APPROACHES TO

ENTREPRENEURSHIP DEVELOPMENT
IN SAARC COUNTRIES
How to Develop Entrepreneurship in Bangladesh
The GEM (Global Entrepreneurship Monitor)
Framework
The GEMs conceptual model postulates that for a potential entrepreneur the
business environment, as imbibed in Entrepreneurial Framework Conditions
(E.F.C.) have crucial bearing on influencing a potential entrepreneurs decision
for economic activity. The conditions are:
finance availability
government policies and programs
education and training
R&D transfer
commercial, legal infrastructure
internal market openness
access to physical infrastructure
cultural and social norms
 THE EDP INPUTS AND THEIR FOCUS

FOCUS OBJECTIVES TRAINING

(NEEDS) INPUTS

Entrepreneur Reinforcement of Motivation and

(Aptitude) Entrepreneurial Behavioural Inputs
Traits

Enterprise Facilitation of Business Opportunity

Establishment Decision-making Guidance,
(Knowledge) Process to Set up Information, Project
New Venture Planning Inputs and
Technical Inputs
Enterprise Successful and Managerial Inputs
Management Profitable
(Skills) Operation of an
Enterprise
 Entrepreneurship Development Institutes (EDIs)

EDIs are at the core of MSE promotion and development they enlarge the
entrepreneurial base and create self-employment opportunities through a
spectrum of activities

Training, Education,
Extension

Surveys, IT Services
Research Projects, MSME Promotion
Publications & & Development
Documentary Films Consultancy,
Counselling,
Cluster Mentoring &
B2B Conventions
Development
4
 STAGES OF ENTREPRENEURSHIP DEVELOPMENT AND
RELATED INTERVENTIONS
1. Emergence stage
New enterprise creation programmes
Rural & Micro Enterprise and Micro Finance Development Programmes
Counselling
Business Opportunity Guidance
Pre-investment studies
Succession Planning
Business Incubators
Group Entrepreneurship Development
2. Survival Stage
Thematic Programmes (Finance, Marketing, HR,
Technology, Exports, Quality, ISO, Brand Building, etc)
Performance Improvement Programmes
Counselling
 STAGES OF ENTREPRENEURSHIP DEVELOPMENT AND RELATED
INTERVENTIONS

3. Growth Stage
Growth Programmes
Developing Business Counsellors
Developing Small industry Managers
Cluster Development Programmes
Cluster Development Executives Programme
Thematic Programmes

4. Programmes for Support System

Business Development Service Providers
Entrepreneur Appraisal/Assessment Programme
UNIDOs COMFAR based Project Appraisal Programme
Project Formulation and Appraisal for Venture Financing
Micro Credit Management and Product Development (e.g. Micro
Insurance)
NGO-Banker Interface Programmes
India

India has the strongest Entrepreneurship Development Programs in the

region. Their efforts began quite early and has developed quite a way.
Government policies also have good support to develop this.
Entrepreneurship Orientation and Awareness
Programs
Entrepreneurship Orientation and Awareness Programs are organised at
the first stage of inculcating entrepreneurship and are targeted to the
pre-start-ups who may or may not start a business and are not actively
engaged in launching their ventures. This segment consists of almost
every body except the existing entrepreneurs. Their needs, by and large,
are to identify a business, to understand the process of business launch,
to acquire self-confidence and motivation, etc. which could help them
launch their ventures in future or at least consider entrepreneurship as
an alternative career path.
New Enterprise Creation (NEC) Programs

An NEC program is defined as a comprehensive training package evolved

to develop competencies in trainees/participants, which would lead to
self-employment of the promoter setting up of an enterprise creating
further employment. The program aims at developing knowledge, skills
and attitudes, etc. in a potential entrepreneur to make him/her an actual
owner-manager of an enterprise.
It is offered on a regular basis and includes an adequate planned post-
training follow-up support. Single major objective of the NEC-EDPs could
be stated as creating well-rounded entrepreneurs (preferably first
generation) to take up the challenges of entrepreneurship.
New Enterprise Creation (NEC) Programs

Information related inputs (procedures, rules and regulations etc. required

for launching a venture).
Business opportunity guidance: to make trainees aware of opportunity
structure in the environment and develop skill for opportunity search.
Formulation of a Preliminary Business Plan and Market Survey
Behavioral Inputs: to develop their motivational and entrepreneurial traits
such as need to achieve, risk taking, initiative etc.
Business Plan Preparation
Technical Orientation and Skill Development
Managerial Inputs: to develop managerial skills of entrepreneurs
Marketing Skills
Legal System-related Inputs: to make them aware of the rules and
regulations involved in running a small industrial undertaking
Existing Entrepreneurs Program for Small
Business Survival and Growth
The start-up, survival and growth form three stages of enterprise building.
Responding to the business opportunities offered by the environment,
some entrepreneurs plunge into a business without the necessary
/adequate preparations. Consequently, they face 'teething troubles'
during the first two or three years of launching the venture. Most of the
ventures fail during this critical stage. Such entrepreneurs need to be
assisted to cross the 'survival stage successfully.
Existing Entrepreneurs Program for Small
Business Survival and Growth
EDI offers three such programs:

