UNIT IV- ENTREPRENEURSHIP

ENTREPRENEURIAL DEVELOPMENT PROGRAMME: Entrepreneurial

Development Programme (EDP) refers to a programme which is formulated to
assist the individuals in reinforcing their entrepreneurial motives and attaining
competencies and skills which is essential for performing an entrepreneurial
role successfully.
Objectives of EDPs:
1. To make people learn compliance with law.
2. To develop and fortify entrepreneurial quality, i.e., motivation or need for
achievement.
3. To develop small and medium scale enterprises in order to generate
employment and widen the scope of industrial ownership.
4. To industrialize rural and backward sections of the society.
5. To understand the merits and demerits of becoming an entrepreneur.
6. To investigate the environmental set-up relating to small industries and small
businesses.
7. To design project for manufacturing a product.
8. To increase the supply of entrepreneurs for quick industrial development.
9. To prepare individuals to accept the uncertainty involved in running a
business.
10.To develop managerial skills among small entrepreneurs for improving the
performance of small-scale industries.
11.To offer profitable employment opportunities to educate young men and
women.
12.To expand the sources of entrepreneurship.

IMPORTANCE OF EDP:
1. Formation of employment opportunities: Entrepreneurial development
programmes generate employment opportunities in the developing and
under-developed countries. It assists and encourages individuals to establish
their own business and enable them to become self-employed. By setting-up
several business enterprises, EDP also creates abundant job opportunities for
other people.
2.Provides Adequate Capital: A large amount of capital is required to set-up a
business enterprise. This financial assistance is provided by various EDP
agencies. EDPs instruct the development banks such as ICICI, IDBI, IFCI,
SIDCs, etc., to take initiative in promoting entrepreneurship.
3. Proper Utilization of Local Resources: New entrepreneurs utilize the
available local resources in the most effective way. This utilization of resources
plays an important role in the development of a particular area or region at
minimum cost. EDPs guide, educate and teach the entrepreneurs to explore the
local resources efficiently.
4.Increased Per Capital Income: Entrepreneurs have the ability to organise
the factors of production and utilize them in the most productive manner by
establishing an enterprise. This development leads to increased production,
employment and wealth generation. As a result, overall productivity and per
capital income of the economy is raised.
5.Improved Standard of Living: EDPs provide latest technologies and
innovative methods to entrepreneurs which helps them to produce large quantity
of products at lower cost. This also enables entrepreneurs to exploit the
available resources and produce quality products. This automatically leads to
improved standard of living.
6. Economic Independence: EDPs strengthen the entrepreneurs to produce
variety of products in large quantities at competitive prices. It also helps an
entrepreneur to develop substitutes of imported products which prevents the
country from being dependent on other foreign countries. It also saves foreign
exchange of the country.
7. Preventing Industrial Slums: Most of the developed industrial areas are
facing problems related to industrial slums. This leads to over burdening of
public amenities and also affects the health of people adversely. EDPs offer
several subsidies, incentives, infrastructural support and financial grants to new
entrepreneurs for establishing their businesses, thus, preventing the growth of
industrial slums.
8. Reducing Social Tension:  A majority of youngsters and educated
individuals of the society are in the state of social unrest and tension. This social
tension restricts them from finding the right direction in their careers. Most of
the students feel frustrated about not getting a job after the completion of
education. In such situations, EDPs helps people by providing them proper
guidance, assistance, training and support for establishing new enterprises and
businesses, as a consequence, social tension is reduced as they generate self-
employment opportunities.
9. Facilitating Overall Development: EDPs facilitate entrepreneurship which
helps in the overall development of the society by producing new products,
innovative services, low cost consumer goods, job opportunities, increasing the
standard of living, and overall productivity. This facilitates in the overall
development of the economy and the country.

