View of IMPACT OF EDP ON PERFORMANCE OF TRAINEES

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IMPACT OF EDP ON PERFORMANCE OF TRAINEES

DR.PRAKASH.K.VADAVADAGI Associate Professor

B.V.V.Sangha‟s Institute of Management Studies, Bagalkot

Abstract:-There is a growing interest in the role that entrepreneurship can play as a catalyst to achieve economic and social development objectives, including growth, innovation, employment, and equity. Entrepreneurship can manifest within an economy in a number of ways, and it includes both formal and informal economic activities for the purposes of creating wealth. In turn, entrepreneurship can contribute to economic development through high-growth enterprises. EDP is an effective way to develop entrepreneurs which can help in accelerating the pace of socio-economic development, balanced regional growth, and exploitation of locally available resources. EDP can play an important role in influencing potential candidates to take advantage of new business opportunities and establish new business ventures. The study intends to investigate the Impact of EDP on Performance of Trainees.

Key Words: Entrepreneurship, Economic Development, EDP, Business opportunities, Business ventures.

INTRODUCTION:

There is a growing interest in the role that entrepreneurship can play as a catalyst to achieve economic and social development objectives, including growth, innovation,

employment, and equity.

Entrepreneurship can manifest within an economy in a number of ways, and it includes both formal and informal economic activities for the purposes of creating wealth. In turn, entrepreneurship can contribute to economic development through high-growth enterprises or, as in the case of necessity-driven entrepreneurship, through enterprises that can serve as an important source of income and employment for vulnerable populations (Alexandria Valerio, 2014).

EDP is an effective way to develop entrepreneurs which can help in accelerating the pace of socio-economic development, balanced regional growth, and exploitation of locally available resources. EDP can play an important role in influencing potential candidates to take advantage of new business opportunities and establish new business ventures. Programmes can be designed both to help potential candidates to start new ventures or to help existing entrepreneurs to improve their skills or solve particular business problems.

The competencies required for an entrepreneur can be acquired through training and development. In India, it is believed, tremendous latent entrepreneurial talents exists, which if properly harnessed could help in solving many of the serious problems facing the

country. The well known Kakinada experiment conducted by Mcclelland and his associates and entrepreneurship promotion work done by Gujarat Industrial and Investment Corporation (GIIC) and centre for Entrepreneurship Development (CED) Ahmedabad had clearly shown that it was possible to train first generation entrepreneurs through systematic training intervention (D.R.Prema., 2003). The study intends to investigate the Impact of EDP on Performance of Trainees.

RESEARCH OBJECTIVES

 To assess the impact of EDP on establishment of business venture.

 To know the effectiveness of EDP in transforming of knowledge and skills of the trainees.

 To know the Perception of trainees towards training program me.

HYPOTHESIS

H0: There is no transfer of knowledge and skill among the respondents after the EDP programme

Ha: There is transfer of knowledge and skill among the respondents after the EDP programme

Ho-: The perceived Satisfaction of EDP and perceived business performance is not related for the entrepreneurs.

Ha-: The perceived Satisfaction of EDP and perceived business performance is related for the entrepreneurs.

Ho-: The perceived usefulness of EDP to start business and recommendation of

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EDP to other entrepreneurs is independent

Ha-: The perceived usefulness of EDP to start business and recommendation of EDP to other entrepreneurs is dependent Significant of the Study: This study finds the relationship between entrepreneurs training and performance of the trainees. Further, by knowing the impact of training programme on the performance trainees, the institution is able to make the necessary adjustment to the training contents and supporting facilities to further improve the training programme.

REVIEW OF LITERATURE

Methodology: Methodology for the study is designed as a descriptive one based on both primary and secondary data and interactions with the key officials of Rural Self Employment Training Institutions (RSETI) are involved directly and indirectly with the organizing EDPs in Bagalkot, Bijapur and Belgaum district.

Research Design: The research design adopted for this study was of ex-post facto in nature since the phenomenon had already occurred. According to Kerlinger (1973) ex-post-facto research, is a systematic empirical enquiry in which the researcher does not have direct control over independent variables because their manifestation has already occurred or they are inherently not manipulated.

