Professional Documents
Culture Documents
Development
Sandeep Singhai
Senior Scientist
CSIR-CSIO
Entrepreneurship Development:
Outline
Introduction
Conclusion
Entrepreneurship:
Introduction-1
Definition:
Aspects of Entrepreneurship :
Innovation Potential
Risk-taking Propensity
Venturing into new business for profit
This requires
Recognition of opportunity and generation of a
business idea to exploit the opportunity.
Marshalling and commitment of resources to
pursue the opportunity
Creation of an operating business organization to
implement a business plan.
Entrepreneurship: Introduction-III
Important Activities:
Creating a Business Plan
Making a Product Choice
Setting up Infrastructure
Naming & Registering a business
Choosing a Form of business organisation
Choosing the location of Industry
Pricing your Product
Regulatory requirement
Financing a start-up business
Sourcing process, Raw Materials, Machinery and Equipment
Hiring human resources
How to start a new company? - II
Creating a Business Plan:
Cover Page(company’s name, address, telephone, fax, e-mail
and website address, the name and designations of the
contact persons, names of funding organization, company’s
logo)
Table of Contents(Section title and Section number)
Executive summary (Kind of business, Profile of the company’s
management, Financial requirements, Budget allocations,
Objectives - both quantitative and qualitative, Market analysis,
Environmental influences)
Development and Production(Detailing the stages of
development and production of production /service ,spelling
out how time and money will be allocated each stage)
Resource Requirement(Quality ,Marketing, Target market,
Communication strategy including advertising ,branding
,packaging etc., Sales forecast, Financial plans, Human
Keep In Mind
Resources, Forms of Business, Critical Risk, Conclusion,
Format and Presentation
Appendixes)
Writing and Editing
Summary
How to start a new company? - III
Making a Product Choice
Scanning for Opportunity
Making a Market Survey
Analysing Competition
Carrying out a Profitability Analysis
- Previously in India there was a reserved list of products for
exclusive manufacture in small-scale sector. However recently
with globalization the government has done away with such
reserved list.
Setting up Infrastructure
Land and Construction of Building
Getting Utility Connections (Water and Power)
Getting a Telephone and Internet connection
How to start a new company? - IV
Regulatory requirements
Environment Regulation
Companies Act
How to start a new company? – VII
Sourcing Process, Raw Materials, Machinery and
Equipment
Selection of Process, Raw Materials, Machinery and
Equipment
The imports are regulated by the foreign trade
(Development and Regulation )Act,1992 acted upon by
Director General of Foreign Trade
There are 30 Micro, Small and Medium Enterprises
Development Institutes (MSME-DIs) and 28 Branch
MSME-Dis set up in state capitals and other industrial
citiesHuman
Hiring all overResource
the country.
Manpower Planning
Recruitment
Selection and Placement
Small Scale Industrial Undertakings– I
Small Scale Insdustrial Undertaking
An industrial undertaking in which the investment in
fixed assets in plant and machinery whether held on
ownership terms on lease or on hire purchase does not
exceed Rs 10 million.
(Subject to the condition that the unit is not owned,
controlled or subsidiary of any other industrial
undertaking)
Ancillary Industrial Undertakings
An industrial undertaking which is engaged or is
proposed to be engaged in the manufacture or
production of parts, components, sub-assemblies,
tooling or intermediates, or the rendering of services
and the undertaking supplies or renders or proposes to
supply or render not less than 50 per cent of its
production or services, as the case may be, to one or
more other industrial undertakings and whose
investment in fixed assets in plant and machinery
Small Scale Industrial Undertakings– II
Women Entrepreneurs
A Small Scale Industrial Unit/ Industry related service or
business enterprise, managed by one or more women
entrepreneurs in proprietary concerns, or in which she/
they individually or jointly have a share capital of not
less than 51% as Partners/ Shareholders/ Directors of
Private Limits Company/ Members of Cooperative
Society.
Small Scale Industrial Undertakings–
III
Small Scale Service & Business (Industry related)
Enterprises (SSSBEs)
SSSBEs industry related service/ business enterprises
with investment upto Rs 500,000 in fixed assets,
excluding land and building, are called Small Scale
Service/ Business Enterprises (SSSBEs). This limit has
been raised to Rs.1 million w.e.f. September 2000.
Activities of SIDBI
◦ Setting Up of New Projects
◦ Expansion, Diversion, Modernization, Technology Up-
gradation, Quality Improvement and rehabilitation of
existing units
◦ Strengthening of Marketing Capabilities of SSI units.
◦ Development of Infrastructure for SSIs
◦ Export Promotion
Capital Financing - I
Types of Financial Needs
Fixed Capital: It is that portion of the total capital outlay
that is invested in fixed assets (such as land, buildings,
vehicles, plant and equipment), that stay in the
business almost permanently - or at the very least, for
more than one accounting period. Fixed assets can be
purchased by a business, in which case the business
owns them. They can also be leased, hired or rented, if
that is cheaper or more convenient, or if owning the
fixed asset is practically impossible (for legal or
technical reasons).
Working Capital: Money invested in short term assets or
current assets is known as working capital. It includes
purchase of raw materials, payment of wages and
salaries, rent, fuel, electricity and water, advertising etc.
Capital Financing - II
Types of Capital Needs on the basis of period of use
Long Term Capital (> 5years): To finance Fixed Assets
and permanent part of working capital.
◦ Sources: Issue of Shares and Debentures, Profit
Reinvestment, Loans from financial institutions etc.
Articles of Association
Rules and Procedures for Routine Conduct of the Company
Procedure for incorporating a
company
Names has to be approved by the registrar of companies
For a private company, the last two words have to be
“private limited”
For a public company ,the last word has to be “limited”
Within sex months of approval of the name, the
memorandum of association and articles of association
must be submitted.
Registrar of companies gives the certificate of
incorporation
A private company can immediately start the operation
A public company can submit a prospectus to the
registrar of companies and raise capital from capital
market before starting its operation
Or it can submit a statement in lieu of prospectus and
start its operation thereafter