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UNIT – II
Entrepreneurial Development Programmes
Self-Employment schemes
Objectives of EDP
Women entrepreneurs
Phases of EDP
Govt. Policies on entrepreneurial development Small Entrepreneurs development.
 True Thoughts

Entrepreneurs are those who live a few years of their life like most
people won’t, so that they can spend rest of their life like most people
can’t. 
Entrepreneurial Development Programmes
• 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.
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 
Objectives of the Programme
• 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
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
 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
• Increase speed of work
• Standardization in industry and internal processes 
Methods of Training
• Individual instruction
• Group instruction
• Lecture method
• Demonstration method
• Written instruction method
• Conference
• Meetings
EDP – Phases:
• Pre-Training
• Training
• Post-Training Phases
Pre-Training
This is a preparatory phase for launching the programme. It is a planning phase where all requisite
arrangements are made to deliver a content based and useful EDP. This stage lays the foundation for
a strong EDP that can deliver desired results.
It encompasses:
• i. Identification of promising area having good commercial prospects.
• ii. Selection of project faculty/course coordinator who is a visionary and has relevant experience.
• iii. Arrangement of infrastructural facilities for the programme like location, availability of internet,
computers, food and lodging arrangements (if participants are expected to be from different
cities).
• iv. Conducting industrial survey/environmental scanning for identification of good business
opportunities.
• v. Designing the course contents.
• vi. Getting support from various agencies such as DICs, SFCs, SISI etc.
• vii. Advertising and publicity of EDP to reach prospective minds. Promotional campaigns through
either with the help of print or electric media, leaflets, posters, etc.
• viii. Selection of participants for the training program.
Training Phase:
• The primary thrust of training programme is to instill motivation, skill
or competency amongst the budding entrepreneurs. EDP should aim
to provide both theoretical and hands-on practical knowledge to
various trainees.
Training phase of EDP includes:
i. Management:
• They should be taught basic principles of management and their
applications in real life scenarios to realise the benefits and
significance of the management functions like planning, organizing,
staffing, directing, controlling and coordinating. 
ii. Technical Competence:
• Focus should be laid upon acquiring technical competence suitable to
the area selected. Industry experts may be called upon to share their
experiences. It’s important for the trainees to understand the basics of
technology, rate of technological change in that industry and challenges
ahead. 
iii. Motivation and Stress Management:
• The entrepreneurial training programs are designed to elevate and
sustain the motivation levels of the trainees. Stress management is an
important component of EDPs as entrepreneurs have to struggle
through different phases before finally getting results. 
• Entrepreneurs are strong-willed individuals who may need family
support during tough times. Family members are the ones closest to
entrepreneurs
Post Training or Follow-up Phase:
Post training support services are rendered to the participants who have
successfully completed the entrepreneurship.
This phase may comprise of the following steps:
• (i) Assistance in registration of the enterprise.
• (ii) Loan procedures and documentation.
• (iii) Facilitating infrastructure like land, plant layout, purchase of plant and
machinery, power connection etc.
• (iv) Securing subsidies and grants and utilizing incentives given by Centre
and State government.
• (v) Management consultancy and trouble shooting.
• (vi) Providing up-to-date information on the industry.
• (vii) Meeting with EDP organizers and participants.
EDP – Top 3 Models

• Psychological,
• Sociological and
• Population-Ecology Model (PEM)
The three types of models are discussed as follows:
1. Psychological Model:
• Psychological model signifies that psychological factors are responsible for
the development of entrepreneurial behavior in individuals. Entrepreneurial
behavior of individuals by observing their work, family background, personal
values, and motivation level.
2. Sociological Model:
• Sociological model considers societal factors responsible for the
development of entrepreneurial behavior in individuals. Some
entrepreneurship scholars have emphasized the importance of socio-
cultural surrounding in the development of entrepreneurs.
• Different societies with differing interests, attitudes, and systems of
arranging people in to different classes are likely to produce different kinds
of entrepreneurs and different patterns of entrepreneurial behavior.
3. Population-Ecology Model (PEM):
• PEM analyzes the determinants of entrepreneurship development.
PEM was developed Hannan and Freeman in 1977 to analyze the
concept of entrepreneurship. The PEM model considers the
probability of births and deaths within a population falling in a
particular industry niche.
• This model considers environment as the important determinant for
the survival of the enterprise rather than individuals with status and
personality traits. In addition, it focuses on the presence,
characteristics, composition, and change in a population or in
ecological circumstances in a particular society for developing
entrepreneurial activity.
Entrepreneurship Development Programme – Process: 7 Step
Process

