Entrepreneur Development Program (EDP):

The Entrepreneurship development movement has steadily gained momentum in India since the
first comprehensive Entrepreneurship Development Programme (EDP) was launched in 1970.
Starting a small business can be challenging. Entrepreneurs and small business owners are faced
with many hurdles a
The program includes access to the online course as well as virtual business support through the
Innovation Center staff.

Individuals may enroll in the program at any time and proceed at their own pace. Upon
completion of the program, they will receive a certificate of completion.

When the program is utilized from beginning to end, participants will be equipped with an
overall knowledge of all areas of entrepreneurship

Importance of training:
Methods of training
EDP- Need and importance
Phases of EDP
Selection of entrepreneurs for EDP
Training program - Course contents
Pre requisites of EDP

Importance of Training
• Ensures availability of skilled manpower at all management levels
• Enhancing abilities, potential among entrepreneurs
• Increase efficiency
• Maintain and enhance product quality
• Minimise wastages in production process
• Minimise accidents on the job
• Reduce fatigue and increase speed of work
• Standardisation in industry and internal processes

Methods of Training
• Individual instruction
• Group instruction
• Lecture method
• Demonstration method
• Written instruction method
• Conference
• Meetings
EDP
• Designed with an aim of encouraging self employment
• Imparts training and motivates potential and existing Entrepreneurs to start new business or
diversify and expand the existing one
• Helps employment and wealth creation among educated Unemployed youth
• Well equipped to face risks and challenges as an entrepreneur
• Government needs considerable human and material resource, importance to detailed planning
& implementation

Phases of EDP
• Select area from existing government policy guidelines/socio-economic reports
• Techno-economic survey of the selected area; feasibility study
• Identify potential and existing entrepreneurs interested in starting new
business/expansion/diversification
• Training
• Follow up and consultancy services

Selection of entrepreneurs for EDP

• The program is well publicised and promoted to attract maximum applications for screening
• Selection of top 25 to 30 applicants only
• Applications screened for:
– Demographics and socio cultural data – age, education, work exp, financial resources, type of
business etc
– Motivation factors – pull factors, source of encouragement, credibility, endurance,
concreteness of plans
– Psychological test results- traits like risk taking, need for achievement

Training – Course contents

• Introduction to entrepreneurship
• Motivation training
• Essentials of management
• Fundamentals of project feasibility study
• Organising the business
• Plant visit

Pre requisites of EDP

• Selection of entrepreneurs
• Inputs for EDP
• Support system
• Follow up
Module Topics

The Entrepreneur Development Program consists of eleven learning modules. These modules
have information in regard to entrepreneurship, starting a business, and managing a business to
include:

 Entrepreneurship
 Business Plan Rationale
 Writing a Business Plan
 Sources of Funding
 Entity Selection
 Taxes
 Accounting
 Financial Statements
 Marketing
 Management
 Employment Laws

Features

 24/7 Access from anywhere at anytime

 Downloadable examples of a sample business plan and sample financial statements
 Access to Innovation Center staff
 Free access to three small business workshops (limit 3 - valid up to six months from
enrollment date)

Benefits

 Fits in with your busy schedule

 Learn how to directly apply the information you are learning
 Unlimited access to professionals who can assist with individual business needs

Orientation Sessions

Interested participants in the online entrepreneurial program should register to attend an

orientation session given by the Innovation Center staff. These introductory sessions are
available monthly at all three locations at convenient times such as evenings, and weekends.
These sessions are free and will provide an overview of the material, as well as provide tips for
how participants can get the most from the program. Participation in the orientation sessions is
not a commitment to program enrollment.
Phase of Entrepreneurship Development Program:
An EDP consists of following three broad phases:

a) Pre training phase

b) Training phase
c) Post training phase (Follow-up)

A) Pre-training Phase
The activities and preparations required to launch the program come under this phase.
It includes:
i. Designing of Course Curriculum or Contents.
ii. Exploring & selecting appropriate faculty and resource persons.
iii. Insertion of advertisement.
iv. Screening & selection of potential entrepreneurs.

