UNIT-3

Entrepreneur Skills:

While becoming a successful entrepreneur is natural for some, others

require certain essential skills to start and lead a business to success.
These skills determine your entrepreneurial success. Successful
entrepreneurs have mastery over both hard and soft skills. Hard skills like
accounting, marketing and financial planning are critical for running and
managing a business and soft skills like communication, problem-solving
and decision making help you scale up your business. Mastery of
entrepreneur skills requires practice and a dedicated learning plan.

Entrepreneur skills include various skill sets such as leadership, business

management, time management, creative thinking and problem-solving.
You can apply these skills in many job roles and industries. These
entrepreneur skills are vital for promoting innovation, business growth
and competitiveness. Developing these skills means developing many
skills together. For example, to be a successful entrepreneur, you may
need to develop your risk-taking skills and sharpen your business
management skills.

Examples of entrepreneur skills

Often, entrepreneurs may take up several roles to build and grow a

business. This requires a variety of skill set. Here are a few examples of
entrepreneur skills you must develop and master:

Business management skills

Business management skills are traits an entrepreneur must have to run a

business and ensure all business goals are met. Entrepreneurs with this
skill set can oversee and manage operations of different departments
because they possess a good understanding of each function. Business
management skills include multitasking, delegating responsibilities and
making critical business decisions.

Communication and active listening skills

Every entrepreneur must be able to communicate effectively with clients,

team members and all other stakeholders. Whether through verbal
communication during meetings or sending reports and messages through
emails about the project, entrepreneurs require superior written and
verbal communication. Apart from communication skills, entrepreneurs
must be excellent listeners to understand the project's requirement and
discussion during project meetings.
Risk-taking skills

Being able to take calculated and intelligent risks is one of the essential
entrepreneur skills to learn. Employees with an entrepreneur mindset
never shy away from taking risks because they understand that calculated
risks result in tremendous success. They know that risk is an opportunity
to learn and grow a business to the next level. Employers want candidates
who can take risks in pursuit of potential gains and profit.

Networking skills

Networking involves building and managing relationship with other

professionals to grow and promote a business. Effective networking skills
open up future opportunities and help build a solid brand. Networking
allows entrepreneurs to meet like-minded professionals, build future
teams and stay up-to-date with industry trends. It is one of the most
desirable skills for entrepreneurs because, through a solid network, they
can meet professionals to fund their ideas, access professional business
expertise and get feedback on their new venture or idea.

Critical thinking skills

Critical thinking is an entrepreneur skill that objectively analyses the

information and draws a rational conclusion. It helps entrepreneurs assess
a situation and come up with a logical solution. Employers look for
candidates with critical thinking because it helps solve problems and build
strategies for business growth. Usually, a critical thinker is independent,
competent and reflective. This skill helps entrepreneurs logically connect
ideas, scrutinise information, evaluate arguments, find inconsistencies in
work and solve complex issues. Instead of memorising information, such
candidates use the information to deduce meaningful insights.

Problem-solving skills

Often, entrepreneurs face challenging and unexpected situations. It could

be a venture capitalist refusing further funding or a team member
refusing to work as per the project guidelines; an entrepreneur must
possess excellent problem-solving skills to handle stressful situations and
calmly identify alternate solutions. Exceptional problem-solving skills
ensure they reach their business goal.

Creative thinking skills

Creativity is a valuable yet underappreciated skill in the digital world.

Creative thinking is the backbone for innovation and it forces employees
to think differently. Entrepreneurs with creative thinking skills are never
hesitant to try solutions that others may overlook because of fear of
failure. Such people think out-of-the-box and always seek input from
professionals in a different field for understanding a new perspective. It is
one of the most sought-after entrepreneur skills because it allows them to
see patterns (even when there are no patterns) and develop innovative
ways to solve business issues.

Customer service skills

Quality customer service promotes the brand and increases loyalty.

Regardless of the industry, excellent customer service skills are essential
for business success. From talking to clients to discussing funding
opportunities, customer service skills help entrepreneurs connect with
their potential customers.

Financial skills

The ability to handle resources, assess investments, calculate ROI is a

must for entrepreneurs. Apart from this, they must know how to use
accounting and budgeting software to keep track of all the financial
processes. By learning financial skills, entrepreneurs avoid overspending
and optimally allocate resources.

Leadership skills

Being able to inspire colleagues, empower the workforce and lead from
the front requires excellent leadership skills. Exemplary leaders lead by
examples and can take a leadership role and work as a part of a team.
Entrepreneurs with leadership skills motivate their employees, manage
operations and delegate tasks to reach the business goal.

Time management and organisational skills

Effective time management increases productivity and organises your

workspace. Entrepreneurs with time management and organisational skills
understand different ways to prioritise tasks and avoid procrastination. For
ensuring timely completion of projects, entrepreneurs analyse their and
their team's time, set time limit for each task, complete priority tasks first,
delegate work to others, create a to-do list and use technology to keep
the workspace organised.

