TITLE OF THE PROJECT CRITICAL APPRAISAL OF … Summary/MRP... · There is a significant...
Transcript of TITLE OF THE PROJECT CRITICAL APPRAISAL OF … Summary/MRP... · There is a significant...
1
SUMMARY
TITLE OF THE PROJECT “CRITICAL APPRAISAL OF INSTITUTIONAL SUPPORT
PROVODED BY CENTRE FOR ENTREPRENEURSHIP DEVELOPMENT MADHYA
PRADESH (CEDMAP) FOR YOUTH ENTREPRENEURSHIP IN BHOPAL DIVISION”
JYOTI MATHUR
ASST. PROF
DEPARTMENT OF COMMERCE
BSSS BHOPAL
INTRODUCTION
India population is a strong backbone for the promotion of entrepreneurs in the
country. The entrepreneurship development would not only lead to the
employment generation but also the creation of wealth for the governments and the
country as a whole. With India, being part of the global village, it is witnessing the
flooding of opportunities that require innovative minds and talents to grab and
explore. In pursuit to achieve its objective of becoming developed economy, it is
important match the talent with the market, technology and innovation demands.
With the limitation of big business house to grab niche markets, the entrepreneurs
are looked upon and developed to take the lead to hold the opportunities and
provide a bridge to fill the gap of product/service needs at small scale enterprises.
In it realized that the central force for economic development lies in the
entrepreneurial development and growth. A large portion of the population is
believed to be engaged in unorganized sector and it is assumed that entrepreneurial
set-ups would organize this workforce and provide them better working conditions
and improved standard of living.
2
Entrepreneurship is now slowly and gradually gaining momentum in India. With
efforts made by the government to promote SME’s, the intentions are well-
communicated to the society. However, efforts are needed to bridge the gap
between entry and survival of entrepreneurial ventures in the country to provide
sustainability to existing ones and motivate more to join the regime. This calls for
government to understand the need of training programmes, financial assistance
and economic policies on the grassroots levels of entrepreneurial development.
This study on “Critical Appraisal of Institutional Support Provoded by Centre
for Entrepreneurship Development Madhya Pradesh (CEDMAP) For Youth
Entrepreneurship in Bhopal Division” will benefit the Government, society,
Banks and young entrepreneurs in gaining critical insight on need for
entrepreneurship development.
OBJECTIVES OF THE STUDY
1. To find out impact of project consultancy services by Centre for
Entrepreneurship Development Madhya Pradesh (CEDMAP) for youth
Entrepreneurs in Bhopal division.
2. To critically analyze project consultancy services by Centre for
Entrepreneurship Development Madhya Pradesh (CEDMAP) for youth
Entrepreneurs in Bhopal division.
3. To provide various suggestions on the basis of analysis of Institutional
Support by Centre for Entrepreneurship Development Madhya Pradesh
(CEDMAP) for youth Entrepreneurs in Bhopal division.
3
RESEARCH METHODOLOGY
Research methodology is a combination of procedures, models, and techniques
used to determine the solution of a research problem (Panneerselvem, 2005).
Research methodology helps a researcher by providing guidance for the research
study. The tools and techniques for data collection and subsequently methodology
employed in the analysis of the data have a great impact on the reliability of the
results (Elhance & Agarwal, 2005). A systematic and well-planned research
methodology guides a researcher about why the researcher has used particular
methods and why not others so that a consistent result can be obtained to be
evaluated by self or others (Kothari, 1999). The chapter is devoted towards
describing the methodology employed in conducting the proposed research work.
In the research work researcher provides the research design (sampling design,
population, sample, sampling frame, sampling technique, sample size, data
collection instrument, pilot study, and administration of the survey instrument
etc.). The detail description about research methodology and research design is
presented in the subsequent sections.
SAMPLING UNIT
The sampling unit included all those professional who are involved in training and
consultancy of CEDMAP from Bhopal Division.
SAMPLING PROCEDURE
There are various methods available for the collection of the data. Various tools
viz; interview of respondent or group of respondents, questionnaire and
observation methods; are available for data collection. It includes personal contact,
4
telephonic survey, mail survey and electronic survey. Researcher has preferred the
personal contact method to collect the primary data as it is more effective
compared to other.
