Development and Training of Entrepreneurship

-Yuva Prasaad.P INTRODUCTION: Entrepreneurial training and development can be defined as "a programme designed to help an individual in strengthening his entrepreneurial motive and in acquiring skill and capabilities necessary for playing his entrepreneurial role effectively. It is necessary to promote his understanding of motives and their impact on entrepreneurial values and behavior for this purpose. The participants are exposed to a general knowledge of entrepreneurship such as factors affecting small-scale industries, the role of entrepreneur in economic development, entrepreneurial behavior and the facilities available for establishing small-scale enterprises. The Training inputs under this aim at inducing and increasing the need for achievement among the participants. This is in fact, a crucial input of entrepreneurship training. Efforts are made to inject confidence and positive attitude and behaviors among the participants towards business. It ultimately tries to make the participants to start their own business enterprise after the completion of the training programme. Successful entrepreneur are invited to speak about their experience in setting up and running a business which will give motivation to the participants. Furthermore, running a business, large (or) small, requires managerial skill. Since a small entrepreneur can't employ a manager he should be imparted with the requisite managerial techniques in the functional areas like finance, production and marketing. Knowledge of managerial skill enables an entrepreneur to run his enterprise smoothly and successfully. The ultimate objective of entrepreneurship training programme is to make the trainee prepared to start this own enterprise after the completion of the training programme. This is the measure of success levels of the EDP Objectives of Entrepreneurial Training and Development (ETD)
1. To let him set & reset the objectives for his business and work individually and along

with his group for the realization of them.

2. To prepare him for accepting to totally unfore seen risks of business for a long time after

3. 4. 5. 6.

such training & development To enable him to take strategic decision To enable him to build and integrate team equal to the demands of tomorrow To communicate fast, clearly & effectively To develop a broad vision to see the business as a whole and to integrate his function with it

7. To enable him to relate his product and industry to the total environment; to find what is significant in it and to take it into account in his decision and actions 8. To enable him cope up and co-ordinate the different types of paper work, most of which is statutorily obligatory 9. To make him subscribe to industrial democracy that is, accepting workers as partners in enterprise and, 10. To strengthen his passion for integrity, honesty and compliance with the law which is the key to success in the long-run. 11. To let him set & reset the objectives for his business and work individually and along with his group for the realization of them. 12. To prepare him for accepting to totally unforeseen risks of business for a long time after such training & development 13. To enable him to take strategic decision. 14. To enable him to build and integrate team equal to the demands of tomorrow 15. To communicate fast, clearly & effectively 16. To develop a broad vision to see the business as a whole and to integrate his function with it. 17. To enable him to relate his product and industry to the total environment; to find what is significant in it and to take it into account in his decision and actions. Entrepreneurial Development Models The models suggested for the development of entrepreneurship can be stated in the following categories: a) The Psychological models. b) The Sociological models. c) The Integrated models. Psychological Models McClelland (1961) has given a significant lead in identification of determinants of entrepreneurship. In his model he ascribes more importance to achievement motives which earlier related to child rearing practices. But in his recent book with D.G.Winter he has altered his earlier proposition on the importance of child rearing as the intrinsic determinant of the achievement motive to now change in motivation is seen primary as a result of the ideological arousal of latent need for achievement among adults. After identifying achievement orientation as the key variable in the development of entrepreneurship of McClelland suggests will make them really willing and eager to exploit the new opportunities provided. John Kunkel (1965) considered the entrepreneurial supply by suggesting a behaviouristic model. His model suggests that entrepreneurial behavior is a function of the surrounding social structure both past and present, and can really be influenced by manipulable economic and social incentives. So Kunkels model is based upon experimental psychology which identifies sociological variables as the determinants of entrepreneurial supply. Sociological Models Frank W. Youngs theory of entrepreneurship is a theory of change based upon societys incorporation of relative sub-groups. The relativeness of a sub-group which experiences low status in the larger society will lead to entrepreneurial behavior if the group has better

institutional resources than others in the society at the same level. Youngs model of entrepreneurship suggests creation of supporting institutions in the society as the determinants of entrepreneurship. Integrated Models T.V.Rao (1975) in Entrepreneurial Disposotion has included the following factors: i. Need for Motive: The dynamic, which for the prospective entrepreneur has the greatest possibility of achieving the goals if one performs those activates. ii. Long-term Involvement: It is the goal either at thinking level or at activity level in the entrepreneurial activity that is viewed as a target to be fulfilled. iii. Resources: Personal, social and material resources, which he thinks, are related to entry and success in the area of entrepreneurial activity. iv. Socio-Political System: To be perceived as suitable for establishment and development of his enterprise.