Technical skills

Technical skills are hard skills that are gained by using digital tools and
software. Entrepreneurs must know how to use planning, marketing and
budgeting software. Knowledge of software helps in managing projects,
tracking sales and allocating a viable budget for the project.
How to improve entrepreneur skills

Mastery of these entrepreneur skills can help you outperform at your job
and steer your business to success. To improve your skills, you may read
books, take a course or attend seminars. Here are some steps you must
follow to improve your entrepreneur skills:

1. Read business books

Reading books encourages self-improvement and is an excellent way to

get advice on effective business strategies. It improve your cognitive
ability, increases your decision-making and you get to learn from the
failure of others. Therefore, read books to achieve success as an
entrepreneur.

2. Enrol in a course

Another way to sharpen your skill set is by enrolling in a management,

marketing or finance course. Taking and completing a professional course
may help boost your business management and financial planning skills.

3. Attend workshops

Always attend entrepreneurial workshops and networking events. Many of

these workshops may have experienced business owners as speakers. It
helps fill the knowledge gap and you may gain valuable insights on how to
run your business to success. Such workshops are a great way to build
networks and talk with industry leaders.

4. Listen to podcasts

One of the best ways to consume business-related information on a busy

day is listening to a podcast of successful entrepreneurs. Listening to
business podcasts may give you insights into how different entrepreneurs
use technology to speed up their business growth. It also improves your
listening skills.

5. Hire an experienced business mentor

Experienced mentors can help you develop the skills that you are lacking.
You can either work under a successful business owner for some time to
understand how to manage a business. You can also meet up regularly
with a professional group of like-minded people and discuss different ways
of building and marketing a brand. Mentors help in providing valuable
insights and professional advice that is necessary for success.
Competencies Needed For Entrepreneurship

An entrepreneur must know his / her skills, attitudes and strengths and
weaknesses. Here you will find the most important competencies for
entrepreneurs and an entrepreneur test. Read on to find out what the
most important entrepreneurial skills are …

Let’s start with the most important competencies. Below you will find the
entrepreneur test.

Competence 1 – Originality and creativity

An entrepreneur solves problems. And that requires originality and

creativity. And those problems that you solve are not only in the product
or service that you devise and deliver for your customers … you will also
encounter problems (obstacles) in the day-to-day business, and for that
too you will need originality and creativity. use to overcome them.

An entrepreneur dares to be original. That is required to achieve

something with marketing.

Competency 2 – Execution / decisiveness

An entrepreneur with nothing but talk and no action will see things
collapse. Sooner or later we have to roll up our sleeves and build up a
really good solution. An entrepreneur boldly expresses new ideas.

Do whatever you can do. Or dream that you can. Boldness is a mixture of
genius, power and magic.
– JW von Goethe

Competency 3 – Ingenuity

An entrepreneur discovers new methods or new ways of solving

problems. Use your creativity to bring something new into the world.

Competency 4 – Responsibility

Entrepreneurs get a lot on their plate. You will regularly have to deal with
large amounts of money and promises, for example to deliver a customer
what was agreed.

You are also responsible for yourself and your work

attitude. Entrepreneurs must motivate themselves, for example to get out
of bed in the morning. Employees have to report in the morning, which is
a powerful motivation to get out of bed and get on a bike. Entrepreneurs
often miss that, including the interaction that colleagues give you. Can
you handle this yourself?

Competency 5 – Proactive behavior

There will be no one who will ask you to do anything. Let alone having
someone remind you to move forward. An entrepreneur must therefore
have the quality of ‘being proactive’ . As an entrepreneur you cannot wait
for others to take action. You will have to fulfill this role for yourself

Competency 6 – Optimism

An entrepreneur always sees new opportunities. He always has options

ready to try something different in the event of setbacks. In other words,
an entrepreneur is optimistic and resilient.

Entrepreneurs see problems as opportunities.

Competence 7 – Enthusiasm & Trust

An entrepreneur must engage in his duties with complete

enthusiasm. Otherwise the competitors will just pass you by. You also
need to have confidence that it will succeed, because if you don’t trust it,
how should your customers trust you?

Uncertainty is part of entrepreneurship. Do you have the confidence that

it will work out?

Competency 8 – Focus

Focus means doing one thing and leaving the rest . In fact, the most
successful entrepreneurs think about their company 24/7. Are you one of
those too? You don’t have to mind that you constantly think about your
company. It’s fun, your passion and your life!

How to encourage entrepreneurial competency skills in

employees

Developing entrepreneurial competencies offers two benefits – it helps

employees move from individual roles to management roles and allows
the organization to flourish and take more giant strides ahead. So, here
are the innovative ways in which an organization can
encourage entrepreneurial competencies in its employees.

 Allow knowledge sharing

This is one of the most important ways you can groom entrepreneurs
within the organization. Make sure knowledge is available freely for those
who pursue it. Diversity of knowledge is what makes a person holistically
developed. Employees should have a basic idea of how most other teams
and the organization’s business function. Learning programs need to be
offered regularly, without hesitation.

