UNIT IV

EDP
EDP is a programme meant to develop entrepreneurial abilities among the
people. In other words, it refers to inculcation, development, and polishing
of entrepreneurial skills into a person needed to establish and successfully
run his / her enterprise.

Objectives of EDP

1. To Promote First Generation Businessman and Industrialists

2. To Create Awareness about Availability of Resources

3. To Promote Small, Cottage & Local Industries

4. To Encourage Self Employment Tendencies

5. To Provide Knowledge about Government Plans and Programmes

6. To Make a Successful Entrepreneur

7. To Provide Training to Operate Business

8. To Create Awareness about Marketing

9. To Develop Entrepreneurs in all Areas of the Country

10. To Remove Doubts of Entrepreneurs, Give Solutions and Suggest Remedies of

Problems

Training Phase
A training scheme to develop persons for self-employment or for organizing,
financing and/or managing an enterprise. ... Entrepreneurship education
equips students with the additional knowledge, attributes and capabilities
required to apply these abilities in the context of setting up a new venture or
business.

Post Training Phase

The ultimate objective of Entrepreneurship Development Programme is to
prepare the participants to start their enterprises. This phase, therefore,
involves assessment to judge how far the objectives of the programme have
been achieved. This is also called 'follow-up'.

Need of EDP
Each person has different level of capacity, ability and skills. Some are born
entrepreneurs while some are made. And the similarity is of skills. Both type
of businessman have skills but latter doesn’t recognize their skills.
Entrepreneur Development Programme helps them inculcate entrepreneurial
 skills. It is only after training that they learn these skills and able to recognize
their capabilities and start thinking about building a business.

Sometimes, people may have skills but it requires polishing and incubation.
Entrepreneurship Development Programme helps the individual develop
essential skills required to run a business successfully. The main objective of
the course is to impart the skills and knowledge that helps in starting and
running business successfully. It helps participants in enhancing their abilities
and acquiring skills necessary for fulfilling their roles and responsibilities as an
entrepreneur.

Importance of EDP

The budding entrepreneurs are highly-educated but they lack the discipline
required to start a business. The entrepreneurship development programme
helps them understand the importance for entrepreneurial discipline required
to develop a sense of responsibility in them.

EDP training programme trains the aspirants to determine the objectives of

their business and work individually. Understanding the objectives is very
important as business starts and grows gradually by fulfilling the set
objectives. The training also helps in finding the right dedicated professionals
who can work towards business objectives. Achieving goals is an art that
entrepreneurs develop with training.

For any budding entrepreneur, it is important to develop a wide vision about

the industry they are working in and identify the competition and latest trends
in it. New competitors keep entering into the industry and start a new trend.
Thus, vision comes with education and training. EDP equips the
entrepreneurs with apt skills required to study the market competition and how
to stay ahead.

A business is a discipline and it can be run with rules and regulations. Thus, it
is important to set certain rules, regulations and procedures for running the
business successfully. Entrepreneurship development programme trains them
to make prefect rules and follow them.

Phases of EDP

EDP pass through following three stages:

 I. Initial or Pre-training phase.

 II. Training or Development phase.
 III. Post training or follow-up phase.
 i. On the basis of information available from application form.
 ii. On the basis of written examination to check the aptitude
A) Pre-training phase refers to the activities and preparatory work
made before the actual conduct of training. In this phase, actual
preparations are made for launching the programme. It involves the
following activities:
(i) Selection of area.
(ii) Selection of course coordinator.
(iii) Arrangement of infrastructure.
(iv) Conducting the market survey to identify good business
opportunities.
(v) Formulating the programme which includes training programme
organization, trainer selection and training syllabus finalisation etc.
(vi) Getting support from various agencies such as DICs, SFCs, SISI
etc.

B) Training and Development Phase:-

Training and development process is an organizational activity aimed at
improving the performance of the individuals and groups of employees in the
organizational settings. ... Through 'training' employees are taught specific
skills while through 'development' employee's personality and management
skills are enhanced.

C) Post training Phase :-

The ultimate objective of Entrepreneurship Development Programme is to

prepare the participants to start their enterprises. This phase, therefore,
involves assessment to judge how far the objectives of the programme have
been achieved. This is also called 'follow-up'.

Major Problems Faced in EDP

No Policy at the National Level. Though Government of India is fully aware

about the importance of entrepreneurial development, yet we do not have a
national policy on entrepreneurship. It is expected that the government will
formulate and enforce a policy aimed at promoting balanced regional
development of various areas through promotion of entrepreneurship.
Problems at the Pre training Phase. Various problems faced in this phase are
— identification of business opportunities, finding & locating target group,
selection of trainee & trainers etc.
Over Estimation of Trainees. Under EDPs it is assumed that the trainees
have aptitude for self employment and training will motivate and enable the
trainees in the successful setting up and managing of their enterprises. These
agencies thus overestimate the aptitude and capabilities of the educated
youth. Thus on one hand the EDPs do not impart sufficient training and on the
other financial institutions are not prepared to finance these risky enterprises
set up by the not so competent entrepreneurs

Duration of EDPs. An attempt is made during the conduct of EDPs to

prepare prospective entrepreneurs thoroughly for the various problems they
will be encountering during the setting up and running of their enterprises.
Duration of most of these EDPs varies between 4 to 6 weeks, which is too
short a period to instill basic managerial skills in the entrepreneurs. Thus the
very objective to develop and strengthen entrepreneurial qualities and
motivation is defeated.

Non Availability of Infrastructural Facilities. No prior planning is done for

the conduct of EDPs. EDPs conducted in rural and backward areas lack
infrastructural facilities like proper class room suitable guest speakers,
boarding and lodging etc..

Improper Methodology. The course contents are not standardized and most
of the agencies engaged in EDPs are themselves not fully clear about what
they are supposed to do for the attainment of pre-determined goals. This puts
a question mark on the utility of these programmes.

7. Mode of Selection. There is no uniform procedure adopted by various

agencies for the identification of prospective entrepreneurs. Organisations
conducting EDPs prefer those persons who have some project ideas of their
own and thus this opportunity is not provided to all the interested candidates.

8. Non Availability of Competent Faculty. Firstly there is problem of non

availability of competent teachers and even when they are available, they are
not prepared to take classes in small towns and backward areas. This
naturally creates problems for the agencies conducting EDP.

9. Poor Response of Financial Institutions. Entrepreneurs:-.

Entrepreneurs are not able to offer collateral security for the grant of loans.
Banks are not prepared to play with the public money and hence they impose
various conditions for the grant of loans. Those entrepreneurs who fail to
comply with the conditions are not able to get loan and hence their dream of
setting up their own enterprises is shattered. Helpful attitude of lending
institutions will go a long way in stimulating

CRITICAL EVALUATION OF EDPs IN INDIA

Inspite of increase in EDP activity, it is observed that by and large efforts
have remained limited to certain areas and the approach in general has been
somewhat haphazard. The programmes conducted by various agencies
vary in duration, selection procedures, course content etc.