EDP-Meaning

• It’s a program designed to help a person

strengthen his entrepreneurial motive and in
acquiring skills and capabilities necessary for
playing his entrepreneurial role effectively

• Towards this end its necessary to promote his

understanding of motives,motivation
pattern,their impact on behaviour and
entrepreneurial value
 The need for EDP
• The need for a broad-based entrepreneurial class in
India arises from the need to speed up the process
of activating the factors of production,leading to a
higher rate of economic growth,dispersal of
economic activities,development of backward and
tribal areas,creation of emlpoyment
opportunities,improve the standard of living of the
weaker sections and involvement of all sections of
the society and progress
 Appropriate design
• Its now well recognized that entrepreneurs can be
developed through appropriately designed EDP
programmes.This follow a 3 tier approach
• Developing acheivement motivation and and
sharpening entrepreneurial traits and behaviour
• Project planning and guidance and development of
industrial opportunities
• Incentives,facilities,rules and regulations and
developing managerial and operational capabilities
 The myth about ED
• The myth about ED that entrepreneurs are born
and not made no longer holds good
• A good no of entrepreneurs have made a mark my
training and hard work
• The basic pre-requisities of ED are
• Stimulation
• Support
• Sustaining efforts
• Human factor and
• Environment
 Misconceptions of EDP
• Lack of understanding and clarity has limited its
growth
• DEP has not acquired its rightful place in the industrial
economy of the country
• The common misconceptions are
• Join EDP,all your problems are solved-It’s a valuable
opportunity not available to all but many a time an
impression is created is created that joining EDP
means assurance of finance,obtaining liecences and
receiving incentives
• The misconceptions arise because of lack of
promotional efforts to get participants for EDP as
well as using wrong techniques for attracting
entrepreneurs giving false hopes
• The misconceptions at trainer and trainees should
be removed EDP will create more problems
• In reality EDP equips entrepreneurs and make
them competent to anticipate and deal with
variety of problems.
• EDP means only training-In fact training is only
one of the segments of developing
entrepreneurs
• Higher the number better the EDP

• EDP is the sole responsibility of the trainer-

motivators.
 Objectives of EDP
• EDP has been launched by the Industrial
service institute under department of
Industrial promotion for the promotion of
small scale and medium scale industries in the
country side
• The EDP also was considered as a part of the
industrial development policy planned in the
present national development and economic
plan
 Objectives contd--
• To promote small scale and medium enterprises
which will encourage self employment among
potential entrepreneurs
• To provide in rural areas special programmes
designed to stimulate mew ventures and encourage
expansion of existing small and medium industries
• To generate employment and self-employment in
the processing of indigenous raw materials for local
consumption and export
• To develop capabilities for potential entrepreneurs
and upgrade skills for the existing ones
 A sound training programme should enable
an entrepreneur to
• Develop and strengthen their entrepreneurial
quality and motivation
• Analyse environment related to small industries
and businesses
• Select project/product/service
• Formulate projects
• Understand the process and procedure of starting
up an enterprise
• Know and can influence the source of help/support
for launching the enterprise
• Acquire basic management skills

• Know the pros and cons of being an

entrepreneur

• Acquaint and appreciate the needed social

responsibility/entrepreneurial disciplines
• To let him set or reset the objectives of his
business and work individually and along with
his group for their realisation
• To prepare him for accepting totally unforseen
risks of business for a long time after such
training
• To enable him to take strategic decisions
• To enable him to build an integrated team equal
to the demands of tomorrow
• To communicate fast clearly and effectively
• To develop a broad vision to see the business as
a whole and to integrate his function with it
• To enable him to relate his product and industry
to the total environment,find what is significant
in it and take it in to account in his decisions and
actions
• To enable him to cope up with and coordinate
the different types of paper work,most of
which is statutorily obligatory
• To make him subscribe to industrial
democracy,that is accepting workers a partners
in enterprise
• To strengthen his passion for intergrity,honesty
and compilance with law for long term success
 Evolution of EDP
• The various motivation campaigns taken up by
the small industries service institute in the 60s
tried to fill the information gaps relevant for
small enterprises
• Contribution of the programmes was essentially
in the areas of disseminating knowledge on
financial,technical and managerial aspects
• These were programmes not just for ED but also
in the nature of supportive programmes
• The emergence of financial and industrial
development corporations in the states it was
visualized that creation of all external facilities
is not sufficient for the promotion of
entrepreneurship
Equally important are the qualities of the
individual who responds to the external
opportunities(ie availability of funds,financial
incentives etc)
 Experience in EDPs abroad
• EDP experiences in various countries reveal
that training made a lot of difference in the
performance of entrepreneurs
• The conclusion also was that EDP could be
developed as a valid substitute for natural
institutions(eg:business families)
 Basic features of the training programme

• Identification and careful selection of

entrepreneurs for training
• Developing the entrepreneurial capabilities of
the trainees
• Equip the trainees with basic managerial
understanding
• Ensuring a viable project for an entrepreneur
• Helping him with finance,infrastructure
 Entrepreneurial discipline
• Entrepreneurs are promoted and developed at
social cost
• They have certain responsibiity to the society
• The society expects adequate returns from
these people
• Entrepreneurs should follow a discipine which
is essential for their entrepreneurial career
 Disciplines
• |Repayment behaviour

