EDPs- Relevance, Role, Problems & Suggestions
Relevance of EDPs
No entrepreneurial development plan can be framed and implemented without its relevance to the political, economic, social and legal environment. As such an EDP which is suitable for advanced countries like U.S.A. or U.K. but may not be suitable for a developing country like India.
Relevance of EDPs in economic and industrial development need not be over emphasized. It will not be an exaggeration to say that “No EDP no means of economic development” Research studies have shown that countries which have implemented EDPs have attained high economic growth as compared to those which have not done so. It is natural Economic development never takes place by an accident. It is always a matter of design. It is a result of conscious efforts made by the State and its agencies. EDP is a means to achieve this end as would have been clear from the role of EDPs discussed in the previous section. Hence, EDP is indispensable for an entrepreneur.
Relevance of EDP can be appreciated from the following:
- It helps in multi-dimensional development of a country.
- It encourages spirit of entrepreneurship.
- It helps in education and training of entrepreneur.
- It develops their skills
- It helps in promoting new ventures.
- It helps in managing new ventures.
- It opens new avenues of employment.
- It helps in increasing imports.
- It helps in increasing production and productivity.
- It helps in earning valuable foreign exchange.
- It helps in removing poverty.
- It helps in balanced regional development of industries.
- It rises standard of living of people living in underdeveloped and backward areas.
- It encourages invention.
- Helps in project formation.
- It increases opportunities for research and development.
Role of Government in Organising EDP
The task of entrepreneurial development is very complex and closely related to economic and business environment prevalent in the society. Business environment is affected by political, economic, social and legal factors. Above all Government is the biggest player. Hence, the Government plays a major role in regulating and controlling business environment through business regulatory framework, i.e., industrial policy licensing policy, foreign exchange management, banking policy and pollution control laws.
Problems and Weakness of EDP
Some important problems and weakness regarding EDPs are as follows:
Lack of co-ordination :
It is also observed that enough attention is paid to streamline and coordinate all activities related with programmes to get the maximum results.
Inappropriate Support System :
It is also observed that the soundness and willingness of the support system greatly influence the success of the programme. But our EDPs lack sound support system to promote entrepreneurship.
Our EDPs are costly affair now-a-days. They have fancy budgets to expend. But these cannot be afforded by developing economic like India.
Not Catered to our Needs :
It is also noted that out EDPs are modelled of the classical theory of entrepreneurship. They are geared to meet out the need of elitist small group while larger groups are not helped through these programmes. Needy entrepreneurs are not provided with proper help to meet their needs, EDP fall to tap the entrepreneurial potential. Trained entrepreneurs do not receive the support and counselling which they need most.
Lack of Innovative Functions :
Most of the existing support organizations are means for maintenance operations and not for innovative functions.
Suggestions to Make EDP more effective
The following suggestions can improve viability of EDPs.
The structure and composition of EDPs need to be streamlined. The regional variations must be removed.
Practical Content :
The programme should have a practical content. It needs an inter-institutional coordination to make it a success.
Effective Support Services :
Effective support services should be linked with EDPs for better results. The nominees of financial institutions and lead bank should be associated with the programme.
Proper Selection of Entrepreneurs :
Right type of potential entrepreneurs must be selected. Thus who have business experience and skills should be tapped first for EDPs. Then efforts must be made to cover those who have the potential of becoming successful entrepreneurs.
Inter-disciplinary Approach :
The contents of EDP should be given an inter-disciplinary thrust. Also intensive follow-up work will have to be done.
A few can be imposed on participants to ensure their commitment towards EDPs. Payment of stipend to participants should be avoided as for as possible.
- Theories of Entrepreneurship- Economic & Sociological Theory
- Psycho-Theories of Entrepreneurial Behaviour
- Environmental Forces Affecting Entrepreneurship
- Entrepreneur & Environment- Relation, Need, Importance, etc.
- Creativity in Entrepreneurship- Definition & Various Steps
- Innovation in Entrepreneurship- Meaning, Characteristics, Process etc.
- Entrepreneurial Development Programme (EDPs)- Objectives
- Role of Central Government in Entrepreneurial Development
- Incentives and Subsidy in Entrepreneurship- Meaning, Needs
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