• Step # 1. Selection of Potential Entrepreneurs:

• Step # 2. Identification of Entrepreneurial Traits and Skills:
The entrepreneurial traits may be grouped into two categories:
a. Family Background:
i. Age 
ii. Level of education
iii. Family structure and size
iv. Working members
v. Social involvement 
• b. Human Resource Factors:
i. Need for achievement 
ii. Inclination to take risk 
iii. Influencing ability 
iv. Personal efficiency
v. Aspiration
Step # 3. Identification of Enterprise
Step # 4. Contents of Training Program:
The following types of trainings are provided during the program:
i. Technical knowledge and skills
ii. Achievement motivation training 
 iii. Support systems and procedures
iv. Market survey
v. Managerial skill
Step # 5. Support System
Step # 6. Production:
Step # 7. Monitoring and Follow Up:
 EDP – Institutions Involved in Providing EDPs in India

1. Indian Institute of Entrepreneurship (IIE):

• It is an autonomous organization under the Ministry of Skill Development
& Entrepreneurship. The Institute is engaged in providing training,
consultancy, and conducting research activities in Small and Micro
Enterprises (SME), with special focus on entrepreneurship development.
2. Entrepreneurship Development Institute of India (EDII):
• EDM situated in Ahmedabad is a non-profit autonomous organisation. It
has been sponsored by financial institutions such as IDBI, IFCI, ICICI, and
SBI. It is also assisted by the government of Gujarat. EDII has been
assisting the creation of centers for entrepreneurship development and
institutes of entrepreneurship development in various states of the India.
3. National Institute for Entrepreneurship & Small Business
Development (NIESBUD):
• NIESBUD under the Ministry of Industry, Govt. of India was set up in
1983 as an apex body to co-ordinate the activities of various
institutions engaged in entrepreneurship development especially in
the area of small scale industry. It is also involved in conducting
training programmes for entrepreneurs and trainees. NIESBUD is
engaged in preparing model syllabi for training various target groups,
undertaking research documentation, conducting seminars
and developing training as well as teaching aids.
4. Centre for Entrepreneurship Development CED, Gujarat:
• CED was established in1979 by the Gujarat government. Its EDP is one
of the oldest entrepreneurship development programme in India.
5. National Institute of Small Industry Extension Training (NISIET)
Hyderabad:
• It is an autonomous body under Ministry of industry. NISIET has been
providing training, conducting research and consultancy activities for
the development of small industry.
6. Small Industry Service Institute (SISI):
• SISI established by Government of India offers vast variety of services
like conducting market survey, technology demonstration, preparation
of techno- economic feasibility reports, marketing of products, product
standardization, management consultancy, training etc. to potential
and existing entrepreneurs.
7. SBI’s Programmes:
• The State Bank of India has been conducting EDPs particularly in the backward
areas across different states of India.
8. Rural Development and Self-Employment Training Institute (RUDSET):
• RUDSET has been jointly sponsored by Canara bank and Syndicate bank. It is
engaged in promotion of entrepreneurship.
9. Science and Technology Entrepreneurship Development (STED):
• Under the Department of Science 6t Technology, Govt. of India, STED, is an
autonomous organization involved in entrepreneurial development and
employment generation through science fit technology inputs.
10. Xavier Institute of Social Services – Ranchi:
• Department of entrepreneurship development programmes of XISS, Ranchi has
been engaged in conducting various entrepreneurship development programmes
and skill development programmes of national level since 1974. It has been
supported by funding agencies like, Industrial Development Bank of India and
Industrial Finance Corporation.
11. Development Commissioner (MSME) under Ministry of Micro,
Small & Medium Enterprises:
• The Govt, of India through Development Commissioner (MSME)
under Ministry of Micro, Small & Medium Enterprises has been
undertaking various programmes related to entrepreneurship
development.

