ECT 474 ENTREPRENEURSHIP

Module 1 notes
• Meaning of Entrepreneurship:

• The word “entrepreneur” is derived from the French verb “enterprendre”, which means “to undertake”. This
refers to those who “undertake” the risk of new enterprises.

• An enterprise is created by an entrepreneur. The process of creation is called “entrepreneurship”.

• Entrepreneurship is a process of actions of an entrepreneur who is a person always in search of something

new and exploits such ideas into gainful opportunities by accepting the risk and uncertainty with the
enterprise.

• Definition:

• “The activity of setting up a business or businesses, taking on financial risks in the hope of profit”.

• In economics, “entrepreneurship combined with land, labor, natural resources and capital can produce profit.
Entrepreneurial spirit is characterized by innovation and risk-taking, and is an essential part of a nation's
ability to succeed in an ever changing and increasingly competitive global marketplace”.
Before India came in to contact with west, people were organized in a particular type of economic and
social system of the village community. The Indian towns were mostly religious and aloof from the
general life of country. The elaborated cast based diversion of workers consisted of farmers, artisans and
religious priests. Evidently, organized industrial activity was observable among the India artisans in a
few recognizable products in the cities of Banaras, Allahabad, Gaya, Puri & Mirzapur which were
established on their river basins. The workshops called ‘kharkhanas’ came into existence. The craftsmen
were brought into an association pronounced as ‘guild system’. To quote, Bengal enjoyed worldwide
celebrity for Corah, Lucknow for chintzes, Ahmadabad for dupttas, and dhotis, Nagpur for silk boarded
cloth, Kashmir for shawls and Banaras for metal wares. India enjoyed the prestigious status of the queen
of the international trade with the help of its handicrafts
Unfortunately, Indian handicraft industry declined at the end of the 18th century for various reasons.
1. Disappearance of the Indian royal courts who patronized the crafts earlier.
2. The lukewarm attitude of the British colonial govt. towards the Indian crafts.
3. Imposition of heavy duties on the imports of the Indian goods in England.
4. Low priced British made goods produce on large scale which reduced the competing capacity of the
product of the Indian handicrafts.
5. Development of transport in Indian facilitating the easy access of British product even to far-flung remote
part of the country.
6. Changes in the tastes and habits of the Indian, developing craziness of foreign products.
7. Unwillingness of the Indian craftsmen to adapt to the changing tastes and needs of the people.
In the beginning, the Parsis were the founder manufacturing entrepreneurs in India. Later, the Parsis invaded
other fields, mainly iron and steel industry, also Jamshedjee Tata was the first Parsi entrepreneur who
established the first steel industry inJamshedpur in 1911.
The Swadeshi campaign, i.e., emphasis on indigenous goods, provided, indeed, a proper seed bed for
inculcating and developing nationalism in the country. It was the influence of Swadeshi that Jamshedji Tata
even named his first mill 'Swadeshi Mill’.
The second wave of entrepreneurial growth in India began after the First World War. For various reasons,
the Indian Government agreed to 'discriminating' protection to certain industries, even requiring that
companies receiving its benefits should be registered in India with rupee capital and have a proportion of
their directors as Indians.
During these decades, the relative importance of Parsis declined and Gujaratis and Marwari Vaishyas gained
that pendulum in India’s entrepreneurial scene
Reasons for slow growth of entrepreneurship in During British period in India.
1. The enterprises were not given proper protection by British Government.
2. Only those industries in which the British Government put their own capital were given encouragement.
3. The railway freight charges were higher for locations not nearer to the ports.
4. The British imposed exorbitant tariffs on India made goods.
5. Entrepreneurs were constantly harassed for getting licenses and finance to established and run industries.
6. No facilities for technical education
7. The Indian indigenous entrepreneurs faced fairs competition from machine made goods exported to India
from abroad.
8. Lack of transportation and communication facilities
9. The British Government did not encourage the establishment of heavy industries like heavy machinery,
iron and steel which are necessary for rapid industrialization.
10. Political turmoil and abolition of princely courts discouraged the growth of entrepreneurship.
11. Prevalence of multi currency system affected the business environment and blocked the growth.
PARTITION OF UNDIVIDED INDIA ON 15th AUGUST 1947
Following are some major effects of partition on 15th August 1947 on the Indian industrial
economy:-
ENTERPRENEURSHIP DURING POST- INDEPENDENCE
The Government took three important measures in her industrial resolutions:-
(i) to maintain a proper distribution of economic power between private and public sector;
(ii) to encourage the tempo of industrialisation by spreading entrepreneurship from the existing centres to
other cities, towns and villages, and
(iii) to disseminate the entrepreneurship acumen concentrated in a few dominant communities to a large
number of industrially potential people of varied social strata.
To achieve these adumbrated objectives, the Government accorded emphasis on the development of small-
scale industries in the country. Expectedly, the small-scale units emerged very rapidly in India witnessing a
tremendous increase in their number from 121,619 in 1966 to 190,727 in 1970 registering an increase of
17,000 units per year during the period under reference. Also, there are examples that some entrepreneurs
grew from small to medium-scale and from medium to large-scale manufacturing units during the period. The
family entrepreneurship units like Tata, Birla, Mafatlal, Dalmia, Kirloskar and others grew beyond the
normally expected size and also established new frontiers in business in this period.
• Liberalisation also reduced entry barriers for new entrepreneurs as it dispensed with or reduced
regulatory measures such as industrial licensing.
• Similarly, improved availability of financial support from both official and private sources boosted the
growth of entrepreneurship. However, entrepreneurship in India could have grown much faster if the
capital market had been strengthened to support the system. Even today, the capital market is not a major