Performance Improvement Program (PIP): The program is targeted at those

entrepreneurs who have been in business for a couple of years or so and
who did not have the benefit of formal training in small enterprise
management prior to launching their ventures
Growth Programs (GP): The training-cum-counselling intervention targeted at
well-established entrepreneurs is spread over the three phases focusing on
one-on-one interaction between the entrepreneur and an EDI-trained
Business Counsellor to facilitate formulation of firm specific growth plans.
Small Industries Management Assistants Program (SIMAP): To develop a
second line of leadership to ease off the burden of entrepreneurs.
Gaining Entrepreneurial Competitiveness
through Clusters
Clusters are defined as sectoral and geographical concentration of micro,
small & medium enterprises with interconnected production system
leading to firm/unit level specialization and developing local suppliers of
material inputs and human resources. Availability of local market
/intermediaries for the creation of the cluster is also a general
characteristic of a cluster.
The Ministry of Micro, Small and Medium Enterprises, Government of
India, has laid special emphasis on development of clusters. In August
2003, the Small Industry Cluster Development Program (SICDP) was
launched by the Ministry to give special attention to cluster development.
It was made broad-based by adopting holistic pattern of development of
the cluster encompassing marketing, exports, skill development, setting
up of common facility centre, etc., including technology upgradation of
the enterprises.
The Government Strategy for Promoting
Entrepreneurship in India
The government promote the small businesses through various
promotional policies consisting of various incentives such as
provision of concessional finance
infrastructural facilities
creation of support institutions
technical and managerial guidance
protective measures such as reserving 675 products exclusively for
the Micro, Small and Medium Enterprises (MSME). The government
makes its purchases from the MSME on the price preferential terms to
provide the sector with marketing support, besides purchasing 358
items exclusively from small-scale industries.
Performance and Credit Rating Scheme
Formal Education

Entrepreneurship Development Institute (EDI) has a full 2-year Post

Graduate Program in Entrepreneurship
The entrepreneurship course has been made an integral part of vocational
education in Gujarat.
EDI also offers a Diploma in Entrepreneurship through distance learning
mode known as Open Learning Program in Entrepreneurship (OLPE).
National Science and Technology Entrepreneurship Development Board
(NSTEDB) supports engineering colleges and universities in setting up
Innovation and Entrepreneurship Development Centers (IEDCs), Science and
Technology Entrepreneurship Parks (STEPs) and Technology Business
Incubators (TBIs).
EDI with its network organisations conducts Faculty Development Programs
(FDPs) for university and college teachers to train them in How to teach
Entrepreneurship.
Pakistan

Pakistan has several institutes giving training to Entrepreneurs. The programs include:
Startup Boot Camp: it is a broad platform that helps aspiring entrepreneurs and
their teams develop and launch their business startups and learn the basic
business creation elements. It also provides a network of mentors & coaches for
one-to-one mentoring, and industry connections.
Entrepreneurship short course: A three month course giving an opportunity for
startup founders to practically develop products and services. They learn step by
step, how to launch their business, using business plan guide to reach target market
Women Entrepreneur Development program: Targeted specially to the rural women.
Micro Entrepreneurship Development Program
Youth Entrepreneurship Development Program
Seminars to promote Entrepreneurship
LUMS Centre for Entrepreneurship

This particular center has an interesting program. Their program is

divided in three parts:
Scouting: They visit various nationwide events that bring
entrepreneurs and innovators together on competitive platforms.
When they identify a promising high-growth or high-impact startup led
by a passionate team, the founders are invited to meet the Foundation
Council at its next meeting..
The Foundation: They offer a 4 month long intense business
incubation and acceleration program. The Foundation takes away
most administrative hassles so that founders can focus on developing
their ventures. Mutually agreed upon milestones are used to gauge
startup development throughout the 4-month incubation/acceleration
cycle and successful ventures are showcased at an investor
conference upon graduation.
LUMS Centre for Entrepreneurship

The Foundation (Contd) : They also allow to use their modern office
facilities for this period. The startup entrepreneurs dont have to pay
for these facilities out of their pocket, but they have to part with
equity/share of their companies. Equity ranges from 2.5% to 7.5%
based on the services availed.
Foundation Fund: They arrange to meet the entrepreneurs with
potential investors. Also, they may arrange funds based on the
program.
Other countries

Other SAARC countries dont have much strong programs. The programs
mainly contains:
Basic Entrepreneurial Training: ranging from 1 day to 3 months
Some access to finance
In some cases, some donor agencies or government provide small
amount to startup the business for interesting business cases.
Some tax benefit for the startups.
Motivating youths for entrepreneurship
Entrepreneurship programs aimed at women.
Some agencies create the marketing opportunites similar to Aarong.
Other countries

Contents of these programs covers mainly:

Motivational training
Basic entrepreneurial training: Things needed to start a business
Basic managerial training: Things needed to run the business
Screening of good ideas
Basic business training like business planning, working capital management,
accounts preparation, costing pricing, cost reduction, and marketing,
linkage to credit,
product development and market testing,
market development and market linkages
Internal saving generation
Linkage with successful entrepreneurs
Bangladesh