CHAPTER NO. - 1-fnl

CHAPTER NO. - 1: 

CHAPTER NO. - 1 CONCEPTUAL FRAMEWORK

DEFINITION OF ENTREPRENEUR: 

DEFINITION OF ENTREPRENEUR According to McClelland : “ An Entrepreneur is someone who exercise some control over the means of production and produce more than what he can consume in order to sell it for individual income.” According to J.B. : “Entrepreneur is an economic agent who unites all mean of production, land, labour & capital to produce product & by selling them into market. He pays rent on land, wages to labour, interest on capital & what remains is his profit.”

FUNCTIONS OF ENTREPRENEUR: 

FUNCTIONS OF ENTREPRENEUR An Entrepreneur is an opportunity seeker. He/she is also the organizer and coordinator of the agents of production. He/she has to execute many a good functions while establishing a small scale enterprise. However, the main functions of the entrepreneurs are discussed further.

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Cont…… IDEA GENERATION:- This is the most important function of the entrepreneur. Idea generation can be possible through the vision, insight, observation, experience, education, training and exposure of the entrepreneur. Idea generation precisely implies product selection and project identification. Idea can be generated through environment scanning and market survey.

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Cont…. DETERMINATION OF OBJECTIVES:- The next function of the entrepreneur is to determine and lay down the objectives of the business, which should be spelt out on clear terms. In other words, entrepreneur should be very much clear about the following things: a). The nature of Business. b). The type of Business.

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Cont…. RAISING OF FUNDS:- Fund raising is the most important function of an entrepreneur. All the activities of a business depend upon the finance and its proper management. It is the responsibility of the entrepreneur to raise funds internally as well as externally. In this matter, he/she should be aware of the different sources of funds and the formalities to raise funds. He should have the full knowledge of different government sponsored schemes.

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Cont… PROCUREMENT OF RAW MATERIALS:- Another important function of the entrepreneur is to procure raw materials. Entrepreneur has to identify the cheap and regular sources of supply of raw materials, which will help him to reduce the cost of production and face the competition boldly.

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Cont… PROCUREMENT OF MACHINERY:- The next function of the entrepreneurs is to procure the machineries and equipments for establishments of the venture. While procuring the machineries, he/she should specify the following details: a). The details of technology. b). Installed capacity of the machine. c). Name of the manufacturers and suppliers.

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Cont.. d). Whether the machines are indigenously made or foreign made. e). After sales- service facilities. f). Warranty period of the machineries. g). Life of the machinery.

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Cont… MARKET RESEARCH:- The next function of the entrepreneur is market research and product analysis. Market research is the systematic collection of data regarding the product which the entrepreneur wants to manufacture. Entrepreneur has to undertake market research persistently in order to know the details of the intending product, i.e the demand for the product, the supply of the product, the price of the product, the size of the customers, etc… while starting an enterprise.

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Cont… RECRUITMENT OF MANPOWER:- Entrepreneur has to perform the following activities while undertaking this function: a). Estimating manpower need of the organization. b). Laying down of selection process. c). Devising scheme of compensation. d). Laying down the rules of training and development.

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Cont… IMPLEMENTATION OF THE PROJECT:- Entrepreneur has to work on the implementation schedule or the action plan of the project. The identification project is to be implemented in a time-bound manner. All the activities from the conception stage to the commission stage are to be accomplished by him/her in accordance with the implementation schedule to avoid cost and time over run, as well as competition.

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Cont… To conclude with all these function of the entrepreneur can precisely be put into the following categories:- a). Innovation b). Risk Bearing c). Organization and Management

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Cont… INNOVATION:- The introduction of new combination of factor of production, according to J.A. Schumpter , may occur in any one of the five forms: a). The introduction of a new product or new quality of an existing product in the market.

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Cont… b). Introduction of new methods of production or distribution. c). Opening of new market. d). New forms of organization of industry. e). The discovery of a new source of supply of raw material.

