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Entrepreneurs Are Born Not Made

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Entrepr epreneurship Rural Entrepr eneurship Development P rogramme in India – An Impact Assessment

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Dr. G. D. Banerjee

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Chapter - VIII Impact of REDP
The present chapter makes an attempt to assess the impact of REDP training. The impact of REDPs is measured in terms of (i) the number of new enterprises created by REDP trainees, (ii) the creation of new enterprises with and without wage employment, (iii) annual employment generation, (iv) annual incremental income and (iv) attainment of success rate. Thus, the impact of REDP is ascertained on the basis of changes in income and employment as a result of creation of new enterprises. The economics of REDPs is assessed with particular reference to costs and benefits of REDP. Cost includes expenditure incurred per trainee by agencies imparting REDPs, while benefits are taken into account as addition to value of produce and net surplus generated annually. The emphasis of the analysis was on major activities and agencies of the selected districts. Attempts were also made to estimate the Financial Rate of Return (FRR) of the Entrepreneurship Development Programme keeping in view NABARD’s financial contribution on the expenditure side and average net incremental income on income side. Impact of REDP 1. Enterprises set up with and without Wage Employment As mentioned earlier, 793 sample REDP trainees were selected from 1000 REDPs during the survey. Out of which information is available from 701 trainees. Among the 701 trainees, 460 trainees constituting 65.62 per cent were settled new job employment while 241 accounting for 34.38 percent were settled with new units. Details are displayed in table 8.1. 11. Settlement or Success Rate with and without Wage Employment 8.1 State-wise, the ratio of candidates trained to candidates settled with and without wage employment indicating the success rate of REDP showed a mixed result. The success rate with wage employment was highest (cent percent) in Chattisgarh followed by Uttar Pradesh (68.12%), Odisha (62.75%), Bihar (62.22%) and Himachal Pradesh (53.12%). The success rate was lowest in West Bengal (27.54%), while it was 37.28 per cent in Andhra Pradesh. 72

Table 8.1 State-wise Number of Enterprises set up with and without Wage Employment
Sl. No 1 2 3 4 5 6 7 Total State Number of Enterprises Established With wage Without wage Total Employment Employment 41 (37.28) 69 (62.72) 110 (100) 28 (62.22) 137 (100.00) 51 (53.12) 64 (62.75) 47 (68.12) 92 (27.54) 460 (65.52) 17 (37.78) 0 45 (46.88) 38 (37.25) 22 (31.88) 50 (72.46) 241 (34.38) 45 (100) 137 (100) 96 (100) 102 (100) 69 (100) 142 (100) 701 * (!00)

Andhra Pradesh Bihar Chattisgarh Himachal Pradesh Odisha Uttar Pradesh West Bengal

Source – Field Data, Figures in bracket indicate percentage to total. * Does not tally with total of 793 as the data in respect of 91 candidates were not readily available.

8.2 The success rate without wage employment in West Bengal stood at 72.46 per cent, while it was 62.72 per cent in Andhra Pradesh. The success rate was less than 40 per cent in case of Odisha, Uttar Pradesh and Bihar, while it was less than 50 per cent in Himachal Pradesh. Table 8.2 State-wise Success Rate with and without Wage Employment (%)
Sr. No. 1 2 3 4 5 6 7 State Success rate of setting up of enterprises With wage Employment 37 35 80 80 49 44 58 Without wage Employment 61 21 45 70 47 23 24 34 Over all 49 28 45 75 64 36 34 46

Andhra Pradesh Bihar Chattisgarh Himachal Pradesh Odisha Uttar Pradesh West Bengal Total

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(a) Andhra Pradesh 8.4 In Andhra Pradesh a total of 338 trainees constituting 60.6 per cent of the total candidates trained (558) were settled with creation new self-employed enterprises as also with new job employment. Activity-wise REDP showed a mixed result among both technical and non-technical general/skill based REDPs. The success rate was highest for TV assembling and repairing (76.3%), followed by jute handicrafts (71.0%), fashion designing (70.0%) adda leaf plate making (66.7%), etc. The success rate was low for appliqué works 40.0 per cent; while it was 45 per cent in case of DTP and Photography and 46.66 per cent in domestic appliances repairing works etc. The analysis implied that more thrust might be put on conducting REDP on those activities under which the settlement rate was high keeping in view its need and potentiality in the district/region. Table: 8.3
No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Activity Jute Handicrafts Tailoring & Garment Making Computer Education Applique work Adda Leaf Plate Making Broom Stick Making Hand and Machine Embroidery Soft Toys Making Domestic Appliances Repairing Works Fashion Designing TV Assembling and Repairing House Wiring / Repairing Machine Embroidery Computer DTP Total
Source: Field data

Success Rate in Andhra Pradesh by Activity
No. Trained 100 50 25 50 30 30 30 50 60 40 38 15 20 20 558 No. Settled 71 30 16 20 20 18 19 31 28 28 29 7 12 9 338 Success rate 71.00 60.00 64.00 40.00 66.76 63.33 63.33 62.00 46.66 70.00 76.32 46.66 60.00 45.00 60.57

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8.5 The success rate with and without wage employment worked out to 35 and 21.2 per cent respectively in Bihar. All the units were set up with bank loan. The success rate varied across activities. Absence of ground work prior to launching of the programme and absence of escort services, inadequate training, etc lead to failure of REDP on Banana Handicrafts and tailoring. Table: 8.4
Activity

Success Rate in Bihar by Activity
Success rate with wage employment (%) 50 60 Nil 100 100 Nil 80 60 35 Success rate without wage employment (%) 20 40 Nil 30 20 Nil 30 30 21.25

Medicinal and Aromatic Plants Battery Making Banana Handicraft Jute articles Tailoring and Garments Tailoring Food Processing Leather Products Over all
Source: Field data,

8.6 The overall success rate of REDP in Uttar Pradesh worked out to 23.28 per cent. However, success rate including wage employment worked out to 48.66 per cent. Wide variation in success rate across different activities was observed. The success rate (excluding wage employed) varied from 6.25 per cent in food processing to 70.00 per cent in bandage clothes. Other activities which performed well in terms of success rate included durries making (61%), low cost readymade garments items (52%), screen printing and jute bag making (43%). The activities which performed below expectation were wire basket, fancy jute bag making, stitching and embroidery, etc. REDP on silver foil making succeeded initially, however, at the time of field visit, it was observed that none of the units was functional due to changing market conditions like increase in prices of silver, noncooperation by middlemen, etc.

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Table: 8.5

Success Rate in Uttar Pradesh by Activity

Sl No

Activity

No Trained

No Settled

Success rate

Mirza Pur 1 2 3 4 5 6 Wire Basket Food Processing Durrie making Silver foil Zari work Bandage cloth 14 16 31 56 30 30 117 1 1 19 21 42 7.14 6.25 61.25 70.00 35.89

Sub Total Moradabad 7 8 Durrie making Stitching Embroidery 9 10 Jute bag(Fancy) Low cost readymade garments 11 12 Screen Printing MCR tiles Sub total Grand Total
Source Field data

25 and 25

6

24.00

25 25

5 13

20.00 52.00

28 30 158 335

12 36 78

42.85 22.78 23.28

8.7 Out of six hundred REDP trainees in Bardhaman, 142 units were set up of which 21 were with bank loan and 121 took up wage employment. Further, 135 were self employed and 85 were engaged in other activities and 66 were unemployed. No information was available for 51 trainees. The success rate with and without wage employment was 44 and 23 per cent only. Substantial variation was observed across the activity.

