BBA –IV SEM
BBA-406 ESBM
UNIT-II- Entrepreneurial Development

Meaning:
 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.
 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.

Definition:
 Entrepreneurship Development is defined as a
process of enhancing the skill-set and knowledge
of entrepreneurs regarding the development,
management and organization of a business venture
while keeping in mind the risks associated with it.
 This is carried out through training programs,
education, reorientation and creation of conducive and
healthy environment for the growth of enterprises.
 The Entrepreneurial development is a key to achieve
overall economic development through higher level of
industrial activity. It is a process in which persons are
injected with motivational drives of achievement and in
sight to tackle uncertain and risky situations especially
in business undertakings.

Process Of Entrepreneurship
Development
 1. Clear view of objective of the program
 2. Selecting the potential target
 3. Identifying local talents and markets
 4. Choosing right location
 5. Tying up with institutions
 6. Develop the entrepreneurship program
as needed
 7. Analyze the result for future
development

Significance & Role of
Environment Infrastructural
network
 Entrepreneurs are not born…. They
are made right from the childhood.
 The environment around the
entrepreneur makes an Entrepreneur.

Environmental factors
 Parents
 Friends
 Teachers
 School Atmosphere
 Neighbourhood
 Society around him
 Entrepreneurship is the result of the
interaction and assimilation of different
social and environmental factors.

Entrepreneurial environment
 Entrepreneurial environment Is a
combination of factors that play a role in
the development of entrepreneurship.
 First, it refers to the overall economic,
socio-cultural, and political factors that
influence people’s willingness and ability
to undertake entrepreneurial activities.
 Second, it refers to the availability of
assistance and support services that
facilitate the start-up process.

 The available literature on
entrepreneurial environment can be
grouped into three broad streams:
1. General environmental conditions for
entrepreneurship.
2. Environmental conditions of a
particular country or region, and
3. The role of public in shaping the
entrepreneurial environments.

GENERAL ENVIRONMENTAL
CONDITIONS
 General environmental conditions that may
influence entrepreneurship include:
 Legal and institutional frameworks for efficient
functioning of private enterprises.
 Presence of experienced entrepreneurs and
skilled labour force.
 Accessibility of suppliers and customers or
new markets.
 High degree of competition among firms.
 Favourable government policies.
 Provision of training and support services.
 Supportive infrastructure.

 In addition, the literatures suggests
that the characteristics of people,
their skills, experience, and
motivation, play important roles in
new venture creation.

Country Or Region Specific
Environmental Conditions
 Countries that keeps rules and regulations at
a minimum, offer tax and other incentives, and
provide training and counselling services to
start-up entrepreneurs increase the likelihood
of new ventures start-ups.
 Furthermore, factors such as availability of
financial resources, large size urban areas,
and presence of universities for training and
research are found to be very important to
increase the rate of new venture creation.

 Studies also show that
entrepreneurs face several
obstacles, such as lack of financial
assistance, lack of information on
various aspects of business,
excessive taxation, and high rate of
inflation.

Role Of Public Policy
 Scholars that focused on the role of public policy
suggest several policy options for developing
entrepreneurship.
 These policy options include provision of:-
 Venture capital funds.
 Tax-based incentives and government
procurement programs
 Protection of proprietary ideas and innovations
 Investment in education and research
 Explicit recognition of and support for,
entrepreneurship by government agencies.
 Fostering of entrepreneurship by educational
institutions, and

ROLE OF INFRASTRUCTURAL
NETWORK
 The basic of infrastructure at the place
of the project help in:-
 Speedy implementation of the project.
 Reduces costs.
 Increase profitability.
 Better or rapidly improving infrastructure
in a particular area may attract more
entrepreneurial activities.

Basic infrastructure
requirements
 Certain infrastructural elements seem to make
substantial impact on the entrepreneurial
environment.
 Modern transport and communication facilities
that provides easy access to suppliers and
customers.
 Road network
 Connected to rail
 Ports
 Airports

 Location decisions of based on the community’s
ability to supply trained and capable workers
and on the proximity to research and
development institutions.
 Existence of universities and research and
development programs
 A well-educated and technically skilled labour
force, and
 Supporting industries
 Climate conditions
 Logistics support:
 A. Electricity
 B. Water

 Most commercial operations such as venture
capital firms and commercial banks tend to
exhibit greater interest in concentrated, urban
areas that usually have a well-developed
infrastructure and concentrated demand for
funds.
 They also favour areas where businesses are
easier to supervise and monitor and the cost
of supervising and monitoring loans is
relatively low.

