship. Certain societies encourage innovations and novelties, and thus approve entrepreneur’s actions and rewards like profits. Certain others do not tolerate changes and in such circumstances, entrepreneurship cannot take root and grow.

Similarly, some societies have an inherent dislike for any money-making activity. It is said, that in Russia, in the nineteenth century, the upper classes did not like entrepreneurs. For them, cultivating the land meant a good life. They believed that land belongs to God and its produce was nothing but God’s blessing. Russian folk-tales, proverbs and songs during this period carried the message that making wealth through business was not right.

(v) Cultural Value:

Motives impel men to action. Entrepreneurial growth requires proper motives like profit-making, acquisition of prestige and attainment of social status. Ambitious and talented men would take risks and innovate if these motives are strong. The strength of these motives depends upon the culture of the society.

If the culture is economically or monetarily oriented, entrepreneurship would be applauded and praised; wealth accumulation as a way of life would be appreciated. In the less developed countries, people are not economically motivated. Monetary incentives have relatively less attraction. People have ample opportunities of attaining social distinction by non-economic pursuits. Men with organizational abilities are, therefore, not dragged into business. They use their talents for non-economic end.

Factor # 3. Psychological :

Many entrepreneurial theorists have propounded theories of entrepreneurship that concentrate especially upon psychological factors.

These are as follows:

(i) Need Achievement:

The most important psychological theories of entrepreneurship were put forward in the early 1960s by David McClelland. According to McClelland, ‘need achievement’ is social motive to excel that tends to characterize successful entrepreneurs, especially when reinforced by cultural factors. He found that certain kind of people, especially those who became entrepreneurs, had this characteristic.

Moreover, some societies tend to reproduce a larger percentage of people with high ‘need achievement’ than other societies. McClelland attributed this to sociological factors. Differences among societies and individuals accounted for ‘need achievement’ being greater in some societies and less in certain others.

The theory states that people with high need-achievement are distinctive in several ways. They like to take risks and these risks stimulate them to greater effort. The theory identifies the factors that produce such people.

Initially McClelland attributed the role of parents, specially the mother, in mustering her son or daughter to be masterful and self-reliant. Later he put less emphasis on the parent-child relationship and gave more importance to social and cultural factors. He concluded that the ‘need achievement’ is conditioned more by social and cultural reinforcement rather than by parental influence and such related factors.

(ii) Withdrawal of Status Respect:

There are several other researchers who have tried to understand the psychological roots of entrepreneurship. One such individual is Everett Hagen who stresses the psychological consequences of social change. Hagen says, at some point many social groups experience a radical loss of status. Hagen attributed the withdrawal of status respect of a group to the genesis of entrepreneurship.

Hagen believes that the initial condition leading to eventual entrepreneurial behaviour is the loss of status by a group. He postulates that four types of events can produce status withdrawal – (a) the group may be displaced by force; (b) it may have its valued symbols denigrated; (c) it may drift into a situation of status inconsistency; and (d) it may not be accepted the expected status on migration in a new society.

(iii) Motives:

Other psychological theories of entrepreneurship stress the motives or goals of the entrepreneur. Cole is of the opinion that besides wealth, entrepreneurs seek power, prestige, security and service to society. Stepanek points particularly to non-monetary aspects such as independence, persons’ self-esteem, power and regard of the society.

On the same subject, Evans distinguishes motive by three kinds of entrepreneurs – (a) Managing entrepreneurs whose chief motive is security; (b) Innovating entrepreneurs, who are interested only in excitement; (c) Controlling entrepreneurs, who above all other motives, want power and authority.

Finally, Rostow has examined inter gradational changes in the families of entrepreneurs. He believes that the first generation seeks wealth, the second prestige and the third art and beauty.

(iv) Others:

Thomas Begley and David P.Boyd studied in detail the psychological roots of entrepreneurship in the mid-1980s.

They came to the conclusion that entrepreneurial attitudes based on psychological considerations have five dimensions –

(a) First came ‘need-achievement’ as described by McClelland. In all studies of successful entrepreneurs a high achievement orientation is invariably present;

(b) The second dimension that Begley and Boyd call ‘locus of control’. This means that the entrepreneur follows the idea that he can control his own life and is not influenced by factors like luck, fate and so on. Need-achievement logically people can control their own lives and are not influenced by external forces,

(c) The third dimension is the willingness to take risks. These two researchers have come to the conclusion that entrepreneurs who take moderate risks earn higher returns on their assets than those who take no risks at all or who take extravagant risks,

(d) Tolerance is the next dimension of this study. Very few decisions are made with complete information. So all business executives must, have a certain amount of tolerance for ambiguity,

(e) Finally, here is what psychologist call “Type A” behaviour. This is nothing but “a chronic, incessant struggle to achieve more and more in less and less of time”. Entrepreneurs are characterized by presence of “Type A” behaviour in all their endeavors.

EDP – Phases: Pre-Training, Training and Post-Training Phases

The entrepreneurship development programme (EDP) normally runs through three important phases followed by EDP evaluation:

1. Pre-Training Phase:

This is a preparatory phase for launching the programme. It is a planning phase where all requisite arrangements are made to deliver a content based and useful EDP. This stage lays the foundation for a strong EDP that can deliver desired results.

It encompasses:

i. Identification of promising area having good commercial prospects.

ii. Selection of project faculty/course coordinator who is a visionary and has relevant experience.

iii. Arrangement of infrastructural facilities for the programme like location, availability of internet, computers, food and lodging arrangements (if participants are expected to be from different cities).

iv. Conducting industrial survey/environmental scanning for identification of good business opportunities.

v. Designing the course contents.

vi. Getting support from various agencies such as DICs, SFCs, SISI etc.

vii. Advertising and publicity of EDP to reach prospective minds. Promotional campaigns through either with the help of print or electric media, leaflets, posters, etc.

viii. Selection of participants for the training program.

2. Training Phase:

The primary thrust of training programme is to instill motivation, skill or competency amongst the budding entrepreneurs. EDP should aim to provide both theoretical and hands-on practical knowledge to various trainees.

Training phase of EDP includes:

i. Management:

They should be taught basic principles of management and their applications in real life scenarios to realise the benefits and significance of the management functions like planning, organizing, staffing, directing, controlling and coordinating. The various techniques involved in the management process must be explained. The trainer can use case studies, management games, role- plays and simulations to polish the skills acquired by the trainees.

ii. Technical Competence:

Focus should be laid upon acquiring technical competence suitable to the area selected. Industry experts may be called upon to share their experiences. It’s important for the trainees to understand the basics of technology, rate of technological change in that industry and challenges ahead. A comparative analysis of present state of technology in developed and developing nations may be relevant at this stage.

Entrepreneurs can get ideas best suited to their regional environments. The program may cover as details of technology, plant and machinery, major suppliers, life span, special features of the machinery etc., raw materials and their availability, manufacturing process and human resource requirements. It’s important for the entrepreneurs to understand that they should not park substantial funds in fast changing technology as obsolescence is a big risk. Field trips may also be organized.

iii. Motivation and Stress Management:

The entrepreneurial training programs are designed to elevate and sustain the motivation levels of the trainees. Stress management is an important component of EDPs as entrepreneurs have to struggle through different phases before finally getting results. They should be taught stress management techniques and should also be counseled to hold-on to their beliefs and ideas. The importance of family members need to highlighted here.

Entrepreneurs are strong-willed individuals who may need family support during tough times. Family members are the ones closest to entrepreneurs. Each session in the training programme should aim at strengthening their confidence and expanding their vision. Motivation level must be raised to a greater extent because only motivated participants will survive through starting and sustaining a new venture.

3. Post Training or Follow-up Phase:

Post training support services are rendered to the participants who have successfully completed the entrepreneurship.

