Module 3

EDP

Contents
Meaning of EDP
Misconceptions about EDP
Objectives
Entrepreneurship Cycle
Entrepreneurial Discipline
Entrepreneurial environment and its analysis
Locational Mobility of Entrepreneurs

EDP
(Entrepreneurship Development
Programme)
EDP is a program designed to
help a person in strengthening
his entrepreneurial motive
and in acquiring skills and
capabilities necessary for
playing his entrepreneurial
role effectively

Misconceptions about EDP

1. Join an EDP, all your problems
are solved
2. EDP means only training
3. Higher the number, better the
EDP
4. EDP success is the sole
responsibility of TrainersMotivators

Objectives

Develop and Strengthen entrepreneurial quality and

motivation
Analyse environment of small businesses
Select product/project
Formulate projects
Procedure of setting up an enterprise
Basic management skills
Pros and Cons of entrepreneurship
Appreciate social responsibility and entrepreneurial
discipline

ENTREPRENEURIAL DEVELOPMENT CYCLE

ENTREPRENEURIAL DEVELOPMENT CYCLE

SIMULATORY

1. Entrepreneurial
Education

2. Planned publicity for

entrepreneurial
opportunities
3. Identification of
potential
entrepreneurs through
scientific methods
4. Motivational training
to new entrepreneurs
5. Help and guidance in

6. Making available
techno- economic
information and product
profits
7. Evolving locally
suitable new products
and processes
8. Availability of local
agencies with trained
personnel for
entrepreneurial
counseling and
promotions
4

SUPPORT
1.Registration of unit
2.Arranging finance
3.Providing land, shed, power, water etc.
4.Guidance for selecting and obtaining
machinery
5.Supply of scarce raw materials
6.Getting license/ import licenses
7.Providing common facilities
8.Granting tax relief or other subsidies
9.Offering management consultancy
10.Help marketing products
11.Providing information

SUSTAINING
1.Help modernization
2.Help diversification/ expansion/ substitute
production
3.Additional financing for full capacity utilization
4.Deferring repayment/ interest
5.Diagnostic industrial extension/ consultancy
source
6.Production units legislation/ policy change
7.Product reservation/ creating new avenues for
marketing
8.Quality testing and improvident services, and,
9.Need- based common facilities center

ENTREPRENEURIAL DISCIPLINE

1.Repayment behavior- financial management

2.Response to tax and statutory requirementlaw and compliances
3.Progressive outlook towards labor- labor
management
4.Care for ecology and environmentenvironment management

Issues of EDP
Structure and Composition of EDPs-who
should conduct an EDP? Regional
variations need to be streamlined
Areas of Operation-geographical areas to
be identified without bias-neglect of NER
Fixing priorities-efficiency and social need
criteria, proper balance to each strata
Lack of Specialists Support-different
disciplines

Issues of EDP
Inherent Inability
Diverse Opinions
Lack of proper strategy
Low institutional
commitment

Ill-planned training
methodology
Inconsistent
programme design
Perpetual ambiguity

No local support

No clear-cut objective

Non-availability of inputs
Poor follow-up

Lack of clarity in
approach

Inadequate research
facilities

Lack of creativity and

commitment

Environmental Factors

The environment influences

both opportunities for
entrepreneurial activities and
accessing resources in order to
participate in the process of
entrepreneurship.

Environmental
Characteristics
Environment Sum total of external factors
within which an enterprise operates.
Characteristics of Environment:
Dynamic
Uncontrollable and External
Affect the business in varying degrees
Poses threats and offers opportunities

Factors Affecting
Entrepreneurship
Economic Factors
Social Factors
Psychological Factors
Facilitating Factors
Competitive Factors

Economic Factors
Financial Assistance from Institutional Sources
Accommodation in Industrial Estate
Attitude of the Government
Encouragement from Large Business
Machinery on Hire-Purchase
Labour Conditions
Raw Materials
Size and Composition of Market

Social factors

Social Status
Religion Social
Mobility
Social Marginality

Psychological Factors

Need Achievement
Withdrawal of Status Respect

Competitive Factors

Facilitating Factors

Experience and Training

Arrangement of Finance
Occupational and
Geographical Mobility

Locational Mobility of
Entrepreneurs
the drive and initiative to move to other
places
Key factors influencing:
1.

Resources

2.

Experience

3.

Education

4.

Language

5.

Culture

6.

Nature of Enterprise