Entrepreneurship Development Institute The Entrepreneurship Development Institute of India (EDI), an autonomous and not-for-profit Institute, set up in 1983, is sponsored by apex financial institutions - the IDBI Bank Ltd., IFCI Ltd., ICICI Bank Ltd. and State Bank of India (SBI). The Government of Gujarat pledged twenty-three acres of land on which stands the majestic and sprawling EDI campus. Courses offered: a) Post Graduate Diploma in Management-Business Entrepreneurship b) Post Graduate Diploma in Management-Development Studies c) Post Graduate Diploma in Management (Executive)-Enterprise Creation & Growth Stages Of Entrepreneurship Development

An entrepreneur will go through highs and lows in their career. Typically the lows are very much in the early stages as youre learning to master your trade and trying to maintain the momentum to keep banging the door down to make sales. When you reach the highs and become established it tends to stick and it is at this point you end your first journey as an entrepreneur and move onto something else or in some cases, retire. The First Steps The first steps an entrepreneur takes are usually very small. It often starts with an initial idea, a little bit of research and then some minimal investment and this is absolutely the right thing to do. I cant tell you the amount of times Ive seen people walk into the world of business and fall at the first hurdle because they have tried to run before they can walk and it is of utmost importance you dont let this happen to you. Take your initial idea seriously but dont fall too in love with it. Always try to keep a clear mind about the potential and dont get to caught up in the dream of having your product selling millions of copies every year. Spend some time nursing the idea and make a small investment in making it happen. The most important thing is that you dont delay and leave it until tomorrow as youll pick up bad habits and procrastinators rarely make good business people. Standing Tall You should feel as though you are in the standing tall phase a few months after youve taken your first steps. By this stage you should feel very comfortable and assured being an entrepreneur and should be making some money from your ventures. The standing tall phase is by far the most risky phase of being an entrepreneur. For many the road will stop right here, they either wont have the confidence to give their an idea a real go or ultimately may be more afraid of success than failure and will quit moments before they are a success. This stage is the true entrepreneurs test and if you pass this you are well on your way. Achieving Goals & On The Up This is the final phase I am going to talk about today. Of course there is a very good chance that there will be more on the road ahead after this but that varies for everyone. The good news is if youve reached this step you have officially made it as an entrepreneur, on what scale is down to you. You should now be reaching your financial goals from your venture and be seriously looking to expand in the near future. You will have finally earned the respect of your friends and family and can now safely call yourself an expert entrepreneur. It will take a lot of hard work, a bit of luck and huge amounts of motivation but if youve got here you can now enjoy the fruits of success. Conclusion: It is clear that, Entrepreneurial training and development is an organized and systematic effort. It is now regarded as a tool and a solution to unemployment problem. The significant aspect involved in the entrepreneurial training and development is to motivate a person for entrepreneurial career to make him capable, perceiving and exploiting successful opportunities forth enterprises.
Case study

Entrepreneurship in Nigeria

Africa is the poorest, less-developed continent in the world. In most countries in Africa, the governments have typically played a significant role in determining the course of development. Many state-owned enterprises in Africa were created when it was believed that the fastest route to development occurred when the state took on the role of the entrepreneur. Unfortunately, in many countries, the performance of these state-owned firms, or parasatals, has been substandard. Part of the problem with the state-owned enterprises is that they are run by bureaucrats and are plagued with red-tape. Thus, these firms are typically run according to state procedures, instead of according to cost-cutting and profit-maximizing concerns. The typical result is rampant inefficiency (Elkan, 1988). Although Nigeria was at one time characterized by such inefficiencies, it has recently has pursued entrepreneurship encouragement policies, and the initial indicators suggest that the policies have been successful. In Nigeria the state-owned enterprises traditionally clogged business opportunities and state restrictions prevented entrepreneurs from entering the market. However, in the mid-1980s, Nigeria abolished its marketing board, which prevented entry into certain industries, and opened up its markets to competition from domestic entrepreneurs. Additionally, lower taxes and increased price ceilings have increased the incentives to entrepreneurs. Although Nigeria is still plagued by many development problems, "preliminary evidence suggests a favorable response by the private sector to the new entrepreneurial opportunities thus created" (Elkan, 1988). Reference: Asian Organization Productivity, Entrepreneurship Development for Competitive Small and Medium Enterprises Ramachandran; Entrepreneurship Development, Tata McGraw-Hill Uddin, Sami; Entrepreneurial development in India http://www.articlesbase.com/entrepreneurship-articles/entrepreneurial-training-anddevelopmentsome-thoughts-1483800.html http://technopreneurial.com/articles/cases.asp