Entrepreneurial Development Programmes in India, Entrepreneurship Development II Notes

Unit – IV: Entrepreneurial Development Programmes in India

Entrepreneurship Development II Notes

B.Com 5th Sem CBCS Pattern


Entrepreneurial Development Programme (EDP) can be defined as a programme, formally designed to help an individual in strengthening his/her entrepreneurial motive and in acquiring skill and capabilities necessary for playing entrepreneurial role effectively. In fact, it is an academic exercise to build up human resources by including them to take up entrepreneurial activities through motivation and developing the required entrepreneurial skills through exposure creation to effectively manage their enterprises. According to N.P. Singh, EDP is not merely a training programme. It is a process of:

  1. Enhancing and motivation, knowledge and skills of the potential entrepreneurs;
  2. Arousing and reforming the entrepreneurial behavior in their day-to-day activities; and
  3. Assisting them develop their own ventures or enterprise as a sequel to entrepreneurial action.

Thus, EDPs endeavous to change educate and equip a person to become a successful entrepreneur. The whole process envisages developing the participant’s latent qualities and skills as also equipping him with other capabilities. By the end of the programme, the participant is expected to be in a position to crystalise his vision in to action and launch and manage his enterprise with competence. The system involves a selection procedure and only those who prove to have certain minimum initial traits are selected as potential entrepreneurs to be trained up to develop the other required traits through interventions.

History of Entrepreneurship Development in India

Traditionally, Indian economy is purely agriculture based due to which our country is still a backward country. The experience all over the world proves that the economies which are predominately agrarian in character continue to remain backward and fails to sustain development. To diversify the Indian economy and to accelerate the entrepreneurial activities, The Government of India soon after attaining independence laid down its first Industrial Policy Resolution in 1948. In order to promote local entrepreneurs, ban on the imports of a large number of consumers and other goods imposed by the Government of India during the post-independence period. Subsequently, during 1953-54, the Ministry of Commerce and Industry, Government of India, invited an International Planning Team under the courtesy of Ford Foundation to report on measures that could be adopted to develop small scale industries for promotion of indigenous entrepreneurship. The team strongly recommended the need for development of “Modern Small Scale Industries” to meet the need of time and pace. The team also recommended several measures for promotion and development of entrepreneurship in this sector of the economy.

Since then, the Government of India has been adopting a series of measures for promotion of local entrepreneurship in the country. In course of time, with unemployment problem taking serious turn, the self-employment and Entrepreneurial Development Programmes (EDPs) came to receive serious attention in the country. The literature available indicates that the birth of training effort for the promotion of entrepreneurship in India was purely an indigenous initiative i.e. the “Technician Scheme” launched in the year by two state level agencies of Gujarat. The scheme visualized 100% finance without collaterals. A large number of people took the advantage of this scheme. The real gain of the scheme was the realization that there is vast entrepreneurial potential available in the country that could be tapped and developed through appropriate training intervention. This led the Gujarat Industrial Investment Corporation (GIIC), along with other state level agencies to conceptualize, mount and develop, in 1970, a 3-month long training programme known as Entrepreneurship Development Programme (EDP). However, with the number of programme increasing, the need for having a separate state level organization to look into selection, training and development of first generation entrepreneurs was strongly felt. Thus, the Centre for Entrepreneurship Development (CED), Gujarat, the first of its kind in the country came into existence in 1979 with the support of the Government of Gujarat and the industrial promotion and the assistance agencies in the state.

Meanwhile, the success story of Gujarat experiment spread far and wide and the Ford Foundation encouraged the Gujarat team to test out EDP strategy in a few less developed states like Rajasthan, Assam, etc. Several development agencies in other parts of the country also mounted their own EDPs and the Gujarat CED provided professional support to some of them.

