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Misconceptions of Entrepreneurship Development Programme

Misconceptions of EDPs (Entrepreneurship Development Programme)

Misconceptions of EDPs

According to Chandra Pathak following misconceptions about EDPs are very common :

  1. EDP as a panacea of all ill’s :

    As pointed out earlier, EDP is a means not an end. Entrepreneurs have a wrong notion that mere joining EDP will make them successful entrepreneurs. They have the wrong impression that mere joining and EDP means automatic grant of industrial license, assured financial assistance,, raw materials quartos and other facilities and incentives.

  2. EDP means only training :

    To most of the entrepreneurs EDP means mere training. Of course, training is an important part of E.D.P. However, training is not enough. It is a necessary condition for entrepreneurial success but not a sufficient condition. EDP emphasizes selection of right type of entrepreneur, right type of project, impartial and careful appraisal of the project, development of managerial and entrepreneurial skills through training, development of appropriate motivational levels and logistic support to help them in setting up their ventures. Thus, training alone cannot be sufficient for entrepreneurial development.

  3. Emphasis on number of entrepreneurs trained rather than their quality :

    Organizers of EDP wrongly believe that higher the number of entrepreneurs joining the EDP, the better the EDP. The success of an EDP is judged by the number of entrepreneurs joining it rather than by the quality of the entrepreneurs produced.

This number game must end to make EDP a success. Hence the criteria to judge the success of an EDP should be the quality of the entrepreneurs trained and should be judged by the number of successful entrepreneurs produced.

  1. Trainer Motivator alone responsible for EDP success :

    Success of an EDP is dependent upon number of factors affecting external and internal environment. Therefore, it is wrong to hold trainer or motivator responsible for the success or failure of an EDP. Needless to say that many players in the field such as banks, financial institutions and other government and semi-government agencies are involved. Unless there is effective co-ordination between various agencies, success of an EDP is very doubtful.

  2. Lack of proper selection of entrepreneurs :

    Success of EDP is closely linked to the proper selection of the entrepreneurs to be trained. Persons to be trained must be properly selected after proper scanning of their aptitude, entrepreneurial and managerial skills, motivation etc.

  3. Lack of co-ordination and linkages among various agencies:

    A large number of organizations are working for entrepreneurial developments. There is overlapping of their roles. In urban areas there are more than one agency providing the same service, whereas in rural and backward areas there is not even one agency to serve. These agencies are also at loggerheads. Efforts should be made to establish contacts among various agencies so that their services can be streamlined through regular effort.

  4. Overemphasis to develop entrepreneurship in industry alone :

    EDP is lopsided. There is greater emphasis on developing an entrepreneur for industry alone. Other important fields have been neglected. For example, handicrafts, art crafts, horticulture, floriculture agriculture, export, etc. Information technology has opened up new avenues. There should also be tapped. For example, now a days a new trend in outsourcing software development by advanced countries like U.S.A. to developing countries is noticeable. We should exploit this opportunity to develop entrepreneurs to meet the demand of software outsourcing.

  5. Inadequate Infrastructure:

    There is lack of infrastructural facilities such as adequate supply of power, water raw materials, skilled labour, finance, market place and so on. These have an adverse effect on the entrepreneurs.

  6. Red Tapism :

    Administrative machinery is inert. Inspite of availability of necessary facilities, these are denied by the corrupt, unskilled bureaucracy. Consequently entrepreneurs do not get approval of the projects, financial assistance, water, power connection in time. This results in unnecessary delays and costs over run.

Suggestions for making Entrepreneurial Development Programme more effective

In addition to taking steps to overcome the short-comings discussed earlier, following suggestions are made to make entrepreneurial development programme more effective.

  1. Qualitative improvement should be made in EDP.
  2. Mechanism of selection of entrepreneurs should be strengthened.
  3. Contents of the E.D.P. should be strengthened.
  4. Number of Educational and training centres should be increased.
  5. Quality of the official imparting education and training should be enhanced.
  6. There should be proper supervision of the Institutions imparting EDP training.
  7. Infrastructure and other facilities should be increased.
  8. Incentives and facilities to the entrepreneurs should be increased.
  9. Entrepreneurial literature should be made available widely and preferable in the local language which the entrepreneurs know well.
  10. Tax incentives should be provided.
  11. Special attention should be paid to economically weaker sections, women and handicapped people.
  12. There should be proper coordination among various agencies.
  13. Technical and other consultancy services should be enhanced.
  14. Industrial policy should be helpful in creating favourable investment climate.
  15. Industrial culture should be developed.
  16. Adequate and cheap financial assistance should be made available.
  17. Emphasis should be on balanced regional development of industries.
  18. Special attention should be paid to the development of handicrafts agriculture, sericulture and horticulture.
  19. Bureaucracy should be freed from red tapism.
  20. Long term financial policies should be formulated.

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