EDP is essential for first generation entrepreneurs because they may not become successful unless a proper training is received. It is a continuous process of motivating the entrepreneur. The potential entrepreneurs can solve many of their problems provided proper training is given to them.
On the basis of above discussion, it can be concluded that EDP is becoming increasing popular and it can help the country in the following ways:
1. Eliminates poverty and unemployment:
The basis problems of most of the developing countries like India are poverty and unemployment. Entrepreneurship development programmes can help the unemployed people to opt for self-employment and entrepreneurial as a career.
Several programmes like National Rural Employment Programme (NREP), Integrated Rural Development Programme (IRDP) etc. are in operation in India to help the potential entrepreneurs. All these special schemes intend to eliminate the poverty and solve the problem of unemployment.
2. Balanced regional development:
Successful Entrepreneurial development programmes help in foster the industrialization and reduces the concentration of economic power. It is because the small-scale entrepreneurs can set-up their units in remote areas with little financial resources which can help in achieving balanced regional development.
The medium and large enterprises do not help in reducing the disparities in income and wealth of the people. Thus, Entrepreneurial development programmes help in balanced regional development by spreading industrial units in each, and every part of the country.
3. Prevents industrial slums:
The urban cities are highly congested and leading to industrial slums. Decentralization of industries is very much required by relocating the industries.
Entrepreneurial development programmes help in removal of industrial slums as the entrepreneurs are provided with various schemes, incentives, subsidies and infrastructural facilities to set up their own enterprises in all the non-industrialized areas.
This will control the industrial slums and also reduce the pollution, traffic congestion, overcrowding in cities etc.
4. Harnessing locally available resources:
Since abundant resources are available locally, proper use of these resources will help to carve out a health base for sound economic and rapid industrialization.
The entrepreneurial development programmes can help in harnessing these resources by training and educating the entrepreneurs.
5. Defuses social tension:
Every young person feels frustrated if he does not get employment after completing his education. The talent of the youth must be diverted to self-employment careers to help the country in defusing social tension and unrest among youth which is possible by entrepreneurial development programmes.
6. Capital formation:
The various development banks like ICICI, IDBI, IFCI, SFC, SIDC and SIDBI take initiative in promoting entrepreneurship through assistance to various agencies involved in EDP and by providing financial help to ne entrepreneurs. It is impossible to start a new enterprise without sufficient funds.
Entrepreneurs are the organizers of factors of production who employ their own and borrowered money for setting up of new ventures. This all results in the process of capital formation.
7. Economic independence:
Entrepreneurs develop and produce substituted products of imported goods and prevent the over-dependence on other countries.
They also enable the country to produce different variety of better quality goods and services at competitive prices of imported goods which help in promoting the economic independence of the country.
8. Improvement in per capita income:
Entrepreneurs always explore and exploit the new opportunities which lead to productive use of factors of production for more output, employment and generation of wealth.
The overall increase in productivity and income help in improvement in per capita income. EDPs play a significant role in setting up of more industrial units to generate more employment opportunity and to secure improved per capital income.
9. Facilitating overall development:
Entrepreneurs act as agents of proper use of various limited resources such as men, money, material, machines etc. which leads to overall development of an area, an industry.
The successful entrepreneurs set a motivating example for others to adopt entrepreneurship as a career. Thus entrepreneurs create a motivating environment for economic development of a country.