Entrepreneurship Development Programme, advantage & 6 types

Entrepreneurship Development Programs are primarily concerned with developing and motivating entrepreneurship talent and grooming him to be an effective entrepreneur.

The Industrial Service Institute (ISI) under the Department of Industrial Promotion launched the EDP for stimulating economic growth, dispersing industries to rural areas, and promoting the processing of local raw materials.

What is Entrepreneurship Development Programme (EDP)?

Entrepreneurship Development Programme is a program that aims to assist a person in increasing his entrepreneurship motive and in learning skills and capabilities necessary for playing his entrepreneurship role effectively.

Entrepreneurship Development Programme (EDP) is defined as a program meant to assist an individual in improving his entrepreneurial motivation and learning the skills and capabilities required to effectively fulfill his entrepreneurship role.

Objectives of Entrepreneurship Development Programme (EDP)

1. To promote the development of small and medium enterprises that would encourage self-employment.

2. To develop and strengthen entrepreneurial qualities through motivation.

3. To analyze the environment related to both small industries and small businesses.

4. To formulate a project.

5. To understand the process and procedure of setting up of small enterprise.

6. To acquire basic management skills.

7. To know the pros and cons of being an entrepreneur.

8. To develop an entrepreneurial culture.

9. To generate employment in the processing of indigenous raw materials.

10. To transform the Indian economy.

Types of Entrepreneurship Development Programme

The following types of EDP (Entrepreneurship Development Programme) are organized in India to promote entrepreneurship and enhance the entrepreneurial skills of individuals:

 1. Entrepreneurship Awareness Training Programme.

 2. Industrial Motivation Programme.

 3. Entrepreneurship Development Programme.

 4. Product-oriented Entrepreneurship Development Training Programme.

 5. Skill Development Programme.

 6. Management Development Programme etc.

1. Entrepreneurship Awareness Training Programme: 

This programme is designed to create awareness about entrepreneurship and its various aspects, such as the identification of business opportunities, market research, financing, and risk management.

2. Industrial Motivation Programme: 

This programme aims to motivate individuals to become entrepreneurs and start their own businesses. It provides information about the various opportunities and support available for starting and running a business.

3. Entrepreneurship Development Programme: 

This programme is designed to develop the skills and knowledge required to start and run a successful business. It covers various aspects of business management, such as finance, marketing, production, and operations.

4. Product-oriented Entrepreneurship Development Training Programme: 

This programme focuses on developing skills and knowledge related to product development and marketing. It provides information about the latest market trends, consumer preferences, and product design and development.

5. Skill Development Programme: 

This programme is designed to enhance the skills of individuals in specific areas of business management, such as accounting, marketing, and production. It aims to equip individuals with the necessary skills and knowledge to run a successful business.

6. Management Development Programme: 

This programme is designed to develop the managerial skills of individuals, such as leadership, decision-making, and communication. It provides training on various aspects of management, such as human resource management, financial management, and strategic planning.

Overall, these programmes aim to promote entrepreneurship and provide individuals with the necessary skills and knowledge to start and run successful businesses in India.

Some entrepreneurial development programme are organized by the Small Industries Development Organization (SIDO), Technical Consultancy Organization, NABARD, Entrepreneurship Development Institute of India,(EDII), The National Institute for Entrepreneurship and Small Business Development (NIESBUD), etc.

Rural Entrepreneurship Development Programme (REDP)

A rural entrepreneur is one, who prefers to stay in the rural area and contribute to the creation of local wealth using local resources. Entrepreneurship in rural areas is usually community-based and has strong extended family linkages and a relatively large impact on the rural community.

The rural Entrepreneurship Development Programme (REDP) is one such programme that aims at promoting entrepreneurship and self-employment avenues in rural areas. It also provides gainful employment to surplus labour in the agriculture sector as well as to landless laborers to supplement their income. Problems of unemployment and underemployment are widely prevalent in developing countries. 

The promotion of the Non-Farm Sector (NFS) through inculcating entrepreneurship among rural youth plays a crucial role in redressing such problems. Recognizing the importance of the Rural Non-farm Sector (RNFS) comprising small, cottage, and village industries and rural artisans in the faster economic development of rural areas, NABARD had taken several initiatives. The rural Entrepreneurship Development Programme is a major promotional initiative that aims at developing enterprises and creating employment opportunities in rural areas.

Objectives of Rural Entrepreneurship Development Programme (REDP)

 1. To develop entrepreneurial and activity-oriented skills among the educated unemployed rural youth, by assisting voluntary agencies, and non-governmental organizations, with a good track record, in conducting REDP.

 2. To set up small/micro enterprises, for the creation of sustainable employment and income opportunities in rural areas, in a cost-effective manner.

REDP was supported by NABARD for the last two decades on an experimental basis. NABARD provides necessary guidelines and support including financial grant assistance to the facilitators in undertaking the REDPs.

