ASSIGNMENT

ON
ENTREPRENEURIAL DEVELOPMENT 2017
COURSE CODE- EDM413

CONTRIBUTION

ENTREPRENEURIAL COMPETENCIES BY SUDHANSHU SHARMA

ENERGING AREAS IN ENTREPRENEURSHIP BY SHUBHAM JAMWAL SUBMITTED BY:

FACTORS INFLUENCING ENTREPRENEURIAL DEVELOPMENT BY SUDHANSHU SHARMA Cuhp16mba70

SUNNY
SHUBHAM JAMWAL Cuhp16mba68
ENTREPRENEUSHIP DEVELOPMENT PROGRAMME BY SHUBAHM
Sunny Cuhp16mba71
PARMAR
SHUBHAM PARMAR Cuhp16mba69
ENTREPRENEURSHIP DEVELOPMENT MODEL BY
SHIWANI Cuhp16mba66
FACTORS RESPONSIBLE FOR EMERGENCE OF ENTREPRENEURIAL
DEVELOPMENT
1. BACKGROUND FACTORS

(a) Education, Training and experience: The type of education, training and experience
an individual has acquired influences his choice of setting up an enterprise.
Technically qualified persons normally set up their ventures in the field of their
specialization, mainly because working in one’s area of specialization provides
confidence and reduces the uncertainty associated with the new venture.
(b) Family, role models and association with similar type of individuals: if an individual
has a supportive family, has role models who have been successful or are in the
association with the same or similar type of business activity the individual is
engaged in, they add vigour to his desire to set up a new venture.
(c) Financial conditions: Both adverse and supporting financial conditions can motivate
an individual to set up a new venture. When an individual is unemployed or is not
able to support his family demands, or if he has surplus funds, he may start looking
for a new business venture where he can put in his time/money to achieve success and
thus fulfill his demands.

2. MOTIVATIONAL FACTORS

(a) Need for achievement: This has been identified as the most important reason for
entrepreneurial motivation by various researchers. Need for achievement means the
drive to achieve a goal. Entrepreneurs have a compelling drive to succeed. They
strive for personal achievement rather than reward per se. They have the desire to do
something better or more efficiently than it has been done before.
(b) Personal motives/expectations: This has been found to be one of the crucial factors
responsible for entrepreneurship amongst individuals. These individuals have an
internal focus of control i.e. they consider themselves responsible for their growth and
development.
(c) Business Environment: Supportive business environment like low rate of competition,
high profit margins, good economic condition of the region, high demand- all
contribute towards motivating an individual to set up a new venture.

3. ECONOMIC FACTORS

(a) Supportive government policy: From time to time, the government keeps formulating
policies and programmes to promote entrepreneurs in different fields. Tax holidays,
for instance, are such a policy measure. These policies and procedures go a long way
towards catalyzing the entrepreneurial motivation.
 (b) Availability of financial assistance from various funding bodies: An entrepreneur
needs funds to set up a business and many may not be having the required funds to
support the requirements of the business set up. In such situation he/she can obtain
assistance from financial institutions. Hence the financial institutions can facilitate the
setting up of a new venture by easing out the disbursement of funds to them.
(c) Availability of technical factors like premises, electricity, labour: Feasibility with
which factors of production are available to the entrepreneurs will facilitate/obstruct
an entrepreneur in making the final decision of setting up a business venture and even
in the success of a business.

4. REWARD

(a) Recognition: Since the success of a business is usually proportionate to the efforts put
in by the entrepreneur, setting up of new ventures gives an entrepreneur an
individuality, the outcome of which is highly dependent on him. Since the success of
an enterprise is associated with the efforts and success of an entrepreneur he/she gets
enough recognition to enhance his/her self-esteem.
(b) Social status: Entrepreneurship is the way to get large profit margins which a salaried
employee cannot even think of. Hence, if the business runs successfully, it
automatically for one’s fate, employing a number of individuals, taking important
decisions, all go a long way in bestowing a higher social status upon an individual.
Entrepreneurial Development models:
The following are the some of the important models that helped comprehensive
understanding the concept of entrepreneurship.
(a) The Psychological models:
 David McClelland in his theory “the Achieving Society” emphasized the need
for identification of determinates of entrepreneurship. In this model he ascribes
more important to achievement motives which earlier related to child rearing
practices. Later, he changed his perception and stated that motivation is seen
primarily as a result of the identification arousal of latest need for achievement
among adults. After identifying achievement orientation as the key variable in
the development of entrepreneurship McClelland finally suggested that the
motivating training programs as the policy measure which will make potential
entrepreneurs really willing and eager to explicit the new opportunities provided.
 Everett Hagen’s theory of social change laid emphasis n ‘creative personality’ as
a causal think in entrepreneurial behavior and ‘status withdrawal’ as the
determinant of ‘creative personality’. Hagen elaborately explained the causal
sequence of entrepreneurial behavior, despite this model gave and contributed a
lot in understanding to entrepreneurship, but failed to give any policy variable to
the development of entrepreneurship. The ‘status withdrawal’ would happen
 according to Hagen in the natural evolutionary process of the society and not by
any deliberate attempt.
 “John Kunkel” primarily emphasized on the psychic needs, values, sociological
variables and a behavioral model. He was under the contention that
entrepreneurial behavior is a function of the surrounding social structure both
past and present, and can really be enhanced by manipulable economic and
social incentives which identify sociological variables as the determinants of
entrepreneurial supply.

