Unit 4

Entrepreneurial Development Programmes (EDP)

4.1 EDP, their role, relevance, and achievements; Role of Government in organizing EDPs; Critical evaluation

The Entrepreneurship Development Program is primarily aimed at developing first-generation entrepreneurs who cannot become successful entrepreneurs on their own. It covers three main variables: location, target group, and enterprise. Both of these can be the focus or starting point for starting and implementing EDP.

The Entrepreneurship Development Program is a program aimed at fostering people's entrepreneurship. The concept of an entrepreneurial development program involves equipping people with the skills and knowledge they need to start and run a company.

EDP ​​is an effective way to foster entrepreneurs who can help accelerate the pace of socio-economic development, promote balanced growth in the region, and harness the resources available in the region. It handles all constraints and has proven to be one of the most effective tools for developing new entrepreneurs.

Then the other two continue with the first two and proper synthesis. For example, if the goal is to promote female entrepreneurs, then the right place and the right entrepreneurial activity need to match. Or if the purpose is to develop the north-eastern region. The methodology for selecting future entrepreneurs and post-training support services will have a significant impact on the success of the entrepreneurship program.

These programs broadly envision a three-tiered approach, motivating and sharpening entrepreneurial characteristics and behavioural achievements, project planning and development, industrial opportunities, incentives and facilities, guidance and management on rules and regulations. Development of capacity and operational capacity. Various methods and approaches have been developed and adopted to achieve these goals, with a view to target groups and target areas.

Past experience has shown that facility provision, technical assistance, management training, consulting, industrial information and other services alone are not sufficient to develop entrepreneurs. Therefore, the EDP package has been on the market for many years. EDP ​​has become an important strategy for accelerating general industrialization, especially in the small sector, by leveraging a vast amount of undeveloped human skills.

In line with the national program for the promotion and development of local small and medium-sized industries, the Institute of Industrial Services (ISI) under the Department of Industry Promotion (DIP) has launched an EDP to give substance to the government's economic stimulus policy. I did. It grows, decentralizes the industry and facilitates the processing of local raw materials. EDP ​​was considered part of the industrial development policy clarified in the five-year National Economic and Social Development Plan.

Meaning

Entrepreneurship Development Program-Meaning

The Entrepreneurship Program (EDP) is a program designed to help entrepreneurial motivation and effectively and efficiently acquire the skills and abilities needed to fulfil an entrepreneurial role. Therefore, it is necessary to promote his understanding of motivations, motivational patterns, behavioural implications and entrepreneurial values.

The program that tries to achieve this is called EDP. I would like to emphasize here that there are several programs aimed at providing information and administrative input, and focusing on project preparation. Of course, new entrepreneurs need all this input, but programs that don't touch entrepreneurial motivations and behaviours can't be considered EDP.

Entrepreneurship is essential to the economy. Entrepreneurship can be created in the economy by injecting motivation and motivation and training motivated entrepreneurs and potential people. The Entrepreneurship Program (EDP) is a way to achieve the goals mentioned above.

EDP ​​is a planned program developed to identify, teach, develop, develop, and hone abilities and skills as prerequisites for becoming an entrepreneur. EDP ​​focuses on training, education, turning, and building a facilitative and healthy environment for entrepreneurial growth.

EDP ​​can be thought of as a tool for human resources development. It is a program aimed at fostering entrepreneurship among people. EDP ​​is basically designed to instil entrepreneurial motivation and spirit in people and to develop and develop the skills and abilities needed to succeed in their entrepreneurial role. EDP ​​includes the skills of an entrepreneur, the acquisition, development, and refinement of the knowledge that participants need to establish and succeed in a company.

An entrepreneur is a creator or designer who designs new ideas and business processes according to market demands and his passion. Entrepreneurship is the art of starting a business, basically a start-up that offers creative products, processes, or services. It's a creative activity.

Entrepreneurship development is the process of improving entrepreneurial skills and knowledge through a variety of training and classroom programs. The development of entrepreneurship is related to the study of entrepreneurial behaviour, the dynamics of business establishment, and the development and expansion of a company.

The key to fostering entrepreneurship is to increase the number of entrepreneurs. This will accelerate job creation and economic development. Entrepreneurship is promoted to mitigate the unemployment problem, overcome the problem of stagnation, and increase the competitiveness and growth of business and industry.