Sampling: it is beyond the financial and human capacity of an individual researcher to study the whole state and various organizations. Theoretically it is possible to arrive at reliable conclusions about the whole state by selecting a scientific sample. Considering the time and cost implications of the study, it has been decided to limit the study to North West Karnataka Region. The selection of North West Karnataka Region is determined by the fact that the researcher has been working in this region for quite some time and therefore has an in-depth knowledge about the socio-economic profile of the district is the first reason . The Business start up is not at all possible immediately after completing the training program, therefore, the time span between 2008-2012 was selected for the study. During the period 2008-2012 there were 2979 EDP-trained individuals in the North West Karnataka Region. But no performance evaluation studies have been

conducted as on that date. The industrial development in the region is not balanced i.e. performance in terms of Gross District Domestic Product (GDDP) between the districts varies, (Belagavi District performance was much better than Bagalkot and Bijapur.) which shows that there is regional imbalance.

Human Development Index (HDI) report for the 27 districts in the state has given a realistic picture of regional imbalances.

Performance of Bagalkot and Bijapur districts in HDI 2001 registered 22^nd rank (value 0.591) , 23^rd rank (value 0.589) respectively. But the performance of Belgaum district was far better than these two district i.e.it was ranking 8^th (0.648).

Therefore, there is need to strengthen the SSI and Entrepreneurial Development through EDP, therefore the field presents a better location for the concentration for the study (Government, 2001).

The information about the name and their addresses of general EDP trainees, were extracted from the RSETI office.

In order to ensure a fair representation and accurate coverage, a sample is selected on prorata basis in turn which consists around a 20% of the total number of EDP trainees from the study area which .was chosen for detailed investigation. Then, the respondents were selected on random sampling basis. In total 598 trainees ware selected randomly.

Secondary Data: The secondary data required for the study have been collected from the following sources.

 District Industries Centre (DIC)

 RSETI of Bagalkot, Bijapur and Belgaum district.

 Entrepreneurship Development Institute of India Ahmadabad.

News papers, magazines, journals, websites.

Population: The population of the study is the trainees of general EDP programmes conducted in Bagalkot, Bijapur and Belgaum district during the period 2008-2012.

Research Instruments: Information was obtained by using the pretested schedule by personal interview method.

Reliability: The internal consistencies of scale were assessed through computing Cronbach‟s alpha. The components of factor affecting entrepreneurial intention show the reliability value is 0.7.

Implication from these values indicates that all of the items used for each

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component in the questionnaire have a high and consistent reliability values.

Scope and Limitations: Scope of the study is limited to the state of Karnataka and in particular to the North West Karnataka Region (Bagalkot, Bijapur and Belgaum District). The present study is restricted to the trainings conducted by RSETI.

Measuring the effectiveness of EDP As quoted by Melodi Botha (2007) in his research, hill and O‟Cinneide (1998: 3) note that only a few studies have investigated the effects of entrepreneurship education. Falkäng and Alberti (2000: 101) corroborate this, suggesting that there is a need for much more research on methodologies for measuring entrepreneurship education effectiveness.

To measure the effectiveness of a training programme, Kirkpatrick (1967: 98) suggests four different levels. In this

research analysing the impact of entrepreneurship training has been done on this line with small changes

 Reaction measures are used to find out trainees‟ satisfaction with the training programme. This consists of a number of questions about the course that participants rate according to their level of satisfaction.

 Learning measures assess the effect of the training on the entrepreneurial factors.

Learning measures are used to assess the increase in knowledge and skills from EDP.

 Behaviour measures are conducted to find out whether the participants were able to apply the skills to job situations.

 Post-training success measures are used to measure training outcomes in terms of economic factors like profits, turnover, customer satisfaction and business success.

FINDINGS AND ANALYSIS Demographic Details

Gender Count Percentage

Male 423 71%

Female 175 29%

Total 598 100%

Marital status Count Percentage

Not Married 232 39%

Married 366 61%

Total 598 100%

District Count Percentage

Bagalkot 164 27%

Bijapur 161 27%

Belgaum 273 46%

Total 598 100%

Religion Count Percentage

Hindu 549 92%

Muslim 49 8%

Total 598 100%

Caste Count Percentage

OBC 367 61%

SC 66 11%

ST 19 4%

GM 146 24%

Total 598 100%

Education Count Percentage

No formal Education 22 4%

Below SSLC 119 20%

SSLC To PUC 317 53%

Degree 110 18%

Technical 30 5%

Total 598 100%

Fathers occupation Count Percentage

Service 131 22%

Own Business 151 25%

Farming 279 47%

Others 37 6%

Total 598 100%

Locality Count Percentage

Rural 440 74%

Semi Urban 53 9%

Urban 105 17%

Total 598 100%

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Analysis and Hypotheses Testing

Effectiveness of EDP in transforming of knowledge and skills of the trainees.

H0: There is no transfer of knowledge and skill among the respondents after the EDP program me

HA: There is transfer of knowledge and skill among the respondents after the EDP program me Paired Samples Statistics

Paired Samples Statistics

N Mean Std.