This phase may comprise of the following steps:

(i) Assistance in registration of the enterprise.

(ii) Loan procedures and documentation.

(iii) Facilitating infrastructure like land, plant layout, purchase of plant and machinery, power connection etc.

(iv) Securing subsidies and grants and utilizing incentives given by Centre and State government.

(v) Management consultancy and trouble shooting.

(vi) Providing up-to-date information on the industry.

(vii) Meeting with EDP organizers and participants.

Evaluation of EDP – It is important to review each aspect of EDP from pre-training to post- training phase. This helps in charting ‘lessons learnt’ and in guiding the organizers to plan better and remove loopholes in the next program. EDP evaluation should be planned alongside every phase of the program to identify and correct deviations, if any.

EDP – Top 3 Models: Psychological, Sociological and Population-Ecology Model (PEM)

Entrepreneurship helps in generating employment opportunities, earning foreign exchange, and increasing the total income of a country. The development of entrepreneurship requires proper attention and supervision by the entrepreneur. It can be performed efficiently by using various models. Schumpeter was the first who introduced the dynamic model of entrepreneurship.

The three types of models are discussed as follows:

1. Psychological Model:

Psychological model signifies that psychological factors are responsible for the development of entrepreneurial behavior in individuals. Need for achievement may be described as the internal stimulus in an individual that incites him/her to achieve something. McClelland played a significant role in the identification of factors responsible for entrepreneurship development.

He focused on actors (entrepreneurs) rather than the act (entrepreneurship) in his work on entrepreneurship (1961). In this model, McClelland in association with D. G. Winter stated that need for achievement is the prime factor for entrepreneurship development. He also asserted that a society with a high level of need for achievement comparatively produces more entrepreneurs.

After identifying the need for achievement as a prime factor for entrepreneurship development, he stated that the need of achievement can be aroused in individuals by increasing their motivation level. He suggested that motivation can be inculcated in individuals by rewarding the best performers and generating interest in excellence. McClelland also asserted that motivation-oriented training programs inspire individuals to take up entrepreneurship as a career and make them willing and eager to exploit new opportunities.

Everett Hagen’s in 1962 gave another psycho-social model of entrepreneurship development. In his model, he referred economic variables to a minor role and put an emphasis on creative personality as an important factor in developing entrepreneurial behavior. The Hagen’s model explains the causal sequence of entrepreneurial behavior, but fails to give any policy variable for entrepreneurial development.

In 1965, John Kunkel suggested a behaviorist model for entrepreneurial development. In his model, he suggested that entrepreneurial behavior is a function of the surrounding social structure, both present and past, and can be influenced by creating favorable economic and social conditions.

In the recent time, several other psychological approaches to entrepreneurship have been suggested. For example, Bird in 1989 examined entrepreneurial behavior of individuals by observing their work, family background, personal values, and motivation level.

2. Sociological Model:

Sociological model considers societal factors responsible for the development of entrepreneurial behavior in individuals. Some entrepreneurship scholars have emphasized the importance of socio-cultural surrounding in the development of entrepreneurs.

They stated that socio-cultural history has accounted for the development of entrepreneurship and the performance of entrepreneurial activities. Different societies with differing interests, attitudes, and systems of arranging people in to different classes are likely to produce different kinds of entrepreneurs and different patterns of entrepreneurial behavior.

The sociological model given by Frank W. Young is based on the theory of entrepreneurship, which is based on society’s system of stratification. The model explains that a sub-group that has a low status in a larger society leads to entrepreneurial behavior, if the institutional resources are provided by the government to the sub-group. The model suggests the creation of supporting institutions in the society to promote entrepreneurship.

3. Population-Ecology Model (PEM):

PEM analyzes the determinants of entrepreneurship development. PEM was developed Hannan and Freeman in 1977 to analyze the concept of entrepreneurship. The PEM model considers the probability of births and deaths within a population falling in a particular industry niche.

This model considers environment as the important determinant for the survival of the enterprise rather than individuals with status and personality traits. In addition, it focuses on the presence, characteristics, composition, and change in a population or in ecological circumstances in a particular society for developing entrepreneurial activity.

Entrepreneurship Development Programme – Process: 7 Step Process

Step # 1. selection of potential entrepreneurs:.

EDP is centered around prospective entrepreneurs. Hence, it is very important to do the first thing right. Individuals displaying entrepreneurial traits should be carefully identified and evaluated against some broad criteria to check their suitability for the EDP. They are like the protagonist of the show and an improper selection would result in a flop show.

Step # 2. Identification of Entrepreneurial Traits and Skills:

After the selection of a group of individuals for the EDP, some broad parameters may be checked to confirm their suitability for the program.

The entrepreneurial traits may be grouped into two categories:

a. Family Background:

Various factors about the family background help in understanding the exposure and level of understanding of the concerned individual. For instance, individuals from business families are familiar to the idea of risk, return, management, and profit and loss.

i. Age – Young people have a higher willingness to take on challenges as compared to older people. They are usually more receptive to and act as catalysts of change due to their creative and innovating thinking.

ii. Level of education – Education lays a significant role in shaping the ideology of an individual. It prepares a person to take on life and issues requiring attention with ease and look for conflict resolution. Education transforms an ordinary person into an informed citizen with a concern for societal good apart from financial gains.

iii. Family structure and size – The size and type of entrepreneur’s family helps in understanding the adaptability of the person with different individuals and people with differing opinions. An individual from joint family has generally a greater risk bearing capacity and adaptability as compared to nuclear family.

iv. Working members – The number of working members of the family determines the initial scale of launch because the entrepreneur usually counts upon his/her family in the initial phases of the business.

v. Social involvement – Social participation of and acceptance for prospective entrepreneur gives him/her an edge in the ability to influence others and create initial suppliers, customers and other supply chain contacts. Networking is the key to a successful venture.

b. Human Resource Factors:

Following innate or acquired skills must be deliberated upon:

i. Need for achievement – An individual with high need for achievement succeeds better. It involves both personal achievement goals and passion towards societal achievement.

ii. Inclination to take risk – Risk taking inclination signifies the interest of an entrepreneur in redefining standard business norms or creating niche spaces.

iii. Influencing ability – An entrepreneur needs to possess strong leadership and influencing capabilities to convince people and move towards achievement of their goals

iv. Personal efficiency – It is the desire to contribute effectively and be relevant to the society. It is important to study the gaps of current scenario adequately and design new products to increase the level of customer satisfaction.

v. Aspiration – Aspiration refers to ambitions of the individual with respect to future level of achievement. This focuses upon the future plans as envisioned by the entrepreneur for himself/herself. However, practical aspirations help in motivating the entrepreneur. Non-achievement of unrealistic goals might distress him/her. These aspirations may include one’s picture of the future with at both personal and professional front.

Step # 3. Identification of Enterprise:

It is critical to identify a viable enterprise or project for prospective entrepreneur after analyzing his/her socio-personal and human resource characteristics. Most of the broad parameters discussed above hint towards probable business ideas for the individual.

Combining the same with personal inclination of the entrepreneur and his creativity, a suitable entrepreneurial project must be identified. Preliminary feasibility studies like availability of required capital and labour, desired technical and marketing assistance etc. should be examined at this time. Better planning delivers better products.

Step # 4. Contents of Training Program:

As the participants attending EDP hail from diverse backgrounds, they have different expectations from the program.

