#PTER 1 0

HAPTER
10
ENTREPRENEURIAL
DEVELOPMENT PROGRAMME

l INTRODUCTION

reneurs play a predominant role in accekrating the socio-ecoomic

ent ofa country. They are regarded as the nation builders and wealth creators. They
change agents who ho initiate economic activities to create wealth. They undertake the

itiative,employ
eNs initiative,empl
themselves in that business and open up employment avenues tor

Entreprene urship devekopment has, therefore, become a matter of great concern in all
Entr

and developing countries all over the world. But, the real problem is how to
developed
ievelop entreprene urship. Entrepreneurship development programmes (EDPs) are deemed to
entrepreneurshp.
neloy
to this problem.
oHersolution
EDP is a programme designed to help a person in strengthening his entrepreneurial
kills and abilities, necessary for playing his entrepreneurial role
mptive and in acquiring
and skills and helping to play the roe of
fectively. Developing entrepreneurial motives
entrepreneurs efectively are the aims of EDPs.

Awell-designed EDP envisages three-tiered approach:

Developing achievement motivation and sharpening entrepreneurial traits and

behaviour.
Guidance on ind ustrial opportunities, incentives, fac ilities, rules and regulations.
Deveoping, managing and operational capabilities.

02 MEANING OF ENTREPRENEURIAL DEVELOPMENT PROGRAMMES

Entrepreneurship Deveopment Programme (EDP) may be defined as "a programme

h e p an individual in strengthening his entrepreneurial motive and in acquring
It is necessary
Capabilities necessary for playing his entrepreneurial role effectively.
promote his urial values
Phaviour for this
understand
ing of motives and theirimpact on entreprene and
te ole ofed veloping entrepreneurial motives and
purpose.Deve skills and hebing to play
toe of
trepreneurs effectivelyaare the aims of EDPs.
 10.2 Entrepremeurial Development
A we
lldesigned EDP envisages three-tieredapproaach:
Deveoping achievement motivation
and sharpenin entrepreneurial traits
behaviour. and
Guidance on industria l opportunities, incentives, facilities, rues and regulations

Devebping, managing and operational capabilities.

10.3 THE INDIAN EDP MODEL

There is a saying that entrepreneurs are the products of nature, nature and culk.
f
course, this is very much true in Indian context. Apart ffom the nature and the culture, the
the r
of nurture is very much significant for human resource developmet. The mh
entrepreneurs are born and not made has no bnger been accepted. Ord inary persons canthat
turned into successful entrepreneurs though wel-designed training programmes conducted be
term nurture here implies the trei
by
ueEntrepreneurship Devebpment institutes. The raining
intervention which is a real endeavor towards human resource development, especial
entrepreneurial devebpment. The Entrepreneurial Deveopment Programmes, therefore,
based upon well designed and integated modular packages to but to the needs of the buddino
entrepreneurs. Thetraining level follows more or less the same principle in organizin
Entrepreneurial Deveopment Programmes. In the present context, EDPs are usual
conducted fdr fbur to six weeks and the curiculum adopted by the above institutes for
imparting tra ining is abo apparently uniform

10.4 OB/ECTIVES OF EDP

1. To attract people to entrepreneurial development programmes through effective
promotion
2. To make them aware of
the various availab ke business opportunities.
3. Devebp and strength their entreprene urial quality, i.e., motivation or need for
achie vement.
4. To develop Management related skills like
communication, opportunity identification, problem solving, decision making,
partic ipants. interpersonal, team building among te
5. Analyse environmental setup relating to
small ind ustry and
6. To Seect small business.
product
7. To formulate
project for the pröduct.
8. To understand the
process and procedure
involved in setting up a
small enterprisc
 Programme 10.3
103
Entrepreneurial Development
9. 10 knoW the source ofhe lp and support ava ilable for starting a small scale Ind usury

10. 1o acquire the necessary mana gerial skills required to run a small enterprs

11. To know the pros and cons in becoming anentrepreneur. to

etc., reating t
40 dke
particpants aware of the various levels, procedures,
entrepreneurship.
13. To conduct research and study on the effectiveness of the
various programn
erc.
schemes, market potential of various business opportunities, ofT
one
which
4. Enhanc ing the growth of small-and med ium- scaeenterprise sectors
betterpotential for employment generation and dispersal
ofind ustrial un.
industries by the suppiy o
15. Improving performance of small-and medium-scale sources of
sources or
and diversifying
care fully sekcted and trained entrepreneurs

entrepreneurship. IS
where local entrepreneurshp
and no-industry areas
16. Enterprise devebpment in rural not easily lured.
from nearby towns are
notreally available and entrepreneurs