SAMPLE SIZE
For CEDMAP, total 100 people from 6 units forming Bhopal Division were
surveyed.
DATA COLLECTION
The Primary Data was collected by using Questionnaires and Secondary Data was
collected from annual reports, Research journals and internet.
HYPOTHESIS OF THE STUDY
H1: There is a significant relationship between credit facilities assistance of
CEDMAP in entrepreneurship development
H2: There is a significant relationship between customer relationship management
of CEDMAP in entrepreneurship development.
H3: There is a significant relationship between non-financial support of CEDMAP
in entrepreneurship development.
H4: There is a significant relationship between training & consultancy support of
CEDMAP in entrepreneurship development.
5
STATISTICAL TECHNIQUES USED
The tools used for the data analysis are Multiple regression analysis and factor
analysis. The testing of hypothesis is done by using ANOVA.
LIMITATIONS OF THE STUDY
The study aims to study the role of CEDMAP in Youth entrepreneurship
development of Bhopal division. During the study, the sources of data
collection, include both primary and secondary, were either unavailable or
unwilling to be disclosed. In case of secondary data, the information large but
scattered, which created ambiguity in understanding the realistic contribution of
the institutions in development activities. Also, due to lack of standalone data
available at Bhopal divisional level, it was difficult to develop concise
interpretation of the consolidated data on Madhya Pradesh. Therefore, only
complete data for the period of 7 years (2010-17) was used, as per the
availability and or willingness to disclose from the institutions. For assessing
the contribution of banks in the study, there were few prominent schemes which
were launched recently in 2015 to encourage entrepreneur participation but the
information on the scheme performance and entrepreneur participation is still
under the process of compilation and therefore only literature has been
reviewed. In case of primary data, the willingness of the respondents is of acute
importance. During the administration of the questionnaire on the respondents,
the employees showed their unwillingness and inability to participate in the
activity and therefore few questionnaires were returned incomplete. The
biasness of the respondents cannot be completely removed, despite of the effort
made to incorporate simple, easy and straight-forward questions with a
combination of open-ended and close-ended responses in the questionnaire.
6
FINDINGS AND INTERPRETATION
After subjecting the data to rigorous analysis on several parameters, following
findings were obtained.
1. The study establishes there is a considerable rise in number of
registrations with DICs across the country from 1.73 lakh in 2007-
08 to 4.25 in 2014-15, a resultant growth from 11.77% in 2008-09
to 17.18% in 2014-15 is indicative of the change in attitude of the
population which is all set to take risk to explore innovative
instincts for betterment of self and society.
2. As per the study, the state of Madhya Pradesh has made
remarkable achievements in promoting MSME entrepreneurship
from 2014-16.
3. The analysis of Entrepreneurship in Bhopal division show
enterprises owned by socially backward groups in each of the three
segments of MSME sector reveals that the Micro sector had
66.42% of enterprises owned by socially backward group, whereas
small and medium sectors had 36.80% and 24.94% of enterprises
owned by socially backward groups respectively.
4. The data on the development of MSME in Bhopal division
covering 6 districts viz., Bhopal, Guna, Raisen, Rajgarh, Sehore
and Vidisha, from the DICs office indicates the increase in number
7
of micro enterprises but insignificant organization of medium and
small enterprises in Bhopal Division.
5. In Bhopal, the number of micro enterprises in 2007-08 were 372
whereas in 2014-15 it reached to 607, small enterprises in 2007-08
stood at 33 and in 2014-15 at 18, medium enterprises opened there
account only in 2014-15 with 1 registered enterprise.
6. The MSME institute has achieved success in wage-employment
and self-employment objectives of its programmes.
7. Madhya Pradesh has been ranked amongst the top 10 states in the
development of MSME and other non-farm industries including
Khadi and Village industries.
8. Under the study, the role of Centre for Entrepreneurship
Development in Madhya Pradesh (CEDMAP) in entrepreneurship
development was assessed and it was found that CEDMAP as an
autonomous institute is a participating institute of Ni-MSME,
Hyderabad.
