INTERRNAL ASSIGNMENT NO-1

PAPER CODE: MBA 210

PAPER TITLE: ENTERPRISES AND SMALL BUSINESS MANAGEMENT

Question-1 Answer all these questions

(i) Define Entrepreneurship

ANS- Entrepreneurship is the act of creating a business or businesses while building and scaling
it to generate a profit.

However, as a basic entrepreneurship definition, it’s a bit limiting. The more modern
entrepreneurship definition is also about transforming the world by solving big problems. Like
initiating social change, creating an innovative product or presenting a new life-changing
solution.

What the entrepreneurship definition doesn’t tell you is that entrepreneurship is what people do
to take their career and dreams into their hands and lead it in the direction of their own choice.
It’s about building a life on your own terms. No bosses. No restricting schedules. And no one
holding you back. Entrepreneurs are able to take the first step into making the world a better
place, for everyone in it.

(ii) Write any two organizations name those are working for entrepreneurship development?

ANS- There are a vast number of organizations working for entrepreneurship development :-

1. Entrepreneurs' Organization

Entrepreneurs' Organization, came into being on 1987. The major membership benefits include a forum
for sharing and discussing challenges, help from a personal mentor, access to large-scale networking
events, options for healthcare, leadership building resources and more. It has also published the award -
winning Octane magazine since 2006.
2. Vistage

Vistage is committed to CEO and executive coaching, development of leadership and business
mentoring. Those who are interested in giving back can also become a CEO coach with Vistage. The
organization consists of more than 20,000 business leaders worldwide with a members -only online
network.

(iii) Write any two types of entreneurship competencies

ANS- 1. What are entrepreneurial competencies? Name any three.

Entrepreneurial competencies are the skills necessary for an entrepreneur to

 venture into an enterprise

 organize and manage an enterprise ably and competently
 realize the goal for which the enterprise is established
These competencies help and entrepreneur to successfully venture into an enterprise.

These can be broadly classified under the following categories.(Choose any three of the following
competencies)
 Behavioral competencies
i. Initiative
ii. Systematic planning
iii. Creativity and innovation
iv. Risk taking and Risk Management
v. Problem solving
vi. Persistence
vii. Quality performance
viii. Information management
ix. Persuation and influencing abilities

(Iv) What is Industrial sickness?

ANS - Meaning of Industrial Sickness:

The strength of the industrial sector, by and large, determines the
soundness of the economy.A developing economy like India cannot
afford the growing sickness in industries as it results in a colossal
wastage of physical, financial and human resources. In the presence of
the resource crunch, the industrial sickness becomes all the more an
alarming problem. Industrial sickness usually refers to a situation
when an industrial firm performs poorly, incurs losses for several
years and often defaults in its debt repayment obligations.
(V) Write any two functions of entrepreneurship motivation training?

ANS- The following points highlight the top five functions of an

entrepreneur.
Function # 1. Decision Making:

The primary task of an entrepreneur is to decide the policy of

production. An entrepreneur is to determine what to produce, how
much to produce, how to produce, where to produce, how to sell and’
so forth. Moreover, he is to decide the scale of production and the
proportion in which he combines the different factors he employs.
Function # 2. Management Control:

Earlier writers used to consider the management control one of the

chief functions of the entrepreneur. Management and control of the
business are conducted by the entrepreneur himself.

QUESTION -2 Discuss the various compositions of business plan.

ANS- Main Components of a Business Plan
A business plan can take many forms, depending on the venture. A
four-person management consulting firm may produce a leaner plan
focused on service expertise and industry experience compared to a
20-employee widget maker, which would also have to describe
products, manufacturing techniques, competitive forces and marketing
needs, among other details. But most plans will include the following
main sections:
Executive summary
This is your five-minute elevator pitch. It may include a table of
contents, company background, market opportunity, management
overviews, competitive advantages, and financial highlights. It’s
probably easiest to write the detailed sections first and then extract the
cream to create the executive summary. Try to keep it to just a couple
of pages.

Business description and structure

This is where you explain why you're in business and what you're
selling. If you sell products, describe your manufacturing process,
availability of materials, how you handle inventory and fulfillment, and
other operational details. If you provide services, describe them and
their value proposition to customers. Include other details such as
strategic relationships, administrative issues, intellectual property you
may own, expenses, and the legal structure of your company.

Market research and strategies

Spell out your market analysis and describe your marketing strategy,
including sales forecasts, deadlines and milestones, advertising,
public relations and how you stack up against your competition. If you
can’t produce a lot of data analysis, you can provide testimonials from
existing customers.