 Initiate programs that foster creativity and fresh ideas

There are organizations that host town halls just to get fresh ideas and
thoughts from employees. Employees are asked to speak their minds
here, and new ideas are jotted down. This makes employees feel like they
matter. It also helps the organization to identify those with
entrepreneurial skills easily and get smart ideas that may work.

 Allow ownership
Having someone to monitor employees is a good idea. However,
micromanagement can turn out to be negative for the employee’s spirits.
Make sure you create the sense of ownership in employees, letting them
take smaller decisions themselves and deal with clients with minimal
monitoring. Hire managers who believe in this process to ensure
employees get the freedom that allows them to foster entrepreneurial
competencies.

 Create an atmosphere of security and protection

Many employees don’t take risks or don’t go the extra mile because they
fear things going wrong. What would happen to their jobs if their decisions
didn’t work? Will they be blamed if their choices go wrong?

All entrepreneurs make choices and decisions and own them, whether
they worked or not. However, employees have the added pressure of
being accountable to the management. So, they would hesitate to do this
unless they know that the management trusts them and would not shift
blame if a decision didn’t work.

If you want employees to develop entrepreneurial competencies, then let

them know that making mistakes is alright and that the organization will
back them up and help rectify damages. Creating that kind of a
psychologically secure atmosphere is very important.

Conclusion

You can do two things to foster entrepreneurial competencies in the

workforce – hire individuals who show entrepreneurial zeal or have had
past experiences handling businesses or invest in training and learning
programs to promote the same in your existing employees.

Make sure there are a couple of employees with a high entrepreneurial

spirit in every team to help others grow and be productive. These
employees will constantly think about ways to uplift their team and their
processes and, as a result, help the organization grow too. Employees
with an entrepreneurial spirit are assets to the organization, and their
skills need to be valued, appreciated, rewarded, and nurtured.

How to think like an entrepreneur: 20 entrepreneurial mindset

characteristics

If you want to learn how to build an entrepreneurial mindset, you need to

know how successful entrepreneurs think. So, let’s take a closer look at 20
essential entrepreneurial mindset characteristics.

1. Independent

This is one of the most important aspects of the entrepreneurial mindset.

Entrepreneurs don’t follow the crowd or look to others to be given

instructions. Instead, they listen to their gut and carve their own path.

As Apple’s founder, Steve Jobs, said, “Don’t let the noise of others’
opinions drown out your own inner voice.”

2. Responsible

The independent mindset of successful entrepreneurs stems from taking

full responsibility.

Entrepreneurs don’t blame others for their life situation—they empower

themselves by taking responsibility for improving it.

Failure, success, life circumstances—it doesn’t matter what it is. Even if

something isn’t your fault, by taking responsibility for it, you’re
empowered to improve it.

3. Abundant

A key to entrepreneurial success is abundance.

Successful entrepreneurs know they can improve a situation, make more

money, and create new opportunities.

The sky is always the limit.

As a result, entrepreneurs don’t hoard money or knowledge. They’re open,
generous, and understand that “you get what you give.”

The author and entrepreneur Robert Kiyosaki once wrote, “I have never
met a rich person who has never lost any money. But I have met a lot of
poor people who have never lost a dime.”

4. Goal-oriented

Entrepreneurial thinking is goal-orientated.

In other words, successful entrepreneurs don’t have wishes and dreams—

they have goals and plans.

So, when creating an entrepreneurial mindset, set SMART goals—goals

that are:

 Specific
 Measurable
 Attainable
 Relevant
 Time sensitive
5. Not afraid of failure

When learning how to think like an entrepreneur, you need to look at

failure differently than most people.

Entrepreneurs don’t fear failure—they appreciate it.

Each “failure” is simply a stepping stone to learn from, helping move you
closer to success. As the famous inventor Thomas Edison said, “I have not
failed. I’ve just found 10,000 ways that won’t work.”

Failing at something certainly doesn’t mean that you’re a failure—just that

something didn’t work out as you’d hoped, and you need to try again.

6. Growth-oriented

Stanford University psychologist Dr. Carol Dweck studied failure and said,
“For 20 years, my research has shown that the view you adopt for yourself
profoundly affects the way you lead your life.”

Specifically, she found that there are two main types of mindset: fixed and
growth.
Someone with a fixed mindset believes that who they are is relatively
permanent and they can’t change very much.

The entrepreneur mindset is growth-oriented.

Entrepreneurs believe they can grow as people, learn new things, and
develop new skills. They believe that—with some consistent effort—they
can shape themselves into whomever they want to be.

The bestselling author and entrepreneur Hal Elrod said, “Your level of
success will rarely exceed your level of personal development, because
success is something you attract by the person you become.”

In other words, personal growth tends to create success. So, keep trying
to improve yourself.

7. Feedback-seeking

The most successful entrepreneurs aren’t worried about looking cool—

they just want to succeed, and they know that learning from feedback will
help speed up the process.

Dweck said, “Why waste time proving over and over how great you are,
when you could be getting better?”

