Evaluation of EDP

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    ENTREPRENEURSHIPDEVELOPMENT

    PROGRAMME- PHASES &EVALUATIONS

    Last Group(56,57,58,59)

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    ENTREPRENEURSHIPDEVELOPMENT Entrepreneurship Development is one of

    the key elements for promotion of microand small enterprises, particularly, the

    first generation entrepreneurs

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    Entrepreneurshipdevelopment program Entrepreneurship Development Program

    means a program designed to help aperson in strengthening his

    entrepreneurial motive and in acquiringskills and capabilities necessary forplaying his entrepreneurial roleeffectively

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    Objectives

    The basic objectives of anEntrepreneurial Development Programcan be summarized as follows:

    To develop and strengthen thereentrepreneurial quality/motivation

    To analyze environment relating to small

    industry and small businessTo select project or product.

    To formulate project.

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    Cont

    Train motivated individuals towardsentrepreneurship

    Develop their business understanding &

    skills and empower them toindependently establish and managesuccessful enterprises

    EDP covers the basics of identification,setting up and management ofbusinesses to meet the needs ofupcoming as well as existing

    entrepreneurs

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    Cont

    To understand the process andprocedure of setting up of smallenterprise.

    To know and to influence the source ofhelp/support needed for launchingenterprise.

    To acquire the basic managerial skills.To know the pros and cons of being an

    entrepreneur

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    EDP, For Whom ?

    Persons who want to start or grow theirown businesses or utilize theentrepreneurship learning within an

    Organization as Intrapreneurs. Persons wanting to create self-sustaining

    social service ventures.

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    Most of the officials has concluded thatentrepreneurship developmentprograms have fulfilled expectations--

    meeting most cost-benefit criteria--specifically, and present variouscorrective measures for streamlining theprocess of implementation of theseprograms.

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    Phases of EDP

    An EDP consists of following three broad phases:

    a) Pre training phase

    b)Training phase

    c) Post training phase (Follow-up)

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    A.) Pre-training Phase

    The activities and preparations required tolaunch the programme come under this phase.

    It includes:i. Designing of Course Curriculum or Contents.

    ii. Exploring & Selecting appropriate faculty and resourcepersons.

    iii. Insertion of advertisement.

    iv. Screening & selection of potential entrepreneurs.

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    B.) Training Phase

    The main objective of this phase is to bringdesirable change in the behaviour oftrainees.

    The behavioural changes that need to bemeasured and monitored through the trainingprogramme are :

    a) Raising the motivation level of entrepreneurs.

    b) Developing a goal directed behaviour pattern.

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    c) Raising positive thinking & belief.

    d) Arousing and raising change oriented innovative

    psyche.

    e) Developing a high degree of self confidence.

    f) Developing a psyche of responsibility seeker.

    g) Developing a strong sense of perseverance &commitment.

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    C.) pOst-training or follow up phase

    This phase involves the assessment to judge

    how far the objectives have been achieved.

    The purpose behind EDP follow-up is to:

    a) Review the pre-training work.b) Review the process of training programme.c) Review past training approach.

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    Selecting Area

    Techno-Economic survey of the area and Introduction of EDP to the Community

    Prepare PFS for selected types of industries

    Revision of Curriculum

    Advertising of EDP training course

    Symposium

    Selecting Participants

    EDP training

    Follow-up

    Post-training Assistance

    Fig: EDP flow chart

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    Evaluation of EDP

    Evaluation of EntrepreneurshipDevelopment Programs assesses theefficacy, degree of success, and the

    contribution of entrepreneurshipdevelopment programs (EDPs) in India

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    SELF-EMPLOYMENT AND ENTREPRENEURSHIPDEVELOPMENT PROGRAMMES

    Integrated Rural DevelopmentProgramme:

    IRDP aims at providing income

    generating assets and self-employmentopportunities for the rural poor.Assistance under IRDP is given to targetgroup of rural poor belonging to familiesBelow Poverty Line (BPL), in the form ofsubsidy by the Government and termcredit by financial institutions.

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    CRITERIA FOR ALLOCATION OF FUNDS TO THESTATES

    Allocation of funds to States is beingmade by the Central Government inproportion to the poverty levels in each

    State on the basis of official estimates ofthe Planning Commission.

    These official estimates of poverty arearrived at by the Planning Commissionbased on the National Sample SurveyOrganization Consumer ExpenditureSurveys conducted every five years.