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Table: 8.6
Activity

Success Rate in West Bengal by Activity
Success rate without wage employment (%) Break up not available Break up not available 23

Success rate with wage employment (%)

Embroidery Beautician Over all

Break up not available Break up not available 44

Source: Field data

Reasons for not Undertaking Activities 8.8 With a view to ascertain the reasons for not pursuing the activity in which they were trained, 30 trainees in Uttar Pradesh and 11 trainees in Andhra Pradesh were interviewed. In UP, the reasons inter alia included marriage and changes in market conditions and 27 per cent respondents each reported the said reason for not undertaking the activity. About 17 per cent each reported to had not undertaken the activity due to inadequate skills and migration. In case of Andhra Pradesh, the problems as reported by the respondents were mostly of social than economic in nature. (iii) New Enterprises 8.9 A total of 241 trainees accounting for 30.39% of 791 sample trainees had numbered to 106 which settled with self employment new enterprises. Household industry constituted major share (43.98%) followed by repairing and service enterprises (94) and manufacturing industry (41). Table 8.7 illustrates the details. 8.10 House-holding industry includes appliqué works, zardosi and embroidery, tailoring, weaving, patta chitra; while Repairing & Services Enterprises cover cycle repairing, domestic appliances, repairing works, house wiring, photography, TV/VCR repairing, auto driving etc. Manufacturing industry takes into account adda leaf plate making, broom stick making, jute manufacturing, soft toy making, food processing, leather product, milk processing etc.

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Table 8.7 Self Employment in New Enterprises initiated by sample trainees in Selected States
Sl. no New Enterprises by REDP Trainees AP 1. Household industry 25 (23.58) 2 Repair and Service Enterprises 3 Manufacturing Industry Total 30 (31.91) 14 (34.15) 69 (28.63) Bihar 8 (7.56) 6 (6.38) 3 (7.30) 17 (7.05) HP 20 (18.86) 18 (19.15) 7 (17.08) 45 (18.67) Odisha 20 (18.86) 10 (10.64) 8 (19.51) 38 (15.77) UP 8 (7.56) 10 (10.64) 4 (9.76) 22 (9.13) WB 25 (23.58) 20 (21.28) 5 (12.20) 50 (20.75) TOTAL 106 (100) 94 (100) 41 (100) 241 (100) Name of the State with number of trainees

Source- Field data. Figures in parentheses indicate percentage to row total

Impact of REDPs I. Employment Generation 8.11 The quantum of employment generated in a particular enterprise depends on nature of work and its scale of operation. On an average, 218 person days per unit were generated annually. The scale of operations of units in Andhra Pradesh was higher as compared to units in other States. The employment generation in person days per unit ranged from 136 in Bihar to 287 in Andhra Pradesh. The number of workers employed in various type of unit varied widely depending upon the scale of operations. Table 8.8: Average Annual Employment Generation per Unit in selected states Sr. No. State Employment Generation (person days) per unit 1 Andhra Pradesh 287 2 Bihar 136 3 Chhattisgarh 186 4 Himachal Pradesh 205 5 Odisha 180 6 Uttar Pradesh 200 7 West Bengal 261 Total 218
Source: Field data

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11. Employment Generation by State and Activity 8.12 Person days generated per unit in Andhra Pradesh ranged from a low of 180 days (soft toys making and zardosi and embroidery) to a high of 672 (TV/VCR repairing). Classifying the units in terms of intensity of labour employment (person days of employment generated per Rs.100 of capital investment) reported that labour intensity was more for adda leaf plate making, broomstick making, and jute handicraft units (10.0) as these units required very less of capital investment and more of working capital to run the enterprise. These units were followed by appliqué works (8.4), tailoring (5.3), plumbing (5.0), zardosi and embroidery (4.0), soft toys making units (3.6), etc. Lowest labour intensity was reported by auto driving and computer education units (0.2), followed by photography (0.3), cell phone repairing (0.7), motor rewinding (0.8), etc.) Table: 8.9 Employment Generation by New Enterprises of REDP Trainees in Andhra Pradesh
No New Enterprises Trainees Cost of Work P.days/ P.days/ Emp./Rs. Invest ers/Unit Worker Unit 100 of ment(CoI) CoI 55 4291 1.1 217 238 5.6 21 12 22 25 1 4 3 4 1 2 8 2 25 6 5 8 6 105 2500 4500 5872 90922 50000 73000 200000 33750 5000 155000 60625 150000 2750 2000 2000 2000 5000 96129 1.0 1.0 1.2 1.4 2.0 1.5 1.0 1.0 1.0 1.5 2.1 1.0 1.0 1.0 1.0 1.0 1.0 1.2 210 180 260 304 300 320 325 270 250 330 320 320 196 200 205 200 180 239 210 180 312 427 600 480 325 270 250 495 672 320 196 200 205 200 180 287 8.4 4.0 5.3 0.5 1.2 0.7 0.2 0.8 5.0 0.3 1.1 0.2 7.1 10.0 10.3 10.0 3.6 4.4

I 1 2 3 II 4 5 6 7 8 9

Household Enterprises Applique Works Zardosi & embroidery Tailoring Repair/Service Enterprises Cycle repairing Cell phone repairing Computer Education Motor rewinding House wiring Photography

10 TV/VCR repairing 11 Auto driving III Manufacturing Enterprises 12 Adda leaf plate making 13 Broomstick making 14 Jute handicrafts 15 Soft toy making Overall
Source: Field data

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8.13 The impact of grant assistance on employment generation in Chattisgarh was uneven across the activity, scale of operation etc. At the aggregate level, average employment days per annum works out to be 186, whereas average cost of creating one employment calculated at Rs 4,395.00. Details are exhibited in in table 8.10. Table: 8.10 Activity wise Annual Employment Generation in Chhattisgarh
No. of Persons Employed 28 34 14 70 18 6 12 11 112 Av. Emp.Days per Annum 122 195 295 118 240 265 208 210 186 Person Days (Recurring) 3,416 6,630 4,130 8,260 4,320 1,590 2,496 2,310 2,2692 Av.cost of Creating one Employment ( in Rs) 19,643 10,294 4,286 1,429 5,000 41,667 16,667 13,636 14,344

Particulars

Low cost building material Fabrication Repairing domestic appliances DTP computer/screen Printing Garment / Soft toys / tailoring Wooden furniture Photography/videograp Haller, Aatta Chakki Overall
Source: Field data

8.14 Repairing of electronics constituted highest percentage (80.82%) on the basis of 365 days in a year followed by Wooden furniture (72.60 %), Garment / Soft toys / tailoring ( 65.75%), low cost building material (65.59%), Haller, Aatta Chakki (57.51%), fabrication (53.42%) etc. DTP computer / screen printing represented lowest percentage at 32.33 per cent. Table below gives the detail: 8.15 In the predevelopment period, 5 sample trainees, those selected from the REDP on dry fish processing in Odisha, had their own enterprises or business activities, while others were not having any enterprise of their own. There was little scope in the villages for any kind of entrepreneurial activities. Firstly, the rural women were not having any skill or even idea of value addition. Secondly, there was absolutely no linkage with market in the remote areas, where from 80

Table: 8.11 Activity wise Percentage of Employment Days on the Basis of 365 Days in Chhattisgarh

Particulars Low cost building material Fabrication Repairing domestic appliances DTP computer / screen printing Garment / Soft toys / tailoring Wooden furniture Photography/videograp Haller, Aatta Chakki Overall

Average Employment days per Annum 122 195 295 118 240 265 208 210 186

% age of employment days on basis at 365 days 65.59 53.42 80.82 32.33 65.75 72.60 56.98 57.51 50.95

the REDP beneficiaries hailed. In the absence of any skill the only employment opportunity existing in the rural areas was agricultural labour, that too for about 50-60 days in a year. Therefore, in the pre development period only 5 (6%) out of 80 trainees were fully employed in their professional family occupation of fisheries and 26 (33%) “Others” were partially employed in agricultural and allied operations. As many as 49 (61 %) of the sample beneficiaries were fully unemployed before REDPs. The REDPs could gainfully employ 64 ( 80%) trainees in the activities they were trained for and 7 were engaged in other activities , while 9 trainees have not take up any economic activity (Table 8.12) .Out of them 41 (45 %) were fully employed and 23 (29%) were partially employed . The REDPs reduced the pre training unemployment situation of 49 trainees to 9 in the post training period where as the full employment situation of the trainees had gone up from 5 to 41.Seven (7) trainees resorted to other activities after the training programme as they could not take up the trained activities on a commercial scale (Table8.12).

