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Entrepreneur is the owner of the business who contributes the capital and bears the risk of uncertainties in business life. He organizes, manages, assumes the risks and takes the decision about the enterprise. He takes all the steps to establish undertaking, coordinates the various factors of production, and gives it a start. He should be able to evaluate, business, opportunities, together all the necessary resources and ensures the success of the enterprise. Entrepreneur views are broadly classified into three groups: 1. Risk bearer 2. Organizer 3. Innovator
Entrepreneur as a Risk Bearer:
According to Richard Cotillion, a rich man living in France was the first who introduced the term entrepreneur as an agent who buys the factory production at certain price in order to combine them into product with a view to selling it at certain price. He illustrated the framer who pays out contractual income, which is certain to landlord, labour and sells at price that is uncertain. Thus they too are risk bearer agent of production. Uncertainty is defined as the risk which cannot be insure against and incalculable.
Entrepreneur as an Organizer:
According to Jean-Baptize, Entrepreneur is a function of co-ordination, organization and supervision. According to him, an Entrepreneur is one who combines the land of one, the labor of another, capital of one another and thus produces product. By selling the product in the market he pays interest in capital, rent on land, wages to labor and what remains in his profit.
Entrepreneur as an Innovator:
According to Joseph who has introduced new combination of factors of production said, it may occur in any one of the following five forms: 1. The introductions of new product in market. 2. The instituting of new production technique, which is not yet tested by experience in the branch of manufacture concern. 3. The opening of new market into which the specific product has not previously entered. 4. The discovery of new source of supply of raw material. 5. The carry input of new form of organization of any industry by creating of monopoly position or breaking up of it.
Characteristics of an Entrepreneur:
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Hardworking, willingness Desire of high achievement Highly optimistic Independence Foresight Good organizer Innovative Energetic Flexible Knowledgeable Resourceful and should be able to take initiative.
Completion of promotion facilities 6. Recruitment of men 9. Undertaking business funds 10. 2. Product analysis and market research 4. To acquire the basic managerial skills. Determination of business objectives 3. To know the influence support needed for launching enterprise. To develop and strengthen their entrepreneurship quality. To ensure providing self-employment to a number of young men and women. To manage business and take decision. 3. It has bought in fresh thinking and attitudinal changes amongst families who are traditionally from non-business background. Entrepreneur Development: The myth that entrepreneurs are born not made no longer holds good. 7. Idea generation 2. whenever required. The biggest advantage of entrepreneur development program has bought about is creating a social awareness in the country. To analyze the environment relating to small-scale industry. It has provided new paths and carrier choices to large number of persons in the systematic manner.Functions of Entrepreneur: 1. The duration of training under this program ranges from 7 days to 3 months. 4. To formulate the project. Entrepreneur characteristic can be developed through entrepreneur development program. 5. Proper use of machine and material 8. Raising the necessary funds 7. Determination of form of ownership of organization 5. Mohit $inghmaR . 6. To select project and product. The basic objectives of entrepreneur development program can be started as: 1. 11. To study the market and to take advantage from opportunities.
These create immediate and permanent employment in large scale at relatively small capital cost. utilities and other expenditures are approximate and are on the basis of the local market. This sector is also contributing about one third of the country’s export. 3. These offer a good method of ensuring more equitable distribution of national income. These provide more chances of work and income. Small scale industries plays dynamic role in acerbating the rate of industrial growth and attaining economic prosperity of nation.Basis & Presumption The machinery and the equipment are of a particular type and are available in the open market. These can immediately meet a substantial part of the increased demand for consumer goods. The cost indicated against the raw material. 4. Role of Small Sector: The contribution of this sector is c\considerably to Indian economy. Mohit $inghmaR . 2. Therefore in a developing country like India small-scale industries are much importance for building up of national economy. About 204 million units are provided employment to over 14 million people. Advantages of Small Scale Industries: 1. today central and state governments are providing all type of help to interested persons to solve their problems regarding small scale sector.
