EVALUATION THE PERFORMANCE OF ENTREPRENEURSHIP DEVELOPMENT PROGRAM
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.
3. WHAT IS EDP?
• 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.
4. NEED OF EDP
• 1. Creation of employment opportunity
• 2 Capital formation
• 3. Capital regional development
• 4. Use of local resources
• 5. Improvement in the standard of living
5. EVALUATION OF EDP
• Evaluation of entrepreneurship development programs assesses the efficacy,
degree of success, and the contribution of entrepreneurship development
programs in India. It delineates the factors contributing to the success or failure
of such programs, and evaluates the role of support agencies with reference to
the promotion of first generation entrepreneurs through EDPs.
• It was observed that one of every four trainees (26percent) actually started his/her
enterprise after undergoing entrepreneurial training.
• McClelland and Winter (1969) used the following criteria to assess the
effectiveness of EDPs in motivating the entrepreneurs.
6. QUALITATIVE EVALUATION OF EDP
• evaluating the EDPs is to assess their effectiveness in developing ‘need for
achievement’ among the entrepreneurs. This is also called the ‘qualitative
evaluation of EDPs.
• 1. Activity level of the respondents
• 2. New enterprise established
• 3. Total investments made
• 4. Investments in fixed assets made
7. 5. Number of people employed
6. Number of jobs created
7. Increase in profit
8. Increase in sales
9. Quality of product/service improved
10. Quicker repayment of loans
8. • In other behavioral experiments (Sah,et al, 1974) the impact of EDPs is measured
with the help of indices relating to the entrepreneurial behavior.
• The entrepreneurial behavior is measured on the following four dimensions :
• A. Planning orientation
• B. Achievement orientation
• C. Expansion orientation
• D. Management orientation
9. EVALUATION OF EDP IN INDIA
• One of the earliest attempts in this direction was made by a team of researchers
and experts appointed by the Gujarat Industrial and Financial Corporation to
evaluate the effectiveness of the EDPs. The most recent and nationwide
evaluation study on evaluation study on EDPs is one carried out by the
‘Entrepreneurship Development Institute of India, Ahmedabad (Awasthi abd
Sebastian 1996).
10.
11. • It is found that the effectiveness of the EDPs is around 26 per cent. In other
words, one out of every four trainees actually started his / her enterprise after
undergoing entrepreneurial training. However, the expected start-up rate is
slightly higher around 32 per cent.
• Out of 430 trainees who could not be contacted personally during the field survey,
according to the secondary sources, viz., family, friends, and neighbours, 17 per
cent of them have already given up the idea of venture launching as they are
engaged in some other activities.
• The effectiveness of EDPs cannot be considered as impressive because about 07
out of every 10 trainees did not start enterprises after undergoing the EDP
training. It means there are some problems or lapses here and there in
conducting the EDPs’. Therefore, there lies the need for looking at the problems
and constraints of EDPs.
12. PROBLEMS OF EDPS:
• EDPs suffer on many counts. The problems and lacunae are on the part of
all those who are involved in the process, be it the trainers and the
trainees, the ED organisations, the supporting organizations, and the state
governments.
• a. Trainer-motivations are not found upto the mark in motivating the trainees to start
their own enterprises.
• b. ED organisations lack in commitment and sincerity in conducting the EDPs. In
some cases, EDPs are used as means to generate surplus (income) for the ED
organisations.
13. • c. Non-conducive environment and constraints make the trainer-motivators’ role
ineffective.
• d. The antithetic attitude of the supporting agencies like banks and financial
institutions serves as stumbling block in the success of EDPs.
• Thus, it is clear that the problems are not with the strategy but with its
implementation.