GOVERNMENT POLICIES FOR ENTREPRENEURSHIP DEVELOPMENT:

(SCHEMES FOR ENTREPRENEURS)

Table of Contents:

1. Government Policies for Small Scale Industries

2. Beneficial Government Policies for Budding Entrepreneurs

3. Government Policies for SMEs in India

4. Government Loan Schemes for Small Businesses in India

5. Government Policies for Business in India

1. Government Policies for Small Scale Industries: India has recently been
described as the world’s only genuinely emerging market at the moment. The
growing SME sector of India propels a portion of this development. The Small
and medium-sized sector accounts for over 40% of the total GDP and continues
to be a vital source of jobs for the increasing population of India. Recognising
the significance of Local SMEs in the government has launched several
schemes to boost the SME sector. As a result, India is experiencing a boom in
start-ups in all industries, including IT, service delivery, wellness, technology,
and others. The government has launched several schemes to make the process
quick in order to enable young entrepreneurs to kick-start start-up companies
that will ultimately generate job opportunities. The majority of these schemes
offer financial aid in the form of subsidies and loans to prospective individuals
and organisations.

2. Beneficial Government Policies for Budding Entrepreneurs:

1. Atal Incubation Centre (AIC): Atal Incubation Centre is a funding scheme
that Started in the year 2016. Envisioned by the NITI Aayog, (National
Institution for Transforming India) this aims at supporting entrepreneurs by
covering their operating costs of capital. The approved business ventures can
avail up to Rs. 10 crores over a five-year term. Atal Incubation Centre
allows researchers, students, and start-up owners to apply for the scheme across
different verticals and sectors. The entrepreneurs can set their company as a
Public-private partnership, public organisations, or as a completely private
organisation. The entrepreneur needs to set up space of around 10,000 sq. ft.
and should set up the physical infrastructure within six months of disbursement
of financial assistance.
2. MSME Business Loans in 59 Minutes: Right now, the MSME Business
Loans in 59 Minutes is undoubtedly the most discussed business loan scheme.
This program was introduced in the year 2018 by the Government of India. This
scheme is introduced to provide financial assistance to micro, small, and
medium enterprises. The entrepreneurs can avail of loans of up to one crore
under this scheme. This scheme is very quick and, within 59 minutes, you will
know about your eligibility. Disbursement of the financial assistance happens
within 1-2 weeks. A majority of the public sector banks are a part of this
scheme.
3. National Small Industries Corporation Subsidy: NSIC subsidy offers two
forms of financial benefits for small businesses: Raw Material Assistance and
Marketing Assistance. Raw Material Assistance helps to purchase raw materials
from abroad and from India. Marketing Assistance, on the other hand, helps to
improve the sales of products and services with an efficient marketing process.
The program is introduced to provide loans to SMEs who are looking for
growth or rapid expansion.
4. MSME Market Development Program: This development program is
designed to provide market expansion assistance to micro, small, and medium
enterprises using international events, trade fairs, and road shows. This system
helps in the growth of the business by providing them assistance in terms of
expansion into international markets. Any start-up organisation registered under
District Industries Centre can apply for this program under which the to and
from travelling expenses will be borne by the government for participating in
international exhibitions. Not only that, it bears half of the accommodation
charges and ¾ amount of the participation charges.
5. MUDRA Loans: The Government of India initiates MUDRA loans for
providing business finance for micro-business units. This program was launched
with the single motive of ‘paying the unfunded’. Since most of the time, the
small-medium enterprises suffer from lack of funds; the government launches
this program to encourage participation and growth of the start-ups across
different sectors like trading, manufacturing, services, etc.
6. Swarojgar Credit Card: Swarojgar Credit Card was initiated to provide
loans to small-time businessmen like fishers, homemakers, travel operators,
shopkeepers, etc. Under this scheme, the small-time business owners can take a
loan of Rs. 25000 in terms of credit card facilities. A passbook is also provided
