Entrepreneurship

Module 1:
Entrepreneurship: definition, requirements to be an entrepreneur, entrepreneur
and intrapreneur, entrepreneur and manager, growth of entrepreneurship in India,
women entrepreneurship, rural and urban entrepreneurship.
Entrepreneurial Motivation: motivating factors, motivation theories-Maslow’s
need hierarchy theory, McClelland’s acquired need theory, government’s policy
actions towards entrepreneurial motivation, entrepreneurship development
programmes.
 Entrepreneur -Person

 Entrepreneurship -Process

 Enterprise -Outcome
The term 'Entrepreneur' -French word 'Entreprendre’
(meaning to undertake certain activities)

1) Produces a product/service
2) Sells & market the product/service
3) Bear overheads like :-
*Pays rent of Land and building
*wages to labor
*interest on capital
*later generate profit
 Working Definition
 An entrepreneur is a person who combines various factors
of production, processes raw material, converts the raw
material into a finished product and creates utility and sells
the produce in the market to earn profit.
 The person who sets up his own business, take its
responsibilities & financial risk to make profit.
Entrepreneur
A person who is able to identify business opportunities
and implement actions to maximize on the
opportunities.
 An entrepreneur initiates enterprise creation,
undertakes risks, and manages resources to establish and
operate a business enterprise that is capable of self-
sustainance.
 Definition of Entrepreneur: According to a French
economist, J. B. Say, an entrepreneur is a person who
shifts economic resources out of an area of lower
productivity into an area of higher productivity and
greater yield.
Question
“Entrepreneurs are made or born.” Give your
views
Intrapreneur
Intrapreneurs are individuals who are tasked with creating
new and innovative products within an already-established
business. Backed by a company's available resources,
intrapreneurs develop open-ended ideas and turn them
into real-world products and services.
What is an intrapreneur vs entrepreneur?
The main difference between an entrepreneur vs.
intrapreneur is that an entrepreneur starts their own
company, whereas an intrapreneur works at a company
that someone else founded. An entrepreneur develops a
concept for a new business, which may include marketing
products and services (or occasionally both).
Definition of Intrapreneur:
This is an employed staff e.g. manager who innovates
for the company and takes risks only on behalf of the
employer.
He is therefore an intra company entrepreneur for
whom the term intrapreneur is coined.
Intrapreneurs are, therefore, the main entrepreneurs
in large companies who innovate and take risks on
behalf of their employer.
These are creative people usually working together as
teams, who function as entrepreneurs within
corporations
KEY TAKEAWAYS
• An intrapreneur works inside a company to develop an
innovative idea or project that will enhance the
company's future.
• The term "intrapreneur" is formed from the two words
"internal" and "entrepreneur.“
• Intrapreneurs are typically highly motivated individuals
who have specific skill sets—as well as leadership
abilities and an innovative vision that others in the
corporation can get behind.
 Requirements
to
be an entrepreneur
1. An eye for opportunity
2. Independence
3. An appetite for hard work
4. Self-confidence
5. Discipline
6. Judgment
7. Ability to accept change
8. Need to achieve
9. Focus on profits
10. Risk-bearing
11. Locus of control
12. Creative and Innovators
13. Leadership
1. An eye for opportunity:
Many entrepreneurs start by finding a need and
quickly satisfying it.
They are always alert to opportunities.
 They are very much quick to see and grab
opportunities.
They plan intellectually and anticipate carefully how
to achieve their goals in realizing an opportunity.
2. Independence:
Even though most entrepreneurs know how to work
within the framework for the sake of profits, they
enjoy being their own boss.
They like doing things their own way.
The characteristics of independence and the sense of
determination are the drives that make an
entrepreneur start their own business.
In a way, their own business fulfills their need for
independence
3. An appetite for hard work:
Most entrepreneurs start out working long, hard,
hours with little play.
Entrepreneurs are always at work even when other
people have stopped.
They are persistent and strongly believe that working
hard will help them attain their goals.
 They hence focus on the end result.
4. Self-confidence:
Entrepreneurs must demonstrate extreme self
confidence in order to cope with all the risks of
operating their own business.