The following types of trainings are provided during the program:

i. Technical knowledge and skills – Different modules may be planned for the participants by grouping them in some homogenous groups. Digital awareness, supply chain management, cloud computing etc. are certain areas which every new venture needs to be trained about.

ii. Achievement motivation training – This training inculcated self-confidence and self-belief in the entrepreneur. As the individual faces a tough time during initial phases and may even encounter loss or failure, motivation levels have to be kept high. They have to be trained conviction and persistence to follow their dreams and be socially relevant at the same time.

iii. Support systems and procedures – Training contents must include the knowledge about various government sector schemes to be benefitted from, active angel investors and business incubators. Few sessions with people from the industry can help the entrepreneurs in identifying their initial funders and help in lifelong networking which holds the key to sustainable start-ups.

iv. Market survey – Participants can be given pilot projects to survey prospective customers and test viability and commercial feasibility of their creative ideas.

v. Managerial skill – Trying to manage everything may make the entrepreneurs end up managing nothing. The idea behind management training is to teach them prioritizing, planning, organizing, directing, controlling and learning from mistakes. Its important that adequate sessions are conducted to teach financial, marketing, human resource management and implementation of sound management information system (MIS) in their business ventures.

Step # 5. Support System:

Completion of training program prepares the new entrepreneur to start-up up his/her new venture. Assistance and support may be required for financing, legal services, raw material procurement, initial office space and infrastructure in order to initiate operations of the new venture. This stage is the pillar of strength for a well- delivered EDP.

Coordination between EDP organizers and support system is a must to give wings to entrepreneur’s dreams. In fact all relevant agencies must be involved in various stages of EDP planning and execution so that both the entrepreneur and the agencies identify workable partnerships.

Step # 6. Production:

Production phase begins the real journey of the entrepreneurial venture. Lot of teething issues are encountered at this stage like continuous power supply, outages, delay in raw material procurement, technical faults with the machinery, faulty plant layout etc. These issues need expert handling and managerial and technological skills acquired in the EDP are put to use. Once the production starts, the entrepreneurs need to identify and partner with suitable marketing channels. He/She should launch a user-friendly web portal with online or phone based assistance to answer queries and clarify doubts of prospective clients.

Step # 7. Monitoring and Follow Up:

Continuous monitoring and follow, up is vital for the success of every entrepreneur development programme. A comprehensive monitoring system should be embedded in EDP to identify and remove blockers. Feedback is an essential component of this stage. Periodic meetings with trainers, participants, industry experts and supporting agencies can help in polishing the contents of EDP and continuously update it with recent changes.

EDP – Relevance of EDP

“No EDP, no economic development.” Entrepreneurial development plan can be framed and implemented without its relevance to the political, economic, social and legal environment.

Following are the relevance of entre­preneurial development programme:

1. They should be meeting the main object of development such as generating employment, set up ancillary, small and medium sized industry, and introduction of new entrepreneur and maintain stability etc.

2. There should be proper arrangement of training and education such as setting of technical and electrical institute, handicraft making institute.

3. There should be promotion to entrepreneurial skill such as technical and managerial skill. The main aim is to import management and technical know-how required by the participants to operate their business entrepreneur.

4. It develops the spirit of social responsibility by spreading social consciousness and awareness about new venture, new technology, managerial skill, uninterrupted supply of goods or services in society.

5. There should be improvement in mobility of entrepreneurs by providing training to new entrepreneurs and after that acquired employ­ment inside the area or outside the area.

6. There should be assistance in preparation of new projects about product /services, financial services, market of respective products.

7. Entrepreneurial Development Programme started several types of self-employment programme for removing unemployment by Inte­grated Rural Development Programme (IRDP), etc.

8. There should be balanced regional development and setting up of more units which leads to the development of backward areas through EDP.

9. Effective EDP is helpful in establishment and development of ancillary, tiny, small and medium industry and business.

10. EDP should be helpful in elimination of poverty and unemployment.

11. EDP should be helpful in search potential entrepreneur.

12. It should be helpful in constitution of institutional framework.

EDP – Limitations

The EDP activity has made rapid progress covering all the developed and underdeveloped regions of the country. Today, scores of organizations are involved in conducting EDPs as part of activities sponsored by various governments, public financial institutions, or nationalized banks. Several thousands of small, mostly first generation entrepreneurs have already been trained and a few thousands are being trained every year.

Yet after decades of experience in EDP activity one cannot get reliable, regular, time-related data pertaining to the efficacy of EDPs in terms of the following:

i. Developing all-round, competent, and successful first generation entrepreneurs, and

ii. Generating viable opportunities for permanent self-employment.

Absence of Built-in Mechanism for Monitoring and Evaluation of EDPs:

The biggest problem arising from the mushroom growth of EDP conducting agencies and the unplanned increase in EDPs conducted by them for widely diverse target groups is the absence of any machinery to monitor and evaluate objectively the effectiveness of the programmes conducted at public expense.

Also, there is no provision of any kind of built-in device/procedure to regularly monitor and periodically evaluate the results of an EDP conducted by an organization with funds from a public financial institution, government, or nationalized banks. Neither an organization which conducts EDPs as its primary or subsidiary activity is accountable to any overseeing agency with respect to the efficacy of EDPs conducted by it.

The funding arrangements with the financial institutions do not provide for any built- in obligation to monitor the progress and results of the EDPs conducted by an agency. The absence of accountability to monitor and evaluate results is a serious deficiency in financing EDP activity in India.

The average training of six to 12 weeks provided through EDP is completely free for a selected potential entrepreneur as the entire cost is borne by the sponsoring financial institution or nationalized bank. Even for the EDP conducting organization, this activity is costless because its overheads and direct costs of the EDP are paid for by the funding organization.

More important, nothing by way of performance is expected either from the training-entrepreneur or from the agency conducting the EDP. Also, the trainee is not expected to show that despite this strengthened need achievement be or she is going to make at least some use of the training and post-training inputs received by him or her.

As for the EDP conducting organization, it is immaterial and inconsequential whether a potential entrepreneur who is supposed to have been carefully selected for his entrepreneurial traits actually becomes, or tries to become, or at least shows keenness to become an entrepreneur within a reasonable period after the completion of training.

EDP – Institutions Involved in Providing EDPs in India

In India there is a rising awareness of the importance of the entrepreneurship and its relevance to the economic growth and development. The entrepreneurship development programmes contribute immensely. The introduction of entrepreneurship development programmes and similar efforts can be traced back to 1960s.

EDM has been spearheading an entrepreneurship movement throughout the nation with a belief that entrepreneurs need not necessarily be born; they can be developed through well-conceived and well-directed activities.

The state of Gujarat was the pioneer in the country in initiating entrepreneurship development programmes. Presently there are many government aided, private organizations, and NGOs associated with the task of conducting entrepreneurship development programmes.

The most prominent organisations in India include the following organisations:

1. Indian Institute of Entrepreneurship (IIE):

HE is an autonomous organization under the Ministry of Skill Development & Entrepreneurship. The Institute is engaged in providing training, consultancy, and conducting research activities in Small and Micro Enterprises (SME), with special focus on entrepreneurship development.

2. Entrepreneurship Development Institute of India (EDII):

EDM situated in Ahmedabad is a non-profit autonomous organisation. It has been sponsored by financial institutions such as IDBI, IFCI, ICICI, and SBI. It is also assisted by the government of Gujarat. EDII has been assisting the creation of centers for entrepreneurship development and institutes of entrepreneurship development in various states of the India.

3. National Institute for Entrepreneurship & Small Business Development (NIESBUD):

NIESBUD under the Ministry of Industry, Govt. of India was set up in 1983 as an apex body to co-ordinate the activities of various institutions engaged in entrepreneurship development especially in the area of small scale industry. It is also involved in conducting training programmes for entrepreneurs and trainees. NIESBUD is engaged in preparing model syllabi for training various target groups, undertaking research documentation, conducting seminars and developing training as well as teaching aids.

4. Centre for Entrepreneurship Development CED, Gujarat:

CED was established in1979 by the Gujarat government. Its EDP is one of the oldest entrepreneurship development programme in India.

5. National Institute of Small Industry Extension Training (NISIET) Hyderabad:

It is an autonomous body under Ministry of industry. NISIET has been providing training, conducting research and consultancy activities for the development of small industry.

