Process of Entrepreneurship Development Program
These are the steps of process of entrepreneurship development program explained below:
- Selection of Potential Entrepreneurs
- Identification of Entrepreneurial Traits and Skills
- Identification of Enterprise
- Contents of Training Programs
- Monitoring and Follow Up
Selection of Potential Entrepreneurs
Selecting potential entrepreneurs is the crucial first step in the Entrepreneurship Development Program (EDP). It involves finding individuals who have the potential to become successful entrepreneurs. To do this, it’s important to carefully consider their family background, motivation, education, and entrepreneurial skills.
Different methods like tests, group discussions, and interviews can be used to choose the right participants. In this process, two key things to remember are identifying the entrepreneurial qualities in potential entrepreneurs and matching them with suitable business opportunities or projects.
Identification of Entrepreneurial Traits and Skills
- Socio-Personal Traits: The socio-personal traits, qualities, and competencies of participants include family background, age, education, size and type of family, working hands, earning members, and social participation.
- Human Resources Factors: These are the inherited or acquired skills. The following human resource factors must be considered: Achievement Motivation, Willingness to Take Risk, Influencing Ability, Personal Efficacy, and Aspirations.
Therefore, individuals having a minimum level of entrepreneurial qualities like risk-taking, innovation, self-confidence, initiative, etc. also play a dominant role in entrepreneurship.
Identification of Enterprise
It is essential to decide on a suitable enterprise or project for a 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 into consideration before selecting an enterprise. After deciding on the enterprise, the potential entrepreneur has to study the viability in terms of financial resources, availability of raw materials, marketing profitability, etc.
Contents of Training Programs
There are different kinds of participants having different backgrounds and qualities to attend the entrepreneurial development program. The following types of training are provided during the time duration of program:
- Technical knowledge and skills: Deep knowledge about the technical aspect of the trade should be given to potential entrepreneurs who will enable them to learn the process of manufacturing and trading. A number of field trips to industrial units can be arranged to understand the practical aspects of the technology.
Achievement Motivation Training: 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. Self-awareness and self-confidence can be created among the participants through an achievement motivation program. Motivation training helps people to expand their business activities and their business ventures.
Support Systems and Procedures: The proper training relating to support systems and procedures should be given 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 the supply of raw materials, equipment, marketing, etc.
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 and other methods of dealing in the markets.
- 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.
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 the supply of products through a suitable marketing channel. Production and marketing are the most crucial stage in the entrepreneurial endeavor. Failure in either would mean a breakdown in EDP.
Monitoring and Follow-up
Continuous monitoring and follow-up are essential for the success of any entrepreneurial development program. 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. The post-training phase is designed to help entrepreneurs achieve technical, managerial, marketing, and financial skills.
Evaluation of EDP
Evaluation of an EDP can be judged on the basis of the extent of success achieved in the realization of objectives established under the EDP. The entrepreneurial performance is a function of the following factors:
- Socio-Cultural Background of Entrepreneur (SB)
- Motivational Forces (MF)
- Knowledge and Ability of Entrepreneur (KA)
- Financial Strength (FS)
- Environmental Variables (EV)
Socio-Cultural Background of Entrepreneur (SB)
This implies the environment in which the entrepreneur was born and brought up. It conditions the values and attitudes of the entrepreneur.
Motivational Forces (MF)
It implies the motives which promote a person to undertake entrepreneurship e.g. wealth, status, self-employment, etc.
Knowledge and Ability of Entrepreneur (KA)
It refers to the education, training, and experience of the entrepreneur.
Financial Strength (FS)
It means the funds that an entrepreneur can mobilize from internal and external sources.
Environmental Variables (EV)
These consist of government prices, market conditions, availability of technology, and labor situation.
What is the process of entrepreneurship development?
The following are the steps of process of entrepreneurship development program explained below:
1. Selection of Potential Entrepreneurs
2. Identification of Entrepreneurial Traits and Skills
3. Identification of Enterprise
4. Contents of Training Programs
6. Monitoring and Follow Up.