(b) The Sociological models:

 Frank W. Young’s theory of entrepreneurship is a theory of change based upon
society’s in corporation of reactive sub-groups. To Young, a group will become
reactive when two conditions coincide-:
1) the group is experiencing low status recognition and
2) denial of access to important social networks,
and it possesses a greater range of institutional resources than groups in
society at the same system level. He looked at entrepreneurship as an
organizational phenomenon and observed whatever else it may be, economic
development involves a organization of production resources. For economic
spurts, according to Young, instead of looking at individuals, one must find
clusters, ethnic communities, occupational groups as politically - oriented
factions.
 According to Max labour, the key to competitive success for entrepreneurship is
an entrepreneur’s innovation in a thorough going rationalization of every aspect
of enterprise.
 In the webersian system, the entrepreneurial activities are generated by
religious belief. He strongly viewed that the main factor contributing to the
support of entrepreneurship is the ‘protestant ethic’ which changed from
religious belong system of “Calvinister Puritanism”. His theory suggested that
the belief system of Hinduism, Buddhism and Islam do not entrepreneurship, this
stand, however, has been challenged by many Sociologists.

(c) The integrated models: T.V. Rao framed and suggested the Following dispositions for
entrepreneurial development.

1. Need for motive: The dynamic which for the prospective entrepreneur has the greatest
possibility of achieving the goals if one reforms those activities.

2. Long-term involvement: It is the goal either at thinking level or at activity level in the
entrepreneurial activating that is viewed as a taste to be fulfilled.
3. Resources: Personal, social and material resources which he thinks are related to entry and
success in the area of entrepreneurial activity.

4. Social - Political System: It is to be perceived as suitable for establishment and development

of the enterprise. He further stated that all the above factors are additive in nature and its optional
presence lead to entry point of entrepreneurship which leads to acquisition of material resources
and standing the business.

ENTREPRENEURSHIP DEVELOPMENT PROGRAMME

MEANING:

As the term itself denotes, EDP is a programme meant to develop entrepreneurial abilities
among the people. In other words, it refers to inculcation, development, and polishing of
entrepreneurial skills into a person needed to establish and successfully run his / her
enterprise. Thus, the concept of entrepreneurship development programme involves equipping
a person with the required skills and knowledge needed for starting and running the enterprise.

According to N. P. Singh (1985), “Entrepreneurship Development Programme is designed to

help an individual in strengthening his entrepreneurial motive and in acquiring skills and
capabilities necessary for playing his entrepreneurial role effectively. It is necessary to promote
this understanding of motives and their impact on entrepreneurial values and behaviour for this
purpose.”

NEED FOR EDPS

Entrepreneurs possess certain competencies or traits. These competencies or traits are the
underlying characteristics of the entrepreneurs which result in superior performance and which
distinguish successful entrepreneurs from the unsuccessful ones.

OBJECTIVES OF EDP:

The major objectives of the Entrepreneurship Development Programs (EDPs) are to:

 Develop and strengthen the entrepreneurial quality, i.e. motivation or need for
achievement.
 Analyze environmental set up relating to small industry and small business.

 Select the product.

 Formulate proposal for the product.

 Understand the process and procedure involved in setting up a small enterprise.

 Know the sources of help and support available for starting a small scale industry.

 Acquire the necessary managerial skills required to run a small-scale industry.

 Know the pros and cons in becoming an entrepreneur.

 Appreciate the needed entrepreneurial discipline.

 Besides, some of the other important objectives of the EDPs are to:

 Let the entrepreneur himself / herself set or reset objectives for his / her enterprise and
strive for their realization.

 Prepare him / her to accept the uncertainty in running a business.

 Enable him / her to take decisions.

 Enable to communicate clearly and effectively.

 Develop a broad vision about the business.

 Make him subscribe to the industrial democracy.

 Develop passion for integrity and honesty.

  Make him learn compliance with law.