Entrepreneurship development is more focused on growth potential and innovation. The development of entrepreneurship is becoming more and more important in economic development. It is a systematic and systematic development. It is an industrialization tool and a solution to the unemployment problem for any country.

Need

Entrepreneurs have certain abilities and traits. These abilities or traits are the underlying characteristics of entrepreneurs who deliver superior performance and distinguish between successful and unsuccessful entrepreneurs.

Next comes the important issue. Where do these properties come from? Or are these traits born to entrepreneurs or are they induced and developed? In other words, was the entrepreneur born or created? Behavioural scientists sought answers to these questions.

David C, a well-known behavioural scientist at Harvard University. McClelland (1961) conducted an interesting study and experiment on why certain societies showed great creativity at certain times in their history. What was the cause of these creative energy explosions? He found that "necessity of achievement (each factor)" was the answer to this question. It was the need for achievement that motivated people to work hard. According to him, making money was a coincidence. It was just a measure of achievement, not its motive.

To answer the next question of whether this need for achievement is evoked, he is in Kakinada, one of the prosperous districts of Andhra Pradesh, India, at the Institute for Small Industrial Extension Training (SIET). ) And conducted a five-year experimental study. , Hyderabad.

This experiment is commonly known as the "Kakinada experiment". In this experiment, young people were selected, a three-month training program was conducted, and they were motivated to see new goals.

One of the key conclusions of the experiment was that traditional beliefs did not appear to hinder entrepreneurs, and proper training could motivate entrepreneurs as needed (McClelland & Winter1969). Motivation for achievement had a positive impact on entrepreneurial performance.

In fact, the "Kakinada experiment" can be treated as a precursor to current EDP input on behavioural aspects. In a sense, the "Kakinada Experiment" is considered the seed of India's Entrepreneurship Development Program (EDP).

It was the Kakinada Experiment that made people aware of the need and importance of entrepreneurship training, now commonly known as "EDP," to motivate and motivate young future entrepreneurs. The facts remain.

Based on this, the Gujarat Industrial Investment Corporation (GIIC) was the first to launch a three-month training program on entrepreneurship development. Impressed by the results of this training program at GIIC, the Government of India launched a large-scale program on entrepreneurship in 1971. Since then, I haven't looked back on this front. To date, there are approximately 686 all-Indian and state-level institutions engaged in the implementation of hundreds of EDPs that provide training to hundreds of candidates.

To date, 12 state governments have established state-level Entrepreneurship Centers (CEDs) or Entrepreneurship Institutes (lEDs) to foster entrepreneurship by implementing EDPs. .. Today, India's EDP has grown to a scale that has emerged as a national movement. It is worth mentioning that India runs the oldest and largest program for entrepreneurship development in any developing country.

The influence of the Indian EDP movement is supported by the fact that the Indian model of entrepreneurship development has been adopted in several developing countries in Asia and Africa. Programs similar to India's EDP are being implemented in other countries. For example, a "Junior Achievement Program" based on the principle of "catching young companies" in the United States and "young companies" in the United Kingdom.

Objective

The Indian Entrepreneurship Development Program (EDP) has many purposes.

A group of experts made up of NIESBUD acknowledged that they must be able to help selected entrepreneurs to:

(1) Develop and strengthen entrepreneurial quality / motivation.

(2) Analyze SMEs and the environment related to SMEs.

(3) Select a project / product.

(4) Develop a project.

(5) Understand the process and procedure for establishing a SME.

(6) Know and influence the sources of help / support needed to start a company.

(7) Acquire basic management skills.

(8) Know the pros and cons of being an entrepreneur.

(9) Know and appreciate the necessary social responsibility / entrepreneurship.

In addition, some of the other important objectives of entrepreneurship training are:

(I) Have an entrepreneur set or reset the goals of his business and work individually and with his group to achieve them.

(II) After such training, prepare him to accept any unexpected risks of the business.

(III) To allow him to make strategic decisions

(IV) To allow him to build an integrated team to meet tomorrow's demands.

(V) Communicate quickly, clearly and effectively

(VI) Take a look at the entire business and develop a broad vision to integrate his functionality with it.

(VII) To allow him to associate his products and industries with the entire environment, find out what is important in it, and take it into account in his decisions and actions.

