Edp Process 25y1q

EDP is essential for first generation entrepreneurs because they may not become successful unless a proper training is received. It is a continuous process of motivating the entrepreneur. The potential entrepreneurs can solve many of their problems after proper training is provided to them On the basis of above discussion, it can be concluded that EDP is becoming increasing popular and it can help the country in the following ways: 1. Eliminates poverty and unemployment: The basis problems of most of the developing countries like India are poverty and unemployment. Entrepreneurship development programmes can help the unemployed people to opt for self-employment and entrepreneurial as a career. Several programmes like National Rural Employment Programme (NREP), Integrated Rural Development Programme (IRDP) etc. are in operation in India to help the potential entrepreneurs. All these special schemes intend to eliminate the poverty and solve the problem of unemployment. 2. Balanced regional development: Successful Entrepreneurial development programmes help in foster the industrialization and reduces the concentration of economic power. It is because the small-scale entrepreneurs can setup their units in remote areas with little financial resources which can help in achieving balanced regional development. The medium and large enterprises do not help in reducing the disparities in income and wealth of the people. Thus, Entrepreneurial development programmes help in balanced regional development by spreading industrial units in each, and every part of the country. 3. Prevents industrial slums: The urban cities are highly congested and leading to industrial slums. Decentralization of industries is very much required by relocating the industries. Entrepreneurial development programmes help in removal of industrial slums as the entrepreneurs are provided with various schemes, incentives, subsidies and infrastructural facilities to set up their own enterprises in all the non-industrialized areas. This will control the industrial slums and also reduce the pollution, traffic congestion, overcrowding in cities etc. 4. Harnessing locally available resources:

Since abundant resources are available locally, proper use of these resources will help to carve out a health base for sound economic and rapid industrialization. The entrepreneurial development programmes can help in harnessing these resources by training and educating the entrepreneurs. 5. Defuses social tension: Every young person feels frustrated if he does not get employment after completing his education. The talent of the youth must be diverted to self-employment careers to help the country in defusing social tension and unrest among youth which is possible by entrepreneurial development programmes. 6. Capital formation: The various development banks like ICICI, IDBI, IFCI, SFC, SIDC and SIDBI take initiative in promoting entrepreneurship through assistance to various agencies involved in EDP and by providing financial help to ne entrepreneurs. It is impossible to start a new enterprise without sufficient funds. Entrepreneurs are the organizers of factors of production who employ their own and borrowered money for setting up of new ventures. This all results in the process of capital formation. 7. Economic independence: Entrepreneurs develop and produce substituted products of imported goods and prevent the overdependence on other countries. They also enable the country to produce different variety of better quality goods and services at competitive prices of imported goods which help in promoting the economic independence of the country. 8. Improvement in per capita income: Entrepreneurs always explore and exploit the new opportunities which lead to productive use of factors of production for more output, employment and generation of wealth. The overall increase in productivity and income help in improvement in per capita income. EDPs play a significant role in setting up of more industrial units to generate more employment opportunity and to secure improved per capital income. 9. Facilitating overall development: Entrepreneurs act as agents of proper use of various limited resources such as men, money, material, machines etc. which leads to overall development of an area, an industry.

The successful entrepreneurs set a motivating example for others to adopt entrepreneurship as a career. Thus entrepreneurs create a motivating environment for economic development of a country. Process: 1. Selection of potential entrepreneurs: The first and foremost step in the EDP is the proper and right selection and identification of potential entrepreneurs. It refers to find out individuals who can be converted into entrepreneurs. The utmost care should be taken in identifying the right participants for the EDP. Before selecting the person for training, due recognition should be provided to his family background, motivation level, educational qualification and entrepreneurial skill and competencies. Various modes of selections such as test, group discussions and interviews may be adopted in the selection of potential entrepreneurs. The two essential components such as identification of entrepreneurial qualities in the potential entrepreneurs and identification of suitable and viable opportunity or project for each identified entrepreneur should be kept in mind in selection of potential entrepreneurs. 2. Identification of entrepreneurial traits and skills: Every participant must have a minimum level of eligibility for becoming an entrepreneur. The entrepreneurial traits are broadly grouped into two categories: (a) Family background factors: The knowledge about the family background of a participants help to create entrepreneurial environment and occupational awareness for the entrepreneurs. There are certain special types of families traditionally involved in certain types of work. Most people prefer to adopt similar tasks to family business. (i) Family background: The knowledge about the family background of a participant helps to create entrepreneurial environment and occupational awareness for the entrepreneurs. There are certain special types of families traditionally involved in certain types of work. Most people prefer to adopt similar tasks to family business. (ii) Age: Different studies have proved that younger people are more successful entrepreneurs. This may be their higher risk taking ability as compared to older people and creative and innovative thinking.