to keep track of the financial transactions. The card will be valid for five years
and can be renewed upon satisfactory results from the initial investments.
7. Coir Udyami Yojana: The primary objective of this scheme is to build coir
units throughout India. This Coir Board oversees this system which provides
financial assistance up to Rs. 10 lakhs to eligible units. However, the credit
term should not exceed one-quarter of the project value. Individual
entrepreneurs, joint ventures, private institutions, the public-private enterprises
can avail of benefits under this scheme.
8. Refinancing by NABARD: This program launched by NABARD focuses on
providing refinancing to lending institutions in agricultural areas. This aims to
provide growth to rural enterprises based in diverse areas. Various handicraft
manufacturing industries, rural institutions, agricultural setups have taken part
in this scheme and made rapid growth.
9. The Women Entrepreneurship Platform: The Government of India
introduced the Woman Entrepreneurship Platform to promote women’s
entrepreneurship. The NITI Aayog is the primary driver behind this program
and aims to boost the morale of young and dynamic woman entrepreneurs. This
scheme has got three divisions: Gyaan, Iccha, and Karma Shakti. Iccha Shakti
aims to empower women to start a company. Gyaan Shakti offers a favourable
environment for setting up a business. Whereas,Karma Shakti provides practical
help to bussing women entrepreneurs to start their own business or scale them
up. Any form of the organisation - be it NGO, Corporations, and associations -
led by women entrepreneurs can apply under this program. This scheme
provides several other benefits such as mentoring, credit score improvement,
and tie-up with corporate, etc.
10. Stree Shakti Package: The Stree Shakti Package is provided in India by
most branches of the State Bank of India (SBI) and focuses on providing
women in business with a business loan. The biggest benefit of this start-up
business loan for women is that loans up to Rs. 5 lakhs need no protection. In
addition, some concessions are made by the bank, such as having a reduced
interest rate in the event of the loan exceeds Rs. 2 lakhs. But the main downside
of this loan is that it is only open to women who hold a 51% or greater share in
the business.
11. Venture Capital Scheme: This Venture Capital Scheme is a program run
by Small Farmers Agribusiness Consortium. This program aims to improve
agricultural production. Under this program, the Small Farmers Agribusiness
Consortium helps in the development of the agricultural market and
improvement in the marketing of agricultural products. The minimum value of
the business should be 50 lakhs to become eligible for this program.
12. End to End Energy Efficiency Scheme: The End-to-End Energy
Efficiency scheme was launched in the year 2016. The SIDBI initiates this
program in collaboration with the Government of India. Any micro, small, or
medium enterprise that is in the business for three years and earning revenue for
two years can avail of benefits under this scheme. However, this scheme is
designed to support only energy-efficient units that need to do an energy audit
through an auditor affiliated with the Bureau of Energy Efficiency. The start-
ups can also purchase equipment using this line of business finance.
13. Credit Link Capital Subsidy Scheme: This scheme helps small-medium
enterprises to improve their productivity through technological upgrades.
Technological upgrades can be attributed to different processes and systems
related to the business, such as sales, marketing, delivery module, etc. The
Government of India launched the Credit Link Capital Subsidy Scheme to
reduce the cost of production for SMEs, thus enabling them to remain
competitive in comparison with other players in local and foreign markets.
14. Stand-up India: The government of India started the Stand-up India
program in the year 2016. It is launched with the sole aim of promoting
entrepreneurship and start-up cultures in India and is driven by the Small
Industries Development Bank of India. The SMEs can avail of loans of up to
one crore under this program. This scheme enables you to take a loan of up to
75% of the total project cost.

3. Government Policies for SMEs in India: The best government policies for

SMEs in India are as follows:
● Market Development Assistance Scheme for MSMEs
 ● Mini Tools Room And Training Centre Scheme
● Credit Guarantee Fund Scheme for MSEs (CGMSE)
● National Award Scheme
● Credit Link Capital Subsidy Scheme for Technology Up gradation

