UNIT 4

ENTERPRENUERSHIP DEVELOPMENT PROGRAMME

Q1) Explain the concept and meaning of EDP.

A1) Entrepreneur talent exists in every society and sections of society.  In developed countries a favourable social economic environment helps in exploiting latent entrepreneurial talent. However in developing countries, particularly in backward areas and unfavorable social economic environment hinders the growth of entrepreneurial talent. Tremendous latent entrepreneurial  talent exist in our country, if properly nursed, will accelerate the rate of social economic growth, balanced regional growth, exploitation of local resources., creation of sufficient employment and self employment. This realization on the part of planner has caused the emergence of entrepreneurship development programme for the various target groups of our society. Entrepreneurship development programmes are being conducted and organized by large number of government and non government institutions with a view to convert latent entrepreneurial ability into actual entrepreneurial ability in various target groups of our population.  Such entrepreneurial development programme have got momentum in most of the development countries such a s Sri Lanka, China Thailand ,Philippines, Indonesia, Bangladesh, Malaysia and South African countries.

   A new development strategy was introduced in our country in 1969 for industrial growth in relatively backward areas to reduce regional disparities. However it was realized that the only fiscal and financial incentives would not be enough to achieve this objective. Technical assistance will also be required if non traditional sources of entrepreneurial talent where to be tapped. It was in response to this requirement that financial institutions of Gujarat started a practical result-oriented programme to develop such entrepreneurs.

   Entrepreneur Development Programme was initiated in 1970 under a sponsorship of state financial cum promotion institution and Gujarat Industrial and Investment Corporation. Later on the financial institutions and industrial promotions agencies jointly sponsored a separate centre for entrepreneurship development to administer programmes. The success of this centre convince the national financial institution that such programmes where relevant for the states and national agency would be set up. The Entrepreneurship Development Institute of India was set up in 1983 to conduct research offer consultancy and training to assist state level agencies in carrying out the programmes.

    These programmes where conducted in the belief that the psychological behaviour testing can identify potential entrepreneurs and the proper guidance in the selection of favourable venture and appropriate practical training can develop successful entrepreneurs.

MEANING OF ENTREPRENEURSHIP DEVELOPMENT PROGRAMME

Entrepreneurship Development Programme means a programme conducted to help a person on strengthening his entrepreneurial motive and acquiring skill and capabilities required for playing and discharging his efficiency.      

Entrepreneurship development programme is a programme meant to develop entrepreneurial abilities among the people. The concept of entrepreneurship development programme involves equipping a person with the required skills and knowledge needed for starting and running the enterprise.

EDP is an effective way to develop entrepreneurs which can help in accelerating the pace of socio-economic development, balanced regional growth, and exploitation of locally available resources. It takes care of all the constraints and therefore it is proved to be one of the most effective tools for developing new entrepreneurs.     

 Entrepreneurship development programme is primarily for developing first generation entrepreneurs who on their own cannot become successful entrepreneurs. It covers three major variables – location, target group and entrepreneurs, suitable location and proper entrepreneur activities must match or it the objective is to develop North East Region then the potential target group and the feasible entrepreneurial ventures must follow.

  Thus,” Entrepreneurial Development Programme (EDP) may be defined as “a programme designed to help an individual in strengthening his entrepreneurial motive and in acquiring skill and capabilities necessary for playing his entrepreneurial role effectively.”

Q2) Explain the objectives of EDP.

A2) The objectives of entrepreneurship development programme are as follows-

 (1)To analyze environment related to small industry and small business;

 (2)To select project/product;

 (3)To formulate project

 (4) Develop and strengthen their entrepreneurial quality/motivation;

(5) To understand the process and procedure of setting up of small enterprise;

 (6) To know and influence the source of help/support needed for launching the      enterprise;

 (7)To acquire the basic management skills;

 (8)To know the pros and cons of being an entrepreneur; and

 (9) To acquaint and appreciate the needed social responsibility/entrepreneurial disciplines.

(10)To let the entrepreneur set or reset the objectives of his business and work individually and along with his group for their realization.