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Cont… RISK BEARING:- Entrepreneur as an agent who buys factors of production at certain prices in order to combine them into a product with a view to selling it at uncertain price in future. Thus, they are ‘risk-bearing’ agents of production. An entrepreneur assumes the responsibility for loss that may arise due to unforeseen contingencies. He/she guarantee interest to creditors, wages to labour and rent to the land holder. After making payments to these persons little or nothing may left for him/ her.

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Cont… ORGANIZATION AND MANAGEMENT:- An entrepreneur brings together various factors or production, organizes them properly and performs the decision making function of administration. He determines the line of business, expansion and growth of the enterprise. As an organization builder an entrepreneur performs planning, coordination and control function.

QUALITIES OF ENTREPRENEUR: 

QUALITIES OF ENTREPRENEUR INITIATION: Given the demand of initiation the entrepreneur takes initiation to start an industry. CONSCIOUSLY WATCHING FOR OPPORTUNITY: He/she, lie a watch dog looks for favorable business opportunities and takes necessary actions accordingly.

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Cont… PERSISTENCE:- He/she is always tenacious to make extra efforts to get rid of obstacles coming in the way of the reaching the goals. He/she will try hard to achieve the goal and will prompt his employee’s try hard. INFORMATION SEEKER:- He/she is ready to learn from the experiences of others and enriches his/her business information to help him/her reach the goal.

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Cont… QUALITY CONSCIOUS: Always puts efforts to excel better than the existing standards of performance. COMMITMENT TO WORK:- Accords the utmost priority to accomplish the work.

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Cont… PROPER PLANNING:- Frames realistic business plans and follows them severely to achieve the objectives. SELF CONFIDENCE:- A strong believes in his strength and weakness. ASSERTIVENESS:- Able to assert his issues, what so ever this might be, in the interest of his/ her enterprise.

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Cont… PERSUASION:- Succeeds in persuading others to do what he/she wants. EFFICIENT MONITORING:- Personally supervisors they want to ensure that the work is accomplish according to the standard set forth. CONCERN FOR EMPLOYEES:- Keeps concern and takes proper action to improve the welfare of the employees working in his/her enterprise.

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Cont… He/ she is energetic, hard working resourceful, alert for new business opportunities, winning to take his/her involving change, interested in expanding scale of business by reinvesting his/her profit, visualizes the likely changes and ready to adopt them.

DIFFERENCE BETWEEN ENTREPRENEUR & MANAGER: 

DIFFERENCE BETWEEN ENTREPRENEUR & MANAGER POINTS ENTREPRENEUR MANAGER 1. MOTIVE The main motive of an entrepreneur is to start a venture by setting up an enterprise. He understands the venture for his personal gratification. While, the main motive of a manger is to render his services in an enterprise already set up by someone else. 2. RISK BEARING An entrepreneur being the owner of the enterprise assumes all risk and uncertainty involved in running the enterprise. A manager as a servant does not bear any risk involved in the enterprise.

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Cont… POINTS ENTREPRENEUR MANAGER 3. REWARDS The reward an entrepreneur gets for bearing risks involved in the enterprise is profit which is highly uncertain. A manager gets salary as reward for the services rendered by him in the enterprise and it is certain and fixed. 4. INNOVATION Entrepreneur himself thinks-over what and how to produce goods to meet the changing demands of the customers. Hence, he acts as an innovator also called a “Change-agent.” But, what a manager does is simply to execute the plans prepared by the entrepreneur. Thus, a manager simply translates the entrepreneur ideas into practice.

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Cont… POINTS ENTREPRENEUR MANAGER 5. QUALIFICATION An entrepreneur needs to possess qualities and qualifications like high achievement motive, high thinking, foresight, risk bearing ability and so on. On the contrary, a manager needs to possess distinct qualifications in terms of sound knowledge in management theory and practice. 6. VENTURE An entre preneur sets an new enterprise or undertake a venture. A manager does not take a new venture and renders services on an existing enterprise. 7. CONTINUTIY Entrepreneurial activities are discontinuous appearing to initiate changes in the production process and then disappearing until another change is initiated. Managerial activities are mainly continuous involving an ongoing co-ordination of business operations.

