Entrepreneurship Development

Entrepreneurship Development Programme – Concept, Importance and Objectives of EDP

Entrepreneurship Development Programme means a programme conducted to help a person in strengthening his entrepreneurial motive and in acquiring skill and capabilities required for promoting and running an enterprise efficiently . A programme which is conducted with a motive to promote potential entrepreneurs , understanding of motives , motivations pattern , their impact on behaviour and entrepreneurial value is termed as entrepreneurship development programme .

Objectives of Entrepreneurship Development Programme

(1) To Develop the Entrepreneurial Motivation – The training inputs under this aim at inducing and increasing the need for achievement among the participants . Efforts are made to inject confidence and positive attitude behaviour among the participants towards business . Motivation may be of any kind such as internal or external , financial or non financial , etc . It is an activation and direction of energy . It ultimately tries to make the participants to start their own business after the completion to development programme.

(2) To analyse the environment – Such programmes also analyse the environment. There are various environmental factors that affect the business directly or indirectly. Such factors may be social , natural , political , economical , technological , legal , etc. With the help of such programmes , an entrepreneur learns to analyse the environment and can analyse accordingly. After such analyses he can face the competition and avail the opportunities available in the environment.

(3) To select project – One of the major problems for an entrepreneur is to take decision regarding selection of a product or project. This decision needs to be taken very carefully because all the future efforts are related with it. EDP helps and guides the entrepreneurs for solution of the problem for selection of the project or product.

(4) Formulation of project – Project report is a key area for every entrepreneur. This plays a significant role at the initial stage of the project , EDP also contributes in understanding the process and procedure to formulate a project.

(5) To acquire the basic managerial skills – Running a business , whether small or large , requires managerial skill. Knowledge of managerial skill enables an entrepreneur to run his enterprise smoothly and successfully. The main objectives of entrepreneurial development programme is to provide the necessary management skill to an entrepreneur required to run an enterprise.

(6) Support system and procedure upgradation – Entrepreneurial development programmes also aims at updating the entrepreneurs regarding support available from different institutions and agencies for setting up and running small scale enterprises. This is followed by acquainting them with procedure for approaching them , applying and obtaining support from them.

(7) Develop a broad view about the business – Such programmes specially provide gainful self employment to the interested young man and women. They specially encourage them to go for self employment instead of working for others. Such types of programmes give a broader view about the business to the interested persons. These programmes also aim at providing general knowledge of entrepreneurship such as factors affecting small – scale industries , the role of entrepreneurs in economic development , entrepreneurial behaviour and the facilities available for establishing small – scale enterprises.

(8) Exposure to project feasibility study – Under this head the programmes provide guidelines for the effective analysis of feasibility or viability of a particular project in relation to marketing , organisation , technical , financial and social aspect. This knowledge helps the entrepreneurs in future for feasibility study of their project.

Importance of Entrepreneurship Development Programme

(1) Creation of employment opportunity – Unemployment is one of the major problems of underdeveloped countries. EDP enables prospective entrepreneurs in setting up of their own units thus enabling them to get self employment. With the setting up of more and more units , by entrepreneurs both on small and large scale , numerous job opportunities are created for the others. In other words , EDP converts the job seeker into job givers. Government of India has also initiated and introduced many schemes in this direction like. Nehru Rozgar Yojna , National Rural Employment Programme ( NREP ) , Integrated Rural Development Programme ( IRDP ) etc. The main objectives of these schemes are to eliminate poverty and generate employment opportunities for the unemployed persons.

(2) Capital formation – It is not possible to set up an enterprise without adequate funds. Entrepreneurs employ their own financial resources on the one hand and on the other hand they mobilize idle savings of the general public through issue of various securities , thereby facilitating capital formation. In this way , he makes productive use of idle financial resources. This capital formation leads to the industrial development of the country. Further various development banks like ICICI , IDBI , SFCs , SIDCs take initiative in promoting entrepreneurship through assistance to various agencies involved in EDP and by providing financial assistance to new entrepreneurs.

(3) Balanced regional development – Successful EDPs help in the rapid industrialisation especially in the backward areas and remote areas. Entrepreneurs by setting up their units in remote and backward area facilitate in making best possible use of the local resources. More industrial units result in more employment , more income and overall development or prosperity of those regions , and help in reduction of concentration of economic power.

(4) Improvement in per capita income – EDPs play a positive role in the setting up of more units and helps in generation of more employment and income. It encourages the young entrepreneurs to exploit and grab the opportunities. Entrepreneurs take lead in organising various factors of production by putting them into productive use through setting up of enterprise. This leads to more production , employment and health in the form of goods and services , which automatically helps in the improvement of per capita income of the country.

(5) Improvement in the standard of living – Entrepreneurs by adopting latest innovations help in the production of variety of goods and services. Entrepreneurs set up industries which remove scarcity of essential commodities. Production of goods on mass scale leads to lowering of cost of goods. They offer goods and services at lower costs and increase the standard of living of people. EDPs provide the necessary support to entrepreneurs by educating them about the latest innovations and market trends.

(6) Innovations in enterprises – EDPs are aimed at accelerating the pace of small firm’s growth in the country. It is believed that smaller firms have relatively higher necessity and capability to innovate. The smaller firms do not face the constraints imposed by large investment in existing technology. Thus , they can go for innovative measures.

(7) Economic independence – Entrepreneurs enable a country to produce wide variety of better quality of goods and services and that too at competitive prices. Entrepreneurs help to manufacture indigenous substitute of hitherto imported products , thereby reducing dependence on the foreign countries. Businessman also exports goods and services at the large scale and thereby earn the foreign exchange for the country. Such import substitution and export promotion help to ensure the economic independence of the country.

(8) Use of local resources – Generally in every country , local resources remain unutilised due to lack of initiatives. It is widely accepted fact that use of local resources can result in the development of the area and that too at lower cost. EDPs help in the a and that too at lower cost. EDPs help in the proper use of local guidance , assistance , education and training to the prospective entrepreneurs.

(9) Reducing social tension among youth – Many problems associated with youth , social tensions are rightly considered to be due to youth not being engaged in the productive work. The country is required to divert the youth with latent entrepreneurial traits from wage earner to self employment. EDPs can help in channelizing the talent of this section of society in the right direction by providing proper guidance , training and assistance for setting up their own enterprise. This results in generation of self employment and prevention of social unrest , tension , etc..

(10) Facilitating overall development – Economic development of the country mainly depends upon an entrepreneur. In fact , entrepreneurship is the dynamic need of a developing nation and sustains the process of economic development. With the setting up of an enterprise the process of industrilisation is set in motion. The establishment of more and more enterprises leads to overall development of an area due to increase in demand. Through EDPs an environment of enthusiasm is created that encourages the entrepreneurs to work for the overall development of the country.

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