 (11) To prepare him for accepting totally unforeseen risks of business after such training.

 (12) To enable him to take strategic decisions.

 (13)To enable him to build an integrated team to fulfill the demands of tomorrow.

 (14) To communicate fast, clearly and effectively

(15) To develop a broad vision to see the business as a whole and to integrate his function with it.

(16) To enable him to relate his product and industry to the total environment, to find what is significant in it and to take it into account in his decisions and actions.

(17) To enable him to cope with and coordinate all relevant paper work, most of which is statutorily obligatory.

(18) To make him accept industrial democracy, that is, accepting workers as partners in enterprise; and

(19) To strengthen his integrity, honesty, and compliance with law, the key to success in the long run.

Q3) What should be the contents of EDP?

A3) The course contents of an EDP should be formulated as per the objectives of the EDPs.

It should consist of the following:

1. General Approach to Entrepreneurship:

The participants should be given exposure about the conceptual framework of entrepreneurship role, expectation, Entrepreneurial environment etc. Innovative behaviour related issues should be focused to enlighten the entrepreneurs about their future challenges and prospects. Besides, development agencies should try to design appropriate strategies enabling the potential entrepreneur to tackle different risk inherent in an innovation activity.

2. Motivational Training:

Motivational training inputs are meant for developing the motivation of potential entrepreneurs and their enterprise building skills. Besides, motivational inputs also include psychological games, tests, goal setting exercises, role play etc.

The motivational inputs will be aimed at increasing the participants, understanding of the entrepreneurial personality and entrepreneurial behaviour and bring about through self-study, changes in self-concept, value, skills thereby leading to positive entrepreneurial behaviour.

The major motivational inputs may be given in the beginning of the training programme on full time basis though the learning effected through them will be reinforced and used throughout the training programme. The understanding of the entrepreneurial personality and behaviour will be supplemented through interface with one or two successful as well as not so successful entrepreneurs.

3. Developing Management Skills:

Prospective entrepreneurs should be given exposure in different types of management problems. It would sharpen their management skills. The management problems take different forms and the management patterns are peculiar to the situation. So, training for exposing managerial skills will be arranged in keeping the situational requirements. However, managerial aspects should include production planning, labour laws, cost analysis, financial accounting, selling arrangements, taxation laws etc.

4. Training for Project Management:

Project inputs are required to help the potential entrepreneurs to develop their project ideas into bankable projects. They should be given acquaintance with the industrial opportunities in the area and also necessary guidance on product selection. Necessary knowledge about project feasibility, viability and implementation should also be given to the potential entrepreneurs.

Under project preparation, technical feasibility includes selection of technology, availability of raw materials, selection of location and site, availability of plant and machinery, infrastructure facilities, roads, transport, power, manpower/personnel requirement.

Similarly, market analysis, level of competition, capital cost, working capital requirement, estimated cost of production, projected sales volume, profitability estimates, expected rate of return, projected cash flows and break even analysis are different aspects that have to be incorporated in assessing the commercial viability of the project.

Sufficient exposure is necessary with regard to financing of the project. Financing arrangement generally includes sources of financing, promoter’s contribution, level of institutional financing, seed capital, investment subsidy etc. Prospective entrepreneurs should be instructed about the importance of timely implementation of project. They should be given proper training about scheduling of various activities, provision for effective supervision and need for avoiding delay and consequent cost escalation.

5. Structural Arrangement:

Training inputs also aim at familiarising the participants about the proposed structural arrangement for the business or industrial unit. They should be given adequate familiarization about government policy regarding development of industries, especially with regard to small scale industries, registration and licensing procedures, forms of organisation like proprietary, partnership, private company and Joint Stock Company, institutional setup etc.

6. Support System:

In most of the cases, participants are generally first generation entrepreneurs and they do not know about the government and institutional support system. Support system may also be used as motivational inputs to encourage the participants about their future prospects. They should be familiarised with the incentives/concessions available, tax-incentives, tax holiday, backward/zero industries districts concessions, soft loan scheme, special schemes for technicians etc.