6. Small Industry Service Institute (SISI):

SISI established by Government of India offers vast variety of services like conducting market survey, technology demonstration, preparation of techno- economic feasibility reports, marketing of products, product standardization, management consultancy, training etc. to potential and existing entrepreneurs.

7. SBI’s Programmes:

The State Bank of India has been conducting EDPs particularly in the backward areas across different states of India.

8. Rural Development and Self-Employment Training Institute (RUDSET):

RUDSET has been jointly sponsored by Canara bank and Syndicate bank. It is engaged in promotion of entrepreneurship.

9. Science and Technology Entrepreneurship Development (STED):

Under the Department of Science 6t Technology, Govt. of India, STED, is an autonomous organization involved in entrepreneurial development and employment generation through science fit technology inputs.

10. Xavier Institute of Social Services – Ranchi:

Department of entrepreneurship development programmes of XISS, Ranchi has been engaged in conducting various entrepreneurship development programmes and skill development programmes of national level since 1974. It has been supported by funding agencies like, Industrial Development Bank of India and Industrial Finance Corporation.

11. Development Commissioner (MSME) under Ministry of Micro, Small & Medium Enterprises:

The Govt, of India through Development Commissioner (MSME) under Ministry of Micro, Small & Medium Enterprises has been undertaking various programmes related to entrepreneurship development. These programmes include a large number of vocational and entrepreneurship development programmes and other related programmes for entrepreneurship and skill development.

They are explained as under:

(i) Entrepreneurship Development Programmes (EDPs):

EDPs are being regularly conducted to cultivate the talent of aspiring youths by making them aware on various aspects of industrial activity required for setting up (Micro, Small Enterprises) MSEs. ITIs, Polytechnics and other technical institutions are generally involved in organizing the EDPs.

The course contents EDPs are planned to offer necessary information to the entrepreneurs on product and process design, manufacturing practices involved, testing and quality control, selection and usage of appropriate machinery and equipments, project profile preparation, marketing techniques, product pricing, service pricing, export opportunities, infrastructure facilities available, financial facilities available.

(ii) Entrepreneurial Skill Development Programme (ESDP):

Entrepreneurial Skill Development Programmes are basically meant to upgrade skills of the potential and existing entrepreneurs and the available workforce. These programmes provide sufficient training to develop skills of new workers and technicians. These programmes devoted for skill development of socially disadvantaged groups (ST, ST, women, OBC and minorities) are being regularly being organized in various parts of the different states.

For these ESDPs 20 percent of the total targeted people exclusively belong to the weaker sections of the society i.e. (SC/ST/women and PH).They are provided a stipend of Rs. 500 per month per candidate under the Promotional Package for MSEs. No fee is charged from the candidates under these programmes Rs.200 is charged from general candidates.

(iii) Management Development Programmes (MDPs):

Management Development Programmes are being conducted to impart training on management practices. These programmes are aimed to improve the decision -making and managerial skills of the potential and existing entrepreneurs. These programmes can help the entrepreneurs enhance their productivity and increase their profitability.

MDPs are also of short duration and the curriculum for the MDPs is designed based on the needs of the industry and are customized. 20 percent of the targeted training programmes are conducted exclusively for the weaker sections of the Society (SC/ST/Women/Physically Handicapped).

EDP – Achievement of EDP

The prime goal of EDPs is to create entrepreneurs who adopt entre­preneurial career and set up their own new small business ventures. It is a prerequisite for an overall economic development of any country.

The follow­ing achievements are as follows:

1. Improvement in per capital income- Entrepreneurs are always looking for the opportunities and exploring & exploiting the opportunities. They lead in organizing various factors of production by putting them into productivity through establishing new entrepreneurs. When more & more enterprises will establish, it will result in the increment of employment and generating wealth in the form of goods and services. Therefore, EDP play a positive role in setting up of more units and helps in generating more employ­ment and income.

2. EDP helps an entrepreneur in formulating projects by providing the entrepreneur necessary technical guidance & support.

3. EDP helps an entrepreneur in expansion and establishment of new industrial or venture or business.

4. EDP plays an important role in developing the qualities through entre­preneurial training, education, experiments and orientation programmes.

5. EDPs helps in balanced regional development and reduces concen­tration of economic power in few hands only.

6. It helps in establishing entrepreneurial development institute such as EDII, NIESBOD, NAYE CED etc.

7. Miscellaneous-

i. Increment in production and productivity.

ii. Expansion of market.

iii. Decentralization of economic resources

iv. Promote the spirit of social responsibility

v. Searching new entrepreneurial opportunity.

Achievements of Entrepreneurship Development Programmes:

1. 686 organizations are engage in organizing entrepreneurship development.

2. Around 30% entrepreneurship development trained entrepreneurs put up their enterprise.

3. The schemes offered which include entrepreneurship developments concepts are:

(a) Prime Minister’s Rojagar Yojna (PMRY)

(b) Swarnajayanti Gram Swarojgar Yojna (SGSY)

(c) Rural employment Generation Programme (REGP)

Entrepreneurship Development Programme – 9 Major Problems

Institutional framework is indispensable for the entrepreneurial development programmes. But the entrepreneurs have been facing several problems when they are interacting with the various institutions involved in the EDPs.

Following are the major problems involved in the organisation of EDPs:

1) Improper Identification and Wrong Selection – The most important problem is improper identification and faulty selection of the projects. This leads to wrong choice of technology and improper forecasting of financial requirements.

2) Undue Delays in Implementation – Undue delays are caused in the implementation of the projects which leads to cost escalations. This, in its turn, creates financial crunch, increases the burden of debt and raises the break-even point.

3) Faulty Selection of Candidates – There is no proper and uniform method adopted by various agencies for identification and selection of prospective entrepreneurs.

4) Lack of Infrastructure Facilities – There are no adequate infrastructure facilities such as satisfactory transport and communication facilities, shortage of housing accommodation, erratic power and water supply, defective sewerage systems for disposal of industrial waste, lack of proper class rooms, guest- speaker, boarding and lodging etc.

5) Lack of Competent Faculty – Lack of competent and active teaching and managing faculty in rural and backward regions is another major problem of the EDPs. Even when they are available, they are not prepared to go to the rural and backward areas where the programmes are conducted.

6) Poor Financial Management – Financial institutions which have promised initially for participating in the EDPs fail to keep up their promises later on. This leads to inadequate finance, poor working capital management, lack of organisation and unproductive expenditure out of available working capital etc.

7) Shortage of Technical Manpower – Another major problem faced by the EDPs is the shortage of trained technical personnel needed at the location of the units. Since the units are low capital-based, they cannot afford to employ skilled technical manpower at high salaries. Seasonal availability of skilled labour leads to under-utilisation of the productive capacity.

8) Multiplicity of Government Agencies – Multiplicity of government and other agencies leads to harassment and wastage of valuable time and energy of the entrepreneurs. Bureaucratic delays are caused by Government agencies and departments as red-tapism and bureaucracy play their role erratically.

9) Shortages or Irregularities in Supply – Irregular and inadequate supply of various inputs like raw materials, half- finished goods, tools and equipments etc. hampers the production process of the small scale units. Very often, new entrepreneurs, being not able to get their requirements adequately, will be compelled to procure them at higher prices or keep their plant idle.

10) Too much Dependence on Middlemen – Small entrepreneurs have to depend too much upon middlemen and others and face severe competition in the market. They have no competence or capacity or even resources to compete with large business entrepreneurs.

11) Unsatisfactory Services – The consultancy services rendered by local level and state level agencies are quite unsatisfactory. Whatever promises and assurances are given to the entrepreneurs during the training programme by them will not at all be fulfilled. The EDPs and the trainees face many other problems which are very difficult to be solved easily.

