UNITI

TOP TEN REASONS TO BECOME ENTREPRENEUR

1. To experience the uncertain journey on Entrepreneurship
2. To bring out the inner strength within yourself
3. To make yourself proud by walking on a path that is less traveled
4. To show people around, that you are a person of strength and confidence
5. To value your own skills and strengths
6. To be an inspiration and example for others
7. To be creative
8. To make a difference in lives of others
9. To be happy. To love life and to love self
10. To create wealth

I.1 . DEFINITION OF ENTREPRENEURSHIP.

The term “entrepreneur” has been defined as one who detects and evaluates a new situation in his
environment and directs the making of such adjustments in the economic systems, as he deems
necessary. He conceives of an industrial enterprise for the purpose, displays considerable
initiative, grit and determination in bringing his project to fruition, and in this process, performs
one or more of the following:
1. Perceives opportunities for profitable investments
2. Explores the prospects of starting such a manufacturing enterprise
3. Obtains necessary industrial licenses
4. Arranges initial capital
5. Provides personal guarantees to the financial institutions
6. Promises to meet the shortfalls in the capital; and Co
7. Supplies technical know-how.
Entrepreneurship may be defined in various ways, but the four key elements involved in it are:
1. Innovation
2. Risk-taking
3. Vision, and
4. Organizing skill.
All the four elements are inter-related and form a continuous process in business. Entrepreneurial
vision encompasses the relentless pursuit for operational excellence, innovative technology and
being responsive to the needs of the market place.

Entrepreneurship is the act of being an entrepreneur, which is French word meaning “to
undertake”. Entrepreneurs assemble resources including innovations, finance and business
acumen in an effort to transform innovations into economic goods. This may result in new
organizations or may be part of revitalizing mature organizations in response to a perceived
opportunity.

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 o The most obvious form of entrepreneurship is that of starting new businesses;
however, in recent years, the term has been extended to include social and political
forms of entrepreneurial activity. When entrepreneurship is describing activities
within a firm or large organization, it is referred to as intrapreneurship and may
include corporate venturing, when large entities start spin-off organizations.
o In a Conference on Entrepreneurship held in United States, the term
‘entrepreneurship’ was defined as, “Entrepreneurship is the attempt to create value
through recognition of business opportunity, the management of risk-taking
appropriate to the opportunity, and through the communicative and management
skills to mobilize human, financial and material resources necessary to bring a
project to fruition”.

According to A.H. Cole, “Entrepreneurship is the purposeful activity of an individual or a group

of associated individuals, undertaken to initiate, maintain or aggrandize profit by production or
distribution of economic goods and services”.
According to Schumpeter, “Entrepreneurship is based on purposeful and systematic innovation.
It included not only the independent businessman but also company directors and managers who
actually carry out innovative functions”.
In all above definitions, Entrepreneurship refers to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is regarded as what managers do,
entrepreneurship may be regarded as what entrepreneurs do. In other words, Entrepreneurship is
the act of being an entrepreneur. Entrepreneurship is a process involving various actions to be
undertaken to establish an enterprise. It is, thus, process of giving birth to a new enterprise.
Entreprene urship = Entreprene ur + Enertprise

(Process) (Person) (object)

DEFINING ENTREPRENEURS ACCORDING TO VARIOUS FUNCTIONS

I. According to the Type of Business
Entrepreneurs are found in various types of business coronations of varying size. We may
broadly classify them as follows:
Business Entrepreneur:
Business entrepreneurs are individuals who conceive an idea for a new product or service and-
then creates a business to materialize their idea into reality. They tap both production and
marketing’ resources in their search to develop a new business opportunity. They may set up a
.big establishment or a small business unit. They are called small business entrepreneurs when
found in small business units such as printing press, textile processing house, advertising agency;
readymade garments, or confectionery. In a majority of cases, entrepreneurs are found in small

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trading and manufacturing business and entrepreneurship flourishes when the size of the business
is small.
Trading Entrepreneur:
Trading entrepreneur is one who undertakes trading activities and is not concerned with the
manufacturing work. He identifies potential markets, stimulates demand for his product line and
creates a desire and interest among buyers to go in for his product. He is engaged in both
domestic and overseas trade. Britain, due to geographical limitations, has developed trade
through trading entrepreneurs. These entrepreneurs demonstrate their ability in pushing many
ideas ahead to promote their business.
Industrial Entrepreneur:
Industrial entrepreneur is essentially a manufacturer, who identifies the potential needs of
customers and tailors a product or service to meet the marketing needs. He is a product-oriented
man who starts in an industrial unit because of the possibility of making some new product. The
entrepreneur has the ability to convert economic resources and technology into a considerably
profitable venture. He is found in industrial units as the electronic industry, textile units, machine
tools or videocassette tape factory and the like.
Corporate Entrepreneur:
Corporate entrepreneur is a person .who demonstrates his innovative skill in organizing and
managing corporate undertaking. A corporate undertaking is a form of business’ organization,
which is registered under some statute or Act, which gives it a separate legal entity. A trust
registered under the Trust Act, or companies registered under the Companies Act are example of
corporate undertakings. A corporate entrepreneur is thus an individual who plans, develops and
manages a corporate body.
Agricultural Entrepreneur:
Agricultural entrepreneurs are those entrepreneurs who undertake agricultural activities as
raising and marketing of crops, fertilisers and other inputs of agriculture. They are motivated to
raise agriculture through mechanization, irrigation and application of technologies for dry land
agriculture products. They cover a broad spectrum of the agricultural sector and include its allied
occupations.

II. According to the Technology use

The application of new technology in various succors of the national economy is essential for the
future growth of business. We may broadly classify these. entrepreneurs on the basis of the use
of technology as follows:
Technical Entrepreneur:
A technical entrepreneur is essentially compared to a “craftsman.” He develops improved quality
of goods because of his craftsmanship. He concentrates more on production than marketing. On
not much sales generation by and does not do various sales promotional techniques. He
demonstrates his innovative capabilities in matter of production of goods and rendering of

