Schumpeter's innovation theory emphasizes that innovation is crucial for economic growth and competitiveness, integrating four dimensions: invention, innovation, diffusion, and imitation. Entrepreneurial Development Programs (EDPs) are vital for cultivating entrepreneurial skills and capabilities, targeting potential entrepreneurs to enhance industrial activity and support economic growth. The Atma Nirbhar Bharat Abhiyan is a comprehensive initiative aimed at boosting entrepreneurship through financial packages and structural reforms across various sectors.

1. Namrata K

2. Schumpeter’s Innovation theory
The concepts of innovation and entrepreneurship are probably Schumpeter’s
most distinctive contributions to economics for economic growth.
Schumpeter argued that anyone seeking profits must innovate. It will cause the
different employment of economic system’s existing supplies of productive means.
He believed that innovation is considered as an essential driver of competitiveness
and economic dynamics. It is the center of economic change causing gales of
“creative destruction”, which is a term created by Schumpeter in Capitalism,
Socialism and Democracy described development as historical process of
structural changes.

3. Schumpeter’s innovation theory
He divided the innovation process into four dimensions: invention, innovation,
diffusion and imitation and dynamic entrepreneur in the middle of his analysis
five types of innovation:
1. launch of a new product or a new species of already known
product;
2. application of new methods of production or sales of a product
3. opening of a new market
4. acquiring of new sources of supply of raw material or semi-finished
goods;
5. new industry structure such as the creation or destruction of a
monopoly position.

4. Risk Bearing Ability & Organiser of
Resources
According to Knight, is the economic functionary who undertakes such
responsibility of uncertainty which by its very nature cannot be insured, or
capitalized or salaried.
Jean-Baptiste Say, the French political economist,associates entrepreneur
with the functions of coordination, organization and supervision. He shifts
economic resources out of an area of lower productivity and into an area of
higher productivity and greater yield. Thus,he made a clear distinction
between the role of the capitalist as a financer and the entrepreneur as an
organizer. To play such a role, he must possess the art of superintendence and
administration.

5. Entrepreneurial Development Programmes
Entrepreneurial development is a systematic and an organized
development of a person to an entrepreneur. It is key to achieve
overall economic growth & development through higher level of
industrial activity especially boosting small scale industries.
Entrepreneurial development programmes may be defined as a
programme designed to help an individual in strengthening his
entrepreneurial motive and in acquiring skills and capabilities
necessary for playing his entrepreneurial role effectively.

6. Entrepreneurial Development Programmes
The development of an entrepreneur refers to inculcate the
entrepreneurial skills into a common person, providing the
needed knowledge, developing the technical, financial, marketing
and managerial skills, and building the entrepreneurial attitude.
The whole point of entrepreneurship development is to increase
the number of entrepreneurs through support system for
advancing their skills. It encourages them to make better
judgments and take a sensible decision for all business activities.

7. Entrepreneurial Development Programmes
It is the process of improving the skills and knowledge of entrepreneurs
through various training and classroom programs.
Another essential factor of this process is to improve the capacity to manage,
develop, and build a business enterprise keeping in mind the risks related to
it. It improves business ecosystem and the nation’s economy.
An effective framework to develop the qualities to respond external
opportunities and organisational factors to help potential entrepreneurs.

8. Evolution of EDP
“The entrepreneurs required a lot of information for setting up a business
and in that context the contribution of these programmes was essentially in
the area of disseminating knowledge on financial, technical and managerial
aspects. To that extent, these programmes were not basically programmes
towards entrepreneurship development, but were in the nature of
supportive programmes for the existing and the new entrepreneurs.”

9. Rationale of EDP
(i) EDP is meant for developing those first generation entrepreneurs who on their
own cannot become successful owners of enterprises.
(ii) The effective entrepreneurial class is necessary to speed up the process of
activating the factors of production to ensure higher rate of economic growth.
(iii) EDP ensures potential entrepreneurs of backward and tribal areas to set up
their enterprises with the help of government and institutional support system.
(iv) EDP helps in dispersal of economic activities in different regions by providing

10. (v) EDP develops the persons who are interested to work as job providers by
establishing enterprises not to those who are job seekers. Thus, it helps in
creation of employment opportunities.
(vi) EDP improves the standard of living of the weaker sections of society and
involvement of all sections in the process of economic growth.
(vii) EDP develops motivation and competence necessary for successful
launching, management and growth of the enterprise.
It motivates potential entrepreneurs to convert their dreams to action in a
continuous process through T&D to set up enterprises in a big way.