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Cont… POINTS ENTREPRENEUR MANAGER 8. PRE-REQUISITE In consonance with the entrepreneurial role an entrepreneur need pre-requisite like, mission, creative thinking, risk bearing ability, etc A manager needs a distinctive qualification such as knowledge of human behavior, management theory, etc… because the manager are made not born. 9. STATUS An entrepreneur is the owner of the enterprise. A manager is the servant of the enterprise owned by the entrepreneur.

DEFINITION OF ENTREPRENEURSHIP: 

DEFINITION OF ENTREPRENEURSHIP ACCORDING TO PETER DRUCKER: “Entrepreneurship is neither a science nor an art. It is a practice. It has a knowledge base. Knowledge in entrepreneurship is a means to an end. Indeed, what constitutes knowledge in practice is largely defined by the ends, which

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Cont… are by the practice. Entrepreneurship is not just about making money. It is about imagination, flexibility, creativity, willingness to think conceptually, readiness to take risks, ability to mobilize agents of production and the capacity to see change as an opportunity.”

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Cont… ACCORDING TO HIGGINS : “Entrepreneurship is the function of seeking investment and production opportunity, organizing an enterprise to undertake a new production process, raising capital, hiring labor, arranging for raw materials, finding site, introducing new technique, discovering new source of raw materials & selecting top managers for day to day operations of an enterprise.”

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Cont… ENTREPRENEUR + ENTERPRISE = ENTREPRENEURSHIP (PERSON) (OBJECT) (PROCESS)

BARRIERS OF ENTREPRENEURSHIP: 

BARRIERS OF ENTREPRENEURSHIP ENVIRONMENTAL BARRIERS:- 1). RAW MATERIAL:- Non-availability of raw material required for production of goods, especially during peak season, causes impediment in the growth of the business. In such a situation, competition causes increase in the price of raw material. This problem becomes more severe, if there are alternatives goods or services available in market.

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Cont… E.g .: if the plastic granules required for production of cups are not available then demand can be shift to alternative thermocol cups. Subsequently, it becomes very difficult to bring the consumer back to the product . 2 ). LABOUR:- Human resources have been identified as the most important resources in any organization. Unfortunately, there is always a dearth of the desired manpower in an organization.

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Cont… Either it is because of the lack of skilled labour in the market or because of lack of committed and loyal employees in the organization. 3). MACHINERY:- Good machine are required in the organization for the production of goods. These machines come at a cost and because of rapid technological developments they become obsolete very soon and need to be replaced. This requires a lot of cash in hand which is very difficult to maintain especially in small business organization.

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Cont… 4). LAND & BUILDING:- Acquisition of land and construction of building at a prime location to run the business requires expenditure of large amounts of scarce cash, especially in the cash of small organizations. An alternative approach could be taking land on lease or rent. But this becomes a matter of continuous concern for the entrepreneur.

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Cont… 5). OTHER INFRASTRUCTURE REQUIREMENTS:- Apart from the factors of production mentioned above, there are other infrastructure requirements of the business which when no present in adequate amount can future become a barrier to the growth of business. Any business organization requires some basic infrastructure support like adequate power supply, proper roads, water and drainage facilities etc.

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Cont… FINANCIAL BARRIERS:- Funds are one of the most important components required for the successful running of the business. There are various methods, by which an entrepreneur arranges for funds. e.g.: his own savings, and borrowings from friends and relatives, banks and other institutional bodies that support the new venture. If there is a delay in the release of payments by the source of finance, it causes delay in starting and / or running the business,

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Cont… PERSONAL BARRIERS:- These are barriers that are caused by emotional block of individual. They cause meant obstruction to the individual and lead to the failure of business. Some of the personal barriers have been discussed below: 1). LACK OF CONFIDENCE:- Many people think that they lack what it takes to become an entrepreneur. They look at successful entrepreneur and think that they could new be able to find a successful idea or would be unable to attract

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Cont… The resources required and dismiss the thought of becoming a self employed as irrelevant. They may regard themselves as risk avers and feel that running a business is too risky. They may not feel that they could master all the necessary skills .