9. The centre operates in Madhya Pradesh and Chhattisgarh under 6
regional training centers including, 4 situated in Madhya Pradesh
viz., Bhopal, Jabalpur, Indore and Gwalior and 2 in Chhattisgarh
viz., Raipur and Bilaspur. Under these 6 regional training centers,
Bhopal center covers 11 districts offices (Hoshangabad, Harda,
Raisen, Rajgarh, Sehore, Vidisha, Bhopal, Chhindwara, Shajapur
and Betul), These centers have reportedly imparted training to over
8
one lakh participants every year under various trade sectors and
segments at village and block levels. The institute has a wide
repository of professional and knowledge experts’ alongwith more
than 150 employees serving in these two States. The departments
of CEDMAP includes – “Entrepreneurship training division”,
“Skill certification division”, “CEDMAP IT Academy (CITA)”,
“Medicinal & Aromatic Plants Division”, “Financial Inclusion
Division”, “Consultancy Division” and “Publication Division”.
10. In the year 2008-09, 54 EDP trainings were led and 1500
people were profited. Going forward, it was reported that 70, 79
and 104 EDP trainings which profited 1912, 2464 and 3199 people
in year 2010-11, 2011-12 and Year 2012-13 respectively were
conducted. These training programmes witnessed an increase of
19.87% in 2010-11, then 28.87% in 2011-12 and finally 29.83% in
2012-13 in the number of beneficiary recipients.
11. The study indicates that the year 2013-14 had a high number
of EDP trainings as matched with the high rise in the number of
beneficiary recipients, rising to 347 trainings assisting 10491
recipients demonstrating a growth of 227.95%.
12. The study proposed that credit facilities and entrepreneurship
would be positively associated The H1 hypothesis is satisfied at
significant level .05 (t value = 3.398, p-value = 0.001). The study
proposed that customer relationship management and
9
entrepreneurship would be positively associated The H2
hypothesis is satisfied at significant level .05(t value = 3.017, p-
value = 0.003). The findings of this study are in conformance with
other research studies' results regarding the customer relationship
management and entrepreneurship development.
13. The application of the concept of customer relationship
management is seemingly the key to sustainable business
organizations especially those in the service sector. From the study
it is clear that CEDMAP as the training & consultancy
organization, have positive and significant contribution towards
entrepreneurship development. As we have proposed that training
and consultancy has significant impact on entrepreneurship
development. Thus, the hypothesis H4 is satisfied. The important
fact is that entrepreneurship training is considered important at
many societal levels, and the results achieved should be taken into
consideration in the targeting and shaping of future entrepreneurs.
This applies both to policy makers and to individual teachers and
consultants. The entrepreneurs can occur in all walks of life and
increasingly attention is being focused not just on business
entrepreneurs, but on academic entrepreneurs, civic entrepreneurs,
social entrepreneurs and technological entrepreneurs etc.
Moreover, content on entrepreneurship should entails information
on the founding and managing of new businesses.
10
The above findings indicate a strong and significant role played by
CEDMAP in contributing towards entrepreneurial development in
individual as well as, in combine capacities. It is also evident that the
journey of such a support network is continuously striving hard to
promote new schemes/services and technologies to provide a strong
platform for the entrepreneurs to be competitive to meet domestic
and global challenges.
SUGGESTIONS
On the basis of findings of the study and the suggestions given by the
respondents in the questionnaire following recommendations are proposed for
development of entrepreneurship among youth entrepreneurs to CEDMAP:
1. In the present context, entrepreneurs face the challenges to develop
strong relationship of trust and commitment with the banks and
financial institutions, due to lack of timely availability of
consultancy support and counseling. Though, financial institutions
like SIDBI and SBI have enhanced their services through number
of schemes and support services to MSMEs, efforts are needed to
establish dedicated department within the bank branches for
counseling the individuals to motivate and socially stabilize the
entrepreneurs to prepare their risk-appetite.
2. In order to encourage entrepreneurship, more collateral-free loan
schemes should be introduced to cater to the need of rural
population in villages and cities. Efforts should be made to reduce
the paper-work procedural formalities and proper training should
11
be arranged for the less literate or illiterate individuals to help them
operate online services through internet at their locations.
3. The government initiatives as supported by the banks and financial
institutions need extensive marketing to reach to the targeted
audience. Open awareness programmes, seminars and workshop
on the scheme awareness must be conducted at school, college,
university and block levels to provide information to existing and
aspiring entrepreneurs. Various other modes of mass
communication can be used to spread information on the schemes,
eligibility, subsidies and other relevant information to every
individual in the state. Dedicated programmes to share policy
guidelines and schemes information should be relayed through
national broadcasting.