11. Atma Nirbhar Bharat Abhiyan ' or 'Self-Reliant India Mission'
An economic package announced on 12 May 2020 numerous government decisions have taken place
such as changing the definition of MSMEs, boosting private participation in numerous sectors and
entrepreneurship by a large financial package. Laying the foundation stone for self-reliant India
based on five pillars – Economy, infrastructure, tech-driven system, vibrant demography and
demand.
The Five phases of Atma Nirbhar Bharat are:
Phase-I: Businesses including MSMEs
Phase-II: Poor, including migrants and farmers
Phase-III: Agriculture
Phase-IV: New Horizons of Growth
Phase-V: Government Reforms and Enablers

12. Policy Highlights
Increase in borrowing limits:
Privatization of Public Sector Enterprise (PSEs):
Collateral free loans for SMEs/ businesses:
Corpus for MSMEs:
Subordinate debt for MSMEs: Credit Guarantee Fund Trust for Micro and Small
Enterprises,
Schemes for NBFCs: A Special Liquidity Scheme was announced under which Rs 30,000
crore of investment will be made by the government in both primary and secondary market
transactions in investment grade debt paper of Non-Banking Financial Companies
(NBFCs)/Housing Finance Companies (HFCs)/Micro Finance Institutions (MFIs).

13. Employee Provident Fund (EPF) / Statutory PF contribution:
Technology Driven education:
Street vendors (upto Rs 10,000 working capital )
Allocation for MGNREGS:
Public health (National Digital Health Blueprint )
Viability Gap Funding (VGF) for social infrastructure projects
45,000 crore liquidity infusion through Partial Credit Guarantee Scheme
All GOI central agencies (Railways, Ministry of Road and Transport, Central Public
Works Department, etc.) will now be providing a 6 months extension to contractors
Tax Deduction at Source (TDS) for non-salaried specified payments made to residents and
Tax Collection at Source (TCS) for the specified receipts will be reduced by 25%.

15. Objectives of EDP:
● Develop and strengthen the entrepreneurial quality, i.e.
motivation or need for achievement.
● Analyse environmental setup relating to small industry and
small business.
● Select the product.
● Formulate proposal for the product.
● Understand the process & procedure involved in setting up a
small enterprise.
● Make him learn compliance with law & procedural formalities.

16. ● Know the sources of help & support available for
starting a SSI.
● Acquire the necessary managerial skills to run a
SSIs.
● Know the pros and cons in becoming an entrepreneur.
● Appreciate the needed social responsibility/
entrepreneurial discipline(repayment behaviour, tax,
progressive outlook of labour, environmental
concern).
● Accept industrial democracy and coordinate all
statutorily obligatory paperwork.

17. Besides, some of the other important objectives of
the EDPs are to:
● Let the entrepreneur himself set or reset objectives for his
enterprise and strive for their realization.
● Prepare him / her to accept the uncertainty in running a
business.
● Enable him / her to take decisions strategically.
● Enable to communicate clearly and effectively.
● Develop a broad vision about the business and integrate his
function with him.
● Develop passion for integrity and honesty.

19. Balanced Regional
Development-MSMEs
Eliminating Poverty and
Unemployment
Impart Training &
Promote Innovations
Defuses Social Tension
Economic Growth
Development of
Rural & Backward
Areas Ecosystem to establish
new enterprises
Optimum use of
Resources
IMPORTANCE OF EDP

20. Entrepreneurship Development
Programme Curriculum
1. General Approach to Entrepreneurship & Risk bearing
2. Motivational Training(experience & confidence building)
3. Developing Management Skills
4. Training for Project Management & feasibility
5. Structural Arrangement and familiarising with supportive, legal systems so.
6. Support System
7. Factory Visits/In-Plant Training

22. Entrepreneurship Development
Programme – Process
Step # 1. Selection of Potential Entrepreneurs:
Step # 2. Identification of Entrepreneurial Traits and Skills:
(Family Background , Human Resource & Motivational Factors)
Step # 3. Identification of Enterprise:
Step # 4. Contents of Training Program:
(Technical, achievement motivation, support,market survey, Managerial)
Step # 5. Support System:
Step # 6. Production:
Step # 7. Monitoring and Follow Up:

23. Selection of
potential
entrepreneurs
Identification
of Traits
Identification
of enterprises
Training
Program
Course
Curriculum
Support
System
Production
Monitoring & Follow
up
Process

24. Phases Of EDP
Three Phases :
1. Pre-Training Phase
2. Training Phase
3. Post Training Phase ( Follow up)

25. Pre-Training Phase
}Selection of Entrepreneurs(Psychological, Group,TAT, Aptitude)
}Arrangement of infrastructure
}Tie-up of Guest Faculty for training purposes.
}Arrangement for inauguration of programme.
}Development of Application Form
}Finalisation of training syllabus
}Formation of Selection Committee for selecting trainees.