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services. The greatest strength, which the technical entrepreneur has, is his skill in production
techniques.
Non-technical Entrepreneur:
Non-technical entrepreneurs are those who are not concerned with the technical aspects of the
product in which they deal. They are concerned only with developing alternative marketing and
distribution strategies to promote their business.
Professional Entrepreneur:
Professional entrepreneur is a person who is interested in establishing a business, but does not
have interest in managing or operating it once it is established. A professional entrepreneur sells
out the running business and starts another venture with the sales proceeds. Such an entrepreneur
is dynamic and he conceives new ideas to develop alternative projects.
III. According to the Entrepreneur and Motivation
Motivation is the force that influences the efforts of the entrepreneur to achieve his objectives.
An entrepreneur is motivated to achieve or prove his excellence in job performance. He is also
motivated to influence others by demonstrating his business acumen.
Pure Entrepreneur
A pure entrepreneur is an individual who is motivated by psychological and economic rewards.
He undertakes an entrepreneurial activity for his personal satisfaction in work, ego or status.
Induced Entrepreneur
Induced entrepreneur is one who is induced to take up an entrepreneurial task due to the policy
measures of the government that provides assistance, Incentives, concessions and necessary
overhead, facilities to start a venture. Most of the induced entrepreneurs enter business due to
financial, technical and several other facilities provided to them by the state agencies to promote
entrepreneurship. A person with a sound project is provided package assistance to his project.
Today, import restriction and allocation to production quotas to mall units have induced many
people to start a small-scale industry.
Motivated Entrepreneur
New entrepreneurs are motivated by the desire for self-fulfillment. They come into being
because of the possibility of making and marketing some new product for the use of consumers.
If the product is developed to a saleable stage, the entrepreneur is further motivated by reward in
terms of profit.
Spontaneous Entrepreneur
These entrepreneurs start their business on their own. They are persons with initiative, boldness
and confidence in their_- ability, which activate, them, underage entrepreneurial activity. Such
entrepreneurs have a strong conviction and confidence in their inborn ability.
IV. According to the Growth and Entrepreneurs
The development of a new venture has a greater chance of success. The entrepreneurs a new and
open field of business. The customer’s approval to the new product gives them psychological
satisfaction and enormous profit. The industrial units are identified as units of high growth,

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medium growth and low growth industries and as such we have “Growth Entrepreneur” and
“Super-Growth Entrepreneur.”
Growth Entrepreneur:
Growth entrepreneurs are those who necessarily take up a high growth industry, which has
substantial growth prospects.
Super-Growth Entrepreneur:
Super-growth entrepreneurs are those who have shown enormous growth of performance in their
venture. The growth performance is identified by the liquidity of funds, profitability and gearing.
V. According to the Entrepreneur and Stages of Development
Entrepreneurs may also be classified as the first generation entrepreneur, modern entrepreneur
and classical entrepreneur depending upon the stage of development.
They are explained below:
First-Generation Entrepreneur:
A first-generation entrepreneur is one who starts an. industrial unit by innovative skill. He is
essentially an innovator, combining different technologies to produce a marketable product or
service. .
Modern Entrepreneur:
A modern entrepreneur is one who undertakes those ventures, which go well along with the
changing demand in the market. They undertake those ventures, which suit the current marketing
needs.
Classical Entrepreneur:
A classical entrepreneur is one who is concerned with the customers and marketing needs
through the development of a self-supporting venture. He is a stereotype entrepreneur whose aim
is to maximise his economic returns at a level consistent with the survival of the firm with or
without an element of growth.
VI. Others
Innovating entrepreneurship is characterized by aggressive assemblage in information and
analysis of results, deriving from a novel combination of factors. Men / women in this group
are generally aggressive in experimentation who exhibit cleverness in putting attractive
possibilities into practice. One need not invent but convert even old established products or
services by changing their utility, their value, and their economic characteristics into something
new, attractive and utilitarian. Therein lies the key to their phenomenal success. Such an
entrepreneur is one who sees the opportunity for introducing a new technique of production
process or a new commodity or a new market or a new service or even the reorganization of an
existing enterprise.

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 DIFFERENCE BETWEEN AN ENTREPRENEUR AND AN INTRAPRENEUR

PARAMETER ENTREPRENEUR INTRAPRENEUR

Achievement motivation He exhibits higher need He may not have high need for
for achievement achievement
Activity Direct involvement Direct involvement more than
delegation

Decisions Follows dream with decisions Able to get others to agree to help
achieve dream

Failure and mistakes Deals with mistakes and failures Attempts to hide risky projects from
view until ready

Family history Entrepreneurial small business, Entrepreneurial small business,

professional, or farm background professional, or farm background

Freedom in decision He is independent in operation He depends on the organization to

making implement his ideas
Limitation He does not have any boundary for He has to operate within the
operations organisational policies and employer’s
commands
Primary motives Independence, opportunity to create, Independence and ability to advance in
and money the corporate and rewards

Qualification He may not have formal qualification
Relationship with others Transactions and deal making as
basic relationship
He should have some professional or
technical qualifications to enter and
work in the organisation. He needs
further to update his qualification for
promotions
Transaction within hierarchy

Reward Profit is the reward to his successful Promotion &incentives are the reward
achievements for accomplishing certain goals

Risk bearing He bears all the risk involved in an He does not bear all the risks
enterprise

Status Entrepreneur is an employer(boss) Intrapreneur is an employee (with some

freedom)
Social image Not concerned about status symbols Not concerned about traditional status
symbols desires independence

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 Time orientation Survival and achieving 5 to 10 years Between entrepreneurial and traditional
growth of business managers.

Who serves Self and customers Self , customers , and sponsors

1.2 COMPETENCIES AND TRAITS OF AN ENTREPRENEUR;

PERSONAL CHARACTERISTICS OF AN ENTREPRENEUR

Let us examine our personal characteristics, values, and beliefs to know ourselves whether
we have the mindset that's typical of successful entrepreneurs?
1.Optimism:
Are we thinking optimistic ?
Optimism is truly an asset, and it will help us get through the tough times that many
entrepreneurs as they find a business model that works for them.
2. Vision:
Can we easily see where things can be improved? Can we quickly grasp the "big picture,"
and explain this to others?
Can you create a compelling vision of the future, and then inspire other people to engage
with that vision?
3.Initiative:
Do we have initiative, and instinctively start problem-solving or improve the situations?
4. Desire for Control:
Do we enjoy being in charge and making decisions?
Are we motivated to lead others?
5.Drive and Persistence:
Are we self-motivated and energetic?
Are we prepared to work hard, for a very long time, to realize our goals?
6. Risk Tolerance:
Are you able to take risks, and make decisions when facts are uncertain?
7. Resilience:
Are we resilient(flexible), so that we can pick ourselves up when things don't go as planned?

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Do we learn and grow from our mistakes and failures?

