Unit-3Innovation-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.---

entrepreneurs—inventors.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 innovation-1.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 programmes- it 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 EDP’S-a. 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 EDP’s- 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 INDIA-1.Elimination of unemployment and poverty-

unemployment 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 EDPs-After 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 entrepreneurs-

a. 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 EDPs-The 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 of the sample EDPs at balance-

Description1.Sample of the study- a.EDPs covered (sample size).b. EDPs trainees covered in sample.c.Sample trainees interviewed

No. of total

145

1295

865

%

25

30

66.80

Sample trainees not available and non-traceable

2.Macro performance of EDPs-

a. No. of units set up by the EDPs trainees.

430

277

33.20

21.39

b.Trainees actively under process.c.Potential start ups .d.Trainees blocked under process.e.Non- traceable trainees.3- trainees not available for interview at the time of field survey-

78

356

129

146

6.02

27.41

9.96

11.27

a. Start ups among non- available.

b. Non-starts ups among non- available.

c. Actual start- ups rate.

d. Expected final start up rate.

69

225

336

414

4.56

17.37

25.96

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 involves-Effective training methodology and strategies.Developing training methods.Providing support to central and state agencies in

executing EDPs.