6. edp programmes - lecture 6

8/3/2019 6. EDP Programmes - Lecture 6

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UNIT 1: ENTREPRENEURSHIPDEVELOPMENT PROGRAMMES

Entrepreneurs play a predominant role in accelerating the socio-economic development

of the country. They are regarded as the nations builders and wealth creators.

Therefore, the role of entrepreneurs is of fundamental importance to a country like Indiawhere the twin problem of poverty and unemployment co-exist.

Entrepreneurial development is an organized and systematic development. It is

regarded as the tool of industrialization and a solution to the unemployment problem.

The objective of entrepreneurial development is to motivate a person for entrepreneurial

career and to make him capable of perceiving and exploiting successfully, opportunities

for enterprise. One trained entrepreneur can guide others on how to start their own

enterprise and approach various institutions. The entrepreneurial talent can be raised by

undertaking various Entrepreneurship Development Programmes (EDPs).

Entrepreneurship Development Programmes (EDPs) may be defined as a programme

designed to help an individual in strengthening this 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 as their impact on

entrepreneurial values and behavior for this purpose.

Objectives of EDPs

1. Accelerating industrial development by enlarging the pool of entrepreneurs.

2. Assessing industrial development of rural and less developed areas.

3. Enlarging the small and medium enterprise sector.

4. Providing productive self-employment to a number of men & women.

5. To identify and train potential entrepreneurs.

6. To develop necessary knowledge and skills amongst the participants.

7. To impart basic managerial understanding.

8. To provide post training assistance.

9. Augmenting the no. of entrepreneurs for increasing the pace of industrialization.

SANAMPREET KAUR KAPOOR Page 1


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Need for EDPs

Entrepreneurial development is an organized and systematic development. The thrust

of entrepreneurial development is to motivate a person for entrepreneurial career and to

make him capable of perceiving the opportunities and exploiting them successfully for

setting up his own enterprise. Need for EDPs can be judged on the basis of the

following points:

1. Eliminating poverty and unemployment

2. Balanced regional development

3. Preventing industrial slums

4. Using locally available resources

5. Easing social tension

6. Improvement in per capita income

7. Capital formation

8. Facilitating overall development

Phases of Entrepreneurial Development Programme (EDPs)

The following are the three broad phases of an entrepreneurial development

programme:

1. Pre-training phase: The success of EDP depends on the training promotional

ground work carried out by the training organization. Various activities

undertaken by an organization organizing EDPs are:

a. Designing of course curriculum: EDP depends upon the objectives of EDP.

While designing innovative course curriculum utmost care is taken to ensure

that it must meet the requirements of the programme. The main thrust is on

the following subjects:



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i. Introduction to entrepreneurship

ii. Motivation training

iii. Management and technical skillsiv. Support system & procedure

v. Fundamentals of project feasibility study

vi. Plant visits

b. Selection of resource person: The success of EDP depends upon the caliber

of the resource person. The finalization of the terms and conditions with the

resource person hence becomes very important for the conduct of EDPs.

c. Insertion of advertisement: Information regarding forthcoming EDPs along

with relevant details is flashed through various Medias of advertisement.

Advertisement can be repeated in case the response is found to be

inadequate.

d. Selection of potential entrepreneurs: The success of an EDP depends upon

the proper identification and selection of participants for training. Selection of

prospective entrepreneurs is made on the basis of:

I. Information available in the application form.

II. Written test for knowing about the aptitude of candidates.

III. Personal interview of shortlisted candidates for knowing about their

family background, willingness to take risk, ambitions etc.

2. Training phase:The main aim of training programme is to develop motivationand requisite skills amongst the potential entrepreneurs. Both theoretical and

practical knowledge is imported to the trainees. The basic purpose of training is

to develop, Need for achievement amongst the trainees.



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According to N.P. Singh, a trainer should see the following changes in the

behavior of the participants:

a. Is s/he attitudinally tuned very strongly towards his proposed project idea?

b. Is the trainee motivated to plunge for entrepreneurial venture and risk that

is expected of an entrepreneur?

c. Is there any perceptual change in his entrepreneurial attitude, outlook,

skill, role, etc.?

d. How should s/he behave like an entrepreneur?

e. What kinds of entrepreneurial traits the trainee lacks the most?

f. Whether the trainee possesses the required skill in selecting the viable

project?

Entrepreneurial training can be imparted by the following methods:

a. Individual Training

b. Group Training

c. Lecture Method

d. Written Instruction Method

e. Demonstration Method

f. Conference Method

g. Meetings

3. Post-training or follow up phase: EDPs aim at developing the right type of

caliber and motivation amongst the potential entrepreneurs so as to enable them

to set up their own enterprises. The success or failure of EDPs depend upon, the

extent upto which the objectives of EDPs have been achieved.