Deviation t Sig.

Pair 1

Ability to obtain financial assistance for your business

598 1.83 0.68 -

50.83 0.00 598 3.70 0.55

Pair

2 Creative problem solving 598 1.92 1.13 -

31.57 0.00 598 3.67 0.55

Pair

3 Compiling a business

plan 598 1.82 0.77 -

47.40 0.00 598 3.64 0.54

Pair

4 Break even analysis 598 1.77 0.80 -

47.19 0.00 598 3.60 0.55

Pair

5 Drawing up financial

statements 598 1.77 0.75 -

50.85 0.00 598 3.61 0.57

Pair

6 Conducting marketing

research 598 1.72 0.77 -

48.76 0.00 598 3.61 0.55

Pair

7 Cash flow management 598 1.78 0.77 -

49.11 0.00 598 3.63 0.54

Pair

8 General management 598 1.81 0.76 -

49.84 0.00 598 3.64 0.52

Pair

9 Marketing of

product/services 598 1.75 0.74 -

50.76 0.00 598 3.69 0.52

Pair

10 Legal aspects-

Company/Business 598 1.76 0.79 -

48.52 0.00 598 3.68 0.51

Pair

11 Human Resource

Management 598 1.70 0.71 -

54.05 0.00 598 3.67 0.53

Pair

12 Financial Management 598 1.80 0.76 -

49.89 0.00 598 3.69 0.51

Pair

13 Risk orientation 598 1.75 0.74 -

49.93 0.00 598 3.68 0.53

Pair

14 Creativity and

Innovation 598 1.82 0.78 -

46.59 0.00 598 3.68 0.54

Pair

15 Opportunity

identification 598 1.75 0.72 -

53.88 0.00 598 3.77 0.47

As per the above table

 Ability to obtain financial assistance for your business: The mean score achieved by this parameter before the respondents enrolled for the EDP programme was 1.83 while the same after the respondents had completed the EDP programme was 3.70. An analysis of the above table brings out that the t-value is -50.83 and significance is 0.00. Since the significance value is less than 0.05, the mean difference existing for this parameter before and after the EDP programme is significant (at 5% level).

Hence, null hypothesis is rejected and alternate hypothesis is accepted.

 Creative problem solving: The mean score achieved by this parameter before the respondents enrolled for the EDP programme was 1.92 while the same after the respondents had completed the EDP programme was 3.67. An analysis of the above table brings out that the t-value is -31.57 and significance is 0.00. Since the significance value is less than 0.05, the mean difference existing for this parameter before and after the EDP programme is significant (at 5% level).

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 Compiling a business plan: The mean score achieved by this parameter before the respondents enrolled for the EDP programme was 1.82 while the same after the respondents had completed the EDP program me was 3.64. An analysis of the above table brings out that the t-value is -47.40 and significance is 0.00. Since the significance value is less than 0.05, the mean difference existing for this parameter before and after the EDP programme is significant (at 5% level).

 Break even analysis: The mean score achieved by this parameter before the respondents enrolled for the EDP programme was 1.77 while the same after the respondents had completed the EDP programme was 3.60. An analysis of the above table brings out that the t-value is -47.19 and significance is 0.00. Since the significance value is less than 0.05, the mean difference existing for this parameter before and after the EDP programme is significant (at 5% level).

 Drawing up financial statements: The mean score achieved by this parameter before the respondents enrolled for the EDP programme was 1.77 while the same after the respondents had completed the EDP programme was 3.61. An analysis of the above table brings out that the t- value is -50.85 and significance is 0.00. Since the significance value is less than 0.05, the mean difference existing for this parameter before and after the EDP programme is significant (at 5% level). Hence, null hypothesis is rejected and alternate hypothesis is accepted.

 Conducting marketing research: The mean score achieved by this parameter before the respondents enrolled for the EDP programme was 1.72 while the same after the respondents had completed the EDP programme was 3.61. An analysis of the above table brings out that the t- value is -48.76 and significance is 0.00. Since the significance value is less than 0.05, the mean difference existing for this parameter before and after the EDP programme is

significant (at 5% level). Hence, null hypothesis is rejected and alternate hypothesis is accepted.

 Cash flow management: The mean score achieved by this parameter before the respondents enrolled for the EDP programme was 1.78 while the same after the respondents had completed the EDP programme was 3.63. An analysis of the above table brings out that the t-value is -49.11 and significance is 0.00. Since the significance value is less than 0.05, the mean difference existing for this parameter before and after the EDP programme is significant (at 5% level).