source of finance for enterprises, which mostly rely on internal sources of funding or debt.
• Government-supported and public-private partnership ventures such as the National Science and
Technology Entrepreneurship Development Board, Technopreneur Promotion Programme and business
incubators in colleges and technology parks also facilitated the growth of entrepreneurship in India.
• Simultaneously, private sector initiatives such as The Indus Entrepreneurs and National Entrepreneurship
Network also supported India’s knowledge-intensive enterprises.
• The increased availability of technically trained people and programmes that offered formal training in
entrepreneurship also bolstered the growth of entrepreneurship.
• Meaning of Rural Entrepreneurship
• Entrepreneurship emerging in rural areas is called rural entrepreneurship.
• Establishing industries in rural areas refers to rural entrepreneurship.
• Rural entrepreneurship is synonymous of rural industrialization.
• “Rural industry means any industry located in rural areas, population of which does
not exceed 10,000 or such other figure which produces any goods or renders any
services with or without use of power and in which the fixed capital investment per
head of an artisan or a worker does not exceed a thousand Rupees.”
• According to Government of India : -“Any industry located in rural area, village or
town with a population of 20,000 and below and an investment of Rs. 3 crores in
plant and machinery.”
• Classification of Rural Industries
• All rural industries have been classified into the following six categories:-
1. Mineral-based industries.
2. Forest-based industries.
3. Agro-based industries.
4. Engineering and non-conventional industries.
5. Textile industry (including Khadi), and
6. Service industry.
• Need for Rural Entrepreneurship
The need for developing rural entrepreneurship is to promote rural
development in the country. This is justified as follows :
• Rural industries being labor intensive serve as an antedote to the
widespread problems of rural unemployment.
• It helps in reducing disparities in income between rural and urban
areas.
• These industries promote balanced regional development by dispersing
industries to rural areas.
• Development of rural industries serves as an effective means to build
up village republics.
• Rural industries also help preserve the old rich heritage of the country
by protecting and promoting art and creativity.
• Rural industrialization fosters economic development in rural areas.
• Rural industries also lead to development without destruction.
• Problems of Rural Entrepreneurship
• Developing rural entrepreneurship is important but not so easy.
• The general bottlenecks in the development of village industries are:
✓ Financial constraints.
✓ Lack of technical know-how.
✓ Lack of training and extension services.
✓ Management problems.
✓ Lack of quality control.
✓ High cost of production due to high input cost.
✓ Lack of communication and market information.
✓ Poor quality of raw materials.
✓ Lack of storage and warehouses.
✓ Obsolete and primitive technology.
✓ Lack of promotional strategy.
• How to Develop Rural Entrepreneurship
• The following measures may prove effective instruments for developing entrepreneurship
in rural areas of country :
✓ A policy formulation for strengthening the raw material base in rural areas in the country.
✓ Finance for running an industry, needs to be made available at soft and easy terms and
conditions to the prospective entrepreneurs.
✓ Measures like common production-cum-marketing centres be taken to solve the
marketing problem faced rural industries.
✓ Inculcate and develop entrepreneurial aptitude among entrepreneurs to make them
successful in their ventures.
✓ Imparting entrepreneurial education at the school, college and University may be one of
the effective ways to inculcate the entrepreneurial attitude among the prospective
entrepreneurs in rural areas of the country.
✓ Disseminating information about various facilities available for prospective entrepreneurs
to set up industries in rural areas.
✓ The NGOs should be encouraged to contribute to development of rural industries in the
country.
URBAN ENTREPRENEURSHIP:
• As the world becomes more urbanized, the urgency to provide products
and services within urban communities has increased.
• Since more than half of the world population resides in urban spaces, the
urban divide that can result from differences in socioeconomic
organizational urban structures across cultures and regions (i.e., local
unequal conditions and opportunities that foster underserved urban
spaces).
• Paying attention to this divide within urban spaces, policy makers have
sought to encourage entrepreneurial actions as a mechanism to address
the disparity.
• An urban entrepreneur may be an entrepreneur operating within, or
serving an area that is legally defined as a city.
Different types of Urban Entrepreneurs
Social Entrepreneurs
• Social entrepreneurship has been defined as the “process of employing
market-based methods to solve social problems”
• Social entrepreneurship has been defined as an embedded phenomenon
subject to locality factors such as the surrounding social, economic,
cultural and institutional environment as well as the local geographical
elements and infrastructure.
• Social entrepreneurs are posed as urbanizing agents as they develop local
solutions in ways that the benefits from the new urban conditions they
craft built up and accrue on the target beneficiaries rather than on the
entrepreneurs themselves.
Immigrant and Ethnic Entrepreneurs
• Immigrant entrepreneurs are individuals that have relocated from their place of
origin (i.e., birth) into a new locality and that have started an entrepreneurial venture
at this new residence. Thus immigrant entrepreneurs may be best understood as non-
native entrepreneurs.
• Ethnic entrepreneurs are entrepreneurs that have a different ethnic background from
the local majority where they reside, even when they were born at that location in
the first place.
• Immigrant entrepreneurs includes both, the highly educated individuals taking
advantage of local education and munificence and the less educated individuals
seeking a new life escaping from the persecution and or adversity prevailing at their
home country. These immigrants not only have a better ability to find opportunities
in their new locations because they bring fresh eyes to these spaces but also often
encounter the need to become entrepreneurs, as they may not have any other option
available to them to provide for themselves and their families in these new places.
• Immigrant or ethnic entrepreneurs are often the local sources of innovation and