COURSE CONTENT AND CURRICULUM OF EDP

1. GENERAL INTRODUCTION TO ENTREPRENEURSHIP:

First of all, the participants are exposed to a general knowledge of entrepreneurship such as

factors affecting small-scale industries, the role of entrepreneurs in economic development,

entrepreneurial behavior, and the facilities available for establishing small-scale enterprises.

2. MOTIVATION TRAINING:

The training inputs under this aim at inducing and developing the need for achievement among

the participants. This is, in fact, a crucial input of entrepreneurship training. Efforts are made to
inject confidence and positive attitude and behavior among the participants towards business.

It ultimately tries to make the participants start their own business enterprise after the

completion of the training programme. In order to further motivate the participants,

sometimes successful entrepreneurs are also invited to speak about their experiences in setting
up and running a business.

3. MANAGEMENT SKILLS:
Running a business, whether large or small requires the managerial skills. Since a small

entrepreneur cannot employ a management professionals /experts to manage his/her business,

he/she needs to be imparted basic and essential managerial skills in the different functional
areas of management like finance, marketing, human resource, and production.

4. SUPPORT SYSTEM AND PROCEDURE:

The participants also need to be exposed to the 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.
 5. FUNDAMENTALS OF PROJECT FEASIBILITY STUDY:

Under this input, the participants are provided guidelines on the effective analysis of feasibility

or viability of the particular project relating to marketing, organization, technical, financial, and

social aspects of the project. Knowledge is also given how to prepare the ‘Project’ or ‘Feasibility
Report’ for certain products.

6. PLANT VISITS:

In order to familiarize the participants with real life situations in small business, plant visits are

also arranged. Such trips help the participants know more about an entrepreneur’s behaviour,

personality, thoughts, and aspirations. These influence him / her to behave accordingly to run
his / her enterprise smoothly and successfully.

On the whole, the ultimate objective of entrepreneurship development programme is to make

the trainees prepared to start their own enterprises after the completion of the training
programme. This is the ultimate measure of success levels of the EDPs.

PHASES OF EDP

Phase of Entrepreneurship Development Programme:

a. Pre-training phase
b. Training phase
c. Follow-up phase

1. PRE-TRAINING PHASE:

Pre-training phase consists of all activities and preparation to launch training programme. Pre-
training phase of EDP consists of the following activities:

 Selection of entrepreneurs for the training programme.

 Arrangements of infrastructure are for the programme like selection of place of training.
 Deciding guest faculty for the programme from education industry and banks.
 Taking necessary steps for inauguration of programme.
 Formation of selection committee to select trainees from the programme.
 Making provision with regard to publicity and campaigning for the programme.

2. TRAINING PHASE:

The primary objective of training programme is to develop motivation and skill or competency
amongst the potential entrepreneurs. Care should be taken to impart both theoretical and
practical knowledge to various trainees. The training phase of EDP will be so designed that it
will answer the following questions:

(a) Whether the attitude of the entrepreneur has been tuned towards the proposed project or
no.
(b) Whether the trainee has been motivated to accept entrepreneurship as a career.
(c) How the trainee behaves like an entrepreneur.
(d) Whether the trainee has sufficient knowledge on resources and technology or not.
(e) What kind of entrepreneurial traits he lacks and what steps should be taken to set it.

3. FOLLOW-UP PHASE:
Follow up phase of EDP has been termed as post-training phase. The ultimate objective is to
develop competent entrepreneurs.

So that they can start their project. Post-training phase is a review phase of training
programme. It consists of reviewing of work in the following manner:

 Review of pre-training work

 Review of actual training programme
 Review of post training programme so that cost effectiveness of the present programme can be
evaluated.

ENTREPRENEURIAL COMPETENCIES

E
ntrepreneurial behavior requires certain knowledge, skill or personality profile.
Generally, it is called entrepreneurial competence or traits.

A competence may be defined as underlying characteristics of a person which results in

effective and/or superior performance in a job. A job competence is an underlying characteristics
of a person in that it may be motive, traits, skills, aspect of one’s self-image or a body of
knowledge which one uses.
Thus, success of an entrepreneur is governed by entrepreneurial competencies. If he has all these
competencies, he can be expected to achieve his entrepreneurial goals. Elements of
entrepreneurial competencies as follows:

BODY OF KNOWLEDGE
SET OF SKILLS
CLUSTER OF APPROPRIATE MOTIVES/TRAITS.

BODY OF KNOWLEDGE: Innovation is possible only through knowledge. The

inventor or originator of the idea that led to the knowledge or vision, of something new;
the artist of creative endeavor. Inventors include those who identify new technological
processes, new forms of plant life and new designs. Thus, inventions deal with new
processes, or new technical knowledge. In a simple way, knowledge means collections of
information and retention of facts that an individual stores in some parts of his brain.