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Table: 8.12
Name of REDP Nil Pattachitra Toy painting Pattachitra Palm leaf Patch work Dry fish Chalk and Agarbati Stone carving Golden grass Patch work Golden grass Milk processing Paper craft Terracotta Golden grass Total

Activity wise Employment Generation of REDP Trainees in Odisha
Pre development Partial Fully 3 2 4 2 5 5 5 4 5 5 5 5 1 49 5 4 5 4 1 5 26 5 5 3 5 1 9 Nil Post development Partial Fully 5 5 4 4 3 5 2 23 5 8 5 6 1 5 1 2 3 41 Other Activities 5 2 7

8.16 After the training programmes under REDP as many as 47 (59%) could establish their own enterprises (Table 8.13). Further, 17 (21%) “Other trainees” could employ themselves with the enterprises established by the Master Crafts man of the trade. Out of the 80 sample trainees, 64 (80 %) were settled and a major pertain of their income was coming from the activity they were trained in. Moreover, the activities they adopted were of their own choice and they could do it with interest and self esteem.

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Table: 8.13
Name of REDP Pattachitra Toy painting Pattachitra Palm leaf Patch work Dry fish Chalk and Agarbati Stone carving
Source: Field data

Own Entrepreneurial Activities among Sample Trainees in Odisha
Pre Dev. 5 Post Dev. 1 5 2 3 4 5 2 Name of REDP Golden grass Patch work Golden grass Milk processing Paper craft Terracotta Golden grass Total Pre Dev 5 Post Dev 5 5 5 5 5 47

8.17 An assessment on net gain in employment in Uttar Pradesh was worked out on the basis of the average person days per annum before training vis-à-vis after training under each activity and is presented in Table 8.14. The average gain in employment worked out to 93 person days per annum in case of Moradabad district and 134 per son days in a year in case of Mirzapur district. Comparatively low gain in Moradabad was on account of high level of employment during pre training period. The overall gain in employment worked out to 117 per son days per annum.. Table 8.14 Activity-wise Annual Employment Generation in Uttar Pradesh (Person days/annum)

Sr. No.

Particulars

Employment Before Training After Training

Net gain in Employment

Moradabad 1 2 3 4 Wire basket Food processing Durrie making Zari work
83

134 92 150 -

202 177 292 99

68 85 142 99

Sr. No.

Particulars

Employment Before Training After Training
236 205

Net gain in Employment

5

Bandaz cloth Total Mirzapur

183 112

53 93

6 7 8 9 10 11

Readymade garments Durrie Weaving Bag making / screen printing MCR Tiles Low cost Readymade Garments Fancy bag making Total Overall

180 65 60 47 20 68 84

82 262 282 266 167 120 198 200

82 82 217 166 134 100 134 117

Source: Field data

8.18 The higher gain was observed in activities like bag making / screen printing (217 per son days), MCR tiles (166 per son days) and low cost readymade garments (134 per son days), even though these activities were low in income generation. These may be attributed to low level of employment during pre training period.

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Chapter - IX Credit Support and Related Issues
This chapter deliberates on capital and credit support for establishment of enterprises. Generally low capital intensive activities are considered for REDP training programme so that trainees can easily adopt them. Lack of capital does discourage the trainees to take up the activities in economic scale. Low initiation of capital requirements also facilitates the trainees to establish their entrepreneurial activities. In most cases funds are incurred by the trainees for procurement of raw materials and equipments etc for the activities. Table 9.1 gives an account of capital invested by entrepreneur to start up their economic activities. Table 9.1 Capital and Sources of Funds

Nature of capital support for starting activities 1.Raw materials 2.Equipments and others 3.Total Sources of funds 1. Stipends 2.Own/Family 3. Bank 4. Facilitators (NGOs, SHGs, Das, EDIs etc.) Total

Amount in Rupees No break up available

63,054 Absolute( Rs) Negligible 25,221 15,133 22,700 63,054 (40) (24) (36) (100) In Per cent (%)

Source; Field data. Note—Figures in brackets indicate percentage to column total

9.2 On an average, an amount of Rs 63,050 has been estimated as the total cost of undertaking the activity. Out of which entrepreneur used own/family fund of Rs 25,221 accounting for 40 per cent of the total, borrowed Rs 22,700 (36 %) from facilitators and the balance amount of Rs 15,133 (24%) from banks as credit. Thus, bank credit was available less than one fourth of total outlay.

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Sources of Investments of Selected States 9.3 The investments on REDP according to states and their sources of funds have been presented in Table 9.2. The average investment cost on enterprises by states varied depending upon the nature of activity, location etc.. It was highest at Rs.77, 664 in Chattisgarh followed by West Bengal (Rs.64,618), Odisha (Rs.64,290), Bihar (Rs.54,596), Uttar Pradesh (Rs.54,363), Andhra Pradesh (Rs.48,998). The investment/capital cost is lowest at Rs.46, 319 in Himachal Pradesh (Table 9.2). 9.4 As regards sources of funds, bank’s share was only 5 per cent in Uttar Pradesh and 10 per cent each in Bihar and Odisha. West Bengal could avail 40 per cent of total capital followed by Andhra Pradesh (38%). State wise, funds available from banks ranged 5 per cent to 40 percent while the share of SHGs varied between 25 per cent and 60 per cent. Table 9.2 gives the details. Table 9.2 Sources of funds in Selected States

State

Capital Cost (Rs.) Bank

Sources of Funds (%) SHGs 24 30 50 60 25 30 36 Own and relatives 38 60 20 30 70 30 40

Andhra Pradesh Bihar Chattisgarh Himachal Pradesh Odisha Uttar Pradesh West Bengal Total
Source; Field data

48,998 54,596 77,664 46,319 64,290 54,363 64,618 63,054

38 10 30 10 5 40 24

State wise Units Supported by Bank and Owned Funds in Andhra Pradesh 9.5 Out of 558 trainees as many as 338 trainees accounting for 60.57 per cent of total established their units. Among 338 units, 108 units (32 %) sat up with the help of bank finance, 164(49%) with own funds 86

and the remaining 66 (19%) as wage employed. Units settled with bank finance were (i) tailoring and garment making, (ii) domestic appliances repairing works, (iii) fashion designing, (iv) jute handicrafts, (v) hand and machine embroidery, (vi) computer DTP etc..( Table 9.3). Table : 9.3
No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Activity Jute Handicrafts Tailoring and Garment Making Computer Education Applique work Adda Leaf Plate Making Broom Stick Making Hand and Machine Embroidery Soft Toys Making Domestic Appliances Repairing Works Fashion Designing TV Assembling and Repairing House Wiring / Repairing Machine Embroidery Computer DTP Total
Source: Field data

Activity wise sources of funds with reference to Settled units in Andhra Pradesh
No. Settled 71 30 16 20 20 18 19 31 28 28 29 7 12 9 338 Units with bank finance 19 30 5 12 18 15 3 2 4 108 Units with owned funds 34 15 20 18 7 31 10 8 7 7 2 5 164 Wage Employed 18 16 5 19 8 66

9.6 State wise analysis of units financed by bank support in Uttar Pradesh revealed that 78 units were sat up representing 23.2 per cent of total ( 335) units. Out of 78 units only 42 units could avail bank finance and established the units while 36 units established at their own funds.

