Problems faced in implementing Entrepreneurship Development Programmes in India

Problems in the Conduct of EDPs

1. No policy at the National Level:

Government of India is fully aware about the importance of entrepreneurial development. But there is no provisional of a national policy on entrepreneurship.

Consult ICE: Capacity Building in Entrepreneurship

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2. Problems at the pre-training phase:

Identification of business opportunities, finding and locating target group, selection of trainee and trainers etc. are basic problems faced by entrepreneurial pre-training phase.

3. Over-estimation of trainees:

EDP agencies overestimate the skills and capabilities of the educated youth to become entrepreneur.

4. Duration of EDPs:


Duration of most of the EDPs varies between 4 to 6 weeks, which is very short period to develop entrepreneurial skills in the participants.

5. Non-availability of infrastructural facilities:

EDPs conducted in rural and backward areas suffer interior infrastructural facilities like proper class room, suitable guest speakers, boarding and lodging etc.

6. Improper methodology:

The course contents of EDPs are not standardized.

7. Mode of selection:

There is no uniform procedure adopted by various agencies for the identification of prospective entrepreneurs. Organizations conducting EDPs prefer those persons who have some project ideas of their own and thus this opportunity is not provided to all the interested candidates.

8. Non-availability of competent faculty:


Non availability of competent teachers causes failure of this programme.

9. Poor response of financial institutions:

Entrepreneurs are not able to offer collateral security for the grant of loans. Banks are not prepared to play with the public money and hence they impose various conditions for the grant of loans.

Those entrepreneurs who fail to comply with the conditions are not able to get loan and hence their dream of setting up their own enterprises is shattered. Helpful attitude of lending institutions wills go a long way in stimulating entrepreneurial climate.

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