INTERPERSONAL SKILLS TO BE POSSESSED

To be successful we 'll have to work closely with people ,very critical to be able to build
great relationships with our team, customers, suppliers, shareholders, investors, and more.
Some people are more gifted in this area than others, but everyonek can learn and improve these
skills. The types of interpersonal skills we'll need include:
1. Leadership and Motivation:
Can we lead and motivate others to follow us and deliver our vision?
Are you able to delegate work to others?
As a successful entrepreneur, we'll have to depend on others to get beyond a very early stage in
our business (there's just too much to do all on our own!)
2. Communication Skills:
Are we competent with all types of communication?
We need to be able to communicate well to sell our vision of the future to investors, potential
clients, team members, and more.
3. Listening:
Do we hear what others are telling us?
Our ability to listen can make or break us as an entrepreneur. Make sure that we are skilled at
active listening and empathetic listening.
4.Personal Relations:
Are we emotionally intelligent?
The higher the EI, the easier it will be for us to work with others. We can improve our
emotional intelligence!
5. Negotiation:
Are we good at negotiation?
We need to negotiate keen prices, to be able to resolve differences between people in a positive,
mutually beneficial way.
6. Ethics:
Do we deal with people based on respect, integrity, fairness, and truthfulness?

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Can we lead ethically? we'll find it hard to build a happy, committed team if we deal with people
(staff, customers or suppliers ) in a shabby way.
Successful entrepreneurs have the following qualities:
1) Inner drive to succeed: Entrepreneurs are driven to succeed and expand their business.
They see the bigger picture and are often very ambitious. Entrepreneurs set massive goals
for themselves and stay committed to achieve them regardless of the obstacles that get in
the way.
2) Strong belief in themselves: Successful entrepreneurs have a healthy opinion of
themselves and often have a strong and assertive personality. They are focused and
determined to achieve their goals and believe completely in their ability to achieve them.
Their self-optimism can often been seen by others as flamboyance or arrogance but
entrepreneurs are just too focused to spend too much time thinking about unconstructive
criticism.
3) Search for new ideas and innovation: All entrepreneurs have a passionate desire to do
things better and to improve their products or service. They are constantly looking for
ways to improve. They are creative, innovative, and resourceful.
4) Openness to change: If something is not working for them they simply change.
Entrepreneurs know the importance of keeping on top of their industry and the only way
to being number one is to evolve and change with the time. They are up-to-date with the
latest technology or service techniques and are always ready to change if they see a new
opportunity arise.
5) Competitive by nature: Successful entrepreneurs thrive on competition. The only way to
reach their goals and live upto their self-imposed high standard is to compete with other
successful business.
6) Risk taker: Pursues the dream without all the resources lined up at the start and
distributes the risk over a network of capabilities.
7) Highly motivated and energetic: Entrepreneurs are always on the move, full of energy
and highly motivated. They are driven to succeed and have an abundance of self-
motivation. The high standards and ambition of many entrepreneurs demand that they
have to be motivated.
8) Accepting of constructive criticism and rejection: Innovative entrepreneurs are often at
the forefront of their industry so they hear the words “it cannot be done” quite a bit. They
re-adjust their path if the criticism is constructive and useful to their overall plan,
otherwise they will simply disregard the comments as pessimism. Also, the best
entrepreneurs know that rejection and obstacles are a part of any leading business and
they deal with them appropriately.
9) Time management : One should schedule his day and stick to that schedule. This cannot
be emphasized enough need to realize thayt every minute is valuable. When first starting
out, most likely one will not have enough “work” to fill an eight hour day. This does not

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 mean that they have time to take a three hour lunch with friends. They should utilize this
time to learn more skills related to their business, find ways to advertise and contact
potential clients.
10) Vision and leadership: Many entrepreneurs go beyond focusing on objectives relating to
task performance (i.e., carrying out specific tasks).Instead they focus on vision, what they
want to achieve, and what their business can become.The lead entrepreneur would
employ, amongst others, communication skills to communicate this vision clearly to
employees and others, as this can greatly help the growth of new ventures. If the whole
team is working towards a shared vision, that vision can be reached.
11) Ethics and Morals: Ethics and Morals are the foundation of every good entrepreneur.
Early on one must decide what they and their business will stand for and what lines they
will refuse to cross. Many entrepreneurs close their doors because the dollar outshines
their morals. If one stray too far from their morals they will give themselves and their
business a bad name. No one wants to do business with someone who will not stand up
for their own morals.
12) Discipline yourself: According to Thomas Huxley, “Do what you should do, when you
should do it, whether you like it or not”. Self-discipline is the key to success. The
strength of will to force yourself to pay the price of success, doing what others do not like
to do, going the extra mile, fighting and winning the lonely battle with yourself.

Characteristics of an entrepreneur:

An entrepreneur is a person who initiates a business venture. there are some essential feature of
an entrepreneur which are describe below.

·         Risk taking capability: every business has risk of time money etc .so an entrepreneur
must have the risk taking capability.

·         Creativity and innovation: an entrepreneur has an initiator possesses creativity and

innovative power.

·         Need for achievement: the entrepreneur has strong desire to achieve the goal of business.
he is always driven by the needs for achievement.

·         Need for autonomy: an entrepreneur does not like to be under anybody. it is the need for
autonomy which drives a person to be an entrepreneur.

·         Internal locus of control: an entrepreneur believes in him his work.

·         External locus of control: he also believes in fate for ultimate result.

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·         Self confident: an entrepreneur has confidence in him.

·         Leadership capability: an entrepreneur must have leadership capability to lead works

under him

·         Industriousness: a successful entrepreneur must have leadership capability to lead

workers working under him.

·         Decision making capability: the entrepreneur has capability to take quick decision

·         Adaptability: he has the capacity to adapt with any kind of situation that arise in the
enterprise

·         Foresightness: The entrepreneurs have a good foresight to know about future business

environment.

·         Others; the other feature are dynamism, ambition, education and training, long term
involvement, future orientation.

Qualities of successful entrepreneur:

To become a successful as an entrepreneur in its business life, a businessman should possess a

quite a number of essential qualities. Those are noted below:

1.      Moderate risk taking: an entrepreneur always takes calculated risk to operate the
organization

2.      Hard work: an entrepreneur is very much hard worker, he or she always busy with various
types work.

3.      Accountability: a successful entrepreneur is accountable well as his associates always

accountable to him.

4.      Educated in real sense: successful entrepreneur is educated In real sense .he tries to

implement his organizational objectives through his education.

5.      Analytical mind: a successful entrepreneur is analytical minded. he scrutinizes every

activity on the organization.