There is over- estimation of trainees by assuming that they have aptitude for self- employment and training will provide them necessary motivation and enable them to set up their ventures successfully. But the actual situation is not like this. Because of these problems, the EDPs have not been successful as per expectation.

12) Duration Period of EDPs – The duration period of EDPs varies from 4 to 6 weeks which is very short to instill basic management skills among the prospective entrepreneurs. It should be sufficiently long enough to enable the potential entrepreneurs to understand, digest and be capable of starting their new ventures confidently.

Suggestions to Make EDPs Successful:

Following suggestions may be made to make EDPs successful:

1) Proper Balance between Stimulating, Supporting and Sustaining Activities:

There should be a proper balance between the three types of activities viz. stimulating, supporting and sustaining to make the EDPs successful. Stimulating activities are concerned with entrepreneurial education, publication of entrepreneurial facilities, help in identifying variable products and creating a common platform for entrepreneurs to moveable them to share problems, experience and success.

Supporting activities are concerned with various forms of support to the entrepreneurs In order to set up and run their ventures. They include registration, mobilisation of funds, obtaining a license, getting tax relief and management consultancy services. Finally, sustaining activities relate expansion, diversification, modernisation and quality control.

2) Selection of Trainees:

Trainees should be selected after a careful and complete screening of their education status, family background, attitude, aptitude, economic status, etc. Educated unemployed young person’s having an aptitude for self-employment should be selected for EDP The selection of wrong trainees is most likely to lead to wastage of money, efforts, time and other resources.

3) Need for Experienced and Competent Trainers:

Trainers should also be equally competent, qualified, suitable and committed to the job entrusted to them, because the success of the EDPs depends ultimately upon the trainers who must be fully acquainted with the latest knowledge and information in their respective fields.

At times, experienced and suitable trainers are found to be unwilling to work in rural and backward areas. Local trainers may be employed but they will not be available in large number and they may not be able to impress the potential entrepreneurs as much as outside experts. Therefore, the trainers should also be selected only after assessing the socio-economic needs of the area and the target group involved.

4) Role of Trainers:

The role of the trainers is very great and at the same time, complex because they have to deal with people (potential entrepreneurs or trainees) who may be having limited aspirations and who may tend to resort to fate. The trainers are required not only to impart knowledge and skill but also to bring about attitudinal change in society. The trainers have to act as catalysts or change agents. That is why the trainer is called the kingpin of EDP and he must therefore involve himself fully.

A good trainer must possess the following qualities:

i) Aptitude for development work,

ii) Faith in people’s capacity to change,

iii) Flair for public relation and field work,

iv) Interest in understanding people and getting along with them.

v) In depth study of the area and its people,

vi) Dedication, patience and resourcefulness, and

vii) Proper sense of discrimination and capacity to work under stress.

5) Designing of a Viable Project:

A viable project is a project which is feasible in terms of availability of essential inputs and market potential. The organiser of EDPs should prepare such projects by taking into account the availability of local resources, finance, training requirements and assessing the feasibility of the projects. They should select right people, provide right training, and entrust viable projects to them to make the EDPs successful.

6) Focus on Achievement Motivation:

It is quite essential to develop achievement motivation among the potential entrepreneurs through proper training and conducive environment with a view to creating their dream into reality.

7) Organising Part Time Programmes:

Part time EDPs may be conducted during the week ends or in the evening to provide opportunities to those persons who are working somewhere and who are not able to join regular EDPs.

EDP – Lessons from EDP Experience and Strategies for Future

Some tips may help in avoiding a few common problems and issues regarding EDPs. Here, a deliberate attempt has been made to avoid any specific lessons which are likely to prove unhelpful as one may tend to apply such lessons mechanically without regard to contextual differences.

Instead, the emphasis is on following general tips by way of approaches/attitudes which have been tested and proven to be universally helpful in almost all EDPs. In other words, the common denominators of success of EDP strategy or model or programme need to be understood.

They are as follows:

1. Comprehensive as against Partial Approach:

The easy temptation to take a quick, practical view and to follow a limited or partial approach must be avoided. More specifically, a holistic view of EDP strategy covering all stages must be taken; and within each stage, a similar comprehensive approach needs to be followed.

2. Integrated Approach:

All the elements of EDP activity must be looked upon as a composite, integrated whole. More specifically, the pre-training and post-training stages need to be woven into a single strong fabric. This can best be done by following the common underlying design and purpose which is to help in the realization of new, viable, and successful ventures.

3. Development Approach:

While some inputs of training process (pre-training as also post- training processes) have technical aspects, their developmental orientation should not be overlooked. Otherwise, behavioural tests or selection procedures or technical training inputs may well become specialized activities thereby losing sight of the developmental direction into which they all need to be propelled.

4. Goal-Oriented Concerns:

From the very outset, the entire process should have an implicit goal-oriented concern. As the process continues, it may not be possible to reflect goal- orientation explicitly on a day to day basis. Yet, awareness of goal orientation should permeate all activities during the entire programme.

The goal is the preparation of an appropriate, viable project suitable for each individual. It is also necessary not to overlook the importance of equipping the individual by helping him or her with required financial assistance or other such inputs for the success of the project.

5. Need-Based Flexibility:

There is no single formula for developing entrepreneurs. There are target groups as well as individuals within groups whose special needs and requirements must be constantly kept in view. Individual strengths and weaknesses must also be recognized if potential entrepreneurs are to be transformed into successful small captains of industry. This calls for flexibility and imagination.

6. Individual Counselling:

Apart from formal class-room group training, which of course is inevitable, EDPs must stress on the need for individual counselling. To the extent to which resources are provided for individual counselling, EDPs will become really successful.

7. Introspective Critical Attitude:

For continued spread and success of EDP activity, the strategy and the programme should be continually modified and developed in the light of changed circumstances and on the basis of experience. An introspective view is of prime importance for this purpose. Validation of tools/techniques used and periodic performance evaluation are the two major manifestations of such a critical spirit which requires sell improvement.

The success of EDPs rests on the proper emphasis on the following elements:

i. Not anybody or everybody can become a successful entrepreneur. EDP training should be directed in favour of persons who show promising potential. Careful selection helps to identify such potentially sound entrepreneurs. If the selection processes are thorough, further need-based training could be provided for more effective results.

ii. Without proper counselling based on strengths and weaknesses of individual entrepreneurs, it is not possible to make real progress. Statistical progress reports of numbers may well be misleading,

iii. Work experience, especially in industry or business comes across as a key element in the process of industrial entrepreneurship formation as profiles of new emerging entrepreneurs reveal. Experience gained during employment prepares the ground for successful self-employment, and experience in self-employment is equally advantageous to successful entrepreneurs,

iv. Careful selection and sound training under EDP alone may not yield satisfactory results unless adequate and timely financing is provided to the new breed of entrepreneurs. They may have the skills and competence to back a sound project, but may not have substantial finances of their own.

v. Finally, the Indian experience strongly suggests that while entrepreneurs can indeed be developed, the task is complex and it requires substantial expertise in training, organizational resources, and institutional support. The rewards are also equally substantial though they may not all come in one go.

Related Articles:

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entrepreneurship development program need and objectives

Entrepreneurship Development Programmes | EDP Objectives

Table of Contents

Entrepreneurship Development Programmes (EDP)

Need for EDP: A well known behavioral scientists David McClelland at Harvard University made an interesting investigation into why certain societies displayed greed creative power? Is whether entrepreneurs are born or made?. He found that the ‘need for achievement’ was the answer to the question.

‘Motive people to work hard leads to achievement’. According to the scholars, Money making is incidental whereas the measurement of achievement is valid.’

As the term itself denotes, EDP is a programme meant to develop entrepreneurial abilities among the people. In other words, it refers to inculcation, development, and polishing of entrepreneurial skills into a person needed to establish and successfully run his / her enterprise. Thus, the concept of entrepreneurship development programme involves equipping a person with the required skills and knowledge needed for starting and running the enterprise.

