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Entrepreneurial Development Programme

This document discusses entrepreneurial development programmes (EDPs) and evaluates their effectiveness. It outlines some common misconceptions about EDPs, including that they alone will solve all problems, that they only involve training, and that success depends solely on the trainer. The document also identifies several problems with existing EDPs, such as a lack of coordination, inappropriate support systems, high costs, and failure to meet local needs. Overall, the document suggests that EDPs have yet to significantly contribute to the country's industrial economy due to various misconceptions and shortcomings.

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Harsh Gupta
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418 views

Entrepreneurial Development Programme

This document discusses entrepreneurial development programmes (EDPs) and evaluates their effectiveness. It outlines some common misconceptions about EDPs, including that they alone will solve all problems, that they only involve training, and that success depends solely on the trainer. The document also identifies several problems with existing EDPs, such as a lack of coordination, inappropriate support systems, high costs, and failure to meet local needs. Overall, the document suggests that EDPs have yet to significantly contribute to the country's industrial economy due to various misconceptions and shortcomings.

Uploaded by

Harsh Gupta
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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AN ASSIGNMENT ON EVALUATION OF ENTREPRENEURIAL PROGRAMME DEVELOPMENT

SUBMITTED BY

VIKAS JAISWAL
MBA Final Year

Session 2009-2011

SUBMITTED TO

PROF. RAMENDU ROY


MOTILAL NEHRU INSTITUTE OF RESEARCH AND BUSINESS ADMINISTRATION
UNIVERSITY OF ALLAHABAD, ALLAHABAD-211001

ENTREPRENEURIAL DEVELOPMENT PROGRAMME (EDP)


Entrepreneurial development programme 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 venture. According to C.B Gupta and N.P. Srinivasan,Development of an Entrepreneur means inculcating entrepreneurial traits into a person, imparting the required knowledge, developing the technical, financial, marketing and managerial skills, and building the entrepreneurial attitude. The process of entrepreneurial development involves equipping a person with the information used for enterprise building and sharpening his entrepreneurial skills.

EVALUATION OF EDPs
The present growth and success of EDPs in backward areas is far from satisfactory. It is observed that efforts made by various institutions have been limited and somewhat haphazard. The programmes conducted by various agencies vary in duration, selection process and course contents etc. the contribution of EDPs has been very uneven among various areas and states. EDPs are presently operating only in few states. In rural areas, their operation are not satisfactory and to the mark. Even within industrially developed states, there are many areas which have remained backward. The reason for this slow growth have been the environmental factors such as adverse terrain, soil, climate, etc. and lack of entrepreneurial spirit. Some important problems and weaknesses regarding EDPs are as follows: 1. Lack of co-ordination- It is observed that enough attention is not paid to streamline and there is a lack of co-ordination between activities related to the programmes to get the maximum result. 2. Inappropriate support system- It is also observed that the soundness and willingness of the support system greatly influence the success of the programme. But our EDPs lack sound support system to promote entrepreneurship. 3. Costly affair- Our EDPs are costly now-a-days. They have fancy budget to expend .But these cannot be afforded by developing economies like India. 4. Not catered to our needs- It is also noted that our EDPs are modeled on the classical theories of entrepreneurship. They are geared to meet out the need of elitist small group, while larger groups are not helped through these programmes. Needy entrepreneurs are not provided with proper help to meet their needs. EDPs fail to tap the entrepreneurial potential. Trained entrepreneurs do not received the support and counseling which they need most.

5. Lack of innovative functions- Most of the existing support organizations are meant for maintenance operations and not for innovative functions. 6. Improper selection of projects-another major problem is improper identification and selection of the projects. This leads to wrong choice of technology and improper forecasting of financial requirements.

7. Poor financial management- inadequate finance, poor working capital management, non-productive expenditure also pose major problems to the entrepreneurs.