 Most successful entrepreneurs are confident of
achieving realistic and challenging goals.
They get into business or industry with a high level of
self-confidence.
 This, couples with a sense of effectiveness ultimately
contribute to the success of the venture
5. Discipline:
Successful entrepreneurs resist the temptation to do
what is unimportant or the easiest but have the ability
to think through what is the most essential.
Entrepreneurs are economically efficient, do not like
to waste time and they like to see work completed.
They use discipline as a guide to their destination
6. Judgment:
Successful entrepreneurs have the ability to think
quickly and make a wise decision.
This is possible because they have a plan, they have an
economic goal, they know what they want and they
know what they can do.
Entrepreneurs are unaffected by personal likes and
dislikes.
They stand beyond these types of prejudices as they
are realistic in their approach.
At the time of their need they select experts rather
than friends and relatives to assist them.
 They usually avoid emotional and sensitive attitude
towards their business or problem.
 7. Ability to accept change:
Change occurs frequently when you own your own
business, the entrepreneur thrives on changes and
their business grow.
An entrepreneur may need to change his/her plans
in order to help the business grow.
Entrepreneurs look at many solutions to their
problems.
They realize that other people may know how to do
something better.
Entrepreneurs can choose the best way to do
something, even if it is different from how they want
to do it.
8. Need to achieve:
Although they keep an “eye” on profit, this is often
secondary to the drive toward personal success.
Entrepreneurs have strong desire to achieve higher
goals.
Their inner self motivates their behavior towards high
achievement.
To an entrepreneur, winning is achievement.
9. Focus on profits:
Successful entrepreneurs always have the profit
margin in sight and know that their business success
is measured by profits.
10. Risk-bearing:
Entrepreneurs are the persons who take decisions
under uncertainty and thus they are willing to take
risk, but they never gamble with the results.
They choose moderate risk rather than play wild
gamble.
They, therefore, undertake calculated risk which is
high enough to be exciting, but with a fairly reasonable
chance to win.
11. Locus of control:
Entrepreneurs believe in their own ability to control
the consequences of their endeavor by influencing
their socio-economic environment rather than leave
everything to luck.
They strongly believe that they can govern and
shape their own destiny.
12. Creative and Innovators:
Successful entrepreneurs are innovators.
They constantly put their efforts in introducing new
products, new method of production, opening
new markets and reorganizing the enterprise.
They always try not to be satisfied with conventional
and routine way of doing things, but always think of
how they can do them in a better way.
13. Leadership:
Entrepreneurs should possess the quality of
leadership.
Leadership is the ability to exert interpersonal
influence by means of communication towards
the achievement of goals.
 Entrepreneurs as leaders should provide the
necessary spark of motivation by guiding, inspiring,
assisting and directing the members of the group for
achievement of unity of action, efforts and purpose.
According to George R. Terry: “Leadership is the
activity of influencing people to strive willingly for
group objectives”.
Contd
Thus, entrepreneur, as the leader of the group, can
ensure high performance by creating a well-to-do
environment among others.
They must have the capability to arrive at prompt and
correct direction and win the confidence of their
subordinates.
 Entrepreneur & manager
An entrepreneur is a person with the skills, ideas and
courage to take risks to pursue a business idea.
A manager is a person who manages the functions
and operations of an organization.
The significant difference between an entrepreneur
and a manager is their role in an organization.
An entrepreneur owns a company, while a manager
is the company employee.
 An entrepreneur is a risk taker who takes financial
risks for the enterprise.
A manager does not take risks and tries to
maintain the status of the enterprise.
Entrepreneurial Motivation:
motivating factors
Entrepreneurs must be self-motivated to convince
investors of the practicality of their ideas.
The desire and motivation to keep focusing on the tasks
and to work hard are the keys to becoming successful
entrepreneurs.
Types of entrepreneurial motivation
There are several types of entrepreneurial motivation.
These may vary depending on the type of entrepreneur
and their motive. These may also be classified as
financial and non-financial motivations.
The most common motivations are:
Monetary gains
More freedom
More authority
Creative control
• Monetary gains: every business venture, whether it is
entrepreneurial or conventional, has the ultimate motive of
generating profit. Entrepreneurs also want maximum gains in
terms of money, but they get more satisfaction in the
process. Firstly, they are working for themselves, which is
quite a big motivation in itself. Secondly, they believe that
while making money, they are also offering innovative
business solutions to the industry.
