Selection of Potential Entrepreneur for Entrepreneurship Development Programmes

The proper identification and selection of potential entrepreneurs is the first and foremost step in EDP. Utmost care should be taken to identify the right candidates for training. Tests, group discussion and interviews may be used in the selection of entrepreneur.


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Selection of potential entrepreneurs has two essential components:

(A) Identifying Entrepreneurial Traits


(B) Identification of Enterprise

Identifying Entrepreneurial Traits:

Every participant must have a minimum level of eligibility for developing into an entrepreneur. The entrepreneurial traits are broadly classified into two groups:

(I) Socio Personal Characteristics:

(II) Human Resource Factors:


(I) Socio-Personal Characteristics:

Socio-personal characteristics include:

(i) Age:

Young people are more successful entrepreneurs because the older people are more reluctant to take risky ventures.


(ii) Education:

A minimum level of education is essential.

(iii) Family background:

Family background helps in creating entrepreneurial environment and occupational awareness for the entrepreneurs. If an entrepreneur selects a trade which is being carried in his family, it is obvious that he would be more with it.

(iv) Size of family:

The size and type of the family and status of entrepreneur in the family are also important social personal characteristics. In a joint family, entrepreneur may command little authority but has generally a greater risk-bearing capacity as compared to nuclear family.

(v) Working hands:

A small entrepreneur has generally to depend upon family members as he cannot afford to hire workers.

(vi) Social participation:

Social participation determines the amount of influence of entrepreneur outside his immediate family circle. The successes of entrepreneur greatly depend upon the social participation.

Human Resource Factors. Human resources factor includes:

(i) Achievement Motivation:

Achievement motivations include both personal achievement and social achievement. It is the basis of entrepreneurship as entrepreneurs with high need achievement succeed better.

(ii) Risk taking willingness:

It refers to seeking challenge on one’s activity. Two persons may view the same venture as involving different degree of risk. If both of them go for the same venture, if means that the person perceiving greater amount of risk in the venture has the higher risk-taking willingness.

(iii) Influence Motivation:

It refers to the desire for influencing other people and the surrounding environment. The entrepreneur would need sufficient motivation to both influence them and control the means to achieve the end in order to succeed in dealing with these diverse agencies and forces.

(iv) Personal efficiency:

It has been defined as the general sense of adequacy in a person. It is the tendency of an individual to accept success or failures which are within his control. It represents the potential effectiveness present at the inner level.

The roots of efficiency of an individual lie in his perceptions and beliefs about himself. These beliefs may be the result of an individual’s self-concept and perception of his own strength.

(v) Aspirations:

Aspirations are goal statements concerning future level of achievement. These can be regarded as a concept of individual of his future prospects and as a form of self motivation.

(Vi) Identification of Enterprise:

Once an entrepreneur is identified, it is necessary to identify a suitable enterprise or project for him. The enterprise must be matched with the potential entrepreneur. All the background information like his skills, experience in the field, the physical resource available, family occupation, etc. should be taken into consideration.

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