There is another story of the origin of Entrepreneurship Development Programme (EDP) in India. The story suggests that the well-known behavioural scientist David McClelland at Harvard University made an interesting investigation into why certain societies developed great creative powers at particular period of time of their history. He found that “the need for achievement” was the answer. It was the “need to achieve” that motivated people to work hard and money making was incidental. Money was only a measure of achievement, not its core motivation.

In order to answer the next question whether this need for achievement could be induced, McClelland conducted a five-year experimental study in one of the prosperous distracts of Andhra Pradesh in India in collaboration with the Small Industry Extension Training Institute (SIET); which later came to be known as the National Institute for Small Industry Extension Training (NISIET) and now called National Institute for Micro Small and Medium Enterprises (NI-MSME), Hyderabad. This experiment is popularly known as “Kakinda Experiment”. Under this experiment, young persons were selected and put through a three month training programme and motivation to see fresh goals.

One significant conclusion of the experiment was that traditional belief did not seem to inhibit an entrepreneur and that suitable training can provide the necessary motivation to entrepreneurs. It was the Kakinda Experiment that made people appreciate the need for entrepreneurial training (now popularly known as EDPs) to induce motivation and competence among young prospective entrepreneurs. Based on this realization India embarked in 1971 on a massive programme of entrepreneurship development. At present there are more than 700 all India and state level institutions conduct EDPs.

The above findings reveal that EDP was conceptualized almost at the same time in two parts of India viz Gujarat and Andhra Pradesh. However, while the Gujarat model was applied first to organize massive EDPs in 1970, the Andhra Pradesh (SIET) model found its massive application in 1071.

Entrepreneurship Development II Chapterwise Notes

  1. Promotional Agencies
  2. Institutional Supports for Entrepreneurs
  3. Role of Other Supporting Institutions in NE Region
  4. Entrepreneurship Development Programmes in India

Objectives of EDP: The major objectives of the Entrepreneurship Development Programmes (EDPs) are to:

  1. Develop and strengthen the entrepreneurial quality, i.e. motivation or need for achievement.
  2. Analyse environmental set up relating to small industry and small business.
  3. Select the product.
  4. Formulate proposal for the product.
  5. Understand the process and procedure involved in setting up a small enterprise.
  6. Know the sources of help and support available for starting a small scale industry.
  7. Acquire the necessary managerial skills required to run a small-scale industry.
  8. Know the pros and cons in becoming an entrepreneur.
  9. Appreciate the needed entrepreneurial discipline.
  10. Besides, some of the other important objectives of the EDPs are to:
  11. Let the entrepreneur himself / herself set or reset objectives for his / her enterprise and strive for their realization.
  12. Prepare him / her to accept the uncertainty in running a business.
  13. Enable him / her to take decisions.
  14. Enable to communicate clearly and effectively.
  15. Develop a broad vision about the business.
  16. Make him subscribe to the industrial democracy.
  17. Develop passion for integrity and honesty.
  18. Make him learn compliance with law.

Need and Importance of EDP

Importance of entrepreneurship development programme (EDP) is to enable entrepreneurs initiating and sustaining the process of economic development in the following ways:

  1. Creation of Employment Opportunities: Unemployment is one of the most important problems confronting developing and underdevelopment countries, EDP’s enable prospective entrepreneurs in the setting up of their own units, thus enabling them to get self-employment. With the setting up of more and more units by entrepreneurs, both on small and large scale, numerous job opportunities are created for the others.
  2. Capital Formation: It is not possible to set up an enterprise without adequate funds. Entrepreneur as an organizer of factors of production employs his own as well as borrowed resources for the setting up of his enterprise. Entrepreneur mobilizes idle savings of the public and put them to productive use. In this way he helps in capital formation, which is so essential for the industrial and economic development of a country. Various development banks like ICICI, IFCI, IDBI; SFCs, SIDCs take initiative in promoting entrepreneurship through assistance to various agencies involved in EDP and by providing financial assistance to new entrepreneurs.
  3. Balanced Regional Development: Small scale units can be set up in industrially backward and remote areas with limited financial resources. Successful EDP’s assisted in accelerating the pace of industrialization in the backward areas and reduces the concentration of economic power in the hands of a few. Setting up of more units leads to more development of backward areas and balanced regional development.
  4. Use of Local Resources: In the absence of any initiative local resources are likely to remain unutilized. Proper use of these resources can result in the progress or development of the area and that too at lower cost. Effective EDPs can help in the proper use of local resources by providing guidance, assistance, education and training to the prospective entrepreneurs.
  5. Improvement in per Capital Income: Entrepreneurs are always on the lookout for opportunities. They explore and exploit the opportunities. Entrepreneurs take lead in organizing various factors of production by putting them into productive use through the setting up of enterprises. More enterprises will lead to more production, employment and generation of wealth in the form of goods and services. It will result in the increase in the overall productivity and per capita income in the country. EDPs play a positive role in the setting of more units and thus help in generation of more employment and income.
  6. Improvement in the Standard of Living: Entrepreneurs by adopting latest innovations help in the production of wide variety of goods & services. By making efficient use of the resources, they start producing more of better quality and that too at lower costs. This enable them to ensure easy availability of better quality products at lower prices to the consumers which result in the improvement in the standard of living of the people.
  7. Economic Independence: Entrepreneurs enable a country to produce wide variety of better quality goods & services and that too at competitive prices. They develop substitutes of the goods being imported and thus prevent over-dependence on foreign countries and at the same time help in the saving of precious foreign exchange. Through sale of their surplus products in foreign market entrepreneurs enable a country to earn foreign exchange, which is so essential for meeting developmental needs of the economy. Export promotion and import substitution thus help in promoting economic independence of the economy.
  8. Preventing Industrial Slums: Industrially developed areas are faced with problem of industrial slums, which result in over burdening of civic amenities and adverse impact on the health of people. Dispersal of industries can help in the overcoming of this grave problem. EDPs can help in preventing spread of industrial slums by providing various incentives, subsidies and infrastructural support to entrepreneurs for setting up their enterprises in industrially backward areas. This will also help in reducing pollution and overtaxing of civic amenities.
  9. Helps in searching and exploiting opportunities: There are many opportunities for entrepreneurs in various fields like-Electronics, medicine, engineering, agriculture, food technology and packing, communication etc. EDPs help in searching such opportunities and provide necessary information, guidance and assistance in the search and exploiting these opportunities.
  10. Enhancing managerial abilities: Entrepreneur development programmes help the entrepreneurs to enhance their organizing and managerial abilities so that they can run their enterprise efficiently and successfully. This is done through organizing educational, management, training and orientation programmes. Various specialized agencies like National Institute for Entrepreneurship and small Business Development (NIESBUD), New Delhi and Entrepreneurship Development Institute of India (EDII), Ahmadabad are engaged in entrepreneurship programmes.

Weakness and Problems of entrepreneurship development programmes (EDPs) in India

  1. No Policy at the National Level.Though Government of India is fully aware about 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 promotion of entrepreneurship.
  2. Problems at the Pre training Phase.Various problems faced in this phase are — identification of business opportunities, finding& locating target group, selection of trainee & trainers etc.
  3. Over Estimation of Trainees.Under EDPs it is assumed that the trainees have aptitude for self-employment and training will motivate and enable the trainees in 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. Duration of most of these EDPs varies between 4 to 6 weeks, which is too short a period to instill 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 class room 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 themselves 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. Organisations 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 problem of 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 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 loan and hence their dream of setting up their own enterprises is shattered. Helpful attitude of lending institutions will go a long way in stimulating entrepreneurial climate.