In short, don’t look for validation, seek feedback.

8. Learning-oriented

Most people spend their spare time seeking entertainment, whether it’s
through social media, Netflix, gaming, reading novels, or hanging with
friends.

However, entrepreneurial thinking is more concerned with learning and

development. For example:

 Instead of watching TV, entrepreneurs may take an online course to

help them move toward their goals.
 Instead of gaming, entrepreneurs will often spend hours tweaking
their sales funnel.
 And instead of scrolling through social media, entrepreneurs are
more likely to listen to motivational podcasts or read business
books.
As the entrepreneur and speaker Jim Rohn said, “Formal education will
make you a living; self education will make you a fortune.”

9. Forward-thinking
If you want to learn how to think like an entrepreneur, you need to think
long term.

The famous billionaire investor Warren Buffett said, “Someone is sitting in

the shade today because someone planted a tree a long time ago.”

Successful entrepreneurs know that big goals take a long time to achieve.
So, they start with their goal and work backward, reverse-engineering
every step of the way. In other words, “If I want this, I need to do that. But
to do that, I need to do this,” and so on.

They keep working and are patient when it comes to rewards—they know
that the tortoise always beats the hare.

10. Self-accepting

Many people struggle with self-acceptance. When you don’t like

something about yourself, it’s easy to devalue or even hate yourself.

But if you develop a growth mindset, you know you can always change
and improve.

So, successful entrepreneurs accept themselves as they are, warts and

all. They know who they are is transient, and they’re working on becoming
the person they want to be.

11. Self-aware

Entrepreneurs know that the only thing holding us back is ourselves

(because they take full responsibility, remember!).

As a result, they practice self-awareness.

They pay close attention to their strengths and weaknesses, which allows
them to improve faster and play to their strengths.

12. Collaborative

Great businesses require teamwork—after all, Jeff Bezos didn’t build

Amazon alone. So, if you want to think like an entrepreneur, you need to
think in terms of “we” instead of “I.”

There’s an African proverb that says, “If you want to go fast, go alone. If
you want to go far, go together.”

As a result, successful entrepreneurs think collaboratively and practice

their leadership skills.13. Courageous

It’s not easy to become a business owner.

As the famous management consultant Peter Drucker said, “Whenever
you see a successful business, someone once made a courageous
decision.”

But this doesn’t mean entrepreneurs don’t have self-doubt.

Nelson Mandela, the activist and former president of South Africa,

explained, “I learned that courage was not the absence of fear, but the
triumph over it.”

14. Comfortable with discomfort

Courage leads to an essential entrepreneurial mindset characteristic:

learning to be comfortable with discomfort.

Growth and expansion require you to move beyond your comfort zone. So,
when developing an entrepreneurial mindset, practice leaning into
uncomfortable situations, such as rejection.

For example, after realizing his fear of rejection was holding him back, the
entrepreneur and keynote speaker Jia Jiang spent 100 days getting
rejected on purpose.

15. Adaptable

Entrepreneurs have big goals, and they know it’s impossible to see the
entire staircase before climbing. But they climb anyway, safe in the
knowledge that they can always adapt to new developments.

For example, if your first product fails, try another one. And if
your Facebook ads still don’t generate sales, hone your skills.

16. Problem-solving

Entrepreneurs develop critical thinking and try to solve problems.

If you think about it, this is the essence of every business. For instance,
plumbers fix broken pipes, Netflix cures boredom, and car manufacturers
help people get around.

Brian Chesky, the co-founder of Airbnb, said, “If we tried to think of a good
idea, we wouldn’t have been able to think of a good idea. You just have to
find the solution for a problem in your own life.”

17. Driven and tenacious

Drive is an essential part of the entrepreneurial mind. Entrepreneurs are

self-motivated and driven to achieve their goals. They work hard and
enjoy the ride, knowing that they’ll reap the rewards down the line.
The entrepreneur Mark Cuban said, “It’s not about money or connections.
It’s the willingness to outwork and outlearn everyone when it comes to
your business.”

Similarly, entrepreneurs set out to achieve their goals come hell or high
water. When the going gets tough, they stick with it—they don’t give up.

As Henry Ford said, “When everything seems to be going against you,

remember that the airplane takes off against the wind, not with it.”

18. Focused

Successful entrepreneurs are focused on achieving their goals, never

procrastinate, and always prioritize the most important tasks.

To do this, ask yourself, “Will this help me to achieve my long-term

goals?” If the answer is yes, then ask, “Is this the most important thing to
do right now?”

19. Action-oriented

“Wantrepreneurs” like to read books, watch videos, and make plans, but
they never actually get down to business and work.

Aspiring entrepreneurs have a bias for action. They know that knowledge
without action is meaningless. As the animator and entrepreneur Walt
Disney said, “The way to get started is to quit talking and begin doing.”

20. Decisive

The entrepreneurial mind is decisive.

Entrepreneurs must confront problems and make many decisions every

day—often with inadequate information to help.

