Entrepreneurship development in india

1. Entrepreneurship Development in
India
Prof. Shrinivas V K
Prof. SVK

2. Approaches to ED
 HR Development
 EDP
 NEED
Prof. SVK

3. EDP
 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
Prof. SVK

4. 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
Prof. SVK

5. Misconception about EDP
 EDP is solution for all problems
 EDP means only training
 Higher the number, better the EDP
 EDP success is the sole responsibility of
Trainer- motivators
Combined course may help
Prof. SVK

6. Prof. SVK
ED CYCLE

7. Objectives of the Programme
 To 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
Prof. SVK

8. 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
Prof. SVK

9. 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
 Reduce fatigue and increase speed of work
 Standardization in industry and internal processes
Prof. SVK

10. Methods of Training
 Individual instruction
 Group instruction
 Lecture method
 Demonstration method
 Written instruction method
 Conference
 Meetings
Prof. SVK

11. Structuring EDP
 Survey of entrepreneurial opportunities
 Selection of entrepreneurs
 Experiences in EDP abroad
Prof. SVK

12. Pre requisites of EDP
 Selection of entrepreneurs
 Inputs for EDP
 Support system
 Follow up
Prof. SVK

13. Phases of EDP
 Select area from existing government policy guidelines/socio-
economic reports
 Techno-economic survey of the selected area; feasibility study
 Identify potential and existing entrepreneurs interested in starting
new business/expansion/diversification
 Training
 Follow up and consultancy services
Prof. SVK

14. Selection of entrepreneurs for EDP
 The programme is well publicized and promoted to attract maximum
applications for screening
 Selection of top 25 to 30 applicants only
 Applications screened for:
 Demographics and socio cultural data – age, education, work exp,
financial resources, type of business etc
 Motivation factors – pull factors, source of encouragement, credibility,
endurance, concreteness of plans
 Psychological test results- traits like risk taking, need for
achievement
Prof. SVK

15. Features of EDP
 Identification and careful selection of entrepreneurs for
training
 Developing the entrepreneurial capabilities of the
trainee
 Equipping the trainee with the basic managerial
understanding and strategies.
 Ensuring a viable industrial project for each potential
entrepreneur.
 Helping him to secure the necessary financial,
infrastructural and related assistance; and
 Training cost is highly subsidised and only token fee is
charged.
Prof. SVK

16. Issues in EDP
 Structure and Composition of EDP
 Areas of operation
 Fixing Priorities
 Lack of specialists’ support
Prof. SVK

17. The operational problems
 Inherent inability
 Diverse opinions
 Poor strategy
 Lack of institutional commitment
 Lack of local support
 Non availability of inputs
 Poor follow-up
 Inadequate research facilities
 Ill planned training methodology
 Lack of creativity and commitment
Prof. SVK

18. Institutions in Aid of
Entrepreneurship Development
Prof. SVK

19. National Institute for entrepreneurship and Small
Business Development (NIESBUD),New Delhi
 Established by Government of India in 1983
 An apex body for coordination and supervison on activities of
various institutes engaged in entrepreneurial development
 Helps evolution of EDP, model syllabi, effective training
strategies, methodology, manuals and tools
 Activities undertaken:
 Organise and conduct training programmes
 Coordinate training activities of various agencies/institutes
 Provide affiliation to such institutes
 Hold examinations and confer certificates to trainers and trainees

20. Small Industries Service
Institutes (SISI)
 Three months part time evening courses in management
 4-6 weeks part time courses in intensive training in functional
areas (marketing, finance)
 Special courses in quality control, HR, production planning,
product development etc
 Mobile workshops imparting training on correct usage of tools
and equipment
 Helps with preparation of plant layouts
 Helps individual firms on specific problems faced

21. Small Industries Development
Organisation (SIDO)
 Runs EDP in collaboration with financial
institutes, directorate of industries
 Gives on the job training on shop floor
(carpentry, electrical devices)
 Sends its officials/trainers to organisations to
update their knowledge

22. National Small Industries
Corporation (NSIC)
 Provides apprenticeship for 2 years
 Training supervisory staff of SSI up to 2 years
 Training to engineers up to 2 years
 Training workmen for 12 months
 Training to set up own venture
 Advice on machinery and components
 Production of technologically advanced machines

