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Entrepreneurship Development in

India
Prof. Shrinivas V K

Prof. SVK
Approaches to ED
 HR Development
 EDP
 NEED

Prof. SVK
EDP
 EDP means programme designed to help a
person in strengthening his entrepreneurial
motive and in acquiring skills and capabilities
necessary for playing his entrepreneurial role
effectively

Prof. SVK
The Need for EDP
 Speed the process of activating the factors of
production
 Leading to higher rate of economic growth
 Dispersal of economic activities
 Development of backward and tribal areas
 Creation of employment opportunities
 Involvement of all sections of the society

Prof. SVK
Misconception about EDP
 EDP is solution for all problems
 EDP means only training
 Higher the number, better the EDP
 EDP success is the sole responsibility of
Trainer- motivators

Combined course may help

Prof. SVK
ED CYCLE

Prof. SVK
Objectives of the Programme
 To promote and development of SME that
would encourage self employment
 Stimulate new venture and expansion of
existing activities of SME in rural areas.
 Upgrade managerial skills of existing
entrepreneurs and develop potential
capabilities for potential entrepreneurs

Prof. SVK
ED Training should focus on
developing
 Entrepreneurial behaviors
Taking initiative, grasping opportunity, Managing
autonomously, solving problems creatively, Netwoking Etc
 Entrepreneurial attributes
Achievement orientation, self confidence, self esteem, high
internal locus of control, hard working, determination
 Entrepreneurial skills
Creative problem solving, negotiating, selling, strategic
thinking, intuitive decision making under uncertainty

Prof. SVK
Importance of
Training/development
 Ensures availability of skilled manpower at all management levels

 Enhancing abilities, potential among entrepreneurs

 Increase efficiency

 Maintain and enhance product quality

 Minimize wastages in production process

 Minimize accidents on the job

 Reduce fatigue and increase speed of work


Prof. SVK
 Standardization in industry and internal processes
Methods of Training
 Individual instruction

 Group instruction

 Lecture method

 Demonstration method

 Written instruction method

 Conference

 Meetings

Prof. SVK
Structuring EDP
 Survey of entrepreneurial opportunities
 Selection of entrepreneurs
 Experiences in EDP abroad

Prof. SVK
Pre requisites of EDP
 Selection of entrepreneurs

 Inputs for EDP

 Support system

 Follow up

Prof. SVK
Phases of EDP
 Select area from existing government policy guidelines/socio-
economic reports

 Techno-economic survey of the selected area; feasibility study

 Identify potential and existing entrepreneurs interested in starting


new business/expansion/diversification

 Training

 Follow up and consultancy services

Prof. SVK
Selection of entrepreneurs for EDP
 The programme is well publicized and promoted to attract maximum
applications for screening

 Selection of top 25 to 30 applicants only

 Applications screened for:

 Demographics and socio cultural data – age, education, work exp,


financial resources, type of business etc

 Motivation factors – pull factors, source of encouragement, credibility,


endurance, concreteness of plans

 Psychological test results- traits like risk taking, need for


achievement
Prof. SVK
Features of EDP
 Identification and careful selection of entrepreneurs for
training
 Developing the entrepreneurial capabilities of the
trainee
 Equipping the trainee with the basic managerial
understanding and strategies.
 Ensuring a viable industrial project for each potential
entrepreneur.
 Helping him to secure the necessary financial,
infrastructural and related assistance; and
 Training cost is highly subsidised and only token fee is
charged.

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Issues in EDP
 Structure and Composition of EDP

 Areas of operation

 Fixing Priorities

 Lack of specialists’ support

Prof. SVK
The operational problems
 Inherent inability
 Diverse opinions
 Poor strategy
 Lack of institutional commitment
 Lack of local support
 Non availability of inputs
 Poor follow-up
 Inadequate research facilities
 Ill planned training methodology
 Lack of creativity and commitment
Prof. SVK
Institutions in Aid of
Entrepreneurship Development

Prof. SVK
National Institute for entrepreneurship and Small
Business Development (NIESBUD),New Delhi
 Established by Government of India in 1983

 An apex body for coordination and supervison on activities of


various institutes engaged in entrepreneurial development

 Helps evolution of EDP, model syllabi, effective training


strategies, methodology, manuals and tools

 Activities undertaken:
 Organise and conduct training programmes
 Coordinate training activities of various agencies/institutes
 Provide affiliation to such institutes
 Hold examinations and confer certificates to trainers and trainees
Small Industries Service
Institutes (SISI)
 Three months part time evening courses in management

