What is Entrepreneurship Development?

 Entrepreneurship development is the process of enhancing the

entrepreneurial knowledge and skills via structured training
programmes.
 It deals with the study of entrepreneurial behaviour, dynamics of
business, and its development and expansion.
 The objectives of entrepreneurship development programme are to
increase the knowledge and skill of existing entrepreneurs and
encouraging others to become one. Ultimately, it helps in increasing the
number of such individuals in an economy.

 Entrepreneur development focuses on training individuals who are

interested in commencing their venture or expand their existing one.
 Furthermore, it concentrates more on encouraging innovation and
evaluating the growth potential of an enterprise.
 This development process helps new firms to perform better and
achieve their goals and expand their businesses. As a result of it, the
economy of a nation also improves. Moreover, it enables entrepreneurs
to develop and manage their business better along with the financial
insecurities associated with it.  
 An increase in the rate of development of entrepreneurship ventures
alleviates the problem of unemployment in an economy. Additionally, it
decreases the issue of stagnation and increases competition in the
market. A process like this aims to develop the competence of an
entrepreneur and his/her venture. Therefore, it enhances
entrepreneurial objectives and encourages more people to become an
entrepreneur.

Entrepreneurship Development Process

 Every entrepreneurship development process comprises several steps.
Here are the vital steps of building an effective development programme
to help individuals –
  Learn about the Business Idea: It is the starting processes of
entrepreneurship. Once, an individual has generated the idea for a
business, he/she will subsequently need to evaluate and identify its
business opportunities. Hence, he/she has to learn more about the
business and its consumers.
 However, it is not an easy task. To find relevant information, an
entrepreneur has to talk to his/her employees, the marketing team,
product designing team, etc. Apart from these, consumer surveys often
unearth various new pieces of information. They can help individuals to
learn more about their business ideas.

Thorough Evaluation
 Before moving forward, entrepreneurs need to evaluate a business idea
or opportunity thoroughly. An entrepreneur can do it by himself/herself
by considering the following points –
 Whether an opportunity or idea is worth investing or not.
 What are the requirements for this product?
 Is it feasible or not based on its cost?
 What are the competitive advantages?
 Associated risks
 Whether it coincides with the company’s goal or not
Business Plan 
 After identifying the opportunity and gathering information about it, an
entrepreneur needs to create a comprehensive business plan to make
most of this opportunity. It is one of the vital stages of entrepreneurship
development process. Such a plan acts as the base of a venture as well
as the benchmark. It shows whether the business in on track or not.

 Creating a business plan requires time and effort, and an entrepreneur

must be dedicated to it. The significant pieces of a business plan, i.e. its
vision, goal, objectives, capital and the product itself must be figured out
in this process.
Finding Resources
  Once the entire business plan is ready, the next step
of entrepreneurship development and management is to locate sources
of finance and human resources. Here entrepreneurs find investors for
his/her venture. Moreover, recruits individuals as per their skill and
abilities to carry out different business activities. 
Framing out the Management Structure
It is a crucial concept of entrepreneurship development. After raising funds
and hiring the required employees, this is the next process on the list. An
entrepreneur must frame out the hierarchy in the organisation. Thus, it
becomes easier to resolve any problem through this chain of command.
Plan the Future
Once a business is up and running smoothly, an entrepreneur has to consider
its future. In this final point of entrepreneur development programme
notes, businesspersons decide the next step of the business. Based on actual
data generated by the company and pitting it against the projected one gives a
clear idea of how the business is performing. If everything is positive and on
track, then an entrepreneur decides to invest in expansion.

Entrepreneurship Development Program

 Entrepreneurship Development Programme (EDP) is a programme which
helps in developing entrepreneurial abilities.
 The skills that are required to run a business successfully is developed
among the students through this programme. Sometimes, students may
have skills but it requires polishing and incubation. This programme is
perfect for them.
 This programme consists of a structured training process to develop an
individual as an entrepreneur. It helps the person to acquire skills and
necessary capabilities to play the role of an entrepreneur effectively.

 EDP is an effort of converting a person to an entrepreneur by passing

him through thoroughly structured training.
 An entrepreneur is required to respond appropriately to the market and
he/she is also required to understand the business needs.
  The skills needed are varied and they need to be taken care in the best
possible way. EDP is not just a training programme but it is a complete
process to make the possible transformation of an individual into an
entrepreneur.
 This programme also guides the individuals on how to start the business
and effective ways to sustain it successfully.
 Roles of EDP
 An Entrepreneurship Development Programme primarily plays four roles
to help an individual to become an entrepreneur. They are:
 Stimulatory Role: It aims at influencing people in large number to be the
entrepreneur.
This includes:
 developing managerial, technical, financial, and marketing skill
 inculcating personality traits
 promotes and reforms entrepreneurial behaviour and values
 identifying a potential entrepreneur applying scientific methods
 motivational training and building a proper attitude
 strengthening the motive of a person and giving recognition
 the valuable know-how of the local products and the processes help in
the selection of products, preparation of project reports
 