4. Government Loan Schemes for Small Businesses in India: India has been
noted as the country with the highest number of SMEs in the World.
The government policies for small scale industries are pretty diversified
according to the needs of entrepreneurs. The government policies for SMEs in
India are:
1. MSME Business Loans in 59 Minutes: Announced in September 2018,
under which you get financial assistance for MSME growth. This process
takes 8-12 days for completion where public sector banks grant the funds.
2. Credit Link Capital Subsidy Scheme for Technology Up gradation: It is
also known as CLCSS this aims for lowering the production cost of goods
and services for small and medium enterprises. This scheme is authorised
and monitored by the Ministry of Small-Scale Industries.
3. MUDRA Loans: This program was launched with the single motive of
‘paying the unfunded’. Their structure is divided into 3 categories – Sishu
Loans, Tarun Loans, and Kishor Loans.
4. National Small Industries Corporation Subsidy: Also known as NSIC, it
offers financial benefits for Raw Material Assistance and Marketing
Assistance.
5. Credit Guarantee Fund Scheme for Micro and Small
Enterprises: Launched in the year 2000 it's a financial support scheme for
all MSMEs in India. It offers working capital loans of around 10 Lakh
Rupees for both new and existing businesses.

5. Government Policies for Business in India: The country is filled with new
business enthusiasts every other day and the governing party’s curate’s policies
helping them grow. The top government policies for business in India are:
● Incentives and Subsidies for Home Industries
● Conducting Routine Quality Inspections
● Commercial Technology Transfer
● Developmental Assistance to Small Scale Industries
● Timely Information Supply
 ● Basic Infrastructure Provision
● Balancing Regional Growth & Development
● Rendering Monetary System
● Sustaining Law and Order
● Establishing & Implementing Laws
INSTITUTIONS FOR ENTREPRENEURIAL DEVELOPMENT
TRAINING IN INDIA:
1. Centre for Environment and development (CED):The Centre for
Environment and Development (CED), established in 1993, is an autonomous
research and development, training and consultancy organisation focussing in
fields related to Environment and Development. CED has its Head Quarters at
Thiruvananthapuram and Eastern Regional Campus at Bhubaneswar, Regional
Centre at Hyderabad and projects in Andhra Pradesh, Jharkhand, Bihar, West
Bengal, Pondicherry and Gujarat apart from Odisha and Kerala. CED is the
Centre of Excellence on Solid Waste and Waste water Management, Ministry of
Urban Development, Government of India; National Key Resource Centre on
Drinking Water and Sanitation, Ministry of Drinking Water and Sanitation,
Government of India and also the Regional Resource Agency, Ministry of
Environment and Forests, Government of India. CED is an Empanelled Agency
of the Ministry of Urban Development, Government of India for City
Development Plan Preparation and also Water Supply and Sanitation, Sewarage
and Drainage. CED is also an Accredited Agency of Government of Kerala for
Solid Waste Management. CED is recognised as a Scientific and Industrial
Research Organisation by the Department of Scientific & Industrial
Research, Government of India.

2. Management development institution: MDI has the distinction of being

the first internationally accredited Indian Business School having received
international accreditation by AMBA in 2006. The long-term programmes of
MDI have received global, regional and national accreditations –
accreditation of Association of MBAs (AMBA) London, South Asian
Regional Accreditation (SAQS) and National Board of Accreditation (NBA).
MDI also has the distinction of being the only Indian B-school that has a
community outreach programme, the International Summer University (ISU)
wherein MDI has joined hands with nine Indian universities and institutions
 to form a network of learning. MDI is an autonomous and professionally
managed Institution registered under the Societies’ Registration Act, 1860.