Entrepreneurship Development Process

Entrepreneurship is the dynamic process of recognizing opportunities in

the market, gathering and managing essential resources like land, labour,
and capital, and taking calculated risks to pursue these profit
opportunities. Entrepreneurs are innovative risk-takers who combine
factors of production at certain prices to supply products or services and
sell them at uncertain prices. Their ultimate aim is to earn profits by
introducing new ideas and creating value in the market. In this context,
the enterprise is the organisation or undertaking established for
entrepreneurial activities. This process involves dealing with uncertainty
and embracing risk while striving to achieve financial success through
innovative ventures.

Entrepreneurship Development Programme (EDP)

Entrepreneurship Development Programme means a programme

conducted to help a person in strengthening his entrepreneurship 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,
motivational pattern, their impact on behaviour and entrepreneurship
value is termed as entrepreneurship development programme.

There are a number of programmes which give information to the

prospective entrepreneurs regarding new business ideas, how to set up a
new venture, how to prepare a project report, sources of finance etc.
These programmes should not be confused with EDP; these are all a part
of EDP. EDP is primarily concerned with developing, motivating
entrepreneurship talent and understanding the impact of motivation on
behaviour.

A well designed EDP envisages three tiered approach:

1. Developing achievement motivation and sharpening

entrepreneurship traits and behaviour.
2. Guidance on industrial opportunities, incentives, facilities, rules and
regulations.
3. Developing managerial and operational capabilities.

Meaning of Entrepreneurship Development Programme (EPD)

Entrepreneurship development programme is designed to help a person in

strengthening and fulfilling his entrepreneurship motive and in acquiring
skills and capabilities necessary for playing his entrepreneurship role
effectively. Towards this end it is necessary to promote his understanding
of motives, motivation patterns, their impact on behaviour and
entrepreneurship value. A programme, which seeks to do this, can qualify
to be called as EDP.
EDP is a programme designed to help a person in strengthening his
entrepreneurship motive and in acquiring skills and abilities necessary for
playing his entrepreneurship role effectively.

EDP is defined as a programme designed to help an individual in

strengthening his entrepreneurship motive and in acquiring skills and
capabilities necessary for playing his entrepreneurship role effectively.

EDP is defined as a process which instils entrepreneurship behaviour in

the minds of entrepreneurs in their day-to-day activities.

The entrepreneurship Development Programme is not merely a timing

programme. It is a process of enhancing the motivation, knowledge and
skills of the potential entrepreneurs or arousing the entrepreneurship
behaviour of their day to day activities. These are necessary to promote
this understanding of motives and their impact on entrepreneurship
values and behaviour for this purpose.

Despite several facilities and concessions, the desired target group could
not be attracted towards self-employment. Lack of proper integration
between person, project and policy was the main cause of failure. In that
situation the entrepreneurship development programmes play a crucial
role.

Features of Entrepreneurship Development Programme (EDP)

The basic features of the entrepreneurship development programme has

gone through several modifications over time as:

1. Identification and careful selection of entrepreneurs for training;

2. Developing the entrepreneurship capabilities of the trainee;
3. Equipping the trainee with the basic managerial understanding and
strategies;
4. Ensuring a viable industrial project for each potential entrepreneur;
5. Helping him to secure the necessary financial, infrastructural and
related assistance; and
6. Training cost is highly subsidised and only a token fee is charged. A
deposit is, however, taken to ensure commitment of participants.
Need of Entrepreneurship Development Programme

Entrepreneurship Development Programme means a programme

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

The need of EDP is as follows:

1. It helps in developing entrepreneurs

2. It helps entrepreneurs in developing and improving their skills
3. EDP is a tool of industrialisation and path to economic growth
through entrepreneurship
4. EDP helps in dispersal of economic activities in different regions by
providing training and other support to local people
5. It provides opportunities for self-employment and entrepreneurship
careers
6. EDP develops motivation, competence and skills necessary for
successful launching, management and growth of the enterprise
7. EDP, by inculcating entrepreneurship capabilities and skill in the
trainees, creates a new generation of entrepreneurs
Importance of Entrepreneurship Development Programme

EDP can be beneficial in the following ways:

1. Economic Growth:

EDP is a tool of industrialisation and path to economic growth through

entrepreneurship.

2. Balanced Regional Development:

EDP helps in dispersal of economic activities in different regions by

providing training and other support to local people.

3. Eliminates Poverty and Unemployment:

EDPs provide opportunities for self-employment and entrepreneurship

careers.

4. Optimum use of Local Resources:

The optimum use of natural, financial and human resources can be made
in a country by training and educating the entrepreneurs.

5. Successful Launching of New Unit:

EDP develops motivation, competence and skills necessary for successful

launching, management and growth of the enterprise.

Steps of Entrepreneurship Development Programme (EDP)

The steps of EDP are as follows:

1. Outline the objectives of the program and focus on venture

development:

Entrepreneurship development aims at individuals who want to start or

possibly expand a business. The aims of a program have to be clearly
explained otherwise the program will never reach its full potential.

