KARNATAK UNIVERSITY

DHARWAD

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

SUBJECT

“Entrepreneurship Development Programme”

Assignment on

“Evaluation of Entrepreneurship development programme”

SUBMITTED BY

NAME ROLL NO

Veerangouda Patil MBA09001052

Venkatesh Barker MBA09001053

Vinayak Desai MBA09001054

Vinod Kumar MBA09001055

Vishwas Raichur MBA09001056

G. Yashwanth Kumar MBA09001057

Zelam Palresha MBA09001058

Nakambuku Joyce MBA09001059

SUBMITTED TO

Prof. Ramanjaneyalu
Entrepreneurship Development Programmes:
Introduction:
Entrepreneurial talent exists in every society and in all sections of society. In
developed countries, a favorable socio-economic environment helps in exploiting latent
entrepreneurial talent. In India, it is believed that tremendous latent entrepreneurial talent exists
which, if properly harnessed, can help accelerate the pace of socio-economic development,
balanced regional growth, exploitation of locally available resources and creation of gainful
employment and self-employment. Such a realization on the part of planners and policy
formulators has resulted in the emergence of Entrepreneurship Development Programs (EDPs)
for various target groups of population in the country.
Meaning:
Entrepreneurship Development Program means a programme designed to help a person in
strengthening his entrepreneurial motive and in acquiring skills and capabilities necessary for
playing his entrepreneurial role effectively. A Programme which seeks to do this can qualify to
be called an EDP. Thus an EDP aims at developing entrepreneurial motives, skills and helping to
play his/her role as an entrepreneur effectively.
EDP has an important role to play in solving the unemployment problem.
Unemployment- the state of being jobless is a burning problem that affect both developed as well
as the developing countries. India is facing chronic unemployment problem. The most alarming
form of unemployment, today is educated unemployment. The educated unemployed represents
the intellectual section of the society, the frustration and discontent of which paves the path of
political instability as well as an atmosphere of pessimism and loss of confidence in the
Government. The unemployment among the educated is higher than among the uneducated. The
rate of unemployment increases with the level of education.

Entrepreneurial Development Programme:

The basic objective of an Entrepreneurial Programme can be summarized as
follows:

 To develop and strengthen there entrepreneurial quality/motivation

 To analyze environment relating to small industry and small business
  To select project or product.
 To formulate project.
 To understand the process and procedure of setting up of small enterprise.
 To know and to influence the source of help/support needed for launching enterprise.
 To acquire the basic managerial skills.
 To know the pros and cons of being an entrepreneur
 To Acquaint and appreciate the needed social responsibility/entrepreneurial discipline.

An analysis of the development process that helps emergence of people opting for
entrepreneurial career in the society and succeeding in finally setting up an enterprise reveals that
it follows a sequence of development in individual personality cum ability and capabilities.

a. Entrepreneurial quality or motivation.

b. Capability for enterprise launching or resourcing.
c. Ability for enterprise management.
d. Some of the responsibilities to the society that promote or support them.

The task of making entrepreneurs is by no means an easy job. Any programme striving to this end should
be in tune with the existing government policies to encourage entrepreneurship. It is necessary that a
favourable climate is built up and a friendly support system made available.

The task of developing entrepreneurship comprises of:

a. Identifying and carefully selecting those who could be developed as entrepreneurs.

b. Developing their entrepreneurial capabilities.
c. Ensuring that they have a viable industrial project.
d. Equipping them with a basic administrative, financial and managerial capabilities: and
e. Helping them to secure necessary financial and other infrastructural assistance.
EVALUATION OF ENTREPRENEURSHIP DEVELOPMENT
PROGRAMME

Evaluation of Entrepreneurship Development Programs assesses the efficacy, degree of

success, and the contribution of entrepreneurship development programs (EDPs) in India. It
delineates the factors contributing to the success or failure of such programs, and evaluates the
role of support agencies with reference to the promotion of first-generation entrepreneurs
through EDPs. Based on data generated from extensive interviews with more than 1,500 EDP
trainees, nontrainees, and various officials, and using rigorous statistical as well as alternative
techniques, the authors highlight a number of factors affecting the quality of EDPs. They
conclude that entrepreneurship development programs have fulfilled expectations--meeting most
cost-benefit criteria--specifically, and present various corrective measures for streamlining the
process of implementation of these programs.