• More freedom: entrepreneurial systems grant more freedom
than conventional ones. Entrepreneurs want to have a working
structure that ensures more flexibility. They have more
freedom to make choices that they think will benefit the
venture in the long run.
• More authority: entrepreneurs have more authority,
which also makes them self-accountable. Since they have
these business ideas, they want to be involved in every
aspect of it. From product development to ensuring a
sustainable customer base, entrepreneurs have the final
say in each of these decisions.
• Creative control is a motivation that keeps entrepreneurs
going and helps them achieve their goals. Every creative
decision must be aligned with the vision of
entrepreneurs. For instance, a product is launched to
target a younger customer base. To attract a particular
base, every creative decision must be taken to achieve this
goal, from product design to marketing strategies.
Entrepreneurial Motivating Factors
Most of the researchers have classified all the factors
motivating entrepreneurs into internal and external
factors as follows:
Internal Factors include
Desire to do something new.
Become independent.
Achieve what one wants to have in life.
Be recognized for one’s contribution.
One’s educational background.
One’s occupational background and experience in the
relevant field.
External Factors include:
Government assistance and support.
Availability of labour and raw material.
Encouragement from big business houses.
Promising demand for the product.
Maslow’s Hierarchy of Needs Theory
Maslow’s Hierarchy of Needs Theory is regarded as
one of the most popular theories on motivation.
 It is a theory of psychology that explains that humans
are highly motivated in order to fulfill their needs,
which is based on hierarchical order.
It was first introduced by Abraham Maslow in 1943 for
his paper titled Theory of Motivation and is based on a
hierarchy of needs, which starts with the most basic
needs and subsequently moves on to higher
levels.
The main goal of this need hierarchy theory is to
attain the highest position or the last of the needs, i.e.
need for self actualization.
Levels of Hierarchy
The levels of hierarchy in Maslow’s need hierarchy
theory appear in the shape of a pyramid, where the
most basic need is placed at the bottom while the
most advanced level of hierarchy is at the top of
the pyramid.
Maslow was of the view that a person can only move
to the subsequent level only after fulfilling the
needs of the current level.
The needs at the bottom of the pyramid are those
which are very basic and the most complex needs
are placed on the top of the pyramid
McClelland’s acquired need
theory
Acquired needs theory, also known as McClelland's
Needs Theory, Three-Needs theory, Achievement
Motivation Theory, or Learned Needs theory, is a
theory that is based on the notion that people's
needs are acquired as they live their lives or
through experiences of life.
Contd
Acquired Needs Theory was proposed by a
psychologist David McClelland.
He proposed that an individual's needs are a result of
experience acquired through life.
Leaders can motivate subordinates by understanding
the individual needs and finding ways to foster
acquiring those needs.
According to McClellan, there are only three needs,
achievement,
affiliation, and
power.
 Contd
McClelland’s Acquired Needs Motivation Theory says
that humans have three types of emotional needs:
achievement, power and affiliation.
Individuals can have any mix of these needs.
Their motivations and behaviors are shaped by the
strength and blend of their specific needs.
Acquired Needs Theory
Classifies Needs in 3 Types
Need for achievement (nAch).
Need for power (nPow).
Need for affiliation (nAfl).
1. Need for Achievement (nAch)
The drive to excel, to achieve a set of standards, to
strive to succeed.
Some people have a compelling drive to succeed.
They are striving for personal achievement rather than
the rewards of success
 This drive is the achievement need (nAch).
McClelland found that high achievers differentiate
themselves from others by their desire to do
things better
Features of people with Need for achievement
(nAch);
They seek personal responsibility for finding
solutions to problems.
They want to receive rapid feedback on their
performance so they can tell easily whether they
are improving or not.
They can set moderately challenging goals. High
achievers are not gamblers(risk takers); they dislike
succeeding by chance.
2. Need for Power (nPow)
The need to make others behave in a way that they
would not have behaved otherwise.
