Entrepreneurial development Program (EDP) Concept

It is rightly remarked that entrepreneurs are not necessarily born, they can also be developed through education, training and experience. Though entrepreneurial talent exists in every society but socio-economic environment hinders the emergence of entrepreneurial talent. Entrepreneurship requires an environment in which entrepreneur can learn and discharge his assigned responsibility in an efficient manner and change his attitude.

Entrepreneurial development seeks to provide constructive direction for those who choose a career path different from traditional roles. The process of entrepreneurial development focuses on training, education, reorientation and creation of conductive and healthy environment for the growth of enterprise.

Entrepreneurial development is an act of encouraging people for entrepreneurial career and making them capable of exploiting business opportunities. It is not simply a training task. It is the act of motivating and developing skills of potential entrepreneur and helping them in developing their own ventures.

Entrepreneurial development is thus an organised and systematic development. It is regarded as a tool of industrialization and a solution to 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 enterprises.

The trained entrepreneur can guide others on how to start their own enterprise and approach various institutions for finance. In fact, trained entrepreneurs become catalysts of developing industry and economic progress. According to Prof. Pareek and Karenina, “Operationally, entrepreneurship development would mean development Of entrepreneurs and promtion of increased flow of individuals to entrepreneurial ranks.

” Entrepreneurial Development Programme (EDP) may be defined as “a programme designed to help an individual in strengthening his entrepreneurial motive and in acquiring skill andcapabilities necessary for playing his entrepreneurial role effectively.”

Nature or characteristics of entrepreneurial development programme

Following are the main characteristics of entrepreneurial development programme: it is an organised and systematic process of enhancing the motivation, knowledge änd skills of the potential entrepreneurs. It is based on the belief that individuals can be developed, their outlook can be changed and their ideas can be converted into action through training. It develops first-generation entrepreneurs who on their own cannot become successful entrepreneurs. It is an endeavour in human resource development. it emphasis on operational rather than academic training. It is regarded as a tool of industrialisation and a solution to unemployment problem. It is catalyst for developing industry and economic programmes.  It is not totally based on training. The whole process  extends much beyond ‘training’. Much of it is personal counselling and support.

Objectives of entrepreneurial development

Following are the main objectives of entrepreneurial development programmes:

(1) Promotion of Cottage and Small-Scale Industries: The main objective of EDP is to provide, in the rural areas, special programmes designed to stimulate new ventures and encourage expansion of existing activities of small and medium scale industries.

(2) Generation of Employment Opportunities: EDP aims to encourage self-employment among potential entrepreneurs. It generates employment and self-employment opportunities in the processing of indigenous raw materials for local consumption and for exports.

(3) Promotion of First-Generation Businessmen: One of the main objectives of EDP is to encourage first generation entrepreneurs who do not have any business background.

(4) TO Create Awareness about Availability of the Resources: It, aims to front, on wrongs about the available resources„ such raw material, technology etc. in the prospective entrepreneurs.

(5) To import Training: The main objective of EDP is to in donut and train potential entrepreneurs. It imparts training in mentoring understanding and skills. It also provides post training assistance and monitoring facilities.

(6) To Develop a Broad Vision: One of the objectives of EDP is to develop and broad vision to see the business as a whole and to integrate his functions with it.

(7) To Remove Doubts of Entrepreneurs and to give solution in to their Problems: New entrepreneurs have to face many problems in the establishment and operation of business. To remove doubts of entrepreneurs and to give solution to their problem is one of the main aims of EDP. It helps the entrepreneurs to set or reset the objectives of their business and work individually and along with his group for their realisation.

(8) To create a successful entrepreneur: One of the main aims of EDP is to create the successful entrepreneurs. It provides constructive direction for those who choose a career path different from traditional roles.

(9) Creation of Conductive and healthy environment for the growth of entrepreneurs: The process of entrepreneurial development focuses on training, education, reorientation and creation of conductive and healthy environment for the growth of enterprises.

Role/importance of entrepreneurial development programmes

EDPs have great role and relevance in increasing the supply of new entrepreneurs to accelerate the process of industrialization. It is widely accepted that persons interested to become entrepreneur will be greatly helped if appropriate training and development programmes are made available to them.  Need/importance of EDPs can be judged on the basis of following points.

(1) Eliminating Poverty and Unemployment: Most of the under developed countries are confronted with the chronic problem of unemployment. EDPs can help these unemployed people in getting self-employment and at the same time generating employment opportunities for others. Various programs initiated by the government like NREP (National Rural Employment Programme, IRDP (Integrated Rural Development Programme etc. are aimed at tackling unemployment problem. 

