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Bachelor of Business Administration-BBA Semester 6 BB0028 – Entrepreneurship Development- 4 Credits Q.1 Write a short note on types of entrepreneurs.?

Answer Entrepreneurs can be of different types. Some may prefer to go it alone or share the risk in groups with others. They are found in every economic system and every form of economic activity as well as in other social and cultural activities. They are seen from amongst farmers, labourers, fishermen, tribals, artisans, artists, importers, exporters, bankers, professionals, politicians, bureaucrats and so many others. Basing on the above features C. Danhof has broadly classified entrepreneurs into four types. These are discussed below. 1. Innovative Entrepreneur: In the early phases of economic development, entrepreneurs have initiative to start new ventures and find innovative ways to start an enterprise. Thus, innovative entrepreneurs are those who introduces new products, new method of production techniques, or discovers a new market or a new service or reorganises the enterprise. It is the innovative entrepreneurs who built the modern capitalism. They are commonly found in developed countries. They are aggressive in nature who exhibit cleverness in putting attractive possibilities into practice. 2. Imitative Entrepreneur: There is a second group of entrepreneurs generally referred as imitative entrepreneurs. They usually copy or adopt suitable innovations made by innovative entrepreneurs. They are adoptive and more flexible. They are organisers of factors of production rather than creator. The imitative entrepreneurs are also revolutionary and important. They' contribute to the development of underdeveloped economies. 3. Fabian Entrepreneurs: The third type of entrepreneur is Fabian Entrepreneurs. Such type of entrepreneurs are very shy and lazy by nature. They are very cautious people. They do not venture to take risks. They are rigid and fundamental in their approach. Usually, they are second generation entrepreneurs in a family business enterprise. They follow the footsteps of their successors. They imitate only when they are very clear that failure to do so would result in a loss of the relative position in the enterprise. 4. Drone Entrepreneurs: The fourth type of entrepreneur is Drone entrepreneurs who refuse to copy or use opportunities that come on their way. They are conventional in their approach. They are not ready to make changes in their existing production methods even if they suffer losses. They resist changes. They may be termed as laggards. The above types of entrepreneurs is not comprehensive for it aims at highlighting the broad range of entrepreneurs found in business and profession. Following are some more types of entrepreneurs listed according to the type of business, use of technology, motivation, growth and stages of development.

Post-training phase is a review phase of training programme. 2. How the trainee behaves like an entrepreneur. Taking necessary steps for inauguration of programme.2 Explain the different phases in entrepreneurial development programme Answer 1. 3. What kind of entrepreneurial traits he lacks and what steps should be taken to set it.Pre-training phase: • • • • • • • Pre-training phase consists of all activities and preparation to launch training programme. Pre-training phase of EDP consists of the following activities : Selection of entrepreneurs for the training protgramme. Whether the trainee has sufficient knowledge on resources and technology or not. Shortage of Finance: Women entrepreneurs always suffer from inadequate financial resources and working capital. Training Phase: The primary objective of training programme is to develop motivation and skill or competency amongst the potential entrepreneurs. Deciding guest faculty for the programme from education industry and banks. The training phase of EDP will be so designed that it will answer the following questions: • • • • • Whether the attitude of the entrepreneur has been tuned towards the proposed project or no. Follow-up Phase: Follow up phase of EDP has been termed as post-training phase. • • • • So that they can start their project. The ultimate objective is to develop competent entrepreneurs. .Q. Arrangements of infrastructure are for the programme like selection of place of training.3 What are the basic problems faced by the women entrepreneurs? Answer 1. Q. Formation of selection committee to select trainees from the programme. It consists of reviewing of work in the following manner: Review of pre-training work Review of actual training programme Review of post training programme so that cost effectiveness of the present programme can be evaluated. Making provision with regard to publicity and campaigning for the programme. Whether the trainee has been motivated to accept entrepreneurship as a career. They are not able to afford external finance due to absence of tangible security and credit in the market. Care should be taken to impart both theoretical and practical knowledge to various trainees.

It is necessary to increase efficiency. Most of the women entrepreneurs fail due to lack of proper financing facilities. expand productive capacity to reduce the cost of production. Marketing problems: Women entrepreneurs often depend upon the middlemen for marketing their products who pocket large chunk of profit. risk bearing etc. Lack of entrepreneurial aptitude: One of the biggest problems of women is the lack of entrepreneurial aptitude. Male members of the family do not want to invest their capital in the business run by women due to lack of confidence in their ability to run venture successfully. 7. The middlemen exploit the women entrepreneurs. 4. Shortage of raw materials: The shortage of required raw materials is also one of the big problems faced by women entrepreneurs. 2. The complicated procedure of bank loans also creates lot of problems in getting the required finance. Stiff competition: Women entrepreneurs have to face severe competition from organized industries and male entrepreneurs having vast experience. Women entrepreneurs even face problems in getting requisite working capital financing day-to-day business activities. They have no entrepreneurial bent of mind. Women entrepreneurs have to depend upon their personal saving and loans from family friends. A lot of money is needed for advertisement in these days of stiff competition from male entrepreneurs. The basic characteristics of an entrepreneur such as innovation. 3. because finance is life blood of every business activities. Limited managerial ability: Women entrepreneurs may not be expert in each and every function of the enterprise. Women entrepreneurs find it difficult to procure the required raw materials and other necessary inputs for production in sufficient quantity and quality. 6. High cost of production: The high cost of production is another problem which undermines the efficiency and restricts development of women entrepreneurs. She will not be able to devote sufficient time for all types of activities. 5. are absent in a women . Women entrepreneurs also find it difficult to capture the market and make their products popular.Women have a very less property and bank balance to their name. Women entrepreneurs also lack energy and extra efforts needed to be investing and to win the confidence of customers and popularize the products. The prices of raw materials are quite high and fluctuate.

They even face discrimination in the selection of or entrepreneurial development training. 12. Women have some peculiar problems like staying out in the nights at distant places etc. Illiteracy further creates problems in setting up and smooth running of enterprises. 8. Majority of women are not aware about the technological developments. Legal Formalities: Women entrepreneurs find it extremely difficult in complying with various legal formalities in obtaining licenses etc. hesitation in taking quick decision also increases the rate of risk and chances of loss.entrepreneur. Their success in this regard also depends upon supporting husband and family. 11. 13. . The woman entrepreneur cannot succeed without the support and approval of husband. 14. Thus. 9. Women do not get equal treatment in male-dominated Indian society and male ego puts barriers in their progress. Lack of entrepreneurial training: Large number of women is no proper and sufficient technical and professional training to set-up a new venture. due to lack of education. occupational back grounds of families and education level of husbands have a great influence on the growth of women entrepreneurship. marketing knowledge etc. Low risk taking ability: Women entrepreneurs suffer from the problem of low risk taking ability as compared to their male counterparts. A married woman entrepreneur has to make a perfect balance between domestic activities and business activities. Family responsibilities: One of the main duties of women in India is to look after the children and other family members. 10. because they have led a protected life. Inferiority complex. Travelling: Women entrepreneurs cannot travel from one place to another as freely as men do. There is discrimination against women in India despite constitutional equality. Social attitudes: One of the biggest problems women entrepreneurs is the social attitude in which she has to live and work. Lake of Education: The education level among women in India is very low. lack of infrastructure. unplanned growth. A very little time and energy is left for business activities.

