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Entrepreneurial Development Entrepreneurship

FVTRS gives an added thrust on entrepreneurship development in all its training activities. It looks forward to creation of more entrepreneurs to effect more employment than persons seeking for jobs. The ammunition in a device is triggered only once the ignition is given. EDP is precisely does that job of ignition to help take the person forward in his life with the earned skills. The section is a primer on traits and characteristics for future entrepreneurs who want to know what it is all about to begin with and same is drafted by one of our partner entrepreneurs. What is entrepreneurship? Entrepreneurship is the function of seeking investment and production, opportunity, organizing an enterprise to undertake a new production, process, raising capital, arranging labour and raw materials, finding a site, introducing a new technique and commodities, discovering new sources for the enterprise. What is enterprise? Enterprise consists of people working together primarily for the purpose of making, selling and distributing a product or service. Enterprise consumes valuable resources like raw materials, power, and labour to produce the output. Enterprise is a continuing entity. It is not an ad hoc effort to produce a single product or output, but rather a recurring and continuing effort to produce a stream of products. Every enterprise carries with it some sort of final net profit or loss. Who is entrepreneur? A person, who innovates, organizes, manages and takes the risk of running an enterprise. A person who innovates One who allocates and manages the factors of production and bears risk One who has the ability to perceive latest economic opportunities and to devise their exploitation An individual, who conceives the idea of business, designs the organization of the firms, accumulates capital, recruit labour, establishes relations with supplier, customers and the government, and converts the conception into a functional organization. The supplier of resources, supervisor and coordinator, and ultimate decision maker.

What are the qualities of an entrepreneur? Capacity to assume Dedication to work Shrewdness and wide knowledge Motivating attribute Vision and foresight Imagination, initiative and emulation Innovation and rational judgment Flexibility and sociability Personal responsibility Mobility and drive Creative thinking Strong need for achievement Capacity to marshal resources High degree of ambition

Type of entrepreneurs found in the society 1 2 3 4 Institutional entrepreneurs Entrepreneurs by inheritance Technologist entrepreneurs Forced Entrepreneurs

What are the common entrepreneurial traits? Determination, commitment and perseverance

Entrepreneurial Development
Urge to achieve something and grow Seeking opportunity and goal oriented Taking initiative and personal responsibility Problem-solving ability Realism and a sense of humour Seeking and using feedback Internal locus of control Risk taking and risk seeking Low need for status and power Integrity and reliability

What is entrepreneurship development? Entrepreneurship development is a human resource development task, process which deals with human motivation, skills, competencies, social and economic risks and investment of technical and physical resources of the individual and the state. It is a complex process of changes. The development of entrepreneurs through systematic entrepreneurship development programmes has emerged as an important strategy for development of human resources for promoting small business enterprises. What is EDP training? Entrepreneurship development programmes play a critical role for all entrepreneurs (existing /desiring) for their survival and growth. Behavioural inputs before, during and after the EDP, play a crucial role in the formation and development of entrepreneurial personality. A set of behavioural instruments is used in assessing entrepreneurial traits for selection before the EDP begins. Motivational training is provided to help trainees develop such a personality. Counselling is considered as an important method to help participant select appropriate business opportunities, prepare business plans and for effective implementation of the project and manage an enterprise. Need of the EDP training To To To To To To To To improve individual / national income improve resource of the nation increase employment generation develop the individual skill increase the income of the individual ensure a dignified life disseminate skill and knowledge empower the society socially and economically

EDP Training is meant for whom? Person who raises the questions such as Where is the opportunity? What opportunity is appropriate? How do I do it? What resources do I need? How do I gain control over them? What structure is best? What structure determines our organizations relationship to its markets How can I minimize the impact of others on my ability to perform?

Categories a) b) c) d) e) f) g) Artisan groups School drop-out people Technically qualified unemployed Merchant trading group Farmers likely to shift to other enterprises Farm labourers who intend to shift to small business enterprises Women entrepreneurs

Entrepreneurial Development
h) Vulnerable section like dalit and tribal groups EDP - Training inputs Offer knowledge/information about opportunities and resources available in the area Motivation to get into business with concrete business idea Improve skill/knowledge/idea/risk bearing capacity for enterprise building and management Developing personality of the entrepreneur Creating/improving working culture of the individual Linking the entrepreneur with viable business opportunity and developing it into a systematic business plan Providing necessary information, counselling and followup support that must continue till setting up of an enterprise Provide adequate knowledge about business, sources of information and post training support systems to the trainee for diagnosing their own problems and find workable solutions by applying the basic management principle/thought

Entrepreneurial Characteristics 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Enthusiasm Determination Sincerity Initiative and drive Imagination Communication Tact Intelligence Voice-culture Manners and mannerisms Emotional control Vocabulary Leadership Self management Attitudes towards life Attitudes towards self Emotional stability Co-operation Sense of responsibility Empathy

Entrepreneurial competencies Initiative Sees and acts on opportunities Persistence Information seeking Concern for high quality of work Commitment to work contract Efficiency oriented Undertake systematic planning Ability to problem solving Self confidence Assertiveness Concern for employee welfare

Pre training, Training and Post training activities a. b. c. Physic, psycho-socio, cultural and economic study and understanding of the area where the programme is to be implemented Identifying viable industrial activities and enterprises Exposure to create awareness and interest and gradually motivate into entrepreneurial action

Entrepreneurial Development
d. e. Idea generation programme to community on entrepreneurial development Conduct survey on industrial profile, entrepreneurial development, marketing, sources of finance, risk factors related to development of enterprise (social, financial, political, commercial) f. Identifying the various categories of personnel who will be involved in establishing and developing entrepreneurship in the area g. Preparing chart by keeping in view the earlier work experience /challenges /constraints of the personnel h. Conduct the SWOT analysis i. Select the potential entrepreneurs j. Training needs analysis k. Select the convenient venue for training that must be most accessible for participants l. Identifying qualified and experienced trainer m. Finalize the training timetable and design the session plans. n. Organize the training materials and equipment o. Brief the external resource persons p. Conduct the pre training intervention meeting q. Inform the participants r. Conducting the EDP training s. Daily evaluation and end-of training evaluation t. Follow-up, linkages, business counselling/advice, building of managerial capabilities u. Monitoring and evaluation Components of entrepreneurship training 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. Elements of management Personality development Generation of business establishment idea Identification of suitable business opportunity SWOT analysis Assessments on ability and experience of entrepreneur Understanding market/marketing/marketing research / marketing plan Study of raw materials availability indigenous or imported and the price Form of business Staffing Costing Financial planning Understanding of legal obligations and insurance Mobilizing start-up capitals and means of finance Preparation of business plan Buying Stock control Record keeping Sales and expense plan Cash flow plan Adverting and sale promotion Product innovation and diversification Convergence