Need for power (nPow) features are;
The desire to have an impact, to be influential,
and to control others.
Individuals high in nPow enjoy being “in charge.”
Strive for influence over others.
Prefer to be placed into competitive and status-
oriented situations.
Tend to be more concerned with prestige and
gaining influence over others than with effective
performance.
3. Need for Affiliation (nAfl)
The desire for friendly and close interpersonal
relationships.
Features of Need for affiliation (nAfl) are;
This need has received the least attention from
researchers.
Individuals with a high affiliation motive strive for
friendship.
Prefer cooperative situations rather than
competitive ones.
Desire relationships involving a high degree of
mutual understanding.
Entrepreneurship and its
evolution in India
The growth and transformation of
entrepreneurship in India began in the
early times when the ‘barter system’ was
a common means of exchange.

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Medieval Age
India has one of the oldest and most
civilized business histories.
During the Harappan civilizations around
2700 BC, there was an internal and
external trade culture. Also, due to this,
most foreign countries recognize Indian
entrepreneurial skills.
Moreover, the increase in trade occurred
during the era of Mughal rule. The
popularity of Indian products, arts, crafts,
Vedic tools, foods, and much more
attracted attention from different parts of
the world.
The Arab mainland, western colonial
At the same time, different countries like
UK, France and Portugal expanded their
colonies in different parts of the world.
However, a significant entrepreneurial
change occurred when the East India
Company started its business from the
Bay of Bengal and later occupied parts of
Bengal. It indirectly linked the entire
Indian state into one business ecosystem.
There were some major downsides to the
colonial mindset of England. However, it
also played some good aspects in
developing entrepreneurship in India.
Modern and pre-
independence
This was the era of industrialization in
India, where some of India’s best
entrepreneurs rise.
The major events changed the face of
entrepreneurship in India.
• The first cotton textile mill was
revolutionized in 1854 by an Indian
entrepreneur, Kawasji Dover. It was one of
India’s boldest steps in the modern
development of entrepreneurship
development.
• Jamsetji Tata founded the company Tata
Group in the year 1868. With the
foundation of the Tata Group, he has
created a bar for entrepreneurship
development in India.
• 1874 Cotton Mill by JRD Tata, TISCO by
Dorabji Tata, 1932 Tata Airlines, Tata Steel
Plant, and more were high-rate businesses
in India. At the same time, it has also
played a major role in various
independence initiatives.
Post-independence
Entrepreneurship in India, along with the
national economy, was ground-breaking
after independence. There was not much
left in the Indian economy at that time.
However, the government took major steps
to support India’s development which is as
follows.
• Prime Minister Nehru adopted the
economic structure line of the Soviet
Union.
• Similarly, this policy liberalized the bar
and standards set by the British
Economic reforms were carried out in the
initial phase of governance. Also,
prominent economists adopted the
Mahalanobis model (The strategy
emphasised the rapid development of
heavy industry so as to build an industrial
base of the economy), which primarily
aims to support entrepreneurs.
As all these influential policies were in
operation, few major industries were
established as opposed to the traditional
textile and natural resource industries.
But, economic policies were not giving
much support to the entrepreneurs, due to
which there was rough growth. However,
the transformation of entrepreneurship
began in 1990.
Transformation of
Entrepreneurship in
India
The major transformation of
entrepreneurship in India began with the
‘Economic Policy Reform’ in 1991.
The New Economic Policy of 1991 was a
huge turning point. This policy has
included three major aspects, which are
as follows.
Aspects Role

Liberalization Providing some provisions in different

parts of the industry
It boosts the private sector, including
banks and the stock market
Privatization Disinvestment of Public Firms to
reduce the burden
Promote the national entrepreneurs for
good business
Globalization Welcoming FDIs (Foreign direct
investment), and FPI(Foreign Portfolio
Investment) Creating SEZ and Economic
Corridor for foreign companies

Foreign Portfolio Investment (FPI) involves an investor buying foreign financial

assets. It involves an array of financial assets like fixed deposits, stocks, and mutual
Some of the benefits that this policy
replaced are as follows.
• It gives a green signal to private banks
and non-Indian banks to operate without
any disruption. It was the only reason for
the huge circulation of money in the
economy. And finally, it increased loans
and supported new entrepreneurs.