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Cont… 2). LACK OF DEPENDABILITY ON OTHERS:- Many entrepreneur aims to gain their additional expertise through the trial and error of experience rather than seeking further personal development or assistance from others. As business grow, they increasingly need to replace the initial, largely informal, management arrangements with more formality. They also need to think more strategically.

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Cont… 3). LACK OF MOTIVATION:- When an individual starts a new business venture, he is filled with enthusiasm and drive to achieve success, but he faced the challenges of real business, bears losses or his ideas don’t work, he loses interest / motivation. This causes further loss of business and the entrepreneur starts withdrawing herself / himself from mainstream competition.

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Cont… 4). LACK OF PATIENCE:- This barrier is more dominant amongst youth entrepreneurs. The desire to achieve success in the first attempt or to become rich instantly is the prime motivating factor of modern youth. They want to achieve instant success and believe it would be a cakewalk. When such desired are hindered by business challenges / problems, they lose interest.

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Cont… 5). INABILITY TO DREAM:- It has been rightly said, “Think big to Achieve big”. Entrepreneurs who are short on vision or become satisfied with what they achieve sometimes lose interest in further expansion / growth of the business, which impedes further growth of the business.

DEVELOPMENT OF ENTREPRENEURSHIP: 

DEVELOPMENT OF ENTREPRENEURSHIP Entrepreneur plays a significant role in economic development of a country. Economic development greatly depends upon entrepreneurial and industrial development. In western countries, entrepreneurs have contributed a great deal in making their country developed. “Entrepreneurship plays a key role in the economic development of a country.”

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Cont… Indeed, entrepreneur is the person who perceives business opportunity and converts it into a viable (Capable of doing what it is intended to do) business plan. Therefore, the entrepreneur is not only launches a venture but also contributes to the objectives of employment creation, output growth, technological up gradation, improvement in the quality of production, export promotion, import substitution and supply of goods at a reasonable price to the customers.

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Cont… Following are the roles of entrepreneur towards the nation’s growth. 1). Role of Entrepreneur as an Innovator in Economic Growth:- The role of entrepreneur as an innovator is considered the most crucial element for acceleration (Process or change is the fact that is getting faster & faster) of economic growth. Entrepreneurship development is getting a position of great importance for tacking (fastening carpets to the floor) ever growing problem of unemployment due to rapid (change is one that happens very quickly) population growth.

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Cont… An entrepreneur is basically an innovator who introduces new combinations of means of production. Development consists of both of carrying out new combinations. A new means of production. An innovator, entrepreneur forces the potentially profitable opportunities to exploit it. He is a risk bearer, problem shooter and gets satisfaction in confronting problem. As an innovator, entrepreneur performs the following activities:

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Cont… Bringing about new combinations. Making use of potential technical knowledge for continuous technological progress. Emphasizing on purposeful and systematic innovation. Implementation of mechanical skills.

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Cont… 2). ROLE OF ENTREPRENEUR IN GENERATION OF EMPLOYMENT OPPORTUNITIES:- Entrepreneur plays a significant role in generation of employment opportunities. As we all know, entrepreneurship is a purposeful activity indulges in initiating, stimulating (Effect on the economy), promoting and maintaining economic activities for production and distribution of goods and commodities, the person behind these economic activities is, therefore, a critical factor as well as an integral component of socio-economic transformation.

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Cont… The development strategy of our country confronts (if you are confronted with a problem, task or difficulty you have to deal with it) two important problems – unemployment and poverty of the masses. These problems can be effectively minimized by activating the latent (something which is hidden) human potentials through entrepreneurship. This leads to the creation of self-employment and wage-employment avenues for large number of people.

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Cont… 3). ROLE OF ENTREPRENEUR IN COMPLEMENTING (that typically follow it) & SUPPLEMENTING (things are added to something in order to improve it) ECONOMIC GROWTH :- Economic development and growth of a country depends to great extent upon effective entrepreneurship. Entrepreneur plays a crucial role for the creation of new small enterprises has energize the economic structure. Through constant creativity, businessmen / entrepreneur assures a strong economy and raising national income. Thus, the role of entrepreneur is important, as it not only complements but also supplements the economics growth of the country. To be clearer, entrepreneurs initiate, increase and sustain the economic growth in the following ways:

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Cont… Generation of employment. Capital formation. Increase in per capita income. Improvement in standard of living. Growth of infrastructural facilities. Backward and forward linkages. Balanced regional growth.