Labor intensive and capital saving 9. Self employment 8. Equitable distribution of national income 3.Objectives of Small Scale Industries: 1. Employment generation 2. To meet increased demand 4. Balanced economic development 7. Better utilization of services 6. With small investment production can be easily started 10 Highly précised machines and modern techniques is not needed Mohit $inghmaR . Decentralization 5.
All possible efforts are made very seriously (not carefully) for the development of an industrial culture. individual or corporate. 3. is: 1. Irrespective to number of workers engaged is called small-scale unit. 4. The development of backward regions and areas constitutes a new challenge. programs for their development be drawn up and should be effectively implemented. entrepreneurship implies positive action and initiative. motivated individuals with the right kind of combination of abilities and attributes can pursue their goal with unremitting courage and enthusiasm. 2.INTRODUCTION TO SSI The SSI (Small Scale Industries) today is immense for the growth of country. There is need to streamline the R&D wing of public sector enterprises. land. guidance etc. 6 . Public entrepreneurship should remain confirmed only to those industries and sectors where private enterprise. Existing public entrepreneurship be improved through better management and by putting relatively greater emphasis on research and development. subsidiaries. 5. The strategy adopted by the government. is generally not attracted. Adequate measures are a must for mobilizing and fostering the entrepreneurial talent in the country. it should be realized that entrepreneurs are not the gift of a particular class. Small Scale Industries are the industries which are run with the help of hired labour and which also use some simple machine and power. It should be realized that the central core of entrepreneurship is the motive force since by its very nature. The investment scale in the industry varies from 5 lakhs to 4 crore for the fixed assets. In India these types of industries are promoted to meet with the problems of excess population and unemployment so the government of India promotes entrepreneur to set up small scale industries by aiding him by giving loans. There is need to develop management education and industrial training. In the context.
Economic administration by the state should be improved and made more effective so that economic policies may fully achieve their objectives in the overall interest of the economy. The development and introduction of new ideas 2. 7. screening. Quality 1. development and commercialization of new products. The discontinuance of elimination of marginal or profitable products. Sales Forecasting 3. for the basic objective of producing maximum long range corporate profits”. especially to the small and medium sized enterprises. MARKETING MANAGEMENT IN SSI: What is marketing ? Why it is needed? Are such questions that are to be answered for up liftment of SSIs. Products can be classified as: 7 . Product Planning 2. Role of advertising (personnel selling) 6.Felton marketing can be described as – “A cooperate state of mind that insists on the integration and coordination of all marketing functions which in turn answered with all other cooperate functions. According to P. Product planning: Product planning may be defined as “the act of marketing out and supervising the search.6. They may also impart knowledge about the needs of the economy and they should file their massive data in terms of growth of new entrants or entrepreneurs in the field of industry. Modification of existing lines as may be required in terms of changing consumers need and preferences. Studs in marketing management 1. Financial institutions should provide adequate and timely credit and technical assistance. 3. Distribution Policy 5.” Product planning involves three important considerations – 1. Pricing Policy 4. modification of existing lines.
budgeting expenses etc. Marketing of proper sales forecast requires an assessment of 1. As defined by the American Marketing Association It is” an estimate of sales in dollars or physical units for a specified further period under a proposed marketing or programme under an assumed set of economic and other forces outside the unit for which the forecast is made”. This type of forecasting is important for 1. 3. Determining schedule of operation. Industrial Products 3. It is useful for the following purpose1. which are likely to affect the sales. the sale forecast can be divided in three types1. Defense Products 2. The outside uncontrollable likely influence the company sales.1. 2. Providing adequate shipping facilities 8 . Estimating inventory requirement 2. This is mostly done by companies’ day-to-day forecasts for their production control needs and to plan for long time financial needs. 2.Which extends from one year to about four years into future. Consumer Products 2. Medium range forecast. Short range forecast – Which generally extended from a few weeks to about six month or at most one year in future. Estimating profits. Sales forecast can be for a specified product line or it can be for a market as a whole or for any portion of it. 4. The internal proposed changes in the marketing strategies and tactics of the company. Sales forecasting A sales forecast is an estimate for the amount or unit sale for a specified further period under a proposed marketing plan or programme. According to the time period. 2. Determining dividend policy. Decide range of maintenance expenditure.
