EDP-Meaning

• It’s a program designed to help a person strengthen his entrepreneurial motive and in acquiring skills and capabilities necessary for playing his entrepreneurial role effectively

• Towards this end its necessary to promote his understanding of motives,motivation pattern,their impact on behaviour and entrepreneurial value

The need for EDP

• The need for a broad-based entrepreneurial class in India arises from the need to speed up the process of activating the factors of production,leading to a higher rate of economic growth,dispersal of economic activities,development of backward and tribal areas,creation of emlpoyment opportunities,improve the standard of living of the weaker sections and involvement of all sections of the society and progress

Appropriate design• Its now well recognized that entrepreneurs can be

developed through appropriately designed EDP programmes.This follow a 3 tier approach

• Developing acheivement motivation and and sharpening entrepreneurial traits and behaviour

• Project planning and guidance and development of industrial opportunities

• Incentives,facilities,rules and regulations and developing managerial and operational capabilities

The myth about ED • The myth about ED that entrepreneurs are born

and not made no longer holds good• A good no of entrepreneurs have made a mark my

training and hard work• The basic pre-requisities of ED are• Stimulation• Support• Sustaining efforts • Human factor and• Environment

Misconceptions of EDP

• Lack of understanding and clarity has limited its growth

• DEP has not acquired its rightful place in the industrial economy of the country

• The common misconceptions are• Join EDP,all your problems are solved-It’s a valuable

opportunity not available to all but many a time an impression is created is created that joining EDP means assurance of finance,obtaining liecences and receiving incentives

• The misconceptions arise because of lack of promotional efforts to get participants for EDP as well as using wrong techniques for attracting entrepreneurs giving false hopes

• The misconceptions at trainer and trainees should be removed EDP will create more problems

• In reality EDP equips entrepreneurs and make them competent to anticipate and deal with variety of problems.

• EDP means only training-In fact training is only one of the segments of developing entrepreneurs

• Higher the number better the EDP

• EDP is the sole responsibility of the trainer-motivators.

Objectives of EDP

• EDP has been launched by the Industrial service institute under department of Industrial promotion for the promotion of small scale and medium scale industries in the country side

• The EDP also was considered as a part of the industrial development policy planned in the present national development and economic plan

Objectives contd--• To promote small scale and medium enterprises

which will encourage self employment among potential entrepreneurs

• To provide in rural areas special programmes designed to stimulate mew ventures and encourage expansion of existing small and medium industries

• To generate employment and self-employment in the processing of indigenous raw materials for local consumption and export

• To develop capabilities for potential entrepreneurs and upgrade skills for the existing ones

A sound training programme should enable an entrepreneur to

• Develop and strengthen their entrepreneurial quality and motivation

• Analyse environment related to small industries and businesses

• Select project/product/service• Formulate projects• Understand the process and procedure of starting

up an enterprise• Know and can influence the source of help/support

for launching the enterprise

• Acquire basic management skills

• Know the pros and cons of being an entrepreneur

• Acquaint and appreciate the needed social responsibility/entrepreneurial disciplines

• To let him set or reset the objectives of his business and work individually and along with his group for their realisation

• To prepare him for accepting totally unforseen risks of business for a long time after such training

• To enable him to take strategic decisions

• To enable him to build an integrated team equal to the demands of tomorrow

• To communicate fast clearly and effectively• To develop a broad vision to see the business as

a whole and to integrate his function with it• To enable him to relate his product and

industry to the total environment,find what is significant in it and take it in to account in his decisions and actions

• To enable him to cope up with and coordinate the different types of paper work,most of which is statutorily obligatory

• To make him subscribe to industrial democracy,that is accepting workers a partners in enterprise

• To strengthen his passion for intergrity,honesty and compilance with law for long term success

Evolution of EDP

• The various motivation campaigns taken up by the small industries service institute in the 60s tried to fill the information gaps relevant for small enterprises

• Contribution of the programmes was essentially in the areas of disseminating knowledge on financial,technical and managerial aspects

• These were programmes not just for ED but also in the nature of supportive programmes

• The emergence of financial and industrial development corporations in the states it was visualized that creation of all external facilities is not sufficient for the promotion of entrepreneurship

Equally important are the qualities of the individual who responds to the external opportunities(ie availability of funds,financial incentives etc)

Experience in EDPs abroad

• EDP experiences in various countries reveal that training made a lot of difference in the performance of entrepreneurs

• The conclusion also was that EDP could be developed as a valid substitute for natural institutions(eg:business families)

Basic features of the training programme

• Identification and careful selection of entrepreneurs for training

• Developing the entrepreneurial capabilities of the trainees

• Equip the trainees with basic managerial understanding

• Ensuring a viable project for an entrepreneur• Helping him with finance,infrastructure

Entrepreneurial discipline

• Entrepreneurs are promoted and developed at social cost

• They have certain responsibiity to the society• The society expects adequate returns from

these people• Entrepreneurs should follow a discipine which

is essential for their entrepreneurial career

Disciplines

• |Repayment behaviour

• Response to the statutory requirements

• Progressive outlook towards labour

• Care for the environment,ecology etc

Stage of growth of entrepreneurs

• The content of training will largely depend on the stage of growth of entrepreneurs

