This chapter includes all the details of Environment & Entrepreneurial Development. The details are mentioned in short. I hope all these might help you in understanding.

1. Entrepreneurship Development
Lecture-3
Environment & Entrepreneurial Development

2. Topics to be covered :
• Entrepreneurial Environment and its Types
• Entrepreneurship Development Programme (EDP)
• Objectives of EDP
• Phases of EDP
• EDP Curriculum
• Entrepreneurial Development Training
• Importance & Objectives of Training Programme
• Methods of Training Programs
• Types of Training Programs
• Steps in Training Programs
• Institutions for ED

3. Entrepreneurial
Environment
Entrepreneurial Environment is a
combination of factors that play a
role in the development of
entrepreneurship.
Types of
Entrepreneurial
Environment
• Economic Environment
• Social Environment
• Psychological Environment

4. Economic Environment
• Economic Environment exercises the most direct and intermediate influence on
entrepreneurship
• This is likely because people become entrepreneurs due to necessity when there are no
other jobs or because of opportunity
• The economic factors that affect the growth of entrepreneurship are the following:
 Capital
 Labor
 Raw Material
 Market
 Infrastructure

5. Sociological Environment
• The activities of an entrepreneur covers a wide range in a conducive and
congenial social environment
• The social environment includes a number of social factors which are
critical for the growth of entrepreneurship and are listed as follows:
 Family Background
 Caste System
 Social Sanctions
 Religious Background
 Kith & Kin

6. Psychological Environment
• Many entrepreneurial theorists have propounded theories of
entrepreneurship that concrete especially upon psychological factors.
These are as follows:
 Need Achievement
 Withdrawal of Status Respect
 Motives

7. Entrepreneurship Development Programme (EDP)
• Entrepreneurship Development Programme is a training performed to
increase or enhance the Entrepreneurial skills of a person concern. It is
performed in three phases, they are as follows:
 Pre-Training Phase
 Training Phase
 Post Training or Follow-up Phase

8. Pre-Training Phase
• The Pre-Training Phase involves various activities that are as follows:
 Re-organizing an operationally Promising Area, normally a district
 Selecting a project leader for programme coordination
 Arranging infrastructure facilities for a programme
 Undertaking a potential survey for identification of good business opportunities
 Making goods contacts with support agencies like DIC, SISI, the District Magistrate, etc to
gain support for the execution of the programme
 Organizing industrial motivational campaign to mobilize the maximum number of
application

9. Training Phase
• This phase is about providing proper training and guidance to the potential
entrepreneur. The programme Design of this phase is explained in Table below:
Objectives Focus Inputs
Motivation and Reinforcement of
Entrepreneurial traits, confidence
buildings
Entrepreneur Behavioral Inputs
Facility Decision-Making progress to
set-up a new venture
Enterprise Establishment Business Opportunity guidance,
information and project
planning inputs, technical inputs
Successful and profitable operation
enterprise; Industrial Exposure
Enterprise management; first
hand knowledge of factory
layout; building sits; etc

10. Post Training Phase
• After taking trainings from EDP Institutions, the potential entrepreneur faces a number of problem
while executing plans in business project
• Hence in this phase the training institutes try to solve the problem of entrepreneurs through
councelling
• A committee formed with members from different institutions like DICs, SFCs ect helps
entrepreneurs by providing proper guidance
• After Completion of training, the follow-up meeting are arranges three time a year.
• The four methods for follow-up are:
 Postal Questionnaire
 Telephonic Follow-up
 Personal Contact with the trainer
 Group Meetings

11. EDP Curriculum
• EDP institutes follow a systematic course curriculum for the entrepreneurship
training conducted in the country.
• Usually, EDP Training is conducted for 4-6 weeks, which is enough for an
entrepreneur to gain the basic knowledge. This pratical training involves the
following units:
 Introduction to the fundamentals of Entrepreneurship
 Motivational Inputs
 Management Inputs
 Support System Procedure
 Project Feasibility Studies
 Plant Visits/ Industrial Exposure

12. Entrepreneurial Development Training
• Entrepreneurship Development Training is the application of knowledge in a
practical field and it can be defined as a process of learning sequence of
programmed behavior
• Training gives awareness of the rules and procedure to guide their behavior,
improve performances
• In order to achieve this objective, any training programme should try to bring
about positive changes in:
 Knowledge
 Skills
 Attitude

