By Ratish Pandey
In an increasingly competitive landscape, both startups and businesses established by entrepreneurs find it hard to operate over the long term. A study conducted by the Bureau of Labor Statistics finds that 30% of the company fails in the second year, half go out of business by the fifth year, and only 30% of companies continue to operate at the end of the decade. While a variety of factors can ultimately lead to the downfall of an entrepreneur and the organization, lack of experience is one key factor. Since SMEs & MSMEs fuel the economy’s growth by generating job opportunities, raising living standards, and contributing to the general growth of the economy, it is essential to foster their growth through a concerted Entrepreneurship Development Programme.
Understanding Entrepreneurship Development
Entrepreneurship development enables founders and business owners to stay competitive in their marketplaces by providing training, education, and tools. The program could work well for individuals planning to commence a venture or expand an existing business.
Entrepreneurship Development aims to bring the best of all worlds to the entrepreneur. The best of expertise, knowledge, training, tools and allows them to meet and network with other entrepreneurs and learn from each other.
There is no one size fits all approach to entrepreneurship development. Many people have fundamental characteristics but require incubation and refining to become promising entrepreneurs, and development may be the key to unlocking their talent. The process generally involves finding the common denominator for a set of identified businesses and developing training, mentorship and funding to help foster innovation and creativity. In other words, Entrepreneurship Development entails a structural practicum to transform an individual into an entrepreneur.
The Need for Entrepreneurship Development
Entrepreneurship Development Programme strengthens entrepreneurs’ entrepreneurial motive by helping them acquire the skills and capabilities necessary for playing the entrepreneurial role effectively.
The short-term objective of the Entrepreneurship Development Program is to help individuals understand the existing regulations and rules and how to use them to their advantage, turning them from roadblocks to the stepping stone to success.
Over the long term, the EDP aims to train individuals to establish and sustain successful enterprises using the acquired skills. While every entrepreneur could benefit from the Entrepreneurship Development Programme, it is vital for entrepreneurs in the startup ecosystem.
The Objectives of Entrepreneurship Development
Utilizing Resources Efficiently – Resources are scarce no matter where one is and what one is venturing into. Thus optimal utilization of resources is one key area covered under the Entrepreneurial development programs (EDP) educates entrepreneurs about the resources to utilize resources better.
Encourage Employment Generation – Successful entrepreneurial ventures help generate employment. An entrepreneur development program helps improve the success rate of a business, thus growing the employment market by creating new job opportunities.
Creating Market Awareness – A chicken and egg problem is one that each entrepreneur battles with at some stage of their business development. Entrepreneurial development program helps entrepreneurs see the light by providing market information and education on the need for product differentiation to help them identify their market and define their competition.
Propelling Innovation – Disruption is the byproduct of innovation that changes how new products, brands, features, and designs are made and brought to market, thereby changing the status quo. The entrepreneurship Development Programme is a program that provides an environment that fuels innovation. It guides entrepreneurs to stay ahead of the competition and build products that address the expressed needs and the needs that customers have but are not conscious of.
Developing Problem Solving Capabilities – Entrepreneurship Development Program helps individuals identify problems and develop creative solutions to meet the challenges. Identifying the problem early on can help entrepreneurs take quick actions to counter it, a must-have skill for a successful entrepreneur.
Improved Standard of Living – The entrepreneur development program coaches entrepreneurs to optimize processes for running a cost-effective business. It helps entrepreneurs offer affordable quality products which help improve the customers’ living standards. Employment provided by them has the same impact on their employees.
Leadership Development – One of entrepreneurship’s biggest and most significant benefits is that it develops managerial talent. A successful entrepreneur needs to be multi-skilled. One of the essential skills an entrepreneur needs to acquire is the art of decision making—to evaluate the available alternatives based on their pros & cons and choose one. Through entrepreneur development programs, leaders are coached on new managerial functions and techniques to help them make better decisions.
Educating Entrepreneurs Regarding Regulations – The government recognizes the role of the SME & MSME sector in driving the economy. In response, several programs have been launched over the last few years to make it easy for them to do business in the country. Unfortunately, education among the target audience of the Government programs leaves a lot to ask. Entrepreneurial Development programs help educate entrepreneurs on the same. The entrepreneurs are taught the laws and guidelines that rule the entrepreneurial world in the country.
Entrepreneurship Development is essential in cultivating and equipping the best and brightest with the required tools and skillset to establish their businesses. SMEs, MSMEs and the Entrepreneurs leading them are the backbone of the economy and continue to foster innovation, create employment and use resources efficiently. By upskilling through development, these leaders can attain managerial skills, identify and solve tough challenges and promote a higher standard of living through innovation and product development.
BUSINESS & EXECUTIVE COACH