B) Training Phase
The main objective of this phase is to bring desirable change in the behavior of trainees.
The behavioral changes that need to be measured and monitored through the training program
are:
a) Raising the motivation level of entrepreneurs.
b) Developing a goal directed behavior pattern.
c) Raising positive thinking & belief.
d) Arousing and raising change oriented innovative psyche
e) Arousing & raising a psyche of risk-seeker.
f) Developing a high degree of self confidence.
g) Developing a psyche of responsibility seeker.
h) Developing a strong sense of perseverance & commitment.

C) Post-training or Follow –up phase

This phase involves the assessment to judge how far the objectives have been achieved.
The purpose behind EDP follow-up is to:
a) Review the pre-training work.
b) Review the process of training program
c) Review past training approach.
EDP flow chart Entrepreneurial performance is a function of the following factors:

Selecting Area

Techno-Economic survey of the area and Introduction of EDP to the Community

Revision of Curriculum

Advertising of EDP training course

Symposium

Selecting Participants

EDP training

Follow-up

Post-training Assistance

Entrepreneurial performance is a function of the following factors:

a) Socio cultural background of the entrepreneur (SB).
b) Motivational force (MF)
c) Knowledge and ability of entrepreneurs (KA)
d) Financial Strength (FS)
e) Environmental Variables (EV)

Symbolically Entrepreneurial Performance (EP) can be represented in the following way:

EP = f(SB, MF, KA, FS & EV)
Entrepreneurship Development Institute of India, Ahmedabad had undertaken a nationwide
evaluation study on the effectiveness of EDPs.

Performance of the sample EDPs at a glance Description Number

a) EDPs covered (Sample size):145

b) EDP trainees covered in sample EDPs: 1295

c) Sample trainees interviewed: 865

d) Sample trainees not available & non-traceable: 430

e) Number of units set-up by EDP trainees: 277

f) Trainees actively under process: 78

g) Trainees blocked under process: 129

h) Trainees who gave up: 381

i) Non-traceable trainees: 146

j) Start-ups among non-available: 59

k) Non start-ups among non-available: 225

l) Expected final start-up rate (e+f+j): 414

The major findings of this study are:

1. One out of four trainees actually started his/her enterprise after completing EDPs.
2. The final start-up rate is higher around 32 percent.
3. About 10 percent trainees are found blocked due to various reasons at various stages in the
process of setting up their enterprise. If proper assistance is not provided they may add to the
category of 29 percent trainees who have already dropped the idea of setting up their own
enterprises.
4. 17 percent have given up the idea of starting their ventures as they were engaged in other
activities.

The following main criteria can be employed to comment on the performance of

entrepreneurs:
i. Financial Results
ii. Gestation Period
iii.Capacity Utilization
iv. Expansion and Diversification
v. Value Addition
vi.Other Factors:
1. No policy at the national level
2. Problems at the pre-training phase
3. over estimation of trainees
4. Duration of EDPs
5. Non-availability of infrastructural facilities
6. Improper methodology
7. Non availability of competent faculty
8. Poor response of financial institutions
1. Emphasis on stimulating, supporting & sustaining activities.
2. Model based EDPs
3. Focus on achievement motivation
4. Designing of viable projects
5. Selection of trainees
6. Training of trainers
7. Duration of EDPs

1. Creation of employment opportunities

2. Capital Formation
3. Balanced Regional Development
4. Use of Local Resources
5. Improvement in per capita income
6. Improvement in standard of living
7. Economic independence
8. Preventing industrial slums
9. Reducing Social Tension
10. Facilitating overall Development

Criteria for Evaluating Development Assistance:

The extent to which the aid activity is suited to the priorities and policies of the target group,
recipient and donor.
In evaluating the relevance of a program or a project, it is useful to consider the following
questions:
 To what extent are the objectives of the program still valid?
 Are the activities and outputs of the program consistent with the overall goal and the
attainment of its objectives?
 Are the activities and outputs of the program consistent with the intended impacts and
effects?
Effectiveness

A measure of the extent to which an aid activity attains its objectives.