• Due to the policy, foreign companies can
find the best option to invest their money.
This boosted huge FDI and FPI in India and
helped in understanding new and
advanced technology.
• Rise of India as a tech hub in the startup
world where Indian tech people were the
best choice for US, UK, France and other
Aftermath
The rise of Infosys, TCS, Wipro, HCL, and
more. Also, in automobiles, Maruti, Tata,
Mahindra, Bajaj, and more were emerging.
But there is a limitation to this policy as it
favors a lot of big companies and does not
give a chance to a small and new startup to
take off.
Foreign companies can set up wholly-owned
subsidiaries by making 100% FDI in India
subject to the provisions of the Reserve Bank
of India (RBI), Foreign Exchange Management
Act, 1999 and the Act.
Growth of Startups
In 2016, startups started to grow. There are
some key aspects of this startup initiative
whose main objective is to provide and lend
support for entrepreneurship development
in India.
Some of the key aspects of the 2016
Startup Initiative are as follows.
• The MSME (Ministry of Micro, Small &
Medium Enterprises) ministry swung into
action by supporting small and micro
startups and firms.
• The Make in India initiative allows
entrepreneurship to live in India and work
on its growth.
• The NITI Aayog (National Institution for
Transforming India) scheme was also
launched. Its objective is to develop skills
and provide training to become a skilled
resource.
New innovators and potential
entrepreneurs are helping their
businesses in the Indian market daily. If
The current Indian entrepreneurship world
is becoming a highly favorable market for
any company to invest in. Also, most
Indian companies have marked their
potential in international trade and shown
the growth of entrepreneurship in India.
However, among all other top start-ups
and companies, the IT sector of India is on
the boom. It alone handles a large part of
the development of the entrepreneur
representing India.
Indirect Effects of
Entrepreneurship on the
Economy
The following are some indirect effects:
Money Flow in the Market
 The flow of money in an economy is as
important. The more it flows, the healthier the
economy. Enterprises help in the flow of money
in the market by creating employment and
increasing production and consumption.
Infrastructural Development
 Start-ups thrive in the ecosystem. When an
ecosystem is formed in a particular city, there is
an increase in the infrastructure of the city or
particular area. For example, startups growing
in Bangalore, Hyderabad and Delhi. These cities
were developed strategically to create a better
environment to support start-ups to meet the
Indirect Employment
Direct employment is the employment
created by entrepreneurship within the
business. But it is not the only employment.
Entrepreneurship also creates a lot of
indirect jobs. For example, in an area like
Powai in Mumbai, infrastructural
development creates a need for hotels,
restaurants, transportation, etc.
Increase in Related Services
When entrepreneurs grow and expand their
operations, it requires many services. These
services may be outside their core
expertise. For example, an ed-tech start-up
would require several services like human
resources, marketing, consulting, legal
services, etc. Therefore, when the number
Importance of
Entrepreneurship to the
Economy of India
Entrepreneurship is important because it
improves the standard of living and
generate capital
Economic Development by Entrepreneurs
It shows the importance of
entrepreneurship in the best possible way.
New products and services produced by
entrepreneurs can fuel the economic
development of the companies concerned.
This is also true for areas that need to
support new business.
For example, the boom of IT industries
during the 1990s. The industry grew rapidly
and it helped many other businesses.
Contribution of Entrepreneurs to National
Profit
 Entrepreneurial projects help create fresh
wealth. Established companies may remain
confined to existing markets and reach a
threshold in terms of profits. Better goods,
services or technology from businesses enable
the development of new markets and the
creation of new wealth.
 Entrepreneurial projects help create new
capital. Better goods, services or technology
from businesses enable the development of new
markets and the creation of new wealth. Also,
higher income in the form of increased jobs and
higher tax revenue and expenditure leads to
better national income.

Social Change by Entrepreneurs
This importance of entrepreneurship breaks
with tradition and reduces reliance on
outdated systems by providing unique
products and services. This will improve the
quality of life. Such as the smartphone
industry continues to grow, tech
entrepreneurship will have a huge, long-
term impact on the planet.