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Table: 9.4 Activity wise sources of funds with reference to Settled units in Uttar Pradesh
Sl no 1 2 3 4 Activity Mirza Pur Wire Basket Food Processing Durrie making Bandage cloth 1 1 19 21 117 1 1 19 15 36 6 6 No Settled Units with bank finance Units with owned funds

Sub Total Moradabad 5 6 7 8 Stitching and Embroidery Jute bag(Fancy) Low cost readymade garments Screen Printing

6 5 13 12 36 78

2 4 6 42

6 3 9 12 30 36

Sub total total Sub Grand Total
Source: Field data

9.7 Activity wise analysis showed that durrie making (19), bandage cloth (15), Jute bag (2), low cost readymade garments (4), Food processing (1),wire basket (1) etc. Credit related Aspects of REDPs 9.8 Andhra Pradesh—-Bank financed needy trainees of technical REDPs organized by EDIs through Swarojgar Credit Card (SCC) and also under PMRY. Trainees of tailoring and garments making were financed through SHGs. On selective basis, individual credit was provided depending upon placement of security, aptitude of borrowers and confidence of the banks with NGOs who arranged for REDPs. Trainees also obtained loans from NGOs. 9.9 Chhattisgarh—-The beneficiaries were organized in groups and were availing credit facilities from internal lending. In addition to this, additional credit needs, if any, were being met from banks. In case of REDPs organized at Raigarh, the banks had financed the units by way of issue of Swarojgar Credit Cards (SCCs) and the same was 88

distributed on the penultimate day of training. For REDPs in Bilaspur district, it was observed that the banks have financed the units under KVIC/KVIB scheme. Further, it may be mentioned that the banks may resort to bulk lending or group lending to NGOs who in turn could support trained beneficiaries for effective forward and backward linkage activities. 9.10 Odisha—In odisha, the focus was on less capital intensive activities and the requirement of working as well as block capital varied from Rs.500 for stone carving/ palm leaf to Rs.2, 300 for toys making units. Capital requirements were met through stipend. Only eight of the 80 respondents under study availed loans through credit institutions. These eight trainees were provided rural artisan credit card with a limit of Rs.6, 000 each. Since the trainees did not form SHGs, their linkages with banks were absent, excepting chalk and agarbati making units. 9.11 Uttar Pradesh —Of the 96 trainees under study in Uttar Pradesh, 48 availed institutional credit and average loan size worked out to Rs.16, 035. Across the activities, the loan size varied form Rs.7, 000 for fancy jute bag making to Rs.31, 500 in case of bandage cloth. Of the 48 trainees linked to banks, 14 counts were NPAs. The latter was attributed to inadequate income and lack of proper follow up by banks/implementing agencies, especially in case of low cost garments. Institutionalization of REDPs 9.12 With a view to making discernible impact on generation of sustainable income and employment in rural areas, NABARD prepared a strategy for institutionalization of REDP. Under institutionalization process of REDPs, long term collaboration is being forged with identified leading EDIs/Vas/NGOs to achieve the corporate goal on well as better success rate by technical REDPs. In Andhra Pradesh, NABARD initiated process of institutionalization of REDP with a longterm collaboration with Andhra Bank Rural Development Trust (ABRDT) for conducting REDPs in 2002-03. Settlement rate of ABRDT was 68 per cent as against 25 per cent for NGOs. Some of the reasons for low success rate in case of NGOs were focus on SHG members and skill oriented REDPs rather than technical REDPs organized by EDIs. However, EDIs were focusing on coastal Andhra only because of their location. EDIs had taken up technical REDPs like, motor rewinding, cell phone repairing, cycle repairing, and computers DTP 89

solely for educated unemployed rural youth. Similarly NGOs/VAs had taken up skill oriented General REDPs like, adda leaf plates making, soft toys making, broomsticks making, jute handicrafts, appliqué works, etc. for SHG members. 9.13 While the EDIs selected prospective rural entrepreneurs who were educated and unemployed in the age group of 18 - 35 years, NGOs/ VAs selected candidates with basic motivation for enterprise and minimum necessary educational qualification, particularly women from various SHGs. EDIs generated applications through awareness/ motivation camps in villages, prepared annual calendar of programmes to circulate among bank branches for sponsoring candidates. 9.14 EDIs had well-structured buildings with classrooms, workshops, hostels, etc. for undertaking training under REDP. These institutes were fully equipped to conduct multi channel training progrmmes. As against this, sample NGOs did not have adequate infrastructural facilities to run REDPs. 9.15 All the agencies followed the norms as prescribed for pre training, training and post training phases of REDP. However, all the three phases were not systematized for NGOs, as is the case with EDIs. The duration of the programme ranged from four weeks (adda leaf plate making,) to 12 weeks (soft toys making, appliqué works, tailoring and garments making) in case of non-technical REDPs, where as for technical REDPs, it was mostly eight weeks (domestic appliances repairing, cell phone repairing, etc.). 9.16 Escort services with regard to motivational support, arrangement of bank finance, consultancy support, marketing exposure and support, networking/ contacts, etc. differ widely between EDIs and NGOs. While, EDIs had a major role in arranging bank loan/ financial support, assisting in getting the subsidy available in the Govt. depts. etc., NGOs follow up with bankers for SHG linkage. 9.17 The study revealed that farm based REDPs constituted only 2.9 per cent of total REDPs during the period 2000-2007. It was also observed that no NGOs had taken up any farm sector REDPs. EDIs, i.e., NIRED and ABIRD had conducted programmes under farm sector activities like organic farming, nursery raising and repairs and maintenance of LI motors, etc.

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Adequacy of Cost 9.18 NABARD provides promotional assistance, maximum up to Rs. 75,000.00 for a programme, to select agencies to meet recurring expenditures in conducting REDPs. In 60 per cent of total REDPs, the amount of grant assistance sanctioned by NABARD were lower than amount proposed by the agency. The reasons were (i) overestimation of the requirement of expenditure, (ii) decreasing the duration of the programme and (iii) plugging unnecessary capital expenditure for organizing the programme, etc. On the other hand, the amount of grant assistance availed by the facilitator was lower than the amount sanctioned in majority of the cases (50%) across states as the agencies in most cases had not claimed the final installments. The expenditure incurred on the other hand was more than the grant assistance in some of the REDPs. 9.19 Grant support was extended for meeting pre-training, training and post-training expenses. Highest proportion of grant was sanctioned for training expenses (80% in West Bengal, 66% in Chattisgarh). In the context of incentive based system, the study in Uttar Pradesh has suggested that in addition to loan size, sustainability of unit need to be considered as absence of follow-up on the part of NGOs in post credit linkage lead to misuse of credit facility, closure of units because of changes in market conditions, etc. 9.20 Study in Andhra Pradesh revealed that the amount of Rs.50, 000 for incentive based REDPs on emergency lamp making, banana fibre extraction and computer education was inadequate, especially to meet cost of instructors and computer hire charges. In Uttar Pradesh, average amount per REDP disbursed (Rs.45,304) was close to sanctioned amount (Rs.47,183) as there was a tendency among the implementing agencies to manage the programme within the sanctioned amount although they viewed that remuneration for guest faculty can be increased to enable hiring of specialists. The average cost per REDP varied across the States (Table 9.5) mainly on account of activity selected for the REDP. The average cost per REDP and per trainee worked out Rs.52, 545 and Rs.1, 913 respectively.