Creative process provides imaginative people, geminate ideas, nurture them and develop them
successfully. This type of idea has a value. However, it must be proven useful or be marketable
and to achieve either status or achievement, must be developed. But innovation is the
development process which translates an idea into an application. It requires persistence in
analytically working out the details of product design or service, to develop marketing, obtain
finances and plan operations.

SET OF SKILLS: Skill is the ability to demonstrate a system and sequence of behavior that
are functionally related to attaining a performance or goal. An entrepreneur is required to have
certain skills and these skills also constitute his leadership qualities. These skills are as follows.

(a) Anticipatory Skills––foresight into a constantly changing environment;

(b) Visioning Skills––the use of persuasion and example to induce a group to act in accordance
with the leader’s purposes or the shared
purposes of a larger group;

(c) Value Congruence Skills––the

ANRICIPATORY
SKILLS
need to be in touch with employee’s
economic, safety, psychological,
VISIONING SKILLS
spiritual, sexual, aesthetic and physical
needs in order to engage people on the
VALUE basis of shared motives, values and goals;
CONGRUENCE
SKILLS (d) Empowerment Skills––the
EMPOWERME willingness to share power and to do so
NT SKILLS effectively; and

(e) Self-understanding Skills––

SELF- introspective or self underskills as well as
UNDERSTAND framework within which leaders
ING SKILLS understand both their own needs and
goals and those of their employees.

In practice, an entrepreneur who pursues the idea, planning its application, acquiring resources
and establishing its market through persistence, planning, organizing and leadership needs above
skills. With the help of these skills, entrepreneur is expected to perform well in his
entrepreneurial behavior.

CLUSTER OF MOTIVES AND

TRAITS: Motives deal with recurrent
concern for a goal, state or condition MOTIVES
TRIATS
appearing in fantasy, which drives, directs and
selects behavior of the individual. Actually
motive represents thought related to a

ENTREPRENEURIAL
COMPETENCIES
particular goal, state. McClelland opined that “need achievement” is social motive to excel that
tends to characterize successful entrepreneurs especially when reinforced by cultural factors.

The trait may be defined as a dispositional or characteristic way in which the person responds to
an equivalent set of stimuli. These responses represent intelligence, charisma decisiveness,
enthusiasm, strength, bravery, integrity and self-confidence. Thus, traits are an individual’s
personal characteristics or leadership qualities.

DEVELOP ENTREPRENEURIAL COMPETENCIES THROUGH PGDM

PROGRAM—EDII(ENTREPRENEUSHIP DEVELOPMENT INSTITUTE
OF INDIA, AHEMDABAD)

.Entrepreneurship Education and learning is a way to educate how they can create job
possibilities for themselves and not be taken in by the recession. Not only do these applications
create the young people and other business hunters run their own little companies but also let
them understand how it works and what makes an employee useful. The move in the perspective
can definitely benefit the mind of an unemployed teenager in assisting him identifies his worth
for organizations across the planet.
Entrepreneurship Development Institute of India (EDII), an autonomous and not-for-profit
institute, set up in 1983, is sponsored by apex financial institutions - the IDBI Bank Ltd., IFCI

Ltd., ICICI Bank Ltd. and the State Bank of India (SBI). The Government of Gujarat pledged
twenty-three acres of land on which stands the majestic and sprawling EDII campus. To pursue
its mission, EDII has helped set up twelve state-level exclusive entrepreneurship development
centers and institutes. One of the satisfying achievements, however, was taking entrepreneurship
to a large number of schools, colleges, science and technology institutions and management
schools in several states by including entrepreneurship inputs in their curricula. In view of
EDII?s expertise in Entrepreneurship, the University Grants Commission had also assigned EDII
the task of developing curriculum on Entrepreneurship and the Gujarat Textbook Board assigned
to it the task of developing textbooks on Entrepreneurship for 11th & 12th standards.

In order to broaden the frontiers of Entrepreneurship Research, EDII has established a Centre for
Research in Entrepreneurship Education and Development (CREED), to investigate into a range
of issues surrounding small and medium enterprise sector, and establish a network of researchers
and trainers by conducting a biennial seminar on entrepreneurship education and research.
 Entrepreneurship: Emerging areas
1) Green Business

2) Biotechnology

3) Event Management

4) IT enabled Services

5) Food, Fruits, Processing and Tpt.

6) Mineral Water

7) Courier and Insurance Services

8) Herbal Sector

9) Tourism and Hospitality

10) Vermiculture

Other Areas
1) Automobile

2) Textile

3) Social Entrepreneurship

4) Franchising

5) Education and Training

6) Toys

7) Recycling Business