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Cont… a). Generation of Employment:- Entrepreneur generate employment both directly and indirectly. Directly an entrepreneur is the self employed person. Indirectly by setting up a large & small scale business they offer jobs to others. b). Capital formation:- Entrepreneur mobilize the idle savings of the public through the issues of industrial securities. Investment of public savings in industry results in productive utilization of national resources. Rate of capital formation decreases which is essential for rapid economic growth.

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Cont… c). Increase in per capita income:- Entrepreneur locate & exploit (treating you unfairly by using your work or ideas) the opportunities. They convert the latent and idle resources into national income & wealth in the form of goods & services & increases net national product & per capita income. d). Improvement in standard of living:- Entrepreneur setup industries which remove the scarcity of essential commodities & introduce new products. Production of goods on mass scale help to avail the goods to the different customers at a most cheaper cost & their way it raises the standard of living.

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Cont… e). Balanced regional growth:- Entrepreneur in public & private enterprises help to remove regional disparities (it spread over a wide area) in economic development. They set up industries in backward areas to avail of the various concessions & subsidies offered by the government. Due to this reason there is possibility of balanced regional growth. f). Backward & forward linkage:- An entrepreneur initiate change which has a chain reaction, setting up of an enterprise has several backward & forward linkages.

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Cont… 4). ROLE OF ENTREPRENEUR IN BRINGING ABOUT SOCIAL STABILITY AND BALANCED REGIONAL DEVELOPMENT OF INDUSTRIES:- In each and every country, entrepreneur is considered as valuable human resources. The responsibility of social stability lies on his shoulders. Entrepreneur as a catalyst (you can describe a person) of change, tries to bring about social stability in the following ways:-

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Cont… Absorption (larger group) of workforce in industries. Alleviation (suffering or unpleasant condition) of poverty. Glorification (to indicate that something is less important) of self-help Checking expansion of monopolies Equitable (fair & reasonable) distribution of income Creation of social infrastructures Supply of qualitative goods and services.

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Cont… President Dr. APJ Abdul Kalam also strongly favor the banking system which can provide venture capital right from the village level to prospective entrepreneurs for undertaking new enterprises. According to him there is a need to identify marketable product and enhancement of purchasing power among the people. Thus, entrepreneurs can help economy not only by creating sufficient job opportunities but also bringing about social stability and balanced regional development.

DEFINITION OF RURAL ENTREPRENEURSHIP: 

DEFINITION OF RURAL ENTREPRENEURSHIP Rural industries are generally associated with agriculture. According to the Khadi & Village Industries Commission (KVIC), “Village Industry or rural industry mans any industry in rural area, population of which does not exceed 10,000 or such other figure which produced any goods or renders any services with or without use of power and in which the fixed capital investment per head of an artisan or a worker does not exceed a thousand rupees”.

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Cont… The definition of village industry has been recently modified by the government so as to enlarge its scope. Accordingly, any industry located in rural area, village or town with a population of 20,000 and below and an investment of Rs. 3 crores in plant and machinery is classified as a village industry. All the village industries have been grouped into seven major categories as follow:-

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Cont… Mineral – based industry. (e.g.: such as salt, sulphur that is formed naturally in rocks and in the earth) Forest – based industry. (it is a large area where trees grow close together) Agro – based industry. (which related to agriculture or combined with another activity) Chemical – based industry. Engineering industry. Textile industry. Service industry.

