Paper: 09, Entrepreneurship Development and Project Management

Module: 13, Entrepreneurial Development Programmes

Prof. S P Bansal
Principal Investigator Vice Chancellor
Maharaja Agrasen University, Baddi

Prof.Yoginder S. Verma
Co-Principal Investigator Pro–Vice Chancellor
Central University of Himachal Pradesh.Kangra.H.P.

Dr. Vishal Kumar

Paper Coordinator School of Management
Maharaja Agrasen University, Baddi

Mr. Chaman Lal

Content Writer School of Business and Management Studies
Central University of Himachal Pradesh.Kangra.H.P.
 Items Description of Module
Subject Name Management
Paper Name Entrepreneurship Development and Project Management
Module Title Entrepreneurial Development Programmes
Module Id Module no.-13
Pre- Requisites Basic knowledge of Business and Entrepreneurship
Objectives To know about the various types of EDPs and their objectives
Keywords EDPs, Training, Programme, Need achievement, Motivation

QUADRANT-I

Module 13:Entrepreneurial Development Programmes

1. Learning Outcome
2. Introduction
3. Concept of Entrepreneurial Development Programmes (EDPs)
4. Relevance of EDPs
5. Objectives of EDPs
6. EDPs in India: An overview
7. Structure of EDPs
8. Stages/Phases of EDPs
9. Challenges for EDPs
10. Myths about Entrepreneurial Development Programmes (EDPs)
11. Summary

In the earlier modules, you have studied about the basics of entrepreneurship, various types of
entrepreneurs & entrepreneurship, characteristics of successful entrepreneurs, relevance of
entrepreneurship in the development of an economy, and factors affecting entrepreneurship. In this
module, you will learn about Entrepreneurial Development Programmes (EDPs), its needs and
objectives. You will further understand the role and relevance of EDPs in the growth of
entrepreneurship and development of an entrepreneur.

1. 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. Introduction
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.