This should be followed by acquainting them with procedure for approaching government departments and agencies, applying for and obtaining these concessions from them.

7. Factory Visits/In-Plant Training:

Practical exposure is also necessary. Depending upon their products the potential entrepreneurs may feel the need to gain more knowledge about the production process etc. by visiting some of the similar units in production. For this purpose, factory visits may have to be arranged.

Similarly, entrepreneurs who select relatively sophisticated products will be expected to have a good idea of the product and the process facilities should be arranged for in-plant training or prototype development on exceptional basis.

Q4) Explain the role of entrepreneurship development programme.

    A4) EDPs have great role and relevance in increasing the supply of new entrepreneurs to accelerate the process of industrialization. It is widely accepted that persons interested to become entrepreneur will be greatly helped if appropriate training and development programmes are made available to them.  Need/importance of EDPs can be judged on the basis of following points.

(1) Eliminating Poverty and Unemployment: Most of the under developed countries are confronted with the chronic problem of unemployment. EDPs can help these unemployed people in getting self-employment and at the same time generating employment opportunities for others. Various programs initiated by the government like NREP (National Rural Employment Programme, IRDP (Integrated Rural Development Programme etc. are aimed at tackling unemployment problem. 

(2) Balanced Regional Development: Successful EDPs help in accelerating the pace of industrialisation resulting in the reduction of concentiation of economic power. Small scale units can be set up in remote areas with little financial resources and it helps in achieving balanced regional development. EDPs aimed at promoting small scale units are more useful for balanced regional development than medium and large scale units.

(3) Economic Growth: The relevance of EDPs can be clearly understood by their role in the economic development of developing countries like India. Such programmes create many entrepreneurs who are able to establish small and micro enterprises which require less investment in funds. It increases new investment and bring innovations. All these activities in turn stimulate the economic growth.

(4) Optimum use of Locally Available Resources: The EDPs can help in harnessing locally available resources by training and educating the entrepreneurs. Since abundant resources are available locally, proper use of these resources will help in creating a healthy base for sound economic growth and rapid industrialisation. EDPB also help in minimising excessive scraps, defective output and wastage in the production process.

(5) Promote Innovations: Entrepreneurial Development Programmes initiate the people for innovations and creativity. EDPs have become a vital strategy for harnessing the vast untapped human skills, to channelize them into accelerating industrialisation.

(6) Defuses Social Tension: Every youth feels frustrated if he does not get employment after completing his education. The surplus young energies can be diverted to self-employment careers to help the country. This may defuse social tension and unrest among youth.

(7) Development of Entrepreneurship Qualities: Thus the EDPs are needed to induce achievement motivation and develop entrepreneurial characteristics or competencies among young persons through training with a view to making them successful future entrepreneurs.

(8) Preventing Industrial Slums: More industrial units are located in highly congested areas and it leads to creation of industrial slums. EDPs help in removal of these slums as entrepreneurs are provided with various schemes, incentives, subsidies and infrastructural facilities to set up their own enterprises in all the places. It will help in controlling industrial slums and also reduces pollution, traffic congestion and overcrowding in developed areas.

(9) Fulfilment of Dreams: EDP is necessary to motivate the potential entrepreneurs to convert their dreams into action.

(10) Successful Launching of New Units: EDP develops motivation, competence and skills necessary for successful launching, management and growth of the enterprise.

(11) Development of Rural and Backward Areas: If new enterprises are set up in backward and rural areas of a developing country like India, they are sure to mitigate poverty in, such areas and also to remove lopsided economic development that is, concentration of business enterprises in urban areas only.

Q5) Explain the Relevance of Entrepreneurship Development Programme.

A5) “No EDP, no economic development.” Entrepreneurial development plan can be framed and implemented without its relevance to the political, economic, social and legal environment.

Following are the relevance of entre­preneurial development programme:

1. They should be meeting the main object of development such as generating employment, set up ancillary, small and medium sized industry, and introduction of new entrepreneur and maintain stability etc.

