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On Going Research Completed Research
 
  The details of the Research is given below :  
Research Name  

A study on Entrepreneurship Development Efforts and Needs Assessment for Entrepreneurial Growth in North East.

Start Date

August 2005

Faculty's Name

Dr. Sriparna B. Baruah

Sponsor's Name 

National Entrepreneurship Development Board

Findings
  • A basic survey of the participants of the programmes and the trainers as well as the sponsoring organisations has revealed the following:

  • Selection of potential entrepreneurs is one of the important factors for the success of any EDP. Often the trainers take the help of local agencies like DIC, Gaon Panchayats, educational and technical institutions, NGOs and other promotional agencies. Priority in selection of location for conducting EDPs is given to those areas where such programmes have been scarce and areas, which are remote and economically less developed.

  •  Trainers opine that motivational campaigns prior to training was of utmost importance and feel that though they have done enough for the purpose, a lot more can still be done, and it is one of the important factors for success of the programmes. Often the trainers face the problem of mismatch between the trainees and the course of training for them. The problem can be attributed to a number of factors like- wrong selection of trainees, improper planning and a lack of potential trainees.

  • Often it is the number of units grounded that determine the success of a programme. The success rate of EDPs sponsored by various sponsoring agencies in terms of finance availed from funding agencies at 34% is not very satisfactory.

  • Most of the units set up are in the manufacturing sector with 70% of the total units set up belonging to this sector. Out of this a majority of the units are in the handloom and handicrafts sector. The reason for this could be the easy availability of raw materials and the traditional expertise that the people of this region have in this sector.The service sector also acquires some share with 30% of the units being in this sector but, the type of units set up in the service sector in the region is not very satisfactory as most of these units are either printing, Xerox, PCO and bookbinding units.

  • Among all the states, Assam has the highest share of units in almost all the sectors. The reason for this could be the locational advantage that this state enjoys for being the gateway to the entire region. The least developed state in terms of units being set up is Manipur.

  • A higher proportion of entrepreneurs fall in the age group 25-30 years, which is considered as youth population, but the highest conversion rate is for those belonging to the age group, 40-45 years. This indicates that experience has a very significant role to play in the moulding of an individual to an entrepreneur.The conversion rate for postgraduates is the highest indicating that the highly educated youth of today prefer to be job givers rather than job seekers. 

  • Contradictory to the belief that business acumen generally develops in children from joint families with a business history the study has revealed that the reverse is true as the number of participants from nuclear families comprise almost 73% of the total population (population under consideration for the purpose of the study). This could be due to the fact that the society is undergoing a vast transition from the traditional joint family system to nuclear ones.

  • Most of the units being set up by the participants has revealed that the status of the urban areas is far better because out the 29% of the participants belonging to urban areas, 48% have started their own units where as this is only 34% in case of semi-urban and 40% in case of rural areas.

  • The sole intention of joining an EDP is to generate employment for themselves by setting up their own ventures, which is again quite apparent from the conversion of participants into entrepreneurs, which is fairly high at 40% for the unemployed. Even the student community has shown satisfactory result in terms of setting up a unit after attending an EDP. This could be an indication towards the changing attitude of the people of this region towards self-employment and towards entrepreneurship as a career.

  • It can be mentioned that the EDPs are designed to develop the attitude of the participants and improve their knowledge and skill levels. It was found that this has been done only to some extent as far as the trainees’ views are concerned. Another interesting finding is that of the 3% of respondents who feel that the training programme was not able to develop skill, knowledge and attitude, 24% have turned entrepreneurs. This however reveals that even though in the trainee’s view the programme was not able to develop the skills to the requisite level, it was able to trigger the entrepreneurial spirit in him.

  • Family support is one of the essential ingredients for the development of a enterprising nature in an individual. We have a culture of very closely-knit families and all-important decisions, including a desire to go for entrepreneurship as well as taking risk, needs the support of the family members. It is encouraging to find maximum of the trainees having a positive reaction from their families.

  • A desire to be on one’s own is the primary reason for joining EDPs as 45% of the participants chose entrepreneurship from a desire to be on their own, Only 6% of the participants were influenced by EDP and chose to be entrepreneurs.

  • Finance is the biggest problem that the entrepreneurs of the region face. Majority of the trainees are from low-income groups and so own investment is also not available.

  • Post training services are not carried out to the required extent. This can be attributed to a number of problems faced by the trainers in constantly monitoring their programmes. Still considering the importance of the post training services, necessary steps should have been taken for effective implementation of the escort services. 52% of the trainees complained that they did not receive any post-training services.

  • EDPs did have a positive impact on the trainees, as 78% of the participants who are yet to set up units are still interested in setting up their units. The common reasons for delay in setting up their own units are lack of finance, procedural hindrances, lack of infrastructure to support entrepreneurs etc

 
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