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Problems of EDPs

The following are the obstacles to the smooth conduct of EDPs:

1. No Policy at National Level
2. Problems in Pre-Training Phase
3. Over-Estimation of Trainees
4. Duration of EDPs
5. Non-Availability of infrastructural facilities
6. Improper Methodology
7. Mode of Selection
8. Non-Availability of Competent Faculty
9. Poor Response From Financial Institutions
10. Problems Faced by Women Entrepreneurs

No Policy at National Level

Through government of India is fully aware of the importance of entrepreneurial development, yet we do not have a national policy on entrepreneurship. It is expected that the government will formulate and enforce a policy aimed at promoting balanced regional development of various areas through the promotion of entrepreneurship.

Problems in Pre-Training Phase

Various problems faced in this phase are identification of business opportunities, finding and locating target groups, selection of trainees and trainers, etc.

Over-Estimation of Trainees

Under EDPs, it is assumed that the trainees have an aptitude for self-employment, and training will motivate and enable the trainees the successfully set up and manage their enterprises. These agencies thus overestimate the aptitude and capabilities of the educated youth.

Thus, on one hand, the EDPs do not impart sufficient training and on the other hand, financial institutions are not prepared to finance these risky enterprises set up by the not-so-competent entrepreneurs.

Duration of EDPs

An attempt is made during the conduct of EDPs to prepare prospective entrepreneurs thoroughly for the various problems they will be encountering during the setting up and running of their enterprises.

The duration of most of these EDPs varies between 4 to 6 weeks, which is too short a period to instill basic managerial skills in entrepreneurs. Thus, the very objective to develop and strengthen entrepreneurial qualities and motivation is defeated.

Non-Availability of infrastructural facilities

No prior planning is done for the conduct of EDPs. EDPs conducted in rural & backward areas lack infrastructural facilities like proper classrooms, suitable guest speakers, boarding & lodging, etc.

Improper Methodology

The course contents are not standardized and most of the agencies engaged in EDPs are themselves not fully clear about what they are supposed to do for the attainment of predetermined goals. This puts a question mark on the utility of these programs.

Mode of Selection

There is no uniform procedure adopted by various agencies for the identification of prospective entrepreneurs. Organizations conducting EDPs prefer those persons who have some project ideas of their own and thus this opportunity is not provided to all the interested candidates.

Non-Availability of Competent Faculty

Firstly, there is the problem of non non-availability of competent teachers, and even when they are available; they are not prepared to take classes in small towns and backward areas. This naturally creates problems for the agencies conducting EDP.

Poor Response From Financial Institutions

Entrepreneurs are not able to offer collateral security for the grant of loans. Banks are not prepared to play with the public money and hence they impose various conditions for the grant of loans.

Those entrepreneurs who fail to comply with the conditions are not able to get loans and hence their dream of setting up their own enterprises is shattered. The helpful attitude of lending institutions will go a long way in stimulating entrepreneurial climate.

Problems Faced by Women Entrepreneurs

Various problems are as under:

1. Stiff competition from male entrepreneurs.
   
2. Low ability to bear the risk.
   
3. Low level of family support.
   
4. Shortage of funds.
   
5. The slow progress of the Women Entrepreneurs Association.
   
6. Production, marketing, managerial, administrative, and organizational problems.

FAQs Section about Problems of EDPs