23. Entrepreneurship Development Institute
of India (EDII),Ahmedabad.
 Develops programmes for entrepreneurial training and
development
 Develops innovative training techniques for trainers
 Focused attention on women entrepreneurs with first such
EDP in 1988
 EDP for rural entrepreneurship development in U.P and
Orissa
 Famous for organising camps on entrepreneurship
 Condusted EDP in Sri Lanka, Nepal, Ghana, Kenya etc

24. National Alliance of Young
Entrepreneurs (NAYE)
 Contribution in encouraging women entrepreneurship
 Set up women’s wing in 1975
 This wing assists women in:
 Getting better access to resources, infrastructure, markets
 Identify investment opportunities
 Attending to problems of individual industries
 Sponsor participation in trade fairs, exhibitions, conferences
 Organise seminars, training programmes, workshops

25. MANAGEMENT
DEVELOPMENT INSTITUTE
(MDI)
Objectives of the Centre for entrepreneurship
 To provide a variety of services, on a non-profit basis, to
encourage, plan for, and link up entrepreneurs, firms,
and organizations in India and abroad
 To offer facilities and networking to entrepreneurs under
an Outreach Program
 To train students aspiring to be entrepreneurs
 To render services and training that may facilitate
entrepreneurs to operate in emerging areas
 To serve as a platform for various national international
centers
Prof. SVK

26. Institute of Entrepreneurship Development
 IED Odisha was established in the year 1987 with an aim to inculcate the value of
entrepreneurship to the educated unemployed youth in the state and to motivate
them to enter into the field of self employment.
 Since its inception the institute has trained more than one lakh entrepreneurs in
various fields with success rate about 30%.
 Presently the institute is focusing on skill based training for the youth.
 mission is to promote micro, small and medium enterprises through innovative and
need based entrepreneurship trainings.
 The institute has to act as a national pace setter in the field of entrepreneurship
education, consultancy, research study, training and development.
Prof. SVK

27. National Science & Technology
Entrepreneurship Park (STEP)
 The Science Parks and similar initiatives help in
creating an atmosphere for innovation and
entrepreneurship; for active interaction between
academic institutions and industries for sharing
ideas, knowledge, experience and facilities for the
development of new technologies and their rapid
transfer to the end user.
Prof. SVK

28. Objectives
 To forge a close linkage between universities, academic
and R&D institutions on one hand and industry on the
other.
 To promote entrepreneurship among Science and
Technology persons, many of whom were otherwise
seeking jobs soon after their graduation.
 To provide R&D support to the small-scale industry
mostly through interaction with research institutions.
 To promote innovation based enterprises.
Prof. SVK

29. Centre for Entrepreneurship
Development(CED)
Objectives of CED:
 To promote self-employment and Entrepreneurship
culture .
 To enhance employability of educated youth through
industry specific skill training
 Women empowerment
 NGO Capacity building for mass employment generation
in the rural areas.
Prof. SVK

30. Activities of CED
 To conduct Entrepreneurship Awareness Camps in the colleges
 To conduct Sector Specific Entrepreneurship Development
Programme
 To conduct Faculty Development Programme in Entrepreneurship
 To conduct Bankers / Development Officials Sensitization Programme
on Small Industry
 To conduct Women Entrepreneurship Development Programme
 To conduct Skill Development Courses in Catering Technology,
Fashion Technology and Information Technology.
 To conduct NGO Capacity Building Programme
 To undertake Industry consultancy services
 To undertake research assignments
 To collaborate with other agencies / organizations for mutually
beneficial activities Prof. SVK

31. Thank you…..
that’s it..
Prof. SVK

32. Significance and role of
Environment on ED

33.  Entrepreneurs are not born…….they are
made right from the childhood
 The environment around the entrepreneur
makes an entrepreneur
Prof. SVK

34. Environmental factors
 Parents
 Friends
 Teachers
 School atmosphere
 Neighbourhood
 Society around him
Prof. SVK

35.  Entrepreneurship is the result of the
interaction and assimilation of different social
and environmental factors
Prof. SVK

36. Entrepreneurial Environment
 Entrepreneurial Environment is a combination of
factors that play a role in the development of
entrepreneurship.
 First, it refers to the overall economic, socio-
cultural, and political factors that influence
people’s willingness and ability to undertake
entrepreneurial activities.
 Second, it refers to the availability of assistance
and support services that facilitate the start-up
process.
Prof. SVK