2. There should be proper arrangement of training and education such as setting of technical and electrical institute, handicraft making institute.

3. There should be promotion to entrepreneurial skill such as technical and managerial skill. The main aim is to import management and technical know-how required by the participants to operate their business entrepreneur.

4. It develops the spirit of social responsibility by spreading social consciousness and awareness about new venture, new technology, and managerial skill, uninterrupted supply of goods or services in society.

5. There should be improvement in mobility of entrepreneurs by providing training to new entrepreneurs and after that acquired employ­ment inside the area or outside the area.

6. There should be assistance in preparation of new projects about product /services, financial services, market of respective products.

7. Entrepreneurial Development Programme started several types of self-employment programme for removing unemployment by Inte­grated Rural Development Programme (IRDP), etc.

8. There should be balanced regional development and setting up of more units which lead to the development of backward areas through EDP.

9. Effective EDP is helpful in establishment and development of ancillary, tiny, small and medium industry and business.

10. EDP should be helpful in elimination of poverty and unemployment.

11. EDP should be helpful in search of potential entrepreneur.

12. It should be helpful in constitution of institutional framework.

Q6) What are the achievements of entrepreneurship development programme?

A6) The prime goal of EDPs is to create entrepreneurs who adopt entre­preneurial career and set up their own new small business ventures. It is a prerequisite for an overall economic development of any country.

The following are the achievements of EDP:

1. Improvement in per capital income- Entrepreneurs are always looking for the opportunities and exploring & exploiting the opportunities. They lead in organizing various factors of production by putting them into productivity through establishing new entrepreneurs. When more & more enterprises will establish, it will result in the increment of employment and generating wealth in the form of goods and services. Therefore, EDP play a positive role in setting up of more units and helps in generating more employment and income.

2. EDP helps an entrepreneur in formulating projects by providing the entrepreneur necessary technical guidance & support.

3. EDP helps an entrepreneur in expansion and establishment of new industrial or venture or business.

4. EDP plays an important role in developing the qualities through entrepreneurial training, education, experiments and orientation programmes.

5. EDP helps in balanced regional development and reduces concen­tration of economic power in few hands only.

6. It helps in establishing entrepreneurial development institute such as EDII, NIESBOD, and NAYE CED etc.

7. Miscellaneous achievements -

i. Increment in production and productivity.

ii. Expansion of market.

iii. Decentralization of economic resources

iv. Promote the spirit of social responsibility

v. Searching new entrepreneurial opportunity.

Major achievements of Entrepreneurship Development Programmes:

1. 686 organizations are engaged in organizing entrepreneurship development.

2. Around 30% entrepreneurship development trained entrepreneurs put up their enterprise.

3. The schemes offered which include entrepreneurship developments concepts are:

(a) Prime Minister’s Rojagar Yojna (PMRY)

(b) Swarnajayanti Gram Swarojgar Yojna (SGSY)

(c) Rural employment Generation Programme (REGP)

Q7) Explain the role of government in organising entrepreneurship development programme?

A7) Government plays a very important role in developing entrepreneurship. Government develop industries in rural and backward areas by giving various facilities with the objective of balances regional development. The government set programmes to help entrepreneurs in the field of technique, finance, market and entrepreneurial development so that they help to accelerate and adopt the changes in industrial development. Various institutions were set up by the central and state governments in order to fulfil this objective.

Institutions set up by Central Government-

Small industries development organization (SIDO):

SIDO was established in October 1973 now under Ministry of Trade, Industry and Marketing. SIDO is an apex body at Central level for formulating policy for the development of Small Scale Industries in the country, headed by the Additional Secretary & Development Commissioner (Small Scale Industries)under Ministry of Small Scale Industries Govt. of India. SIDO is playing a very constructive role for strengthening this vital sector, which has proved to be one of the strong pillars of the economy of the country. SIDO also provides extended support through Comprehensive plan for promotion of rural entrepreneurship.