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Table 9.5: Average Cost per REDP and per Trainee in Different States
State Average REDP Andhra Pradesh Bihar Chattisgarh Himachal Pradesh Odisha Uttar Pradesh West Bengal Over all 40,832 45,813 64,720 38,599 53,575 53,848 45,304 52,545 Cost (Rs) Trainee 1,775 1,527 2,140 1,250 2,679 1,949 1,618 1,913

Availability of Bank Credit by Agency 9.21 Among the sample REDP trainees (793), all reported having received one or other types of post training assistance. Two hundred and two borrowers (202) accounting for 25.50 per cent of total had availed bank loan for setting up of their units. All of them reported that they got the support from their agencies for facilitating bank finance. As many 417 borrowers representing 52.58 per cent of total sample reported that they had received technical support. Guidance to set up units was also received by 520 samples accounting for 65.45 per cent of the total Table 9.6: Units with loan and Support Services by Agencies
No Agencies Sample Trainees Units with Bank Loan Support Services Technical Support 189 (67.07) 228 ( 44.62) 417(52.58) Guidance to set up units 170 (60.28) 350 (68.83) 520 (65.45)

1

EDIs NGOs/ VAs

282 (35.56) 511 (64.44) 793 (100.00)

152 (53.90) 50 (9.79) 202 (25.50)

2

Source: Field data

9.22 Across the agency, support system of EDIs was good as about 67.07 per cent and 60.28 per cent reported having received technical support as also guidance to set up units. This emphasizes the need 92

for gearing up the support system as also extension mechanism of EDIs and NGOs/VAs for setting up more units by REDP trainees. The potential entrepreneur needs to be given the proper technical and other guidance necessary for successfully setting up / running the units. Banks also need to extend support services to trainees and should sponsor candidates for REDPs. Credit Linkage 9.23 One of the important aspects of post-training follow-up is linking the trainees with the sources of institutional finance for meeting their credit requirement. The data on state-wise performance of implementing agencies (IAs) in credit linkage is presented in Table 9.7. The percentage of trainees credit linked ranged from 23 per cent in West Bengal to 47 per cent in Bihar. About 32 per cent of the trainees were credit linked after training. Table 9.7: Credit Linkage
Sr. No. 1 2 3 4 5 6 7 State Andhra Pradesh Bihar Chhattisgarh Himachal Pradesh Odisha Uttar Pradesh West Bengal Total Credit Linkage (%) 31 47 44 27 0 37 23 32

9.24 Bankers perceived that credit linkages to the trainees are based on certain parameters like, activity chosen for training, inclination for creation of new self-employment enterprise, etc. Bankers perceived that the REDP by EDIs had helped the trainees in acquiring skills in product/design development. For all technical REDPs conducted by these institutes, banks had financed the interested trainees/units by way of issue of Swarajgar Credit Cards (SCCs), as also under other Govt. programmes like, PMRY. The banks resorted to bulk lending or group lending to NGOs who in turn could support trained beneficiaries for effective forward and backward linkage. The trainee SHG members were also organized into activity based groups (ABGs) and was availing credit facilities from internal lending as also from MACS located by NGOs. 93

Chapter - X Summary and Conclusion
The present study is a consolidation of "Rural Entrepreneurship Development Programme (REDP)” Reports of seven states viz. Andhra Pradesh, Bihar, Chattisgarh, Himachal Pradesh, Odisha, Uttar Pradesh and West Bengal. The studies were conducted by the Agricultural Economists/officers with economics background. The main thrust of the consolidated report was to focus the constraints and suggest remedial measures which will help in policy formation. REDP Programmes have come up as an efficient instrument in creating income and employment opportunities for the rural youth, especially the women in rural and semi urban areas. The Executive Development Programmes (EDPs) are the medium for the value addition to the resources and reviving the vanishing arts and crafts in the selected states. The programme not only rediscovered the economic potentials in the traditional art forms but also brought life to artisans. Further, the teeming millions who otherwise would have migrated to other areas in search of a livelihood by giving an opportunity explore a living through an alternative or supportive occupation. REDPs mainly facilitated the rural youth and women to support the family with a supplementary income. In many cases, the income generated by the beneficiary trainees was not handsome but it was adequate to extend the helping hand to the family. Taking into account all the samples as a whole, the average monthly incremental income of the sample trainees was Rs 1,555. Across the states it varied from Rs 942 in Odisha to Rs 1,884 in Andhra Pradesh. This was enough to rise above the poverty line. In rural India, almost all the economically backward families were dependent on agricultural wage and yield from agriculture of the small and marginal land holdings. This income (Rs 941) of one or two earning members of a family is never adequate to feed for the entire year. This is because of the fact that agriculture is seasonal operation and can provide employment for a person up to 60 to 70 days in year. In such a situation, a supplementary income from a non earning member of the family or during the lean period of the year is definitely a good support. The rural youth due to various obvious and unknown reasons fails to get proper education that is required to fetch him or her descent 94

job. Without proper skill or vocation, one cannot take up any business or entrepreneurial activities. It is also not easy to move out to urban places and get a job there. If one does not have any skill or vocation under such situation the EDPs create a scope for these less educated unskilled rural youth to take up a job or self employment activity. Many trainees took up the entrepreneurial activities in which they were trained under REDP as the prime activity. Income from these activities was much more than what they were earning previously or what they would have earned from any other activity. Another advantage of REDPs was that a choice of activity was suitable to the trainees since the facilitators select the activities taking into account the market potential for the produce. The participants are identified from the target group and from those who are really inclined to learn the skill and utilize it commercially are only selected for trainees. Though the choice of activity and organizing the EDPs initially sounds much of a supply oriented programme, the nature of trainee, market potential and linkage and scope for earning a good income working at home or in an enterprise with good environment, make the programme demand driven. This is reflected by the acceptance to the programme and skill by the participants. A majority (80%) utilize the knowledge for a full time or part time generating activity. Even if one does not utilize the skill for a commercial purpose or in establishing an enterprise after the training programme, one feels elated that she/he could learn a skill which is very useful in his or her life. The programme instills confidence among the trainees if at all necessary they can utilize the skill for an earning. The added advantage of REDP is that there are large varieties of activities that can be covered under the training programme. It can be organized at any place and can be designed to suit any type/kind of target group. REDPs can be designed differently from different target groups and at different locations. The programme is very flexible so that it can be framed according to the need. People with no skill can be trained for simple activities like food processing, candle, chalk, agarbatti making or such activity. Youths with education and ability were trained for computer hardware, fabrication, repairing electronics and electrical goods. The benefits of REDP inter alia include (a) preserving traditional art / craft and the products, (b) reducing pressure on farming by exploring 95

and providing employment in rural non-farm and service sector activities, (c ) add value to the local produce, (d ) generating productive employment throughout the year, (e) extent of inclusiveness in REDP in terms of coverage of beneficiaries from SC/ST and OBC categories as well as women candidates, and (e) benefits to society in terms of saving expenditure on employment guarantee scheme like National Rural Employment Guarantee Scheme Most of the REDP activities are low investment-requiremententerprises. Except a few activities like fabrication etc the capital requirement for establishing an enterprise for the activity after training was almost nil. That is why without credit or other financial support the trainee could take up some micro entrepreneurial activities. Of course often the requirement of working capital and opportunity cost restrict the size of the trainee. Poor repayment performance (45 % of total demand) in case of REDP trainees adversely affected the linkage between REDP and banks. About 52 per cent of trainees perceived that REDP did not focus on marketing of finished goods, 56 per cent on poor linkage between NGO, Banks and line departments, 46 per cent on inadequate followup and 31 per cent on no mandatory clause of setting up of units. There was hardly any balanced approach in sanctioning of REDP giving due weight to all the districts. While in some districts it has been taken up vigorously (Srikakulam, Chittoor, East Godavari, etc.), in some districts no REDP has been sanctioned since 2002 (Karimnagar). Such an iniquitous implementation of REDP did not give due justice to the rural sector. In economic terminology, this would lead to lopsided growth of various sub sectors/ indigenous unorganized activities, which finally would result in lopsided growth among regions and local communities. The crowding effect for certain activities in the same area resulted in problems of marketing and thus making the units unviable. Unlike EDIs/RUDSETIs, NGOs did not make adequate efforts for generation of applications and selection of candidates for training from different villages/mandals/localities of the districts. The study revealed that adequate provision has not been made for raw materials so that the trainees develop their skills up to the desired extent through sufficient practice. Besides, for all technical REDPs, 96