37. The available literature on entrepreneurial
environments can be grouped into three broad
streams:
 general environmental conditions for entrepreneurship;
 environmental conditions of a particular country or
region; and
 the role of public policy in shaping the entrepreneurial
environments.
Prof. SVK

38. General Environmental
Conditions
 General environmental conditions that may
influence entrepreneurship include:
 legal and institutional frameworks for efficient
functioning of private enterprises
 presence of experienced entrepreneurs and skilled
labor force
 accessibility of suppliers and customers or new
markets
 high degree of competition among firms
 favorable government policies
 provision of training and support services
 supportive infrastructure
Prof. SVK

39.  In addition, the literature suggests that the
characteristics of people, their skills, experience, and
motivation, play important roles in new venture
creation
Prof. SVK

40. Country/Region Specific Environmental
Conditions
 Countries that keep rules and regulations at a minimum,
offer tax and other incentives, and provide training and
counseling services to start-up entrepreneurs increase
the likelihood of new venture start-ups.
 Furthermore, factors such as availability of financial
resources, large size urban areas, and presence of
universities for training and research are found to be
very important to increase the rate of new venture
creation
Prof. SVK

41. Studies also show that entrepreneurs face several
obstacles, such as lack of financial assistance, lack
of information on various aspects of business,
excessive taxation, and high rate of inflation.
Prof. SVK

42. Role of Public Policy
 Scholars that focused on the role of public policy suggest
several policy options for developing entrepreneurship.
 These policy options include provision of
 venture capital funds
 tax-based incentives, and government procurement
programs
 protection of proprietary ideas and innovations
 investment in education and research
 explicit recognition of, and support for, entrepreneurship by
government agencies
 fostering of entrepreneurship by educational institutions
 and minimization of entry barriers.
Prof. SVK

43. Entrepreneurial motivation
Positive environment
Encourages entrepreneurial development and
growth
This is called entrepreneurial motivation
Prof. SVK

44. Greatest Motivation……
Money
But………
It is not alone that inspire an entrepreneur
Prof. SVK

45. Other motivating factors are:
 Internal
 External
Prof. SVK

46. Internal factors
 Family background
 Education background
 Training and work experience
 Desire for achievement
 Desire to head a unit
Prof. SVK

47. External Factors
 Availability of inputs or raw materials
 Demand of the product and large profits
 Availability of infrastructure and finances
 Availability of technology
 Short supply of the product
 Government initiative and assistance
 Ready availability of sick units
Prof. SVK

48. Role of Infrastructural Network
Prof. SVK

49. Prof. SVK
 The basic infrastructure at the place of the
project help in
 speedy implementation of the project
 Reduce costs
 Increase profitability

50. Prof. SVK
 Better or rapidly improving infrastructure in a
particular area may attract more
entrepreneurs and see enhanced
entrepreneurial activities

51. Basic infrastructure requirements
Certain infrastructural elements seem to make
substantial impact on the entrepreneurial
environment.
 modern transport and communication facilities that
provide easy access to suppliers and customers
 Road Network
 Connected to Rail
 Ports
 Airport
Prof. SVK

52. Prof. SVK
 location decisions of based on the community’s
ability to supply trained and capable workers and
on the proximity to research and development
institutions

53. Prof. SVK
 existence of universities and research and
development programs
 a well-educated and technically skilled labor
force.

54.  Supporting industries
 Climatic conditions
 Logistic support
 Electricity
 water
Prof. SVK

55. Role of Infrastructural Network
 Most commercial operations such as venture
capital firms and commercial banks tend to
exhibit greater interest in concentrated, urban
areas that usually have a well-developed
infrastructure and concentrated demand for
funds
 They also favour areas where businesses are
easier to supervise and monitor and the cost
of supervising and monitoring loans is
relatively low
Prof. SVK

56.  The basic infrastructure at the place of the
project help in
 speedy implementation of the project
 Reduce costs
 Increase profitability
Prof. SVK

57.  Better or rapidly improving infrastructure in a
particular area may attract more
entrepreneurs and see enhanced
entrepreneurial activities
Prof. SVK

58. Prof. SVK