Entrepreneurial Development

Programmes
1. Learning Outcome:

After studying this module the learners will be able to:

• Understand the concept of Entrepreneurial Development

Programmes (EDPs);
• Know the needs and objectives of EDPs;
• Explain the present status of EDPs in India;
• Understand the role, relevance, and effectiveness of EDPs in the
development of an entrepreneur;
• Describe the various phases of entrepreneurial development
programmes; and
• Highlight the challenges faced in the conduct of EDPs.

2. Introduction

Entrepreneurship provides the solution to many economic and social

problems and also acts as an engine of growth. Entrepreneurship has
become an important concern for many countries to achieve the status
of economic superpower. It is rightly said that if a country is able to
produce an entrepreneur from each of its family then economy of that
country would be sky rocket. Entrepreneurs generate employment,
contribute in national income, and fulfil the need of the customer and
society also. Entrepreneur is considered as one of the most important
input or component of economic development of any region as s/he
makes the real difference between the economic developments by
performing various functions. Economic development of an economy
rests on the growth of entrepreneurship. For the development of
entrepreneurship, entrepreneurs’ attitude and performance is the key.
Entrepreneurs’ competencies make the real difference to the rate of
economic and entrepreneurship growth. Entrepreneurial competencies
are the decisive factors for the success and failure of entrepreneurs.
Entrepreneurial competencies (discussed in module 12) help an
entrepreneur in meticulous planning, effective implementation, and
smooth operation of the enterprise. Competencies make an
entrepreneur creative and innovative who always searches for new
dimensions of business operations. But, the real problem is to make
entrepreneurs competent so that they can drive their enterprise in the
roads of success. Entrepreneurial Development Programmes (EDPs) are
considered as potential solution to these two problems. EDPs not only
help in development of entrepreneurship but also help in the
development of competencies among entrepreneurs. In the following
sections, you will discuss in details about the EDPs and its role and
relevance in the development of entrepreneur and entrepreneurship.

3. Concept of Entrepreneurial Development Programme (EDPs)

Entrepreneurial Development Programme (EDP)

means programme designed to develop entrepreneurial ability among
individuals. In other words, EDP means a programme which aims to
strengthen the entrepreneurial ability of prospective entrepreneur.
Entrepreneurial development programme helps a person in acquiring
skills and developing capabilities to play a role of an effective
entrepreneur. EDP refers to programme which inculcate, develop, and
polish the requisite skills into a prospective entrepreneur to establish
and run an enterprise. The concept of entrepreneurial development
programme refers to equip a person with the required knowledge and
skills and change the attitude of a person for running the business
successfully.A programme which achieves all the above mentioned tasks
called EDP. The programmes which provide necessary information and
inputs to prepared project reports and other documents not eligible to
be an EDP as their basic objective is not to develop entrepreneurship. A
programme which achieves the objectives like imparting necessary skills,
knowledge to run an enterprises and also touches the aspects of
entrepreneurial motivation and behavioural aspects of an entrepreneur
called entrepreneurial development programme.

National Institute of Small Industry Extension Training (NISIET),

Hyderabad defined EDP as “An attempt to develop a person as
entrepreneur through structural training. The main objective of such
entrepreneurship development programme is to develop the
entrepreneurship through increasing achievement motivation and
entrepreneurial skills among less privileged sections of the society.”
 On the basis of above definitions and concepts, we can say that EDP is
a planned process to identify, impart, develop, and sharpen the
competencies which are essentials to run a business among individuals
to become a successful entrepreneur.

An EDP consists following as an essential component:

1. Need of the programme
2. Main objectives of the programme
3. Design of the programme
4. Evaluation and feedback

4. Relevance of EDPs

To achieve developmental objectives, it is important to promote

entrepreneurship and that too in right directions. To promote
entrepreneurship, attracting and motivating entrepreneurs is the first
step and if entrepreneurs are attracted and motivated than successfully
running enterprises is another challenge. Entrepreneurs require some
basic characteristics to establish and run an enterprise. Sometimes
entrepreneurs able to identify those underlying characteristics and
sometimes they don’t. To identify and developing those underlying
characteristics, EDPs are very essential as proved by D. McClelland
through famous Kakinada Experiment. In Kakinada experiment, a proper
training was provided to young persons and after experiment, it was
found that they were highly motivated to start their own entrepreneurial
activity. This experiment concluded that training through
entrepreneurial development programme can develop need for
achievement and high motivation and these has positive impactson the
performance of entrepreneurs. Other than high motivation and need for
achievement, entrepreneurs’ required necessary competencies to
achieve success in their initiatives. Competencies are underlying
characteristics of a person and behavioural aspect of an individual. Basic
components of competencies are knowledge, skills, and motivation. To
inculcate necessary knowledge and skills, EDPs are very helpful as
proved in many researches.