2. Select people who have high entrepreneurship potential:

An entrepreneurship development program requires that various people

be selected. However, most programs tend to look for a specific group of
educated people rather than target everyone. Ideally, you have to look at
the education and traits that you are looking for, in an entrepreneur, and
match them with the people who have applied for the program.

3.Select uneducated people who have high entrepreneurship potential:

Even though many people are uneducated, they have great

entrepreneurship potential because they have the right motivation. Such
people need to be aided by assistance packages where training can be
given on entrepreneurship. This will instil confidence and teach them the
skills they need in order to provide for their family.

4. Identify the local market and search for people who have potential in it:

By concentrating on selecting local entrepreneurs, the effects of the

program can be easily and quickly seen within the community.

5. Provide support through private sector based organisations:

By concentrating on selecting local entrepreneurs, the effects of the

program can be easily and quickly seen within the community. They help
reduce the cost of the entrepreneurship development program and
increase its effectiveness.
6. Provide a methodology that will help in improving the entrepreneurs in
the short as well as long run:

Entrepreneur development training proves to be highly effective when

finance, quality assurance, marketing and productivity are linked to the
training program.

7. Implement measures to improve usefulness of trainers and facilitators:

Training facilitators can significantly improve their usefulness in tackling

the needs of entrepreneurs.

8. Selection of areas for pilot program:

Selecting pilot target areas will usually depend on the ease at which
support institutions are available. It will also depend on the interest
people take in entrepreneurship development programs. These facts can
never be the same for any two geographical locations and hence must be
considered carefully.

9. Launch pilot ED programs:

Analysing pilot feasibility is an effective way of launching a major

entrepreneurship development program. If the program shows signs of
high promise, it can be launched on a national level.

10. Government policies:

Government policies usually have a substantial impact on the number of

entrepreneurs in a country.

Phases of Entrepreneurship Development Programme

Thus, the process of entrepreneurship development encompasses stages

from pre-training, where candidates are selected, and the program is
prepared, to the actual training stage, where skills and knowledge are
imparted, and finally, the post-training stage, where continuous support
and follow-up are provided to ensure the success of the program
participants in their entrepreneurial endeavours.

The process of entrepreneurship development consists of the following

stages:
 1. Pre-training Stage: This initial stage involves several crucial steps.
Firstly, potential candidates with the necessary attributes such as
knowledge, attitudes, values, and motivation for entrepreneurship
are carefully selected. Infrastructure for the training program is
established, and the content, techniques, and materials for the
training are prepared. Trainers are also chosen and trained to
deliver the program effectively. Publicity for the entrepreneurship
development program is carried out through various channels like
newspapers, handbills, pamphlets, banners, public meetings, and
lectures. The target group for the Entrepreneurship Development
Program (EDP) is thus formed.

Phase1 – Pre-Training Phase:

Pre-training phase consists of all activities and preparation to launch the

training programme.

Pre-training phase of EDP consists of the following activities:

1. Selection of entrepreneurs for the training programme

2. Arrangements of infrastructure are for the programme like selection
of place of training
3. Deciding guest faculty for the programme from the education
industry and banks
4. Taking necessary steps for the inauguration of the programme
5. Formation of selection committee to select trainees from the
programme
6. Making provision with regard to publicity and campaigning for the
programme
Phase 2 – Training Phase:

In this stage, the selected participants undergo training to develop

essential skills, competencies, and behavioural patterns required for
entrepreneurship. They are guided in identifying business
opportunities and choosing suitable products or services.
Information about government agencies that provide support to
entrepreneurs is given, and trainees are taught project report
preparation and enterprise launching formalities, including
necessary permits and licenses. Management skills are also
 developed to ensure effective business operations.

The primary objective of the training programme is to develop motivation

and skill or competency amongst the potential entrepreneurs. Care should
be taken to impart both theoretical and practical knowledge to various
trainees.

The training phase of EDP will be so designed that it will answer the
following questions:

1. Whether the attitude of the entrepreneur has been tuned towards

the proposed project or not
2. Whether the trainee has been motivated to accept entrepreneurship
as a career
3. How the trainee behaves like an entrepreneur
4. Whether the trainee has sufficient knowledge on resources and
technology or not
5. What kind of entrepreneurship traits he lacks and what steps should
be taken to set it
Phase3 – Follow-up Phase:

Post-Training Stage: This phase is crucial for the success of the EDP.
Participants receive ongoing support and follow-up after completing
the training. A designated person is responsible for providing
support, sustaining motivation, guiding them in implementing their
projects, and helping them overcome challenges. Regular follow-up
meetings are conducted with the participants, involving
representatives from banks, financial institutions, and other relevant
agencies to ensure continued assistance. The trainer motivator may
also engage with the trainees’ families to gain their support.
Feedback from the follow-up phase is used to assess the
effectiveness of the training program and make necessary
improvements to enhance the impact of the EDP. Infrastructural
support, counselling, and assistance in establishing enterprises are
also reviewed during this stage.