Management development Institute (MDI):

MDI is located at Gurgaon(Haryana).It was established in 1973 and is sponsored by Industrial Finance Corporation Of India, with objectives of improving managerial effectiveness in the industry. It conducts management development programs in various fields. In also includes the programmes for the officers of IAS, IES, BHEL,ONGC and many other leading PSU’s.

Entrepreneurship development institute of India (EDI):

Entrepreneurship Development Institute of India (EDI), an autonomous and not-for-profit institute, set up in 1983, is sponsored by apex financial institutions – the IDBI Bank Ltd., IFCI Ltd., ICICI Bank Ltd. and the State Bank of India (SBI). EDI has helped set up twelve state-level exclusive entrepreneurship development centres and institutes. One of the satisfying achievements, however, was taking entrepreneurship to a large number of schools, colleges, science and technology institutions and management schools in several states by including entrepreneurship inputs in their curricula. In the international arena, efforts to develop entrepreneurship by way of sharing resources and organizing training programmes, have helped EDI earn accolades and support from the World Bank, Commonwealth Secretariat, UNIDO, ILO, British Council, Ford Foundation, European Union, ASEAN Secretariat and several other renowned agencies. EDI has also set up Entrepreneurship Development Centre at Cambodia, Lao PDR, Myanmar and Vietnam and is in the process of setting up such centres at Uzbekistan and five African countries.

All India Small Scale Industries Board (AISSIB):

The Small Scale Industries Board (SSI Board) is the apex advisory body constituted to render advise to the Government on all issues pertaining to the small scale sector. It determines the policies and programmes for the development of small industries with a Central Government Minister as its president and the representatives of various organization i.e. Central Government, State Government, National Small Industries Corporations, State Financial Corporation, Reserve Bank of India, State Bank of India, Indian Small Industries Board, Non government members such as Public Service Commission, Trade and Industries Members.

National Institution of Entrepreneurship and Small Business Development (NIESBUD), New Delhi:

It was established in 1983 by the Government of India. It is an apex body to supervise the activities of various agencies in the entrepreneurial development programmes. It is a society under Government of India Society Act of 1860.The major activities of institute are:

i) To make effective strategies and methods

ii) To standardize model syllabus for training

iii) To develop training aids, tools and manuals

iv) To conduct workshops, seminars and conferences.

v) To evaluate the benefits of EDPs and promote the process of Entrepreneurial Development.

vi) To help support government and other agencies in executing entrepreneur development programmes.

vii) To undertake research and development in the field of EDPs.

National Institute of Small Industries Extension Training:

It was established in 1960 with its headquarters at Hyderabad. The main objectives of national Institute of Small Industries Extension Training are:

i) Directing and Coordinating syllabi for training of small entrepreneurs.

ii) Advising managerial and technical aspects.

iii) Organizing seminars for small entrepreneurs and managers.

iv)  Providing services regarding research and documentation.

National Small Industries Corporation Ltd. (NSIC):

The NSIC was established in 1995 by the Central Government with the objective of assisting the small industries in the Government purchase programmes. The Corporation provides a vast-market for the products of small industries through its marketing network. It also assists the small units in exporting their products in foreign countries.

Risk Capital and Technology Finance Corporation Ltd. (RCTFC):

RCTFC was established in 1988 with an authorized capital of 15 crores rupees. The main objectives of RCTFC are provision of risk capital for the extension and expansion of entrepreneurial development and venture capital for the projects with high techniques for technology development and transfer.

National Research and development corporation (NRDC):

NRDC was established in 1953 under Department of Science and Industrial Research under Government of India. Its main objectives are:

i) Providing assistance in technology transfer

ii) Transfer of technology

iii) Establishing relations with various technology institutions and collecting various indigenous techniques developed by them.

Indian Investment Centre:

This is an autonomous organization established by Central Government.Its main objective is to assist in promoting foreign cooperation with Indian entrepreneurs and providing necessary information to foreign entrepreneurs.

Khadi and village industries Commission (KVIC):

Khadi and Village Industries Commission established by an Act of Parliament in 1956.It is a service organization engaged in promotion and development of Khadi and Village Industries in rural areas. Its main objectives are:

i) Providing employment in rural areas.

ii) Improvement of skills

iii) Rural Industrialisation

iv) Transfer of Technology

v) Building strong rural community base and self reliance among rural people.