(VIII) To allow him to deal with and coordinate all relevant paperwork. Most of them are legally required.

(IX) To get him to accept industrial democracy, that is, to accept workers as corporate partners.

(X) Strengthening his integrity, integrity, and legal compliance is the key to long-term success.

Steps

The entrepreneurial procedure may be described as the stairs taken to installation a brand new commercial enterprise. It's a step-through-step approach and you need to comply with to installation a employer.

There are 5 foremost steps you want to comply with. These steps are as follows:

1. Preparation procedure
2. Decision-making steps
3. Planning procedure
4. Implementation procedure
5. Management procedure

1. Preparation procedure

Preliminary steps are the primary steps you should comply with to installation a employer. At this stage, potential marketers must be capable of make choices that have an effect on the employer.

It may be stated that an entrepreneur changed into born at this stage. Entrepreneurs search for commercial enterprise possibilities and accumulate information / information from all to be had sources.

b.    Decision-making steps

Decision-making steps may be described as the ones steps or training found out through marketers to make green choices.

At this step, marketers may be visible consulting with DIC (District Industrial Center) and MSME (Medium Small & Micro Enterprise). Some of the choices to be made are:

1. Decision to get price range from a financial institution or economic institution.
2. Obtaining, approving, and making use of for a permit.
3. Creation of PPR (initial undertaking report).
4. Decisions on land, buildings, vegetation, machinery, labor, uncooked materials, fuel, energy, water supply, filtration, etc.

Everyone who has an immediate or oblique hyperlink to the patron and the choice-making steps performs a completely critical function in making powerful choices which might be adaptable, cushy and powerful for the employer.

c.     Planning procedure

A plan is an assumption or forecast of destiny commercial enterprise necessities and outcomes. By lowering fees and maximizing profits, we offer area so that it will remember the satisfactory techniques for walking your commercial enterprise.

Some making plans steps include:

1. Planning of infrastructure which includes vegetation and buildings.
2. Obtain permission and approval from the authorities or different legit authorities.
3. Apply for environmental clearance.
4. Purchase of land and approval of mines as needed.
5. Apply for electric connection and water supply.
6. Plan very last feasibility, technical feasibility, and operational feasibility.
7. Research on PPR and guidance of distinct undertaking report (DPR).
8. Get a mortgage or a hard and fast investment.
9. Plan for acquisition and set up of the machine.

Now let's have a look at how this making plans step is in addition converted into an implementation step.

d.    Implementation procedure

Implementation is the execution of the plan. It is the movement taken to perform the plan in order that something really happens.

Below are a few steps that allow you to get a clean concept of ​​how the moves of the making plans step are integrated into the implementation step.

1. Acquisition of land, set up of buildings, buy of uncooked materials.
2. Installation of vegetation and machines, allocation of human resources.
3. Receive a letter of permission and restructuring and acquire a capital investment.
4. Start of operation and manufacturing.
5. Arrangement of fuel, power and water.
6. Develop infrastructure which include roads, hospitals, schools, and residences.
7. Implementation is the maximum critical and hard step. The real effects are discovered at some stage in implementation, generating something this is virtually valuable.

e.     Management procedure

We have visible the jobs and responsibilities of marketers. Managers are very critical now no longer most effective for businesses however additionally for marketers. Some of the managers who cope with you are:

Preparing marketplace rules and techniques.

Manage products or services promotions.

Formulation of pricing policy.

Wholesaler and store management.

Determining the fee of return.

Manage advertising techniques, control marketing and marketing for merchandise or services, control distribution structures for green distribution.

Warehouse management.

Each step has its personal significance and function withinside the improvement and deterioration of the employer.

Becoming an entrepreneur isn't always easy. It's a big choice and calls for difficult work, patience, and difficult work. Before you begin a commercial enterprise, you want to remember and remember numerous elements to growth your profitability potential.

Entrepreneurship

However, the which means of SMEs varies from United States of America to United States of America in line with their respective laws. Criteria rely upon the quantity of employees, turnover, employer assets, and more.

Here are a few elements to preserve in thoughts earlier than beginning a commercial enterprise:

1. Identifying commercial enterprise possibilities.
2. Project guidance.
3. Choice of commercial enterprise possibilities.
4. Access undertaking feasibility (technical, operational, economic advertising).
5. Determination of manufacturing location, office, etc.
6. Determine the scale of the undertaking.
7. Determining the supply of funding.
8. Make choices approximately advertising.
9. Decide to release the undertaking.
10. Determine undertaking plans, packages and rules, and techniques.

