1. Selection of potential entrepreneurs:
The first and foremost step in the EDP is the proper and right selection and identification of potential entrepreneurs. It refers to find out individuals who can be converted into entrepreneurs. The utmost care should be taken in identifying the right participants for the EDP.
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Before selecting the person for tainting due recognition should be provided to his family background, motivation level, educational qualification and entrepreneurial skill and competencies. Various modes of selections such as test, group discussions and interviews may be adopted in the selection of potential entrepreneurs.
The two essential components such as identification of entrepreneurial qualities in the potential entrepreneurs and identification of suitable and viable opportunity or project for each identified entrepreneur should be kept in mind in selection of potential entrepreneurs.
2. Identification of entrepreneurial traits and skills:
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Every participant must have a minimum level of eligibility for becoming an entrepreneur. The entrepreneurial traits are broadly grouped into two categories:
(a) Family background:
The knowledge about the family background of a participants help to create entrepreneurial environment and occupational awareness for the entrepreneurs.
There are certain special types of families traditionally involved in certain types of work. Most people prefer to adopt similar tasks to family business.
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(i) Family background:
The knowledge about the family background of a participant helps to create entrepreneurial environment and occupational awareness for the entrepreneurs.
There are certain special types of families traditionally involved in certain types of work. Most people prefer to adopt similar tasks to family business.
(ii) Age:
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Different studies have proved that younger people are more successful entrepreneurs. This may be their higher risk taking ability as compared to older people and creative and innovative thinking.
(iii) Education level:
The educational level of participant must be given due consideration. A minimum level of education and types of education play a very significant role in the success of new enterprise.
(iv) Size and type of family:
The size and types of entrepreneur’s family must also be considered. A joint family has generally a greater risk-bearing capacity as compared to nuclear family.
(v) Working hands:
The working hand of family member of a potential entrepreneur also counts much.
(vi) Social participation:
The social participation of potential entrepreneur will determine his social status in the society. Greater social participation improves the ability to influence others and the success of the entrepreneur.
Therefore, priority should be given to those persons having experience in business, a functional level of education, young, family and financial support while selecting candidates for EDP.
(b) Human Resource Factors:
These are the inherited or acquired skills. The following human resource factors must be considered.
(i) Achievement motivation:
It is the bases of entrepreneurship an entrepreneur with high need achievement succeed better. It involves both personal achievement and social achievement.
(ii) Willingness to take risk:
Risk-taking willingness refers to seek change in business activity. The person perceiving greater amount of risk in the venture has the higher risk taking willingness.
(iii) Influencing ability:
The entrepreneur would need adequate motivation to both influence and control the people and environment to achieve the end to successful.
(iv) Personal efficacy:
It is the general sense of adequacy in a person. Personal efficacy is an important factor contributing to entrepreneurial behavior of a person. It represents the potential effectiveness present at the inner level. The roots of efficiency of a person lie in his perceptions and beliefs about himself.
These beliefs may be the result of an individual’s self-concept and perception of his own strength. Thus, personal efficacy can be defined as the tendency in the individual to attribute success or failure to external factors.
A person having higher personal efficacy believes in his capacity to control and shape the environment while an individual having low personal efficcy7 believes that things arte not under his control and occur due to fate.
(v) Aspirations:
Aspiration is goal statements relating to future level of achievement. These are relating to future prospects of an individual’s desire. It is a form of self-motivation also. A person having low level of aspiration is not likely to become an entrepreneur.
3. Identification of enterprise:
It is essential to identify a suitable enterprise or project for potential entrepreneur after studying his socio-personal and human resource characteristics. The entrepreneurial project must be suited to the requirements of potential entrepreneurs.
A number of factors such as his skill, experience, physical resources, family occupation etc. should be taken in consideration before selecting an enterprise. After deciding the enterprise, the potential entrepreneur has to study the viability in terms of financial resources, availability of raw materials, marketing, profitability etc.
4. Contents of training programme:
There are different kinds of participants having different backgrounds and qualities to attend the entrepreneurial development programme. The following types of training are provided during the time duration of programme.
(a) Technical knowledge and skills:
After the choice of a particular enterprise by a potential entrepreneur, the in-depth knowledge about the technical aspect of the trade should be imparted to him which will enable him to well-conversant with the process of manufacturing and trading in trade.
A number of field trips to industrial units can be ver4y helpful to understand the economic aspects of the technology.
(b) Achievement motivation training:
Development of achievement motive is essential in order to develop human resources. The main aim of achievement motivation training is to develop the need and desire to achieve, risk-taking, initiative and other such personal behavioral qualities, the self-awareness and self-confidence can be created among the participants through an achievement motivation programme which enable them to think positively and realistically.
An ADP becomes an ordinary executive development programme with achievement motivation training. Motivation training helps the people to expand their business activities and their business venture.
(c) Support systems and procedures:
The proper training relating to support systems and procedure should be imparted to participants. The participants become able to understand the functioning of various agencies like commercial banks and financial institutions, industrial service corporations and other institutions dealing with supply of raw materials, equipment, marketing etc.
This session of the training programme helps the participant to understand the support system, procedures for approaching them, applying and obtaining support from them and availing of the services provided by these agencies.
(d) Market survey:
An opportunity to actually conduct market surveys to select the project is provided to participants. This will help them to understand the actual marketing position.
(e) Managerial skill:
A participant requires managerial skills to start the enterprise. It should involve all the managerial factors such as planning, organization, coordination, leadership, supervision, control etc.
The main aim of managerial training is to enable the participants to run the enterprise successfully.
5. Support system:
The new entrepreneur is ready at this stage to set up his new venture. He requires some type of assistance and support of many agencies in order to launch his new venture. Support system is the important part of the EDP. It is considered the backbone of an EDP.
It is absolutely necessary to develop various support systems in the initial stage of growth in order to accelerate the growth of entrepreneurship.
One method of increasing opportunity and ensuring entrepreneurial success is by providing a network of support systems under entrepreneurial development programme. These support systems provide variety of information relating to credit, finance, marketing service etc.
6. Production:
After the enterprise is set up, production starts. At this step, the managerial and technological skill acquired in the EDP comes into use. Once the production starts the entrepreneur has to initiate supply of products through suitable marketing channel.
The production and marketing are the most crucial stage in an Entrepreneurial Endeavour. Failure in either would mean a breakdown in EDP.
7. Monitoring and follow–up:
Continuous monitoring and follow up is essential for the success of any entrepreneurial development programme. At every stage of EDP, a system of proper monitoring needs to be built in. the defects and problems of EDP can be identified and removed through a proper monitoring system.
Monitoring should provide continuous guidance to ensure better results. The monitoring and follow up should be conducted during each stage of pre-training and post-training of EDP. Pre-training follow up includes evaluation of training infrastructure and training syllabus.