Management and personnel

Provide bios of your company executives and managers and explain
how their expertise will help you meet business goals. Investors need
to evaluate risk, and often, a management team with lots of
experience may lower perceived risk.
  Financial documents
This is where you provide the numbers that back up everything
you described in your organizational and marketing sections.
Include conservative projections of your profit and loss
statements, balance sheet, and your cash flow statements for
the next three years. These are forward-looking projections, not
your current accounting outputs.


Company Description
The next section that should appear in your business plan is a company description. It’s best to
include key information about your business, your goals and the customers you plan to serve.

Market Analysis
Ideally, your market analysis will show that you know the ins and outs of the industry and the
specific market you’re planning to enter. In that section, you’ll need to use data and statistics to
talk about where the market has been, where it’s expected to go and how your company will fit
into it. In addition, you’ll have to provide details about the consumers you’ll be marketing to,
such as their income levels.

Description of Management and Organization

Following your market analysis, your business plan will outline the way that your organization
will be set up. You’ll introduce your company managers and summarize their skills and primary
job responsibilities. If you want to, you can create a diagram that maps out your chain of
command.

Sales Strategy
How will you sell the products you’re building? That’s the most important question you’ll answer
when you discuss your sales strategy. It’s best to be as specific as possible. It’s a good idea to
throw in the number of sales reps you’re planning to hire and how you’ll go about finding them
and bringing them on board. You can also include sales targets.
Marketing Plan
In your business plan, it’s important to describe how you intend to get your products and
services in front of potential clients. That’s what marketing is all about. As you pinpoint the steps
you’re going to take to promote your products, you’ll need to mention the budget you’ll need to
implement your strategies.

Ans-3 What are the reasons of failure of industrial estate?

ANS- Causes of business failure

Failure is a topic most of us would rather avoid. But ignoring obvious (and
subtle) warning signs of business trouble is a surefire way to end up on the
wrong side of business survival statistics.

With this information as a backdrop, we’ve put together a list of 10 common

reasons businesses close their doors:

Failure to understand your market and customers.

We often ask our clients, “Where will you play and how will you win?”. In
short, it’s vital to understand your competitive marketspace and your
customers’ buying habits. Answering questions about who your customers
are and how much they’re willing to spend is a huge step in putting your best
foot forward.

Opening a business in an industry that isn’t profitable.

Sometimes, even the best ideas can’t be turned into a high-profit business.
It’s important to choose an industry where you can achieve sustained growth.
We all learned the dot-com lesson – to survive, you must have positive cash
flow. It takes more than a good idea and passion to stay in business.
Failure to understand and communicate what you are selling.
You must clearly define your value proposition. What is the value I am
providing to my customer? Once you understand it, ask yourself if you are
communicating it effectively. Does your market connect with what you are
saying?

Inadequate financing.
Businesses need cash flow to float them through the sales cycles and the
natural ebb and flow of business. Running the bank accounts dry is
responsible for a good portion of business failure. Cash is king, and many
quickly find that borrowing money from lenders can be difficult.

Reactive attitudes.
Failure to anticipate or react to competition, technology, or marketplace
changes can lead a business into the danger zone. Staying innovative and
aware will keep your business competitive.
Overdependence on a single customer.
If your biggest customer walked out the door and never returned, would your
organization be ok? If that answer is no, you might consider diversifying your
customer base a strategic objective in your strategic plan.

No customer strategy.
Be aware of how customers influence your business. Are you in touch with
them? Do you know what they like or dislike about you? Understanding your
customer forwards and backwards can play a big role in the development of
your strategy.
Not knowing when to say “No.”

To serve your customers well, you have to focus on quality, delivery, follow-
through, and follow-up. Going after all the business you can get drains your
cash and actually reduces overall profitability. Sometimes it’s okay to say no
to projects or business so you can focus on quality, not quantity.

Poor management.
Management of a business encompasses a number of activities: planning,
organizing, controlling, directing and communicating. The cardinal rule of
small business management is to know exactly where you stand at all times.
A common problem faced by successful companies is growing beyond
management resources or skills.

No planning.
As the saying goes, failing to plan is planning to fail. If you don’t know where
you are going, you will never get there. Having a comprehensive and
actionable strategy allows you to create engagement, alignment, and
ownership within your organization. It’s a clear roadmap that shows where
you’ve been, where you are, and where you’re going next.