Rajesh Dhake

ENTREPRENEURSHIP
DEVELOPMENT
&
SMALL BUSINESS
MANAGEMENT

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 Rajesh Dhake
Contents

1. Approaches to Entrepreneurship Development Training ........................................ 3

1.1 Training Methods...................................................................................................... 3
1.2. Designing an Entrepreneurship Training Programme ............................................. 4
2. Chronology of Events in Emergence of Entrepreneurship Development ............... 5
3. Apex Institutions Promoting Entrepreneurship Development in India .................. 7
3.1 Support Networks ..................................................................................................... 8
4. Measure for Entrepreneurship Development in India.............................................. 9

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1. Approaches to Entrepreneurship Development

Training
Many government in developing countries recognize that small and medium-scale
industries continue to play an important role in their socio-economic development. There
is growing interest in developing programmes for stimulating encouraging
entrepreneurship development in these countries with this the entrepreneur becomes the
focal point in economic activities, especially in developing countries.

The most commonly adopted approach to entrepreneurship development is training.

There are various approaches to entrepreneurship development which policy makers
planners, trainers and other officials involved in development may choose. This
development could be achieved within the conceptual framework in which the various
strategies and policies of an entrepreneurship development programme are evolved or
formulated. Entrepreneurship development should be viewed in the total perspective and
should integrate entrepreneurial training, provision of incentives, consultancy services,
sectoral development and other essential strategies of intervention. There are at least
four major approaches:

1. Develop and arrange the course content by analyzing needs and stating outcomes.
2. Choose the appropriate training methods.
3. Consider the subject area, the nature of learning, the trainee population, the trainers
themselves and time and material factors.
4. Achieve training objective.

1.1 Training Methods

Achievement motivation training is designed to increase the achievement orientation of

the trainees with the idea that positive behavior, such as striving for excellence, learning
from feedback and moderate risk-taking, is initiated. Likewise, it strengthens the ability of
an individual to generate alternative as well as to solve problems creatively. It also
develops the ability to define and set goals in life. As such, entrepreneurship
development is viewed as behavior oriented.

One of the factors contributing to the success of this training intervention in

entrepreneurship development is that it is based on experience. In entrepreneurship
training learning by discovery is usually preferred. Here, one is able to learn from one’s
actions and behaviour in training, learning by discovery is usually preferred. Here, one is
able to learn from one’s actions and behaviour in training. Thus, the learning process
becomes a positive reinforcement.

Although there are some variations of and/or models for this intervention, the overall
objective of this aspect of training is making the entrepreneur more professional. The
training intervention may also take the form of management skills development. Most
entrepreneurs lack managerial skills and techniques needed to deal with the
management problems of the enterprise. Therefore, for any entrepreneurship
development programme to succeed, it is important not only to motivate the trainees but
also to provide them with all the skills necessary to run their business successfully.

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1.2. Designing an Entrepreneurship Training Programme

As mentioned earlier, designing the training programme involve setting training

objective, development the course content and choosing appropriate training methods.
The programme design is prescribed by the training needs of the target clientele. Theses
objectives should be stated clearly, be trainee-centered, employ practically and be
concerned with ends rather than means. When objectives are set, the course content
can be developed. The elements of content are knowledge, habits, skills and control of
emotion. The material to be included should be accorded priority according to the goal to
be achieved.

Well-conceived and well-directed training can always produce an outstanding

entrepreneur. In addition, today’s world with its burgeoning population offers limited
avenues of employment. This makes entrepreneurship all the more necessary for self -
employment and small-business.

How does one acquire entrepreneurial skills, develop entrepreneurial vision and become
an entrepreneur? Is there an institution which provides training in entrepreneurship? The
Entrepreneurship Development Institute of India, popularly known as EDI, is one such
training school, a pioneer in the field, recognised world over.

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2. Chronology of Events in Emergence of

Entrepreneurship Development
1969
The birth of training efforts for entrepreneurial promotion in the country was purely on
indigenous initiative i.e. the Technician

Scheme launched by two state-level agencies of Gujarat viz. Gujarat Industrial

Investment Corporation (GIIC) and Gujarat Industrial Development Corporation (GIDC)
dealing with credit and infrastructure facilities respectively. The scheme visualized 100%
finance without collaterals based entirely on the viability of the project and the
competence of the person-behind-the project i.e., the entrepreneur. A large number of
people took advantage of this scheme.