The entrepreneurship development movement has steadily gained momentum in India

since the first comprehensive Entrepreneurship Development Programme (EDP) was launched in
1970. Since then, EDPs have been assimilated into industrial and rural development initiatives
throughout the country. Despite the rapid growth and spread of this movement there has, as yet,
been no systematic attempt to evaluate the effectiveness of the EDPs and the impact they have
had in promoting entrepreneurship and employment. This includes assesses the efficacy, degree
of success, and the contribution of entrepreneurship development programmes in India. It
delineates the factors contributing to the success or failure of EDPs and evaluates the role of
support agencies with reference to the promotion of first generation entrepreneurs through these
programmes. Based on data generated from extensive interviews with more than 1,500 EDP
trainees, non - trainees and various officials, and using rigorous statistical as well as qualitative
techniques, the authors highlight a number of factors affecting the quality of EDPs. Among the
issues they explore are the variations in the 'start - up' rates across states, the characteristics of
organizations conducting EDPs, and the socio - economic categories and background of the
trainees. To make these programmes more effective, what needs to be done is to streamline the
process of implementation. This pioneering work will be of considerable interest to those
involved in entrepreneurial research and training, management education, organizational
development, and business and industrial studies.

Entrepreneurship is an emerging, active and multidisciplinary research specialization.

EDI fosters entrepreneurship research by bringing people, ideas and resources together to
explore the entrepreneurial processes and performance in regional, international, sectoral,
organizational, family firm and social enterprise contexts.

The ongoing transformations in the national and international economy have an impact
on various aspects of Entrepreneurship and in order to gain an insight into the possibilities and
implications of these developments, research has been accepted as the most powerful tool.

Entrepreneurship has been considered the backbone of economic development. It has

been well established that the level of economic growth of a region to a large extent, depends on
the level of entrepreneurial activities in the region. The myth that entrepreneurs are born, no
more holds good, rather it is well recognised now that the entrepreneurs can be created and
nurtured through appropriate interventions in the form of entrepreneurship development
programmes.

SCHEME FOR ASSISTANCE FOR STRENGTHENING OF TRAINING

INFRASTRUCTURE OF EXISTING AND NEW ENTREPRENEURSHIP
DEVELOPMENT INSTITUTES (EDIs)

The scheme envisages providing financial assistance to State-level existing/proposed

institutions meant for supporting entrepreneurship development and self employment activities.
Under this scheme, grant is given for setting up of new entrepreneurship development
institutions (EDIs) and also for up-gradation and modernisation of existing EDIs in the country.
Under the scheme, a matching grant of 50 per cent, subject to a ceiling of Rs.100 lakh, is
provided for building, equipment, training aids etc., the balance being contributed by the
State/Union Territory Governments and other agencies. The financial assistance provided under
this scheme is only catalytic and supportive to the contribution and efforts of State/Union
Territory Governments and other agencies. Under no circumstances grant funds provided under
the scheme can be used to meet the recurring expenditure of the institute.
 The institutions/organisations seeking assistance under this scheme should be registered
as not-for-profit organisation with entrepreneurship development as its main objective, should
possess a clear title of the land required for setting up of the proposed/existing institution, have a
separate bank account in a scheduled bank in which all receipts/funds received by the institute
should be credited and payments made on the basis of authorisation by the Governing Council of
the institute.

All the proposals under this scheme are required to be recommended by and routed
through the concerned State/UT Government.

SELF-EMPLOYMENT AND ENTREPRENEURSHIP DEVELOPMENT

PROGRAMMES

Integrated Rural development Programme

Poverty eradication has been one of the major objectives of planned development. The
strategy and policy of direct attack on poverty by way of target approach for rural poor came into
being in the Fourth Five Year Plan. With the main objective of improving the asset base of the
poor and to involve the poor in the production/income generation processes of the economy,
Integrated Rural Development Programme (IRDP) was initiated. IRDP was taken up initially in
2300 blocks and has been extended to all the blocks of the country since 2nd October, 1980.