change.
International Entrepreneurship
• International entrepreneurship refers to the entrepreneurial actions across countries
that are fueled by the differences across national contexts.
• International entrepreneurs are different from immigrant entrepreneurs in that
international entrepreneurs do not have as a goal to permanently change their
residence but just to pursue entrepreneurial opportunities across nations paying
attention to structural and institutional differences.
• International entrepreneurs are resource brokers, including knowledge, that take
advantage of the uneven distribution of munificence around the world to undertake
entrepreneurial actions focus on the “discovery, enactment, evaluation, and
exploitation of opportunities across national borders to create future goods and
services”.
Technology Entrepreneurship
• Technology entrepreneurship differs from other types of entrepreneurship in that it
often requires higher levels of human capital understood as knowledge and education
from the entrepreneur.
• Technology entrepreneurs use scientific knowledge from formal, physical, life, and
applied sciences to bring to the world value-creating innovations that solve problems
and advance society.
• These innovations include the development or modification of machines, methods,
tools, techniques, and or systems that solve problems, improve pre-existing solutions
to problems, or handle an applied input or output.
• These entrepreneurs do not only use science and technology to solve problems in an
entrepreneurial way but also to make advances on the quality of life of the
communities where they reside.
• To achieve their goals technology entrepreneurs rely on complex social arrangements
to help them to develop their technological ideas as well as to succeed in their roles
as entrepreneurs
Entrepreneurial Motivation
• Motivation derived from the word ‘motive’.
• Motivation is an inner spirit that activates and directs our behaviour towards
our goals.
• It is an ongoing process.
• Basic elements of the process of Motivation are,
1) Motive
2) Behaviour &
3) Goal.
Motivating Factors
• The factors that motivate a person to become an entrepreneur may be classified into
prime motivators, motives, compelling factors, facilitating factors, and opportunity
factors.
• The term prime motivators refer to the entrepreneurs themselves and/or their
friends or relatives.
• The major motives behind starting a new venture are to earn more money, to
support ones family, to continue a family business or to achieve higher social status.
• The factors that compel a person to start a new business could be unemployment or
dissatisfaction with his/her particular job.
• Facilitating factors include the availability of idle funds at the entrepreneurs disposal,
eagerness to make use of the skills the person has acquired over time, previous
experience in the same line, support from friends or relatives and inherited property.
• The opportunity factors of entrepreneurship are trade information, business
contacts, knowledge about sources of raw materials etc., and good education and
training.
• Prime motivators: An entrepreneur may embark on an enterprise on his/her own
initiative or under inspiration from sources such as members of his/her family, close
relations and friends, and government agencies.
• Entrepreneurs ambition or motives: One of the motivations that give shape to
intentions and initiatives of an individual to start a business is the urge for working
independently or for expressing oneself. What matters most is what aspirations
people have and what they do to realise them. The motives differ from individual to
individual. They also differ from family to family, depending upon the circumstances
in which the individuals are placed and the priorities which they have set for
themselves.
• Compelling factors Sometimes it is external compulsion rather than internal motives
that push people to launch their enterprises. People may be suddenly thrown out of
employment and may be compelled to seek or accept another job. Remaining
unemployed for long periods may also act as a factor. Perhaps the person was totally
dissatisfied with the job in which he/she was employed, leaving him no other option
but to quit the job.
• Facilitating factors: The factors facilitating entrepreneurship include the
encouragement and support from members of the family or from friends or
relatives, the experience gained from employment, good educational background,
and skills and property acquired or inherited. Support from sources like friends or
family may be in the form of material or moral support. Moral support from ones
close relations and friends boosts morale, recharges self-confidence, stimulates
enterprise, and strengthens people to face challenges, especially those arising in the
initial years. The possibility of using idle funds and the easiness of entering a
particular line of business are other facilitating factors. The skills and experience a
person has acquired are the most important factors facilitating entry into a new
venture.
• Opportunity factors: The opportunity factors considered were trade information,
contacts useful for conducting business, and training on relevant lines.
Motivation Theories
• Content theories focus on WHAT, while process theories focus on HOW human
behavior is motivated. Content theories are also called needs theories: they try to
identify what our needs are and relate motivation to the fulfilling of these needs.
The content theories cannot entirely explain what motivate or demotivate us.
• Process theories are concerned with “how” motivation occurs, and what kind of
process can influence our motivation.
• The main content theories are: Maslow’s needs hierarchy, Alderfer’s ERG theory,
McClelland’s achievement motivation and Herzberg’s two-factor theory.
• The main process theories are: Skinner’s reinforcement theory, Victor Vroom's
expectancy theory, Adam’s equity theory and Locke’s goal setting theory
Maslow – hierarchy of needs
• Maslow – hierarchy of needs: This is the earliest and most widely known theory of
motivation, developed by Abraham Maslow (1943) in the 1940s and 1950s.
• This theory condenses needs into five basic categories.
• Maslow ordered these needs in his hierarchy, beginning with the basic psychological
needs and continuing through safety, belonging and love, esteem and self-
actualization.
• In his theory, the lowest unsatisfied need becomes the dominant, or the most
powerful and significant need.
• The most dominant need activates an individual to act to fulfil it.
• Satisfied needs do not motivate. Individual pursues to seek a higher need when lower
needs are fulfilled.