6.      Dynamic leadership: a successful entrepreneur is always dynamic to operate the

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organization

7.      Presence of mind: a successful entrepreneur is always at present of mind he is always

aware of activities that to happening in the organization and around him

8.      Accommodative: a good entrepreneur has the capacity to make his own place at every
sector

9.      Courageous and tactful: Corsages and techniques is very much essential for a successful
entrepreneur

10.  Maker of right decision: A successful entrepreneur makes right decision in right time in
right place

11.  Foresighted: a successful entrepreneur foresights the future and take decision accordingly

12.  Right perception of things: A successful entrepreneur things in a right way

13.  Enjoy simple life: A successful entrepreneur always deals a simple life a general people of
the society

14.  Strong desired to success: A successful entrepreneur have a strong desire to success. he is

driven by the desire to success

15.   Innovation: innovation is the process of making new something. A successful entrepreneur

is innovative

16.  Self confidence: A successful entrepreneur is self confidence. does not really on other for
decision or fate

17.  Goal setting: a successful entrepreneur set the goal

18.  Keen observation: A successful entrepreneur always observes the origination

19.  Sociable: A successful entrepreneur is sociable person

20.  Loves to work; A successful entrepreneur is very much addicted to work

21.  Loves new ideas: A successful entrepreneur loves new ides of the organization

22.  Team builder: A successful entrepreneur builds a suitable team

23.  Clean understanding: A successful entrepreneur clearly understands every things

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24.  Ability to conceptualize: A successful entrepreneur is able to conceptualize the reality

25.  other: the other qualities are patience, optimistic ,strategist, etc

ENTREPRENEURIAL CAREERS AND EDUCATION

 Entrepreneurs start new businesses and take on the risk and rewards of being an
owner. This is the ultimate career in capitalism ; putting the idea to work in a
competitive economy. Some new ventures generate enormous wealth for the
entrepreneur.
 There are many industries where wealth creation is possible, be it the internet and
IT , personal services, media, engineering, or small local business.
 Choosing entrepreneurial career is like choosing a life partner. The person has to
be here in the job forever and may have to continue in that chosen line for
generations to generation and grows in this process if it is matching; if it
mismatches it goes the other way round.
 The lack of opportunities in the formal sectors has driven many young to establish
their own small entrepreneurial ventures. This is the sector which is growing the
fastest today. The big money in the long-run and the freedom to choose their own
future are, major guiding factors. Today, the scope and variety of self-generated
work is unlimited.

Factors Favoring Entrepreneurship as a Career Option

Some of the prominent factors that attract individuals towards entrepreneurship as a career
option are:
1) High need for independence: There are personalities who would like to have freedom
about: with whom to work, when to work, with whom to do business at what terms,etc. it
is this instinct in them that pushes such personalities to start something of their own.
2) To satisfy the dreams of having high financial rewards: To satisfy the need to derive
high financial rewards as an outcome of efforts leads some to start a business of their
own. The fundamental difference between job and own venture lies in the degree of
financial rewards for the efforts to put in to achieve organizational goals.
3) Opportunity to deal with all aspects of a business: No job can provide a opportunity to
learn and deal effectively with a wide spectrum of business Activities starting from idea
generation, conceptualization, design, creation, marketing to customer response and
customer satisfaction.
4) Achievement orientation: Such a person is ambitious and hard-working and wants to
prosper quickly. They feel that their skills and talents cannot be fully utilized in the
present job. The high achievers go in for independent business.
5) Implementation of ideas: A person may become an entrepreneur to put their plan for a
product into practice. They may find that an existing product or services is in short
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 supply, and feels that they can fill the gap. They may believe that they can supply better
products or services than those offered by existing business concerns, and so may start a
business unit of their own.
6) Insecurity of job: A person may become an entrepreneur because they do not feel secure
in their present job or they may believe that the employer is likely to wind-up the
business.
7) Family business: If a young graduate or diploma-holder has the background of a
business family,they may think of setting-up his own business after some training and
experience.
8) Risk-Taking: One, who is in habit of avoiding risk, can never become an entrepreneur.
The chief characteristic of a successful businessman is his willingness to take risks. Of
course, the nature of risk varies from business-to-business, and should be calculated in
advance. The risk-taking spirit of a man often influences him to become an entrepreneur.
9) Government Economic Policy: A person may decide to start a new enterprise if they
feels that the infrastructural facilities and financial assistance provided by the state are
more alluring than well-paid white-collar jobs.
10) Vision to leave a long lasting mark: Entrepreneurship creates an opportunity to make
definite contribution to the society by lifting the people in and around the venture. A
continous zeal to innovate helps in touching the heads and hearts of people at large. A
strong urge from within to start a business, combined with workable innovative ideas ,
careful planning, and hard work can lead to a very engaging ,self-satisfying, enjoyable
and profitable endeavor. The greatest contributory factor to entrepreneurship is an
intention, i.e., a strong purpose in life coupled with determination to produce desired
results.

I.7 Entrepreneur and the economic growth of the country

The entrepreneur who is a business leader looks for ideas and puts them into effect in fostering
economic growth and development. Entrepreneurship is one of the most important input in the
economic development of a country. The entrepreneur acts as a trigger head to give spark to
economic activities by his entrepreneurial decisions. He plays a pivotal role not only in the
development of industrial sector of a country but also in the development of farm and service
sector. The major roles played by an entrepreneur in the economic development of an economy
is discussed in a systematic and orderly manner as follows.
(1) Promotes Capital Formation:
Entrepreneurs promote capital formation by mobilising the idle savings of public. They employ
their own as well as borrowed resources for setting up their enterprises. Such type of
entrepreneurial activities lead to value addition and creation of wealth, which is very essential for
the industrial and economic development of the country.
(2) Creates Large-Scale Employment Opportunities:
Entrepreneurs provide immediate large-scale employment to the unemployed which is a chronic
problem of underdeveloped nations. With the setting up.of more and more units by
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entrepreneurs, both on small and large-scale numerous job opportunities are created for others.
As time passes, these enterprises grow, providing direct and indirect employment opportunities
to many more. In this way, entrepreneurs play an effective role in reducing the problem of
unemployment in the country which in turn clears the path towards economic development of the
nation.
(3) Promotes Balanced Regional Development:
Entrepreneurs help to remove regional disparities through setting up of industries in less
developed and backward areas. The growth of industries and business in these areas lead to a
large number of public benefits like road transport, health, education, entertainment, etc. Setting
up of more industries lead to more development of backward regions and thereby promotes
balanced regional development.