4. It is important that employees of the banks and financial
institutions should be regularly updated through training,
workshops and seminars on the policy matters and its
implementation in the correct spirit of policy statement. Every
employee of the bank and financial institution must comprehend
and understand the scheme, policy and subsidy in the manner as
intended by the policy developers. Any ambiguity in such
understanding gives rise to loopholes in the form of individual
perception in implementation, leading to confusion and
complication for the employees which ultimately gets transferred
to the existing and prospective entrepreneurs making the process
look complicated and time-consuming.
5. To improve the institute and entrepreneur relations, it is necessary
that banks and financial institutions must have unique codes to
validate the business plan. These codes should be customized
based on the nature of industry, business, type of product, area,
etc., and should be quantitative in nature so that the same is
12
understood by the aspiring entrepreneurs to develop their business
plan in line with these codes and on evaluation, the banks and
financial institutions must provide a written evaluation report with
suggestions, in case of any modification or rejection. Several
rounds of screening should be undertaken with comments and
suggestions to improve and measure the performance at every
stage with the previous record to check the improvement and
reduction in ambiguity and risk.
6. The biggest loophole is the non-availability of unified and concise
data pertaining to entrepreneurs and MSMEs in the state. At the
state level, technical support should be provided to banks through
software or other majors to get readily available information about
the aspiring and existing entrepreneurs to make timely decisions
and take corrective actions. It is important to create state level
repository of the data to assist the financial, non-financial and
prospective entrepreneurs to access the information in one go and
understand the current position of the sector to elaborate the cause
of problem or new opportunities yet to be explored.
7. Extensive training programmes/workshops/seminars must to be
organized at village and block levels. More and more participation
must be encouraged to take benefit from the programmes. Some
incentives in the form of guaranteed employment, loan incentives,
subsidy incentives or other attractions can be attached to promote
participation in these activities.
8. The banks, financial institutions and CEDMAP can work jointly by
making it mandatory for entrepreneurs to complete certain man
hours of training at every stage of enterprise development. This
shall benefit the individual to develop a mindset and skill-sets to
face the dynamism of the business environment and reduce risk,
13
improve quality and ultimately improve profit margins, leading to
growth and chances of long-term survivals.
9. For training institute it is necessary to upgrade the knowledge of
the employees by regularly organizing
training/workshops/seminars/simulations, etc., to keep the
employees and associates abreast with the latest development and
advise them to upgrade by undertaking certification programmes of
the institute to check their potentials and capabilities.
10. It is suggested that CEDMAP should present details of the
entire training program on the website, to facilitate
entrepreneurship development.
11. It is also suggested that in order to encourage educated youth
in Bhopal, Institutions like SIDBI, SBI and CEDMAP should aid
educational institutions to open incubation centers for development
of entrepreneurship in Bhopal Division. Grants can be provided to
academic institutions with incubation centers.
12. Institutions like SIDBI, SBI and CEDMAP should also invest
in social media campaigns on Entrepreneurship development.
13. It is suggested to CEDMAP to publish Journals and More
books to facilitate further research work in field of
entrepreneurship.
These suggestions are interpretation of the feedback received from the
respondents of the questionnaires. The responses have been
interpreted and collective presented to understand the need and scope
for improvement in the banks, financial institutions and training
institutes. These suggestions would serve the base for the policy
makers to understand the issues in implementation. It shall assist the
implementing institutions to understand the reasons of ambiguity,
scope of improvements and customization of programmes to create
14
awareness among the people about the schemes and services. These
suggestions will support the CEDMAP as an institute to work in the
direction to improve the quality of its employees and associated
partners’ alongwith the upgraded and updated knowledge sharing with
the entrepreneurs.
CONCLUSION
The employment-oriented thought process for small sector underwent
changes by the end of sixties and now small region was recognized as
an effective instrument to utilize the entrepreneurial capabilities
remained till now inactive in the country.
Realizing the number of issues confronted by the entrepreneurs in
setting-up enterprises, the Government determined to provide
promotional package deals to the entrepreneurs. Promotional package
deals provided infrastructural facilities, financial assistance and
incentives and technical and managerial assistance by various assisting
corporations of the Central, State and local levels.