Experimental study (Kakinada) He conducted a 5 year experimental study in one of the prosperous district of Andhra Pradesh in India in collaboration with small industry extension and training institute (SIET). His experiment is popularly called as ‘Kakinada Experiment’. Under the experiment, young employees/persons are selected and put through a three month training program and motivated to see fresh goals. One of the signi cant conclusion of the experiment was that the traditional believes did not seem to inhibit. An entrepreneurs and that the suitable training can provide the necessary motivation to the entrepreneurs.

The achievement motivation had a positive impact on the performance of entrepreneurs. The Kak-inada experiment could be treated as ‘Precursor to the present day EDP’ inputs on behavioral aspects.

1971 – First massive program of ED embarked in India.

Entrepreneurship Development Programme Objectives :

1. Let the entrepreneur himself/herself set or reset objectives for his/her business and strive for the realization. 2. Prepare him/her to accept the uncertainty involved in running a business. 3. Enable him/her to take decision. 4. Enable to communicate clearly and effectively. 5. Develop a broad vision about the business. 6. Make him subscribe to industrial democracy 7. Develop passion for integrity and honesty 8. Make him learn compliance with law. 11. Develop and strengthen their entrepreneurial quality (i.e.,) motivation or need for the achievement. 12. Analyze environmental setup relating to small industry and small business. 13. Select product 14. Formulate project for the product. 15. Understand the process and procedure involved in setting up an small enterprise. 16. Know the sources of help and support available for starting a small scale industry. 17. Acquire the necessary managerial skills required to run a small enterprise. 18. To know the pros and cons in becoming an entrepreneur. 19. Appreciate the needed entrepreneurial disciplines.

Phases of EDP’s An Entrepreneurship development program consists of the following three phases:

  • Pre-training phase
  • Training phase
  • Post-training phase

Related posts:

Business Objectives

Sachin Thorat

Sachin is a B-TECH graduate in Mechanical Engineering from a reputed Engineering college. Currently, he is working in the sheet metal industry as a designer. Additionally, he has interested in Product Design, Animation, and Project design. He also likes to write articles related to the mechanical engineering field and tries to motivate other mechanical engineering students by his innovative project ideas, design, models and videos.

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Entrepreneurship Development Program

Entrepreneurship Development Programme (EDP) is a programme which helps in developing entrepreneurial abilities. The skills that are required to run a business successfully is developed among the students through this programme. Sometimes, students may have skills but it requires polishing and incubation. This programme is perfect for them. This programme consists of a structured training process to develop an individual as an entrepreneur. It helps the person to acquire skills and necessary capabilities to play the role of an entrepreneur effectively.

EDP is an effort of converting a person to an entrepreneur by passing him through thoroughly structured training. An entrepreneur is required to respond appropriately to the market and he/she is also required to understand the business needs. The skills needed are varied and they need to be taken care in the best possible way. EDP is not just a training programme but it is a complete process to make the possible transformation of an individual into an entrepreneur. This programme also guides the individuals on how to start the business and effective ways to sustain it successfully.

Startup weekend.jpg

Objectives of EDP

The objective of this programme is to motivate an individual to choose the entrepreneurship as a career and to prepare the person to exploit the market opportunities for own business successfully. These objectives can be set both in the short-term and long-term basis.

Short-term objectives: These objectives can be achieved immediately. In the short-term, the individuals are trained to be an entrepreneur and made competent enough to scan the existing market situation and environment. The person, who would be the future entrepreneur, should first set the goal as an entrepreneur. The information related to the existing rules and regulations is essential at this stage.

Long-term objectives: The ultimate objective is that the trained individuals successfully establish their own business and they should be equipped with all the required skills to run their business smoothly.

The overall objectives of EDP are mainly to help in the rapid growth of the economy by supplying skilled entrepreneurs. This programme primarily aims at providing self-employment to the young generation.

Roles of EDP

An Entrepreneurship Development Programme primarily plays four roles to help an individual to become an entrepreneur. They are:

Stimulatory Role : It aims at influencing people in large number to be the entrepreneur. This includes:

developing managerial, technical, financial, and marketing skill

inculcating personality traits

promotes and reforms entrepreneurial behavior and values

identifying a potential entrepreneur applying scientific methods

motivational training and building a proper attitude

strengthening the motive of a person and giving recognition

the valuable know-how of the local products and the processes help in the selection of products, preparation of project reports

Supportive Role: It helps in the following ways:

registration of the business

procurement of fund

Incubation support

Team building and team development support

Mentorship and guidance from industry experts

Providing tax relief, subsidy, government schemes etc.

guidance in product marketing

support for management consultancy

Sustaining Role: It aims at providing an effective safeguard to businesses to sustain against the cut-throat market competition. This includes:

help in modernization, expansion, and diversification

additional financing for further development

Global Networking Opportunities

creating new marketing processes

helping access to improved services and co-working centers

Socio-economic Role:  It aims at upgrading the socio-economic status of the public and includes:

identifying entrepreneurial qualities in practicality

creating employment opportunities in micro, small, and medium industries on an immediate basis

arresting concentration of industries by supporting regional development in a balanced manner

focusing on the equal distribution of income and wealth of the nation

channelizing the latent resources for building an enterprise

Program Structure

Phase 1: starting your startup hypothesis:, idea validation workshop.

Introduction

Stating your startup problem/hypothesis

Understating Scenarios

Idea feasibility analysis

Idea Validation

Closing pitches

Business Model Canvas Part 1

Understating the nine blocks

Visualizing your startup idea

Developing your model

Phase 2: Testing your startup hypothesis:

Value proposition design.

Creating a product/offering that sells

Understating Customers

Creating better values

Creative disruption

Persona Development

Customer empathy map.

Creating customer personas

Customer Journey

Understanding pain points

Understanding gain creators

Understanding pain relievers

Empathy Mapping

A day in the life of customers

Visualization

Phase 3: Evaluating  your startup environment:

Blue ocean strategy.

Scanning the environment

Competition analysis

Four action frame work

Buyer utility map

Strategy Canvas

Business Model Canvas Part 2

Industry Forces

SWOT analysis

Business model environment

Testing the nine blocks

Prototyping

Understanding MVP

Product Design

Service Design

Market testing

Development

Phase 4: Legals and government support:

Company registration.

Types of legal entities

Making the choice

Paper Work and Costs

Intellectual Property Rights

Indian IPR Law

Types of IPR

Government Policies

Marketing metrics.

Startup India Program

Standup India Program

Get, Keep, Grow Cycles

Web Platform Strategies

Physical Platform Strategies

Filing For Patent

Forms required

Costs Involved

Investor Engagement

How to tell your story

Metrics that matter

Art of negotiations

Want to introduce EDP on your Campus?

To set up the Entrepreneurship Development Program (EDP) on your campus or in your city write us a mail at [email protected]  alternatively you can contact us using the contact link below. Our team would love to support you in any way possible.

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Entrepreneurship Development Program

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Entrepreneurship Development Program

“Being an entrepreneur is neither a part-time job or a full-time job, it’s a lifestyle.” Entrepreneurs today are more than just revenue builders. They offer employment, better prospects and a new way of living to the younger generation. India too, is a witness to Entrepreneurial Development, as the young minds have more courage and are willing to take risks. They are huge contributors to the economy today. Successful Entrepreneurs like Ritesh Agarwal (founder of OYO), Akhilendra Sahu (Founder of ASTNT Technologies), Kavita Shukla (Founder and CEO of Freshpaper), etc. are enormous motivation to the youth. The entrepreneurship development program is made to develop and improve the abilities and potential of budding entrepreneurs and people who aspire to become entrepreneurs someday. In simple terms is a course that is designed to groom future entrepreneurs in every way.