 Indian Institute of Entrepreneurship (IIE):

It was established by the Department of Small Scale Industries and Agro and Rural Industries in 1953.It is autonomous organization with its headquarters at Guwahati. Its main objective is to undertake research,training and consultancy activities in the field of small industry and entrepreneurship.

Miscellaneous Organisation:

In addition to above various organizations at all India level are assisting and are engaged in entrepreneur development. These include ICICI, IFCI, SIDBI, UTI, IDBI, IIBI etc.

National Alliance of Young Entrepreneurs (NAYE):

It has sponsored number of entrepreneurial development scheme in collaboration with various public sector banks. The main objective of the scheme is to encourage young entrepreneurs to explore investment and self –employment opportunities .It arranges for their training and assists them in procuring necessary finance. In 1975 NAYE also set up a Women’s Wing to make women self-reliant and to raise their status.

Centre for Entrepreneurial Development (CED) Ahmedabad:

It was sponsored by the Government of Gujrat and public financial institutions operating in the State. It conducts entrepreneurial development programmes at various centres. The important features of training programme are:

i) Training programmes were conducted after survey for opportunities was made.

ii) Appropriate linkage was established with supporting agencies supplying finance, factory sheds, raw materials, etc.

iii) Behavioural tests were conducted to select the entrepreneurs.

iv) Training programmes covered theoretical and practical aspects.

v) Full time project leader took follow up action after the training was over.

Institute for Entrepreneurial Development (IED):

It was set up by the IDBI in association with other financial institutions, public sector banks and the State Governments. The IEDs was set up to fulfil the entrepreneurial development needs of the industrially backward States in the country.

Technical Consultancy Organisation (TCOs):

A network of TCOs has been established by All India Financial Institutions and State Government throughout the country. These organizations have been set up to provide comprehensive package of services to entrepreneurs in general and to small business entrepreneurs in particular. Their main functions include the following:

i) Identifying potential industrial project.

ii) Preparing project reports, feasibility reports and pre-investment status.

iii) Identifying potential entrepreneurs.

iv) Providing technical and administrative support.

v) Conducting techno-economic studies of the projects.

vi) Market research and surveys.

vii) Rendering advice to set up laboratories and design centre.

Public  Sector Banks:

Public sector banks in association with NAYE have been conducting entrepreneurial development programmes. The main thrust of these banks has been to identify potential entrepreneurs in rural and backward areas.For example Punjab National Bank started entrepreneurial assistance programme in March 1977 in th States of West Bengal and Bihar. Similarly, Bank of India started entrepreneurial assistance programme since August 1972 in the States of Punjab, Rajasthan , Himachal Pradesh, J& k and the Union Territories of Chandigarh and Delhi.

The important Forms of entrepreneurial assistance are:

i) Identifying potential entrepreneurs

ii) Identifying viable projects.

iii) Assisting in preparation of project profiles

iv) Helping in project evaluation.

v) Arranging practical training.

vi) Financing the projects.

Institutions set up at State Level

There are a number of institutions establishes at state level for organizing, developing, developing, assisting and making successful entrepreneurial development programmes. Prominent among these are:

i) Small Industries Service Institute (SISI)

ii) State Financial Corporation (SFC)

iii) State Small Industries Corporation (SSIC)

iv) District Industries Centres(DIC)

v) Technical Consulting Organisation Ltd. (TCO)

vi) Industrial Directorates

vii) Commercial and Cooperative Banks

viii) State Industrial Development Corporation

ix) Industrial Estates

x) State Industries Corporation

Q8) Write a note on “Critical Evaluation of EDP”.

A8) Evaluation of EDPs begins with an assessment of philosophy or the central objective of the programme. The agency conducting the programme must be clear about the purpose underlying entrepreneurial development.

