ROLE OF EDP

1. Capital Formation 2. Employment Opportunities

An entrepreneur mobilises idle savings of the public EDPs enable prospective entrepreneurs in the setting up of
and puts them to productive use. Thus, he helps in their own enterprises. This enables them to get self
employment. By setting up more and more enterprises by the
capital formation. This is very essential for the industrial entrepreneurs, both on small and large scale, many job
and economic development of a country. opportunities are created for others.

3. Local Resources
The proper use of local resources promote the progress and development of the
area at lower cost. EDPs help in the proper use of local resources by providing
guidance, assistance, education and training to the prospective entrepreneurs.
 4. Balanced Regional Development 5. Improved Per Capita Income EDPs promote the setting
EDPs help in accelerating the pace of industrialisation up of more enterprises. This will help in the generation of
in remote and backward areas. Thus, they reduce the more employment and income.
concentration of economic power in the hands of a
few. This results in the development of backward areas
and balanced regional development.

6. Improved Standard of Living Entrepreneurs now make efficient use of the

resources and produce better quality products at lower costs. The consumers
get better quality products at lower prices. This leads to improved standard of
living of the society.
 7. ECONOMIC INDEPENDENCE 8. PREVENTING INDUSTRIAL SLUMS
EDPS CAN HELP IN PREVENTING SPREAD OF INDUSTRIAL SLUMS. THEY CAN
ENTREPRENEURS CAN PRODUCE WIDE VARIETY OF BETTER SUPPORT ENTREPRENEURS FOR SETTING UP THEIR ENTERPRISES IN
QUALITY GOODS AND SERVICES AT COMPETITIVE PRICES. INDUSTRIALLY BACKWARD AREAS. THIS WILL HELP IN REDUCING POLLUTION.
THEY ENABLE A COUNTRY TO EARN FOREIGN EXCHANGE BY
SELLING THESE PRODUCTS IN THE FOREIGN MARKET. THIS
HELPS IN PROMOTING ECONOMIC INDEPENDENCE OF THE
COUNTRY.

9. SOCIAL TENSION
EDPS CAN HELP THE UNEMPLOYED YOUTH FOR SETTING UP ENTERPRISES BY
PROVIDING PROPER GUIDANCE, TRAINING AND ASSISTANCE. THIS RESULTS
IN SELF-EMPLOYMENT AND PREVENTION OF SOCIAL TENSION AND UNREST.
ENTREPRENEURSHIP
 BUSINESS
INCUBATORS

Business incubators are institutions that

support entrepreneurs in developing their
businesses, especially in initial stages. These
are organizations geared towards speeding up
the growth and success of start-ups and early
stage companies.
 FEATURES

• Business incubators are organizations that enhance the survival

rates of innovative startup companies and support entrepreneurial
ventures.
• They are one of the strategic tools for assisting entrepreneurs during
their start-up phase.
• The business incubator process can help to protect incubators from
competitive forces of the external environment.
• Business incubation aims at supporting the development and scaling
of growth-oriented, early staged enterprises
 • Academic Incubators
They represent universities and
colleges providing incubator
services.
TYPES OF • Private Incubators
These are privately funded
INCUBATORS incubators which charge for their
services.
• Free starting Incubators
These are incubators which provide
initial services free
 FUNCTIONS
1. Providing Infrastructure
The business incubators provide office workspaces, and
Workshops for startups to get the initial running.
2. Financial and Legal Advice
They lend their financial and legal advisors to the
entrepreneurs to that they can make well informed
decisions.
3. Contacts with Potential Investors
Business incubators have multiple contacts with
previous and potential investors. They help the
entrepreneurs in developing a perfect sale strategy.
4. Initial Financial Support
In certain cases, they provide the entrepreneurs with a minimum fund to set things into
motion and begin with the initial phase of developing the concept.
5. Training and Guidance
Business incubators provide the new entrepreneurs with training from market experts on
how to begin, develop and implement ideas. They follow the progress closely and guide
the entrepreneurs to improve their performance and get to the target market.
6. Employment opportunities
Incubators create employment opportunities in the local economy and try to
commercialize technologies.
7. Economic growth
They create long lasting jobs for new graduates, experienced personnel and executives.
This will help in economic growth.
8. Cost of Operation
They help to reduce operating costs. They share common facilities and share overhead
expenses with the new concerns.