1970
The real gain of the scheme was the realisation that there was vast entrepreneurial
potential available in the country that could be tapped and developed through
appropriate training intervention. This led GIIC, along with other state-level agencies like
GIDC, Gujarat State Finance Corporation and Gujarat Small Industries Development
Corporation to conceptualise and launch a 3-month training programme known as
‘Entrepreneurship Development Programme’ (EDP). The programme was successful in
terms of its results as 40 out of 45 trainees (89%) started their own small scale
industries.

1978
By this time, the success story of the Gujarat experiment spread across the nation and
the Ford Foundation encouraged the Gujarat team to test out EDP strategy in a few less
developed states.

1979
With a large number of programmes proposed, a need for having a separate state-level
organisation became imperative. And so the Gujarat Centre for Entrepreneurship
Development (CED) came into existence.

1981
After realising the effectiveness of EDP, many development agencies in other parts of
the country organised their own EDPs. Gujarat CED being a premier institution provided
professional support to a few of these.

1982
With increasing number of organisations seeking such support from Gujarat CED,
national financial institutions and banks felt it necessary to set up a national resource
and support organisation committed to entrepreneurship education, training, research
and capacity building.

1983
The idea took a concrete shape when the Industrial Development Bank of India, the
apex financial institution which had shown keen interest in the Gujarat experiment,
joined hands with other developmental banks. They jointly established a national level
organisation, Entrepreneurship Development Institute of India, on April 20, 1983.

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2.1 Conceptual Matrix Of Entrepreneurship Development In India

EAC, STST, EDP, TEDP, FDP, eZINE EDC, STED STEP, TBI,
PORTAL BP INTL

Target Group Masses Specialized Selected Large Hand Picked

Out Come Not Defined Defined Loose Defined Defined

Skills Networking, Specialized Specialized Both Both ++++

Required Managerial

Career Existing Mobility Expert Good Better To Best

Prospect Possible

Legend:

EAC: Entrepreneurship Awareness Camps

STST:
PORTAL:
EDP: Entrepreneurship Development Programme
TEDP: Technical Entrepreneurship Development Programme
BP:
FDP: Faculty Development Programme
eZINE
EDC: Entrepreneurship Development Centers
STED:
STEP:

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3. Apex Institutions Promoting Entrepreneurship

Development in India
National Science & Technology Entrepreneurship Development Board (NSTEDB)

Objective: To promote knowledge based technology driven innovation focused

enterprises

It has under its umbrella the following institutions:

Institutional Capacity Support

Mechanisms Building Services
ƒ EDCs ƒ EACs ƒ PORTAL
ƒ STEPs ƒ EDPs ƒ E-ZINE
ƒ TBIs ƒ TEDPs ƒ VIDEO
ƒ STEDs ƒ FDPs ƒ NTWRK
ƒ STST ƒ BUS PLN
ƒ OLPE ƒ UR IDEA

Entrepreneurship Development Institute of India (EDI)

Entrepreneurship Development Institute of India (EDI), a wholly autonomous and not-for-

profit institution, set up in 1983, is sponsored by apex financial institutions, the Industrial
Development Bank of India (IDBI), the Industrial Finance Corporation of India (IFCI), the
Industrial Credit and Investment Corporation of India (ICICI) and the State Bank of India
(SBI).

The Government of Gujarat pledged twenty three acres of land on which stands the
majestic and sprawling EDI campus.

Mission of EDI

The EDI has been spearheading entrepreneurship movement throughout the nation with
a belief that entrepreneurs need not necessarily be born; they can be developed through
well conceived and well directed activities. In consonance with this belief, the mission of
EDI is to:

• augment the supply of new entrepreneurs through educational training,

• produce multiplier effect on opportunities for self employment,
• improve the managerial capabilities of small scale industries,
• contribute to the dispersal of business ownership and thus expand the social
base of Indian entrepreneurial class,
• contribute to the creation and dissemination of new knowledge and insight in
entrepreneurial theory and practice through research,
• augment the supply of trainer-motivators for entrepreneurship development,
• participate in institution building efforts,
• sensitize the support environment to facilitate potential as well as existing
entrepreneurs to establish & manage their enterprises successfully,
• promote micro-enterprises at rural level,
• inculcate the spirit of ‘Entrepreneurship’ in young generation,

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• collaborate with similar organisations in India and other developing countries to
accomplish the above objectives.