5 Write a note on marketing strategy Answer Q. This amounts to multiple taxation. All these functions are taken care with 27 offices.3 Discuss MODVAT in detail . Now. layout design and appropriate process.1 Write a note on new small enterprise policy – 1991.state level industries ministry and financial institutions. a manufacturer can take credit . (c) Management activities of SIDO: (1) To provide training. (2) To maintain relation with central industry ministry. POR Ltd would have paid excise duty on components manufactured by it and it would have recovered that excise duty in its sales price from ABC Ltd. Q. Answer SIDO is created for development of various small scale units in different areas. (4) To recommend the central government for reserving certain items to produce at SSI level only. (b) Industrial development activities of SIDO: (1) Develop import substitutions for components and products based on the data available for various volumeswise and value-wise imports. location. Market Charac: The supply and demand of vari Q. (2) To give essential support and guidance for the development of ancillary units. It is a nodal agency for identifying the needs of SSI units coordinating and monitoring the policies and programmes for promotion of the small industries. It undertakes various programmes of training. Under this scheme. 31 SISI (Small Industries Service Institute) 31 extension centers of SISI and 7 centers related to production and process development The activities of SIDO are divided into three categories as follows: (a) Coordination activities of SIDO: (1) To coordinate various programmes and policies of various state governments pertaining to small industries. (2) To provide marketing assistance to various SSI units.2 What is SIDO? Explain its functions. development and consultancy services to SSI to develop their competitive strength. evaluation for needs of SSI and development of industrial estates. (3) To provide guidance to SSI units in terms of costing market competition and to encourage them to participate in the government stores and purchase tenders.Q. (3) To assist SSI units in selection of plant and machinery. eg ABC Ltd is a manufacturer and it purchases certain components from PQR Ltd for use in manufacture. It is a scheme for allowing relief to final manufacturers on the excise duty borne by their suppliers in respect of goods manufactured by them. Modvat is a scheme where ABC Ltd can take credit for excise duty paid by PQR Ltd so that lower excise duty is payable by ABC Ltd. Answer Q. Answer Modvat stands for "Modified Value Added Tax". planning commission.4 What are the sources from which an entrepreneur can obtain business ideas. The scheme was first introduced with effect from 1 March 1986. (4) To help them get updated in various information related to the small-scale industries activities. ABC Ltd has to pay excise duty on toys manufactured by it as well as bear the excise duty paid by its supplier. Answer 1. SIDO is a subordinate office of department of SSI and ARI. PQR Ltd. (3) Implement and coordinate in the development of industrial estates.consultancy.

man made fibre fabrics and filament yarn fabrics Advantages of Modvat • It reduces the effects of taxation at multiple stages of manufacture. Gradual growth of enterprise become easily manageable by the enterprise. What all essential details she should mention in the project report. • It increases the tax base. the scope of the modvat scheme has been enlarged from time to time under various notifications. Enterprise grows with making major changes in its organisational structure. Special Boiling Spirits. High Speed Diesel In case of final products Tobacco and Manufactured Tobacco Products Matches other than pyrotechnics articles of heading number 36. • It leads to litigation. • It leads to corruption. Since it amounts to excise duty only on additions in value by each manufacturer at each stage. She needs to submit a report about the project. [10] Q. Q. Expansion makes possible the effective utilization of existing resources of an enterprise.of excise duty paid on raw materials and components used by him in his manufacture. Answer Total quality management or TQM is an integrative philosophy of management for continuously improving the quality of products and processes. • It facilitates duty free exports.5 Elaborate the TQM Process in Small Scale Enterprises.6 Explain expansion with advantages and disadvantages.in order to get the loan.04 of CETA Cinematograph Films Woven fabrics classified under chapter 52. Accordingly.04 of CETA Cinematograph Films Motor Spirits. From 16 March 1995. it covered only some excisable goods. . Q. every intermediate manufacturer can take credit for the excise element on raw materials and components used by him in his manufacture. When the scheme was first introduced. Answer The advantage of expansion are: • • • • Growth through expansion is natural and gradual. it is called value-added-tax (VAT) The modvat credit can be utilized towards payment of excise duty on the final product. wants to set up her own garment manufacturing unit.54 & 55 of CETA other than cotton fabrics. Gradually. all excisable goods can take the benefit of the scheme except those mentioned below:In case of inputs Tobacco and Manufactured Tobacco Products Matches other than pyrotechnics articles of heading number 36.4 Ms Latha G. • • • • • • • • • Disadvantages of Modvat • It increases paper work and leads to multiplicity of records.

The use of modern technology is limited due to the limited resources at the disposal of enterprise.• Expansion results in economies of large-scale operations. Expansion in the same line of product delimits enterprise growth making enterprise unable to take advantages from new business opportunities. The disadvantage of expansion are: Growth being gradual is time consuming. • • • . It weakens the competitive strength of the enterprise.

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