(4) Reduces Concentration of Economic Power:

Economic power is the natural outcome of industrial and business activity. Industrial
development normally lead to concentration of economic power in the hands of a few individuals
which results in the growth of monopolies. In order to redress this problem a large number of
entrepreneurs need to be developed, which will help reduce the concentration of economic power
amongst the population.
(5) Wealth Creation and Distribution:
It stimulates equitable redistribution of wealth and income in the interest of the country to more
people and geographic areas, thus giving benefit to larger sections of the society. Entrepreneurial
activities also generate more activities and give a multiplier effect in the economy.
(6) Increasing Gross National Product and Per Capita Income:
Entrepreneurs are always on the lookout for opportunities. They explore and exploit
opportunities,, encourage effective resource mobilisation of capital and skill, bring in new
products and services and develops markets for growth of the economy. In this way, they help
increasing gross national product as well as per capita income of the people in a country.
Increase in gross national product and per capita income of the people in a country, is a sign of
economic growth.
(7) Improvement in the Standard of Living:
Increase in the standard of living of the people is a characteristic feature of economic
development of the country. Entrepreneurs play a key role in increasing the standard of living of
the people by adopting latest innovations in the production of wide variety of goods and services
in large scale that too at a lower cost. This enables the people to avail better quality goods at
lower prices which results in the improvement of their standard of living.
(8) Promotes Country's Export Trade:
Entrepreneurs help in promoting a country's export-trade, which is an important ingredient of
economic development. They produce goods and services in large scale for the purpose earning
huge amount of foreign exchange from export in order to combat the import dues requirement.

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Hence import substitution and export promotion ensure economic independence and
development.
(9) Induces Backward and Forward Linkages:
Entrepreneurs like to work in an environment of change and try to maximise profits by
innovation. When an enterprise is established in accordance with the changing technology, it
induces backward and forward linkages which stimulate the process of economic development in
the country.
(10) Facilitates Overall Development:
Entrepreneurs act as catalytic agent for change which results in chain reaction. Once an
enterprise is established, the process of industrialisation is set in motion. This unit will generate
demand for various types of units required by it and there will be so many other units which
require the output of this unit. This leads to overall development of an area due to increase in
demand and setting up of more and more units. In this way, the entrepreneurs multiply their
entrepreneurial activities, thus creating an environment of enthusiasm and conveying an impetus
for overall development of the area.

UNIT II

ENTREPRENEURIAL ENVIRONMENT

Environment plays a crucial role in setting up of an enterprise because of the influence of various
environmental factors as described below.

 Developmental and institutional factors: The encouragement and guidance of various

governmental and non-governmental institutions plays a vital role in the setting up of an
enterprise.
 Economic Factors: The vital economic factors like demand and supply will determine
the size of the enterprize. The health of the economy will also determine the various means
of financing the business.
 Financial Factors: The fnnds required for starting up an enterprise depends on the
availability financial institutions and other sources of funding and the policies followed by
them.
 Social and cultural factors: Evaluating the social and cultural factors plays a vital role
and requires that the enterprise is compatible with the needs of the population living in a
specific region.
 Legal factors: Starting an enterprise involves fulfilment of various legal requirements.
Thus these factors have a crucial role in setting up of an enterprise.
 Political Factors: Various govermental policies prevailing in the society will affect the
setting up of the enterprise. Thus political factors needs consideration for setting up of an
enterprise.

Factors of Entrepreneurship development:

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 • Political
• Government policies
• Political stability
• Growth of entrepreneurship
• Social and cultural
• Joint family system-close bandage, guidance from elders, value of sharing
• Joint ownership, capital, decision making
• Economic
• financial background
• Current income status
• Standard of living
• aspirations
• Legal
• Laws under various acts
• Technological
• Knowledge about the new technologies
• predicting the lifecycle of the technology
• Govt policies and incentives
• Liberal tax and duty exemptions
• New schemes
• Venture capital support

     (A)   Personal factors 

1. ·        Ability to cope with the situation
2. ·        Age
3. ·        Education
4. ·        Personality
5. ·        Intrapersonal communication ability
6. ·        Achievement motivation
7. ·        Self-confidence
8. ·        Competence
9. ·        Emotion
10. ·        Understanding capacity

    (B)  Environmental factors 

         1.  Socio-cultural factors 
 ·        Religion
 ·        Values

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 ·        Rural-urban orientation
 ·        Marginality
 ·        Education
 ·        Tradition

       2. Political and legal factors 

 ·        Govt. legal bindings
 ·        Govt. policies
 ·        Rules and laws related to the industry and business
  

    (C)  Institutional factors:

1. ·        Financial institution
2. ·        Training and development institution
3. ·        Consulting firms
4. ·        Incubators organization (old & pioneer)
5. ·        Research organization

     (D) Micro factors 

1. ·        Enterprise itself
2. ·        Suppliers
3. ·        Intermediaries
4. ·        Customers
5. ·        Competitors
6. ·        Public
(E) Macro factors: 
1. ·       Demographic factors
2. ·        Economic factors
3. ·        Physical factors
4. ·        Technological factors
5. ·        Cultural/social factors

     (F) Others:
1. ·        Venture capital
2. ·        Experience entrepreneurs
3. ·        Technically skilled labor force

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4. ·        Supplier’s accessibility
5. ·        Proximity to universities
6. ·        Availability of land facilities
7. ·        Accessibility of transportation
8. ·        Favorable loan and financial policies
9. ·        Decepted population
10. ·        Availability of supportive
11. ·        Attractive living condition
12. ·        Capital intensiveness
13. ·        Research and development activities
14. ·        Capital incentive ness
15. ·        Proximity to corporate head quarters
16. ·        Competitive situation

ENTREPRENE UR’ S BACKGR OU ND & CHARACTERISTICS

1. Family Environment – In most cases, people follow the footstep of father. A businessman’s
son takes up business and a salaried person’s son tries to find a job. So, if a family has had a
tradition of entrepreneurship, later generations also follow the step of their ancestors, like the
Gujaraties and Marwaries. Conversely, if a family has had a bad experience with
entrepreneurship, it is unlikely that next generation will be very entrepreneurial.
2. Education – Education has no correlation with entrepreneurial spirit. If at all there is one, it
seems to be inverse. Most of the entrepreneurs come from low education background. Educated
people who get decent job rarely prefer comfort of salaried job. It is only those who are unable to
find a living for themselves eventually try their hands at new business. For long long years, due
to problems of licence, quota and inspector raj, most educated people preferred govt job, for it
symbolized power, comfort, social status and for the people with low scruples, money too.
However, trend is slowly changing. With business environment becoming easier and govt
officials’ powers being on the wane, many educated people are also beginning to venture into
entrepreneurship
3. Age – There are people who start as early as probably 10 and some others after their
retirement. Harland David Sanders, better known as Colonel Sanders (not a Army Colonel but an
honorary one) started his famous Kentucky Fried Chicken business quite late in his varied career.
But commonly, men are often in the age group of 25 – 35 and women in the age group of 30– 45.
4. Physical Attributes – Have absolutely no correlation with entrepreneurial spirit.
5. Marital Status – No direct correlation but going by the age group, most entrepreneurs are
married.

