Topics: Entrepreneurship, Entrepreneur, David McClelland Pages: 26 (7525 words) Published: February 22, 2013
IIMS Journal of Management Science
Vol.1, No.1, Jan-June 2010, pp.46-59


Entrepreneurship Development: Programme or Process
Nimit Chowdhary and Monika Prakash

ABSTRACT This paper investigates the less than acceptable performance of rural entrepreneurship development programmes in the state of Rajasthan (India). A case study method of research was deployed seeking feedback of participants of three entrepreneurship development programmes. Feedback was obtained from two audiences- those who completed the programme and those who either did not attend the programme or dropped out at some stage. Investigation resulted into identification of several areas of inadequate performance- choice and deployment of faculty, course material, expectations of the participants, timing, delivery and focus of the programme. Authors recommend a major shift in delivery of these programmes. In place of a fixed duration one-off programme, authors suggest institutionalizing an entrepreneurship development process. The study departs from earlier studies those suggest some disparate improvements against the immediate problems identified. The paper strongly argues a radical rethink in delivery of the contents as part of continuous ongoing hierarchical process. KEYWORDS: Entrepreneurship development, rural entrepreneurship, EDP, entrepreneurship development process, Rajasthan JEL CLASSIFICATION: M31 BIOGRAPGICAL NOTE : Dr. Nimit Chowdhary is currently Professor at Indian Institute of Tourism and Travel Management, Gwalior. His research interest is on Management of Services, Entrepreneurship and Small Business Management, Destination Marketing, etc. He can be reached at nimitchowdhary@gmail.com Dr. Monika Prakash is Reader with Indian Institute of Tourism and Travel Management, Gwalior. Her research interest is on Strategy, Behavioural issues and General Management.

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Performance of Entrepreneurship Development Programmes (EDPs) in India has not been very exciting. Starting 1971, India embarked on a massive programme of entrepreneurship development. Since then, there is no looking back. As of now, more than 700 state levels financial institutions, public sector banks and other agencies across India, have been conducting thousand of EDPs every year. This is similar to 'Senior Achievement Programme' based on the principle of 'Catch them young' in the USA; and 'Young Enterprises Programme' in the UK (Khanka, 2005).

Well known behavioural scientist David McClelland at Harvard University made an interesting investigation into why certain societies displayed great creative powers at particulars periods of their history? What was the cause of these creative bursts of energy? He found that ‘the need for achievement’ (nach factor) was the answer to his question (McClelland, 1961). It was 'need to achieve' that motivated people to work hard. According to him, money making was incidental. It was only a measure of achievement, not its motivation. In order to answer the next question whether this need for achievement could be induced, he conducted a fiveyear experimental study in one of the prosperous district

Entrepreneurship Development: Programme or Process

of Andhra Pradesh in India in collaboration with Small Industries Extension and Training Institute (SIET), Hyderabad. This experiment is popularly known as ‘Kakinada Experiment’. As a part of this experiment, young persons were selected and put through a three month training programme and motivated to seek fresh goals. One of the significant conclusions of the experiment was that the traditional beliefs did not seem to inhibit an entrepreneur and that the suitable training can provide the necessary motivation to the entrepreneurs (McClelland and Winter, 1969). The achievement motivation has positive impact on the performance of...
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