Role of Government in Organising EDPs

In India there is a rising awareness of the importance of the entrepreneurship and its relevance to the economic growth and development. The entrepreneurship development programmes contribute immensely. The introduction of entrepreneurship development programmes and similar efforts can be traced back to 1960s. EDM has been spearheading an entrepreneurship movement throughout the nation with a belief that entrepreneurs need not necessarily be born; they can be developed through well-conceived and well-directed activities. The state of Gujarat was the pioneer in the country in initiating entrepreneurship development programmes. Presently there are many government aided, private organizations, and NGOs associated with the task of conducting entrepreneurship development programmes. The most prominent organisations in India include the following organisations:

1. Indian Institute of Entrepreneurship (IIE): HE is an autonomous organization under the Ministry of Skill Development & Entrepreneurship. The Institute is engaged in providing training, consultancy, and conducting research activities in Small and Micro Enterprises (SME), with special focus on entrepreneurship development.

2. Entrepreneurship Development Institute of India (EDII): EDM situated in Ahmadabad is a non-profit autonomous organisation. It has been sponsored by financial institutions such as IDBI, IFCI, ICICI, and SBI. It is also assisted by the government of Gujarat. EDII has been assisting the creation of centers for entrepreneurship development and institutes of entrepreneurship development in various states of the India.

3. National Institute for Entrepreneurship & Small Business Development (NIESBUD): NIESBUD under the Ministry of Industry, Govt. of India was set up in 1983 as an apex body to co-ordinate the activities of various institutions engaged in entrepreneurship development especially in the area of small scale industry. It is also involved in conducting training programmes for entrepreneurs and trainees. NIESBUD is engaged in preparing model syllabi for training various target groups, undertaking research documentation, conducting seminars and developing training as well as teaching aids.

4. Centre for Entrepreneurship Development CED, Gujarat: CED was established in1979 by the Gujarat government. Its EDP is one of the oldest entrepreneurship development programmes in India.

5. National Institute of Small Industry Extension Training (NISIET) Hyderabad: It is an autonomous body under Ministry of industry. NISIET has been providing training, conducting research and consultancy activities for the development of small industry.

6. Small Industry Service Institute (SISI): SISI established by Government of India offers vast variety of services like conducting market survey, technology demonstration, preparation of techno- economic feasibility reports, marketing of products, product standardization, management consultancy, training etc. to potential and existing entrepreneurs.

7. SBI’s Programmes: The State Bank of India has been conducting EDPs particularly in the backward areas across different states of India.

8. Rural Development and Self-Employment Training Institute (RUDSET): RUDSET has been jointly sponsored by Canara bank and Syndicate bank. It is engaged in promotion of entrepreneurship.

9. Science and Technology Entrepreneurship Development (STED): Under the Department of Science 6t Technology, Govt. of India, STED, is an autonomous organization involved in entrepreneurial development and employment generation through science fit technology inputs.

9. Xavier Institute of Social Services – Ranchi: Department of entrepreneurship development programmes of XISS, Ranchi has been engaged in conducting various entrepreneurship development programmes and skill development programmes of national level since 1974. It has been supported by funding agencies like, Industrial Development Bank of India and Industrial Finance Corporation.

10. Development Commissioner (MSME) under Ministry of Micro, Small & Medium Enterprises: The Govt, of India through Development Commissioner (MSME) under Ministry of Micro, Small & Medium Enterprises has been undertaking various programmes related to entrepreneurship development. These programmes include a large number of vocational and entrepreneurship development programmes and other related programmes for entrepreneurship and skill development. They are explained as under:

(i) Entrepreneurship Development Programmes (EDPs): EDPs are being regularly conducted to cultivate the talent of aspiring youths by making them aware on various aspects of industrial activity required for setting up (Micro, Small Enterprises) MSEs. ITIs, Polytechnics and other technical institutions are generally involved in organizing the EDPs.

(ii) Entrepreneurial Skill Development Programme (ESDP): Entrepreneurial Skill Development Programmes are basically meant to upgrade skills of the potential and existing entrepreneurs and the available workforce. These programmes provide sufficient training to develop skills of new workers and technicians. These programmes devoted for skill development of socially disadvantaged groups (ST, ST, women, OBC and minorities) are being regularly being organized in various parts of the different states.