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6. Working History – Entrepreneurs quite often have some working experience as a salaried
employee in the field of their venture. It always helps to learn a little about business before
putting your money in. Sindhi community follows this practice assiduously.
7. Family Contacts – Family contacts in business world reduce the risks and help the
entrepreneur.
8. Professional Contacts – Professional contacts again help. IIT and IIM graduates venturing into
entrepreneurship often get help from their peer and seniors.
9. Personal values
10. Lifestyle – Most entrepreneurs are fond of good things in life but are willing to wait till they
strike rich. In the interim they are willing to rough it out.
Business Environment& Entrepreneurship Environment
(a) Political – System, Stability, Leadership
(b) Socio– cultural – Culture, Community, Values, Ethics, Attitude
(c) Technological – Education, Absorption, Competition, Innovation
(d) Legal – Regulatory framework, Consumer protection, Concern for environment, Labour laws
(e) Economic – GDP, GNP, Resources, Fiscal, Non– fiscal policies, Incentives and Subsidies

OUTLINE OF A B USI NESS PLAN

1. Introductory page
(a) Name and address of the venture
(b) Names and addresses of the principals
(c) Nature of business
(d) Statement of financing needed
(e) Statement of confidentiality of the report
2. Executive Summary
3. Industry Analysis
(a) Future outlook and trends
(b) Analysis of competitors
(c) Market segmentation
(d) Industry forecasts
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4. Description of Venture
(a) Product(s)/Service(s)
(b) Size of business
(c) Office equipment and personnel
(d) Background of entrepreneurs
5. Production Plan or Operations Plan
(a) Manufacturing process (amount subcontracted)
(b) Physical plant
(c) Machinery and equipment
(d) Names of suppliers of raw materials
6. Marketing Plan
(a) Pricing
(b) Distribution
(c) Promotion
(d) Product forecasts Mgmt study material created/ compiled by - Commander RK Singh
(e) Controls
(f) e– initiatives
7. Organizational Plan
(a) Form of ownership
(b) Identification of partners or principal shareholders
(c) Authority of principals
(d) Management– team background
(e) Roles and responsibilities of members of organization
8. Assessment of Risk
(a) Evaluation of weaknesses of business
(b) New technologies
(c) Contingencies plans
9. Financial Plan

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(a) Pro forma income plan
(b) Cash flow projections
(c) Pro forma balance sheet
(d) Break– even analysis
(e) Sources and applications of funds
10. Appendices (contains backup material)
(a) Resumes of principals
(b) Letters
(c) Market research data and survey results
(d) Leases or contracts
(e) Price lists from suppliers
(f) Facility layout
(g) Draft marketing brochure with or without pricing
(h) Structure of e– marketing thrusts, if any
2.2. Sources and Criteria for Selection of Product
There are various aspects relating to the decision on Product Choice:
 Look up for all possible trade publications and secondary data.
 Consult with specialists/ resource persons from MSME-DIs, SSIDC, CSIR, NRDC, DoIs, APCTT
etc. Extensive use of Internet is also suggested.
 Undertake a market survey for the proposed product/services proposed to be
manufactured/ service rendered.
 Assess technology sources, raw materials availability, suppliers of required machinery &
equipments. Total investment required for the project, promoter's contribution need to be
estimated. Analyse your personal strengths and weaknesses are other considerations.
 Assess your capacity to invest from own sources and resourcefulness to offer collateral
security.
Since making a choice of the right product is a difficult decision for an entrepreneur, there are
many organizations and Institutes existing at both the Central and State level which can help

22
him/her obtain an idea about the products and services that can be produced. List of some of
the important organizations are:-

District Industries Centres (DICs)

These were set up with a view to provide all sorts of assistance to the entrepreneurs under the
single roof for the health growth of industry sector. These are set up by different States.
Technical Consultancy Organizations
All India Financial Institutions in collaboration with state level financial/development
institutions and commercial banks established a network of Technical Consultancy
Organizations (TCOs) to cater to the consultancy needs of the small and medium industries and
new entrepreneurs. Industrial & Technical Consultancy Organization of Tamil Nadu Ltd. (ITCOT)
MSME Development Institutes (MSME-DIs)
The entrepreneurs are assisted in many areas – Identification/Selection of products of
manufacture; selection of appropriate technology; manufacturing process and technique;
selection of suitable plant & machinery; market potential information. MSME Development
Institute, Chennai
Khadi and Village Industries Commission
The KVIC is charged with the planning, promotion, organization and implementation of
programs for the development of Khadi and other village industries in the rural areas in co-
ordination with other agencies engaged in rural development wherever necessary. Its functions
also comprise building up of a reserve of raw materials and implements for supply to producers,
creation of common service facilities for processing of raw materials as semi-finished goods and
provisions of facilities for marketing of KVI products apart from organization of training of
artisans engaged in these industries and encouragement of co-operative efforts amongst them.
State Government (Directorate/Commissionerate of Industries)
 Director of Industries & Commerce, Government of Tamil Nadu
 Director of Industries, Government of Pondicherry
Financial Institutions:
 Commercial banks

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  Industrial Development Bank of India - IDBI
 Institutional Finance Corporation of India- IFCI
 Industrial Credit And Investment Corporation of India -ICICI
 Life Insurance Corporation of India-LIC
 Unit Trust of India- UTI
 State Finance Corporations-SFCs
 Small Industries Development Bank of India -SIDBI
 Export And Import Bank of India - EXIM BANK
Support Institutions
 NSIC
 SIDO
 SIDCO
 NSDC

International Business

In the post independence era, more than half-century Indian entrepreneurs concentrated on
domestic operations and a surplus production was exported. The physical movement of goods,
called EXPORT cannot represent International business. International business is defined as “any
commercial transaction-taking place across the boundary lines of a sovereign entity”. It may take
place either between countries or companies or both. Private companies involve themselves in
such transactions for revenue, profit and prosperity. If governments are involved, they need to
maintain their image, dependency and economic growth. Sometimes economic ties are
strengthened through such transactions. These transactions include investments, physical
movements of goods and services, transfer of technology and manufacturing. Today every
company, whether small or large, single entity or partnership, joint stock or government owned,
is determined to expand internationally. Earlier the slogan “export or perish” has now become
“internationalize or perish”.