Role and relevance

EDP ​​is vital for first-era marketers due to the fact it may be unsuccessful with without education. It's a non-stop manner that motivates marketers. Potential marketers can resolve a lot of their troubles if they're given the proper education.

Based at the above discussion, we will finish that EDP is turning into increasingly more famous and may assist the United States withinside the following ways:

1. Eliminate poverty and unemployment.

The fundamental troubles of maximum growing nations like India are poverty and unemployment. The Entrepreneurship Development Program enables the unemployed to pick self-employment and entrepreneurship as a career.

Several applications, including the National Rural Employment Program (NREP) and the Integrated Rural Development Program (IRDP), are being carried out in India to guide capability marketers. All of those unique plans are aimed toward getting rid of poverty and fixing the hassle of unemployment.

2. Balanced nearby improvement:

Successful entrepreneurship applications assist sell industrialization and decrease the attention of monetary power. Small marketers have few reassets of investment to assist reap balanced nearby improvement and may installation devices in faraway regions.

Medium and big organizations do now no longer assist near the distance among human beings's profits and wealth. In this way, entrepreneurship applications assist balanced nearby improvement with the aid of using increasing commercial devices to every and each place of the united states.

3. Prevent commercial slums:

Urban regions are very crowded, main to commercial slums. By moving the enterprise, decentralization of the enterprise could be very a great deal needed.

Entrepreneurship applications assist take away commercial slams, as marketers are supplied a lot of schemes, incentives, subsidies and infrastructure to installation their personal organizations in all non-commercial regions.

This will lessen commercial slums and decrease pollution, site visitors congestion and concrete overcrowding.

4. Utilization of domestically to be had sources:

Proper use of those sources enables to open up a healthful basis for healthful monetary and fast industrialization, as plentiful sources are to be had domestically.

Entrepreneurship applications assist you leverage those sources with the aid of using education and instructing marketers.

5. Relieve social tensions:

All younger human beings are annoyed in the event that they do now no longer get a process after education. Youth skills wishes to be diverted to self-employment to relieve the social tensions and anxieties of younger human beings made feasible with the aid of using entrepreneurship applications.

6. Capital formation:

Various improvement banks including ICICI, IDBI, IFCI, SFC, SIDC and SIDBI are taking the lead in selling entrepreneurship thru guide for diverse establishments concerned in EDP and economic guide for marketers. Is. Without sufficient cash, it's far not possible to begin a brand new business.

Entrepreneurs are the organizers of things of manufacturing that spend their cash and borrowed cash to installation new ventures. This all brings approximately the manner of capital formation.

7. Financial independence:

Entrepreneurs expand and bring options to imported merchandise to save you immoderate dependence on different nations.

They additionally allow the United States to provide special varieties of higher nice items and offerings at aggressive costs of imported items, which enables the united states sell its monetary independence.

8. Improving in line with capita profits:

Entrepreneurs are continuously exploring and leveraging new possibilities that result in the efficient use of things of manufacturing for extra manufacturing, employment and wealth era.

A normal boom in productiveness and profits enables enhance in line with capita profits. EDP ​​performs an critical function in organising extra commercial devices to create extra employment possibilities and stable better in line with capita profits.

9. Promote normal improvement:

Entrepreneurs act as dealers who make exact use of a lot of restrained sources including men, cash, substances and machinery, main to the general improvement of the place and enterprise.

Successful marketers have proven examples of motivation for others to undertake entrepreneurship as a career. Therefore, marketers create motivational surroundings for the united states’ monetary improvement.

Achievements

The purpose of this program is to consider self-employment and entrepreneurship as one of career options for young people representing different sections of society, including SC / ST / women, former military personnel of different abilities, and BPL people. The ultimate goal is to foster new businesses, foster the development of existing MSMEs, and instil an entrepreneurial culture within the country. According to the scheme guidelines, 40% of women should participate in EAP and E-SDP overall. The program includes:-

(I) Industrial Motivation Campaign (IMC): A two-day industrial motivation campaign to identify and motivate traditional / non-traditional entrepreneurs who may establish an MSE and lead to self-employment. Be organized. One day, the IMC for the Cluster SPV / Trade Association / Chamber of Commerce to spread the scheme for the promotion and development of MSME.