 4-6 weeks part time courses in intensive training in functional


areas (marketing, finance)

 Special courses in quality control, HR, production planning,


product development etc

 Mobile workshops imparting training on correct usage of tools


and equipment

 Helps with preparation of plant layouts

 Helps individual firms on specific problems faced


Small Industries Development
Organisation (SIDO)

 Runs EDP in collaboration with financial


institutes, directorate of industries

 Giveson the job training on shop floor


(carpentry, electrical devices)

 Sendsits officials/trainers to organisations to


update their knowledge
National Small Industries
Corporation (NSIC)
 Provides apprenticeship for 2 years

 Training supervisory staff of SSI up to 2 years

 Training to engineers up to 2 years

 Training workmen for 12 months

 Training to set up own venture

 Advice on machinery and components

 Production of technologically advanced machines


Entrepreneurship Development Institute
of India (EDII),Ahmedabad.
 Develops programmes for entrepreneurial training and
development

 Develops innovative training techniques for trainers

 Focused attention on women entrepreneurs with first such


EDP in 1988

 EDP for rural entrepreneurship development in U.P and


Orissa

 Famous for organising camps on entrepreneurship

 Condusted EDP in Sri Lanka, Nepal, Ghana, Kenya etc


National Alliance of Young
Entrepreneurs (NAYE)
 Contribution in encouraging women entrepreneurship

 Set up women’s wing in 1975

 This wing assists women in:

 Getting better access to resources, infrastructure, markets

 Identify investment opportunities

 Attending to problems of individual industries

 Sponsor participation in trade fairs, exhibitions, conferences

 Organise seminars, training programmes, workshops


MANAGEMENT
DEVELOPMENT INSTITUTE
(MDI)
Objectives of the Centre for entrepreneurship
 To provide a variety of services, on a non-profit basis, to
encourage, plan for, and link up entrepreneurs, firms,
and organizations in India and abroad
 To offer facilities and networking to entrepreneurs under
an Outreach Program
 To train students aspiring to be entrepreneurs
 To render services and training that may facilitate
entrepreneurs to operate in emerging areas
 To serve as a platform for various national international
centers

Prof. SVK
Institute of Entrepreneurship Development

 IED Odisha was established in the year 1987 with an aim to inculcate the value of
entrepreneurship to the educated unemployed youth in the state and to motivate
them to enter into the field of self employment.

 Since its inception the institute has trained more than one lakh entrepreneurs in
various fields with success rate about 30%.

 Presently the institute is focusing on skill based training for the youth.

 mission is to promote micro, small and medium enterprises through innovative and
need based entrepreneurship trainings.

 The institute has to act as a national pace setter in the field of entrepreneurship
education, consultancy, research study, training and development.

Prof. SVK
National Science & Technology
Entrepreneurship Park (STEP)
 The Science Parks and similar initiatives help in
creating an atmosphere for innovation and
entrepreneurship; for active interaction between
academic institutions and industries for sharing
ideas, knowledge, experience and facilities for the
development of new technologies and their rapid
transfer to the end user.

Prof. SVK
Objectives
 To forge a close linkage between universities, academic
and R&D institutions on one hand and industry on the
other.
 To promote entrepreneurship among Science and
Technology persons, many of whom were otherwise
seeking jobs soon after their graduation.

 To provide R&D support to the small-scale industry


mostly through interaction with research institutions.
 To promote innovation based enterprises.

Prof. SVK
Centre for Entrepreneurship
Development(CED)

Objectives of CED:
 To promote self-employment and Entrepreneurship
culture .
 To enhance employability of educated youth through
industry specific skill training
 Women empowerment
 NGO Capacity building for mass employment generation
in the rural areas.
Prof. SVK
Activities of CED
 To conduct Entrepreneurship Awareness Camps in the colleges
 To conduct Sector Specific Entrepreneurship Development
Programme
 To conduct Faculty Development Programme in Entrepreneurship
 To conduct Bankers / Development Officials Sensitization Programme
on Small Industry
 To conduct Women Entrepreneurship Development Programme
 To conduct Skill Development Courses in Catering Technology,
Fashion Technology and Information Technology.
 To conduct NGO Capacity Building Programme
 To undertake Industry consultancy services
 To undertake research assignments
 To collaborate with other agencies / organizations for mutually
beneficial activities Prof. SVK
Thank you…..
that’s it..