ENVIRONMENTAL ANALYSIS
 Positive environment
 Encourages entrepreneurial
development and growth
 This is called entrepreneurial
motivation

ENVIRONMENTAL ANALYSIS
 Environmental analysis is described as the
process which examines all the components,
internal or external, that has an influence on
the performance of the organization.
 The internal components indicate the
strengths and weakness of the business entity
whereas the external components represent
the opportunities and threats outside the
organization.
 Finally, Environmental Analysis is awareness
of the organization to the success.

NEED & IMPORTANCE OF
ENVIRONMENTAL ANALYSIS
 They help the managers to achieve the
organizational objectives effectively than
other organizations.
 An enterprise can not achieve its
objectives unless it adapts itself to
Environmental change.
 Systematic analysis enables the
managers to predict the future and to
have enough time for other activities.
This minimizes the time pressure of the

Process of Environmental
Analysis
 1. Identifying Environmental Factors:-first of all,
the factors which influence the business entity are
to be identified, to improve its position in the
market. The identification is performed at various
levels, i.e. Company level, Market level, national
level and global level.
 2. Scanning and selecting relevant and key
factors:- scanning implies the process of critically
examining the factors that highly influence the
business, as all the factors identified in the
previous step effects the entity with the same
intensity.
 3. Defining variables for Analysis:- a careful
analysis of all the environmental factors is made to

 4. Using different methods, techniques and tools:-
some of the methods are benchmarking and network
methods. Some of the techniques are brainstorming,
survey, historical enquiry. Some of the analytical tools
are mean, median and mode, frequency.
 5. Forecasting environmental factors:- after
identification, examination and analysis, lastly the impact
of the variable is to be forecasted.
 6. Designing Profiles:- internal area are recorded in
Strategic Advantages Profile (SAP), and External
areas are recorded in Environmental Threat and
Opportunity Profile (ETOP). These two profiles are
designed & combined in to one.
 7. Strategic positions and report writing:- after
analysis of business environment a strategist knows the
actual situation and can make some future forecasting
based on the Environmental Analysis.

LIMITATIONS OF
ENVIRONMENTAL ANALYSIS
 Environmental analysis suffers from
certain limitations also. These are as
follows:-
 1. Lack of forewarning of unforeseen
events:
 2. No assurance as to organization
effectiveness:
 3. Not fully reliable:-
 4. Absence of strategic approach:-

Entrepreneurship Development
Program
 Programme to develop entrepreneurial
abilities among people.
 Inculcation, development and polishing of
entrepreneurial skills into a person
needed to establish and successfully run
the enterprise.
 Widen base of entrepreneurship by
development, achievement and
motivation.

Meaning & Definition of EDP
 Meaning: Entrepreneurial Development
Programme (EDP) refers to a programme which is
formulated to assist the individuals in reinforcing
their entrepreneurial motives, and attaining
competencies and skills which is essential for
performing an entrepreneurial role successfully.
 Definition: According to N. P. Singh :
 "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 and is necessary to
promote this understanding of motives and their
impact on entrepreneurial values and behavior for

Needs of EDP
 Superior performance of entrepreneurs.
 Induce motivation and competence
among the young prospective
entrepreneurs.
 Programmes similar to India’s EDPs are
conducted in other countries also, for
example, ‘Junior Achievement
Programme’ based on the principle of
‘catch them young’ in USA and ‘Young
Enterprises’ in the U.K.

Objectives of EDP
 The objective of this programme is to motivate an
individual to choose the entrepreneurship as a career
and to prepare the person to exploit the market
opportunities for own business successfully.
 These objectives can be set both in the short-term and
long-term basis.
 Short-term objectives: These objectives can be
achieved immediately. In the short-term, the individuals
are trained to be an entrepreneur and made competent
enough to scan the existing market situation and
environment.
 Long-term objectives: The ultimate objective is that
the trained individuals successfully establish their own
business and they should be equipped with all the
required skills to run their business smoothly.
 The overall objectives of EDP are mainly to help in the
rapid growth of the economy by supplying skilled
entrepreneurs. This programme primarily aims at

Contd.
 Develop and strengthen the entrepreneurial
quality, i.e. Motivation or need for
achievement.
 Analysis environmental set up relating to
small industry and small business.
 Understand process and procedure involved
in setting up a small enterprise.
 Know the sources of help and support
available for starting up a small scale
industry.
 Acquire the necessary managerial skills
required to run a small-scale industry.
 Know the pros and cons in becoming an

Phases of EDP
 An EDP consists of following three
broad phases:-
 A) Pre-training phase
 B) Training phase
 C) Post training phase( follow-up)

A) Pre-training phase
 The activities and preparations required to
launch the programme come under this
phase.
 It includes:-
 1. Designing of course-curriculum or
contents.
 2.Exploring & selecting appropriate faculty
and resource persons.
 3. Insertion of achievement.
 4. Screening & Selecting of potential
entrepreneurs.

