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Entrepreneurial Development Programme (EDP) designed to help a person in

strengthening and fulfilling his entrepreneurial motive and in acquiring skills and capabilities
necessary for playing his entrepreneurial role effectively. Towards this end, it is necessary to
promote his understanding of motives, motivation pattern, their impact in behavior and
entrepreneurial value. And programme which seeks to do this can qualify to be called a
programmer. This has to be stressed here, because there are a number of programmes which
aim at providing informational or managerial inputs or focus on preparation of a project.
Although all these inputs are required b a new entrepreneur, a programme not touching
entrepreneurial motivation and behavior cannot be called an EDP.

EDP is primarily meant for developing those first-generation entrepreneurs, who on their own
cannot become successful entrepreneurs. It covers three major variables; location, target group
and enterprise (entrepreneurial activities). Any of these can become the focus or starting point
for initiating and implementing an EDP. The remaining two then will follow by making proper
synthesis with the first. As for example, if the objective is to promote women entrepreneurs,
suitable location and proper entrepreneurial activities must match or if the objective is to
develop North-East region, then the potential target group and feasible entrepreneurial ventures
must follow. EDP by itself therefore aim at achieving the specific objective of the programmes
and therefore cannot create any managerial result. It is a continuous process of training and
motivating than to set up profitable enterprises in large measure.



The important objectives of EDPs are to;

i) Develop and strengthen their entrepreneurial quality, i.e., motivation or need for
ii) Analyze environmental set up relating to small industry and small business.
iii) Select product.
iv) Formulate project for the product.
v) Understand the process and procedure uninvolved in setting up a small-scale
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 enterprise.
viii) Know the pros and cons in becoming an entrepreneur.
ix) Appreciate the needed entrepreneurial discipline.

Besides, some of the other important objectives of the EDPs are to;

i) Let the entrepreneur himself /herself set or reset objectives for her/ his business and
strive for their realization.
ii) Prepare him/her to accept the uncertainty involved in running a business.
iii) Enable him/her to take decisions.
iv) Enable to communicate clearly and effectively.

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v) Develop a broad vision about the business.

vi) Make him subscribe to industrial democracy.
vii) Develop passion for integrity and honesty.
viii) Make him learn compliance with law.


An EDPs consist following three phases,


The activities and preparations required to launch the training programme come under
this phase. This phase, accordingly; includes the following;

a) Selection of entrepreneurs.
b) Arrangement of infrastructure.
c) Tie-up of Guest Faculty for the training purposes.
d) Arrangement for inauguration of the programme.
e) Selection of necessary tools, techniques to select the suitable entrepreneurs.
f) Formation of selection committee for selecting trainees.
g) Arrangement for publicity media and campaigning for the programme.
h) Development of application form.
i) Finalization of training syllabus.


The main objective of this phase is to bring desirable change in the behavior of the
trainees. Accordingly a trainer should see the following changes in the behavior of the

a) Is trainee attitudinally tuned very much toward his/her proposed project idea?
b) Is the trainee motivated?
c) Is there any perceptible change in his/her attitude, outlook, skills, role, etc.?
d) How should he/she behave like an entrepreneur?
e) What kind of entrepreneurial traits the trainee lacks the most?


This phase includes our past performance; drawbacks, if any in our past work and
suggests guidelines for farming future policies to improve our performance.

In nutshell the purpose behind the EDP past training phase is to;

a) Review the pre-training work;

b) Review the process of training programme;
c) Review past training approach.

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From a strictly economic viewpoint, it can be said that the same factors which promote
economic development account for the emergence of entrepreneurship also. Some of these
factors are discussed in below.

!: capital is one of the most important prerequisites to establish an enterprise

availability of capital facilitates the entrepreneur to bring together the land of one, machine
of another and raw material of yet another to combine them to produce goods.

$ : the quality rather quantity of labour is another factor which influences the
emergence of entrepreneurship. It is noticed that cheap labour is often less mobile or even
immobile. And the potential advantages of low cost labour are negated by the deleterious
effects of labour immobility.

"%!&: the necessity of raw materials hardly needs any emphasis for establishing
any industrial activity and, therefore, its influence in the emergence of entrepreneurship

|' : the fact remains that the potential of the market constitutes the major determinant
of probable rewards from entrepreneurial function. The size and composition of market both
influence entrepreneurship in their own ways



%)  &#* the proponents of non-economic factors give emphasis

to the relevance of a system of norms and values within a socio-cultural setting for
emergence of entrepreneurship.

!|$!)* social mobility involves the degree of mobility, both social and
geographical, and the nature of mobility channels within a system.