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    Target Group

    The target group consists of families ofsmall and marginal farmers, agriculturallabourers and rural artisans etc. Whose

    per capita monthly expenditure does notexceed the poverty line (rangingbetween Rs.216.65 and Rs.327.48 fordifferent States/UTs) as estimated by the

    Planning Commission.

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    PATTERN OF SUBSIDY

    The pattern of subsidy is:

    25% for small farmers;

    33 1/3% for marginal farmers,

    agricultural labourers, and rural artisans;and

    50% for SCs/STs beneficiaries and

    physically handicapped persons.

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    Organizations for EDPs

    Various state and national organizationsare organizing EDPs. Of the variousorganizations, The National Institute for

    Entrepreneurship and Small BusinessDevelopment is doing pioneering work.

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    National Institute for Entrepreneurship andSmall Business Development (NIESBUD)

    The National Institute forEntrepreneurship and Small BusinessDevelopment was established in 1983 by

    the Ministry of Industry, Government ofIndia, as an apex body for coordinatingthe activities of variousinstitution/agencies engaged in ED

    particularly in the area of small industryand small business.

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    The activities of the Institute includeevolving:

    Effective training strategies and

    methodology, Standardizing model syllabi for training

    various target groups,

    Formulating scientific selectionprocedure; developing training aids,manuals and tools,

    Facilitating and supportingCentral/State/Other a encies in

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    Other important organizations engagedin EDPs are:

    The National Science and Technology

    Entrepreneurship Development Board(NSTEDB) of the Department of Scienceand Technology, Government of India.

    National Institute of Small IndustryExtension Training, Government of India,Hyderabad and Nationalized banks.

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    Evaluation of EDP

    Entrepreneurial performance is a function ofthe following factors:

    a) Socio cultural background of the entrepreneur

    (SB).b) Motivational force (MF)c) Knowledge and ability of entrepreneurs (KA)d) Financial Strength (FS)e) Environmental Variables (EV)

    Symbolically Entrepreneurial Performance (EP) canbe represented in the following way:

    EP = f(SB, MF, KA, FS & EV)

    E t hi D l t I tit t f I di

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    Entrepreneurship Development Institute of India,Ahmedabad had undertaken a nationwide evaluationstudy on the effectiveness of EDPs.

    Table: Performance of the sample EDPs at a glance

    Description Number

    a) EDPs covered (Sample size)

    b) EDP trainees covered in sample EDPsc) Sample trainees interviewedd) Sample trainees not available & non-traceablee) Number of units set-up by EDP traineesf) Trainees actively under processg) Trainees blocked under process

    h) Trainees who gave upi) Non-traceable trainees

    j) Start-ups among non-availablek) Non start-ups among non-availablel) Expected final start-up rate (e+f+j)

    145

    129586543027778129

    38114659225414

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    The major findings of this study are:

    1. One out of four trainees actually started his/herenterprise after completing EDPs.

    2.The final start-up rate is higher around 32 percent.

    3. About 10 percent trainees are found blocked due tovarious reasons at various stages in the process ofsetting up their enterprise. If proper assistance is not

    provided they may add to the category of 29 percenttrainees who have already dropped the idea of settingup their own enterprises.

    4. 17 percent have given up the idea of starting theirventures as they were engaged in other activities.

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    Criteria of Evaluation

    The following main criteria can be employed to

    comment on the performance of entrepreneurs:

    i. Financial Results

    ii. Gestation Period

    iii. Capacity Utilisation

    iv. Expansion and Diversification

    v. Value Addition

    vi. Other Factors

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    Problems in the Conduct ofEDPs

    1. No policy at the national level2. Problems at the pre-training phase

    3. Over estimation of trainees4. Duration of EDPs5. Non-availability of infrastructural facilities6. Improper methodology7. Non availability of competent faculty8. Poor response of financial institutions

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    Suggestions to make EDPsSuccessful

    1. Emphasis on stimulating, supporting & sustainingactivities.

    2. Model based EDPs3. Focus on achievement motivation4. Designing of viable projects5. Selection of trainees6. Training of trainers

    7. Duration of EDPs

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    Role & relevance of EDP

    1. Creation of employment opportunities2. Capital Formation

    3. Balanced Regional Development4. Use of Local Resources5. Improvement in per capita income6. Improvement in standard of living7.

    Economic independence8. Preventing industrial slums9. Reducing Social Tension10. Facilitating overall Development

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    Thank

    You!!!