5. Objectives of EDPs

The main aims and objectives of entrepreneurial development

programmes are as follow:
 i. Develop entrepreneurship and strengthen the entrepreneurial
base and quality.
ii. Promote and develop small scale businesses that encourage self
employment.
iii. Analysing surrounding environment to identify the opportunities
lying in the environmental set up.
iv. Help prospective entrepreneurs to select the type of business and
product to run an enterprise.
v. Train individuals to prepare project proposal or business plans.
vi. Educate prospective entrepreneurs about the process of setting
an enterprise.
vii. Inform about the sources from where entrepreneurs can get the
financial and other supports for starting an entrepreneurial activity.
viii. Developing the entrepreneurial competencies which result in
superior business performance.
ix. Identification of necessary characteristics of entrepreneurship
and inculcate the required ones.
x. Develop first-generation entrepreneurs who want to start their
own business, but required some guidance and assistance.
xi. To establish the fact that entrepreneurs are made, not born.
xii. Helps an entrepreneur to choose the best business idea or
in establishment of enterprise.
xiii. Develop an entrepreneur so that s/he can select the best location
and identify the target customers for business.
xiv. To motivate an entrepreneur or develop high need achievement.
xv. To impart necessary knowledge and skills to successfully run an
enterprise.
xvi. To know the relative advantages and disadvantages of choosing
entrepreneurship.
xvii. Preparing entrepreneurs to deal with the uncertainty in world of
entrepreneurship.
xviii. Develop the broad vision about the entrepreneurship.
xix. Develop passion for entrepreneurship, dedication,
determination and honesty for business.
xx. Making aware about the various policies, schemes, and statutory
regulations of government for entrepreneurship.
xxi. Inculcating basic managerial skills which are pre-requisites of
entrepreneurship.
xxii. Prepare entrepreneurs to take fast, accurate, andstrategic
decisions.
 xxiii. Enable prospective entrepreneurs to accept the challenges and
unforeseen risks of entrepreneurship.

Some other objectives are:

i. Accelerate the pace of economic and industrial development.

ii. Transform the Indian economy.
iii. Develop the entrepreneurial culture in the society.
iv. Develop the sense of social responsibility among prospective
entrepreneurs.

6. EDPs in India: An Overview

After getting the freedom, govt. realised the importance of economic

freedom and has been trying very hard to solve the problems of vast
unemployment, poverty, heavy dependence on agriculture, and regional
imbalances. Policy makers identified small scale business as
an alternate to get rid of above mentioned problems and to boost the
economic development process. Since then, this sector is recognised as
an employment generation tool. To speed up the process of
entrepreneurial development, government decided to provide special
incentives and promotional packages to entrepreneurs. These packages
were included financial assistance, providing infrastructural support,
technical and managerial assistance through various agencies of the
government. After
launching series of promotional programme, government did not get
the desired and expected growth of entrepreneurship and
finally realised that promotional packages are necessary but not enough
to foster the entrepreneurship. Therefore, focus was shifted towards the
development of prospective entrepreneurs or human capabilities and
concept of entrepreneurial development programme was emerged. The
first step in this process was the establishment of Small Industry
Extension and Training Institute (SIET), Hyderabad in 1962, now known
as NISIET. This institute in collaboration with
famous behavioural scientist David.C.McClelland conducted famous
Kakinada experiment and proved that through proper education and
training, necessary competencies (including knowledge, skills, and need
for achievement) can be developed in an entrepreneur. This step laid
down the foundation of entrepreneurship development programme and
now has been become a movement as entrepreneurial development
programme in India.

