UNIT 4

Entrepreneurship Development Program

 Entrepreneurship Development Programme (EDP) is a programme that 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.
 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.

1. Objectives of EDP
The objective of this programme is to motivate an individual to choose entrepreneurship as a
career and to prepare the person to exploit the market opportunities for their own business
successfully. These objectives can be set both on a 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.
 2. Roles of EDP
An Entrepreneurship Development Programme primarily plays four roles to help an
individual to become an entrepreneur. They are:

Supportive Role: It helps in the following ways:

1. registration of the business
2. procurement of fund
3. Incubation support
4. Team building and team development support
5. Mentorship and guidance from industry experts

Sustaining Role: It aims at providing an effective safeguard to businesses to sustain against

the cut-throat market competition. This includes:
1. help in modernization, expansion, and diversification
2. additional financing for further development
3. Global Networking Opportunities
4. creating new marketing processes
5. 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:
1. identifying entrepreneurial qualities in practicality
2. creating employment opportunities in micro, small, and medium industries on an
immediate basis
3. arresting concentration of industries by supporting regional development in a balanced
manner
4. focusing on the equal distribution of income and wealth of the nation
5. channelizing the latent resources for building an enterprise

3. 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.
4. It develops the spirit of social responsibility by spreading social consciousness and
awareness about new ventures, new technology, managerial skill, uninterrupted supply of
goods or services in society.
5. There should be an improvement in the mobility of entrepreneurs by providing training to
new entrepreneurs and after that acquiring employment inside the area or outside the area.
6. There should be assistance in the 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.

4. 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 opportunities
and exploring & exploiting the opportunities. They lead in organizing various factors of
production by putting them into productivity through establishing new entrepreneurs.
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)

5. Role of government in organising EDP

EDPs are otherwise known as the Human Resource Development Programmes. They deal
basically with human motivation, skills, competencies, creativity, social and economic
risks and investment of financial and physical resources of the state. Therefore, the role of
government in organizing EDPs is considered significant in a country like India. It requires
the conversion of surplus labour force into real entrepreneurs to tackle the problems of
unemployment and poverty by means of the EDP mechanism. For organizing EDPs on
sustained manner, the Union and State governments have undertaken the following
activities.

After independence of our country the Government of India decided to promote

entrepreneurial activity through various incentives in both industrially backward and rural
areas, The thrust of these programmes was to provide, technological, financial, market and
morale support to the potential entrepreneurs, who can act as a catalytic agents of change and
development. There are vari0US agencies and institutions engaged in
entrepreneurial development activity and these are as under. 

INSTITUTE ESTABLISHED BY CENTRAL GOVERNMENT

(1) National Institute For Entrepreneurship and Small Business Development

(NIESBD) : The Delhi-based National Institute for Entrepreneurship and Small Business
Development (NIESBD) was established by the Government of India, as an apex body for
coordinating and overseeing the activities of various institutions and agencies engaged in
entrepreneurship development particularly in the area of small industry and small  business.
The Institute aims at creating an environment which is conductive to emergence of
entrepreneurship and in developing favourable response from the people •to support
potential entrepreneurs. The major activities of the Institute include (i) evolving model syllabi
for training various target group, (ii) providing effective training strategies, (iii) methodology,
manuals and tools, (iv) facilitating and supporting Centre/State Governments and
other agencies in executing programmes of entrepreneurship and small business
development, (v) maximizing benefit and accelerating the process of entrepreneurship
development, (vi) conducting programmes for motivators, trainers and entrepreneurs which
are commonly not undertaken by other agencies and (vii) organizing those activities that help
in developing entrepreneurial culture in the society.

(2) Entrepreneurship Development Institute of India It is a national institute set up by

Public Financial (EDII) : Institutions and Government of Gujarat, in 1983. The EDII has
been engaged in training people for self-employment  for the last twenty four years and has
done pioneering work in this field. The EDP Department conducts regular training
courses with the objective of enabling people to become self employed. The courses are of 3-
4 months duration and cater mostly to the needs of village youth and school dropouts. The
department imparts not only training but also enables the trainees to become self-employed
and endeavour to make their business venture a success. To achieve this PUrpose, the Dept. is
engaged in various activities such as establishing contacts with the   banks for obtaining loan,
helping trainees to draw up a project proposal, and monitoring the programmes of
extrainees trainees.   

(3) Small Industries Development Organisation (SIDO) :  This organisation was

established in 1954 by the Central Government. SIDO has designed EDPs to identify persons
with entrepreneurial abilities. The training programmes are designed for various groups like
educated unemployed, women, weaker sections, rural artisans, physically handicapped,
technocrats, entrepreneurs under self-employment scheme, etc. At present SIDO has 16
specialised institutes responsible for training, research and development of product design
and processes. It has designed programmes for various types of training. It offers following
courses : 

(i) Appreciation course in industrial management.

(ii) Specialised courses in such areas as production, marketing, materials, finance and export
management.

(iii) Ad hoc incentive courses on subjects like inspection and quality control, work study,
salesmanship etc.

(4) National Entrepreneurship Development Board The Department has constituted the

National (NEDB) . Entrepreneurship Development Board under the Chairmanship of the
Union Minister of State which acts as an apex body for entrepreneurship development. It
devises and recommends to the Government schemes for promotion of entrepreneurship for
encouraging self-employment in small scale industries and small business. The Board also
recommends suitable facilities and incentives for entrepreneurship training. 
(5) Indian Investment Centre (IIC) : This organisation is set up by the Government of India
to promote joint  entures and to conduct EDPs. For this purpose, it has set up an
Entrepreneurial Guidance Bureau to guide entrepreneurs in establishment of new ventures.
IIC performs the following functions : 

(i) identification and selection of potential entrepreneurs; to perform skills 

(ii) developing entrepreneurial entrepreneurialjob;

(iii) increasingtheirmanagerial knowledge; and

(iv) helpingthem to start their own projects.

(6) Technical Consultancy Organisations (TCOS)  :- Access to high quality consultancy

services improves the operational efficiency of entrepreneurs. All India financial institutions
have set  up 17 technical consultancy organizations to provide industrial  consultancy and
training to entrepreneurs. These organizations provide a comprehensive package of services
to small entrepreneurs. The main functions ofTCOs are as follows : 

(i) Identification of industrial potentials; 

(ii) Conduct pre-investment studies and prepare project reports and feasibility studies;

(iii) Undertake techno-economic surveys;

(iv) Undertake market research; and

(v) Identify potential entrepreneurs and provide them with technical and managerial
assistance.

(7) National Institute for Small Industry Extension and Training (NISIET) : It was
established in 1960 under the direction of SIDO to provide extension and training servicestlt
imparts training to entrepreneurs, managers, various  departments of State Governments,
financial institutions and other agencies. It organises about 45 national and 15 international
level programmes every year. It is a nodal agency. It is resource and information center
for small units. It undertakes research and consultancy for small industry development. 

(8) Xavier Institute of Social Services, Ranchi : This institute provides training to rural
entrepreneurs. It functions in close cooperation with social organisation. It assists the trainees
in drafting project proposals and on obtaining the  required finance. It offers a six month
programme to tribals for developing the entrepreneurial skills. The programme consists of :
(i) identification and selection of candidates.

(ii) motivation and managerial training.

(iii) training of practical skills.

(iv) market survey and preparation of project report.

CRITICAL EVALUATION OF EDPs IN INDIA

Inspite of increase in EDP activity, it is observed that by and large efforts have remained
limited to certain areas and the approach in general has been somewhat haphazard.