ENTREPRENEURSHIP &

INNOVATION MANAGEMENT
INTERNAL ASSESSMENT-1

Q.1. Write answers for any two questions from below.

A. Discuss the schemes under DIC (District Industries Centre).

District Industries Centre (DIC) is a central sector scheme that primarily focuses on
promoting small village and cottage industries in a particular area. It has been established in
1978 and since then DICs have been established in various districts of India. Being
established at the district level, it provides all the necessary support and services to facilitate
entrepreneurs in setting up Micro. Small, and Medium Enterprises. District Industries Centre
has been established so that the industries can develop at a faster rate and an economy can be
revived. DICs help in identifying suitable schemes for the development of industrial clusters
and help them in preparing feasibility reports. It also provides facilities for procuring
machinery, equipment, and credit. 

Various schemes under District Industries Centres (DICs) are:

 Prime Minister’s Employment Guarantee Program (PMEGP): This centrally

sponsored scheme was launched in 2008 under the guidance of Micro, Small, and
Medium Enterprises (MSME). It aims to generate employment opportunities for educated
unemployed citizens in rural and urban areas. Khadi & Village Industries Commission
(KVIC) is the nodal agency for the implementation of this scheme. Under this scheme,
90-95% of the amount will be given by banks as loans with 5-10% of the project cost in
the industry, service, or business sector being the applicant’s share.
 District Industries Centre (DIC) Loan Scheme: This scheme is for both self-employed
and the small unit sector in towns and rural areas with a population of less than 1 lakh and
capital investment being less than Rs. 2 lakhs. These small units are identified by the
Small-Scale Industries Board and Village industries, handlooms, handicrafts, silk, and
coir industries.
 Seed Money Scheme: The target of this scheme is the self-employed who engage in
skilled wage employment or self-employment ventures. Soft loans are given as
institutional financial assistance. Project cost to avail loan facility under the seed money
scheme has been increased to Rs. 25 lakhs. For projects up to Rs. 10 lakhs, seed money
assistance of up to 15% of the project cost is offered. 
 District Awards Scheme: The state governments have started honoring the entrepreneurs
with awards at the district level to boost their spirits and celebrate their achievements and
successes. These entrepreneurs to be awarded are selected by the District Advisory
Committee formed at the district level. The District Awards Function is held on
Vishwakarma Jayanti Day which falls on varying dates every year. The award function
includes the display of the products by the entrepreneur for sale and exhibition along with
workshops and discussion about the same.
 Entrepreneurship Development Training Programme : To impart the training to the
educated unemployed people and encourage them to encourage self-employment ventures
or engage in skilled wage employment, this scheme was launched. raining programs
under the Entrepreneurship Development Training Programme are Entrepreneurship
Introductory Programme (Udyojakata Parichay Karyakram), Entrepreneurship
Development Training Programme (12 Day residential), and Technical Training
Programme (12 Days to 2 Months non-residential).

C. Describe Functions some of the major functions of KVIC?

Khadi and Village Industries Commission (KVIC) plans, promotes, organises, and
implements various programs for the development of Khadi and other related industries in the
rural areas and nationwide. KVIC helps in reserving the raw material for supplying it to the
producers. This commission focuses on the creation of common service facilities like
processing raw material or semi-finished goods, generating employment opportunities, etc.

The objectives of KVIC are to promote Khadi in rural areas, provide employment
opportunities to the people living in rural areas, produce saleable articles, create a feeling of
self-reliance amongst the poor, and build up a strong rural community. The main features of
the KVIC are: Loans that are offered by this commission are directed and governed by
PMEGP, where a loan amount for the manufacturing sector is Rs. 25 lakhs maximum and for
the business and service sector, it is Rs. 10 lakhs maximum. The repayment tenure for the
loan is 3 years to 7 years including 6 months of the moratorium period. Also, there is no
income capping to avail of the benefit of a loan.