26. 2. Training Phase
The main purpose of training is to develop ‘need for
achievement’, risk aptitude and group motivational skills
to take control of things among the trainees to check
the perceptible change in their entrepreneurial attitude,
outlook, skill , role, etc.

27. 3) Post – Training Phase
The ultimate objective of EDP is to prepare the participants
start their enterprises also, called Follow – up stage.The
purpose mainly is to:
A) Review the pre- training work.
B) Review the process of Training Programme
C)Review post training approach.

28. Institutions Involved in Providing
EDPs in India
1. Indian Institute of Entrepreneurship (IIE):
It is an autonomous organization under the Ministry of Skill
Development & Entrepreneurship registered under the Societies
Registration Act,1860 was established in the year 1993 in
Guwahati. The Institute began operating from April 1994 with the
North East Council (NEC), Governments of Assam, Arunachal
Pradesh and Nagaland and SIDBI as its other stakeholders. The
Institute is engaged in providing training, consultancy, and
conducting research activities in Small and Micro Enterprises
(SME), with special focus on entrepreneurship development.

29. OBJECTIVES
1. To promote and develop entrepreneurship.
2. To conduct research and provide consultancy for entrepreneurship
development.
3. To coordinate and collaborate with other organizations in undertaking
training, research and other activities to increase outreach of the institute.
4. To provide consultancy and monitoring service to MSMEs/ potential
entrepreneurs and enhancing employability of participants.
5. To promote greater use of information technology in the activities/
functions of the IIE.
6. To comply with statutory responsibility.

30. EDII situated in Ahmedabad is a non-profit autonomous organisation. It has been
sponsored by financial institutions such as IDBI, IFCI, ICICI, and SBI. It is also
assisted by the government of Gujarat. EDII has been assisting the creation of centers
for entrepreneurship development & institutes of entrepreneurship development in
various states of the India.
The EDII aims to enhance the spirit of entrepreneurship and the levels of skills by
opening various sustainable entrepreneurial paths and accelerating system for
entrepreneurship. EDII has established a Centre for the Research in Entrepreneurship
Education and Development, also known as CREED, investigating a wide array of
issues concerning the Small & Medium Enterprise sector with an extensive network of
researchers and trainers. EDII have helped it to earn accolades and support from
international organisations such as World Bank, Commonwealth Secretariat, UNIDO,
ILO, British Council, Ford Foundation, European Union, ASEAN Secretariat & other.
Entrepreneurship Development Institute of India (EDII):

31. 3. National Institute for Entrepreneurship & Small Business Development
(NIESBUD):
NIESBUD under the Ministry of Industry, Govt. of India was set up in 1983 as
an apex body to co-ordinate the activities of various institutions engaged in
entrepreneurship development especially in the area of small scale industry. It
is also involved in conducting training programmes for entrepreneurs and
trainees. NIESBUD is engaged in preparing model syllabi for training various
target groups, undertaking research documentation, conducting seminars and
developing training as well as teaching aids.

32. 4. Centre for Entrepreneurship Development CED, Gujarat:
established in 1979 by the Gujarat government. Its EDP is one of
the oldest entrepreneurship development programme in India.
Objectives of CED:
● To promote self-employment and entrepreneurship culture .
● To enhance employability of educated youth through
industry specific skill training
● Women empowerment through Women Entrepreneurship
Development Programme

33. ● NGO Capacity building for employment generation in the rural
areas.
● To conduct Sector Specific EDP
● To conduct Awareness Camps
● To conduct FDP in Entrepreneurship at institutions.
● To conduct Bankers / Development Officials Sensitization
Programme on Small Industry.
● To conduct Skill Development Courses in Catering Technology,
Fashion Technology and Information Technology.
● To undertake industry consultancy, research assignments & so.

34. 5. National Institute of Small Industry Extension Training (NISIET)
Hyderabad:
It is an autonomous body under Ministry of industry. NISIET has been providing
training, conducting research and consultancy activities for the development of
small industry.
6. Small Industry Service Institute (SISI):
SISI established by Government of India offers vast variety of services like
conducting market survey, technology demonstration, preparation of techno-
economic feasibility reports, marketing of products, product standardization,
management consultancy, training etc. to potential and existing entrepreneurs.
7. SBI’s Programmes:
The State Bank of India has been conducting EDPs particularly in the backward
areas across different states of India.

35. 8. Rural Development and Self-Employment Training Institute (RUDSET):
RUDSET has been jointly sponsored by Canara bank and Syndicate bank. It is
engaged in promotion of entrepreneurship.
9. Science and Technology Entrepreneurship Development (STED):
Under the Department of Science 6th Technology, Govt. of India, STED, is an
autonomous organization involved in entrepreneurial development and
employment generation through science fit technology inputs.
10. Xavier Institute of Social Services – Ranchi:
Department of entrepreneurship development programmes of XISS, Ranchi has
been engaged in conducting various entrepreneurship development programmes
and skill development programmes of national level since 1974. It has been
supported by funding agencies like, Industrial Development Bank of India and
Industrial Finance Corporation.