Prof. SVK
Significance and role of
Environment on ED
 Entrepreneurs are not born…….they are
made right from the childhood
 The environment around the entrepreneur
makes an entrepreneur

Prof. SVK
Environmental factors
 Parents
 Friends
 Teachers
 School atmosphere
 Neighbourhood
 Society around him

Prof. SVK
 Entrepreneurship is the result of the
interaction and assimilation of different social
and environmental factors

Prof. SVK
Entrepreneurial Environment
 Entrepreneurial Environment is a combination of
factors that play a role in the development of
entrepreneurship.
 First, it refers to the overall economic, socio-
cultural, and political factors that influence
people’s willingness and ability to undertake
entrepreneurial activities.
 Second, it refers to the availability of assistance
and support services that facilitate the start-up
process.

Prof. SVK
The available literature on entrepreneurial
environments can be grouped into three broad
streams:
 general environmental conditions for entrepreneurship;
 environmental conditions of a particular country or
region; and
 the role of public policy in shaping the entrepreneurial
environments.

Prof. SVK
General Environmental
Conditions
 General environmental conditions that may
influence entrepreneurship include:
 legal and institutional frameworks for efficient
functioning of private enterprises
 presence of experienced entrepreneurs and skilled
labor force
 accessibility of suppliers and customers or new
markets
 high degree of competition among firms
 favorable government policies
 provision of training and support services
 supportive infrastructure
Prof. SVK
 Inaddition, the literature suggests that the
characteristics of people, their skills, experience, and
motivation, play important roles in new venture
creation

Prof. SVK
Country/Region Specific Environmental
Conditions
 Countries that keep rules and regulations at a minimum,
offer tax and other incentives, and provide training and
counseling services to start-up entrepreneurs increase
the likelihood of new venture start-ups.
 Furthermore, factors such as availability of financial
resources, large size urban areas, and presence of
universities for training and research are found to be
very important to increase the rate of new venture
creation

Prof. SVK
Studies also show that entrepreneurs face several
obstacles, such as lack of financial assistance, lack
of information on various aspects of business,
excessive taxation, and high rate of inflation.

Prof. SVK
Role of Public Policy
 Scholars that focused on the role of public policy suggest
several policy options for developing entrepreneurship.
 These policy options include provision of
 venture capital funds
 tax-based incentives, and government procurement
programs
 protection of proprietary ideas and innovations
 investment in education and research
 explicit recognition of, and support for, entrepreneurship by
government agencies
 fostering of entrepreneurship by educational institutions
 and minimization of entry barriers.

Prof. SVK
Entrepreneurial motivation
Positive environment

Encourages entrepreneurial development and


growth

This is called entrepreneurial motivation

Prof. SVK
Greatest Motivation……
Money

But………

It is not alone that inspire an entrepreneur

Prof. SVK
Other motivating factors are:
 Internal
 External

Prof. SVK
Internal factors
 Family background
 Education background
 Training and work experience
 Desire for achievement
 Desire to head a unit

Prof. SVK
External Factors
 Availability of inputs or raw materials
 Demand of the product and large profits
 Availability of infrastructure and finances
 Availability of technology
 Short supply of the product
 Government initiative and assistance
 Ready availability of sick units

Prof. SVK
Role of Infrastructural Network

Prof. SVK
 The basic infrastructure at the place of the
project help in
 speedy implementation of the project
 Reduce costs
 Increase profitability

Prof. SVK
 Better or rapidly improving infrastructure in a
particular area may attract more
entrepreneurs and see enhanced
entrepreneurial activities

Prof. SVK
Basic infrastructure requirements
Certain infrastructural elements seem to make
substantial impact on the entrepreneurial
environment.

 modern transport and communication facilities that


provide easy access to suppliers and customers
 Road Network
 Connected to Rail
 Ports
 Airport

Prof. SVK
 location decisions of based on the community’s
ability to supply trained and capable workers and
on the proximity to research and development
institutions

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 existence of universities and research and
development programs
 a well-educated and technically skilled labor
force.

Prof. SVK
 Supporting industries
 Climatic conditions
 Logistic support
 Electricity
 water

Prof. SVK
Role of Infrastructural Network
 Most commercial operations such as venture
capital firms and commercial banks tend to
exhibit greater interest in concentrated, urban
areas that usually have a well-developed
infrastructure and concentrated demand for
funds
 They also favour areas where businesses are
easier to supervise and monitor and the cost
of supervising and monitoring loans is
relatively low
Prof. SVK
 The basic infrastructure at the place of the
project help in
 speedy implementation of the project
 Reduce costs
 Increase profitability

Prof. SVK
 Better or rapidly improving infrastructure in a
particular area may attract more
entrepreneurs and see enhanced
entrepreneurial activities

Prof. SVK
Prof. SVK