certain agencies do not provide small tool kits and reading material, nor do they arrange for field visits and guest lecturers so that the candidates derive maximum benefits under the programmes. Qualified and experienced trainers are not being appointed /contracted to provide quality training to the candidates NABARD widened the scope of REDPs by including select agro-based activities such as high tech agriculture, agro-industries, agroprocessing, agriclinics, agro-service centres, processing of herbal/ medicinal plant etc. The agencies should include all aspects of enterprise management in the training module so that the trained person acquires required skill and competence to set up the unit independently. Policy Issues 1. Selection of activities for imparting REDP is not based on local demands/needs and perceptions of people. Agencies, particularly, NGOs, do not go for any proper and systematic potential survey before preparing and forwarding proposals for grant support to conduct REDP. The selection should be based on the local potentials, resources availability and marketing opportunities for the products/services. There should not be any mismatch between the skills sought and skills available among the people, which might result in growth of unemployment. Therefore, REDP should be need based through some potential survey of skills available and skills sought by the local economy. 2. Selection of trainees is not proper and not based on the interest, attitude of the candidates. This resulted in drop out of candidates who are not having interest /aptitude in the proposed activity leading to low success rate in grounding of units and employment generation. A carefully designed selection process to identify and select only interested and potential youths taking into account their interest and aptitude would make the REDP a success. 3. Special efforts need to be made by EDIs to impart technical REDPs to school drop outs/ rural tribal youths. When REDPs are sanctioned to EDIs/RUDSETIs in bunch (say, 10 REDPs a year) a specific number of REDPs may be earmarked for school drop outs and rural tribal youths.

97

4. Training module is prepared by certain agencies excluding general aspects like preparation of project, accounting, opportunity, identification, motivation, management, marketing, etc. Further, agencies do not go for scanning of the local environment before designing the programme. There is no designing of a need based location specific short duration courses that would give motivational / behavioural inputs to the trainee. 5. As NGOs mostly conducted skill based non-technical REDPs, there was no formal/ systematic course module-giving due thrust on motivational/ behavioural inputs. In view of this NGOs/VAs must design suitable training modules based on absorption level and future requirements of the candidates. Use of experiential learning, group discussion/ field level experience and participation methods are an asset to the trainee for his future settlement. 6. The duration of the programmes ranged between 4 and 8 weeks. For many activities, especially for Handicrafts like Pattachitra, Palm leaf craft, and others the duration was felt very short. In states like Odisha , Himachal Pradesh, Uttar Pradesh etc majority of REDPs (70 %) are handicrafts based. Duration of training is inadequate .As a result the trainee lacks in confidence and does not encourage to take up any entrepreneurial activity. The duration for such programmes may be considered for at least four months. Thus, the duration of REDPs may be revised upword to 20 weeks. 7. The trainees who have settled with activities may be facilitated with subsequent exposure cum training programmes for 4 to 7 days to institutes, experts or enterprise of same or similar trade within as well as outside the state. This may inspire the trainees to take up their own enterprises more vigorously. The trainees can also get exposed to new designs, perfection in skill and market linkage. Often the individual entrepreneur found unsuitable for larger market because of economics of scale. For example if an entrepreneur gets an order for bulk supply within a short period, she or he may not be able to produce even he is offered a better price. In such a situation the exposure visit may introduce them to a group of similar crafts men who can form a cluster and can meet larger orders in time. This can also open up wider market linkage to the entrepreneurs, 8. Escort/handholding/follow up services offered by various agencies differed widely. While the escort services are quite effective in case of 98

services offered by RUDSETIs and EDIs, the same is not the case with NGOs/VAs. However, it should have been the other way round as NGOs/VAs have the local feel/presence. Both EDIs/NGOs do not give much thought to marketing potentials, which ultimately decides the success of the programmes. 9. Marketing issues of the REDP trainees may be taken up by NGOs by networking with identified suitable agencies like fair trade organizations, which are exclusively promoting trade/marketing of artisans, rural entrepreneurs and have expertise in these areas. Tie up with such agencies would go a long way in addressing the issues on marketing, design, prices of products. 10. To strengthen the process NABARD may arrange every year one state level workshop of the facilitators where scope for enhancing the market linkage can be established. Samples of various produce may be displayed in the workshop. Concerted efforts to create a market and market linkage for the produce may be made by all facilitators. This will benefit not only the REDP trainees but also the SHGs and micro enterprises spread throughout the states. 11. 'Institutionalization of REDP' has to be taken up vigorously by forging long-term collaboration with identified EDIs/VAs/NGOs to achieve the corporate goal to train at least one-lakh potential entrepreneurs in rural areas as well as to ensure better success rate by conducting technical REDPs. However, in Andhra Pradesh, Andhra Bank Rural Development Trust (ABRDT) is the only agency with which there is a long-term collaboration since 2002 to conduct REDPs on a sharing basis. Like-wise in UP, HP, Bihar, Chattisgarh and Orissa REDPs are being implemented by different NGOs on a temporary basis. 12. There is no collaborative arrangement with good NGOs and other institutional agencies to institutionalize the process of REDPs. It is learnt that big NGOs are not coming forward because of meager amount offered as grant assistance, loopholes in the sanction and disbursement procedures (seven to 10 times stretching over two years). Thus, the ‘institutionalization processes of REDP’ requires to be invigorated. Concerted efforts need to be put to collaborate with EDIs, good and leading VAs/NGOs to ensure better success rate by conducting technical REDPs. These points need to be looked into to modify the guidelines.

99

13. Although many implementing agencies conducted numerous REDPs on different activities and create lakhs of employment, and income opportunities among rural unemployed youth, the presence study reveals that the REDP, in the strict sense of the term didn't give any entrepreneurial orientation to rural people. Mostly it is based on target oriented approach without any structure or pointed focus on improving the entrepreneurial talents of rural and educated unemployment youth. Thus, the target-oriented approach as it is based presently should be replaced with a structured, need-based strategy with a pointed focus on improving the entrepreneurial talent of local rural and educated unemployed youth. It should lead to equality of opportunity among rural youths thus leading to a balanced growth of RNFS in all the districts. 14. The trainees under the study attached more importance to learn the skill/ process of the activities than stipend. Stipend was not a major attraction for many but it is an encouragement for all. After the training programme some trainees used the stipend to purchase raw materials and started their entrepreneurship. Bank credit is hardly available to the trainees to start their entrepreneurship. However, after successful entrepreneurial activities, some of the trainees were issued Artisan Credit Cards later on. In such a situation, stipend would be useful to the trainees to meet the working capital requirement to some extent to make a beginning with their entrepreneurship of self employment activities. The stipend amount should be of Rs 300 per week. 15. Often the trainees lose their confidence on the entrepreneurial skill after a year or so when they feel the designs they learnt during the REDP became out dated and unable to fetch a market. With the minimum skill given to the trainee in REDP, the trainees were unable to graduate on their own to innovate new ideas and designs. The trainees definitely need support for graduating. Thus, a supplement training programme for 2 to 4 weeks may be arranged for the trainees after a year of the completion of the programme. This will not only provide a feed back on "where the trainees stand after a year' but also can "encourage the trainees to take up the entrepreneurial activities" and thus settlement rate of the REDPs may be increased. This may instill sustainability to the entrepreneurs / self employment activities. 16. The implementing agency involved in conduct of REDPs varied significantly in terms of objectives, approach, competence, etc. 100