• Response to the statutory requirements

• Progressive outlook towards labour

• Care for the environment,ecology etc

 Stage of growth of entrepreneurs
• The content of training will largely depend on
the stage of growth of entrepreneurs
• The entrepreneurs of the small businesses are
usually owner –managers
• In the beginning stage the play the role of a
worker and less of a manager
• As soon as the business attains stability the role
of the worker decreases and manager increases
• Thus the role of a small entrepreneur is a
dynamic one and follows a continuum
between workers and managers roles
• In the beginning stage as a part of the EDP
programme they receive motivational
training,basic knowledge of
pdoduction,marketing and financial
management
• Later on they require another training
intervention with advance level of management
inputs to take responsibility
• But advanced managerial training will not be
effective in the beginning as they don’t have
academic preparedness nor practical
experience to relate
• Training should be not only for stimulating but
also for sustaining the effort
 Variable backgrounds of trainees
• These variables demand for matching training
inputs with varying degree of intensity for them
to manage the enterprise efficiently
• For eg:a group of MBA entrepreneurs require less
intensity onmanagementskilldevelopment
• A group who need to start larger units may
require high intensity of management skills
• The training content needs to be prepared having
having serious consideration of background
 Phases of EDP
• Selection of area from existing socio-economic
reports and govt.guidelines
• A techno-economic survey in the selected
area to identify the opportunities for new and
existing industries and factors of production
• Identify the potential and existing who are
interested to diversify the business
• Training of these potential and existing entrepreneurs
to increase their motivation and equip them with the
skills
• The skills are in management,project feasibility
study,project preparation and familiarise them with
the prevaling business environment
• Provision of follow up and consultancy services in the
areas of
management,marketing,production,finance,projects,l
oans and upgradation of present entrepreneurs
 Selection scheme for EDP programme

• The proper identification and selection of

participants for training is seen as an
instrument to enhance the success of the EDP
• The EDP selection scheme is so designed that
the admission to the EDP is limited to 25-30
applicants
• These potential applicants are presumed to
posess the traits of potential entrepreneurs
Requirements for an EDP applicant
• Demographic and sociocultural data of the
applicant to asess his readiness for the
entrepreneurial role
• His age,educational background,business
experience,type of business
operation,financial resources,equity
participation and labour intensiveness
• Motivation of the applicant and exposure to
business,sibling positions,reasons to go into
business,source of encouragement and
support,concreteness of plans,credibility and
endurance
• Psychological test in the field of
entrepreneurial skills and traits such as risk
taking,need for achievement and other
relevant traits
 Promotions and recruitement
• In preparing the DEP training course the info on
EDP is disseminated to the entire public so that
enough people are there for screening
• The assistance of the local govt agencies,local
banks,chambers of commerce and service clubs
are involved in identifying target participants
• The conduct of EDP programmes will be
announce in the areas concerned by various
means of advertisement media.
 Selection procedures
• The selection scheme has a 3 step process
• Each applicant completes an application form
whichprobesintohisfamilybackground,educati
on,work and business experience
• The application also gets and idea of his
business plans and financial resources
• The applicant is being interviewed as to his
motiavtion in becoming an entrepreneur
• He should be having an entrepreneurial potential
and desire to participate in the programme
• The applicant goes through a psychological test
which measures entrepreneurial traits such as need
for achievement,risk taking,need to influence and
relevant traits
• Decision to admit an applicant to EDP is wholly
dependent on selection results and the no. of
participants to attend training shouldn’t exceed 30
per course
 Course content and curriculum
• The EDP training will be set according to the training
needs of participants
• It will be for both for existing and potential
entrepreneurs and industrial prospects of the area
• The programme lasts for 4 weeks and consists of 6
modules
• 1,Introduction-this module covers general knowledge
on factors affecting small scale industries, the role of
entrepreneurs in economic
development,entrepreneurial behaviour and facilities
available
• 2,Motivation training-Motivation training is a
three day live in module aimed at increasing
the participants level of achievement
• It also inculcate confidence and developing the
right attitude and behaviour towards business
• Two successful entrepreneurs are invited to
speak about their experience in setting up and
running a business
• 3,Essentials of management-The module is aimed
at providing the participants with basic
management and technical know-how
• These help them to operate their business
enterprise effectively and efficiently, it consists of
• General management
• Marketing management
• Production management and
• Financial management
• 4,Fundamentals of project feasibility study-
This part provides guidelines on effective
analysis of feasibility of the project .

• The feasibility is with regard to

marketing,organisation,techinical,financial and
social aspects
• 5,Organising the business-The purpose of this
module is to enable participants to know the
environment in which they operate their
business
• This covers aspects like government
incentives,industrial
opportunities,policies,business laws and
regulations
• 6,Plant visit-Plants visits are necessary to
familiarise the participants with real life
situations in small business
• Such trips also provide participants with
opportunities to learn more about an
entrepreneurs behaviour,personality,thoughts
and aspirations,including his plans and
projects
 Course duration and schedule
• The training programme is a 25 day course

• There are two sessions in a day

• The sessions are conducted either in the day

or in the evenings according to the opininon
of the people in the targetted area
 EDP organisations
• The lead in this matter is by the Small
industries development organisation through
its small industries service centres
• Few of those names are Xavier institute of
social services,Ranchi,Centre for
entrepreneurshipdevelopment,Ahmedabad,C
entre for ED,Hubli,Small industries extension
training institute Hyderabad
• In the creation of infrastuctural development for
ED,the firststepofIndianfinancialinstititionsincluding
IFCI was the establishment of Entrepreneurship
deveopment institute of India(EDII)
• The central govt.also have established the National
institute for Entrepreneurship and small business
development(NIESBUD)
• Next is rural entrepreneurship development
institute RED ranchi,Rural Management and
management centres in Maharastra