 ); several scholars have advocated entrepreneurial security as an imp. Facilitator of

entrepreneurial behaviors. Yet, scholars are not consensus on the amount of security that is

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The National Science & Technology Entrepreneurship Development Board (NSTEDB),

established in 1982 by the Government of India under the aegis of Department of Science &
Technology, is an institutional mechanism to help promote knowledge driven and technology
intensive enterprises. The Board, having representations from socio-economic and scientific
Ministries/Departments, aims to convert /0$&'&/ into /0$&/through Science
& Technology (S&T) interventions.


X To promote and develop high-end entrepreneurship for S&T manpower as well as self-
employment by utilising S&T infrastructure and by using S&T methods.
X To facilitate and conduct various informational services relating to promotion of
X To network agencies of the support system, academic institutions and Research &
Development (R&D) organisations to foster entrepreneurship and self-employing using
S&T with special focus on backward areas as well.
X To act as a policy advisory body with regard to entrepreneurship.

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The entrepreneurship development institute of India (EDI) is established in 1983 and helps the
unemployed to get job where they provide employment for others also. This institute tells its
students to provide job for ten members instead of searching a single job. This organization is
trying to change the mindset of the youngsters towards self- employment from employment
since two decades.

EDI had prepared the entrepreneurs and proved that the statement entrepreneurs are born and
not made as false one. It had prepared them in various fields and helped them. Few
governments take the advice of this institution in forming an entrepreneurship and did it
successfully. Nearly the advices of this institute are taken in 70 countries. This institute is
sponsored by IDBI bank limited, IFCI limited, ICICI limited and SBI limited. In order to
encourage the entrepreneurship, this institute is offering two year full time residential program
as PG diploma in management ± business entrepreneurship. The main goals of this course are
to provide the knowledge, skills, development of business and extending it to all fields. There
are specializations like new enterprise creation, family business management and service
management. A summer camp is conducted by this institute for the children above 15 years to
encourage them in entrepreneurship. It also conducts few programs for women and it

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established its centers in 14 states. It is also developing the curriculum required to implement it
schools and colleges. It also established the development centers in countries like Cambodia,
Myanmar and lavo peoples democratic and republic through foreign ministry department.

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 With an aim to undertake training, research and consultancy activities in small and micro
enterprises focusing on entrepreneurship development, the Indian Institute of Entrepreneurship
(IIE) was established in the year 1993 in Guwahati by the erstwhile Ministry of Industry (now the
Ministry of Micro, Small and Medium Enterprises), Government of India as an autonomous
national institute. The institute began operating from April 1994 with the North East Council
(NEC), Governments of Assam, Arunachal Pradesh and Nagaland and SIDBI as its other

The policy direction and guidance to the institute is provided by its Board of
Management whose Chairman is the Secretary to Government of India, Ministry of Micro, Small
and Medium Enterprises (MSME). The Governing Council of the institute is headed by
Chairman, NEC and the Executive Committee is headed by the Secretary, Ministry of MSME,
Government of India.

The institute is located at Lalmati, Basistha Chariali, 37 NH bypass at a distance of 5 kms from
the Dispur Capital complex, 10 kms from the nearest Railway Station and 30 kms from the LGB


To organize and conduct training for entrepreneurship development.

To evolve strategies & methodologies for different target groups & locations & conduct
field tests.

To identify training needs and offer training programmers to Government and non-
Government organizations engaged in promoting and supporting entrepreneurship.

To document and disseminate information needed for policy formulation and
implementation related to self-employment.

To identify , design and conduct training programmers for existing entrepreneurs.

To prepare and publish literature related to entrepreneurship and industrial development.

To organize seminars , workshops and confer conferences for providing a forum for
interaction and exchange of views by various agencies and entrepreneurs.

To conduct research for generating knowledge to accelerate the process of
entrepreneurship development.

To act as a catalyst for development of elf-employment/entrepreneurship ,

To evolve , design and help in the utilization of various media for creating

The activities of the Institute include identification of training needs, designing and organizing
programmers both for development functionaries and entrepreneurs; evolving effective training
strategies and methodologies for different target groups and locations; organize seminars,
workshops and conferences for providing fora for interaction and exchange of views by various
agencies and entrepreneurs; undertaking research on entrepreneurship development,

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documenting and disseminating information needed for policy formulation and implementation
on self-employment and entrepreneurship.

The Institute acts as a catalyst for entrepreneurship development by creating an environment for
entrepreneurship in the support system, developing new entrepreneurship, helping in the growth
of existing entrepreneurs and propagation of entrepreneurial education

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Micro, Small and Medium Enterprises Development Institute

Ministry of Micro, Small and Medium Enterprises
Government of India
Chambaghat, Solan ( H.P.) Pin-173213

Small Industries Development Organisation (SIDO) an apex body at Central level for
formulating policy for the development of Small Scale Industries in the country, is headed by the
Additional Secretary & Development Commissioner (Small Scale Industries) under Ministry of
Small Scale Industries Govt. of India.