1. Physiological needs (e.g. food, water, shelter, sleep) It includes the most basic needs
for humans to survive, such as air, water and food. Maslow emphasized, our body and
mind cannot function well if these requirements are not fulfilled. These physiological
needs are the most dominant of all needs. So if someone is missing everything in his/her
life, probably the major motivation would be to fulfil his/her physiological needs rather
than any others. Any other things are forgotten or got secondary importance.
2. Safety and security (secure source of income, a place to live, health and wellbeing) If
the physiological needs are relatively well contented, new needs will appear, the so
called safety needs. Safety needs refer to a person’s desire for security or protection.
Basically everything looks less important than safety and protection (the physiological
needs even sometimes). Safety and security needs include: Personal security; Financial
security; Health and well-being; Safety mesh against accidents, illnesses and their
adverse impacts.
3. Belongingness and love (integration into social groups, feel part of a community or a
group; affectionate relationships) If both the physiological and the safety needs are
fulfilled, the affection, love and belongingness needs come into prominence. Maslow
claimed people need to belong and accepted among their social groups. Group size
does not mean anything: social groups can be large or small. People need to love and
be loved by others. Love needs involve giving and receiving affections. Many people
suffer from social nervousness, loneliness, social isolation and also clinical depression
because of the lack of this love or belongingness factor.
4. Esteem (respect for a person as a useful, honorable human being) In our society most
people long for a stable and high valuation of themselves, for the esteem of others and
for self-respect or self-esteem. Esteem means being valued, respected and appreciated
by others. Humans need to feel to be valued, such as being useful and necessary in the
world. People with low self esteem often need respect from others. Maslow divided
two types of esteem needs: a ‘lower’ version and a ‘higher’ version. The ‘lower’ version
of esteem is the need for respect from others: for example attention, prestige, status
and loving their opinion. The ‘higher’ version is the need for self-respect: for example,
the person may need independence, and freedom or self-confidence.
5. Self-actualization (individual’s desire to grow and develop to his or her fullest
potential) ‘What humans can be, they must be.’ Self-actualization reflects an
individual’s desire to grow and develop to his/her fullest potential. People like
opportunities, choosing his/her own versions, challenging positions or creative tasks.
Maslow described this level as the ‘need to accomplish everything that one can, to
become the most that one can be’.
McClelland – Need for achievement, affiliation and power
• In the early 1960s McClelland – built on Maslow’s work – described three human
motivators. McClelland claimed that humans acquire, learn their motivators over
time that is the reason why this theory is sometimes called the ‘Learned Needs
Theory’.
• He affirms that we all have three motivating drivers, and it does not depend on our
gender or age. One of these drives or needs will be dominant in our behavior.
• McClelland’s theory differs from Maslow’s and Alderfer’s, which focus on satisfying
existing needs rather than creating or developing needs.
• The three motivators are:

✓ achievement: a need to accomplish and demonstrate competence or mastery

✓ affiliation: a need for love, belonging and relatedness
✓ power: a need for control over one’s own work or the work of others.
• Achievement motivation – a need to accomplish and demonstrate competence or
mastery. It pertains to a person’s need for significant success, mastering of skills,
control or high standards. It is associated with a range of actions. Individual seek
achievement, attainment of challenging (and also realistic) goals, and advancement
in the school or job. This need is influenced by internal drivers for action (intrinsic
motivation), and the pressure used by the prospects of others (extrinsic motivation).
Low need for achievement could mean that individuals want to minimize risk of
failure, and for this reason people may choose very easy or too difficult tasks, when
they cannot avoid failure. In contrast, high need for achievement means that
humans try to choose optimal, sufficiently difficult tasks, because they want to get
the chance to reach their goals, but they have to work for it, they need to develop
themselves. Individuals with high need for achievement like to receive regular
feedback on their progress and achievements; and often like to work alone; seek
challenges and like high degree of independence. Sources of high need for
achievement can be: praise for success, goal setting skills, one’s own competence
and effort to achieve something, and it does not depend only on luck; of course
positive feelings and also independence in childhood.
• Affiliation motivation – a need for love, belonging and relatedness. These people have
a strong need for friendships and want to belong within a social group, need to be
liked and held in popular regard. They are team players, and they may be less effective
in leadership positions. High-need-for-affiliation persons have support from those with
whom they have regular contact and mostly are involved in warm interpersonal
relationships. After or during stressful situation individuals need much more affiliation.
In these situations people come together and find security in one another. There are
times when individuals want to be with others and at other times to be alone –
affiliation motivation can become increased or decreased.
• Authority/power motivation – a need to control over one’s own work or the work of
others. These persons are authority motivated. There is a strong need to lead and to
succeed in their ideas. It is also needed to increase personal status and prestige. This
person would like to control and influence others. McClelland studied male managers
with high need for power and high need for affiliation and found that managers with a
high need for power tended to run more productive departments in a sales
organization than did managers with a high need for affiliation.
Entrepreneurship development program
• Entrepreneurial Development Program means a program conducted to help a person in
strengthening his entrepreneurial motive and in acquiring skill and capabilities required
for promoting and running an enterprise efficiently.
• A program which is conducted with a motive to promote potential entrepreneurs,
understanding of motives, motivational pattern, their impact on behavior and
entrepreneurial value is termed as an entrepreneurial development program.
• A well designed EDP envisages three tiered approach:

