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Basically the EDPs are meant to train and develop new entrepreneurs who act as catalytic

agents in the process of industrialization and economic growth. It is the entrepreneur who
organises and puts to use capital, labour and technology in the best possible manner for the
setting up of his enterprise. The entrepreneur with his vision and ability to bear risk can
transform the economic scene of the country. They play a vital role in initiating and
sustaining the process of economic development of a nation. It is the EDP through which the
entrepreneurs learn the required knowledge and skill for running the enterprise successfully
which ultimately contribute towards economic progress in the following ways:
1. Creates Employment Opportunities: Acute unemployment has been a chronic problem
of most of the underdeveloped and developing nations of the world. EDPs help solving the
problem of unemployment by creating adequate employment opportunities in setting up of
their own small and big industrial unit where the unemployed are absorbed. EDPs also help
the unemployed to opt for se employment by choosing entrepreneurship as a career. In this
way EDPs help the entrepreneur to get an opportunity to lead on independent and respectable
life in the society and at the same time enable others to get gainful employment. Various
programmes, schemes like Prime Ministers Rozgar Yojana, NREP (National Rural
Employment Programme) and IR (Integrated Rural Development Programme) etc. have been
initiated by Government of India to eliminate poverty and solve the problem of
unemployment.
2. Helps in Achieving Balanced Regional Development: Successful EDPs assist in
accelerating the pace of industrialisation in the backward areas and helps in reducing the
concentration of economic power in the hands of a individual. Government encourages to set
up industries in the backward areas to remove wide gap of income and wealth between the
rich and poor. The various concessions subsidies offered by the State and Central
Governments prompted the entrepreneurs to up their own small and medium industrial units
in the rural and backward areas. EDPs in setting up more and more industrial units in the
backward areas lead to the development of rural sector which helps in achieving balanced
regional development.
3. Prevents Industrial Slums: The towns and cities are highly congested and overcrowding
due to the growth of industrial slums which results in overburdening of civic amenities and a
lot of problems including adverse impact on the health of the people. EDPs help in solving
the above problems by preventing the growth of industrial slums through dispersal of
industrial units in different parts of the country including backward and rural areas. EDPs

help entrepreneurs to know about the various schemes, incentives, subsides and
infrastructural requirements for setting their