(iii) Management Development Programmes (MDPs): Management Development Programmes are being conducted to impart training on management practices. These programmes are aimed to improve the decision -making and managerial skills of the potential and existing entrepreneurs. These programmes can help the entrepreneurs enhance their productivity and increase their profitability.

Role of Government in Entrepreneurship Development in North eastern region especially Assam

The Government of Assam, with a view to promoting indigenous entrepreneurship and also to attract investment from other parts of the country, announces several incentive and support programmes from time to time through its successive Industrial Policy and other occasions. These schemes in general can be availed by the new units as well as the existing units which go into substantial expansion programme. Some of such schemes are discussed below:

1. Interest Subsidy on Term Loan: The scheme envisages interest subsidy @30% of the amount of interest paid by à micro unit on term loan to Bank/ Financial institution for a period of 5 years from the date of commencement of commercial production subject to a ceiling of Rs, 1.00 lakh per unit/year.

2. Power Subsidy: Power Subsidy is provided to eligible units on power tariff paid by the unit on actual units of power consumed in a period of 5 years from the date of commencement of commercial production subject to the maximum of Rs. 10 Lakh if load upto 1.0 MW and Rs. 25 Lakh if load above 1.0 MW.

3. Subsidy on drawal of power line: Under this scheme, the Micro and Small units are entitled to 25% subsidy on the cost payable by them to the state power distribution company for drawal of power line to the premises of the unit including the cost of transformer, subject to a ceiling of Rs 10 lakh per unit. This subsidy is made available only once to a unit.

4. Subsidy on Quality Certificate/ Technical Know-how: The fees payable on obtaining quality certification in the form of BIS/ISO/FPO/AGMARK and fees payable for getting technical know-how from recognized research laboratory/institutions like CFTRI, CIPET etc by eligible units are subsidized to the extent of 50% of such fees, subject to a ceiling of Rs. 1.00 lakh per unit.

5. Exemption from Stamp Duty and Registration: To encourage private sector in setting up industrial infrastructure in the form of Industrial Park/ Estate through the purchase of private / Government land, there will be 100% re-imbursement of the Stamp Duty and the Registration Fee against submission of equivalent bank guarantee from a Nationalised Bank that the Industrial Park/Estate will be setup within a period of 3 years. The said guarantee will be invoked if the Industrial Estate/ Park are not setup within 3 years or if the land is used for any other purpose.

6. Special Incentives for Mega Project: To attract investment in the state through the establishment of Mega industrial Projects, the Government of Assam has initiated some incentives as follows:

– Priority in allotment of land

– Raising the Ceiling amount of Subsidy

– Raising the period of validity of tax concession,

All the above three special incentives will be determined on case-to-case basis for Mega Projects with large capital investment of minimum Rs.100.00 crore or generating a minimum of 1000 regular employment.

7. Market Linkage (Participation in Trade Fair/Exhibition): All Micro and Small Enterprises in commercial production irrespective of year of establishment are eligible for the following financial supports under the marketing assistance scheme of the Government of Assam.

(1) Reimbursement of 50% of the rent /fee paid by the unit for participation in trade fair/exhibition sponsored or organized by the Government within India subject to a ceiling of Rs.10000.00.

(ii) Reimbursement of 50% of the transport cost incurred on exhibits for participation in Government sponsored/recognized trade fair/ exhibition in South East Asia subject to a ceiling of Rs. 50000.00 per exhibition.

(iii) A unit can avail these benefits for a maximum of three times only.

8. Preference to Women/ Physically Handicapped Entrepreneurs: The units promoted by women/physically handicapped entrepreneurs (more than 50% ownership) are given preference in selection for participation in trade fair.

9. Multi – Disciplinary Skill Development Programme: This is a flagship programme introduced by the Department of Industries & Commerce, Government of Assam during the year 2011-12. Keeping in view the unemployability of our educated youths due to the absence of adequate skill required and the emerging demand for skilled man power in the state, this programme aims to fill the latent gap.