3.1 Support Networks

SR. AREA OF STATE LEVEL NATIONAL LEVEL

NO. ASSISTANCE
1. Product SISI, DIC/DI, IIC, TCO, SFC, SIC, CSIR, Directorate Of Export
Identification BANK Promotion, Indian Investment
Centre, Investment Promotion
Board, NRDC

2. Registration & DIC, Chief Inspector Central Excise, Director General

Licences Of Factories, Directorate Of Drugs
Control Admn., Electricity Board,
Geology & Mining Dept., Small
Industries Corpn., Pollution Control
Board, Local Authorities, State
Trading Corpn.
Foreign Trade, Nsic, Registrar
Of Companies, Registrar Of
Trade Marks, Directorate
General Of Supplies & Disposal

3. Finance BANKS, SFC, IIC, LEASE ICICI, IDBI, IFCI, SIDBI

& FINANCE CO.
4. Technical DIC, TCO, PVT. CONSULTANT,
RRL, Prototype Development
Centre, Specialised Institutions,
(Leather Ceramic Glass, Food),
SISI, ETC.
CIPET, CSIR, NRDC, NSIC,
Central Institute Of Tools
Design, Polytechnology Transfer
Centre

5. Training IED/CED, SISI, TCO, DIC, EDC, CIPET, Industrial Research

STEP Laboratory, NISIET, NIESBUD,
EDI
6. Infrastructure DIC/DI, IDC, LOCAL AUTHORITIES -----
Facilities
7. Raw Material DIC, SIC, STC MMTC

8. Plant & Machinery DIC, IIC, SFC, IEB, BANK, TCO, NSIC, Director General Foreign
SISI Trade, Industry Associations
9. Marketing DIC, TCO, SEC, SIC Directorate Of Export Promotion,
Export Councils, Director
General Foreign Trade, IIFT.
10. Product DIC, Industrial Research Labs, Bureau Of Indian Standards,
Standardisation Directorate Of Industries, Regional Registrar Of Trade Marks, SISI,
Research Labs. Central Institute Of Tools
Design, Council Of Scientific &
Research, NRDC.

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4. Measure for Entrepreneurship Development in India

{ The first requirement is to change the mindset.
{ Entrepreneurship to be introduced in education.
{ Need for resource material and handbooks.
{ Entrepreneurship and Business Development Cell (EBDC) to be established on
campuses.
{ Faculty Development Programmes.
{ Counselling & guidance cells for VRS employees.
{ Fellowships/ leave with half pay for young employees having feasible business
plans.
{ Special incentives, hassle-free credit to be given to increase female participation
in business.
{ Industry- academia linkage to be strengthened.

EBDC on Campuses

NEDB to set up Entrepreneurship and Business Development Cells on Campuses.

Purpose:
o To create awareness for entrepreneurship as preferred career option and
inculcate entrepreneurial values & skills among students

Plan:
o To start in select universities & colleges in different zones of the country, support
may continue up to 4 yrs.

Functions of EBDCs:

{ Organise Entrepreneurship Awareness Camps (EACs), Workshops and EDPs.

{ Sensitise environment and develop network.
{ Conduct potential surveys to develop a basket of viable business opportunities.
{ Act as focal point for information dissemination on opportunities, market,
technologies, etc.
{ Conduct need-based research studies.
{ Organise performance improvement and growth programmes for entrepreneurs
to strengthen local entrepreneurial base.
{ Any other activity necessary for inculcating entrepreneurship in students’
community.

What needs to be done to benefit more?

{ Faculty Development Programmes for university and college teachers.

{ Teaching Material Development for students & Handbook for teachers.
{ Organise EACs and EDPs.
{ Finally, introduction of Entrepreneurship in regular curricula.
{ Efforts to be made at secondary education level as well.

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