ENTREPRENEURSHIP DEVELOPMENT PROGRAMME- PHASES & EVALUATIONS

Last Group (56,57,58,59)

ENTREPRENEURSHIP DEVELOPMENT

Entrepreneurship Development is one of the key elements for promotion of micro and small enterprises, particularly, the first generation entrepreneurs

Entrepreneurship development program

Entrepreneurship Development Program means 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

Objectives
The basic objectives of an Entrepreneurial Development Program can be summarized as follows: To develop and strengthen there entrepreneurial quality/motivation To analyze environment relating to small industry and small business To select project or product. To formulate project.

Cont

Train motivated individuals towards entrepreneurship Develop their business understanding & skills and empower them to independently establish and manage successful enterprises EDP covers the basics of identification, setting up and management of businesses to meet the needs of upcoming as well as existing entrepreneurs

Cont

To understand the process and procedure of setting up of small enterprise. To know and to influence the source of help/support needed for launching enterprise. To acquire the basic managerial skills. To know the pros and cons of being an entrepreneur

EDP, For Whom ?

Persons who want to start or grow their own businesses or utilize the entrepreneurship learning within an Organization as Intrapreneurs. Persons wanting to create self-sustaining social service ventures.

Most of the officials has concluded 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.

Phases of EDP
An EDP consists of following three broad phases:
a)

Pre training phase Training phase Post training phase (Follow-up)

b)

c)

A.) Pre-training Phase

The activities and preparations required to launch the programme come under this phase. It includes:
i. ii.

Designing of Course Curriculum or Contents. Exploring & Selecting appropriate faculty and resource persons. Insertion of advertisement. Screening & selection of potential entrepreneurs.

iii. iv.

B.) Training Phase

The main objective of this phase is to bring desirable change in the behaviour of trainees. The behavioural changes that need to be measured and monitored through the training programme are :
a)

Raising the motivation level of entrepreneurs. Developing a goal directed behaviour pattern.

b)

c) Raising positive thinking & belief. d) Arousing and raising change oriented innovative psyche. e) Developing a high degree of self confidence. f) Developing a psyche of responsibility seeker. g) 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) b) c)

Review the pre-training work. Review the process of training programme. Review past training approach.

Selecting Area Techno-Economic survey of the area and Introduction of EDP to the Community Prepare PFS for selected types of industries Revision of Curriculum Advertising of EDP training course Symposium Selecting Participants EDP training Follow-up Post-training Assistance

Fig: EDP flow chart

Evaluation of EDP
Evaluation of Entrepreneurship Development Programs assesses the efficacy, degree of success, and the contribution of entrepreneurship development programs (EDPs) in India

SELF-EMPLOYMENT AND ENTREPRENEURSHIP DEVELOPMENT PROGRAMMES

Integrated Rural Development Programme: IRDP aims at providing income generating assets and self-employment opportunities for the rural poor. Assistance under IRDP is given to target group of rural poor belonging to families Below Poverty Line (BPL), in the form of subsidy by the Government and term credit by financial institutions.

CRITERIA FOR ALLOCATION OF FUNDS TO THE STATES

Allocation of funds to States is being made by the Central Government in proportion to the poverty levels in each State on the basis of official estimates of the Planning Commission. These official estimates of poverty are arrived at by the Planning Commission based on the National Sample Survey Organization Consumer Expenditure Surveys conducted every five years.

Target Group

The target group consists of families of small and marginal farmers, agricultural labourers and rural artisans etc. Whose per capita monthly expenditure does not exceed the poverty line (ranging between Rs.216.65 and Rs.327.48 for different States/UTs) as estimated by the Planning Commission.

Currently, the Below Poverty Line census is being carried out in all the States and the revised poverty line will be used to categorise BPL families. Within the target group, special safeguards have been provided by reservation of 50% benefits for SCs/STs, 40% for women and 3% for physically handicapped persons.

PATTERN OF SUBSIDY

The pattern of subsidy is: 25% for small farmers; 33 1/3% for marginal farmers, agricultural labourers, and rural artisans; and 50% for SCs/STs beneficiaries and physically handicapped persons.

Organizations for EDPs

Various state and national organizations are organizing EDPs. Of the various organizations, The National Institute for Entrepreneurship and Small Business Development is doing pioneering work.

National Institute for Entrepreneurship and Small Business Development (NIESBUD)

The National Institute for Entrepreneurship and Small Business Development was established in 1983 by the Ministry of Industry, Government of India, as an apex body for coordinating the activities of various institution/agencies engaged in ED particularly in the area of small industry and small business.

The activities of the Institute include evolving: Effective training strategies and methodology, Standardizing model syllabi for training various target groups, Formulating scientific selection procedure; developing training aids, manuals and tools, Facilitating and supporting Central/State/Other agencies in

Other important organizations engaged in EDPs are: The National Science and Technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology, Government of India. National Institute of Small Industry Extension Training, Government of India, Hyderabad and Nationalized banks.

Evaluation of EDP
Entrepreneurial performance is a function of the following factors: Socio cultural background of the entrepreneur (SB). Motivational force (MF) Knowledge and ability of entrepreneurs (KA) Financial Strength (FS) Environmental Variables (EV)

a)

b) c) d) e)

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.
Table: Performance of the sample EDPs at a glance

Description
a) b) c) d) e) f) g) h) i) j) k) l) EDPs covered (Sample size) EDP trainees covered in sample EDPs Sample trainees interviewed Sample trainees not available & non-traceable Number of units set-up by EDP trainees Trainees actively under process Trainees blocked under process Trainees who gave up Non-traceable trainees Start-ups among non-available Non start-ups among non-available Expected final start-up rate (e+f+j)

Number
145 1295 865 430 277 78 129 381 146 59 225 414

The major findings of this study are:

1.

One out of four trainees actually started his/her enterprise after completing EDPs. The final start-up rate is higher around 32 percent. 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. 17 percent have given up the idea of starting their ventures as they were engaged in other activities.

2. 3.

4.

Criteria of Evaluation
The following main criteria can be employed to comment on the performance of entrepreneurs:
i. ii. iii. iv. v. vi.

Financial Results Gestation Period Capacity Utilisation Expansion and Diversification Value Addition Other Factors

Problems in the Conduct of EDPs

1. 2. 3. 4. 5. 6. 7. 8.

No policy at the national level Problems at the pre-training phase Over estimation of trainees Duration of EDPs Non-availability of infrastructural facilities Improper methodology Non availability of competent faculty Poor response of financial institutions

Suggestions to make EDPs Successful

1.

2. 3. 4. 5. 6. 7.

Emphasis on stimulating, supporting & sustaining activities. Model based EDPs Focus on achievement motivation Designing of viable projects Selection of trainees Training of trainers Duration of EDPs

Role & relevance of EDP

Creation of employment opportunities Capital Formation Balanced Regional Development Use of Local Resources Improvement in per capita income Improvement in standard of living Economic independence Preventing industrial slums Reducing Social Tension Facilitating overall Development

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Thank You!!!