There are various aspects that affect entrepreneurs, like political factors, legal factors, taxation, labour market, infrastructure, etc. Tackling them is quite the Herculean task, and the Entrepreneurship Development Program offers just the aid and guidance essential to comprehend problems and implement solutions. You see, every obstacle cannot be conquered by the ‘business acumen’.

This Blog Includes:

Influence of entrepreneurship development program, objectives of entrepreneurship development program, role of entrepreneurship development program, 1. the babson college, 2. mit sloan school of management, 3. stanford graduate school of business, 4. cambridge judge business school, 5. usc marshall school of business, 6. saïd business school, 7. columbia business school, 8. university of rochester, 9. ucla anderson school of management, 10. lancaster university management school.

Entrepreneurs are basically of two kinds:

  • The ones who are academically well informed
  • The ones who are not

In both cases, entrepreneurs need to be groomed and refined, be it in the skills they already possess or the ones they need to develop.  National Institute of Small Industry Extension Training (NISIET), Hyderabad described Entrepreneurship Development Program as “ an attempt to develop a person as an entrepreneur through structural training ”. Entrepreneurs are essential to the economy of the country and Entrepreneur Development Program’s proper refining, will result in supremacy in more than one ways:

  • There will be a genuine and profitable use of local resources
  • There will be more jobs openings, a serious need of the hour, ubiquitously
  • With the usage of resources and people getting jobs, the per capita income will increase dramatically and will be an important factor for developmental purposes
  • With the right aid, the capital formation will also improve, resulting in both personal and economic growth
  • Considering all the above factors, there will be a sense of monetary independence. When there is healthy competition between local products (developed by the entrepreneurs), the need to import does not hold value. This also amplifies the feeling of nationality amongst the natives.
  • With more work possibilities and affluence, industrial ghettos will dwindle and there will be an up gradation in the standard of living.
  • With better jobs and homes, social pressure decreases, creating a thriving society that is readily advancing towards overall development.

The Entrepreneurship Development Program closely follows the skill set needed to stand on one’s feet as a successful entrepreneur and offers a course that will support the candidate in evolving as a better leader. Being an entrepreneur is not just about ‘being one’s own boss’. It requires a lot of vigour to face repeated failures and nerve to keep the faith of those working for him, intact. The Entrepreneurship Development Program aims to develop this moral strength and courage through the curriculum, apart from teaching the theoretical part of it. It has two goals to achieve as suggested by the program providers:

  • Short Term Objectives
  • Long Term Objectives

Also Read: Draper University’s Online Entrepreneurship Course

The Entrepreneurship Development Program course, on the whole, builds up a process that explores the following fundamentals of entrepreneurship:

  • The territorial set up required for running a successful venture
  • The right merchandise to be invested in and the steps that follow to set up the venture
  • Developing relations with the proper investors, advisors, buyers and subsequent sellers Understanding of the market is the most important lesson this program aims to impart
  • Preparation to face indefinite complications and possession of proper managerial skills in times of crisis.
  • To help entrepreneurs reorganize their ideas and objectives
  • To ensure that the entrepreneurs acquire fair communication skills
  • To develop a wider and more forward mindset regarding their business and always being open to fresh ideas

Must Read: Importance of Entrepreneurship

Top Universities for Entrepreneurship Development Program

This kind of rigorous, thorough and taxing program like the Entrepreneurship Development Program requires a good institute and able guidance to make it worth the while. There is a surfeit of Institutes offering all kinds of Entrepreneurship Programs. It is extremely vital to select the right college with the right course material to make sure that the end results are truly rewarding. It should cover the fundamental topics of Law, Marketing, Finance, Strategy, Leadership, Operations, and Planning among others.

The famed Entrepreneurship Magazine and the Princeton review, every year brings to you the top colleges offering the best Grad and Undergrad programs in Entrepreneurship. Looking through the list, here are the top colleges that will help realize your aspirations:

Situated in Wellesley, Massachusetts, USA and set up in 1919, this college is primarily centred on entrepreneurship studies. In their own words, they try to infuse Entrepreneurial Thoughts and Actions, trying to give the Entrepreneur a new definition. This college requires a minimum of 599 (1 year) or 619 (2 years) GMAT Score for admission. After all, the best college has place only for the best.

Another top college for Entrepreneurship studies, it is the business school of the reputed Massachusetts Institute of Technology, founded in 1914. Located in Cambridge, Massachusetts, USA, it has a very constructive and supportive course to help startups, budding entrepreneurs and corporate venturing executives.  It helps in future networking bringing along the MIT entrepreneurial community. An average of 716 in your GMAT is enough to get you through.

Positioned in California, this is the business school of the prestigious Stanford University. This college too, like others in the list, offers a concrete and encouraging program to help shape the future entrepreneurs with the correct training and resources. Founded in 1952, this college has a wider range for eligible GMAT score varying from 590 to a 790.

Business School of Cambridge University, they aim to polish entrepreneurs through the entire journey, from the initial stages to the final touch-ups. Established in 1954, and located in Cambridge, UK, this college’s present name was given in the month of September 2005. Even though a specific GMAT score is not specified, a standard score should be around 696.

With a varied range of subjects, electives and the option of online learning, USC Marshall School of Business provides the indispensable framework of entrepreneurship build up. The course structure helps open up the young minds to innovations and ideas, and is as they themselves say, ‘the best investment of your life’. This investment, however, requires an average score of 698 in GMAT.

This is a business school equivalent of Oxford University, situated in the UK. Aimed at preparing the candidates in the race of originality and managerial skills, the subjects are structured to give the best-gratifying experience. It was rebranded in 1996 although it was founded in 1965. The college asks for an average GMAT score of 743, which is a little intricate, but not unachievable.

Positioned in the land of dreams, New York, USA, it is considered as one of the Ivy League colleges. It was inaugurated in 1916. From introducing students to the startup environment to providing funds to profiting ideas, Columbia covers all aspects of the course. The average GMAT score to get in here is 740. With the Columbia Startup Lab and the Eugene M. Lang Entrepreneurial fund, the college promises to help even after your theoretical knowledge is imparted.

Located in Rochester, USA, this private research university is home to thousands of entrepreneurship students. It was founded in 1865, probably the oldest amongst those on this list.  With their unique Ain Centre for entrepreneurship, that has tie-ups with other colleges as well as educational centres, there are enough resources and supporting hands to lead the entrepreneurs of tomorrow ahead. The typical GMAT score needed to secure a position in this college ranges from 665 to 671. 

Part of the University of California and situated in Los Angeles USA, this college has the motto ‘think in the next’. It was set up in 1935. The Price centre for Entrepreneurship and innovations in college helps co-students reach out to each other and provide any kind of assistance required for their startups. This helps the bright minds to connect and have brainstorming sessions for overall development. The average GMAT score required to be a part of the prestigious team is 716.

Located in Lancaster, England, this university was established in 1964. The college offers a broad range of subjects and a very important feature, i.e. ‘real-world feedback’ to constantly update their course framework and adapt to the ever-growing market. They also have the added advantage of Entrepreneurs-in-residence, who are ready to direct the students in case of any roadblocks.

Also Read: List of Famous Indian Entrepreneurs

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An entrepreneurship development program is a program that is aimed solely at enhancing the entrepreneurial abilities of anyone who wants to become a successful entrepreneur in the future. This program follows a well structured process of training which brings out the best in the people who feel they lack the desired abilities to be a good entrepreneur. 

One of the primary objectives of this program is the make the person taking the training to realise the best version of himself or herself as an entrepreneur. It has both short term as well as long term objectives. The short term objectives of this program are to develop and assist the individual in understanding the market better and the opportunities it holds for them. The long term objectives, however, are more centred about making the individual independent enough to start their own business. 