Other objectives of EDPs: strive or

her business and
/she set or reset objectives for his/
1. Let the entrepreneur he
their realization.
business.
involved in running a
2. Prepare him / her accept the uncertainty
her to take decisions.
3. Enable him /
communicate clearly and effectively.
4. Enable to
with aw.
learn compliance
5. Make him
broad vision about
the business.
a
6. Devebp
industrial democracy
subscribe to
7. Make him
for integrity and honesty
8. Devebp passion

CONTENT OF EDP
10.5
in line with the objectives of the EDPs.
The course contents of an EDP are selected
duration.
weeks
is usually to six
The training programme
urs hip:
introduction to entreprene
1. General
exposed to a general knowledge of entrepreeurship
First of all, the participants are
Scae industries, the role of entrepreneurs in economic,
such as factors affecting small-
behavior and the facilities available ofestablishing SSI.
development, entrepreneurial
 104 Entrepreneurial Developmen
2. Motivation Taining:
The training inputs this a im at induc ing and
increasing the need for achieveme nt
among the partic ipants. This is, in fact, a crucial
inputs of
entreprene
Efforts are made to inject confdence and positive attitude and beha urship training.
vio ur the
part ic ipants towards busine ss. It ultimately tries to make the participants to startamong
the ir
bus iness enterprise the own
the
competion ofthe tra ining programme. In order to further motivate
partic ipants, so metimes successful entrepreneurs are also invited to speak about
experience in se tting up and running a business. the ir
3. Manage me nt Skills:

Running a business, whether large or small, requires the management skill.

small entreprene urs cannot employ Since a
management experts to manage his / her bus iness, he/
she needs to be imparted basic essential
managerial
skills in the functio nal areas like
finance, production and marketing. Knowledge of mana gerial skills enab es an
entrepreneurs to run his / her enterprise smoothly and successfully. .

4. Support system and procedure:

The participants also need to be exposed to the. support available from different
institutions and agencies for settingg up and running small scale enterprise. This is
followed by acquainting them with procedure for approaching thenm, applying and
obtaining support form them.

5. Fundame ntals of project feasibility study:

Under this input, the participants are provided guidelines on the effective analysis of
feasibility or viability of the particuar project in view of marketing, organization,
technical, financial and social aspects. Knowedge is also given how to prepare the
Project". Or "Feasib il ity Report" for certain produc ts.
6. Plant visits:
In order to familiarize the participants with real life situations in small bus iness, pant
visits are also arranged. Such trips help the partic ipants know more about an
him/ her
entrepreneur's beha viour, personality, thoughts and aspiratio ns. These influence
to behave accord ingly to run his/ her enterprise smoothly and success fully.

10.6 PHASES OF EDPs

The EDPs normally pass through following three important phases:
Pre-training phase.
Training phase.
Post-training or follow-up phase.
 Entrepreneurial Development Programme 10.
A. PRE-1RAINING PHASE
Ths phase is the preparatory phase for launching the programmes. It mcudes

number ofactivities, which are as follows:

i ldentification ofoperationally-pomising area, normally a district.

i. Selection ofa project leader/course coord inator to coord inate the programme.

ii. Amangement of infrastructural facilities for the programme.

for identification
IV. Undertaking potential industrial survey/environmental scanning
of good bus iness opportunities.
V. Planning the programmes on various fonts such as:

of eectric med 1a,

campaigns through ethet with the help print
or
vi Promotional
leaflets, posters, etc.
vii. Establishing contacts with business personalities, NGOs and related agencies
whch can contribute to the programme both directly and ind irectly.

them available at different

vii. Getting the application forms printed and making
centers along with instructions.
trainees.
ix. Forming selection committee for selecting the
sanctions and organizing other
x Preparing the budget, obtaining administrative
activities which from a part of EDP.
and to tie u with
xi Preparing and finalizing the need-based inputs in training syllabus
guest faculties to impart training.
xii. Contacting the support agencies like DICs, SFCs, SISI, banks,
NSIC, District
Magistrate, etc. to receive support in implementing the programme.
campaigns to mobilize as much number of
xii. Organizing industrial motivational
applicatios as possibke.
involves the identification and selection of potential
Thus, pre -

training stage
motivation to them.
entrepreneurs and provding initial

B. TRAINING PHASE
them proper guidance for setting up
Training potential entrepreneurs are providing
EDP. Most of the Entrepreneurship Development
enterprise constitutes the cornerstone of
basis. The
weeks duration on full time
institutes generally conduct tra ining programmes of4-6
and the ir focus is described.
programmes design in terms ofobjectives, ining inputs
tra
 10.6 Etrepreneurial Development

