Entrepreneurial Development

The main objective of the entrepreneurial development schemes is to motivates and assist prospective and potential entrepreneurs to set up small scale units or their own and thereby become self- employed and continue to contribute significantly to production and employment in the country. Entrepreneurial development programmers increase entrepreneurial spirit and provide scope for self-development by focusing attention on the self and on self-directed motivational change.

With the new thrust for the development of industries in backward areas and for promoting the weaker sections Small Industries Development Organization (SIDO) divers tied its entrepreneurship training programs in the year 1978-79 to serve new categories of entrepreneurs like rural artisans, educated unemployed , weaker sections or the society, women entrepreneurs, students and physically handicapped personas and Defense personnel.

There can be entrepreneurial failure also.

Different factors are:
1.    Poor Management
(a)    Incompetence
(b)    Unbalanced experience
(c)    Inexperience in management
(d)    Inexperience in line

2.    Production Problems
(a)    Lack of production planning and control
(b)    Frequent machine breakdown
(c)    Poor raw material
(d)    Power costs
(e)    Labor problems
(f)    Lack of technical know how
(g)    Insufficient quality control
(h)    Wastage in material
(i)    High rate of rejection, etc.

3.    High fixed cost
(a)    Heavy investment in land and building
(b)    Increased administrative and other overheads
(c)    Market borrowing at high interest rate

4.    Marketing problems
(a)    Competition form larger and already established units
(b)    Insufficient sales force
(c)    Low quality of finished goods
(d)    Recession, etc.

5. Financial problems
(a) Allowing long credits to the purchasers of finished goods
(b) Diversion of short term funds into long term uses
(c) Willful diversions of funds for investments in assets not connected with production

6. Neglect of business
7. Fraud
8. Disaster

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