3. Entrepreneurship Development Institute of India (EDII):

● A National Resource Institute in Entrepreneurship Education, Research,
Training & Institution Building. Promoted by IDBI Bank Ltd; IFCI Ltd,
ICICI Ltd, SBI and Govt. of Gujarat.
● Pioneered the Entrepreneurship Development Programme (EDP) Model.
● Ranked as Number 1 by Atal Ranking of Institutions on Innovation
Achievements (ARIIA) – 2021 in General (Non-Technical) Category. The
only institute from Gujarat to be ranked as Number 1 across all seven
categories.
● Recognized as Centre of Excellence by the Ministry of Skill Development &
Entrepreneurship, Govt. of India.
● Pioneer of Post Graduate and Doctoral Programmes in entrepreneurship in
the country.
● Leading the world’s largest study in Entrepreneurship, ‘Global
Entrepreneurship Monitor’ for its India chapter, since 2012.
● Works in the collaborative frame with State & National Government
Departments & Ministries, such as DST, Rural Development, Skill
Development & Entrepreneurship, Textiles, Education, External affairs.
● Works/Worked with noted Corporates like Bayer Foundation, Tata
Communications, Walmart, HP, Accenture, HCL, Facebook, HSBC, on CSR
Projects.
● Alleviated urban and rural poverty and promoted sustainable livelihood
options across various sections of people through skill development, training
and capacity building.
● Has worked towards inclusive development by ensuring a higher incidence
of New Enterprise Creation among SC/ST and other disadvantaged sections
of people.
● Working in cluster development, training, capacity building and research.
● Has set up Entrepreneurship Development Centres in Cambodia, Laos,
Myanmar, Vietnam, Uzbekistan & Rwanda.
● Anchors the largest ever Village Entrepreneurship Programme in the
country.
● Trains between 80,000 to 1,00,000 potential entrepreneurs, annually, PAN
India.

4. The Institute of Entrepreneurship Development (IED) is a non-profit

making Registered Charitable Trust established in 1999. IED is a pioneering
institute for Entrepreneurship Development and various training in all over the
Tamil Nadu state. The driving values at the institution are innovation, initiative,
risk taking, experimentation, and inclusiveness; provide need based socially
relevant solution for the sustainable livelihood development to the people. We
at IED strongly believe that the traits of an entrepreneur can be imbibed in the
people by structured training, counselling, guidance and proper
follow-up/monitoring. EDs success led by its strong sense of commitment
culminated in recognition of its achievement by the govt. of India, govt. of
Tamil Nadu, various ministries, departments and State Bank of India.

5. NIESBUD: The National Institute for Entrepreneurship and Small Business

Development is a premier organization of the Ministry of Skill Development
and Entrepreneurship, engaged in training, consultancy, research, etc. in order
to promote entrepreneurship and Skill Development. The major activities of the
Institute include Training of Trainers, Management Development Programmes,
Entrepreneurship-cum-Skill Development Programmes, Entrepreneurship
Development Programmes and Cluster Intervention. NIESBUD has provided
training to 12, 37,307 persons till date through 46,837 different training
programmes since inception. This includes 5,011 international participants
hailing from more than 145 countries throughout the globe.
6. entrepreneurial mindset curriculam:
7. Small Industries Development Corporation (SIDCO): In Tamil Nadu
SIDCO is the state small industries corporation. It plays a lead role in
developing small scale sector. It provides the following facilities to small scale
units:
(a) It makes provision of constructed sheds/plots in industrial estates. These are
sold to entrepreneurs on hire-purchase basis or given on rental basis.
(b) Assistance in procuring some scarce key raw materials like iron and steel,
paraffin wax, potassium chlorate, Fatty Acids, etc., through its various
distribution centres.
(c) Financial assistance in the form of subsidies to industrial units in backward
areas like Central Investment subsidy, state capital subsidy. Interest-Free sales
tax loans, power tariff subsidy and margin money assistance for the
rehabilitation of the sick small scale industries.
(d) Marketing assistance to small entrepreneurs.
8. Small Industries Service Institutes (SISIs): The Small Industries Services
Institutes (SISIs) are set up to provide consultancy and training to small
entrepreneurs-both existing and prospective. The activities of SISIs are
coordinated by the Industrial Management Training division of the DCSSI’s
office. There are 28 SISIs and 30 branch SISIs set up in State capital and other
places all over the country. The main functions of SISIs include:
• To serve as interface between Central and State Governments.
• To render technical support services.
• To conduct Entrepreneurship Development Programmes.
• To initiate promotional programmes.