Training Phase: Programme Design

Objectives Focus Inputs
Motivation and reinforcement Entrepree ur
Beha vioural inputs
ofentrepreneur ial traits,
confidence build ing
Facilitating decision- mak ing Enterprise establishment Busine ss opportunity
process to set up a new guidance,
venture
information and project
planning inp uts, technical
inputs

Success ful and pro fitab le Enterprise management, Management inputs, pant
operation of enterprise. First Hand Knowledge of visit/in-plant training
Ind ustrial exposure factory
layout, business sites, etc.

The objective of this phase is also to bring desirabke changes in the beha viour of the
tra iness. The trainers have to judge how much, and how for the trainees have moved in their
entrepreneurial pursuits. According to Singh, a trainer should see the fbllowing changes in
the behaviour ofparticipants.

I s he attitud ina lly tuned very strongly towards his proposed project idea ?
I s he motiva ted to plunge for entreprene urial venture and risk that is
expected of an
entrepreneur?
Is there any change in his
entrepreneurial outlook, role and skil1?
How should he beha ve like an
entrepreneur?
.What kind of
entrepreneurial behaviour does the trainee lack?
Whether the trainee possesses the
knowledge of technology, resources and other
knowedge rehted to entreprene urs hip?
Does the trainee
possess the required skill in
mobilizing the required resources at the selecting the viable project,
right time?
Some of the questions listed
above also answer the
designing a suitabk tra ining basic underlying
programme
trainees, the trainers need to ask for the potential entreprene urs. Havingassumption in
moved in the ir the mselves as to how much, and trained the
entrepreneurial purs uits. how far the trainees have
 Entrepreneurial Development Programme 10.7

. POST-TRAINING PHASE
of the programme
This phase involves assessment to judge how for the objectives
have been achieved.

earlier phases and suggesis

Monitoring and follow up reveals drawbacks in the
policy. In this phase infrastructural support, counse ling ana
guide lines br training the future the existing units can
aiso De
in establishing new enterprise and in developing
ass istance performance; drawbacks, if
This is called 'follow-up'. Follow-up indicates our past
reviewed. for framing fiuture policies to improve
our

any, in o r past
work and suggests guidelines
performance.
During this
phase is otherwise known as the phase of folow-up support.
Post-tra ining who have successfully
rendered to the participants
phase, post-raining support services
are fact
(EDP). This is because of the
Deve opment Programme
competed Entreprene urship
the
after undergoing the training confronts a
number of
that, very o ften, the potential entrepreneur
this phase,
the project. So during
lems while implementing the action plan for ground ing
prob out the problems through
organization helps the entrepreneur in sorting the
the training
is formed consisting ofmembers generally drafted from
counse ll ing support. A committee
Financ ial Corporation, training organization and above all,
lead ing bank of the district, State
objectives during
District Industries Centre to hep the entrepreneurs with the föllowing
the
the follow-up:
the trainees in grounding their enterprise.
To provide meaningful direction to
a
project.
T o review the progress made by the trainees in impementation ofthe
T o review the post-training approach.
financial institutions and
To provide escort services to the trainees by involving
action meetings are organized thrice
a
promotional agencies. Usually, follow-up
used
training and the following methods are generally
year after the completion of
for follow-up:
Postalquestionnannaire.
Teephonic follow-up.
Personal contact by thetrainer.
Group meetîngs.
10.7 TYPES OF EDP
train ing
Depending objectives of the entrepreneurship deveopment,
upon the
programmes and the nature of the target/beneficiaries,
following types of EDPs organized all
over India.

