IDEA TO BUSINESS MODEL

(KOE-060)
UNIT 3
Entrepreneur Development, Entrepreneur Development Programme Objectives,
Importance, Need, Advantages, Scope, EDP Process
By: Mahesh Dhakar
Assistant Professor
Mechanical Engineering Department
 Entrepreneurship Development
Entrepreneurship development is the means of enhancing the knowledge and
skill of entrepreneurs through several classroom coaching and programs, and
training. The main point of the development process is to strengthen and
increase the number of entrepreneurs.

Entrepreneurship Development is defined as a process of enhancing the skill

and knowledge of entrepreneurs regarding the development, management and
organization of a business venture while keeping in mind the risks associated
with it. Pursuing this field as a career, you will be working towards
facilitating skill development amongst budding entrepreneurs and assisting them
to tackle their struggles with building their businesses.
 Objectives of Entrepreneurship Development
Programme
(1) To Develop the Entrepreneurial Motivation – The training inputs under this
aim at inducing and increasing the need for achievement among the
participants . Efforts are made to inject confidence and positive attitude
behaviour among the participants towards business . Motivation may be of any
kind such as internal or external , financial or non financial , etc . It is an
activation and direction of energy . It ultimately tries to make the participants
to start their own business after the completion to development programme.
(2) To select project – One of the major problems for an entrepreneur is to take
decision regarding selection of a product or project. This decision needs to be
taken very carefully because all the future efforts are related with it. EDP
helps and guides the entrepreneurs for solution of the problem for selection of
the project or product.
 Objectives of Entrepreneurship Development
Programme
(3) To analyze the environment – Such programmes also analyse the
environment. There are various environmental factors that affect the business
directly or indirectly. Such factors may be social , natural , political ,
economical , technological , legal , etc. With the help of such programmes , an
entrepreneur learns to analyse the environment and can analyse accordingly.
After such analyses he can face the competition and avail the opportunities
available in the environment.

(4) Formulation of project – Project report is a key area for every entrepreneur.
This plays a significant role at the initial stage of the project , EDP also
contributes in understanding the process and procedure to formulate a project.
 Objectives of Entrepreneurship Development
Programme
(5) Support system and procedure upgradation – Entrepreneurial development
programmes also aims at updating the entrepreneurs regarding support available
from different institutions and agencies for setting up and running small scale
enterprises. This is followed by acquainting them with procedure for approaching
them , applying and obtaining support from them.
(6) To acquire the basic managerial skills – Running a business , whether small or
large , requires managerial skill. Knowledge of managerial skill enables an
entrepreneur to run his enterprise smoothly and successfully. The main objectives
of entrepreneurial development programme is to provide the necessary
management skill to an entrepreneur required to run an enterprise.
 Objectives of Entrepreneurship Development
Programme
(7) Develop a broad view about the business – Such programmes specially provide
gainful self employment to the interested young man and women. They specially
encourage them to go for self employment instead of working for others. Such
types of programmes give a broader view about the business to the interested
persons. These programmes also aim at providing general knowledge of
entrepreneurship such as factors affecting small – scale industries , the role of
entrepreneurs in economic development , entrepreneurial behaviour and the
facilities available for establishing small – scale enterprises.
(8) Exposure to project feasibility study – Under this head the programmes provide
guidelines for the effective analysis of feasibility or viability of a particular
project in relation to marketing , organisation , technical , financial and social
aspect. This knowledge helps the entrepreneurs in future for feasibility study of
their project.
 Importance of Entrepreneurship Development
(1) Decrease unemployment: The development of entrepreneurship can reduce
unemployment dramatically. Because if entrepreneurship develops in any
country it should need a large number of workers for every stage. So, it can
reduce unemployment.
(2) Reduce capitalization: This is an era of capitalization. And capitalization rise
because of some massive entrepreneur. But if we can develop entrepreneurship
in large volumes it can create competition in the market and reduce
capitalization.
(3) The economic balance of the country: It can bring the economic balance of a
country because when a business entrepreneur starts its operation it involves
many people in economic condition.
(4) The local resource can be used: Entrepreneurship development ensures uses
of local resources. And it increases local cash follow.
 Importance of Entrepreneurship Envelopments

(5) Rise per-capita income: An entrepreneur may arrange employment for many
unemployed it reduce the unemployment problem as well as rises per capita
income.
(6) Improve the living standard: As I said in the previous paragraph a successful
entrepreneur can manage some employment so, it improves the living
standard.
(7) Economic Independence: Entrepreneurship gives a man economic
independence which is really very important.
(8) Overall Development: Economic development is overall development and
entrepreneurship development brings us financial development.
 Need of Entrepreneurship Development
1. Creation of Employment Opportunities
Unemployment is one of the most important problems confronting developing and
underdevelopment countries, EDP’s enable prospective entrepreneurs in the setting up
of their own units, thus enabling them to get self employment. With the setting up of
more and more units by entrepreneurs, both on small and large scale, numerous job
opportunities are created for the others.