9. Small Industries Development Organisation (SIDO): SIDO is a

subordinate office of the Department of SSI & ARI. It is an apex body and
nodal agency for formulating, coordinating and monitoring the policies and
programmes for promotion and development of small-scale industries.
Development Commissioner is the head of the SIDO. He is assisted by various
directors and advisers in evolving and implementing various programmes of
training and management consultancy, industrial investigation, possibilities for
development of different types of Small scale industries, development of
industrial estates, etc.
The main functions of SIDO are classified into
(i) Co-ordination,
(ii) Industrial development and
(iii) Extension.
These functions are performed through a national network of institutions and
associated agencies. All small-scale industries except those falling within the
specialised boards and agencies like KVIC, Coir Boards, Central Silk Board,
etc. fall under the purview of the SIDO.
ROLE OF CONSULTANCY ORGANISATIONS IN PROMOTING
ENTREPRENEURSHIP:

1. The Industrial Development Corporation (IDC): It is a state-owned, self-

financing development finance institution. Established in 1940 and operating in
both Africa and South Africa, its primary objective is to contribute to the
generation of balanced, sustainable economic growth in Africa and to the
economic empowerment of the South African population. In carrying out this
mandate, the IDC balances a strong developmental focus with the need to invest
in ventures that are based on sound business principles. The IDC operates in a
broad spectrum of industries and with some specialized knowledge and
experience; it is able to offer valid and appropriate financial assistance to a wide
variety of individuals and companies.

The major objectives of the IDC are:

·To support industrial development capacity and to promote entrepreneurship.

·The IDC employs the following strategies to achieve its objectives. 
· Serving as a catalyst for balanced, sustainable development.
· Identifying and supporting opportunities not addressed by the market.
· Providing risk capital in partnership with the private sector.
· Building on its skills and industry knowledge to add value to entrepreneurs
and businesses.
·Optimizing its financial management.

2. Technical Consultancy Organizations (TCOs):A network of Technical

Consultancy Organizations (TCOs) was established by All Indian financial
institutions in the seventies and the eighties in collaboration with state-level
financial/development institutions and commercial banks to cater to the
consultancy needs of small industries and new entrepreneurs.
Functions: Initially, TCOs’ functions were focused on pre-investment studies
for small and medium-scale enterprises. Over the years, they have diversified its
functions to include the following:
● To prepare project profiles and feasibility profiles.
● To undertake industrial potential surveys.
● To identify potential entrepreneurs and provide them with technical and
management assistance.
● To undertake market research and surveys for specific products.
● To supervise the project and where necessary, render technical and
administrative assistance.
● To undertake export consultancy for export-oriented projects based on
modern technology.
● To conduct entrepreneurship development programs.

ROLE OF FINANCIAL INSTITUTIONS AN DBANKS IN PROMOTING

ENTREPRENEURSHIP IN INDIA:
The banks play an important role in the development and promotion of
entrepreneurship. There are entrepreneurs out there who want to start their own
business but lack capital. Banks are one of the ways that entrepreneurs use to
fund their businesses. It is difficult for most entrepreneurs to raise funds through
equity because they lack financial knowledge. And, without funds, businesses
can’t grow. So loans are the primary source of funding for entrepreneurs. Apart
from providing loans, banks also give other benefits to the entrepreneurs such
as:

1.Banks Keep Money and Assets Safe: Banks are a secure way to keep
valuable assets and money safe. For example, most deposits are insured by the
Federal Deposit Insurance Corp in the bank. 
2. Banks Allow Borrowing Funds: Entrepreneurs can use the deposits to
borrow funds from the bank.
3. Good Payment System.: In today’s era, the payment system has improved.
They are allowing fast fund transfers which are crucial for business. The
improved payment system has enabled entrepreneurs to transfer money
immediately. 
4.Banks Are Excellent Advisers: Banks can give valuable advice to young
entrepreneurs to invest their money in stocks or commodities. Other than advice
on investments, they also show methods covering raising capital, reorganization
of a company, tax-related matters, and so on. 
5. Entrepreneurial Education:Bank also plays a vital role in entrepreneurship
promotion by providing entrepreneurship education.