(II) Entrepreneurship Program (EAP):-The Entrepreneurship Program is regularly organized to develop young people's talents by educating young people about various aspects of the industrial activities required to establish MSE. It has been. These EAPs are typically implemented in ITI, polytechnics, and other technical institutions, and take advantage of the skills that motivate them to become self-employed. Course content for such entrepreneurial activities includes products / projects, selection and project profile preparation, marketing tools / technologies, product / service pricing, export opportunities, available infrastructure facilities, financial institutions, financial institutions. , Designed to provide useful information about cash flow.

(III) Entrepreneurship-Skill Development Program (E-SDP):-A comprehensive training program organizes a variety of technical and skill development training to develop the skills of future entrepreneurs and existing workforces. Organized to upgrade and develop new MSE worker and technician skills, provide training to improve skills and acquire better and improved technical skills in production. A program with a purpose. Specific tailor-made programs for skills development of socially disadvantaged groups (SC / ST, PH, women) are organized in various parts of the state, including developing areas.

(IV) Business Development Program (MDP):-The purpose of providing training on business practice systems is to improve the decision-making ability of existing and potential entrepreneurs, and to increase their productivity and profitability. Information on various management function topics is provided to participants in short-term training programs. These programs are short-lived and the curriculum is designed according to the needs of the industry and customized according to client requirements.

Vocational training and education training:

Autonomous bodies such as regional testing centers, field testing stations, and provincial tool rooms and technology development centers (TDCs) offer long-term, short-term, trade / sector-specific and industry-specific tailor-made courses as well as vocational training programs.

a) Female Entrepreneurship (TREAD)

Know about this scheme:-

Related scheme guidelines for trade-related entrepreneurship and development (TREAD) schemes for women for the 12th Plan

Explanatory Guidelines for Trade-related Entrepreneur Support and Development (TREAD) Schemes for Women for the 12th Plan

The nature of aid

Who can apply? All MSMEs with EM registration.

Very distant achievement:-

Purpose

Experience has shown that, apart from counselling and training, providing credit poses the most serious problems for poor women. Since such women do not have easy access to credits, it is also envisioned that the applicant's women will be able to use the credits through NGOs that can process the funds in a proper way. These NGOs not only handle the payments for such loans that women need, but also provide appropriate counselling and training to carry out productive activities. The focus of this scheme is to provide grant aid to node NGOs licensed for bank loans to allow women eligible for non-agricultural activities to pass bank loans.

Activity and prominent features

1. Credits

The Government of India has a provision to grant up to 30% of loans / credits up to Rs. Rs 30 million valued by the lender / bank. Lenders / banks fund women's lending assistance through NGOs to engage in non-agricultural activities. Women usually do not have easy access to credit from banks because the process is cumbersome and they cannot provide the proper security required by banks in the following ways: collateral. Loans from GOI Grants and lenders to support such women shall go through NGOs engaged in helping poor women through income-generating activities. The loan amount will be passed on to the female beneficiaries, but the NGO will utilize the grant for activities recognized as grant activities in the evaluation report of the lending institution and the capacity development of the NGO. NGOs selected for government grants will no longer be considered eligible for GoI grants for two years from the date of release of the GoI grant.

2.  Training and counselling

Training organization i.e. Small and Medium Enterprises – Conduct training programs for empowering female beneficiaries identified under the Institute for Development (MSME-DI), Institute for Entrepreneurship Development (EDI), NIMSME, NIESBUD, and schemes NGOs will be subsidized up to the maximum Rs. Per program, provided that the application from NER is recommended by NSIC / IIE, Guwahati, and such institutions provide a share of at least 25% of government grants and 10% in the case of NER. 10 million rupees.

3. Extracting information about related needs

Institutions such as the Institute for Entrepreneurship Development (EDI), NIMSME, NIESBUD, IIE, MSME-DI, and state-sponsored EDI. And other well-reputed institutions will be provided with government grants based on limited needs up to Rs. R5 million per project for activities primarily aimed at empowering women, such as field surveys, research studies, evaluation studies, and training module design covered by the scheme.

b) Support for training institution schemes

The revised guidelines (effective September 1, 2016) will provide financial support in the form of the following grants:

i) MSME Ministry training institutes and existing state-level EDI infrastructure support and capacity building.