16
 10.8 Entrepreneurial Development
I. Entrepre neurship Awareness Training Programme
2. Entrepreneurship Dee opment training programme General.
3. Managerial skill deve bpment programme for existing entreprene urs

4. Product- Oriented EDPs.

5. Target- group oriented ED Tra ining programme.

General Men and Women
Techno crafts
Adivasis
Educated unemployed
College students, U.G., P.G., MBA students

.Underprivileged castes
Students of vocational institutes

Women
Ex-servicemen
Lower income group people

Grafts men and artisans

. Tribal
Midde level and junior evel managers

Hand icapped

10.8 ROLE, THEIR RELEVANCE AND ACHIEVEMENTS OF EDP

There fore, the rok of entrepreneur is of fundamenta l importance to a country like

the
India where the twin problems ofpoverty and unemployment coexist. During early sixties,
small scale sector was considered as exclusively an employment-generating sector, but

gradually this sector began to be the crucial tool for tapping latent
recognized as
entrepreneurial talent and now in the post-liberalization period, there seems to be ample
opportunities for entreprene urship and entrepreneurial gro wth. Considering the importance of
small scale ind ustries in employment creation and economic development, the Government or
India envisaged promotional packages to facilitate setting up of new enterprises. In order to
bring about entrepreneurial growth, the policy mailers and financial institutions started
think ing in terms of imbb ing entreprene urship culture through training interventions.
 Entrepreneurial Development Programme 10.9
Thus, Entrepreneurship Development Programmes (EDPs) Corporation (GIIC) and
her
other agenc ies who
have organized a three-month entrepreneurship development programme
Late sixties. The pro gramme was conduc ted for a selective group of energetic and potential
who had the and desire to achieve
willingness the goal set by them. The
ntreoreneurs
shiectives
bjectives
laid down for the above programmes were as follows:

.Toset up small scak ventures.

.To manage them eflèctively.

.To earn adequate profit from these ventures.

.To undertake personal respons ibility of the bus iness

McCeland, the renewed
It has been found out that 'n Ach factor developed by David
development. In order
scientist, is the most important quality for entrepreneurial
behavioural he conducted an experiment in
that the need for achievement could be induced,
to prove Institute (SIET) of
with the erstwhile Small Industries Extension and Training
colaboration selected and put through
Andhra Pradesh. Young persons were
Hyderabad at Kakinada, The
a period of three months
to guide them to set new goas.
rigorous training for
motivation has a positive impact upon their ta_k
performance. The Kakinada
achievement
EDP inputs on
could be treated as an important basis for the present-day
experiment
behavioural aspects.
has become an integral part of
In later stage, Achievement Motivation Training (AMT)
SIDO and TCOs came forward conduct
EDP course curriculum. Institutes like SISI, NISIET,
EDPs and national level organizations like Entrepreneurship Development Institute (EDI) of
for Entrepreneurship and Small Business
Ind ia, Ahmadabad and National Institute
programmes.

Accord ing to a study conducted by NIESBUD, present, as many as 686 odd

at
EDPs in
organizations, including the state level organizations like IEDs/CEDs, are organizing
the country. The educational institutio ns conduct short and the long term entrepreneurial

development programmes. Even private companies have started offering entrepreneurial

development programmes.
It is now regarded as a tool of industrialization and solution to une mployment
probem. The objective of entrepreneurial development is to motivate a person for
entrepreneurial career and to make him capable of perceiving and exploiting successfully
on how to start their
Pportunities for enterprises. One trained entrepreneurs can guide others
own enterprise and approach various institutions. In fact trained entreprene urs become

catalysts ofdeve lop ing industry and economic progress.

.
 10.10 Entrepreneurial Development
10.9 PROBLEMS FACED BY EDP
EDPs suffer on many counts. The problems and acunae are n the part of all those
who are involved in the process, be it the trainers and the trainces, the ED organizations, he
Supporting organizations and the State governme nts.
Proble ms:
1. Trainer motivation are not found up to the mark in motivating the trainees to start
their own enterprises.

2. ED organizations lack in commitment and sincerity in cond ucting the EDPs.

3. Non conducive environment and constraints make the trainer motivator's role
effective.
4. Apathetic attitude of the support agencies like banks and financial institutions to
support entrepreneurs.
5. Selection ofwrong trainees aso leads to ow success rate of EDPs.

6. Shortage ofadequate number of specia lized and committed organizations.

7. Identification and selection of wrong projects.

8. Lack ofentrepreneurial and culture.

9. Lack of forward and backward linkages.

10. Improper identification ofprojects.

11. Inadequate counseling support aftertraining.

12. Lack of continuous follow-up action or post-training support services for grounding
the project

Thus, it is ckear that the probems are not with the strategy but with its implementation.

10.10 CRITERIA FOR ASSESSMENT OR EVALUATIÓN OF EDPS

One way of evaluation the EDPs is to assess their effectiveness is devebping "need
for achievement"
among the entrepreneurs. This is also called the qualitative evaluation'" of
"

the EDPs. The behavio ural scientists used the following criteria to assess the effectiveness or
EDPs is motivating the
entreprene urs.
Activity level ofthe respondents
Total in vestments made/Investments in fixed
assets made
.Quality ofproduct/ service improved
 Entrepreneurial Development Programme 10.11
. New enterprise creation.