Follow up phase of EDP has been termed as the post-training phase. The
ultimate objective is to develop competent entrepreneurs.
So that they can start their project. Post-training phase is a review phase
of a training programme.

It consists of reviewing of work in the following manner:

1. Review of pre-training work

2. Review of actual training programme
3. Review of the post training programme so that the cost
effectiveness of the present programme can be evaluated.

Problems of EDP

The various problems of entrepreneurship development programme are:

1. Non Availability of Competent Faculty:

There is a problem of non-availability of competent teachers and even

when they are available, they are not prepared to take classes in small
towns and backward areas. This naturally creates problems for the
agencies conducting EDP.

2. Over Estimation of Trainees:

Under EDPs it is assumed that the trainees have aptitude for self-
employment and training will motivate and enable the trainees in the
successful setting up and managing of their enterprises. These agencies
thus overestimate the aptitude and capabilities of the educated youth.
Thus on one hand the EDPs do not impart sufficient training and on the
other financial institutions are not prepared to finance these risky
enterprises set up by the not so competent entrepreneurs.

3. Duration of EDPs:

An attempt is made during the conduct of EDPs to prepare prospective

entrepreneurs thoroughly for the various problems they will be
encountering during the setting up and running of their enterprises.
Duration of most of these EDPs varies between 4 to 6 weeks, which is too
short a period to instil basic managerial skills in the entrepreneurs. Thus
the very objective to develop and strengthen entrepreneurship qualities
and motivation is defeated.

4. No Policy at the National Level:

Though the Government of India is fully aware-about the importance of
entrepreneurship development, yet we do not have a national policy on
entrepreneurship. It is expected that the government will formulate and
enforce a policy aimed at promoting balanced regional development of
various areas through promotion of entrepreneurship.

5. Non Availability of Infrastructural Facilities:

No prior planning is done for the conduct of EDPs. EDPs conducted in rural
and backward areas lack infrastructural facilities like proper classroom
suitable guest speakers, boarding and lodging etc.

6. Improper Methodology:

The course contents are not standardised and most of the agencies
engaged in EDPs are themselves not fully clear about what they are
supposed to do for the attainment of predetermined goals. This puts a
question mark on the utility of these programmes.

7. Mode of Selection:

There is no uniform procedure adopted by various agencies for the

identification of prospective entrepreneurs. Organisations conducting
EDPs prefer those persons who have some project ideas of their own and
thus this opportunity is not provided to all the interested candidates.

8. Poor Response of Financial Institutions:

Entrepreneurs are not able to offer collateral security for the grant of
loans. Banks are not prepared to play with the public money and hence
they impose various conditions for the grant of loans. Those
entrepreneurs who fail to comply with the conditions are not able to get
loans and hence their dream of setting up their own enterprises is
shattered. Helpful attitude of lending institutions will go a long way in
stimulating the entrepreneurship climate.

Entrepreneurial Training | Objectives, Methods, Course Contents

April 02, 2021

What is Entrepreneurial Training ?

Training aimed at developing entrepreneurial competence in potential

individuals is called entrepreneurial training.

Inculcating the abilities to recognize the appropriate products and items

for production or various other types of self-employment setups can be
facilitated with the help of these training programmes.

The training also focuses on teaching different techniques of performing

research, surveys or studies.

Through such training, the entrepreneurs become able to apply

the managerial techniques in different management areas and launch
their own enterprises.

Different managerial" topics like production management, resource

management, marketing management, financial management, taxation,
inventory control, labour laws, etc., are covered in the entrepreneurial
training programmes.

In order to introduce the production process and machines required in

entrepreneurial venture, industrial visits to plants producing the items
selected by the entrepreneurs are arranged. Visits to small industrial units
are very helpful to entrepreneurs.

Overall, the entrepreneurial training is very helpful in motivating and

developing the entrepreneurial knowledge and skills among individuals.
Objectives of Entrepreneurial Training :

The main objectives of entrepreneurial training are enlisted below :

1. To encourage the spirit of self-employment among entrepreneurs

and develop small and medium enterprises.
2. To encourage new venture establishment and expansion of the
existing ones in rural areas through designing especial programmes.
3. To inculcate the entrepreneurial skills to potential entrepreneurs
and help develop the same in existing entrepreneurs.
4. To enable the entrepreneurs to define or redefine their business
objectives and work individually as well as in group for the
realization of the same.
5. To make the entrepreneurs ready for unforeseen threats and risks
associated with the business.
6. To facilitate strategic decision making among entrepreneurs.
7. To inculcate team building and coordination skills for meeting the
future demands.
8. To develop the communications skills among the potential
entrepreneurs.
9. To make the potential entrepreneurs able to define the vision of
their ventures and work in coordination for the realization of the
same.
10. To make the potential entrepreneurs able to analyse the
environment around them and take suitable decisions about the
product.
11. To make the potential entrepreneurs. understand the legal
procedures and norms involved establishing a new venture.
12. To inculcate the basics of industrial relations among potential
entrepreneurs.
Developing the Course Content :

For various EDPs which are conducted in the country, normally a uniform
course curriculum is adopted by the ED institutes. Total 30-35 participants
are taken in a group and the training goes for 4-6 weeks. Throughout the
training module, the following inputs are normally covered which can be
seen as appropriate for having the basic knowledge related to
entrepreneurship and enterprise :

1) Basics of Entrepreneurship :

In this input, the basics of entrepreneurship like its meaning,

history, features, qualities, significance, advantages of being an

entrepreneur, role in economic development of the country, etc., are
discussed with the potential entrepreneurs.