Positive Outcome from Entrepreneurship Development

1. Entrepreneurship development generates more income and employment for men and women.

2. New products and services may be created in the process.

3. New and unexplored fields of activity may be subject matter for entrepreneurship development.

4. Optimal utilization of resources and facilities and value addition to products and services.

5. Developing the capability of men and women to cope with the impact of globalization.

Phases of Entrepreneurship Development programme

Entrepreneurship development is a process involving a number of phases and steps. These are presented below:

1. Stimulatory Phase: 

The stimulatory phase includes all activities that generate awareness and willingness among the specific target group. Important activities include under this stage are:

1. Generating entrepreneurial awareness in the community. 

2. Identifying and selecting potential entrepreneurs through the scientific method.

 3. Motivational training for a new entrepreneur.

 4. Improving their knowledge and skills in modern management. 5. Developing their technical competency relevant to the product.

 6. Helping them to develop project reports.

 7. Making available techno-economic information and product profile.

 8. Evolving locally suitable new products and processes.

 9. Recognition of entrepreneur.

2. Support Phase: 

The support phase includes all such activities that help entrepreneurs to establish and run their enterprises. These are:

1. Registration of the unit.

2. Arranging finance for both fixed capital and working capital. 

3. Providing land, shade, power, water, etc.

4. Guidance for selecting and obtaining machinery.

5. Helping in the purchase of plants and machinery.

6. Getting licence/import license.

7. Providing common facilities.

8. Granting tax relief and other subsidies

9. Providing management consultancy

10. Assisting in the marketing of products

11. Providing information related to the industry

3. Sustaining Phase: 

Activities in sustaining phase are those that help the entrepreneur in the continued, efficient, and profitable running of the enterprise, These include:

1. Helping in modernization, diversification, and expansion or product substitution.

2. Additional financing for full capacity utilization.

3. Help in diagnosing the cause of the failure or low production or profit.

4. Change or modification in legislation or policy affecting marketing.

5. Quality testing and improvement services.

6. Creating need-based common facilities for both production and marketing units.

The process of entrepreneurship development does not end with sustain phase. It is a continuous cycle.

Advantages and Benefits of  Entrepreneurship Development Programme 

1. Economic Growth: 

EDP is an industrialization instrument and a means of achieving economic growth through entrepreneurship.

2. Balanced Regional Growth:

EDP promotes economic activity in diverse locations by offering training and other assistance to residents.

3. Gets rid of poverty and unemployment:

EDPs open the door to self-employment and entrepreneurship professions.

4. Optimal utilization of local resources:

Training and teaching entrepreneurs can help a country make the best use of its natural, financial, and human resources.

5. Successful New Unit Launch:

EDP provides the motivation, knowledge, and skills required for the enterprise’s effective launching, management, and growth.

6. Encourages Next-Generation Entrepreneurs:

EDP, by inculcating entrepreneurship capabilities and expertise in the trainees, developed a new generation of entrepreneurs who hitherto were not entrepreneurs.

Roles of Entrepreneurship Development Programme 

1. Ends Poverty and Unemployment:

Poverty and unemployment are major issues in most developing countries, including India. Unemployed persons can benefit from entrepreneurship development programs that encourage them to pursue self-employment and entrepreneurship as a profession.

2. Balanced Regional Development: 

Effective entrepreneurial development programs help in the promotion of industrialization and the reduction of economic power concentration. Because small-scale entrepreneurs can set up shops in remote locations with little financial means, they can contribute to the achievement of balanced regional development.

3. Prevents Industrial Settlements: 

Urban cities are overcrowded, which leads to industrial slums. Decentralization of industries is essential when migrating industries. Entrepreneurship development programmes support the eradication of industrial colonies by providing entrepreneurs with various schemes, incentives, subsidies, and infrastructural facilities to establish their own businesses in all non-industrialized areas.

4. Enhancing Locally Available Resources: 

Entrepreneurship development programmes can enable entrepreneurs in utilizing these resources by training and educating them.

5. Reduces Social Tension: 

Every young person is frustrated if he does not find work after finishing his studies. Youth potential must be channeled into self-employment careers to assist the government in defusing social tensions and unrest among the young, which is possible through entrepreneurship development programmes.

6. Capital Formation:

Entrepreneurs are the organizers of factors of production who use their own and borrowed funds to start new businesses. This all leads to the capital formation process.

FAQs

Conclusion 

Entrepreneurship Development Programme (EDP) is a program designed to assist individuals in strengthening their entrepreneurial motive and acquiring the skills and capabilities necessary for playing their entrepreneurial role effectively. The Industrial Service Institute (ISI) under the Department of Industrial Promotion launched the EDP for stimulating economic growth, dispersing industries to rural areas, and promoting the processing of local raw materials. 

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