Capacity building of the implementing agencies emerged as the most important requirement in successful implementation of EDP. It was observed that agencies with better professional and technical capability appeared to be less committed towards trainees while highly committed organization were not technically and professionally capable to implement EDPs. The capability of highly committed organizations should be enhanced through capacity building measures. 17. Financial support is essential in order to venture the micro enterprises a long way to growth path. Under the Medium Small Micro Enterprise (MSME) development programme ample stresses is provided to enhance the institutional credit flow to micro enterprises. Unfortunately, the credit linkage was very poor in respect of the REDP beneficiaries. The study revealed that only 25 per cent of sample trainees were credit linked. With a view to facilitate the trainees to establish their enterprises or undertake economic activities, on valediction of the REDP each trainee should be provided with an Artisan Credit Card of at least Rs. 25,000.00 credit limit. 18. Instead of undertaking REDPs through a large number of NGOs on ad-hoc and sporadic basis a few potentially capable NGOs / institutions may carefully be identified in each state for long-term association with NABARD in conducting REDPs. The select institutions may be given capacity building support and long-term assurance for conducting REDP with NABARD's continued support. I9. The commercial Banks may be suggested to take further steps to set up institutes on the lines of RUDSETI in collaboration with NABARD. Apart from EDIs, NABARD should strengthen tie up with Govt. run polytechnics / ITIs to conduct REDPs in those areas where no EDIs are present. 20. The Ditrict Industries Centres (DICs), Industrial Training Institutes (ITIs), Rural Poly-Techniques, etc. may be revitalized in this regard and made relevant to local needs. These institutes should also identify newer trades for training taking note of the resource endowment of the region and also the emerging opportunities in a liberalized / globalized context. 21. There is hardly any well structured and systematic coordination among the entire project partners viz. bankers, state/central government officials at the district level, marketing agents. These leads 101

to poor success rates as such the uncoordinated effort adds to the failure of a new venture. Although effort was to involve DIC in every stage of implementation of REDPs, their actual involvement was restricted to delivery of talks as Guest Faculty. The cooperation of DIC was crucial as it was expected to enable new entrepreneurs to take advantage of its forward and backward linkage support system. 22. There is a need for a pro-active role by Government agencies like the DIC, banks and involvement of NGOs in mapping of potential, identifying borrowers, imparting required entrepreneurial skills and providing enabling environment for conducting REDPs. 23. It is observed from the field that the incidence of discontinuation of the activity by the girls after their marriage is more. Hence, preference may be given to married women who would continue with the activity for a longer period. 24. The agencies conducting incentive based REDPs viewed that Rs.50000 is not sufficient to impart training in case of many specialized activities such as emergency lamp making, banana fibre extraction and making utility items, engraved pictures, computer education, etc. In computer training, hire charges for computer form the major part of the expenditure. The salary of a good instructor itself comes to around Rs.7, 000 to Rs.9, 000 per month in these activities. Agencies revealed that this amount is not sufficient to impart training in cases of many specialized activities. It is suggested that the ceiling of grant assistance under the incentive based REDPs for the training component may be suitably enhanced. 25. Follow up services provided to the candidates in the post-training phase are inadequate resulting in poor performance in setting up of the units by the candidates. Intensive follow-up services have to be provided to the candidates in the post-training phase so that the trained candidates are able to pursue the activities on a sustainable basis. 26. The implementation of REDPs and its success stories are not documented. A strong database (in the lines of SBLP) on REDP- yearwise, implementing agency-wise district-wise, activity-wise, State wise, sanctions and disbursements, candidates trained, new enterprises created, wage employment generated credit disbursed, etc. has to be taken up seriously in this regard as also to create an awareness among rural youth and implementing agencies. 102

References
1. Liebenstein,1968, Entrepreneurship and Development , American Economic Review 58(20) : 72-83 Bygrave,W.D (1995), " Mom and pops, high potential startups , and intrapreneurship: Are they part of the same Entrepreneurship paradigm? , In J.A.Katza and R.H.Brokhus(Eds), Advances in entrepreneurship , firms emergence and growth. Greenwich,CT.JAI Press, 1-20 Bygrave, W.D.and Hofer,C.W(1991), Theorizing about Entrepreneurship, Entrepreneurship Theory and Practice, 16, 13-21 Drucker, P.F, (1985), Innovation and Entrepreneurship , Newyork: Harper and Row Pertin, T and Gannon, A ( 1997) , "Rural Development through Entrepreneurship", compiled and edited by Tea, REU Technical Series 41, FAO Regional Office for Europe, FAO of the United Nations, Rome Pertin, T (1997), "Entrepreneurship as an economic force in rural development", in " Rural Development through Entrepreneurship", Compiled and edited by Tea, REU Technical Series 41, FAO Regional Office for Europe, FAO of the United Nations, Rome http://www.fao.org/DOCREP Johnsrud, M. D ( 1991), "Entrepreneurship in the Development of Rural Areas", Key note paper presented at the Fourth FAO/ REU International Rural Development Summer School , Mikkeli, Finland, 16-20, September, in " Rural Development through Entrepreneurship", Compiled and edited by Tea, REU Technical Series 41, FAO Regional Office for Europe, FAO of the United Nations, Rome, 1997. Papola, T.S (1968), Indian Labour Market : Some facets of its Characters and Functioning, Giri Institute of Development Studies, Lucknow (1988)" Restructuring in Indian Economy: Implications for Employment and Industrial Relations", ILO-ARTEP, New Delhi Chadha,G.K (1993), " Non- farm Employments in Rural Households in India: Evidence and Prognosis", Indian Journal of Labour Economics, 36 (3) Eapen ,Mridual (1996), " Rural Non-Agricultural Employment in Kerala: Some Reflection on Petty Production ", Economic and Political Weekly, 31 (26)

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Bhattacharya, B.B and Arup Mitra," Employment and Structural Adjustment: A Look at 1990 Census Data", ", Economic and Political Weekly, 28 (38) Visaria, Pravin and Basant, Rakesh(eds), (1994), " Rural nonAgricultural Employment in India: Trends and Prospects", New Delhi, Sage, Publication Basant, Rakesh and Kumar, B.L (1994), " Determinants of Rural NonAgricultural Employment", Visaria Pravin and Basant, Rakesh (eds), Rural Non-Agricultural Employment in India: Trends and Prospects, New Delhi, Sage Publication Mellor John (1976), "The New Economics of Growth : A Strategy for India and Developing World", Cornel University Press Vaidyanathan, A (1986)," Labour Use in Rural India: A Study of Spatial and Temporal Variation" , Economic and Political Weekly, 21( 52) Unni Jeemol (1994), " Diversification of Economic Activities and NonAgricultural Employment among Rural Households in Gujarat" Jayaraman B, Badatiya K.C, S.R.Samantra, and Vinod K , " Rural Non Farm Sector Investments -An Impact Study", (2002), Published by Department of Economic Analysis and Research, NABARD, HO, Bandra Kurla Complex,Mumbai Badatiya, K.C (2003), (a) "Employment Income and Sustainability of Rural Non Farm Activities," Agricultural Economic Research Review ( Conference Issue), 94-104 and (b) Income and Employment Effects of Small Scale Agro Processing Activities, Indian Journal of Labour Economics, Vol. 58, No 3 Badatiya, K.C, (2002) , "Development of Rural Nonfarm Sector through Institutional Credit", Indian Journal of Labour Economics , Vol. 45, No 4, October-December, 2004 Dr Gangadhar Banerjee (2010), Rural Entrepreneurship Development Programme---An impact Assessment", Bengal Economic Association, 30 th Annual Conference (2010) Number. Annual Report of NABARD 1993-94, Annual Report of NABARD 1994-95, Annual Report of NABARD 1997-98,

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104

26. 27. 28. 29. 30.