In evaluating the effectiveness of a program or a project, it is useful to consider the following
questions:
 To what extent were the objectives achieved / are likely to be achieved?
 What were the major factors influencing the achievement or non-achievement of the
objectives?
Efficiency

Efficiency measures the outputs -- qualitative and quantitative -- in relation to the inputs. It is an
economic term which signifies that the aid uses the least costly resources possible in order to
achieve the desired results. This generally requires comparing alternative approaches to
achieving the same outputs, to see whether the most efficient process has been adopted.
When evaluating the efficiency of a program or a project, it is useful to consider the following
questions:
 Were activities cost-efficient?
 Were objectives achieved on time?
 Was the program or project implemented in the most efficient way compared to
alternatives?
Impact

The positive and negative changes produced by a development intervention, directly or

indirectly, intended or unintended. This involves the main impacts and effects resulting from the
activity on the local social, economic, environmental and other development indicators. The
examination should be concerned with both intended and unintended results and must also
include the positive and negative impact of external factors, such as changes in terms of trade
and financial conditions.
When evaluating the impact of a program or a project, it is useful to consider the following
questions:
 What has happened as a result of the program or project?
 What real difference has the activity made to the beneficiaries?
 How many people have been affected?
Sustainability

Sustainability is concerned with measuring whether the benefits of an activity are likely to
continue after donor funding has been withdrawn. Projects need to be environmentally as well as
financially sustainable.

When evaluating the sustainability of a program or a project, it is useful to consider the

following questions:
 To what extent did the benefits of a program or project continue after donor funding
ceased?
 What were the major factors which influenced the achievement or non-achievement
of sustainability of the program or project?
Scope of Entrepreneurship development in India:
Introduction
we are a very young nation – just over 55 years since independence – setting out on a path of
sustained economic growth, for decades to come.

We already have over a billion fellow Indians. Within the next 20 years, we will have 400
million people below the age of 35 years – more than the entire population of the United States!
Each person, in this bold new generation, will be in the prime of his or her life, striving for a
better tomorrow – creating, in the process, new growth opportunities, for budding entrepreneurs!

On the most conservative basis, our domestic consumption, in virtually any sector, has the
potential to at least double, or treble, from current levels – perhaps, just to catch up with a
country like China!

Then, there is the entire global opportunity, across diverse sectors internationally; the "Made in
India" tag is now an increasingly respected brand, valued for quality, reliability, and
competitiveness.

Truly, with economic reforms in the country, and with the virtual removal of all trade barriers,
the world is now our market – and our opportunity!

The pursuit of these opportunities requires an indomitable spirit of entrepreneurship!

Scope of entrepreneurship development in India

In India there is a dearth of quality people in industry, which demands high level of
entrepreneurship development program throughout the country for the growth of Indian
economy.

The scope of entrepreneurship development in country like India is tremendous. Especially since
there is widespread concern that the acceleration in GDP growth in the post reforms period has
not been accompanied by a commensurate expansion in employment. Results of the 57th round
of the National Sample Survey Organization (NSSO) show that unemployment figures in 2001-
02 were as high as 8.9 million. Incidentally, one million more Indian joined the rank of the
unemployed between 2000-01 & 2001-02. The rising unemployment rate (9.2% 2004 est.) in
India has resulted in growing frustration among the youth. In addition there is always problem of
underemployment. As a result, increasing the entrepreneurial activities in the country is the only
solace. Incidentally, both the reports prepared by Planning Commission to generate employment
opportunities for 10 crore people over the next ten years have strongly recommended self-
employment as a way-out for teaming unemployed youth.

We have all the requisite technical and knowledge base to take up the entrepreneurial challenge.
The success of Indian entrepreneurs in Silicon Valley is evident as proof. The only thing that is
lacking is confidence and mental preparation. We are more of a reactive kind of a people. We
need to get out of this and become more proactive. What is more important than the skill and
knowledge base is the courage to take the plunge. Our problem is we do not stretch ourselves.
However, it is appreciative that the current generations of youth do not have hang-ups about the
previous legacy and are willing to experiment. These are the people who will bring about
entrepreneurship in India.