 General management: The mean score achieved by this parameter before the respondents enrolled for the EDP programme was 1.81 while the same after the respondents had completed the EDP programme was 3.64. An analysis of the above table brings out that the t-value is -49.84 and significance is 0.00. Since the significance value is less than 0.05, the mean difference existing for this parameter before and after the EDP programme is significant (at 5% level).

 Marketing of product/services: The mean score achieved by this parameter before the respondents enrolled for the EDP programme was 1.75 while the same after the respondents had completed the EDP programme was 3.69. An analysis of the above table brings out that the t- value is -50.76 and significance is 0.00. Since the significance value is less than 0.05, the mean difference existing for this parameter before and after the EDP programme is significant (at 5% level). Hence, null hypothesis is rejected and alternate hypothesis is accepted.

 Legal aspects-Company/Business:

The mean score achieved by this parameter before the respondents enrolled for the EDP programme was 1.76 while the same after the respondents had completed the EDP programme was 3.68. An analysis of the above table brings out that the t- value is -48.52 and significance is 0.00. Since the significance value is

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less than 0.05, the mean difference existing for this parameter before and after the EDP programme is significant (at 5% level). Hence, null hypothesis is rejected and alternate hypothesis is accepted.

 Human Resource Management: The mean score achieved by this parameter before the respondents enrolled for the EDP programme was 1.70 while the same after the respondents had completed the EDP programme was 3.67. An analysis of the above table brings out that the t- value is -54.05 and significance is 0.00. Since the significance value is less than 0.05, the mean difference existing for this parameter before and after the EDP programme is significant (at 5% level). Hence, null hypothesis is rejected and alternate hypothesis is accepted.

 Financial Management: The mean score achieved by this parameter before the respondents enrolled for the EDP programme was 1.80 while the same after the respondents had completed the EDP programme was 3.69. An analysis of the above table brings out that the t-value is -49.89 and significance is 0.00. Since the significance value is less than 0.05, the mean difference existing for this parameter before and after the EDP programme is significant (at 5% level).

 Risk orientation: The mean score achieved by this parameter before the respondents enrolled for the EDP programme was 1.75 while the same after the respondents had completed the EDP programme was 3.68. An analysis of the above table brings out

that the t-value is -49.93 and significance is 0.00. Since the significance value is less than 0.05, the mean difference existing for this parameter before and after the EDP programme is significant (at 5% level).

 Creativity and Innovation: The mean score achieved by this parameter before the respondents enrolled for the EDP programme was 1.82 while the same after the respondents had completed the EDP programme was 3.68. An analysis of the above table brings out that the t-value is -46.59 and significance is 0.00. Since the significance value is less than 0.05, the mean difference existing for this parameter before and after the EDP programme is significant (at 5% level).

 Opportunity identification: The mean score achieved by this parameter before the respondents enrolled for the EDP programme was 1.75 while the same after the respondents had completed the EDP programme was 3.77. An analysis of the above table brings out that the t-value is -53.88 and significance is 0.00. Since the significance value is less than 0.05, the mean difference existing for this parameter before and after the EDP programme is significant (at 5% level).

Ho-: The perceived Satisfaction of EDP and perceived business performance is not related for the entrepreneurs.

Ha-: The perceived Satisfaction of EDP and perceived business performance is related for the entrepreneurs.

Correlation

Overall satisfaction about EDP

Correlation is significant at the 0.01 level (1-tailed).

Correlations

Overall satisfaction

about Business success

Attainment of

Expectations Pearson Correlation .303**

Sig. (1-tailed) 0.00

N 462

Application of skills in business achieved

through EDP

Pearson Correlation .478**

Sig. (1-tailed) 0.00

N 462

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Overall satisfaction about EDP

An analysis of the above table brings out that both 'Attainment of Expectations' and 'Achieving through EDP' were found

to have positive and significant (at 1%

level) correlation with Overall satisfaction about EDP.

Regression

Overall satisfaction about Business success – Model summary

DV IV R R

Square Adjust ed R Square

Std. Error of the Estimate

F-

Value Sig.

Overall satisfaction about Business success

Belgaum vs. Bijapur, Achieving through EDP,

Post training ratings, Age,

Attainment of

Expectations, Belgaum vs. Bagalkot

0.61

8 0.38 0.37 0.49 46.75 0.00

Overall satisfaction about Business success – Coefficients

Coefficients

Model

Unstandardized

Coefficients Standardized Coefficients

t Sig.

B Std.

