Problems of Entrepreneurship Development Programmes (EDPs)

Problems of entrepreneurship development programmes (EDPs) are:

1. No Policy at the National Level

Though the Government of India is fully aware of the importance of entrepreneurial development, 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.

2. Problems at the Pre-training Phase

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

3. 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 successful setting up and managing of 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 financial institutions are not prepared to finance these risky enterprises set up by the not-so-competent entrepreneurs.

4. 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 instil basic managerial skills in the entrepreneurs. Thus the very objective to develop and strengthen entrepreneurial qualities and motivation is defeated.

5. Non Availability of Infrastructural Facilities

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

6. Improper Methodology

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

7. 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.

8. Non Availability of Competent Faculty

Firstly there is the problem of the 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.

9. Poor Response of Financial Institutions

Entrepreneurs are not able to offer collateral security for the grant of loans. Banks are not prepared to play with 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 the entrepreneurial climate.