This led to the policy makers to comprehend that facilities and
incentives are, of course, imperative for setting-up enterprises, but at
present, are not sufficient to solicit enough response from the
entrepreneurs. Thus, it was by this time, it is now realized that
development of human resource is the fundamentally important for the
development of entrepreneurship in the country. These realizations
and experiences forced the policy maker to draw concrete policy
statements to promote the growth, development and sustainability of
entrepreneurs in the country. It is the need of the hour to draw a
dedicated ‘Entrepreneurship policy’ which shall lays a strong evidence
15
to support the importance attached to motivation, opportunity to
explore and skill development as the fundamental facets for the
success of entrepreneur development in the society across the country.
It is important to understand the need for social and psychological
motivation amongst people to strive to grow as entrepreneurs and
create conducive surroundings where encouraged individuals will
discover viable possibilities for exploration and exploitation, and they
will have the required assistance in terms of education, knowledge,
skills, resources and all ancillary support services to generate value and
wealth from these opportunities.
It is well-understood that entrepreneurship development is prime
important for the socio-economic development of the country, it is still
not very clear, as to how it can be achieved. It is to be understood that
the development of entrepreneurship is based on regional interest and
assistance from the State governments to promote and prudently
implement the policies and schemes of the Central government. The
State also has the power to develop, implement and monitor policies in
lines and instructions with the central government. It is the sole
responsibility of the State government to step-in to encourage the
development, growth and sustainability of entrepreneurship in the
state and uplift the macro and micro economic numbers of the state in
total contribution to the country’s macro economic data.
Till today, financial assistance and credit facilities offered by banks and
financial institutions are still lacking behind to support the needs and
demands of the entrepreneurs. This gap in demand and supply results
in the failure of several potential enterprises and develops
apprehensions among the new ones to be undertaken. Despite several
16
efforts made by government to provide state-of-art technology and
upgraded software, it is required that intensive trainings are need of
the hour, both of the internal users and end-users to reap the benefits
of the facilities.
There is a wide scope for the facilitation services and ancillary
industries and services to grow and promote the growth of
entrepreneurs in the country. The advancement in technology is also
required in creating and maintaining management information system,
at all level of entrepreneur eco-system to provide ready access to the
entrepreneurs and policy maker to evaluate and check to control
deviation beforehand.
Entrepreneurship development is an unorganized concept with
unlimited potentials to be developed and explored. It is necessary to
understand the interest and need of the society and to then develop
aspiring entrepreneurs to face the challenges of dynamic business
environment. It is important to expand the skills and risk-appetite of
the individuals to prepare them for the global exposures and
competitions.
In order to promote the concept of entrepreneurship, it has been
included in the education curriculum at schools, colleges and
universities. Post-graduate degrees and doctoral degrees are also
awarded to the pursuant to these streams. It is necessary that at these
preliminary levels, short-term training or certification programmes
should be conducted for students, training, workshops, etc., may be
offered in the form of summer schools. At professional degree colleges,
students should be compulsorily offered trainings to develop
enterprising skills.
17
A strong support by the industry-institute partnership may help the
students get proper training for management skills needed in
enterprise establishment. Incubation centers at institution levels can
help boost the environment for entrepreneurship in the country. Such
incubation centers in the colleges and universities can be financially
backed by private-public partnership to encourage students to explore
and develop extravagant thought-process into meaningful businesses.
The growth of any sector is possible with complete and valid
awareness. It is necessary that the information should follow in the
correct prospective to the right recipient. Thus, more modes of
information sharing should be utilized to promote the information on
government schemes, policies, procedures, benefits and subsidies.
Television and broadcasting should be to provide dedicated
programmes for information sharing and training.
Much has been done in the past and still efforts are continuously
aligned to support the individuals demanding to be trained as
entrepreneurs, there is a significant need to develop strong social
support, lenient policies and unambiguous implementation network to
encourage more and more youth to take entrepreneurship as their
career choice or profession. There is a lot more need to revamp the
thought process of ancestral transfer of entrepreneurial skills in
individuals in the family and that it is possible to create successful
entrepreneurs through effective support, assistance and training.