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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.

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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.

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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,

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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.

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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.

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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

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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

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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

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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.

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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

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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

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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,

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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

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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

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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

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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.

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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.