• The entrepreneurs of the small businesses are usually owner –managers

• In the beginning stage the play the role of a worker and less of a manager

• As soon as the business attains stability the role of the worker decreases and manager increases

• Thus the role of a small entrepreneur is a dynamic one and follows a continuum between workers and managers roles

• In the beginning stage as a part of the EDP programme they receive motivational training,basic knowledge of pdoduction,marketing and financial management

• Later on they require another training intervention with advance level of management inputs to take responsibility

• But advanced managerial training will not be effective in the beginning as they don’t have academic preparedness nor practical experience to relate

• Training should be not only for stimulating but also for sustaining the effort

Variable backgrounds of trainees

• These variables demand for matching training inputs with varying degree of intensity for them to manage the enterprise efficiently

• For eg:a group of MBA entrepreneurs require less intensity onmanagementskilldevelopment

• A group who need to start larger units may require high intensity of management skills

• The training content needs to be prepared having having serious consideration of background

Phases of EDP

• Selection of area from existing socio-economic reports and govt.guidelines

• A techno-economic survey in the selected area to identify the opportunities for new and existing industries and factors of production

• Identify the potential and existing who are interested to diversify the business

• Training of these potential and existing entrepreneurs to increase their motivation and equip them with the skills

• The skills are in management,project feasibility study,project preparation and familiarise them with the prevaling business environment

• Provision of follow up and consultancy services in the areas of management,marketing,production,finance,projects,loans and upgradation of present entrepreneurs

Selection scheme for EDP programme

• The proper identification and selection of participants for training is seen as an instrument to enhance the success of the EDP

• The EDP selection scheme is so designed that the admission to the EDP is limited to 25-30 applicants

• These potential applicants are presumed to posess the traits of potential entrepreneurs

Requirements for an EDP applicant

• Demographic and sociocultural data of the applicant to asess his readiness for the entrepreneurial role

• His age,educational background,business experience,type of business operation,financial resources,equity participation and labour intensiveness

• Motivation of the applicant and exposure to business,sibling positions,reasons to go into business,source of encouragement and support,concreteness of plans,credibility and endurance

• Psychological test in the field of entrepreneurial skills and traits such as risk taking,need for achievement and other relevant traits

Promotions and recruitement

• In preparing the DEP training course the info on EDP is disseminated to the entire public so that enough people are there for screening

• The assistance of the local govt agencies,local banks,chambers of commerce and service clubs are involved in identifying target participants

• The conduct of EDP programmes will be announce in the areas concerned by various means of advertisement media.

Selection procedures

• The selection scheme has a 3 step process• Each applicant completes an application form

whichprobesintohisfamilybackground,education,work and business experience

• The application also gets and idea of his business plans and financial resources

• The applicant is being interviewed as to his motiavtion in becoming an entrepreneur

• He should be having an entrepreneurial potential and desire to participate in the programme

• The applicant goes through a psychological test which measures entrepreneurial traits such as need for achievement,risk taking,need to influence and relevant traits

• Decision to admit an applicant to EDP is wholly dependent on selection results and the no. of participants to attend training shouldn’t exceed 30 per course

Course content and curriculum• The EDP training will be set according to the training

needs of participants• It will be for both for existing and potential

entrepreneurs and industrial prospects of the area• The programme lasts for 4 weeks and consists of 6

modules• 1,Introduction-this module covers general

knowledge on factors affecting small scale industries, the role of entrepreneurs in economic development,entrepreneurial behaviour and facilities available

• 2,Motivation training-Motivation training is a three day live in module aimed at increasing the participants level of achievement

• It also inculcate confidence and developing the right attitude and behaviour towards business

• Two successful entrepreneurs are invited to speak about their experience in setting up and running a business

• 3,Essentials of management-The module is aimed at providing the participants with basic management and technical know-how

• These help them to operate their business enterprise effectively and efficiently, it consists of

• General management• Marketing management• Production management and• Financial management

• 4,Fundamentals of project feasibility study-This part provides guidelines on effective analysis of feasibility of the project .

• The feasibility is with regard to marketing,organisation,techinical,financial and social aspects

• 5,Organising the business-The purpose of this module is to enable participants to know the environment in which they operate their business

• This covers aspects like government incentives,industrial opportunities,policies,business laws and regulations

• 6,Plant visit-Plants visits are necessary to familiarise the participants with real life situations in small business

• Such trips also provide participants with opportunities to learn more about an entrepreneurs behaviour,personality,thoughts and aspirations,including his plans and projects

Course duration and schedule

• The training programme is a 25 day course

• There are two sessions in a day

• The sessions are conducted either in the day or in the evenings according to the opininon of the people in the targetted area

EDP organisations

• The lead in this matter is by the Small industries development organisation through its small industries service centres

• Few of those names are Xavier institute of social services,Ranchi,Centre for entrepreneurshipdevelopment,Ahmedabad,Centre for ED,Hubli,Small industries extension training institute Hyderabad

• In the creation of infrastuctural development for ED,the firststepofIndianfinancialinstititionsincluding IFCI was the establishment of Entrepreneurship deveopment institute of India(EDII)

• The central govt.also have established the National institute for Entrepreneurship and small business development(NIESBUD)

• Next is rural entrepreneurship development institute RED ranchi,Rural Management and management centres in Maharastra