2) Motivational Inputs :

Various motivational inputs are included in the training course so as to

develop entrepreneurial competencies in the potential entrepreneurs.
These inputs are called Achievement Motivation Training (AMT). The main
objectives of AMT are to enhance the confidence, self-awareness,
innovativeness, achievement need, and other entrepreneurial skills
among the entrepreneurs. Behavioral psychology techniques are also
used here.

3) Management Inputs :
For starting a new venture and making it profitable, it is very necessary to
inculcate management concepts in potential entrepreneurs. That is why,
basic management functions like production, marketing, finance and
labour relations are taught to them.

4) Support System and Procedure :

Different supporting institutions are available to support the

entrepreneurs and the entrepreneurial ventures. The participants are
introduced to the supporting institutions and their schemes and roles. It is
essential so as to make the potential entrepreneurs familiar with the
service agencies, financial & non-financial institutions and different
programmes and policies of the government.

5) Project Feasibility Study :

The information related to prospective business opportunities present in

the area where EDP is conducted is provided to the trainees. Once the
trainees select some business opportunities, assistance is provided to
them for preparing the project feasibility reports to be submitted to the
banks and various other financial institutions. Further, trainees are
provided with information about market survey, feasibility study project
appraisal, technical and commercial viability analysis and so on.

6) Field Visits/Industrial Exposure :

The course curriculum also includes industrial visits so that the trainees
can have a real life exposure to industrial activities. Apart from this, first-
hand knowledge and exposure related to the various issues and
opportunities in industrial enterprises can be gained with the help of
industrial visits.
7) Technical Knowledge :

It is very important for the entrepreneurs to have the technical knowledge

about the selected field of enterprise. Therefore, the trainees are required
to have information about the economic aspects of the technology such as
costs and benefits associated with a particular technology.

8) Market Survey :

Since, the entrepreneurs should also have enough knowledge about how a
market operates, therefore, EDPs also provide the trainees with
opportunities to conduct market surveys for project of their choice.

Methods of Entrepreneurial Training :

The various methods of providing training to the entrepreneurs are as

follows :

1) Lecture Method :

As the name suggests, lecture method involves providing information to

the trainees orally. In case of any doubt arising in the minds of trainees,
clarification can be given spontaneously by the instructors.

2) Written Instructional Method :

When the training contents are to be used in the future by the trainees,
this method is used and it is most popular in case of
standardized production system.

3) Individual Instruction :

In this method, only one person is chosen for providing entrepreneurial

training. When a tough skill is to be imparted in the candidate, this type of
training becomes very useful.

4) Group Instruction :

When the training is to be provided to the group of different individuals,

this method is adopted particularly when these persons have to perform
the same type of activities and similar instructions are to be given to all
the candidates.

5) Demonstration Method :

This method is mainly useful when the physical exposure is to be imparted

by the trainer. In this method, the main focus is on providing practical
knowledge rather than theoretical knowledge.

6) Meetings :

This method of training mainly involves the group of people to discuss the
different issues faced by them. They share their views, ideas and different
conclusions are drawn on the basis of various alternatives and
suggestions.

7) Conference :

This method is generally used for imparting knowledge regarding new

ideas and techniques to the trainees. Here, conferences are organised and
experts from different fields are called to share their knowledge and
experiences useful for the trainees.
Evaluation of EDPs:

 Developing entrepreneurship has become a movement in India in

recent years. EDPs have been considered an effective instrument for
developing entrepreneurship in the countryside.
 Hundreds of EDPs are conducted by some 686 organizations to
impart entrepreneurial training to participants in thousands. The
main objective of EDPs is held to be enterprises creator.
 Hence, it seems necessary to see whether the objective of EDPs is
fulfilled or not. In simple words, there is a need to have a
retrospective look into how many participants have started their
enterprises after completing the training. This calls for the
evaluation of EDPs.
 So far some 16 evaluation studies have been conducted by various
organizations and individual researchers. These studies vary in their
objectives, coverage, and content. But, one common thread in all of
them is the assessment of the effectiveness or impact of EDPs,
howsoever, loosely, defined.
 One of the earliest attempts in this direction were made by a team
of researchers and experts appointed by the Gujarat Corporations to
evaluate the effectiveness of EDPs.
 The most recent and nationwide evaluation study on EDPs is carried
out by the Entrepreneurship Development Institute of India,
Ahmedabad.