PROGRAMME
IRDP aims at providing income generating assets and self-employment opportunities for
the rural poor. Assistance under IRDP is given to target group of rural poor belonging to families
Below Poverty Line (BPL), in the form of subsidy by the Government and term credit by
financial institutions.
CRITERIA FOR ALLOCATION OF FUNDS TO THE STATES

Allocation of funds to States is being made by the Central Government in proportion to the
poverty levels in each State on the basis of official estimates of the Planning Commission. These
official estimates of poverty are arrived at by the Planning Commission based on the National
Sample Survey Organisation Consumer Expenditure Surveys conducted every five years.
Devolution of funds to districts is based on a formula evolved by the respective State
Government. Further devolution to the Blocks is done by the Governing Body of the DRDA
based on the criteria approved by it.

Target Group

The target group consists of families of small and marginal farmers, agricultural
labourers and rural artisans etc. Whose per capita monthly expenditure does not exceed the
poverty line (ranging between Rs.216.65 and Rs.327.48 for different States/UTs) as estimated by
the Planning Commission. Currently, the Below Poverty Line census is being carried out in all
the States and the revised poverty line will be used to categorise BPL families. Within the target
group, special safeguards have been provided by reservation of
 50% benefits for SCs/STs,
 40% for women and
 3% for physically handicapped persons.

Priority is also to be given to women headed households, assignees of surplus land, freed
bonded labourers and acceptors of small family norm. However, this should not in any way
adversely affect the safeguards provided for SCs/ STs, women and physically handicapped
persons.
The flow of financial assistance (subsidy + credit) to the categories described above
should be commensurate with the percentage of the physical coverage.
PATTERN OF SUBSIDY

The pattern of subsidy is

 25% for small farmers;
 331/3% for marginal farmers, agricultural labourers, and rural artisans; and
 50% for SCs/STs beneficiaries and physically
 handicapped persons.

The ceiling on subsidy in respect of individuals is

 Rs.4000 in normal areas
 Rs.5000 in DPAP/DDP areas
 Rs.6000 for SC/ST families and physically handicapped persons;
 Rs.7,500 or 50% of the project cost, whichever is less for unemployed educated youth;
and
 For activities involving at lease 5 persons, the ceiling has been fixed at Rs.1.25 lakhs or
50% of the project cost, whichever is less.

Organizations for EDPs

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

National Institute for Entrepreneurship and Small Business Development (NIESBUD)

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

The activities of the Institute include evolving effective training strategies and methodology;
standardizing model syallbi for training various target groups; formulating scientific selection procedure;
developing training aids, manuals and tools; facilitating and supporting Central/State/Other agencies in
executing EDPs; conducting such programmes for promoters, trainers and entrepreneurs which are
commonly not undertaken by other agencies; maximizing the benefits and accelerating the process of
entrepreneurship development and above all organizing all those activities that help develop
entrepreneurial culture in the society.

The Institute is also the secretarial for the National Entrepreneurship Development board
(NEDB), the apex body which determines policy for entrepreneurship development in the country. The
Institute, therefore, performs the task of processing the recommendations made by the Board.

The Institute is actively involved in creating a climate conductive to the emergence of

entrepreneurship and in developing favourable attitude amongst general public to support those who opt
for entrepreneurial career.

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

EDPs in Kerala

In Kerala the EDPs are organized by Nationalised Banks and State Bank Group Banks,
Government through nodal agencies like Centre for Management Development, Small Industries Service
Institute, Kerala Industrial and Technical Consultancy organization and other voluntary organizations.

Separate programmes are organized for different groups like:

a. Science and Technology entrepreneurs.

b. Women entrepreneurs.
c. Educated Unemployed entrepreneurs.
d. Rural entrepreneurs.
e. Artisan entrepreneurs.
f. Tribal entrepreneurs.
g. Handicapped entrepreneurs.
h. General entrepreneurs.

The future entrepreneur has to be prepared through training and exposure for planning and launching an
enterprise keeping in mind the following:

a. Technology and scope for modernization.

b. Quality including ISO-9000 requirements.
c. Consumer satisfaction/customer service.
d. Energy conservation.
e. Pollution environmental aspects.
f. Cost of production;
g. Competition from both national and international angles.