NEED FOR RURAL ENTREPRENERUSHIP: 

NEED FOR RURAL ENTREPRENERUSHIP The need for rural entrepreneurship for developing industries in the rural areas is imbued (feeling or quality they become filled with it) with multiplicity of justifications as listed below: a). Rural industries being labor intensive have high potential in employment generation. Thus, they serve as on antidote (difficult or unpleasant situation helps you to overcome the situation) to the widespread problem of disguised unemployment or under employment stalking (keeps following or contacting someone else) the rural territory ( it is land which

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Cont… Is controlled by a particular country) b). By providing employment, these industries have also high potential for income generation in the rural areas. These, thus, help in reducing disparities (between two or more things) in income between rural and urban areas. c). The industries encourages dispersal (spreading of things over a wide area) of economic activities in the rural areas and thus, promote balanced regional development .

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Cont… d). Development of industries in the rural areas also helps build up village republics. e). Rural industries also help protect the art and creativity, i.e. the age-old rich heritage of the country. f). Rural industrialization fosters economic development in rural areas. This curbs (something you control it and keep it within limits) rural – urban migration, on the one hand, and also lessens (it becomes smaller in size) the disproportionate growth in the cities, reduce growth of slums (poor area) social tensions.

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Cont… g). Last but not least rural industries being environment friendly lead to development without destruction (it is the act of destroying something)

HOW TO DEVELOP RURAL ENTREPRENEURSHIP: 

HOW TO DEVELOP RURAL ENTREPRENEURSHIP Establishing an industry and, thereby developing entrepreneurship is not one – man activity. In fact, it involves multi – pronged (approach has two or three parts) activities. Though the answer to the question how two develop entrepreneurship lies in the solutions of the problems faced in this regard, yet the following measures are suggested for developing entrepreneurship in the rural areas in the country.

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Cont… a). Raw material is must for any industry. However, the non-availability of raw material accompanied by their prohibitive (it is so high that many people cannot afford it) cost has weakened (it becomes less strong or less powerful) the viability (capable of doing what it is intended to do) of these industries. Past experience bears evidence (it is anything that you see, experience, etc.) that rural industries with employment potential cannot be sustained (to describe the use of natural resources when this use is kept at a steady level) for long unless a strong raw material base is created in rural areas itself.

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Cont… b). Finance is considered as lubricant (it is a substance which you put on the surfaces or parts of something) for setting up and running an industry. Funds, therefore, need to be made available on time at soft terms and conditions to those who really need it. c). In order to solve the problem of marketing for rural industries, common production-cum-marketing centers need to be set up and developed with modern infrastructure facilities, particularly, in the areas having good production and growth potential.

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Cont… This would help in promoting export business, on the one hand, and bringing the buyers and sellers is close interaction avoiding middleman in between them on the other hand. d). Our peculiarity (something has is a strange or unusual characteristics or habit) of rural entrepreneurs is the that most of them join their entrepreneurial carrier not by choice but by chance. Lack of aptitude and competency on the part of such entrepreneurs makes the units sick. Hence, there is a need to develop entrepreneurial attitude and competencies among the prospective entrepreneurs through the training interventions.

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Cont… e). One effective way to include the entrepreneurial expertise and attitude may be imparting entrepreneurial education in the school, colleges and university. f). Sometimes the real problem in setting industries is not the non- availability of facilities, but non-awareness of facilities whatever is available. The need is, therefore, to disseminate (information or knowledge) about all what is available to provide to the entrepreneurs to facilitate them in setting up industries.

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Cont… g). Proper provisions need to be made to impart the institutional training to orient (yourself to a new situation) the entrepreneurs in specific product and traders so that the local resources can be properly.

EDII (ENTREPRENEURSHIP DEVELOPMENT INSTITUTE OF INDIA): 

EDII (ENTREPRENEURSHIP DEVELOPMENT INSTITUTE OF INDIA) After the second world war, concern for economic development became all pervasive (especially something bad). There was a growing concern for economic development and this strengthened (they become more powerful) interest in entrepreneurship with primary focus on exploring practical measures to augment (something means to make it larger or more effective) the supply of entrepreneurs, i.e. persons with competence and aptitude to initiate, nurture (you care for it while it is growing) and expand industrial enterprise.

