Unit-3

Innovation-it is the process of doing new

things or doing old things in new
techniques.
Innovation vs. invention-every person has
some specific qualities. If implement it can
change
Followers---operational
mgr.--enterprise
mgr.--- entrepreneursinventors.
An inventors is on step above an
entrepreneur. Invention included creating
something new, not only any new products
but also new technology process, new
designs, new technical knowledge etc.

Edison were inventors and Bill Gets could be

put in the category of innovative
entrepreneurs.
An inventors discovers new methods, new
products, new material. An inventor
produce
ideas
and
an
innovator
implements them for economic gain.
Invention ----creating of new product idea--result in new knowledge creation.
Innovation---conversion of an idea or
resources in to real life application---result
in new products, or services.

Invention involves new ideas while innovation

involves putting these ideas in to action.
Innovation is the process which required
analytical ability to work out the details in
order to carry on the project.
types of innovation1.Technical innovation.
2.Non-technical innovation.
Technical innovation- it is include with
innovation in the process by which
production takes place and also with
innovation in the products them selves.

It is creation of some things radically different

from existing technology or products. An
innovation have no competitors. New
invention create new products. technical
innovation
is also treated as product
oriented
innovation
which
involves
developing goods and services that
incorporate entirely new.
2.Non-technical innovation- it is concerned
with finding innovative mission, growth
strategies, mgt. system, & organisational
structure etc. it is a process of innovation.
Its purpose is to make existing process more
efficient. It includes small changes in
design, product formulation,

Manufacturing, material and services that

firms make to develop their products
update and their cost down. It also
includes improvements to existing
products.

Entrepreneurial development programmesit is defined and designed to promote

young entrepreneurs in improving their
entrepreneurial motive and acquiring
skills and capabilities for playing their
entrepreneurial role effectively.
Objective of EDPSa. To define the potential entrepreneurs.
b. To provide follow up assistance.
C. To understand the process and procedure
of setting up of small enterprise.
d. To select project and products.
e. To formulate project reports.

f. To train the entrepreneur to understand

environmental challenges and opportunities.
Relevance of EDPs- entrepreneurs are made
not born, it is define that a person not born
entrepreneurs,
he/she
can
acquire
entrepreneurial skills/knowledge from the
environment and set up business unit.
Everybody have not talent to become an
entrepreneur. It is the human development
program which is acquired by the
environment and the function of the
entrepreneur.
EDP help removing unemployment and
promoting small scale units.

EDP is more helpful in first generation

entrepreneurs. They solver their problem by
the EDP programs. EDP provide confidence
to the new entrepreneurs the how to solve
the problems and accept challenges.
Role of EDPs in INDIA1.Elimination of unemployment and povertyunemployment and poverty is the most
important problems faced by the Indian
economy.EDP can help people to opt for self
employment, if they do that then it remove
the unemployment to some extent. an
entrepreneur can generate employment for
others. If they got job it remove poverty
some extent.

2.Utilisation of local resources- India is the rich

country for natural resources available in the
remote areas. Proper utilisation of resources
creates sound economy growth of the country.
EDP will be helpful for utilising these
resources by proper training and educating
enterprising. Different tiny/ small firms comes
in remote areas utilising proper resources for
the improvement of local community.
3.Prevention of slums in urban areas- all the big
cities in India are highly congested. It Is not
easy process to generate enterprise in such
areas.
EDP is the progressive work for removal of
industrial slums.

EDP provides different types of incentives,

subsidies, and other infrastructural facilities
to set up enterprise in remote areas.
It is helpful not in expansion of industrial
slums but also reduce various problems
like- pollution, traffic and over crowding in
the cities.
4.Defusion of tension among youth- today is
the big challenge of young frustration
because they do their education, they are
qualified but they do not get their dream
job. It increase large scale unemployment
and result increase tension, involment of
unlawful activities.

Role of govt. in organising EDPsAfter the 1950 the central govt. was realised the
importance of promoting small scale industries
and increasing employment. The govt. was set
up
small
scale
industry
development
organisation (SSIDO) to providing training
facilities to entrepreneurs. And also set up
kahdi village industry commission (KVIC) for
motivating small units to producing/ marketing
of khadi and handicrafts items.
In 1984 the central govt. was setup national
institute
for entrepreneurship and small
business development (NIESBD). It is the
institute who promote the entrepreneurship
and small-

Business. IDBI and other financial institution

also set up, entrepreneurial development
institute of India (EDI).
NIESBD and EDI conducting research in
entrepreneurship development programs.
The following institution are associated with the
entrepreneurship development programs.
Small industries development corporation
(SIDC)
Industrial finance corporation of India (IFCI)
National small scale industries development
corporation.
Khadi and village industry commission.
National bank for agriculture and rural -

Development (NABARD).
SIDBI.
The name of some of the important
institutions operating at the state level to
assist the entrepreneursa.Small industries service institute (SISI).
b.District industrial centre's
(DIC).
c.State finance corporation
(SFC).
d.Technical consultancy organisation (TCO).
e.State small industries corporations (SSIC).
f. State industries corporations
(SIC).

Both institution either central/state providing

monetary and non monetary incentives,
concession and facilities for attracting new
entrepreneurs to set up small, medium, unit.
Main objective of EDPs to provide various
training programs and make self-employment.
Critical evaluation of EDPsThe study was done by a team of researcher
and experts appointed by the Gujarat
financial
corporation
to
evaluate
the
effectiveness of EDPs.
Entrepreneurship development program me an
evaluation published by the IIM Ahmadabad-

Performance
balance-

Description
1.Sample of
the studya.EDPs
covered
(sample
size).
b.
EDPs
trainees
covered
in
sample.
c.Sample
trainees
interviewed

of

the

sample

EDPs

No. of total

145

25

1295

30

865

66.80

at

Sample
430
trainees not
available
and
nontraceable
2.Macro
performance
of EDPs277
a.
No.
of
units set up
by the EDPs
trainees.

33.20

21.39

b.Trainees
actively
under
process.
c.Potential
start ups .
d.Trainees
blocked
under
process.
e.Nontraceable
trainees.
3- trainees
not
available for

78

6.02

356

27.41

129

9.96

146

11.27

a. Start ups
among
nonavailable.
b. Nonstarts ups
among
nonavailable.
c. Actual
start- ups
rate.
d. Expected
final start
up rate.

69

4.56

225

17.37

336

25.96

414

31.97

The above study define that 21% started

his/her business after undergoing
entrepreneurial training. But the final
expected startups rate was 32%. We
found 10% trainees blocked due to
different reasons in different stages in
setting up units. if they were not
managed effectively they might be join
the category of those 29%, trainees
who had already given up the idea of
launching their venture.

National institute for entrepreneurship and

small business development- (NIESBD).
It was established in 1983 by the ministry of
industry govt. of India. It was set up as an
apex body for coordinating the activities of
various institution involved in entrepreneur
development
In the area of small industry and small
business.
The following activities involvesEffective training methodology and strategies.
Developing training methods.
Providing support to central and state
agencies in executing EDPs.