Supportive Role: It helps in the following ways:
 registration of the business
 procurement of fund
 Incubation support
 Team building and team development support
 Mentorship and guidance from industry experts
 Providing tax relief, subsidy, government schemes etc.
 guidance in product marketing
 support for management consultancy
 
Sustaining Role: 
 It aims at providing an effective safeguard to businesses to sustain
against the cut-throat market competition.
 This includes:
 help in modernization, expansion, and diversification
 additional financing for further development
 Global Networking Opportunities
 creating new marketing processes
 helping access to improved services and co-working centres
 
Socio-economic Role: It aims at upgrading the socio-economic status of the
public and includes:
 identifying entrepreneurial qualities in practicality
 creating employment opportunities in micro, small, and medium
industries on an immediate basis
 arresting concentration of industries by supporting regional
development in a balanced manner
 focusing on the equal distribution of income and wealth of the nation
 channelizing the latent resources for building an enterprise

Objectives of Entrepreneurial Development Programme (EDP) :

 To make people learn compliance with law.
 To develop and fortify entrepreneurial quality, i.e., motivation or need
for achievement.
 To develop small and medium scale enterprises in order to generate
employment and widen the scope of industrial ownership.
 To industrialize rural and backward sections of the society.
 To understand the merits and demerits of becoming an entrepreneur.
 To investigate the environmental set-up relating to small industries and
small businesses.
 To design project for manufacturing a product.
 To increase the supply of entrepreneurs for quick industrial
development.
 To prepare individuals to accept the uncertainty involved in running a
business.
 To develop managerial skills among small entrepreneurs for improving
the performance of small-scale industries.
  To offer profitable employment opportunities to educated young men
and women.
 To expand the sources of entrepreneurship.

 hases of Entrepreneurial Development Programme (EDP) :



All the EDPs mainly consist of three phases, which are illustrated as
below:

1) Pre-Training Phase: 
This step can be considered as the introductory phase in which the
entrepreneurship development programmes are launched. A wide spectrum of
activities are performed in this phase arc described below:
i) Identification of suitable location where the operations can be initiated like a
district.
ii) Selection of an individual as a course coordinator or project leader to
coordinate the EDP activities.
iii) Organisation of basic infrastructural facilities related to the programme.
iv) Conducting the environmental scanning or industrial survey in order to look
for better business opportunities.
v) Developing various plans associated with the programme, like :
a) Promotional activities by using electronic or print media, posters, leaflets,
etc.
b) Contacting business experts, different agencies, NGOs that can become a
part of the programme, directly or indirectly.
c) Printing the application forms and availing them in different locations with
the instructions.
d) Establishing selection committee for screening of candidates.
e) Preparing budget and getting it approved from the management and
arranging other activities which are related to the programme.
f) Arranging and deciding the need-based elements in the syllabus of training
programme and to contact guest faculties for the training session.

vi) Looking for the assistance of various agencies such as DICs, banks, SISI,
NSIC, DM and so on.
vii) Conducting industrial motivational campaigns to increase the number of
applications.
2) Training Phase : 
 The main function of any EDP is to impart training to future
entrepreneurs and guiding them for establishing the enterprise.
 The normal duration of the entrepreneurship development programme
is 4-6 weeks and it is usually a full time course.
 The objectives, training inputs and the centre of focus are explained in
the programme design.
 Commonly, it is considered that the trainees do not have enough
information about the change because of which new programme is
prepared.
 Each trainee should appraise himself at the termination of the training
programme to have a clear view about his/her future endeavours.
3) Post-Training Phase: 
 This phase is also referred as the phase of follow-up assistance. In this
phase, the candidates who have completed their programme
successfully are provided post-training assistance.
 This phase is very important as after the completion of training
programme, most of the entrepreneurs face a lot of hardship in the
business plan implementation.
 Thus, with the help of various counselling sessions, the training
organisations try to extend their support to trainees.
 Members like State Financial Corporation, commercial banks, training
institutions and District Industries Centre constituted all together to
assist the entrepreneurs on the basis of mentioned goals :
 To assist trainees in a meaningful manner so that trainees can
realize their business plan.
  To analyse the development made by trainees in the project
implementation.
 To evaluate the post-training approach.
 To provide escort services to the trainees with the help of various
promotional and financial institutions.