The programme not only addresses the problem of employability in jobs, but also takes care to develop skill for taking up entrepreneurial activities more efficiently. It is hoped that trainings imparted to the entrepreneurs will significantly help them in enhancing their skills to compete internationally. In view of this, the programme aims to send a sizeable number of entrepreneurs for undergoing training in reputed institutions within and outside the state to acquire both hard and soft skills that are necessary to produce international standard goods and services, thereby making them globally competitive.

To begin with, the Government of Assam started construction of four Multi Disciplinary Skill Development Training Centres during 2011-12, one each at Badarpur Ghat (Karimganj), Bilasipara (Dhubri), Bajiagaon (Nogaon) and Margherita (Tinsukia) along with up-gradation of the existing Cottage Industries Training Institute at Kalapahar, Guwahati. In a bid to provide one training centre in each district, the Government has taken to construct another 23 Skill Development Training Centres during 2012- 13.

As per the programme, the Department of Industries and Commerce, Government of Assam bears the cost of training which include the following:

(i) Course Fee

(ii) Food & Lodging

(iii) To and fro expenses from place of origin to the training Institute

(iv) Insurance Coverage under “Nagarik Suraksha Yojana” of Oriental Insurance Company for 4 months, with total coverage of Rs. 2 lakh per trainee.

Role of NGOs in Entrepreneurship Development in Assam

There is no denying of the fact that development of entrepreneurship has emerged as a national movement due to its strengths to solve the twin problems of unemployment and poverty. In fact, the need for development of ‘spirit of enterprise’ among the target population intensified more during the nineties with the failure of the ‘trickle down theory’ to percolate the development benefits to the masses at grass-root level.

It is against this backdrop, several self- employment and anti-poverty programmes like PMRY, TRYSEM etc., involving some entrepreneurial qualities were introduced by the government as a tool of bottom up mode of development. However, these programmes executed by the Government agencies proved ineffective due to their weaknesses of one type or other.

Such a situation necessitated the NGOs to come out of their traditional bounds like health, sanitation, education, family planning, environment protection, etc., to join a noble mission to entrepreneurs the lesser known target groups (Singh 1992). The government agencies engaged in this activity strengthened the NGOs by co-opting and collaborating with them to reach the lower rungs of the society.

Non-Governmental Organisations (NGOs) are any non-profit, voluntary citizen’s group which is organised on a local, national and international level. It is task-oriented and driven by people with a common interest. NGOs perform a variety of service and humanitarian functions, bring citizen concerns to Governments, advocate and monitor policies and encourage political participation through provision of information. India has seen a boom in the rise of NGO’s since the last decades. According to the Times of India survey, there are around 20 lakh NGOs already operating in states and union territories.

It is overwhelming to know that in India there is just one policeman for every 943 people whereas there is one NGO for every 600 people. In North-eastern region itself, we have witness a boom in the NGO sector. Though there are no exact data as to the number of registered one, it is a known fact of its existence and work which we hear and witness around us. It is to be noted that NGO’s has been on existence in our society for some time. But, they were mostly into sanitation, health, family planning, environmental protection, primary education etc. Against the backdrop of government trying to introduce entrepreneurial system into our society, the NGOs decided to join the mission as the need for colossal entrepreneurship potential in rural areas was imminent. They also realise that it could support the thriving economy.

Positively, the government collaborative attitude towards the NGOs led to redesigning some of the projects and adoption of new strategies. This was the correct way to reach the rural poor for grass root development. Why is it important to stress on the role of NGO’s for entrepreneurship development especially for rural entrepreneurship and development can be seen from the following points which ultimately prove its edge over others:

– The lean overhead and operating costs to reach the poor and needy.

– Flexibility and responsiveness in operation to invent appropriate solution.

– Nearness to client groups made them to be sensitive to community need.