Error Beta

1

(Constant) 0.48 0.53 0.92 0.36

Age 0.09 0.02 0.18 4.12 0.00

Attainment of

Expectations 0.01 0.08 0.01 0.18 0.85

Achieving through EDP 0.23 0.11 0.12 2.15 0.03

Post training ratings 0.49 0.07 0.28 6.98 0.00

Belgaum vs. Bagalkot -0.67 0.10 -0.48 -6.80 0.00

Belgaum vs. Bijapur 0.14 0.07 0.10 2.04 0.04

Regression analysis was used to find the effect of EDP and demographic variables on Overall satisfaction about Business success. It is seen from the tables that the correlation coefficient value (R) is 0.618 for Model1, which exhibits a fair amount of correlation between Independent variables (EDP &

demographic variable) and dependent variable (Overall satisfaction about Business success), with the F-ratio being

46.75 and its associated significance level being small (P<0.000). The R square value gives us the goodness of fit of the regression model. That is, the amount of variability explained by the whole of the selected predictor variables in the model for 38.0% (R2%=.38* x100) of variation in the dependent variable (overall satisfaction about EDP).

As per the above table, with age, achieving through EDP, post training ratings, 0.303

0.478

0.00 0.10 0.20 0.30 0.40 0.50 0.60

Attainment of Expectations Achieving through EDP

Correlation Score

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Belgaum vs. Bagalkot and Belgaum vs.

Bijapur, Overall satisfaction about Business success has a linear relationship with EDP (as the signs between the variables are also expected).

Ho-: The perceived usefulness of EDP to start business and recommendation of

EDP to other entrepreneurs is independent

Ha-: The perceived usefulness of EDP to start business and recommendation of EDP to other entrepreneurs is dependent Perceived usefulness of EDP to start business and recommendation of EDP to other entrepreneurs T-Test

Recommend this

programme to others

N Mean Std.

Deviation

t Sig. (2-

tailed)

Attainment of

Expectations Yes 578 4.37 0.38 8.34 .000

No 20 3.65 0.47

Application of skills in business achieved through EDP

Yes 578 3.46 0.33 3.00 .003

No 20

3.00 0.00

Trainees who attend the programme, and who got satisfaction, their average score is high and who is willing to recommend their mean score is higher than who does not want to recommend, however the sample size for who said No is quiet low, so directly comparison may not right.

However t value is more than +/- 1.96 and sig value is .000 which is less than .05 the significant difference is statistically significant.

Major Findings:

 There is a remarkable change in the Knowledge and skills of the trainees after EDP. From the average mean score 1.78 to 3.66, and there is also a transformation entrepreneurial competency has taken place from average mean score of 2.23 to 4.29 which signifies that EDP is effective in transferring of knowledge and skill among the trainees.

 To know significant differences in the perception of knowledge and skills among the trainees before and after the EDP programme a t- test (Paired Samples Statistics) was used. An analysis brings out that the significance value is less than 0.05 in all the parameters. The mean difference existing for all the parameters before and after the EDP programme is significant (at 5% level). Hence, the perception among various parameters differs before and after the EDP programme which proves that the EDPs are effective transforming of knowledge and skills among trainees.

 To know the effectiveness of EDP the correlation has been done between attainments of expectations by the trainees from EDP, application of skills in business achieved through EDP and

overall satisfaction about business success. An analysis of this brings out that both „Attainment of Expectations‟

and „application of skills in business achieved through EDP‟ were found to have positive and significant (at 1% level) correlation with Overall satisfaction about business success. Hence it is proven that EDP is effective in application of knowledge and skills by the trainees in business performance.

 Regression analysis was used to find out the effect of EDP and demographic variables on overall satisfaction about Business success. It is seen from the correlation coefficient value (R) is 0.618 for Model1, which exhibits a fair amount of correlation between Independent variables (EDP & demographic variable) and dependent variable (Overall satisfaction about Business success), with the F-ratio being 46.75 and its associated significance level being small (P<0.000).

The R square value gives us the goodness of fit of the regression model. That is, the amount of variability explained by the whole of the selected predictor variables in the model for 38.0% (R2%=.38* x100) of variation in the dependent variable (overall satisfaction about EDP).

 The trainees who attended the EDP 97%

of which are recommending this programme to friends and colleagues.

CONCLUSION: One of the ways to support Government efforts to fight poverty, unemployment and regional imbalance, is to devise means of supporting the growth of the entrepreneurship in India. The study has proven that EDP training has achieved its

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aims of arousing and reforming the entrepreneurial behaviour in the day to day activities, enhancing their skills and knowledge and helping them to develop their own ventures or enterprises as a result of training.

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