36. Small Industries Development Organisation (SIDO)
● Runs EDP in collaboration with financial institutes, directorate of industries
● Gives on the job training on shop floor (carpentry, electrical devices)
● Sends its officials/trainers to organisations to update their knowledge
National Small Industries Corporation (NSIC)
● Provides apprenticeship for 2 years
● Training supervisory staff of SSI up to 2 years
● Training to engineers up to 2 years
● Training workmen for 12 months
● Training to set up own venture
● Advice on machinery and components
● Production of technologically advanced machines

37. National Alliance of Young Entrepreneurs (NAYE)
·
· Contribution in encouraging women entrepreneurship
Set up women’s wing in 1975 identifying investment opportunities
Getting better access to resources, infrastructure, markets
· Attending to problems of individual industries/ sectors.
· Sponsor participation in trade fairs, exhibitions, conferences
· Organise seminars, training programmes, workshops

38. Institute of Entrepreneurship Development
IED Odisha was established in the year 1987 with an aim to inculcate
the value of entrepreneurship to the educated unemployed youth in the
state and to motivate them to enter into the field of self employment.
Management Development Institute (MDI)
● Presently the institute is focusing on skill based training for the
youth.
● Promote micro, small and medium enterprises through innovative
and need based entrepreneurship trainings.
● The institute has to act as a national pace setter in the field of
entrepreneurship education, consultancy, research study, training
and development.

39. National Science & Technology Entrepreneurship Park (STEP)
The Science Parks and similar initiatives help in creating an atmosphere for
innovation and entrepreneurship; for active interaction between academic
institutions and industries for sharing ideas, knowledge, experience and facilities
for the development of new technologies and their rapid transfer to the end user.
Objectives
● To forge a close linkage between universities, academic and R&D
institutions on one hand and industry on the other.
● To promote entrepreneurship among Science and Technology persons,
many of whom were otherwise seeking jobs soon after their graduation.
● To provide R&D support to the small-scale industry mostly through
interaction with research institutions.
● To promote innovation based enterprises.

40. 11. Development Commissioner (MSME) under Ministry of MSMEs
The Govt, of India through Development Commissioner (MSME) under
Ministry of Micro, Small & Medium Enterprises has been undertaking various
programmes related to entrepreneurship development. These programmes
include a large number of vocational and entrepreneurship development
programmes and other related programmes for entrepreneurship and skill
development.
(i) Entrepreneurship Development Programmes (EDPs):
(ii) Entrepreneurial Skill Development Programme (ESDP):
(iii) Management Development Programmes (MDPs):

42. ● To promote self-employment and
entrepreneurship culture.
● To enhance employability of
educated youth through industry
specific skill training
● Women empowerment
● Sensitization Programme/
incubation on Small Industry.
● Sector Specific EDP-Industry
consultancy, Technological
advances & research assignments

43. Problems faced by entrepreneur development
programmes:
The problems are the part of those who are involved in process such as:
i. The trainers
ii. The trainees
iii. The Entrepreneur Programme Organization
iv. The supporting organization
v. The State Government.

44. Problems faced by entrepreneur development
programmes:
1. Lack of National Level Policy:
2. Difficulty in Pre-Training Phase:
3. Over estimating motivation of Trainees:
4. Time Period of EDPs(3-6 months):
5. Lack of Infrastructure Facility:

45. Problems faced by entrepreneur development
programmes:
6. Wrong Selection Procedure of trainees:
7. Absence of Competent Management or Faculty:
8. Non-Availability of Inputs:
9. Lack of Standardization:
10. Other Problems:Multiplicity of Government Agencies

46. Other Problems
1) Improper Identification and Wrong Selection
2) Undue Delays in Implementation
3) Faulty Selection of Candidates
4) Lack of Infrastructure Facilities
5) Lack of Competent Faculty
6) Poor Financial Management

47. Other Problems
7) Shortage of Technical Manpower
8) Multiplicity of Government Agencies
9) Shortages or Irregularities in Supply
10) Too much Dependence on Middlemen
11) Unsatisfactory Services
12) Duration Period of EDPs

48. Suggestions for improving ED Programs
1) Proper Balance between Stimulating, Supporting and Sustaining Activities:
2) Selection of Trainees:
3) Need for Experienced and Competent Trainers:
4) Capacity & Role of Trainers:
5) Designing of a Viable Project:
6) Focus on Achievement Motivation:
7) Organising Part Time Programmes: