Professional Documents
Culture Documents
Course Content
(A) Entrepreneurial Perspective: Concept of Entrepreneur, Entrepreneurship and Enterprise ; advantages Entrepreneur 1) Nature and Development of Entrepreneurship; Gender Issues in Entrepreneurship. 2) The dynamic role of Small Business Industry in Economic Development 3) Personality of an Entrepreneur! 4) Innovation and Entrepreneurship (B) The Entrepreneurial Environment: 1) Policy Perspectives in India to promote Entrepreneurship 2) Analysis of Business Opportunities in different sectors of economy at National & Global levels. 3) Quick Start Routes to establish an Enterprise (Franchising, Ancilliarising & Acquisitioning) 4) Support Organizations for an Entrepreneur and their Role 5) Legal framework for starting a Business industry in India. (C) The Enterprise Launching : Product/Project Identification , Develop a Project Report/ Business Plan, Business Financing including venture Capital Finance Managing early growth of a Business, Incubation Program, New Venture expansion strategies and issues
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Reference Text
1. Beyond Entrepreneurship By James C. Collins, William C. Lazier 2. Entrepreneurship Management By P. N. Singh, By J. C. Saboo 3.Dynamics of Entrepreneurship By Vasant Desai 4. Entrepreneurship Development in India By Biswanath Ghosh 5. Literature Published by Support Institutions, Viz i) SIICOM ii) SIDBI iii) MSSIDC iv) NSIC
Growth
Defining Entrepreneurship
Organization Creation
Concept : Entrepreneur
Entrepreneur One who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them.
Concept : Entrepreneur
An entrepreneur is a person who is willing and able to convert a new idea or invention into a successful innovation, simultaneously creating new products and business models largely responsible for the dynamism of industries and long-run economic growth. Joseph A. Schumpeter, Schumpeter School of Business and Economics, Bergische Universitt, Wuppertal
Concept : Entrepreneur
Most of what you hear about entrepreneurship is all wrong. Its not magic; its not mysterious; and it has nothing to do with genes. Its a discipline and, like any discipline, it can be learned. Peter F. Drucker
Advantages : Entrepreneur
High degree of independencefreedom from constraints oGet to use a variety of skills and talents oFreedom to make decisions oAccountable to only yourself oOpportunity to tackle challenges oFeeling of achievement and pride oPotential for greater financial rewards
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Women enterprise..
An enterprise owned and controlled by a women having a minimum financial interest of 51% of capital and giving at least 51% of the employment generated by the enterprise to women. -Government of India
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When women move forward, the family moves, the village moves and the Nation moves. -Pandit Jawaharlal Nehru
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Challenges in the path of Women Entrepreneurship The essence of Entrepreneurship requires- the existence of economic opportunity, sympathetic cultural forces, supportive Government action and strong personal values & traits.
It is relatively easier for Women from upper strata to face above challenges. But it is a real challenge to bring the vast majority of disadvantaged into the mainstream of economic activity. Basically it is the familial & social conditioning that reduces the confidence, independence & mobility of women; and Insensitivity to the gender issues that result into problems in the way of Women Entrepreneurs.
Ritu kumar : Ritu Kumar (born November 11, 1944) is an Indian fashion designer, based in Delhi. Kumar has opened a new flagship store in
North America in The Mall at Oak Tree in Edison, New Jersey.
Priya Paul (Chairperson of Appeejay The Park Hotels chain of boutique hotels) Anuradha Desai: Chairperson, Venkateshwara Hatcheries
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TINY ENTERPRISE
TINY ENTERPRISE A unit is treated as a tiny enterprise where the investment in plant and machinery does not exceed Rs. 2.5 million (Rs. 25 Lakhs) irrespective of the location of the unit. Many shops, schools, parlours, Photostat and STD booths in your vicinity are all examples of tiny units.
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Entrepreneur Personality
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Entrepreneurs are moderate risk takers. They enjoy he excitement of a challenge, but they do not gamble. Risk situation occurs when an entrepreneur is required to make a choice between two or more alternatives whose potential outcomes are not known and must be evaluated in advance, with limited information. A risk situation involves potential gain and potential loss. As the size of the business expands the problems and opportunities become more numerous and complex. Business growth and development require an entrepreneur not to be afraid of taking decisions and certain risks. An entrepreneur always takes a calculated risk and is not afraid of failure.
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Entrepreneur Personality:
Need for Independence
: - The need for independence is the prime characteristic that has driven the entrepreneurs to start their own business. Entrepreneurs do not like to be controlled by others. They do not wait for direction from others and choose their own course of action. They set their own challenging goals and put efforts to achieve this goal. The independence provides opportunity for trying out new ideas and helps them achieve their goals.
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Entrepreneur Personality:
Emotional stability
- The most important personality factors contributing to the success of an entrepreneur are emotional stability, personal relations, consideration and tactfulness. An entrepreneur must maintain good relations with the customers if he wishes to enjoy their continued patronage. He must also maintain good relation with his employees, whom he shall motivate to perform their jobs at a high level of efficiency. An entrepreneur who maintains good human relations with customers, employees, suppliers and the community has a better chance to succeed in his/ her business.
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Opportunity Analysis
opportunity analysis\IndiaNewOpportunity.pdf opportunity analysis\ernst n young report doing biz in India.pdf Analysis of AIMA-BCG report for opportunity in India environment Also attached E & Y report on doing businesses in India
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PESTLE Analysis
Recently it was even further extended to STEEPLED, including ethics and demographics.
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PESTLE Analysis
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As practice in retailing, franchising offers franchisees the advantage of starting up business quickly based on a proven trademark, and immediate access to the tooling and infrastructure, as opposed to having to develop them.
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Franchise: India
The franchising of goods and services is foreign to India is in its infancy. The first International Exhibition was only held in 2009. India is, however, one of the biggest franchising markets because of its large middle-class of 300 million. McDonald's is a success story
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Ancillarization in India
The ancillary industries in the country are manufacturing a wide range of items to public sector units/MNCs. The ancillary industries have come up to the expectations of large- scale units/MNCs with quality and quantity. Small Industries Development Organization under the Ministry of Small Scale Industries, Govt. of India have launched various programs/schemes to promote ancillarization in the country during last decade.
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Ancillarization in India
Defence production in public sector is since the days of Industrial Policy announced in 1948. As a result a large infrastructure for defence ordnance and equipment consisting of 39 Ordnance Factories, 8 Defence PSUs and 50 R&D laboratories were created in the country. These institutions besides providing direct employment to over 2 lakh persons have also generated large scale indirect employment through ancillaries and SMEs by outsourcing to the later the supply of raw material, semi-finished goods/products parts and components. The combined turnover of the Ordnance Factories and Defence PSUs was Rs. 16.600 crores during 2003-04. These establishments currently outsource their requirements from the private sector to the extent of 20-25% and out of the quantities so outsourced 1/4 is met through the small -scale sector mainly ancillary industries.
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STATE LEVEL
DIs DICs SFCs SIDCs/SIICs SSIDCs
SSIs
OTHERS
Industry Association Non Governmental Organizations R & D Laboratories
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State Industrial Development / Investment Corporation (SIDC/SIIC) Set up under the Companies Act, 1956, as wholly owned undertakings of the State governments, act as catalysts in respective states. SIDC helps in developing land providing developed plots together with facilities like roads, power, water supply, drainage and other amenities. They also extend assistance to small-scale sector by way of term loans, subscription to equity and promotional services. 11 out of 28 SIDCs in the country also function as SFCs and are termed as Twin-function IDCs State Small Industrial Development Corporations (SSIDC) Established under Companies Act, 1956, as State government undertaking, caters to small, tiny and village industries in respective states. Being operationally flexible undertakes the activities like (i) procure and distribution of scarce raw materials, (ii) supply of machinery to SSI units on hire-purchase basis, (iii) product marketing assistance, (iv) construction of industrial estates, allied infrastructure facilities and their maintenance (v) extending seed capital assistance on behalf of State government and (vi) providing management assistance to production units
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Other Agencies
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Sole Proprietorship
Oldest & most common forms of business One man organization, single person owns, manages & controls whole business, has features below: 1. ease of formation, no elaborate legal formalities required, also no registration required, however license from local administration is required profit & loss from business solely borne by the owner No legal existence required, separately from the business. The liability of the proprietor is unlimited, i.e. its extends beyond the capital invested legal framework\e&y_doing_business_india.pdf Page no.110 to 118
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Partnership
Easy to form & no much legal formalities required-registration also not essential. However, if firm is not registered its deprived of certain legal benefits. The Registrar of Firms is responsible for registering partnership firms. The minimum number of partners must be 2, the maximum can be 10 in case of banking & 20 for any other businesses. The firm has no separate legal existence of its own, i.e. the firm & the partners are one in the eyes of law.
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