The objective may be to increase the production, to help the entrepreneur for selection of the product or project and for formulation of the project, to uplift certain people, to appreciate the needed social responsibility etc. Evaluation of EDPs means to check-

1. How these programmes do their work properly or not,

2. How many problems are faced by these programmes at the time of implementation?

1. How these programme do their work properly or not:

These programmes do their work properly or not, we can measure with the help of following aspects:

i. Selection strategy and the Procedure – The success of an EDP depend largely on proper selection of trainees. Evaluation of selection strategy and the procedure is very necessary. The Behavioral Science Centre (India) has been rating the selection of potential entrepreneurs, positive self-concept, initiative, independence, problem solving, hope of success, searching environment and time bound planning.

ii. To measure the financial result of Entrepreneur – In order to judge the financial health of units, return on capital employed, net profit over sales, net profit over net-worth and other ratios were used.

iii. To check the knowledge and ability of the Entrepreneur – For evaluation of the EDP, to check or measure the knowledge and ability of the entrepreneur. It refers to the education, training and experience of the entrepreneur.

iv. To consider the Socio-cultural background of Entrepreneur – It implies the environment in which the entrepreneur was born and brought up. It considers the values and attitudes of the entrepreneur.

v. To consider the Environmental Variables – For evaluation of these programmes, should consider the environmental variables. Environmental variables include Government policies, Market conditions, Availability of technology and Labour situation.

2. Problems faced by entrepreneur development programmes:

  EDPs suffer on many counts.

The problems are the part of those who are involved in process such as:

i. The trainers

ii. The trainees

iii. The Entrepreneur Programme Organization

iv. The supporting organization

v. The State Government.

There are various problems faced at the time of organizing these programmes.

These problems are explained as follows:

1. Lack of National Level Policy:

There is no suitable national level policy in India for entrepreneurship development. The Government did not formulates and enforce a policy for the promotion of entrepreneurship. Because of that the entrepreneurship development programmes faced many problems at the time of their organization.

2. Difficulty in Pre-Training Phase:

It is also stated that there is ill-planned training methodology inconsistency during that phase, its content sequence, theme and the focus of the programme is not clear. There are large number of problems in that phase such as identification of business opportunities, finding and locating target group, selection of trainee and trainers etc.

3. Over Estimation of Trainees:

There are over estimation of trainees by assuming that the trainees have aptitude for self-employment and training will motivate and enable the trainees in the successful setting up of their enterprise.

4. Time Period of EDPs:

The duration period of these EDPs varies between 4 to 6 months, which is too short a period to instill basic managerial skills in the entrepreneurs. In that short period the trainees cannot develop their skills those are important for a successful entrepreneurs.

5. Lack of Infrastructure Facility:

These programmes are conducted in the rural and backward areas. In that area there are many problems regarding class rooms, guest speaker etc., so that we can say that the EDPs faced many problems such as – no proper infrastructure facility.

6. Wrong Selection Procedure:

Because of competition, the institutions not follow uniform method for the selection of trainees or prospective entrepreneurs. Some of institutions are still debating whether to have a proper identification and selection of entrepreneurs for preparing successful entrepreneurs.

7. Absence of Competent Management or Faculty:

Experience revealed that entrepreneurial failures are mostly due to incompetence faculty and management. There is a problem of non­-availability of competent teachers and even they are available, they are not prepared to take classes in the rural and backward areas.

8. Non-Availability of Inputs:

Non-availability of various inputs i.e., raw materials, power etc., with poor follow up by the primary monetary institutions resulted failing in the entrepreneurship development programmes.

9. Lack of Standardization:

The course content of training are not proper standardized – It is also another problem that there are not standard even in terms of a broad module being adopted by interventions.

10. Other Problems:

Those involved in and concerned with the selection and follow up activities have either limited manpower support or a narrow linkage with other support agencies. Training institutions do not have much concern for the objectives identification and selection of entrepreneurs for preparing successful entrepreneurs.

The problem is that there is a low institutional commitment for local support to the entrepreneurs. There is also a very low level of involvement in the marketing of the products of the units. Most of the existing support organizations meant for maintenance operation are not for innovative functions.