1. Developing achievement motivation and sharpening entrepreneurial traits and behavior.

2. Guidance on industrial opportunities, incentives, facilities and rules and regulations.

3. Developing managerial and operational capabilities.

Importance
• Entrepreneurs are considered as agents of economic growth. They create wealth,
generate employment, provide new goods and services and raise the standard of
living.
• EDP is an effective way to develop entrepreneurs which can help in accelerating the
pace of socioeconomic development, balanced regional growth, and exploitation of
locally available resources.
• It can also create gainful self-employment. An EDP equips entrepreneurs and makes
them competent to anticipate and deal with a variety of problems that any
entrepreneur may have to face.
• It gives confidence to the entrepreneur to face uncertainties and take profitable risks.
It prepares them to deserve and make good use of various forms of assistance.
The EDP can be beneficial in the following ways:
▪ Economic Growth: EDP is a tool of industrialization and path to economic growth
through entrepreneurship.
▪ Balanced Regional Development: EDP helps in the dispersal of economic activities
in different regions by providing training and other support to local people.
▪ Eliminates Poverty and Unemployment : EDPs provide opportunities for self-
employment and entrepreneurial careers.
▪ Optimum use of Local Resources : The optimum use of natural, financial and
human resources can be made in a country by training and educating the entrepreneurs.
▪ Successful Launching of New Unit : EDP develops motivation, competence and
skills necessary for successful launching, management and growth of the enterprise.
▪ Empowers New Generation Entrepreneurs : EDP, by inculcating entrepreneurial
capabilities and skill in the trainees, create new generation entrepreneur who hitherto
was not an entrepreneur
Course Contents and Curriculum
• It consists of the following six inputs.
▪ General Introduction to Entrepreneurship: The participants are exposed to a
general knowledge of entrepreneurship such as factors affecting small-scale industries,
the role of entrepreneurs in economic development, entrepreneurial behavior and the
facilities available for establishing small-scale enterprises.
▪ Achievement Motivation Training (AMT): The purpose of the AMT is to develop
the attitude towards risk-taking, initiative and other such behavioral or psychological
traits. Without achievement motivation training, an EDP becomes an ordinary executive
development program.
▪ Support System and Procedures: The participants have to be exposed to agencies
like the local banks and other financial institutions, industrial service corporations and
other institutions dealing with the supply of raw-materials, equipments etc. The
programs on support system needs to include the procedures for approaching them,
applying and obtaining assistance from them and availing of the services provided by
them.
▪ Market Survey and Plant Visit: In order to familiarize the participants with real
life situations in small business, plant visits are also arranged. Such visits help the
participants to know more about an entrepreneur‘s behavior, personality, thoughts and
aspirations.
▪ Managerial Skill: Since a small entrepreneur cannot employ management experts to
manage his enterprise, he needs to be imparted basic and essential managerial skills in
the functional areas like finance, production and marketing knowledge of managerial
skills enables an entrepreneur to run his enterprise smoothly and successfully.
▪ Project Preparation and Feasibility Study: A good period of time needs to be
devoted to the actual preparation of projects. Various guidance sessions are helpful in
enabling the trainees to identify appropriate business opportunities. Information and
counseling on various business opportunities is provided though the team experts and by
spot survey.
Institutions providing entrepreneurship development programs in India
▪ National Institute for Entrepreneurship and Small Business Development
(NIESBUD): Established in 1983 by the Ministry of Industry, Government of India.
• Its main functions and objectives are,
1. To serve as an apex national level resource institute to accelerate the process of
entrepreneurship development.
2. To help and facilitate various agencies in carrying out training and other
entrepreneurship development activities.
3. To provide vital information support to trainers, promoters and entrepreneurs.
4. To evolve effective training strategies.
5. To identify, train and assist potential entrepreneurs for setting up ventures.

• This institute acts as a nodal agency.

• It organizes about 29 national and 6 international training programs every year.
▪ Entrepreneurship Development Institute of India (EDII)
• It was established in 1983 by financial institutions.
• It conducts research, training and institution-building activities for encouraging the
participation of backward regions.
• The main objectives of EDII are,
1. To increase the supply of trained entrepreneurs through training.
2. To generate opportunities for self-employment.
3. To improve managerial capabilities of small-scale industries.
4. To promote small enterprises at rural level.
5. To contribute to the dispersal of business ownership.
Some other organizations providing EDPs are-
▪ Small Industries Development Organization (SIDO)
▪ Indian Investment Centre (IIC)
▪ National Institute for Small Industry Extension and Training (NISIET), Hyderabad
▪ Small Industrial Development Bank of India (SIDBI )