13. Importance of Entrepreneurial Development Training
• Helps in increasing potential abilities of entrepreneurs
• Helps to increase performance and efficiency of entrepreneur
• Ensures the availability of skilled entrepreneurs at all levels of Organization
• Enables entrepreneurs to perform their work more efficiently and precisely so as to
maintain the quality of product manufactured by them
• Helps minimize excessive strap, defective output, and wastage in production process
• Reduces fatigue
• Enables entrepreneurs to work more speedily, thereby increase their earning
• Helps to maintain good relation between management and entrepreneurs
• New technologies can easily adapted through trained entrepreneurs
• Team Spirit and Work Ethics can be promoted when entrepreneurs are well trained
• Minimize Supervision Cost
• Enables management to face the pressure of changing environment
• Leads to job satisfaction and higher morale of the entrepreneurs
• Trained Entrepreneurs can make better use of Economic Materials

14. Objectives of Entrepreneurial Development Training
• To impart basic knowledge about industry, product and production methods
• TO build necessary skills of new entrepreneurs
• To assist entrepreneur work more efficiently in his/her present position by exposing him
to the latest concepts techniques and information
• To build up second line of entrepreneur and prepare them to shoulder additional
responsibility
• To expose entrepreneur to the latest developments which can directly or indirectly affect
them
• To broaden the vision of entrepreneurs by providing them suitable opportunities for
exchange of experiences within and outside an industry
• To provide the knowledge about the marketing of goods to the entrepreneurs

15. Methods of Entrepreneurial Development Training
• Individual Instruction Method
• Group Instruction Method
• Conference Method
• Lecture Method
• Demonstration Method
• Meetings Method
• Written Instructional Method

16. Individual Instruction Method
• A single entrepreneur is selected for training
• This mode of training is undertaken when a complex task is to be taught
to an entrepreneur
Group Instruction Method
• This method of training is suitable for a group of entrepreneur involved
in performing similar type of tasks

17. Conference Method
• Expert provide training related to new technologies to the
entrepreneur
• The main aim of using this methods of training is to encourage the
adoption of new ideas and technologies in order to increase
production
Lecture Method
• The instructor communicates in theory the practice to be followed by
entrepreneur
• Under this mode of training, any doubts regarding the task are clarified
on the spot

18. Demonstration Method
• This method of training is employed when the execution of the task is
to be shown by the trainer to the entrepreneur for better
understanding of the jobs
• This method is mostly used for providing training for practical tasks
rather than for theoretical knowledge

19. Meetings Method
• This method of training involves a group of entrepreneurs discussing
the various complex problems confronting them
Written Instruction Method
• This medium of training is followed when a future reference can be
made by the entrepreneurs.
• This method is mostly followed where a standardized system is
followed

20. Types of Training Programme
• Structured Training Programme
• Semi-Structured Training Programme
• Unstructured Training Programme

21. Structured Training Programme
• A syllabus and daily programme schedule are drawn by the training institutions
according to the needs of the entrepreneurs and different topics are covered under
a stipulated time frame
Semi-Structured Training Programme
• This training programme is made with the assumption that necessary changes are
made and when required based on the needs of entrepreneurs
Unstructured Training Programme
• The entrepreneur themselves structure the day to day programme. The objectives
of the programme must be very clear both to the trainer and the entrepreneur

22. Steps in Training Programme
Training is a costly and time consuming process. Following are the steps which are
involved in training programme:
1) Identifying Training Requirements
2) Preparing Instructions for Training
3) Preparing the Entrepreneurs
4) Implementing the Operations
5) Checking the Performance of the Entrepreneurs
6) Follow-up the Training Programmes

23. Institution for Entrepreneurship Development
1) Small Industries Service Institutions (SISI)
2) National Institute for Small Industry Extension & Training (NISIET)
3) Entrepreneurship Development Institute of India (EDII)
4) National Institute for Entrepreneurship and Small Business Development (NIESBUD)
5) National Science & Technology Entrepreneurship Development Board (NSTEDB)
6) Institute of Entrepreneurship Development (IED)
7) Centre for Entrepreneurship Development (CED)

24. THANK YOU