Through follow up one can know about his past performance, weaknesses and

draw up plans for removing these bottlenecks in future.



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Evaluation of EDPs

Evaluation of an EDP can be judged on the basis of extent of success achieved in the

realization of objectives established under EDP. According to Dr. Sharma,

entrepreneurial performance is a function of the following factors:

1. Socio-cultural background of the entrepreneur (SB): This implies the environment

in which the entrepreneur was born and brought up. It conditions the values and

attitudes of the entrepreneur.

2. Motivational force (MF): It implies the motives which prompts a person to

undertake entrepreneurship, e.g., wealth, status, self employment, etc.

3. Knowledge and ability of the entrepreneur (KA): It refers to the education, training

and experience of the entrepreneur.

4. Financial strength (FS): It means the funds which an entrepreneur can mobilize

from internal and external sources.

5. Environmental variables (EV): These consist of environmental policies, market

conditions, availability of technology and labour situation.

Symbolically, Entrepreneurial Performance (EP) can be represented in the following

way:

EP = f (SB, ME, KA, FS & EV)

The following main criterion can be employed to comment on the performance of the

entrepreneurs:

1. Financial results (return on capital employed, net profit over sales, etc.)

2. Gestation period (time gap between registration & commencement of production)



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3. Capacity utilization (demand for finished products & availability of various FOP)

4. Expansion & diversification

5. Value addition (gross value of output minus value of inputs used in production)

6. Other factors (employment generation, rural development, sales turnover etc)

Entrepreneurial development and motivation

Motivation is widely used to describe the behavior and performance of employees and

managers. Among the various motives, achievement motivation, as originally

conceptualized by David McClelland (1961) and linked to entrepreneurship, is the most

important. The need for achievement can best be described as an urge in an individual

to do something extraordinary or unique, an urge to excel, an attempt to meet a self

imposed standard of excellence, or a desire for success in competition with others and

involvement in a long term career goal.

Development of Achievement Motivation: The development of achievement motivation

amongst the entrepreneurs can be contributed to the following:

1. Literature

2. Socialization

Entrepreneurs and Motivation Factors: Entrepreneurship comprises of various activities

and marks their culmination into one entity. When a person becomes an entrepreneur,

one can broadly observe two types of factors External & Internal. These are as

follows:

Internal Motivational Factors:

1. Family Background

2. Occupational Background

3. Educational Background

4. Desire to work independently



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Internal Motivational Factors:

1. Business Opportunities

2. Positive role of government

3. Role of financial institutions

Problems in the conduct of EDPs

1. No policy at the National Level

2. Problems at the Pre-training phase

3. Over-Estimation of trainees

4. Duration of EDPs

5. Non availability of infrastructural facilities

6. Improper methodology

7. Mode of selection

8. Non-availability of competent resource persons

9. Poor response of financial institutions

Problems faced by women entrepreneurs:

1. Stiff competition from male entrepreneurs

2. Low ability to bear risk

3. Lack of family support

4. Shortage of funds

5. Slow progress of women entrepreneur association

6. Production, marketing, managerial, administrative & organizational problems

Suggestions to make EDPs successful:



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1. Emphasis on stimulating, supporting and sustaining activities: There should be a

balance between stimulating, supporting and sustaining activities for making

EDPs successful. Stimulating activities comprise entrepreneurial education,

publicity of entrepreneurial facilities and motivational training. Support activities

include registration, funds mobilization, license, tax relief and incentives.

Sustaining activities comprise of expansion, diversification, modernization and

quality control.

2. Model based EDPs: The agency undertaking an EDP is expected to have an in-

depth study of the demand pattern and availability of local resources. Any

particular model of training which may be very successful in one area may prove

to be a failure in another area.

3. Focus on achievement motivation: In order to create a right impact on potential

entrepreneurs it is essential to develop achievement motivation amongst them

through proper training and conducive environment.

4. Designing of viable projects: A viable project is that project which is feasible in

terms of availability of resources and market potentials. The EDP organizers

should prepare the projects keeping in mind local resources, funding, training

requirements and assessing the feasibility of the same.

5. Selection of trainees: Trainees should be selected after proper screening.

Educated unemployed youth having aptitude for self employment should be

selected for EDPs.

6. Training of trainers: Success of EDPs depends on the trainers. They should be

committed, competent and qualified. Trainers must be fully acquainted with

whatever is latest in their respective fields.



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7. Organizing part time programmes: Part time EDPs can definitely suit those

persons who are working / studying. By providing part time EDPs we can provide

opportunity to those who cannot join any regular EDP.


6. edp programmes - lecture 6

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