• These programmes include a large number of vocational and

entrepreneurship development programmes and other related
programmes for entrepreneurship and skill development.
They are explained as under:
(i) Entrepreneurship Development Programmes (EDPs):
(ii) Entrepreneurial Skill Development Programme (ESDP):
(iii) Management Development Programmes (MDPs):
 Govt. Policies for Entrepreneurs
National Bank for Agriculture and Rural Development (NABARD)
NABARD was established in 1982 to promote integrated rural
development. Since then, it has keep on adapting multi dimensions
strategy for the promotion of rural business. Not only agriculture but it
also supports small industries, cottage and village industries, and rural
artisans using credit and non-credit approaches. It also offers
counseling and consultancy services and organizes various training and
development programs for rural entrepreneurs.
The Rural Small Business Development Centre (RSBDC)
• It is the first of its kind established by the world association for small
and medium enterprises which is sponsored by NABARD. It provides
assistance to the socially and economically disadvantaged individuals
and groups. It aims at providing management and technical support
to current and prospective micro and small entrepreneurs in rural
areas. Through these programs it covers a large number of rural
unemployed youth and women in several trades, which includes food
processing, soft toys making, ready-made garments, candle making,
incense stick making, two-wheeler repairing and servicing,
vermicomposting, and non-conventional building materials.
National Small Industries Corporation (NSIC)
This was established in 1955 with vision to promote aid and foster the
growth of small business units in the country. This focuses on the
commercial aspects of these functions. Export the products of small
business units and develop export-worthiness . Supply indigenous and
imported machines on easy hire-purchase terms. Procure, supply and
distribute indigenous and imported raw materials. Creating awareness
on technological up gradation. Developing software technology parks
and technology transfer centers.
• Small Industries Development Bank of India (SIDBI)
• Set up as an apex bank to provide direct/indirect financial assistance under
different schemes, to meet credit needs of small entrepreneurs or business
organizations.
• To coordinate the functions of other institutions in similar activities
The National Commission for Enterprises in the Unorganized Sector (NCEUS)
The NCEUS was constituted in September, 2004, with the following objectives:
* To recommend measures considered necessary for improving the productivity of
small enterprises in the informal sector.
• To enhance the competitiveness of the sector in the emerging global environment
• * To generate more employment opportunities on a sustainable basis, particularly
in the rural areas.
• * Potential for public-private partnerships in imparting the skills required by the
informal sector. Provision of micro-finance and related services to the informal
sector.
Rural and Women Entrepreneurship Development (RWED)
The Rural and Women Entrepreneurship Development programs aims
at promoting a suitable business environment and to encourage and
support the entrepreneurial initiatives of people and specially women.
RWE provides the following services:
* Creating a business environment that encourages initiatives of rural
and women entrepreneurs.
* Providing training manuals for women entrepreneurs and training
them.
World Association for Small and Medium Enterprises (WASME)
It is the only International Non-Governmental Organization of micro, small
and medium enterprises based in India, which set up an International
Committee for Rural Industrialization. Its aim is to develop an action plan
model for sustained and continuous growth of rural enterprises.
Beside this, there are several plans or schemes are there to promote the
non-farm sector, mostly initiated by the Government of India.
Schemes for entrepreneurship through subsidized loans like
• Integrated Rural Development Program (IRDP),
• Prime Minister Rojgar Yojana (PMRY),
• schemes to provide skills like Training of Rural Youth for Self Employment
(TRYSEM), and
• Schemes to strengthen the gender component like Development of
Women and Children in Rural Areas (DWCRA).
Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
The Central Government set up this fund with Rs. 100 crores allocation
in the year 2005 which is implemented by the Ministry of Agro and
Rural Industries in collaboration with State Governments.
The main objectives of the scheme are as follows:
* To build innovative and traditional skills, improve technologies and
encourage public-private partnerships, develop market intelligence etc.,
to make them competitive, profitable and sustainable; and
* To create sustained employment opportunities in traditional
industries.