The main functions of KVIC are to build up a reserve of raw materials and implement for
supply to producers, form a common service facility for processing raw materials that include
semi-finished goods, promote the sale and marketing of Khadi and Village Industries
products as well as handicrafts, promote the research in the village industries sector-related
production techniques and equipment, and provide financial assistance to individuals and
institutions for the development and hassle-free operation of Khadi Village industries.

Following are the schemes under the Khadi and Village Industries Commission:

 Prime Minister's Employment Generation Programme (PMEGP) : The reason for

launching this scheme is to create employment in rural and urban areas across the nation.
Under PMEGP, the beneficiaries are directed to invest their contribution of a specific
percentage of the project cost to avail of subsidy.
 Scheme of Fund for Regeneration of Traditional Industries (SFRUTI): The primary
object of this scheme is to organise the traditional artisans and industries into a single
group and make them competitive by providing long-term sustainability. The financial
support provided under this scheme shall be subject to a minimum of Rs. 8 crores.
 Interest Subsidy Eligibility Certificate (ISEC) : This is the major funding source for the
Khadi program and applicable to all registered institutions of KVIC. This scheme was
introduced to mobilize funds from banking institutions to bridge the gap in the actual fund
requirement and its availability from budgetary sources. In this, funding is provided at a
concessional rate of interest of 4% per annum for working capital purposes as per the
requirements.
 Market Promotion Development Assistance (MPDA): This scheme is launched to
furnish services like market promotion and development assistance for Khadi industries.
This scheme aims to guarantee increased earnings for artisans.

Q.2. Write short notes on all of the following topics?

A. What are Personnel?

Personnel refers to all individuals who are working in a particular organization. The word
'personnel' is most commonly employed in the field of business organization or human
resources. A personnel department manages all affairs related to individuals working in the
organization as they have to make sure a person must be properly recruited, interviewed,
hired, trained, instructed, and equipped to perform the activity for which he has been
appointed. If there will be any dissatisfaction between the company and its employee, then
the personnel department has to deal with such a problem and come up with an effective
solution.

B. Define Opportunity.

Opportunity in entrepreneurship refers to that situation where identifiable consumer demand

meets the feasibility of satisfying their needs and a requested product or service can be
developed. Opportunities are found through a deliberate search while developing new
technologies, whereas sometimes they emerge serendipitously through chance. An
entrepreneur can find an opportunity even in the darkest times of business operations.
Entrepreneurial opportunities are usually defined as situations where products and services
can be sold at a price greater than the cost of their production. An entrepreneurial
opportunity, thus, is a situation where entrepreneurs can take action to make a profit.

C. What is Market Orientation?

Market orientation is a philosophy in a business that focuses on identifying customer needs or

wants and strives hard to fulfil them. A company following the market orientation approach
focus on designing and selling goods and services that not only satisfies the customers but
also generates profits for a company. Market orientation is an opposite approach to product
orientation where the focus was on establishing selling points for existing goods rather than
trying to inculcate knowledge to your customers about the benefits of the products. However,
this market orientation approach lacks innovation, which is the only disadvantage.

D. What is Leadership?

Leadership in entrepreneurship is a mindset that focuses on turning any problem into

opportunities in an organization and creating economic and social value. The leaders are not
only risk managers but also experts at navigating uncertainty. Leadership means developing a
learning mentality and staying open to hearing new ideas with considering contrary points of
view. An Entrepreneurial leader solves problems collaboratively, value actions and are
outcomes-oriented, believe that things can be better, and tries to make an impact. Hence,
leadership involves organizing and motivating a group of people to achieve a common
objective through innovation, taking advantage of opportunities, and risk optimization.

E. Define Market Availabilty.

Market availability refers to the number of people both willing and capable of buying a
particular product or service in a defined market. In simpler terms, it means the market that is
accessible to the buyers. This component is used to measure the potential of a market. Market
availability is used by companies to concentrate their marketing and advertising in these
areas. It is also used to determine the places for putting up advertisements and retail shops in
which products can be stocked to attract potential consumers. It can also be used to measure
the size of the available market.

INTERNAL ASSESSMENT-2

Q.1. Write answers for any two questions from below.

A. Describe the growth of women entrepreneurs in India?

Women entrepreneurs are likely to be the greatest force in India's history of economic
growth. If women are part of the workforce, the country's economy can grow much faster.
According to McKinsey, giving women equal opportunity alone could reach $ 770 billion by
2025, or more than 18% of GDP. Women can contribute to the economy not only as job
seekers but also as job creators through the entrepreneurial spirit of space women that are
rapidly spreading throughout India. This key growth factor is the power of small
businesswomen to reach millions of customers using the Internet and digital media.

In India, the entry of women into the business world is a recent phenomenon. Women
entrepreneurship is being tracked as an extension of their kitchen activities. Indian women are
entering the business from both pull and push factors. The pull factor is a factor that
encourages women who have the urge to become self-employed to get a job or take on the
challenge. Push factors are factoring that force women to start a business to deal with
financial difficulties and responsibilities.

With increasing awareness of business and the spread of education among women, women
are beginning to evolve from housewives to entrepreneurs. They manufacture solar cookers
in Gujarat, a small foundry in Maharashtra, and a television condenser in Orissa undoubtedly
prove better than men when the opportunity arises (Moore and Buttner 1997).

Smt. Sumati Morarji (shipping company), Smt. Yamutai Kirloskar (Mahila Udyog Limited),
Smt. Neena MaUiotra (Exports), Kiran Majumdar Shaw (Biotechnology) Naina Lai Kidwai
(Banking), Jaswantiben Jamnadas Popat (Food), and Smt. Shahnaz Hussain (Beauty Clinic)
are some exemplary names of successful and accomplished women entrepreneurs in our
country.

Women have traditionally played an important role in small business development as owners,
managers, and workers. They dominate three important subsectors, constituting over 80
percent of the employees in textile, clothing, and leather production; 75 percent in food,
beverages, and tobacco production; and over 60 percent in wood and wood processing
(quoted by Bhargav (2007). Besides, they also act as microentrepreneurs and traders in
agribusiness.

In India, Kerala is a state with the highest literacy (including women literacy) reflecting a
congenial atmosphere for the emergence and development of women entrepreneurship in the
State. The financial, marketing, and training assistance provided by the State Government
also helped motivate women to assume entrepreneurial careers. Women`s desire to work at
their place of residence, the difficulty of getting jobs in the public and private sectors, and the
desire for social recognition also motivated women in Kerala for self-employment. Like
Kerala, an increasing number of women are entering the business in the State of Maharashtra
also.

C. Defining business opportunity. Discuss the makeup of a business opportunity?

Business opportunity refers to the possibility of investing in a profitable business or

leasing/selling any product that will enable the purchaser-licensee to begin a business. In a
business opportunity, a seller typically exercises no control over the buyer's business
operations. In fact, in most business opportunity programs, there's no enduring relationship
between the seller and the buyer after the sale is made.

Common types of business opportunities are:

 Distributorships: In this, an independent agent agrees to offer and sell the product of a
third party but does not use the manufacturer's trade name as part of its trade name.
Depending on the terms of an agreement, a distributor limits his selling only to the
company's goods or product lines, or services from various firms.
 Rack jobber: It involves selling other company's products through a distribution system
of racks in various stores that are serviced by the rack jobber. Typically, an agent or buyer
agrees with the parent company to market their goods to various stores using strategically
located store racks. The parent company obtains various locations in which racks are
placed on a consignment basis and it is up to an agent to maintain an inventory, attract
customers by moving the merchandise, and do the bookkeeping. A copy of the inventory
control sheet is maintained by an agent indicating the amount of merchandise sold and
payment made by the distributor.
 Vending machine routes: In this, the investment is the highest because a businessperson
has to buy machines as well as merchandise. The vending machine operator pays the
location owner a fixed percentage on sales and for the same, he gets locations in high-
foot-traffic areas. If the locations are far apart then it is expensive and time-consuming.
 Dealer: It is similar to the distributor, where a dealer usually sells to the customer or
retailer and a distributor sells to several dealers.
 Trademark/product licenses: In this, a licensee obtains the right to use the seller's trade
name as well as a specific technology, method, or equipment to sell their products or
services. This type of business opportunity is optional for the person to choose.
 Network marketing: It is a general term for multilevel marketing and direct sales from a
business to customers. In this, a network marketer sells the products through his network
of friends, relatives, neighbours, co-workers, etc, and can also gain additional
commissions by recruiting some other agents as well. This is the most explored area of
business opportunity these days.
 Cooperatives: This type of business opportunity is very similar to a licensee arrangement
in which an existing business, such as a hardware store or a hotel, affiliates with a larger
network of similar businesses, often for the sole purpose of advertising and promoting
through a common identity. However, in this, the revenue is generated through the
materials of existing cooperation used by other cooperatives.
Q.2. Write short notes on all of the following topics?

A. Explain social attitude.

A social attitude is a significant aspect that helps in understanding how a person thinks and
behaves toward another person. It is the evaluation of various objects that are stored in the
memory. This social attitude of a person depends upon the prevailing attitudes in society and
a business firm should know and understand these attitudes of people while formulating any
business strategies. Based on the social attitude of the customers, a business firm should
consider the range of products that are acceptable to people, the distribution practices, and the
methods of communication to deal with them effectively.

B. What are Managerial Functions?

There are five managerial functions at the most fundamental level. These are planning,
organizing, staffing, leading, and controlling. These five functions are part of a body of
practices and theories on how to be a successful manager.

 Planning means choosing appropriate goals and actions to pursue and then
determining what strategies are needed to achieve the goals.
 Organizing means establishing working relationships and allowing workers to work
together to achieve their organizational goals.
 Leading means articulating a vision, energizing employees, inspiring and motivating
people.
 Staffing means recruiting and selecting employees.
 Controlling means evaluating the performance and taking an action.

C. What is risk in Women Entrepreneurship?

A women entrepreneur faces the following risks:

1. Fundings: Women entrepreneur has a harder time securing business funding than their
male counterparts. Women are funding their businesses through their credit and high
utilization negatively impacts their credit scores.
2. Employees: Hiring employees means taking on a lot of additional responsibilities,
including adherence to overtime pay, taxes, and workers’ supervision.
3. Insurance: This risk affects all kinds of entrepreneurs. A business is in serious
jeopardy if adequate insurance has not been taken.
 4. Networking: Women entrepreneur lacks available adviser and mentors.
5. Perception: There is a lot of cultural biases that overrate men and underrate women.

D. What is Creative Thinking?

Creative thinking means looking at problems and situations from an innovative and fresh
perspective. It is often known as "thinking out of the box" or "thinking out of your comfort
zone". It is all about avoiding the most common, orthodox, and prosaic situations and
thinking of innovative ways to tackle them. Creative thinking in entrepreneurship leads to
the formation of new firms and to make improvements in existing products of the company to
become more efficient and competitive in the marketplace. A blend of creativity in the
activities of entrepreneurship helps commercialize the idea related to products and services.

E. Define Trade Fairs.

A Trade fair is an exhibition in which firms belonging to the same industry present their
products and services on a defined platform to prospective clients, end-users, retailers,
wholesalers, and distributors. Some trade fairs have a massive audience as they can attract
visitors and participants from every nook and corner of the world. Trade fairs are important
as it helps in launching new products or services, helps in creating lasting impressions,
provides direct sales opportunities, gives cost-effective networking, leads general potential,
levels the marketing fields as you will find all sorts of business entities, and it is a place for
personal interaction.