24
International business has a wide spectrum of activities beyond mere exports. Currently Indian
corporate acquire and takeover companies elsewhere. They invest a huge sum to find a right
location for cost-effective production base. They are on the lookout for right joint-venture
partners. Hence International business operations extend their dimensions. The future success of
company will depend upon its operations in many other countries through investment,
manufacturing and marketing and not only on the revenue generated indigenously. In the same
way nations success will depend on the businessman operating successfully in other countries
and establishing their credentials there. In the 1950’s and 60’s, companies form United States
built business operations throughout the world and brought image to the nation. In 1970’s and
80’s, Japanese electronics and automobile companies made great revolution everywhere in the
world. Why should we study International business? Three decades ago very few companies
ventured in to international arena, and most of them restricted themselves to physical movement
of goods and services i.e. exports and imports. Restrictions, regulations and other barriers
prevented them to take risks. Today, the whole world is open. Duties, license quotas and other
investment limitations have gradually been eliminated. Anyone can do business in any part of the
world. Risk factors are properly analyzed and evaluated and information about them is abundant.
The aspiring international businessman can go to anywhere and explore opportunities. In such a
situation few key factors like finance flow or investment is a great force. To manage business
internationally the right human resource is necessary and to manufacture goods, right technology
is a pre-requisite. There should also be sizeable market to generate revenue. To manufacture
goods in any country, raw material, components, consumables and capital items are required.
Easy access to all the above is as easy as domestic procurement today. Hence scope of
international business is widened.
UNITIII
Business Plan Guidelines

1. Executive summary
· What is the nature of your business
· What products will be offered
· Who will be your target market
· Is this a new or existing business
25
· If an existing business, how long has it been in
operation for
· Where will the business be based
· What is the Shareholding and Management structure of
the business
· What are the short & long term goals of the business
· What is the owners cash contribution towards this
business going to be
· What is the ideal funding requirement from the bank
(how much are you looking to borrow)
· What security will you be offering for the loan
2. Business Description
· Under what legal entity is the business going to be
trading under, and has this entity been registered
· What sector does the business fall into (wholesale,
retail, food, service, etc..)
· Where is the business located (address)
· What sort of premises will the business be operating
from (shopping centre, warehouse, owners residence,
etc)
· Reason for choosing these particular premises
· What zoning is allocated to the business address
· Does the business address comply with the allocated
zoning
· Will a Lease Agreement be signed, if so, what are the
terms and conditions
· What is the monthly rentals payable
3. Industry
· What is the present state of the industry and how has it
faired over the last 5 years (growth/decline)
· What are the future prospects for the industry
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· What problems can you see
· How can these problems be overcome
4. Product Definition
· What is the product mix of the business
· Why would customers be attracted to your products
(quality, reliability, price, etc)
· What gives your product the competitive edge over
your rivals
5. Market Definition
· Who is your target market (age, income, etc)
· What growth patterns can you see emerging with
regard to the make-up and size of your market
(expansion geographically, new customers, etc)
6. Marketing Strategy
· Provide a clear indication as to what your marketing
strategy is going to be, over and above the involvement
from the Franchisor
7. Competition
· Identify and list the major competitors in your area (use
table below as guideline)
Name How long have they
been in business
Products / Services
provided
· What key success factors do the competitor
demonstrate
· Can you identify any weakness in the competitors
business operations
· What skills will be necessary in order to allow you to
have the competitive advantage in your area

27
8. Operations & Management
· Do you foresee any industry changes occurring that will
affect the way your business operates and how will
these changes impact your business
· Who are the key players in the organisational structure
of your business
· Give us a brief overview on the staffing requirement of
your business:
§ Management
§ Staff
9. Financial Components
· Existing business:
§ Latest available Audited Financial Statements
§ Updated Management Accounts
· New business:
§ Projected cashflow with a minimum term of 36
months (See attached spreadsheet)

PRODUCT/PROJECT I DENTIFICATI ON
Identifying the right product is the first step to success for any entrepreneur. Right kind of
product for which there is a unfulfilled demand will ensure minimum expenditure on sales
promotion as well as higher sale price.
Entrepreneurial success is about identifying human and social needs; overt, covert, apparent or
even dormant, and finding products to meet them. In order to identify the opportunities, it is
necessary to scan the customers’ environment for identifying the unfulfilled needs opportunities.
There are sometimes gaps between demand and supply (Apparent/Overt Demand) which can be
exploited by an entrepreneur. But such occasions are few and far in between. Such opportunities
do not last long. They are lapped up by the existing players before an entrepreneur can move in.
Entrepreneur’s opportunity lies in coming up with a better product or same/substitute product at
cheaper price.
But the better option for entrepreneurs is to scan the customers environment for identifying the
dormant/hidden demand. Take the case of Nirma washing powder. There was always a demand
for washing powder among the lower income segment of the society for the convenience it
offered compared to soaps. However, the demand was hidden behind the high cost of washing
28
powders available then. Nirma launched the washing power at low cost (even though the quality
was far inferior to Surf and other washing powders) and succeeded. Similarly, there was always
a demand for Hair Shampoo. But it was again hidden behind high cost of shampoo bottles which
were beyond the reach of middle and lower income group households. The strategy to launch Re
1 sachets brought the shampoo within purchasing power of relatively poor households. Today,
there is a hidden demand for liquid soap among the middle class homes which is hidden behind
the high cost (Rs 50 -75 for a 250 ml bottle) of liquid soap and dispensers. If some one can tap
this demand, there is a windfall waiting for him. But this exercise of product identification is
easier said than done and requires enormous amount of creativity and energy.–
Product Identification Process
• Idea Generation
• Search & Screen
• Evaluation
1. Idea Generation
Product Idea can be generated in a number of ways. They are as follows –
(a) Observations
(b) Foreign publications (import of ideas from products launched overseas)
(c) Brainstorming sessions
(d) Talking to various bodies like SISI, SIDC, The national small Industries Corp. Ltd. & The
National Institute for Enterpreneurship& Small Business Development
(e) Talking to large scale pvt/public co. can also generate ideas

NEW PRODUCT DEVELOPMENT AND VENTURE CREATION

2.1 Ideation to Concept development
For entrepreneurs, it is often easier to come up with a variety of ideas for new businesses and
more difficult to actually implement those concepts. A business concept is a bridge between an
idea and a business plan. It focuses one’s thinking so that the entrepreneur can identify the
specifics of his/her proposed venture. Converting an idea into a business concept requires
thinking about how the product or service will be sold and who will buy it, the benefits of the
product or service, how it is differentiated from similar ones, and methods of delivery.