Recognising the relevance of entrepreneurial development

programme, Gujarat Industrial Investment Institutions launched a
detailed three month training programme for entrepreneurs to develop
entrepreneurship. The motto of the programme was to identify and
promote the young talent of potential entrepreneurs. This programme
was focused on main areas like; development of small enterprises,
management of business, and generate sufficient profit through small
business ideas.

Another initiative in this direction was establishment of North Eastern

Council (NEC) to promote entrepreneurship in North Eastern States of
the country. Later on, North Eastern Industrial and Technical
Consultancy Organisation (NEITCO) and after that Entrepreneurial
Motivation Training Centre (EMTC) were established in the region to
boost the process of entrepreneurship.

After these initiatives various institutions were set up under the

initiatives of entrepreneurship development programmes (EDPs) like
EDIIs, SIDO, and National Institute for Entrepreneurship and Small
Business Development (NIESBUD), etc. All these institutions are trying
to make entrepreneurial development programmes as a movement to
develop the entrepreneurship in the country so as to achieve the
economic development objectives.

7. Structure of EDPs

EDPs are well planned and well organised efforts to develop the
entrepreneurs. There is well devised structure of each EDPs and
generally organised for the duration of six-weeks. It covers the following
components to meet the objectives:

i. Awareness about entrepreneurship: During EDPs, first of all, all the

participants, who are prospective entrepreneurs, need to be familiarised
with the world of entrepreneurship. All must get information about the
various aspects of business, pros & cons, and their role in
entrepreneurship.
 ii. Behavioural Training: Along with awareness about
entrepreneurship, prospective entrepreneurs should go through
the behavioural training. The main aim of this training is to induce the
high need for achievement and inject confidence among entrepreneurs
to take initiative to establish enterprise. It is their behaviour, which
makes the difference in success and failure of the enterprise.

iii. Inculcating Skills:Only competent entrepreneur can succeed in his

venture. For the long run survival, entrepreneurs should be imparted
with necessary knowledge and skills during the entrepreneurial
development programmes. Various types of skills like technical,
managerial, human resource and operational skills are required to
become a successful entrepreneur.

iv. Knowledge about process and services: The prospective

entrepreneurs must be informed about the process of setting an
enterprise and support services available to them to implement their
ideas. They need to inform about the various government agencies and
the process of approaching them to get necessary assistance.

v. Business Plan and Feasibility Analysis: After knowing the basics

of entrepreneurship, prospective entrepreneurs need to educate about
the preparation of business plan and further analysing the feasibility of
that plan. They must be educated about the various aspects of business
plan and parameters on which plan is evaluated.

vi. Practical Exposure:To get the practical exposure, entrepreneurs

are exposed with real life situations during EDPs. This step helps them
to familiarise with practical environment, personality of entrepreneur,
his/her attitude, behaviour, and approach towards entrepreneurship.

The ultimate aim of EDPs is to train individuals to start their own

business after the completion of programme.

8. Stages/ Phases of Entrepreneurial Development Programmes

(EDPs)

Entrepreneurial Development Programme is divided into various

stages to fulfil its objectives and following are the stages of EDPs:
 i. Pre-Training Phase: During this phase of EDPs, preparation of
conduct is done. This stage of EDP includes:

• Identification and selection of prospective entrepreneurs through

various procedures like conducting psychological test, thematic
aptitude test, and interviews, etc.
• Arrangements of necessary equipments and sources
to organise the programme.
• Formation of various committees for the smooth conduct of
training programme.
• Pre-survey of potential entrepreneurial opportunities.
• Devising the course content for the programme.

ii. Training Phase: At this stage, prospective entrepreneurs are

provided with the necessary training to run the enterprise successfully.
During training phase, efforts are made to change the behaviour and
attitude of the entrepreneurs. Focus is on development of need for high
achievement or motivation to take initiatives and become a successful
entrepreneur. This phase aims at answering questions like; what are his
basic traits, what kind of competencies s/he requires, how s/he behaves
in complicated situations, what kind of knowledge and skills trainees
possess. During this phase, trainees are also exposed to the practical
situations and completed many tasks which are required to set up an
enterprise.
iii. Evaluation Phase: Whether the underlying objectives of the EDP
are achieved or not? This evaluation is done at this phase of
entrepreneurial development programme. At this phase, assessment is
done about the entrepreneurial orientation of the participants. It is
evaluated that how far prospective entrepreneurs are ready to start their
own enterprise. During the follow-up process, review of various
components of EDPs is done. These components include; pre-training
components, course contents of programme, satisfaction of
entrepreneurs, and post-training behaviour of prospective
entrepreneurs.