Need of
Entrepreneurship for
Economic Growth
Entrepreneurship is an instrument of
social change and economic development.
Entrepreneurs firmly believe that it is
entrepreneurship that will beat and
transform the market with new-age
technologies.
The following factors define why
entrepreneurship is needed in economic
development.
1. Innovation
Innovation is the primary element of
entrepreneurship. New-age entrepreneurs
are passionate about innovations in
technology and business models. Some of
the primary examples of this are Airbnb,
Ola, etc. These companies not only bring
innovation in technology but also created
unique business models that never existed
before. It helps in making your life much
easier.
Policymakers of an economy consider
innovation while creating a road map for
the country’s economic development.
Innovation creates market ease and new
opportunities and encourages
2. Employment
Employment is an important factor in the
development of any economy. A low
employment rate indicates the poor health
of an economy. An economy needs to
generate more jobs and wage
opportunities to accelerate growth. It
plays an important role in job creation.
The bigger the enterprise, the more job
and salary opportunities are created.
Therefore, the need for entrepreneurship
in India becomes important for economic
development.
3. Living standard
The standard of living is, in a way, directly
proportional to employment. Because
employment pays people, they spend their
money on the purchase of goods and
services. Therefore, the consumption rate
increases in an economy, and so does the
production rate. This eventually raises the
basic wage, and people become able to
consume higher quality goods and
services.
If entrepreneurship in an economy is
sector agnostic, it will go a long way in
raising the standard of living of the people.
Therefore, the need for entrepreneurship
4. Social change
Social entrepreneurship is a modern term
that encourages entrepreneurs to bring
about change in society. For example,
crowdfunding companies are usually
involved in social work such as raising
funds for NGOs. Their businesses bring
positive changes to society. They not only
help the needy but also spread social
awareness.
A prosperous society facilitates the path
of community development. Therefore, the
need for entrepreneurship in India is
important as it brings together social
5. Research and Development
Research and development are the progress
of innovation. When an entrepreneur comes up
with innovative ideas and builds a business
from them, they need to continuously develop
their innovation to keep up with the market
and improve the user experience. As the
enterprise grows, they spend more resources
on research and development, which leads to
technological progress.
Technological advancement not only supports
a particular company but the entire nation. It
contributes to the growth of science and
technology. The economy further utilizes
these developments to implement in various
sectors to make progress. Therefore, the need
for entrepreneurship in India is necessary for
Entrepreneurship Development
Programmes(EDP)
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.
The concept of entrepreneurship development
programme involves equipping a person with the
required skills and knowledge needed for starting and
running the enterprise.
Objectives of EDP
i. Develop and strengthen the entrepreneurial quality,
i.e. motivation or need for achievement.
ii. Analyse environmental set up relating to small
industry and small business.
iii. Select the product.
iv. Formulate proposal for the product.
v. Understand the process and procedure involved in
setting up a small enterprise
Objectives of EDP
vi. Know the sources of help and support available for
starting a small scale industry.
vii. Acquire the necessary managerial skills required to
run a small-scale industry.
viii. Know the pros and cons in becoming an
entrepreneur.
ix. Appreciate the needed entrepreneurial discipline.
The entrepreneurship development
programme normally runs through three
important phases :
Initial Phase :
This phase includes the activities and the
preparations required to launch the training
programme.
The main activities of this phase are:
(a) Arrangement of Infrastructure for training
(b) Preparation of training syllabus and application
(c) Tie up of guest faculty
(d) Designing tools and techniques for selecting the trainees
(e) Formation of selection committee
(f) Publicity campaign for the programme
Training Phase :
• In this phase the training programme is implemented
to develop motivation and skills among the
participants.
• The objective of this phase is to bring desirable
changes in the behaviour of the trainees.
• The trainers have to judge how much, and how far the
trainees have moved in their entrepreneurial pursuits
Post-Training or Follow-up Phase
• Under this phase it is assessed that how far the
objectives of the programme have been achieved.
• Monitoring and follow up reveals drawbacks in the
earlier phases and suggests guidelines, for framing the
future policy.
• In this phase infrastructural support, counselling and
assistance in establishing new enterprise and in
developing the existing units can also be reviewed.