The stages of an entrepreneurship development program include: The pre training phase, also known as the training phase The development or the main training phase The follow up phase or the post training phase 

The Government of India, realizing the impetus and training needed by the youth to harness their entrepreneurship skills have set up institutions like NIESBUD in Noida, MSME-DI for small scale industries, NIMSME in Yousufguda, Hyderabad, EDI, NSTEDB, IED and CED in different states of India. 

In other words, these colleges/universities provide you with a chance; a chance to make a difference, a chance to prove your worth, a chance to be your own boss. Life may be a roller coaster ride, but at one point it offers that one opportunity, that can turn the tides. Do not let that chance slip away. Let Leverage Edu help you, grab that opening, with all your capabilities, and help you live your dreams.

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COMMENTS

  1. Entrepreneurial Development Programme EDPs

    Entrepreneurial Development Programme (EDP) can be defined as a programme, formally designed to help an individual in strengthening his/her entrepreneurial motive and in acquiring skill and capabilities necessary for playing entrepreneurial role effectively.

  2. Entrepreneurship Development Programmes: Meaning, Need and Objectives

    According to N. P. Singh (1985), "Entrepreneurship Development Programme is designed to help an individual in strengthening his entrepreneurial motive and in acquiring skills and capabilities necessary for playing his entrepreneurial role effectively.

  3. Entrepreneurial Development Programmes (EDP): Meaning, Phases

    Reduction of social tension Facilitation of overall development Prevention of industrial slums Improves standard of living Objectives of Entrepreneurial Development Programme (EDP) Developing the entrepreneurial motivation Analysing the environment Selection of project Project formulation Acquiring the basic managerial skills

  4. Empowering Growth: A Comprehensive Guide to Entrepreneurship Development

    By fostering a culture of innovation, creativity, and entrepreneurship, the ultimate objective of ED is to promote the growth of individuals, communities, and economies as a whole. Table of Content What is an Entrepreneurship Development? How does Entrepreneurship Development work? Entrepreneurship Development Concepts

  5. Entrepreneurship Development: Meaning, Objective, Challenges

    August 16, 2022 Entrepreneurship development is concerned with the study of entrepreneurship behavior. the dynamics of business setup, development, and expansion of the business. Here in this article, we have explained the ED program and its meaning, definition, objective, models, and advantages. What is Entrepreneurship Development?

  6. What is EDP in Entrepreneurship? efinition, Features, Objectives

    Objectives of EDP Achievements of EDP Creation of Employment Opportunities Capital Formation Balanced Regional Development Use of Local Resources Improvement in Per Capita Income Improvement in the Standard of Living Economic and Independence Preventing Industrial Slums Reducing Social Tension Facilitating Overall Development

  7. Entrepreneurial Development Programmes

    5. Objectives of EDPs. The main aims and objectives of entrepreneurial development programmes are as follow: i. Develop entrepreneurship and strengthen the entrepreneurial base and quality. ii. Promote and develop small scale businesses that encourage self employment. iii.

  8. Entrepreneurship Development and Education

    Drawing from the vast culture of innovation and entrepreneurship at MIT, this unique entrepreneurship development course introduces participants to MIT's entrepreneurial education programs, technology transfer system, and global entrepreneurial network. It covers the entire venture creation process, from generating ideas to building viable ...

  9. Entrepreneurship Development Programs: Objectives, Benefits, And Best

    These programs aim to empower aspiring entrepreneurs by providing them with the knowledge, resources, and support required to navigate the complexities of starting and managing a business. They are crucial for fostering innovation, economic growth, and job creation. Objectives of Entrepreneurship Development Programs

  10. PDF Entrepreneurship Development

    1. Begin with a clear understanding of the feasibility and objectives of the programme, focusing on the development of ventures with the potential for rapid growth. There is a pervasive tendency to equate entrepreneurship development (ED) with self-employment. Many self-employed individuals are indeed entrepreneurs, but the majority are not.

  11. Entrepreneurship Development Programme (EDP)

    ADVERTISEMENTS: EDP is defined as a programme designed to help an individual in strengthening his entrepreneurship motive and in acquiring skills and capabilities necessary for playing his entrepreneurship role effectively.

  12. Entrepreneurial Development Programme

    Following are the main objectives of EDPs : To make people learn compliance with law. To develop and fortify entrepreneurial quality, i.e., motivation or need for achievement. To develop small and medium scale enterprises in order to generate employment and widen the scope of industrial ownership.

  13. 3: Enhancing Entrepreneurship Education and Skills Development

    3: Enhancing Entrepreneurship Education and Skills Development. Entrepreneurial skills centre around attitudes (soft skills), such as persistence, networking and self-confidence on the one hand and enabling skills (hard skills) on the other hand, including basic start- up knowledge, business planning, financial literacy and managerial skills.

  14. 1. Objectives and challenges of entrepreneurship policy

    This chapter provides an overview of key factors to consider in designing and implementing effective entrepreneurship policies. It discusses the current objectives and challenges of entrepreneurship policy. It presents good practice principles for policy design and draws lessons for successful policy development and implementation.

  15. 1.1: Chapter 1

    He ended up with the following eight entrepreneurship themes: 1. The Entrepreneur - The entrepreneur theme is the idea that entrepreneurship involves individuals with unique personality characteristics and abilities (e.g., risk-taking, locus of control, autonomy, perseverance, commitment, vision, creativity). Almost 50% of the respondents ...

  16. Entrepreneurship Development Process

    The objectives of entrepreneurship development programmes are to increase the knowledge and skill of existing entrepreneurs and encourage others to become one. Ultimately, it helps in increasing the number of such individuals in an economy.

  17. Entrepreneurship Development Process: Concept and Process

    Entrepreneurship development is the means of enhancing the knowledge and skill of entrepreneurs through several classroom coaching and programs, and training. The main point of the development process is to strengthen and increase the number of entrepreneurs. This entrepreneur development process helps new firms or ventures get better in ...

  18. Entrepreneurship Development: Definition & Process

    Setting an Objective of the Program Before starting the entrepreneurship development program, it is imperative to set a clear objective and draft a plan as to what the program is aiming to accomplish. As someone who is organising this program, having a clear direction and objectives play an important role in making it a success.

  19. Entrepreneurial Development Programs

    The Senate Committee on Small Business and Entrepreneurship oversees the Small Business Administration's (SBA) entrepreneurial development programs. Congress has authorized the SBA to carry out a network of programs to provide small businesses with quality training, counseling and access to resources. The SBA delivers this critical technical ...

  20. Entrepreneurship Development Programme

    1. Introduction to EDP 2. Meaning of EDP 3. Evolution 4. Objectives 5. Features 6. Course Contents and Curriculum 7. Need 8. Role 9. Rationale 10. Evaluation 11. Factors Influencing 12. Phases. 13. Models 14. Process 15. Relevance 16. Limitations 17. Institutions Involved in Providing EDPs in India 18. Achievement 19. Problems 20.

  21. Entrepreneurship Development Programmes

    1. Let the entrepreneur himself/herself set or reset objectives for his/her business and strive for the realization. 2. Prepare him/her to accept the uncertainty involved in running a business. 3. Enable him/her to take decision. 4. Enable to communicate clearly and effectively. 5.

  22. Entrepreneurship Development Program

    They are: Stimulatory Role: It aims at influencing people in large number to be the entrepreneur. This includes: developing managerial, technical, financial, and marketing skill inculcating personality traits promotes and reforms entrepreneurial behavior and values identifying a potential entrepreneur applying scientific methods

  23. Entrepreneurship Development Program

    The entrepreneurship development program is made to develop and improve the abilities and potential of budding entrepreneurs and people who aspire to become entrepreneurs someday. In simple terms is a course that is designed to groom future entrepreneurs in every way.