At present, there are various organizations at the country level & state level offering support to
entrepreneurs in various ways. The Govt. of India & various State Govts. have been
implementing various schemes & programmes aimed at nurturing entrepreneurship over last four
decades. For example, MCED in Maharashtra provides systematic training, dissemination of the
information & data regarding all aspects of entrepreneurship & conducting research in
entrepreneurship. Then there are various Govt. sponsored scheme for the budding entrepreneurs.

Recognizing the importance of the entrepreneur development in economic growth &

employment generation, Maharashtra Economic Development Council (MEDC) has identified
entrepreneurial development as the one of the focus area for Council activities two years ago.

Various Chambers of Commerce & apex institutions have started organizing seminars &
workshops to promote entrepreneurship. Incidentally, various management colleges have
incorporated entrepreneurship as part of their curriculum. This is indeed a good development.
This shows the commitment of the Govt. & the various organizations towards developing
entrepreneurial qualities in the individuals.

Promoting Entrepreneurship

In India, where over 300 million people are living below the poverty line, it is simply impossible
for any government to provide means of livelihood to everyone. Such situations surely demand
for a continuous effort from the society, where the people are encouraged to come up with their
entrepreneurial initiative.

Encouragement at attitudinal and social level

In the future, innovation and entrepreneurship needs to be encouraged at Social levels,

Governmental levels and Managerial levels. There must be a social attitude that views
innovations with positive attitude and reject an innovation only when it is not acceptable.

Encouragement at physical level

At this level the encouragement will refer to two aspects necessary for entrepreneurship to thrive,
one is the provision of venture capital and the other being infrastructural support. A real example
is Export Processing Zones which are performing extremely well when given the support.

What will be the qualities needed to succeed in this new world?

First and foremost, we need the entrepreneurial spirit. Outside India, this spirit has been very
evident in the IT industry. 35% of the start-ups in Silicon Valley are by Indians. We need to have
similar risk-taking ability within the country as well. Entrepreneurs need more than technical
talent, more than business savvy. What they need is the indefatigable energy and incurable
optimism that enables them to take the road less traveled and convert their dreams into reality. It
is a force that beckons an individual to pursue countless opportunities. Entrepreneurs must learn
how to overcome the risk of failure, or of vulnerability. The institutions can give them valuable
insights and also support them in this.

Indian Entrepreneurs

Dhirubhai Ambani
A proud son of this glorious state of Gujarat, and a man with long ties with this wonderful city of
Ahmedabad, was the greatest example of this spirit of entrepreneurship!

In a short span of less than 25 years, and without even the benefit of a formal education,
Dhirubhai Ambani built Reliance, a first generation enterprise, into one of the world’s 200 most
profitable companies!

He started out in life, working as a mere petrol pump attendant in Aden, Yemen. He had no
technical knowledge, of any of the businesses he wished to create in India.

He had just five hundred rupees in his pocket, a vision of what he wanted to achieve, an intrinsic
faith in the latent demand potential of the Indian markets, a belief in the capabilities of Indian
people, and a burning desire to succeed!

The end result?

He created Reliance, a Rs. 75,000 crore enterprise, in a single lifetime!

Future Perspective
Entrepreneurship as in the past will determine technical innovations, status of social institutions
and political management systems. On the basis of these factors, we can expect the future to be a
place where basic needs will remain and only the wants will change. India will overcome the
barriers of infrastructure; we will also visualize a strong manufacturing and agricultural sector.

Entrepreneurs and not managers will be in demand, as only they will be equipped to find order in
chaos. The focus of entrepreneurial energy will shift from achieving volume sales to fulfill a
specific requirement. Governance will become more transparent and will be willing to accept
changes necessary for growth and development. More autonomy will become the basis of all
issues.

The future will see Entrepreneurship as the key driver of economic development Technological
obsolescence will become order of the day and there will be more space for leisure. New
businesses will be credited with providing variety of new jobs in the economy. New and small
business will also develop more than their share of product and service innovation. At one end
we will see the technological upheavals in quick succession and on the other end there will be
social value systems and cultural issues undergoing slow but dynamic transformations.