SIDO is playing a very constructive role for strengthening this vital sector which has
proved to be one of the strong pillars of the economy of the country. It functions through a

Advising the Govt. in policy matters concerning small scale sector.

Providing techno-economic and managerial consultancy, common facilities and

extension services.

Providing facilities for technology up-gradation, modernization quality improvement &


Human resources development through training and skill up-gradation.

Providing economic information services.

Maintaining close liaison and vital linkage with the Central Ministries, Planning
Commission, Financial Institutions, State Govts. & similar other developmental
organizations/agencies related to the promotion and development of SSI Sector.

Evolving and coordinating policies for development of ancillaries.

Monitoring of PMRY Scheme

Monitoring the working of different Tool Rooms & PPDC's

network of the field offices namely 30 SISIs, 28 Br. SISIs, 4 RTCs, 7 FTSs, various training and
production centers and specialized institutes spread over different parts of the country. It is
rendering the services in the following areas :-

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NISIET formerly known as Central Industrial Extension Training Institute (CIETI), was set
up in 1960 at New Delhi as a Department of Central Government under the Ministry of
Commerce and industry. Its main objective was to provide training to the personnel of the
Central Small Industries Organization as well as the Department of Industries of the State
Governments. Subsequently, in 1962 it was shifted to Hyderabad and converted into an
autonomous society. In 1984 the Institute was renamed as National Institute of Small Industry
Extension Training (NISIET). NISIET¶s role has benefited not only the Indian micro, small and
medium enterprise (MSMEs) but also those in other developing countries and helped in
promoting self-employment and enterprise development. The institute is constantly evolving with

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time, modifying its focus with the emerging needs of MSMEs and providing them solution in the
form of consultancy, training, research, and education. NISIET¶s programmes are designed to
have universal relevance for successfully training the entrepreneurs to face challenges and
competition in the era of globalization.

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The national institute for entrepreneurship and small business development (NIESBUD),
Noida was set up in 1983 as an apex institution in the field of entrepreneurship development to
promote, support and sustain entrepreneurship and small business through training, education,
research and consultancy services.

The major activities of the Institute include, evolving model syllabi for training various
target groups, providing effective training strategies, methodology, manuals and tools,
facilitating and supporting Central/State Government and other agencies in executing
programme of entrepreneurship and small business development; maximizing benefits and
accelerating the process of entrepreneurship development, conducting programmes for
motivators, trainers and entrepreneurs.

The Institute helps other Entrepreneurship Development Institutions in various ways,

such as developing syllabi in entrepreneurship for different target groups, training of faculty and
developing training aids.

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The development of EDP as a strategy contributing to the industrialization and economic

growth of backward and other areas needs a proper direction and organization for making it
more effective and purposeful. The contribution of EDPs is very uneven among regions for
which definite programmes need to be chalked out to bring about some degree of uniformity and
up gradation. Before this is tackled some important issues need immediate attention. They are
detailed below for consideration.

1. Structure and composition of EDPs: The ED programme should have a practical content
with inter-institutional organizational arrangement to make it a success. The successful
EDPs have, at their base, the inter-institutional co-operation or an institution such as
Gujarat Centre of the state bank of India, which besides having conducted the
programmes has also arranged for finance and other inputs for entrepreneurs. The
EDPs conducted in isolation would dissipate resources and talents. The issues,
therefore, for effective functioning of EDPs is to have a financial agency strongly backing
up efforts for entrepreneurial development. The place and role of TCOs need to be
reviewed and their activities suitably accelerated. Who should conduct an EDP is an
important issue.
2. Areas of operation: As has been stated earlier, in North-Eastern area, entrepreneurial
development activities have not been benefiting from the support activities of financial
institutions. In these areas, programmes have to be linked with support activities.

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3. Fixing priorities: Another area of fixing the priorities of EDPs is to consider their working
in terms of efficiency and social need criteria. Evaluation of EDPs has revealed that
those who have business experience, education and skills are proving successful
entrepreneurs. This source should be tapped first and then go to the stratum to cover
entrepreneurs from the non-traditional class, i.e., without business and industrial
experience, but having the potential of becoming successful entrepreneurs. Next come
the entrepreneurs belonging to backward and other communities who have to overcome
many additional handicaps to become successful entrepreneurs. A proper course
content of EDPs has to be developed t meet specific requirements of each of these
strata of entrepreneurs in proper balance, without sacrificing the efficiency criteria.
4. Lack of specialists, support: entrepreneurship has been an area of area of study
requiring inters disciplinary efforts by people from different disciplines. A large number of
organizations/agencies engaged in entrepreneurship development in India do not have
in the home all the specialists required and have to depend upon outside faculty. The
number of specialists available in the country for developing small scale industries is not
very large. As a result, many a time¶s organizations are unable to locate/avail services of
experts. on the other hand, there are specialists who have time to spare in which they
can render their services to the organizations.