.Employment generation in quantifiable terms.

. Creation of job opportunities both directly and ind irectly.

Increase in sales and pro fit.

Ente rprise expansion.

. Enterprise trans formation.
services.
Improe ment in qua lity ofprod uct or
Repayment ofloans.
with the help of
other behavioural experiments, the impact of EDPs is measured
In meas ured
behaviour. The entreprene urial beha vio ur is
ind ices relating to the entrepreneurial
four dimens ions.
on the föllowing

1. Planning orientation

2. Achievement orientation

3. Expans ion orientation

4. Management orientation

ORGANIZING EDPS
10.1 ROLE OF GOVERNMENT IN
the industrial growth was limited to a
After Independence it was found that most of
houses. Government decided to encourage
ew areas and confined to few top business
various incentives in both industrially
entrepreneurial activities and ventures through
were engaged in entrepreneurship
backward and rural areas. Various agencies and institutions
financ ial market and
development activity. Main thrust ofthese was to provide technological,
morale support to the potentials of entrepreneurs, who at as catalyst agents of change.

Entrepreneurship developments programmes are the Human developments

Resource

programmes of the highest order which basically

deal with human motivation, skills
competencies, social and economic risks and investment of financial and physical reso urces
of the state.
in
There fore, the role of government in organizing ED Ps much significance country a

ike ours which requires the conversion of surplus labour force into real entrepreneurs to
ackle the problems of unemployment and poverty means ofthe EDP mechanism.

Role Of Govemme nt And Non- Government In Promoting Entrepreneurs hip In India

In India, three types of roes are played by governmental and non - governmental

agencies.
 10.12 Entrepreneurial Development
I. Programme Role:

1. Its main
promotional roe is to promote
encouragement, motivation, guidance etc.
entrepreneurship by aware ness buikding,
2. ldentification of potential
entrepreneurs through rescarch and scientific methods.
3. The eftorts for
promoting entrepreneurs hip are of three types.
AWareness creation
programme to create an awareness
of entrepreneurial
opportunit ies.
Programme on creation of new entrepreneurs. To
capabilities. develop their management

Programme on creation of current and entrepreneurs to tra in and devebp new

entrepreneurs.
These programmes are
target group oriented (e.g for women,
entrepreneur). Product specific (e.g. food product, jute product etc and rural technical
-

(eg. TN, AP etc.) location - specific

IL Supportive Role:

Various
agenc ies land support in establishing and managing enterprises. There is
obviously an overlap between promotiona, supportive and developmental roles. The
supportive roe helps in promotion, maintenance and deve lop ment of
provide concessional support in the form of loans at concessional rate entrepreneurship. They
of interest; offer sales
tax and inco me tax holiday etc.

There institutions help the

entrepreneurs in modernization, diversification, growth,
add itional financing. quality testing
provid ing information and marketing. Institutions
provid ing promotional and supportive role are established at different levels. They have three
or four tier
machinery to serve entreprene urs.
They are at:
1. District Level- DIC, KVIC
2. State Level- SFC, TCO, SSIDC, KVIB, EDI, SISI
3. National Level-ICICI, IC, EDII, KVIC,
NABARD, IDBI
IL Regulatory Role:

Though various laws, a go vernment tries to regulate and Control

regulatory institutions give ciearance for construction of factories, entreprene urs. The
concessions etc. Al regulatory institutions have their supply of power, tax relie,
necessary help and support to entrepreneurs. polices and programmes to provide
postive factor on the promotion of Proper and simple and regulations
will act as a
entrepre ne urship.
 Entrepreneurial Development Programme 10.13

various agencies in promoting entrepreneurship:

rv. Role of
offering
There are number of agencies working for promoting entrepreneurship,
into two main
services. These supportive institutions can be cassified
oeneral and specific
One is pomotion and devebpment, general
services e.g. SIPCOT, AIC, SIDCO
Cate gories. Institutions concentrating on
oneis financ ial support e.g. IDBI, ICICI, SIDBI.
and another offer general services like EDPs
and deve bpment of entrepreneurship which
the promotion role by financ ing
DIC and SIDcO and institutions, which play a supportive
such as SIPCOT,
like SIDBI, IDBI, and ICICI.
the entrepreneur