Conclusions
There are ample opportunities in small businesses in India and such opportunities will transform
India in the coming future. For such transformation to happen there needs to be support both at
the governmental and societal level. For the government it is important to realize that the goal of
small business owners will be to remain self-employed. Such people may not need financial
assistance but they will need marketing and legal assistance in order to sustain themselves.
Practical and cost effective programs need to be developed to address their needs because self-
employed people will represent an important segment in economic revitalization.
Entrepreneurship development is the key factor to fight against unemployment, poverty and to
prepare ourselves for globalization in oder to achieve overall Indian economic progress.

Evaluation of Entrepreneurship Development Programmes:

 

Based on data generated from extensive interviews with more than 1,500 EDP trainees, non -
trainees and various officials, and using rigorous statistical as well as qualitative techniques, the
authors highlight a number of factors affecting the quality of EDPs. Among the issues they
explore are the variations in the 'start - up' rates across states, the characteristics of organizations
conducting EDPs, and the socio - economic categories and background of the trainees. The
author view EDPs as essential for promoting the social and spatial diversification of
entrepreneurship in India. They conclude that the EDPs on the whole stand the test ok cost -
benefit criteria and that skepticism about either their values or their contribution in unjustified.
To make these programmes more effective, what needs to be done is to streamline the process of
implementation. The authors suggest a number of corrective measures to this end. This
pioneering work will be of considerable interest to those involved in entrepreneurial research and
training, management education, organizational development, and business and industrial
studies.
Evaluation of Entrepreneurship Development Programs assesses the efficacy, degree of success,
and the contribution of entrepreneurship development programs (EDPs) in India. It delineates the
factors contributing to the success or failure of such programs, and evaluates the role of support
agencies with reference to the promotion of first-generation entrepreneurs through EDPs. Based
on data generated from extensive interviews with more than 1,500 EDP trainees, nontrainees,
and various officials, and using rigorous statistical as well as alternative techniques, the authors
highlight a number of factors affecting the quality of EDPs. They conclude that entrepreneurship
development programs have fulfilled expectations--meeting most cost-benefit criteria--
specifically, and present various corrective measures for streamlining the process of
implementation of these programs.
Organisations providing EDP
National Institute for entrepreneurship and Small Business Development (NIESBUD)
• Established by Government of India in 1983
• An apex body for coordination and supervison on activities of various institutes engaged in
entrepreneurial development
• Helps evolution of EDP, model syllabi, effective training strategies, methodology, manuals and
tools

Activities undertaken:
– Organise and conduct training programmes
– Coordinate training activities of various agencies/institutes
– Provide affiliation to such institutes
– Hold examinations and confer certificates to trainers and
Trainees

Small Industries Service Institutes (SISI)

• Three months part time evening courses in management
• 4-6 weeks part time courses in intensive training in functional areas (marketing, finance)
• Special courses in quality control, HR, production planning, product development etc
• Mobile workshops imparting training on correct usage of tools and equipment
• Helps with preparation of plant layouts
• Helps individual firms on specific problems faced Small Industries Development Organisation
(SIDO)
• Runs EDP in collaboration with financial institutes, Directorate of industries
• Gives on the job training on shop floor (carpentry, electrical Devices)
• Sends its officials/trainers to organisations to update their
Knowledge

National Small Industries Corporation (NSIC)

• Provides apprenticeship for 2 years
• Training supervisory staff of SSI up to 2 years
• Training to engineers up to 2 years
• Training workmen for 12 months
• Training to set up own venture
• Advice on machinery and components
• Production of technologically advanced machines Entrepreneurship Development Institute of
India (EDII)
• Develops programmes for entrepreneurial training and development
• Develops innovative training techniques for trainers
• Focused attention on women entrepreneurs with first such EDP in 1988
• EDP for rural entrepreneurship development in U.P and Orissa
• Famous for organising camps on entrepreneurship
• Conducted EDP in Sri Lanka, Nepal, Ghana, Kenya etc

National Alliance of Young Entrepreneurs (NAYE)

• Contribution in encouraging women entrepreneurship
• Set up women’s wing in 1975
• This wing assists women in:
– Getting better access to resources, infrastructure, markets
– Identify investment opportunities
– Attending to problems of individual industries
– Sponsor participation in trade fairs, exhibitions, conferences
– Organise seminars, training programmes, workshops