Ii) Research on MSME related matters.

Iii) MSME Chair;

Iv) Training by a training institution of the Ministry of MSME (skill development program / trainer training).

The revised scheme for setting up a new EDI will not provide financial assistance. Private training institutions / NGOs are not covered by the financial assistance scheme.

The nature of aid

(I) Maximum support under the scheme for state-level EDI is limited to Rs.250 Rakı in each case. The grant will be used to develop physical infrastructure, equipment development, teacher training, and the ability to investigate and research issues related to the MSME sector.

(Ii) Research: The greatest aid is rupees. In each case, 150,000 rupees.

(Iii) Training (SDP): Assistance is provided to MSME Ministry training institutions to implement skills development programs.

Who can apply?

State / UT Existing state-level EDI owned and controlled by the government. Training institution of the Ministry of MSME.

How to apply?

Eligible applicants may submit a well-founded proposal to the Deputy Secretary of State for MSME (EDI) in Udyog Bhawan, New Delhi-110011.

Role of Government in organizing EDPs

Institutions Established by the Government

1. National Institute for Entrepreneurship and SME Development in New Delhi (NIESBUD)

It was founded in 1983 by the Government of India. A pinnacle institution for coordinating and supervising the activities of various institutions engaged in entrepreneurship development. It helps evolve EDPs, model syllabuses, effective training strategies, methodologies, manuals, and tools.

Activities to be carried out:

1. Organization and implementation of training programs
2. Coordination of training activities
3. Providing affiliation to such institutions
4. Conducting examinations and awarding certificates to trainers and trainees

2.     Small Industries Service Institutes (SISI)

Three -month part-time evening course in management

4- to 6-week part-time course in intensive training in functional areas (marketing, finance)

Quality control, personnel, production planning, products

Mobile workshops that provide training on the correct use of tools and equipment

Assist in plant layout preparation

Assist individual companies on specific issues they are facing

3.     Small Industries Development Organization (SIDO)

It Implements EDP in cooperation with financial institutions and industry bureaus. It conducts vocational training at manufacturing sites (carpentry, electrical equipment)

Dispatch its staff / trainers to the organization and update your knowledge

4.     National Small Industries Corporation (NSIC)

Offering two years of apprenticeship .Training of SSI supervisors for up to two years

Training of engineers for up to two years

Training of workers for 12 months

Unique venture Training to establish

Machine advice and components

Technically advanced machine manufacturing

5.     Ahmadabad, Institute of Entrepreneurship Development (EDII), India.  It develop programs for entrepreneurship training and development

Develop innovative training techniques for trainers

First focused on female entrepreneurs with such EDP in 1988

UP and EDP for fostering rural entrepreneurs in Orissa

Famous for organizing camps on entrepreneurship, Nepal, Ghana, Kenya, etc.

6.     National Alliance of Young Entrepreneurs (NAYE)

Contribution to Promoting Women Entrepreneurship

Established Women's Wing in 1975

This wing supports women in the following areas:

Improve access to resources, infrastructure and markets

Identify investment opportunities

Industry addressing personal issues

Sponsor participation in trade fairs, exhibitions and conferences

Hold seminars, training programs and workshops

7.     MANAGEMENT DEVELOPMENT INSTITUTE (MDI) Entrepreneurship Centre

Objectives

Providing a variety of non-profit-based services to encourage, plan, and link entrepreneurs, businesses, and organizations in India and abroad

Outreach providing facilities and networking for entrepreneurs under the program

Training students to become entrepreneurs

Providing services and training that facilitate entrepreneurs to operate in emerging areas

Various national international centre platforms Professor SVK acting.

8.     Institute for Entrepreneurship Development

IED Disha aims to teach educated and unemployed young people in the state the value of entrepreneurship and motivate them to enter the field of self-employment in 1987.

Since its establishment, the institute has trained multiple easy entrepreneurs in various fields, and the success rate is about 30%.  Currently, the institute is focusing on skill-based training for young people.

Our mission is to promote SMEs through innovative, needs-based entrepreneurship training.  The Institute must act as a national pacesetter in the areas of entrepreneurship education, consulting, research, training, and development.