8. Non-availability of inputs- Non-availability of various inputs such as raw materials, tools, machines, power, technical employees etc. and poor infrastructure resulted in the failing of EDPs.

9. Shortage of technical manpower- shortage of technical

manpower to

run the enterprise is another major problem. Small entrepreneurs cannot afford to employ skilled technical manpower at high wages. Seasonal availability of labor leads to low capacity utilization. 10. Unsatisfactory infrastructure facilities- lack of proper transport and

communication facilities reduce mobility and cause delays in the flow of information. Shortage of lands and industrial workshops, irregular power and water supply, defective systems for disposal of industrial waste, lack of roads, warehouse are other infrastructural problems. 11. Delays in project implementation- In many cases delays in project implementation result in cost increase. This in turn creates liquidity problems, increase debt burden and hikes the break-even point.

12. Multiplicity of government agencies- Multiplicity of government agencies leads to confusion and wastage of valuable time and energy of entrepreneurs. Moreover, these institutions are victims of procedural delays. 13. Dependency upon middlemen- Small entrepreneurs have to depend upon middlemen and face competition. They lack expertise and resources to compete with large business houses. With the result, inventories are piled up and entrepreneurs become unable to pay dues to financial institution in time.

14.

Various other problems-

i- Consultancy services are satisfactory. ii- there is a low institutional commitment for local support to the entrepreneurs. iii- there is no standard curricula. iv- There is vagueness in the objectives of EDPs. v- The extension service of district industries centers is poor.

MISCONCEPTIONS ABOUT EDP


EDP is a catchword. But misconceptions about EDP prevail. Lack of understanding and clarity has limited its growth. EDP has yet to contribute much to the industrial economy of the country. Chandramauli Pathak has listed some of the prevailing common misconceptions about EDP. They are:

Join an EDP, all your problems are solved


Joining an EDP is a privilege. It is indeed a valuable opportunity not available to all. But many a time an impression is created that joining EDP means assurance of finance, obtaining the required licenses for business ventures and availing of the special incentives. This misconception arises either because of lack of honest promotional effort to get participants for EDP, or by attracting entrepreneurs by raising false hopes. It may also be a result of entrepreneurs expectations in gaining in such advantage like finance, licenses, raw material, quotations, etc. since most EDPs are state-sponsored. Unless this misconception about EDP at both ends (trainers and trainees) is not removed, EDP will only create problem rather than solving them.

EDP means only training


Any attempt to develop potential entrepreneurs through classroom training has been treated as EDPs. In, fact training is only one of the segments in the process of developing entrepreneurs. The ED process starts from identifying the potential and right candidates, linking suitable projects with each one, training and developing managerial and entrepreneurial capabilities, counseling and motivating the entrepreneur and providing the required follow-up support to help him/her in establishing the venture. The whole process extends much beyond training. Much of it is personal counseling and support.

Higher the number, better the EDP

EDPs unfortunately have been linked with statical output rather than qualitative results. The quantitative dimension has forced manipulation in EDPs. It is taken that an EDP is a success with the maximum of participants of responses. The quality and impact of the EDP matters more than the quantitative dimension. Strategies to promote a particular target group, the nature of the non-traditional entrepreneurial activities and higher chances of success in new ventures go a long way in deciding the quality and impact of an EDP.

EDP success is the sole responsibility of trainer motives


It is the responsibility of the Trainer- motivator in most cases, to conduct the programme. However, many environmental factors challenge his role as a motivator. The trainer alone cannot control or influence external factors which usually come in the way of start-ups out of an EDP. EDP conducting agencies and the trainer alone cannot develop entrepreneurs and help them set up there enterprises since many other support agencies like banks, SFCs, DICs, etc. are also involved to create co-ordination and effective linkages with these agencies. So these are the misconceptions about the EDP and these misconceptions should not be there while organizing an EDP on the behalf of both ends that is the trainee and the trainer . EDP should be properly organized so that it serves its prime motto more effectively and more efficiently.

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