(2) Balanced Regional Development: Successful EDPs help in accelerating the pace of industrialisation resulting in the reduction of concentration of economic power. Small scale units can be set up in remote areas with little financial resources and it helps in achieving balanced regional development. EDPs aimed at promoting small scale units are more useful for balanced regional development than medium and large-scale units.

(3) Economic Growth: The relevance of EDPs can be clearly understood by their role in the economic development of developing countries like India. Such programmes create many entrepreneurs who are able to establish small and micro enterprises which require less investment in funds. It increases new investment and bring innovations. All these activities in turn stimulate the economic growth.

(4) Optimum use of Locally Available Resources: The EDPs can help in harnessing locally available resources by training and educating the entrepreneurs. Since abundant resources are available locally, proper use of these resources will help in creating a healthy base for sound economic growth and rapid industrialisation. EDPB also help in minimising excessive scraps, defective output and wastage in the production process.

(5) Promote Innovations: Entrepreneurial Development Programmes initiate the people for innovations and creativity. EDPs have become a vital strategy for harnessing the vast untapped human skills, to channelise them into accelerating industrialisation.

(6) Defuses Social Tension: Every youth feels frustrated if he does not get employment after completing his education. The surplus young energies can be diverted to self-employment careers to help the country. This may defuse social tension and unrest among youth.

(7) Development of Entrepreneurship Qualities: Thus, the EDPs are needed to induce achievement motivation and develop entrepreneurial characteristics or competencies among young persons through training with a view to making them successful future entrepreneurs.

(8) Preventing Industrial Slums: More industrial units are located in highly congested areas and it leads to creation of industrial slums. EDPs help in removal of these slums as entrepreneurs are provided with various schemes, incentives, subsidies and infrastructural facilities to set up their own enterprises in all the places. It will help in controlling industrial slums and also reduces pollution, traffic congestion and overcrowding in developed areas.

(9) Fulfilment of Dreams: EDP is necessary to motivate the potential entrepreneurs to convert their dreams into action.

(10) Successful Launching of New Units: EDP develops motivation, competence and skills necessary for successful launching, management and growth of the enterprise.

(11) Development of Rural and Backward Areas: If new enterprises are set up in backward and rural areas of a developing country like India, they are sure to mitigate poverty in, such areas and also to remove lopsided economic development that is, concentration of business enterprises in urban areas only.

Problems of entrepreneurship development programmes (EDPs) are:

• No Policy at the National Level

Though Government of India is fully aware about the importance of entrepreneurial development, yet we do not have a national policy on entrepreneurship. It is expected that the government will formulate and enforce a policy aimed at promoting balanced regional development of various areas through promotion of entrepreneurship.

• Problems at the Pre training Phase

Various problems faced in this phase are: identification of business opportunities, finding & locating target group, selection of trainee & trainers etc.

• Over Estimation of Trainees

Under EDPs it is assumed that the trainees have aptitude for self employment and training will motivate and enable the trainees in the successful setting up and managing of their enterprises. These agencies thus overestimate the aptitude and capabilities of the educated youth. Thus on one hand the EDPs do not impart sufficient training and on the other financial institutions are not prepared to finance these risky enterprises set up by the not so competent entrepreneurs.

• Duration of EDPs

An attempt is made during the conduct of EDPs to prepare prospective entrepreneurs thoroughly for the various problems they will be encountering during the setting up and running of their enterprises. Duration of most of these EDPs varies between 4 to 6 weeks, which is too short a period to install basic managerial skills in the entrepreneurs. Thus, the very objective to develop and strengthen entrepreneurial qualities and motivation is defeated.

• Non-Availability of Infrastructural Facilities

No prior planning is done for the conduct of EDPs. EDPs conducted in rural and backward areas lack infrastructural facilities like proper class room suitable guest speakers, boarding and lodging etc.

• Improper Methodology

The course contents are not standardized and most of the agencies engaged in EDPs are themselves not fully clear about what they are supposed to do for the attainment of pre-determined goals. This puts a question mark on the utility of these programmes.

• Mode of Selection

There is no uniform procedure adopted by various agencies for the identification of prospective entrepreneurs. Organizations conducting EDPs prefer those persons who have some project ideas of their own and thus this opportunity is not provided to all the interested candidates.

• Non-Availability of Competent Faculty

Firstly, there is problem of non-availability of competent teachers and even when they are available, they are not prepared to take classes in small towns and backward areas. This naturally creates problems for the agencies conducting EDP.

• Poor Response of Financial Institutions

Entrepreneurs are not able to offer collateral security for the grant of loans. Banks are not prepared to play with the public money and hence they impose various conditions for the grant of loans. Those entrepreneurs who fail to comply with the conditions are not able to get loan and hence their dream of setting up their own enterprises is shattered. Helpful attitude of lending institutions will go a long way in stimulating entrepreneurial climate.