• Evaluation and feedback
Problems faced by EDPs
1) Low motivation level of trainers as well as trainee
during the training.
2) Lack of commitment, dedication, determination,
and sincerity in conduct of EDPs and low level of
involvement and lack of active participation of
trainees.
3) Difficulty in Pre-Training Phase: 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..
Problems faced by EDPs
4) Time Period of EDPs: The duration period of these
EDPs varies between 4 to 6 months, which is too
short a period to instil 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
Problems faced by EDPs
6) Wrong Selection Procedure: Because of competition,
the institutions not follow uniform method for the
selection of trainees or prospective entrepreneurs.
7) Absence of Competent Management or Faculty:
Experience revealed that entrepreneurial failures are
mostly due to incompetence faculty and
management.
8) Lack of monitoring and proper evaluation of feedback.
Problems faced by EDPs
9) Lack of after training assessment of prospective
entrepreneurs and non-consideration of entrepreneurs’
feedback.
10) 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.
Entrepreneurship development
programmes in India
Entrepreneurship Development Programmes (EDPs) in
India are initiatives designed to nurture and enhance
entrepreneurial abilities, providing participants with the
skills, knowledge, and support needed to establish and
grow successful businesses.
These entrepreneur development programs are often
organized in Polytechnics, technical institutions, or
business schools, focusing on the youth and other
business builders looking to set up industrial or self-
employed ventures.
Entrepreneurship development programs (EDPs) in India
have been initiated by institutions such as SIET (State
Institute of Education Technology), Small Industry
Development Organization (SIDO), Small Industry
Services Institute (SISI), Industrial Development Bank
of India (IDBI), and Technical Consultancy
Organizations (TCOs).
Recognizing the pivotal role of entrepreneurial skills in
business success, the Indian government has actively
promoted and supported various programs to foster and
nurture entrepreneurial talent. Here are some
entrepreneurial development programmes in India:
1. Industrial Motivation Campaigns (IMCs): These are two-day
events aimed at identifying and motivating individuals inclined
towards self-employment or starting their own business. The
focus is encouraging attendees to establish a Mid-Sized
Enterprise (MSE) and providing relevant information on
available support and sanctions.
2. Entrepreneurship Awareness Programmes (EAPs): Conducted
multiple times throughout the year, EAPs aim to inform and
inspire the youth about entrepreneurship. They focus on
imparting knowledge about various facets of industrial activity
essential for creating micro and small enterprises. The
curriculum of EAPs covers a range of skills, including project
profile preparation, marketing techniques, product/service
pricing, export opportunities, infrastructure facilities,
financial institutions, cash flow, accounting, and product
costing.
3. Entrepreneurship-cum-Skill Development Programme (E-
SDP): E-SDPs are intensive training programs designed to
enhance the technical skills of potential entrepreneurs, the
existing workforce, and new workers and technicians of MSEs.
These programs are tailored to cater to the skill development
needs of socially disadvantaged groups (SC/ST, PH, and
women) and are organized across various regions, including
less developed areas.
4. Management Development Programmes (MDPs): MDPs
focus on enhancing the decision-making capabilities of
entrepreneurs to boost productivity, efficiency, and
profitability. These short-duration programs cover various
managerial functions and are tailored to industry needs and
participant requirements (can be customised to meet the unique
needs of the attendees)
References
 https://www.cheggindia.com/earn-online/entrepreneurship-in-india/
 https://ebooks.inflibnet.ac.in/mgmtp09/chapter/entrepreneurship-an
d-its-evolution-in-india/
 https://www.futurize.studio/blog/entrepreneurship-in-india#:~:text=E
ntrepreneurship%20development%20in%20India%20took,a%20vast%
20reservoir%20of%20talent
 https://ebooks.inflibnet.ac.in/mgmtp09/chapter/entrepreneurial-deve
lopment-programmes/#:~:text=Challenges%20for%20Entrepreneurial
%20Development%20Programmes%20(EDPs)&text=the%20desired%2
0results%3A-,i.,of%20active%20participation%20of%20trainees
.
 https://www.atriauniversity.edu.in/Everything-you-need-to-know-abo
ut-entrepreneurship-development-programmes/