(iii) Education level: The educational level of participant must be given due consideration. A minimum level of education and types of education play a very significant role in the success of new enterprise. (iv) Size and type of family: The size and types of entrepreneur’s family must also be considered. A t family has generally a greater risk-bearing capacity as compared to nuclear family. (v) Working hands: The working hand of family member of a potential entrepreneur also counts much. (vi) Social participation: The social participation of potential entrepreneur will determine his social status in the society. Greater social participation improves the ability to influence others and the success of the entrepreneur. Therefore, priority should be given to those persons having experience in business, a functional level of education, young, family and financial while selecting candidates for EDP. (b) Human Resource Factors: These are the inherited or acquired skills. The following human resource factors must be considered. (i) Achievement motivation: It is the bases of entrepreneurship an entrepreneur with high need achievement succeed better. It involves both personal achievement and social achievement. (ii) Willingness to take risk: Risk-taking willingness refers to seek change in business activity. The person perceiving greater amount of risk in the venture has the higher risk taking willingness. (iii) Influencing ability: The entrepreneur would need adequate motivation to both influence and control the people and environment to achieve the end to successful. (iv) Personal efficacy: It is the general sense of adequacy in a person. Personal efficacy is an important factor contributing to entrepreneurial behavior of a person. It represents the potential effectiveness

present at the inner level. The roots of efficiency of a person lie in his perceptions and beliefs about himself. These beliefs may be the result of an individual’s self-concept and perception of his own strength. Thus, personal efficacy can be defined as the tendency in the individual to attribute success or failure to external factors. A person having higher personal efficacy believes in his capacity to control and shape the environment while an individual having low personal efficacy believes that things are not under his control and occur due to fate. (v) Aspirations: Aspiration is goal statements relating to future level of achievement. These are relating to future prospects of an individual’s desire. It is a form of self-motivation also. A person having low level of aspiration is not likely to become an entrepreneur. 3. Identification of enterprise: It is essential to identify a suitable enterprise or project for potential entrepreneur after studying his socio-personal and human resource characteristics. The entrepreneurial project must be suited to the requirements of potential entrepreneurs. A number of factors such as his skill, experience, physical resources, family occupation etc. should be taken in consideration before selecting an enterprise. After deciding the enterprise, the potential entrepreneur has to study the viability in of financial resources, availability of raw materials, marketing, profitability etc. 4. Contents of training programme: There are different kinds of participants having different backgrounds and qualities to attend the entrepreneurial development programme. The following types of training are provided during the time duration of programme. (a) Technical knowledge and skills: After the choice of a particular enterprise by a potential entrepreneur, the in-depth knowledge about the technical aspect of the trade should be given to him which will enable him to wellconversant with the process of manufacturing and trading in trade. A number of field trips to industrial units can be very helpful to understand the economic aspects of the technology.

(b) Achievement motivation training: Development of achievement motive is essential in order to develop human resources. The main aim of achievement motivation training is to develop the need and desire to achieve, risk-taking, initiative and other such personal behavioral qualities, the self-awareness and self-confidence can be created among the participants through an achievement motivation programme which enable them to think positively and realistically. (c) systems and procedures: The proper training relating to systems and procedure should be imparted to participants. The participants become able to understand the functioning of various agencies like commercial banks and financial institutions, industrial service corporations and other institutions dealing with supply of raw materials, equipment, marketing etc. This session of the training programme helps the participant to understand the system, procedures for approaching them, applying and obtaining from them and availing of the services provided by these agencies. (d) Market survey: An opportunity to actually conduct market surveys to select the project is provided to participants. This will help them to understand the actual marketing position. (e) Managerial skill: A participant requires managerial skills to start the enterprise. It should involve all the managerial factors such as planning, organization, coordination, leadership, supervision, control etc. The main aim of managerial training is to enable the participants to run the enterprise successfully. 5. system: The new entrepreneur is ready at this stage to set up his new venture. He requires some type of assistance and of many agencies in order to launch his new venture. system is the important part of the EDP. It is considered the backbone of an EDP. It is absolutely necessary to develop various systems in the initial stage of growth in order to accelerate the growth of entrepreneurship. One method of increasing opportunity and ensuring entrepreneurial success is by providing a network of systems under entrepreneurial development programme. These systems provide variety of information relating to credit, finance, marketing service etc.

6. Production: After the enterprise is set up, production starts. At this step, the managerial and technological skill acquired in the EDP comes into use. Once the production starts the entrepreneur has to initiate supply of products through suitable marketing channel. The production and marketing are the most crucial stage in an Entrepreneurial Endeavour. Failure in either would mean a breakdown in EDP. 7. Monitoring and follow-up: Continuous monitoring and follow up is essential for the success of any entrepreneurial development programme. At every stage of EDP, a system of proper monitoring needs to be built in. the defects and problems of EDP can be identified and removed through a proper monitoring system. Monitoring should provide continuous guidance to ensure better results. The monitoring and follow up should be conducted during each stage of pre-training and post-training of EDP. Pretraining follow up includes evaluation of training infrastructure and training syllabus.