29
Preparing a written concept statement helps unearth critical components of a venture and
begins research into key factors that may be more thoroughly addressed in a business plan. As
the business idea takes form as a concept statement, the entrepreneur can evaluate the
business more effectively for potential challenges and pitfalls.
A clear business concept also enables the founder to succinctly describe the precise nature of
the business to suppliers, customers, lenders, and resource team members; an important skill
for entrepreneurial success. For example, it is not sufficient to say “I want to start a
management consulting company.” This tells the listener little. Instead, one might say,
“I plan to start a management consulting company that provides strategic planning services to
mid-sized businesses in the Southeast.  Each consulting team, tailored to meet the unique
needs of the client, will provide assessment and planning services to help clients improve
efficiency and institute processes for innovation and change, resulting in cost reductions and
sales increases.”
This version tells the listener much more than the first statement and helps the potential client
visualize the business and its offerings.
When describing his/her business idea, the entrepreneur should answer the following
questions:
a. What is my product/service?
b. What does my product/service do?
c. How is it different or better than other products/services?
d. Who will buy the product/service?
e. Why will they buy the product/service?
f. How will the product/service be promoted and sold/offered?
g. Who are my competitors?
Often the business concept statement changes during feasibility testing and business planning
as the founder learns more about the market and potential profitability of the business.
Eventually, however, the entrepreneur should be able to accurately, clearly and succinctly
describe the essence of the business to others in two or three sentences.  In some cases, a
single sentence may do.

30
Once the business concept statement is clearly defined, the more detailed work of business
planning and implementation may begin.
Project selection process starts with the generation of a product idea. The project ideas can be
discovered from various internal and external sources. They may be
1. Knowledge of potential customer needs
2. Watching emerging trends in demand for certain products
3. Scope for producing substitute product
4. Going through certain professional magazines catering to specific interest like electronics,
computers etc.,
5. Success stories of known entrepreneurs or friends or relatives.
6. A new product introduced by the competitor.
2.3 market assessment
Demand forecasting
Demand refers to willingness and ability of customers to buy products or services. When we
consider this definition for all the potential customers having both willingness and ability to buy
a product it is termed as “total Market” There are number of techniques available for
forecasting demand.
 Survey Method
 Statistical method
 Leading indicator method

Market assessment is a detailed and objective evaluation of the potential of a new product,
new business idea or new investment. It is a comprehensive analysis of environment
forces, market trends, entry barriers, competition, risks, opportunities and the company's
resources and constraints.
Market assessment is a detailed and objective evaluation of the potential of a new product,
new business idea or new investment.
It is a comprehensive analysis of environment forces, market trends, entry barriers,
competition, risks, opportunities and the company’s resources and constraints. Whether you

31
are thinking of venturing into a new market or launching a new product, conducting a
marketing assessment is the crucial first step in determining if there is a need or a potential
customer base for your product.
A well executed market assessment will enable your company to decide where to use limited
resources and to go after markets and opportunities that will provide the best returns on
investments.
Failure to conduct proper market assessment could result in wastage of resources, missed
opportunities, poor returns on investments and even substantial financial losses which could be
detrimental to the future of your company.
An assessment of the market should be done in a systematic manner. The process can be
broken down into the following steps.
 understand market conditions.
Gather basic information about your intended market – size, competition, potential customers
and income levels. You will also need information about the business environment – political,
economic, social and technological.
 identify market risks and opportunities.
Gather more targeted information about potential risks or opportunities in the potential
market. Other information required includes data on market growth, trends, opportunities,
risks and key players in the market.
 need to analyse the overall picture.
You need to put together all the information you have collected and determine if your business
venture is still viable. Once you are confident that you should proceed with the venture, you
can start developing your marketing plan.

2.4 Feasibility Report

The entrepreneur might be having a very good business Idea. Successful implementation of the
idea into business activity involves a painstaking exercise.He/she has to study the market to
know whether the idea of products or services could be accepted by the market. For the
purpose, the entrepreneur has to determine the market demands of the intended

32
products/services and carry out exercises to find out the projected costs of the product or
services.The entrepreneur thus shall be able to know as to whether the venture is profitable or
not. This systematic exercise is known as a feasibility study and presented in the form of a
report known as Feasibility Report/Project Report. An entrepreneur may conceive a number of
ideas and identify many new business opportunities. In view of limited resources he may like to
give shape to most the profitable one. The feasibility studies shall help him/her to identify the
same.
The main objective of the feasibility studies is to provide information about investment
opportunities to the small & medium enterprises (SMEs). A typical feasibility study provides:
1. Comprehensive information for investment opportunity in a business.
2. Specific information regarding different business areas like, marketing, technical, industrial
information etc. for the existing entrepreneurs to improve their exiting setup.
3. Project investment information and financial projections to support viability of the business.
2.5 Project Profile /business Plan
General Guidelines for writing plan
As much as your plan represents your dream and is very important to you, it may not be as high
on the agendas of the people who read it. When you sit down to write your plan, think of who
will be reading it and put yourself into their shoes as much as possible. In most cases, the
people who will read your plan are going to be potential investors, bankers, and/or potential
partners. Your readers have likely seen dozens, and perhaps even hundreds, of plans. These
people do not often have a great deal of time, so prepare your plan accordingly. In general you
should:
 Write the plan yourself. Get help if you need it, but do not let your accountant, bookkeeper,
or other professional write your plan for you. You may let them help you with the financial
plan, for example, but you need to know your plan inside and out-and the best way to
ensure that is to write it yourself.
 Back up every claim you make with supporting evidence. Include surveys and detailed
market research as an addendum or appendix to your plan.
 Write clearly and to the point, keeping your prose to a minimum.

33
 Avoid hyperbole: don't overstate your case. Similarly, avoid unnecessary adjectives such as
"fantastic," "amazing," "astounding," "irresistible," and so on. Let the reader form his or her
own opinion.
 Ensure that your writing is error-free and edited for proper form and syntax.
PROCESSES INVOLVED (stage wise)
1. Deciding for Business
2. Analysis: Strengths/ Weakness
3. Training
4. Environmental Scanning
5. Product Selection
6. Market Survey
7. Ownership Form
8. Location
9. Technology
10. Machinery Equipment
11. Project Report
12. Finance
13. Provisional Registration
14. Arrange Technical Know-how
15. Power
16. Machinery Installation
17. Manpower Recruitment/Training
18. Raw Materials
19. Production
20. Marketing
21. Quality Assurance
22. Permanent Registration
23. Market Research
24. Monitoring

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35