– Capacity for innovation and experimentation with new groups and untried development approach.

– Stimulating and mobilizing interest in the community.

– Dependence on customer satisfaction.

– Act as a test bed and sound board for government policies and programmes.

– That one cannot imbue in others what one cannot possess oneself applies to the NGOs also.

In India, there are several NGO’s that are contributing to entrepreneurship development. The major ones are National Alliance of Young Entrepreneurs (NAYE), World Assembly of Small and Medium Entrepreneurs (WASME), Xavier institute for Social Studies (XISS), SEWA of Ahmedabad, ‘Y’ Self-Employment of Calcutta, AWAKE (Association of Women Entrepreneurs of Karnataka), and Rural Development and Self-Employment Training Institute (RUDSETIs) based in Karnataka.

Popular NGOs in NE Region

In north-eastern region, there are very few NGO’s who play a role when it comes to Entrepreneurship development. Nonetheless, this is gaining momentum and in coming years, it can play a tremendous role to bring positive changes to entrepreneurship development. Some of the popular NGOs in NE region are:

  1. North East Development Foundation (NEDF) is a not-for-profit development-focused consulting and participating organisation contributing to key aspects of sustainable development including livelihoods, capacity building, entrepreneurship, information communication technology, youth empowerment, natural resource management (NRM), and rural technology. It is focused on educational development, entrepreneurial skill development, vocational trainings, formation of SHGs, microfinance, gender and empowerment.
  2. The Seva Bharati is a non-governmental organization (NGO) in India. It works especially among the economically weaker sections and the tribal and indigenous communities in India. It runs thousands of service projects across India in the field of education, health care, rural development.
  3. AID – India: The AID North East Focus Group is a subgroup within the AID organization that was created to focus on issues related to the North East region of India. These are the focus areas for the group:

– Further our understanding about problems and solutions specific to India’s Northeast through research and projects.

– Develop “collaborative” network of partner NGOs for AID in the North East region of India.

 – Work closely with AID-Guwahati

– Actively engage “NE community” in the US and other parts of India

Role of NGOs in NE Region

From among the existing NGO’s, it is witnessed that they primarily contributes towards entrepreneurship development as mention below:

– The NGOs who mobilize their own resources, operate at international level and execute developmental activities themselves or through intermediate fall within this category.

– There are those NGOs that procure funds from various agencies, impart training, and conduct workshops for target work force.

– Those who conduct field activities by establishing direct contact with the grass-root needy people.
Evidences are galore to mention that a few NGOs in India have succeeded largely in imparting entrepreneurial skills among the weaker sections of the society. These are some of the initiatives NGOs have taken to help especially the needy ones for entrepreneurship development:

– Stimulation: Conducting EDPs and other training programmes for the target people with a view to stimulate enterprising attitude among them.

– Counseling: Providing counseling and consultancy services to the needy ones how to prepare a project, feasibility report, purchase of plant and machinery, and performing other procedural activities.

– Assistance: Assisting the target group in marketing their products and securing finance from financial institutions.

It is a fact that 70 % of different sponsored skills trainings are conducted within north eastern region are done by the NGOs and other institutions. Equal importance and priority should be given to all the 7 states in NE-Region in order to encourage and development rural entrepreneurship. More focus can be given by NGOs to conduct Entrepreneurship Awareness Programmes (EAP) in rural areas that’s where the entrepreneurship needs to be developed at present in our state.

Short Note – Skill development programme

Skill development and vocational training programs are conceptualized, executed and monitored by various organizations, working closely with the government of India. There are various plans and schemes that are dedicated to achieve scalable skilling with quality and higher productivity, particularly in the unorganized or informal sector which accounts for 83% of India’s workforce. The Ministry of Skill Development and Entrepreneurship (MSDE) is responsible for the co-ordination of overall skill development efforts across the country, building the vocational and technical training framework, skill up-gradation, building of new skills, and innovative thinking not only for existing jobs but also jobs that are to be created.

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