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Cont… This resulted in the belief in education and training to inculcate (an idea or opinion in someone mind) and develop entrepreneurial capabilities in people so that they could set up their own enterprise. Subsequently, programmes directed towards this goal were conceptualized. The birth of training efforts for the promotion of entrepreneurship in the country was purely an indigenous (things belong to the country in which they are found) initiative, i.e. the Technician Scheme launched in the year 1969 by two state level agencies of Gujarat. The scheme visualized 100% finance without collaterals (is money or property which is used as a guarantee that someone will repay a loan)

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Cont… A large number of people took advantage of this scheme. The real gain of the scheme was the realization that there is vast entrepreneurial potential available in the country that could be tapped and developed through appropriate training intervention. This led the Gujarat Industrial Investment Corporation (GIIC), along with other state-level agencies to conceptualize, mount (a campaign or event) and develop, in 1970, a 3-month long training programme known as Entrepreneurship Development Programme (EDP).

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Cont… However, with the number of programmes increasing, the need for having a separate state level organization to look into selection, training and development of first – generation entrepreneurs was strongly felt (feel). Thus, the Gujarat Centre for Entrepreneurship (CED), the first of its kind in the country, came into existence in 1979 with the support of Government of Gujarat and the industrial promotion and assistance agencies in the state.

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Cont… By this time, the success story of Gujarat experiment spread far and wide and the Ford Foundation encouraged the Gujarat team to test out EDP strategy in a few less developed states like Rajasthan, Assam, etc. several development agencies in other parts of the country mounted (police or soldiers ride horses when they are on duty) their own EDPs and Gujarat CED provided professional support to a few of these. With increasing number of organizations seeking such support from Gujarat CED, it was felt necessary to set up a National Resource Organization committed to entrepreneurship education, training and research.

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Cont… EDII – Entrepreneurship Development Institute of India came into existence in the year 1983. EDII – Entrepreneurship Development Institute of India was set up as an autonomous (organization or group governs or controls itself rather than being controlled by anyone else) body under the Societies Registration Act on April 20, 1983.

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Cont… MISSION: An acknowledged national resources institution, EDI is committed to entrepreneurship education, training and research. The institute strives to provide innovative training techniques, competent faculty support, consultancy and quality teaching & training material. EDII Aims at: 1). Creating a multiplier effect on opportunities for self-employment. 2). Augmenting (something means to make it larger) the supply of competent entrepreneurs through training. 3). Augmenting the supply of entrepreneur trainer – motivator.

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Cont… 4). Participating in institution building efforts. 5). Inculcating (an idea or opinion in someone’s mind) the spirit of Entrepreneurship in youth. 6). Promoting micro enterprises at rural levels. 7). Developing and disseminating (information means to distribute) new knowledge and insights in entrepreneurial theory and practice through research.

EDPs (ENTREPRENEURSHIP DEVELOPMENT PROGRAMMES): 

EDPs (ENTREPRENEURSHIP DEVELOPMENT PROGRAMMES) An entrepreneur is the person with a vision with the drive and with the ability to bear risk. He is the “spark plug” who transforms the economic scene. Hence, it is said that an economy is an effect for which entrepreneurship is the cause. Entrepreneurship development has, therefore, become a matter of great concern in all developed & developing countries all over the world. But, the real problem is how to develop entrepreneurship development programmes (EDPs) are deemed to offer the solution to this problem.

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Cont… Competencies are underlying characteristics of the entrepreneurs which result in superior performance. Then, the crucial question arises is whether these characteristics are in born in the entrepreneurs or can be induced and developed? In other words, whether entrepreneurs are born or made? Behavioral scientists have tried to seek answers to these questions.

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Cont… Objectives of EDPs:- 1). Develop and strengthen their entrepreneurial quality, i.e. motivation or need for achievement. 2). Analyze environment set up relating to small industry and small business. 3). Select product. 4). Formulate project for the product.

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Cont… 5). Understand the process involved in setting up a small enterprise. 6). Know the source of help and support available support available for starting a small-scale industry. 7). Acquire the necessary managerial skills required to run a small enterprise. 8). Appropriate the needed entrepreneurial discipline.