This apart, the ED programmes in India are afflicted with a number of operational
problems. As such though there are many institutions to train entrepreneurs, the growth of
entrepreneurs is inhibited by these problems. The operational problems of EDP are as follows:

Inherent inability,

Diverse opinions,

No proper strategy,

Low institutional commitment,

No local support,

Non-availability of inputs,

Poor follow-up,

No adequate research facilities,

III-planned training methodology,

Inconsistent programme design,

Perpetual ambiguity,

No clear-cut objective,

Lack of clarity in approach, and

Lack of creativity and commitment.
1. There appears to be an inherent inability t identifies the needs of the institution and
differences of opinion prevailing amongst the practitioners and trainers.
2. There seems to be low institutional commitment for local support to entrepreneurs
besides low involvement of marketing, voluntary and financial institutions in the
programme, except for few.

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3. Non- availability of various inputs, i.e., raw materials, power, etc., and infrastructural
support entwined with poor follow-up by the primary monitoring institution, result in
failure of EDP.
4. There seems to be ill-planned training methodology, inconsistency in programme
design, its content, sequence and theme and focus of the programme.
5. Training institutions do not show much concern for objective identification and
selection of entrepreneurs and the follow ±up after training.
6. Some of the institution seems to be still debating whether to look for proper
identification and selection of entrepreneurs for making successful entrepreneurs.
7. Those involved and concerned with the µselection and follow-up¶ activates have
either limited manpower support or a narrow linkage with other support agencies.
8. There does not appear to be standard course curricula even in term of broad module
being adopted by such institutions.
9. Majority of the institutions engaged in EDP are themselves not convinced of what
they are doing as task delegated by the government of helping the policy in attaining
its social objectives.
10. Perceptual ambiguity of the EDP objective seems to have percolated to grassroots
level with a significant distortion both in terms of content and intent.

To conclude, it can be stated that many of the issues related to an EDP are conceptual in nature
many are practical and operational and, many are in the borderline between concept and
practice. Research and studies, building sophisticated skills and expertise, co-coordinating,
collaborating, corroboration of ideas and actions are necessary strategies that should be
continuously pursued to confront these issues.

In the post-independence period, the nation laid stress and put its faith in science and
technology. The county has made tremendous investments in scientific institutions and scientific
and technical manpower. These investments need to harvest. We have learnt that the
managerial skills necessary to harvest businesses are different from the skills required to create
businesses. Similarly, to create technology enterprises we may also require a different breed of
managers in our institutions. Development of technical entrepreneurship and the management
of science and technology cannot be dealt with in mutual exclusion.



1. It makes sure the availability of skilled workers at all levels of management.

2. It increases the potential abilities of workers and thus improves their performance to the
maximum attainable level.
3. It enables workers to perform the work more efficiently and precisely so as to maintain
the quality of products.
4. It minimizes excessive scraps, defective outputs and wastage in the production process.
5. Training reduce fatigue

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6. New techniques can be easily adopted through trained employees,

7. Training enables employees to occupy higher positions of authority.


1. To impart basic knowledge about the industry, product and production methods,
2. To build the necessary skills of new entrepreneurs and workers;
3. To assist the entrepreneur/worker to function more effectively in his present position.
4. To expose the entrepreneur to the latest developments which directly or indirectly affect
5. To impart customer education;
6. To impart knowledge of the marketing of goods.


1. Individual instruction: under this method a single individual is selected for training this
mode of training is undertaken where a complicated skill is to be taught to an individual.
2. Group instruction: this mode of training is suitable for a group of individuals with a similar
type of work and where general instructions are applicable to all are to be given.
3. Lecture method here the instructor communicates in theory the practice to be followed
by the learners. Under these methods, wherever there are any doubts they may be
clarified on the spot.
4. Demonstration method: where the performance of work is to be shown practically by the
instructor for better understanding, this method can be followed. This is more concerned
with the practical than theoretical aspect.
5. Written instruction methods: the medium of training is followed where a future reference
is to be made by the learners. This method is mostly followed where a standardized
production system is followed.
6. Conference: conferences are frequently organized wherein experts in the field share
their ideas and bring to the notice of learners new ideas and techniques to increase

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