The importance of EDP is as follows:

1) Formation of Employment Opportunities:
Entrepreneurial development programmes generate employment
opportunities in the developing and under-developed countries. It assists and
encourages individuals to establish their own business and enable them to
become self-employed. By setting-up. several business enterprises, EDP also
creates abundant job opportunities for other people.
2) Provides Adequate Capital : 
A large amount of capital is required to set-up a business enterprise. This
financial assistance is provided by various EDP agencies. EDPs instruct the
development banks such as ICICI, IDBI, IFCI, SIDCs, etc., to take initiative in
promoting entrepreneurship.

3) Proper Utilization of Local Resources: 

New entrepreneurs utilize the available local resources in the most effective
way. This utilization of resources plays an important role in the development of
a particular area or region at minimum cost. EDPs .guide, educate and teach
the entrepreneurs to exploit the local resources efficiently.
4) Increased Per Capital Income: 
Entrepreneurs have the ability to organise the factors of production and
utilize them in the most productive manner by establishing an enterprise. This
development leads to increased production, employment and wealth
generation. As a result, overall productivity and per capital income of the
economy is raised.
5) Improved Standard of Living: 
EDPs provide latest technologies and innovative methods to entrepreneurs
which helps them to produce large quantity of products at lower cost. This also
enables entrepreneurs to exploit the available resources and produce quality
products. This automatically leads to improved standard of living.

6) Economic Independence: 
EDPs strengthen the entrepreneurs to produce variety of products in large
quantities at competitive prices. It also helps an entrepreneur to develop
substitutes of imported products which prevents the country from being
dependent on other foreign countries. It also saves foreign exchange of the
country.
7) Preventing Industrial Slums: 
Most of the developed industrial areas are facing problems related to
industrial slums. This leads to over burdening of public amenities and also
affects the health of people adversely. EDPs offers several subsidies,
incentives, infrastructural support and financial grants to new entrepreneurs
for establishing their businesses, thus, preventing the growth of industrial
slums.
8) Reducing Social Tension:  
 A majority of youngsters and educated individuals of the society are in
the state of social unrest and tension. This social tension restricts them
from finding the right direction in their careers.
 Most of the students feel frustrated about not getting a job after the
completion of education. In such situations, EDPs helps people by
providing them proper guidance, assistance, training and support for
establishing new enterprises and businesses, As a consequence, social
tension is reduced as they generate self-employment opportunities.

9) Facilitating Overall. Development: 

EDPs facilitate entrepreneurship which helps in the overall development of the
society by producing new products, innovative services, low cost consumer
goods, job opportunities, increasing the standard of living, and overall
productivity. This facilitates in the overall development of the economy and
the country.
Problems of entrepreneurship development programmes (EDPs) are:
1. 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.
2. 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.
 3. 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.
 4. 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 instil basic managerial skills in the entrepreneurs.
Thus the very objective to develop and strengthen entrepreneurial
qualities and motivation is defeated.
5. 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.
6. 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 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 entrepreneurial climate.

Environmental Analysis

Definition: Environmental Analysis is described as the process which examines

all the components, internal or external that has an influence on the
performance of the organization. The internal components indicate the
strengths and weakness of the business entity whereas the external
components represent the opportunities and threats outside the organization.

 To perform environmental analysis, a constant stream of relevant

information is required to find out the best course of action. Strategic
Planners use the information gathered from the environmental analysis
for forecasting trends for future in advance. The information can also be
used to assess operating environment and set up organizational goals.
 It ascertains whether the goals defined by the organization are
achievable or not, with the present strategies. If is not possible to reach
those goals with the existing strategies, then new strategies are devised
or old ones are modified accordingly.
 Advantages of Environmental Analysis
The internal insights provided by the environmental analysis are used to assess
employee’s performance, customer satisfaction, maintenance cost, etc. to take
corrective action wherever required. Further, the external metrics help in
responding to the environment in a positive manner and also aligning the
strategies according to the objectives of the organization.

Environmental analysis helps in the detection of threats at an early stage, that

assist the organization in developing strategies for its survival. Add to that, it
identifies opportunities, such as prospective customers, new product, segment
and technology, to occupy a maximum share of the market than its
competitors.

Steps Involved in Environmental Analysis

1. Identifying: First of all, the factors which influence the business entity are to be
identified, to improve its position in the market. The identification is
performed at various levels, i.e. company level, market level, national level and
global level.
2. Scanning: Scanning implies the process of critically examining the factors that
highly influence the business, as all the factors identified in the previous step
effects the entity with the same intensity. Once the important factors are
identified, strategies can be made for its improvement.
3. Analysing: In this step, a careful analysis of all the environmental factors is
made to determine their effect on different business levels and on the business
as a whole. Different tools available for the analysis include benchmarking,
Delphi technique and scenario building.
4. Forecasting: After identification, examination and analysis, lastly the impact of
the variables is to be forecasted.
Environmental analysis is an ongoing process and follows a holistic approach
that continuously scans the forces effecting the business environment and
covers 360 degrees of the horizon, rather than a specific segment.