B) Training phase
 The main objectives of this phase is to
bring desirable change in the behaviour of
trainees.
 The behavioural changes that need to be
measured and monitored through the training
programme are:-
 A) Raising the motivation level of
entrepreneurs.
 B) Developing a goal directed behaviour
pattern.
 C) Raising positive thinking & belief.
 D) Arousing change oriented innovative psych.

C) Post training phase( follow-
up)
 This phase involves the assessment to
judge how far the objectives have been
achieved.
 The purpose behind EDP follow-up is to:-
 A) Review the pre-training work.
 B) Review the process of training
programme.
 C) Review past training approach.

Evaluation of EDP
 The following main criteria can be employed
to comment on the performance of
entrepreneurs:-
 1. Financial results
 2. Gestation period
 3. Capacity utilization
 4. Expansion and diversification
 5. Value addition
 6. Other factors

Role of EDP
 An Entrepreneurship Development Programme
primarily plays four roles to help an individual to
become an entrepreneur. They are:
 Stimulatory Role: It aims at influencing people in
large number to be the entrepreneur. This includes:
1. Developing managerial, technical, financial, and
marketing skills.
2. Inculcating personality traits.
3. Promotes and reforms entrepreneurial behavior and
values.
4. Identifying a potential entrepreneur applying scientific
methods.
5. Motivational training and building a proper attitude.
6. Strengthening the motive of a person and giving
recognition.

 Supportive Role: It helps in the following ways:
1. Registration of the business
2. Procurement of fund
3. Incubation support
4. Team building and team development support
5. Mentorship and guidance from industry
experts
6. Providing tax relief, subsidy, government
schemes etc.
7. Guidance in product marketing
8. Support for management consultancy

 Sustaining Role: It aims at providing an
effective safeguard to businesses to
sustain against the cut-throat market
competition. This includes:
1.Help in modernization, expansion, and
diversification
2. Additional financing for further
development
3.Global Networking Opportunities
4.Creating new marketing processes
5.Helping access to improved services
and co-working centers

 Socio-economic Role: It aims at upgrading the
socio-economic status of the public and
includes:
1. Identifying entrepreneurial qualities in
practicality.
2.Creating employment opportunities in micro,
small, and medium industries on an immediate
basis.
3.Arresting concentration of industries by
supporting regional development in a balanced
manner.
4.Focusing on the equal distribution of income
and wealth of the nation.

Govt. & Private institutions
 A number of government and private institutions are
providing assistance in India to entrepreneurs.
Some of them are listed below :
 Small Industries Development Organisation (SIDO),
 Commercial Banks,
 National Alliance of Young Entrepreneurs (NAYE),
 National Institute for Entrepreneurship and small
Business Development (NIESBUD),
 Entrepreneurship Development Institute of India
(EDI),
 India Investment Centre (LIC),
 Small-scale industrial Development Bank Of India
(SIDBI), and
 Technical Consultancy Organisation (TCO).

Importance of EDP
 The importance of EDP is as follows :-
 1) Formation of Employment Opportunities :
 2) Provides Adequate Capital :
 3) Proper Utilization of Local Resources :
 4) Increased Per Capital Income :
 5) Improved Standard of Living :
 6) Economic Independence :
 7) Preventing Industrial Slums :
 8) Reducing Social Tension :
 9) Facilitating Overall. Development :

Problems of EDP
 These are as follows:-
 1. No policies at national level:-
 2. Problems at pre-training phase:- identification of business
opportunities, finding & locating target group, selection of trainee &
trainers etc.
 3.Over estimation of trainees:-
 4. Duration of EDPs:-varies between 4 to 6 weeks, which is too short
period to instil managerial skills in entrepreneurs.
 5. Non availability of infrastructural facilities:-
 6. Improper Methodology:-course content are not standardized and
most of the agencies are not clear about what they are supposed to
do for the attainment of pre-determined goals.
 7. Mode of selection:- no uniform procedure adopted by agencies
for the identification of prospective entrepreneurs.
 8. Non availability of Competent faculty:- they are not prepared to
take classes in small towns and backward areas.
 9. Poor response of financial institutions:-entrepreneurs are not
able to offer collateral security for the grant of loans.

Thank you..!!!