Government Assistance and incentives

The contribution of small industries and businesses to the Indian economy is immeasurable. Not only do they create wealth and employment, they are also a major factor in social development. In fact, their importance is so great that we have a special ministry dedicated to micro and small businesses. Now let's learn how our government supports and develops these small industries.

Government support

The Government of India has supported and developed the small unit sector. India focuses on rural and domestic industries. In layman's terms, a small business is a project or venture that requires a small budget or is run by a small group.

Both central and state governments have placed greater emphasis on self-employed opportunities in the local sector by providing financing, programs, infrastructure, raw materials and technology training support and support for financing.

The main purpose of the government is to harness local talent and locally available resources. This is further put into action by local departments, institutions, businesses and more. Small industry support includes:

Institutional support

1. National Agricultural and Rural Development Bank (NABARD)

NABARD was founded by the government in 1982 to take action and promote rural industry. We are adopting a multi-purpose strategy to promote rural business in India. It supports small industries, local craftsmen, local industries and domestic industries along with agriculture. It also sets up training and counselling, and also offers development programs for local entrepreneurs.

Browse more topics under SMEs

Meaning and nature of SMEs

SME Role and SME Issues in India

2. Rural SME Development Centre (RSBDC)

RSBDC is a government centre for small and medium-sized enterprises established by organizations around the world, sponsored by NABARD. The main purpose of RSBDC is to work for people and groups at social and economic disadvantages. RSBDC offers a number of programs on gradual skill development, entrepreneurship, awareness, counselling and training.

These programs motivate different unemployed youth and young women to learn different trades and then introduce other good interests.

3. National Small Industries Corporation (NSIC)

NSIC was founded by the government in 1995 with the aim of promoting and supporting small and medium-sized enterprises with a commercial focus. The key features of NSIC are:

We supply imported goods and machines under a rental purchase contract.

Procurement of the supply of imported indigenous raw materials.

Import products to develop SMEs.

Supervision service.

Awareness of technical up gradation.

NSIC has also launched a new scheme called Small Unit Performance and Credit Ratings. This ensures that the higher the credit rating, the more financial support for investment and capital requirements.

4. Indian Small Business Development Bank (SIDBI)

It is the top government-affiliated banks that provide direct and indirect financial support under different schemes to meet the credit requirements of different SMEs.

5. "National Committee for Companies in the Unorganized Sector (NCEUS)"

NCEUS was established by the government in September 2004 for the following purposes:

Measures to improve the productivity of small industries in the informal sector.

Creating jobs in rural areas.

Create links between the small sector and finance, infrastructure, raw materials and technology.

Build a public-private partnership to engage in giving skills to the informal sector.

Providing microfinance to the informal sector.

Provide social security to the informal sector.

Introduction of small-scale competition in the global environment.

6. Development of rural and female entrepreneurship (RWED)

This is a government organization focused on improving the women's business environment and supporting women's business initiatives. It provides a manual for entrepreneurship training and provides advisory services.

7. World Association of Small Businesses (WASME)

WASME is an international organization that is a non-governmental organization of India's micro and small business units that establishes an international committee, focuses on rural development and applies an action plan model for the sustainable growth of rural industries.

8. Fund scheme for the revitalization of traditional industries

Since 2005, the government has established a fund to support these traditional small industries, promote higher productivity and promote their growth and development.

Critical evaluation

In recent years, fostering entrepreneurship has become an Indian movement. EDP ​​has been seen as an effective means of fostering entrepreneurship in the countryside. Hundreds of EDPs are carried out by about 686 organizations to provide entrepreneurial training to thousands of participants.

The main purpose of EDP is to make EDP trainees enterprise creators. Therefore, it seems necessary to check whether the purpose of EDP has been achieved. Simply put, we need to look back at the number of participants who actually started a business after the training. This requires an EDP evaluation.

To date, approximately 20 evaluation studies have been conducted by various organizations and individual researchers (SIET 1974, Sharma and Akhouri 1978, Awasthi and Sebastian 1996). Undoubtedly, these studies have different purposes, scopes, and content, but one thread that is common to all studies is an assessment of the effectiveness or impact of EDP, which is loosely defined.

One of the earliest attempts in this direction was made by a team of researchers and experts appointed by the Gujarat Industrial Finance Corporation to assess the effectiveness of EDP. The latest national evaluation study on the evaluation study of EDP was conducted by "Ahmedabad, Institute for Entrepreneurship Development in India" (Awasthi abd Sebastian 1996).