Annual Report of NABARD, 1999-2000 Annual Report of NABARD, 2004-05 Annual Report of NABARD, 2005-06 Rural Entrepreneurship Development Programme, NABARD Leaf lets on Non Farm Sector, Department of Non Farm Sector, NABARD, HO, Mumbai Informal discussions with officials of DEAR/ NFS, NABARD, HO,Mumbai.

31.

105

Annexure 1: Number of REDPs, grant support and persons trained during 1990-91to 2007-08

Year

No. of REDPs 36 21 94 64 40 98 191 317 594 597 894 642 1,216 666 871 688 1,422 28.38

Grant (Rs. lakh) 0.3 0.18 0.66 0.45 0.37 0.85 0.83 1.04 2.01 2.37 3.84 3.67 5.63 4.36 454.39 526.95 767.61 58.68

1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 Compound Annual Growth Rate (%)

Av. grant per REDP (Rs) Negl 857 702 703 925 863 434 328 338 395 425 576 463 654 52,168 76,591 53,981 ----

Persons Trained

Av. person trained Per REDP

5,000 5,257 17,569 17,827 23,087 13,854 31,319 13,382 26,130 20,648 33,148 ---

26 17 30 30 26 22 26 20 30 30 23 ---

Source: Annual Reports of NABARD

106

Annexure 2 :

Performance of REDPs in Selected States during 2005-06 to 2007-08 (Rs lakh)

State
REDPs Amt sanctioned Amt released No. of persons trained REDPs Amt sanctioned Amt released No. of persons trained RED Ps

2005-06

2006-07

2007-08
Amt sanctioned Amt released No. of persons trained

Andhra Pradesh 41 47 52 64 50 912 484.78 391.80 27360 24.12 20.76 1500 25 732 26.73 24.68 1920 54 19.62 14.28 1560 42 21.22 32.74 30.16 552.56 40.06 17.87 1410 19 17.05 10.12 4.64 32.98 421 278.12 41.32 16.44 1230 40 47.26 24.55 1170 475 807 2436 1425 21455

75

33.51

31.05

2250

91

44.62

34.35

2040

116 80 42 69 89 75 1422

44.43 53.7 32.32 39.66 36.27 51.79 767.61

18.16 28.23 16.27 6.73 29.81 12.49 369.93

2180 2622 1135 1668 2980 2005 331.48

Bihar

107

Chhattisgarh

Odisha

Uttar Pradesh

West Bengal

Total…...

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...Are Writers Born or Made? The novel On writing A memoir of the Craft written by Stephen King gives rise to a great question. Are great authors born or made? According to Stephen King,” I don’t believe writers can be made, either by circumstance or self-will (although I did believe those things once” (King 18). The author is suggesting that a writer is born with the ability to be a good writer and it is through learned behaviors that these “talents are strengthened and sharpened.” (King 18). I feel King’s belief is very valid, many authors are born with a desire to write and with the determination and drive that it takes to become a great writer. Not all authors are in agreement with Stephen Kings perception on how an author is born not made. One in particular Dorthea Brande, the author of Becoming a Writer feels, “genius can be taught (once the secret emptiness of that phrase is understood) because in fact genius is as common as old shoes”. (Brande 12). This is quite an appealing idea and given Brande’s history and background I can understand some of her viewpoints on the matter. Brande (1893-1948) truly believes that a person has capability to take what little genius they are born with and transform it into the ability to become a great writer. The author puts a lot of emphasis on the idea that writes need to know what kind of habits impede the writing process. She describes “ways to help them develop......

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Entrepreneurs Are Made Not Born

...Entrepreneurs are made not born /essay/ This is a very old question with a lot of pros and cons, with a lot of defenders and opponents. Are your inner qualities everything that you need in life in order to success? I think that it is not enough. Being honest I believe that qualities like creativity, passion and ingenuity, one of the most important entrepreneurial characteristics, are partly inborn but without developing your inhesions every single day you would not be a successful entrepreneur. It reminds me of Jeff Bezos graduation speech at Princeton University -“Would you be proud of your gifts”. The idea is that you need to improve yourself since you are child. In addition I would like to say that I have never seen baby entrepreneur, so probably your inborn qualities are not enough. To believe that everything you need in life is born qualities is wrong. If you are satisfied with your inborn qualities and believe in this theory you won’t do anything in order to improve yourself and that would be detrimental. Are entrepreneurs just a special bread or they become this way through education? It is a myth that someone is a born entrepreneur. Entrepreneurs can be thought and more important-they should be. How important is a diploma for your future entrepreneurial success? I think a lot. An education in a prestigious college or university is necessary to gain you skills and knowledge that would be very necessary in your future business life. I believe that basic knowledge......

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Are Leaders Born or Made@

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Are Leaders Made or Born

...5/13/2012 leaders are born not made If you order your custom term paper from our custom writing service you will receive a perfectly written assignment on leaders are born not made. What we need from you is to provide us with your detailed paper instructions for our experienced writers to follow all of your specific writing requirements. Specify your order details, state the exact number of pages required and our custom writing professionals will deliver the best quality leaders are born not made paper right on time. Out staff of freelance writers includes over 120 experts proficient in leaders are born not made, therefore you can rest assured that your assignment will be handled by only top rated specialists. Order your leaders are born not made paper at affordable prices with Live Paper Help! . Leaders are born, not made Over the years there has been many opinions on this statement, and when trying to understand leadership success many approaches have been looked at. Researchers at the start of the 0th century focused on traits that leaders possessed. It was thought that some people were born with traits which made them a leader. Before the nd World War a lot of research was carried out, which sought to identify these characteristics. This is known as the Great Man Approach, since being born with these characteristics made you a “great man”. So is it true that leaders are born? Before seeking to answer this question, the theories should be examined.......

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Are Leaders Born or Made?

...leadership training and development courses, as leaders are born, not made.' Analyse this claim with reference to different theories of leadership. Introduction What is a leader? It is impossible to obtain a single definition. But it happened when achieving an objective and when more than one people are needed to do it. Nowadays, there are many leadership training and development courses that train people to be the position of leaders. Companies send their staff to these courses in order to increase the organizational effectiveness. However, some people argue that these courses are useless. It is because they believed that leaders are born, but not made. This essay will analyse this claim by using different leadership theories as well as discussing the impact on leadership development courses, in order to identify whether leaders are born or are made. Leaders are born There are many successful leaders who demonstrated their skills at an early age. They have natural talents that make them to be 'natural leaders'. Sometimes they also obtained characteristics or elements of a leader when they are born. Trait Theory is one of the main leadership theories and it suggested that certain characteristics are particularly suit to become a leader. Leaders are made Furthermore, there are also many leadership theories that support leaders can be made. According to the Behavioural Theory, leaders can be made rather than are born. The theory focused on what leaders actually do instead of......

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Leaders Are Not Born They Are Made

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Leader Are Born Not Made

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Born or Made

...say that leadership is a rare skill that not any one individual can obtain unless they are born with it. Can we put this old argument to rest and finalize a conclusion. Are great leaders born whiles others are made? Are Great leaders born? Whiles certain leadership skills can be taught other leadership traits cannot for example intellectual courage. You cannot teach someone intellectual courage, most born leaders are usually able to withstand a lot of negative comments, feedbacks and criticism and still be able to maintain the courage and will power to push forward with a goal. Born leaders are also definitely born with certain intangible gift. The trait theories and great man theories believe that people inherit certain qualities and traits that make them better suited to leadership. As the words of (Cawthon, D L 1996, p.2) “to suggest that leaders do not enter the world with extraordinary endowment is to imply that people enter the world with equal abilities, with equal talents”. There are certain inborn characteristics that predispose people to be and become leaders. In the same way some people are born with amazing musical gifts and some are born with the gift of leadership. For example in the biblical days they had great men such as Moses, Abraham and David they were clear examples of born leaders and they possess a level of intellectual courage and in born traits that allowed them to lead withstanding the circumstances. ......

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Are Leaders Born or Made

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