Entrepreneur in this way get an opportunity to lead an independent and honorable

life and at the same time they enable others in getting gainful employment. Several
schemes like Nehru Rozgar Yojna, National Rural Employment Programme (NREP),
Integrated Rural Development Programme(IRDP) etc. have been initiated by the
government, of India in this direction. The thrust of all these schemes is to eliminate
poverty and generate gainful employment opportunities for the unemployed. Thus
entrepreneur can play an effective role in reducing the problem of unemployment
 Need of Entrepreneurship Development
2. Balanced Regional Development
Small scale units can be set up in industrially backward and remote areas with limited
financial resources. Successful EDP’s assist in accelerating the pace of industrialization
in the backward areas and reduce the concentration of economic power in the hands of a
few, Entrepreneurs feel like taking advantage of the various concessions and subsidies
offered by the state and central government.
3. Improvement in per Capital Income
Entrepreneurs are always on the look out for opportunities. They explore and exploit the
opportunities. Entrepreneurs take lead in organizing various factors of production by
putting them into productive use through the setting up of enterprises. More enterprises
will lead to more production, employment and generation of wealth in the form of goods
and services. It will result in the increase in the overall productivity and per capita
income in the country. EDPs play a positive role in the setting of more units and thus
help in generation of more employment and income.
 Need Entrepreneurship Development
4. Capital Formation: It is not possible to set up an enterprise without adequate
funds. Entrepreneur as an organizer of factors of production employs his own as
well as borrowed resources for the setting up of his enterprise.
Entrepreneur mobilizes idle savings of the public and put them to productive
use. In this way he helps in capital formation, which is so essential for the
industrial and economic development of a country. Various development banks
like ICICI, IFCI, IDBI; SFCs, SIDCs take initiative in promoting
entrepreneurship through assistance to various agencies involved in EDP and by
providing financial assistance to new entrepreneurs.
 Advantages of Entrepreneurship
To an Individual
Development To the nation
• Provides Self Employment for the entrepreneur
• Entrepreneur can provide employment for near
& dear one as well
• Entrepreneurship often provides an employment
and livelihood for next generations as well.
• Freedom to use own ideas – Innovation and
creativity
• Unlimited income / higher retained income –
Bill Gates has risen to become richest in the
world in a single life time through
entrepreneurship
• Independence
• Satisfaction
• Provides larger employment – Entrepreneurs
provide employment for self as well as other
people and is source of employment creation.
• Results in wider distribution of wealth – This is
a logical sequel of above issue. Higher the
employment, greater the distribution of wealth
• Mobilizes local resources, skills and savings
• Accelerates the pace of economic
development – Entrepreneurship is the
govt’s one of the most trusted vehicles for
economic development
• Stimulates innovation & efficiency
 Scope of Entrepreneurship
An entrepreneur initiates and establishes an enterprize. He has to take a number
of decisions to set up and run a new enterprize.
1. Decision to become an entrepreneur: it is a major step which is dicted by
motivational factors. The inner urge of the person depends upon the
following needs:
(i) To prove oneself
(ii) To be independent
(iii) To do something unique
(iv) To utilize skill
(v) To acquire greater economic rewards.
(vi) To excel
 Scope of Entrepreneurship
2. Identification and selection of an opportunity:
The entrepreneur starts searching for an opportunity to meet his needs. He
looks around for different possibilities of business, read about them, meet
people who could give ideas and inspiration, and collects information on
several opportunities.
3. Business Plan formation and its implementation: He studies the feasibility
and profitability of the project. After establishment of the enterprize, he
must mobilize capital and human resources and translate problems into
opportunities.
4. Entrepreneurial Continuum: A series of entrepreneurial decisions and
actions have to be taken which require sight attitude and requisite
knowledge and skills for entrepreneurial continuum as shown in Fig.
 Entrepreneurship Development Process
This entrepreneur development process helps new firms or ventures get better
in achieving their goals, improve business and the nation’s economy. Another
essential factor of this process is to improve the capacity to manage, develop,
and build a business enterprise keeping in mind the risks related to it.

In simple words, the entrepreneurship development process is about supporting

entrepreneurs to advance their skills with the help of training and coaching
classes. It encourages them to make better judgments and take a sensible
decision for all business activities.
 Process of Entrepreneurship Development
The below-mentioned steps will illustrate how to build an effective
entrepreneurship development program for an entrepreneur to organize and
launch the new ventures.
1. Discover – Any new process begins with fresh ideas and objectives, wherein
the entrepreneur recognizes and analyzes business possibilities. The analyzing of
opportunities is a risky task, and an entrepreneur looks out for inputs from other
persons, including channel partners, employees, technical people, consumers,
etc. to reach an ideal business opportunity.
2. Evaluation – The evaluation of an opportunity can be done by asking several
questions to oneself. For instance, questions like whether it is worth taking a
chance and investing in the idea, will it attract the consumer, what are the
competitive advantages and the risk linked with it are asked. A reasonable and
sensible entrepreneur will also analyze his skills and whether it matches his
entrepreneurial objectives or not.
 Process of Entrepreneurship Development
3. Developing a plan – After the identification of an opportunity, an
entrepreneur has to build a complete business plan. It is the most important step
for new business as it sets a standard and the assessment criteria and sees if a
company is working towards the set goals.

4. Resources – The next step in the process of entrepreneurial development is

resourcing. Here, the entrepreneur recognizes the source of finance and from
where the human resource can be managed. In this step, the entrepreneur also
tries to find investors for his new business.

5. Managing the company – After the hiring process and funds are raised now
its time to start the operation to accomplish the desired goals. All the
entrepreneur will decide on the management structure that will be assigned to
resolve the operational problems whenever it occurs.
 Process of Entrepreneurship Development
6. Harvesting – The last step in this process is harvesting, where an
entrepreneur determines the future growth and development of the business.
Here, real-time development is compared with the projected growth, and then
the business security or the extension is initiated accordingly.