The main findings of this study are shown in Table.

You can see that the effectiveness of EDP is about 26%. In other words, one in four trainees actually started a business after being trained by an entrepreneur. However, the expected startup rate is slightly higher, around 32%.

Approximately 10% of trainees were found to be blocked for a variety of reasons at various stages in the process of establishing a company. It also suggests that if not effectively helped, they may join the category of 29 percent trainees who have already given up on the idea of ​​launching a venture.

Of the 430 trainees who couldn't be personally contacted during the field survey, 17% have already given up on the idea of ​​launching a venture, according to secondary sources: family, friends and neighbors. .. Some other activities.

In a nutshell, the effectiveness of EDP is not impressive, as about 07 out of 10 trainees did not start a business after receiving EDP training. This means that there are problems or revocations in the implementation of EDP. Therefore, EDP issues and constraints need to be considered.

One way to assess EDP is to assess the effectiveness of EDP in developing a “need for achievement” among entrepreneurs. This is also called "qualitative assessment of EDP".

Behavioral scientists use the following criteria to assess the effectiveness of EDP in entrepreneurial motivation:

1. Respondent's activity level
2. New business establishment
3. Total investment made
4. Investment in fixed assets made
5. Number of employees
6. Number of jobs created
7. Increased profit
8. Increased sales
9. Improved product / service quality
10. Faster repayment of loans

In other behavioral experiments, the effects of EDP are measured with the help of indicators related to entrepreneurial behavior.

Entrepreneurial behavior is measured in four dimensions:

1. Orientation plan

2. Achievement oriented

3. Expansion direction

4. Management orientation

Key takeaways:

1. The Entrepreneurship Development Program is primarily aimed at developing first-generation entrepreneurs who cannot become successful entrepreneurs on their own.
2. Past experience has shown that facility provision, technical assistance, management training, consulting, industrial information and other services alone are not sufficient to develop entrepreneurs.
3. The Entrepreneurship Program (EDP) is a program designed to help entrepreneurial motivation and effectively and efficiently acquire the skills and abilities needed to fulfil an entrepreneurial role.
4. Entrepreneurship development is the process of improving entrepreneurial skills and knowledge through a variety of training and classroom programs.
5. One of the key conclusions of the experiment was that traditional beliefs did not appear to hinder entrepreneurs, and proper training could motivate entrepreneurs as needed (McClelland & Winter1969).
6. The entrepreneurial procedure may be described as the stairs taken to installation a brand new commercial enterprise.
7. EDP ​​is vital for first-era marketers due to the fact it may be unsuccessful with without education.
8. Proper use of those sources enables to open up a healthful basis for healthful monetary and fast industrialization, as plentiful sources are to be had domestically.
9. Entrepreneurs expand and bring options to imported merchandise to save you immoderate dependence on different nations.
10. A two-day industrial motivation campaign to identify and motivate traditional / non-traditional entrepreneurs who may establish an MSE and lead to self-employment. Be organized.
11. Experience has shown that, apart from counselling and training, providing credit poses the most serious problems for poor women.
12. Training organization i.e. Small and Medium Enterprises – Conduct training programs for empowering female beneficiaries identified under the Institute for Development (MSME-DI), Institute for Entrepreneurship Development (EDI), NIMSME, NIESBUD, and schemes NGOs will be subsidized up to the maximum Rs. Per program, provided that the application from NER is recommended by NSIC / IIE, Guwahati, and such institutions provide a share of at least 25% of government grants and 10% in the case of NER. 10 million rupees.
13. IED Disha aims to teach educated and unemployed young people in the state the value of entrepreneurship and motivate them to enter the field of self-employment in 1987.
14. The main purpose of the government is to harness local talent and locally available resources.
15. In recent years, fostering entrepreneurship has become an Indian movement. EDP ​​has been seen as an effective means of fostering entrepreneurship in the countryside.
16. One of the earliest attempts in this direction was made by a team of researchers and experts appointed by the Gujarat Industrial Finance Corporation to assess the effectiveness of EDP.

References:

1. Prasanna Chandra: Project Preparation, Appraisal, Implementation; Tata McGraw Hill, New Delhi.
2. Pandey I.M.: Venture Capital - The Indian Experience; Prentice Hall of India.