9. Challenges for Entrepreneurial Development Programmes (EDPs)

No doubts, entrepreneurial development programmes (EDPs) are

shaping the aspirations of prospective entrepreneurs and
contributing in the development of entrepreneurship. If all the
underlying objectives of EDPs are achieved, then India can achieve the
status of entrepreneurial society. But, EDPs suffer from many problems
and faced following challenges to achieve the desired results:
i. Low motivation level of trainers as well as trainee during the
training.
ii. Lack of commitment, dedication, determination, and sincerity
in conduct of EDPs and low level of involvement and lack of active
participation of trainees.
iii. Proper planning and non-conducive environment of
entrepreneurial development programme.
iv. Lack of coordination between the organiser and supportive
agencies like banks and other institutions.
v. Poor implementation of planning.
vi. Pre-decided course contents and lack of adaptive training
modules.
vii. Lack of monitoring and proper evaluation of feedback.
viii. Lack of after training assessment of prospective entrepreneurs and
non-consideration of entrepreneurs’ feedback.

10. Myths About Entrepreneurial Development Programmes

EDPs are potential solution to boost the entrepreneurship and also

contribute in motivation of prospective entrepreneurs. People assume
that EDPs would solve all the issues of entrepreneurship. Lack of
understanding and non-clarity of objectives of EDPs limits its growth.
There are following misconceptions/myths about entrepreneurial
development programmes:
i. Most of prospective entrepreneurs believe that mere joining of an
entrepreneurial development programme will solve all the problems of
entrepreneurs.
ii. People considers EDPs as training programme whereas, training is
one part of the EDPs. It also covers other aspects of entrepreneurship.
iii. People often link the success of EDPs with the number of
participants. There is myth about EDPs that higher will be number,
better will be the EDP.
iv. Participants think that success of EDPs is the sole responsibility of
trainers, motivators, organisers.
v. Huge financial support to organiser and trainers. Whereas, these
are national income and public money.
 vi. Waste the resources as it belong to government and government is
responsible to manage all the resources.

11. Summary

It is well established and recognised fact that development of

entrepreneurship is the need of the hour. Entrepreneurship
development heavily relies on entrepreneurial attitude and behaviour.
Attitude and behaviour of entrepreneurs can be developed through
appropriately designed entrepreneurial development programmes.
Entrepreneurial development programmes involve three basic attributes
and these are; development of need for high achievement, identifying,
developing, and sharpening entrepreneurial competencies, and
guidance and assistance on opportunities identification, process of
entrepreneurship, and project planning an implementation. The basic
objectives of entrepreneurial development programme are to foster
entrepreneurship and motivation of entrepreneurs so that they can
initiate their own entrepreneurial activities.Government proactive
approach and support is essential to make EDPs successful and a
movement also. EDPs cover various components to fulfil its basic
objectives like awareness about entrepreneurship, motivation, training,
practical exposure, feedback etc. Generally, EDP is divided into three
phases which include; pre-training, training and post-training part.
Course contents and its coverage must be in tune with its objectives and
should cover general introduction of business, inducement of
motivation, inculcation of requisite skills, procedure involved and
fundamentals of feasibility analysis. EDPs ignite one’s own need for high
achievement and activate internal stimuli to start own business. There
are many misconceptions about entrepreneurial development
programmes among participants and general public. To ensure the
success of entrepreneurial development programme, proper planning,
effective execution, and active participation of participants is the key.
Assessment and evaluation of EDPs may help in the growth of
entrepreneurship. The simplest and best method of evaluation of EDPs
is to find out how many participants have started their own
entrepreneurial activities after completing the entrepreneurial
development programme. Entrepreneurial development
programme have faced many challenges like low motivation of trainers
as well as participants. These must be addressed to achieve the
objectives of entrepreneurial development programmes.