3. Estimating companies long-range personnel needs. Highlighting future problems. 3. Hence sound-pricing policy must be adopted to ensure that the organization secures satisfactory profits. Pricing policy: Pricing is a very critical decision pricing decisions are not easy to make. Assessing production worker requirements 4. He has to consider various pricing factors which influence pricing apart from cost such as the customer characteristics. Distribution strategy: Distribution may be defined as an operation or a series of operations. Long range forecast: Extending to at least five years into future and in case of really large organization extended over a longer period up to ten years or even more. 5. competitive environment and governmental control wherever applicable the price of the product materially effect the demand for it as well as the organization competitive ability for expenditure if the quality of product is to be improved the may be possible only if the customer are willing to pay a higher price for it. For pricing decision a marketing manager has to be familiar with economic concept useful in pricing decision. if the product is not properly priced there might be reluctance from the channels of distribution. A distribution strategy consists of distributing or sub-dividing the total products of a manufacturer to various specific markets. It is useful in following ways1. Determining probable trends and range of cash inflows from sales. which physically bring goods manufactured or produced by only particular manufacturers into the hands of the final consumers to the users. There may be state market. 2. a national market or even a world market.Advertising: 9 . Anticipating the magnitude and timing of capital expenditures required new facilities in the future. 4. Besides. Setting production runs for each products 3. Estimating working capital needs 5. 4. 3. the economic product characteristics.
Selection of Industry Selection of a suitable place for an industry is the key to success. he should be confident. labour. Preparation of Scheme: After deciding the product to be manufactured and the place of industry. State trading corporation (STC) 3. quality and price of other product with which proposed item be in competition. Type and size of industry should be decided by the market study. National small industries corporation (NSIC) PROCEDURE TO START A SMALL SCALE INDUSTRY Starting of a small-scale industry is not a very easy task. Demand and supply of position of the product should be before selecting the type of industry. Different factors for the selection of the site are availability of the land. requirements of land and building. their approximate cost. Procedure to start small scale industry consist of following important steps1. (ECGC) 2. power and transport facilities and nearness to the market. raw material. Owner should make himself conversant with all acts.To counter the markets at national and international level the government of India set up various institutes like: 1. rules of central and state governments etc. He should therefore make himself familiar with the permanent policies and procedures. For this. Trade development authority 4. the first and most important work is to select a suitable site and then to make a proper scheme and yet approved. assistants and facilities he can get from whom and how. number of workers and other 10 . a detailed scheme is prepared. Export credit guarantee corporation ltd. This scheme include number of machines. At the same time it is not difficult so. For starting. enthusiastic and realizing. if different factors are considered before taking a decision to start it. Getting Familiar: An entrepreneur desiring to set up an industry must first formulate comprehensive setting the industry for its success.
Weaknesses. proposed factory layout and plant layout. and criteria for successful and effective SWOT analysis. its main aspects. their salaries and estimated production cost. and Threats involved in a project or in a business. Weaknesses. expected profit.staff. it may also be found as a ‘WOTS up’ analysis or the TOWS analysis. Threats. Real opportunities exist when there is a close fit between environment. The following report will look closely into the SWOT’s concept. and in relation to the organizational culture. and in relation to the organization’s resources. values and resources. SWOT is an acronym for Strengths. An evaluation of an organization’s strengths and weaknesses in relation to environmental opportunities and threats is generally referred to as a SWOT analysis. A SWOT analysis is a planning tool used to understand the Strengths. It involves stating the objective of the business or project and identifying the internal and external factors that are either supportive or unfavourable to achieving that objective. Occasionally. SWOT-Analysis Introduction: Environmental opportunities are only potential opportunities unless the organization can utilize resources to take advantage of them and until the strategic leader decides that it is appropriate to pursue the opportunity. SWOT is often used as part of a strategic or business planning process. The concept : Any organisation undertaking strategic planning will at some point assess its own strengths and weaknesses. Opportunities. Opportunities. It is therefore important to evaluate environment opportunities in relation to the strengths and weaknesses of the organization’s resources. When combined with an inventory of opportunities and 11 . but can be useful in understanding an organisation or situation and decision-making for all sorts of situations.
Opportunities and Threats. It requires a team effort and cannot be done effectively by only one person.threats in the organisation’s external environment. 12 . Fault. What is bad in the future is a Threat. What is bad in the present is a Fault. There are several ways of graphically representing the SWOT analysis matrix or grid. Humphrey created a ‘team method for planning’ originally called SOFT analysis (Satisfactory. It is essentially a summary of a set of previous analyses – even if those were just 15 minutes of mini-brainstorming with yourself in front of your computer although this approach is not recommended! The analysis. The term ‘SWOT analysis’ is in itself a curious term. The SWOT methodology has the advantage of being used as a 'quick and dirty' tool or a comprehensive management tool. the organisation is effectively making a SWOT analysis. Opportunity. experience shows that to do a SWOT analysis that is both effective and meaningful. Examples are shown later in this factsheet. requires time and a significant resource. and that one (the quick) can lead to the other (the comprehensive). The original goal was to identify why corporate planning failed. for a SWOT is not an analysis in itself. that is it is establishing its current position in light of its Strengths. comes after the SWOT summary has been produced. but a number of elements when used together form a valuable framework for analysis. What is good in the future is an Opportunity. History : The SWOT analysis technique is credited to Albert Humphrey who led a research project at Stanford University in the 1960s and 1970s using data from leading companies involved in long range planning processes. This flexibility is one of the factors that has contributed to its success. While at first glance the SWOT looks like a simple model and easy to apply. Weaknesses. or more correctly ‘interpretation’.The thinking behind the tool was: • • • • What is good in the present is Satisfactory. Threat) which was used by organisations like WH Smith who made it part of their long range planning programme for almost 20 years.
but also more importantly. A weakness is a “limitation or deficiency in one or more resources or competencies relative to competitors that impedes a firm’s effective performance” OPPORTUNITIES: Another major factor is to determine how organisations can continue to grow within the marketplace. social patterns. Strength is a “resource advantage relative to competitors and the needs of the markets a firm serves or expects to serve”. from customers. such as the changes in technology. changes in competitive or regulatory circumstances. and improved buyer or supplier relationships could represent opportunities for the firm. not only from its point of view. and so on. technological changes. costs and investments? Administration: how do we manage all this? SWOT / TOWS ANALYSIS: These can be defined as follows and can of below type for industry or organization:STRENGTH: Determine an organisation’s strong points. It is a distinctive competence when it gives the firm a comparative advantage in the marketplace. After all. government policy. THREATS: 13 . Key trends are one source of opportunities. opportunities are everywhere. Although it may be difficult for an organisation to acknowledge its weaknesses it is best to handle the bitter reality without procrastination. This should be from both internal and external customers. Identification of a previously overlooked market segment.Humphrey’s work has developed the implementation to use the SOFT in the context of six categories which provide a framework by which issues can be developed into actions and managed using teams: • • • • • • Product: what are we selling? Process: how are we selling it? Customer: to whom are we selling it? Distribution: how does it reach them? Finance: what are the prices. WEAKNESS: Determine an organisation’s weaknesses.
No one likes to think about threats. despite the fact that they are external factors that are out of our control. and new or revised regulations could represent there threats to a industrial’s firm’s success. It is vital to be prepared and face threats even during turbulent times. A threat is a major unfavourable situation in a firm’s environment. but we still have to face them. slow market growth. for example. technological changes. increased bargaining power of key buyers or suppliers. TABLES & DIAGRAM: 14 . The entrance of new competitors. the recent economic slump in Asia. Threats are key impediments to the firm’s current or desired position.
How to Write a Good SWOT Analysis In order to write a good SWOT the following criteria must be taken 15 .
• Do not mistake the outcomes of strength (such as profits and market share) for strengths in their won right. and why it can be considered as a strength. Product (what are we selling?) 2. weakness. where possible. • Be a specific as you can about the precise nature of a firm’s strength and weakness. by having strengths and weaknesses that are essentially different aspects of the same strategy of resource. Administration (and how do we manage all this?) 16 . Do not be content with general factors like economies of scale. Finance (what are the prices. to make it plain why a particular factor is important. Situational analysis – SWOT ANALYSIS Translating SWOT issues into actions under the six categories 1. Customer (to whom are we selling it?) 4. Come to a reasoned conclusion about whether the good points outweigh the bad ones.• Make your points long enough. and cite figures. costs and investments?) 6. opportunity or threat. • Avoid vague. • Avoid contradicting yourself in the course of the analysis. general opportunities and threats that could be put forward for just about any organisation under any circumstances. • Improvements is not the same as strength – do not confuse the two. Distribution (how does it reach them?) 5. Process (how are we selling it?) 3. Include precise evidence. and include enough detail.
3. window grills.: C-39. 17 .. railways. Date of incorporation Size Product Marketing aspects 20-12-2008 Small scale industry MS bar and MS flat Widely useful for engineer. Ltd.PROJECT AT GLANCE: 1. and collapsible gate manufacturers. 2. Hisar Plot No. 5. 4. Name Name of Director Address MAHALAKSHMI INDUSTRIES Pvt. 6. 7. Manoj Sihag New Model Town Ext.
Flats The M.Flats offered by us are available in various thickness and sizes. Our wide array of products includes: M. and collapsible gate manufacturers. 18 .S. Plates We offer MS bars which are manufactured with great precision and undergo stringent quality checks. window grills.S.S. railways. These are highly beneficial for engineer.INTRODUCTION NAME OF PRODUCT-MS bar and MS flat They manufacture. export and supply a range of Hot rolled steel and structural steel products. Their products are manufactured from the superior quality mild steel and stainless steel which are procured from the leading vendors. Squares / M. squares.S. M. These are offered to serve various industrial requirements and are available at industry leading prices.S. We offer customization facility to our valuable customers who seek for perfection. M.
To limit cracks that may develop in reinforced concrete around mild steel bars due to stretching of bars and some lose of bond under load it is common to use deformed bars that have projecting ribs or are twisted to improve the bond with concrete. In addition the strength of bonds of deformed bars calculated should be 40 to 80 % higher than that of plain round bars of same nominal size. These rods are manufactured in long lengths and can be cut quickly and be bent easily without damage. Hisar Plot No. Production: We manufacture 1000 tons per annum. These bars minimize slippage in concrete and increase the bond between the two materials. Deformed bars have more tensile stresses than that of mild steel plain bars. in reinforced cement concrete work. Haryana 19 . These steel bars are plain in surface and are round sections of diameter from 6 to 20 mm. Location of unit: New Model Town Ext. These bars can be used without end hooks. The deformation should be spaced along the bar at substantially uniform distances.: C-39. These bars are produced in sections from 6 mm to 20 mm dia. Cold twisted deformed (Ribbed or Tor Steel Bars) bars are recommended as best quality steel bars for construction work by structural Engineer. And it has more tensile stress than that of plain round bars of same nominal size.Purpose: Mild steel bars are used for tensile stress of RCC (Reinforced cement concrete) slab beams etc..
Rohtak 2. Goyal Steel Works Hisar 2.SUPPLIERS LIST 1. Rageev tender works Rohtak 20 . Vijay Iron Trading Hisar 3. Mahesh Steel Shop Rohtak 4. Riyag Steels Co. Lakshmi Steels Hisar BUYERS LIST 1.
PROCESS FLOW DIAGRAM Raw Materials (Scrap) Shearing Shearing Machine Cutting by Scissors Cupola Furnace Rolls Floor 21 .
3 2 3 1 1 1 4 SPECIFICATIONS OF THE PRODUCT 22 . Grinder 4.MACHINES USED Name 1. Cupola 5. Coal meshing machine 6. Shearing machine 7. Lathe machine 2. Drill machine 3. Welding Machine No.
Mild steel bar Specification 8 mm 10 mm 12 mm 16 mm 20 mm 2. Mild steel flat 20-5 mm 20-3 mm 25-5 mm 25-3 mm 25-6 mm 25-8 mm COST ESTIMATION 23 .Product 1.
Lathe Machine 3. Rate (Rs.2 lac 920000 Particulars No.9 lac 0. Cupola 7.Land Land measuring 1550 sq.T.7 lac 0. Shearing Machine 1 1 1 1 1 1 1 1.M.) Total Cost of Raw Material (Per Month) 24 . Drill Machine 5.5 lac 1. Grinder 6. No. Ext. Shaper 4. Amount(Rs) 1.yard at N. 45. Hisar Rs.5lac 1.000 Machinery & Equipment S.00.4 lac 1 lac 2. Lathe Machine 2.
Ingots Total 50 ton 50 ton 26000/ton 28000/ton 1300000 1400000 2700000 Staff & labour (per month) S. No.S. 2 6 4 2 8 2 34 Salary (Rs. No.04 lac 0.) 1 lac 0.54 lac Working Capital (per month) S.1 lac 0. Old plate scrap 2. Stationary & Telephone Transportation & other expenses Total Amount (Rs. No.) 2700000 122000 154000 .) 8000 5000 4000 8000 4500 4000 Total 16000 30000 16000 16000 36000 8000 122000 Other expenditure and utilities (per month) S. 1 2 3 Description Raw material Staff and labour Other expenses 25 Amount (Rs. Particulars Quantity Rate Amount (Including Transportation) 1.4 lac 1. 1 2 3 4 5 6 Description Foreman Skilled workers Testing Person Sales Man Helpers Peon-cum-watchman Total No. No. 1 2 3 4 Description Power and water Consumables & Tools Postage.
Yard) 2.Total 2976000 Total capital investment Rs.2 6. Machinery 4. Particulars Amount 45 30 9. Building 3. 1 2 Machinery and equipment (Non-recurring expenditure) Working capital for three months* (Recurring expenditure) TOTAL 920000 8928000 9848000 * Revenue is returned after three months Cost of production (per annum) Rs. In Lacs Sr.7 91 26 1. Land (1550 Sq. (in lac) 1 2 3 Recurring expenditure Interest on capital at 11 % Depreciation on machinery & equipment @10% TOTAL 35712000 2928320 92000 39732320 Cost of Project Rs. Margin Money for Working Capital Total .No.
1. 1307680 Total profit after selling scrap =1307680 + 1260000 = Rs. Interest 2.25% BREAK EVEN POINT ANALYSIS BEP = annual fixed cost / (sale price per ton – unit variable cost) Fixed cost (per annum) Rs. 38000 = 41040000 Calculation for Scrap (per annum) 5% of plate scrap = 5ton Scrap sold at 21000 per ton = 21000 x 5 x 12 = 1260000 Profitability per annum: Profit = Total sales – Cost of production = 41040000– 39732320 = Rs. 2567680 percentage profit on sales = (2567680/41040000)x100 = 6.Total Sales (per annum) 1080 ton @ Rs. Depreciation = 27 = 92000 2928320 .
So we can start a S. 40% on salary 4. In the case that the net profit.75% 4361220 annual fixed cost / (sale price per ton – unit variable cost) 4361220 / (38000 .02 ton/annum i.e. & breakeven point are not according to our expectations we can choose dropping the idea & plan for manufacturing a new product which would include making a new techno-economic feasibility report. 40% on other expenses 5. profit ratio. More production than 884 tons will lead to profit to company. profit ratio & breakeven point are up to our expectations. rate of return.I for manufacturing of coir sheet. we have to produce at least 884 ton per annum to achieve Break Even Point.3.2042545) 884. BEP BEP = = = = = = = 585600 739200 16100 @ 1. CONCLUSION Now the net profit (p. Insurance charges on m/c Total Break even point.a). 28 .S.
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