Entrepreneurship Development Programmes
The main purpose of such entrepreneurship development programme is to widen the base of entrepreneurship by development achievement motivation and entrepreneurial skills among the less privileged sections of the society.â€
According to N. P. Singh (1985), â€œEntrepreneurship 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.â€ Now, we can easily define EDP as a planned effort to identify, inculcate, develop, and polish the capabilities and skills as the prerequisites of a person to become and behave as an entrepreneur.
Need for EDPs
- That, 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.
Then, the important question arises is: where do these traits come from? Or, whether these traits are in born in the entrepreneurs or can be induced and developed? In other words, whether the entrepreneurs are born or made? Behavioral scientists have tried to seek answers to these questions.
- A well-known behavioral scientist David C. Mc Clelland (1961) at Harvard University made an interesting investigation-cum-experiment into why certain societies displayed great creative powers at particular periods of their history? What was the cause of these creative bursts of energy? He found that â€˜the need for achievement (nâ€™ ach factor)â€™ was the answer to this question. It was the need for achievement that motivates people to work hard. According to him, money – making was incidental. It was only a measure of achievement, not its motivation.
In order to answer the next question whether this need for achievement could be induced, he conducted a five-year experimental study in Kakinada, i.e. one of the prosperous districts of Andhra Pradesh in India in collaboration with Small Industries Extension and Training Institute (SIET), Hyderabad.
- This experiment is popularly known as â€˜Kakinada Experimentâ€™. Under this experiment, young persons were selected and put through a three-month training programme and motivated to see fresh goals.
- One of the significant conclusions of the experiment was that the traditional beliefs did not seem to inhibit an entrepreneur and that the suitable training can provide the necessary motivation to the entrepreneurs (McClelland & Winter 1969). The achievement motivation had a positive impact on the performance of entrepreneurs.
- In fact, the â€˜Kakinada Experimentâ€™ could be treated as a precursor to the present day EDP inputs on behavioral aspects. In a sense, â€˜Kakinada Experimentâ€™ is considered as the seed for the Entrepreneurship Development Programmes (EDPs) in India.
The fact remains that it was the â€˜Kakinada Experimentâ€™ that made people appreciate the need for and importance of the entrepreneurial training, now popularly known as â€˜EDPsâ€™, to induce motivation and competence among the young prospective entrepreneurs.
- Based on this, it was the Gujarat Industrial Investment Corporation (GIIC) which, for the first time, started a three-month training programmes on entrepreneurship development. Impressed by the results of GIICâ€™s this training programme, the Government of India embarked, in 1971, on a massive programme on entrepreneurship development. Since then, there is no looking back in this front. By now, there are some 686 all-India and State level institutions engaged in conducting EDPs in hundreds imparting training to the candidates in thousands.