UNIT ‘ NEW VENTURE CREATION “a, SIA, GROUP PART-A : SHORT QUESTIONS WITH SOLUTIONS ‘at. What do you understand by new venture creation? i Model Papert, 216) ‘answer 5 [New venture ereation is commonly, called as star-up reation, The new venture creation presents 2 road map to create pew venture/startup It includes all the stages involved in the setup ofa new venture right from the idenifcation/creation of new fnsizess ideas tll he launch and growth ofthe business. New venture creation happens through three phases, (Research phase Development of business model phase @ (iy_ Business launch phase. @2. What do you understand by mobility of entrepreneurs? Answer (Mods Papers, He) | May-19, 26) Movement and mobility have played an important role in the human history across the globe. After all, the human beings ‘wing between two poles ie, movement and settlement, Iisa historiel fact that human movement results from various factors Sch as socal, economic, politcal and cultural factors. “Brain drain” is the phenomenon which is being witnessed in the pres Sirece, wherein highly skilled and talented human resources ae being shifted from less developed countries to the developed “ouatries due to economic reasons. Entrepreneurs being human beings tend to move fiom one location to another and also from one oecupation to another. Entry of MNCs in India and intrapeeneutsip serve asthe finest examples of locational and occupational mobility of entrepreneurs {@3, State the procedure for setting up an enterprise. Answer # P ‘The procedure for setting up an enterprisé involves the following steps, Selection ofa project. Decision about form of business ‘Obtaining the registration certificate. (tae Paper, an) | May-19,01(2) 1 2 3 4 Obiaining clearances from the concerned departments. 5, Arrangement of land, shed, plant and machinery and infrastructure facilites forthe enterprise 6, Preparation ofa project report. 7, Financing the project. Project implementation and final clearances from the concemed departments, ‘Qa What are the circumstances that leads to de-registration? Answer : Model Paperwv, aie) Under the following circumstances, de-egistration of an enterprise arises, 1. When an enterprise erosses the limits of investment. 2. When the unit is involved in manufacturing the product without obtaining a licence. 3. When an enterprise fail tobe a subsidiary tothe industry. S>ECTROM ALLIFONE JOURNAL FOR ENGINEERING STUDENTS. SIA GROUP >2.2 ENTREPRENEURSHIP AND SMALL BUSINESS ENTERPRISES (JNTU-HYDERARgs 5. © List out the reasons for the falure of business ideas. Answer eT The reasons forthe failure of business ideas are, 1 €Unack able and unmeasurable goals ofthe entrepreneur. ‘Lack of commitment by the entreprencur tothe business. Lack of experience and planning Failure t assess the possible weaknesses and threats to the business. Q6.” Write a note on DIGS? Answer : Mode Pace a DICS stands for District Industries Centees. DICS is one of the programme which was setup in the rural areas fag, opment of small scale undertakings atthe district Jeve. It was established on May 8, 1978 to assist and adminis, fFamework of SSI for its development. DICs extend service and supporto the small entrepreneurs under the SEEUY and Py scheme Irprovides employment opportunities to many people at the district level PICS are mainly run by the state government. The organizational stracture of DIC comprises of one general manage, functional managers and thee project managers fr the purpose of providing technical taining tothe industries situated ig, district level Q7. Adda short note on T-Hub in Telangana Answer : Model Peper oie Hub (Telanga-Hub) is a public-private partnership formed between the government and three leading institutions India such as ITT (Hyderabad) ISB (Hyderabad) and NALSA (Hyderabad). T-hub isthe start up ecosystem builder and largetsat ‘ip incubator in India which i initiated by the Telanaga government. T-Hub's first phase was formerly launched by governg Hngan ~ Narasimhan, Ratan Tata and IT minister -K-T, Rama Rao on $* November 2015. Government is planning t east the second phase of Thulin the coming days Q8. What is @ business plan? List out few reasons to prepare a business plan. Answer + Model Papert og Business Plan Business plan is said tobe a written document which presents a detailed description of the activities that are involvediny business. It explains the roadmap of the business to accomplish its objectives. Business plan is necessary for both start-up el ‘arowing enterprises, Reasons to Prepare a Business Plan The folowing ae fe reson prepare «basics plan ‘business plans prepared to determin the roadmap ofthe busines ado identify the psible challenges int Is prepared ofan effective bunt stgis wo achieves pal Its prepared to exablish a song and healthy alae by atuactng snd business parines. Ithels the entepreneus to focus morn the key specs of the busines 9. What ae the features ofa business opportunity? Abie « The following are the featurescharactersis of a business opportunity. A business opportunity adds or creates value to the customers. Ausiness opportunity forces the entreprencus to eominunicate with the stakeholders. 3. business opportunity should establish a pees ft with the entrepreneur's skill set. 4, Atusiness opportunity should always be compatible with the existing business efvironment Q10. Write a short note on NIESBUD. Answer : ode apart NIESBUD stands for National Intute for Entepreneurship and Small Business Development Ii established by the 2 ernment of India and ministry of Micro small and medium enterprises as an apex institute at Noida. Its registred asa 0c Govemment of India societies Act XXI of 1860 and is operations came nto existence from 6* July, 1983 The main an of a institut isto co-ordinate vious centres and organization inthe country through raining programmes. Is involved in ening 04 ‘numberof trainers and motivators in entrepreneurship development since many years Heed Look for the SIA GROUP Loco. {¥ on the TITLE COVER before you buy\yuit-2_ New Venti Creation 23 PART-B ESSAY QUESTIONS WITH SOLUTIONS 2.4 NEW VENTURE CREATION - INTRODUCTION, BUSINESS IDEAS AND OPPORTUNITIES 11, Write a brief note on new venture creation. What do you mean by a business opportunity? Discuss the Ott haracteristics of a business opportunity. = er ere answer t Mode Papert, Ata) ew Venture Creation [New venture creation is commonly called as start-up creation. The new venture creation presents a road map to create a ew venture/startup. It presents all the stages involved inthe set up of a new venture right from the identification/ereation of new pasiness ideas til the launch and growth ofthe business. New venture ereation happens through three phases, | Research phase 0 @ i pusiness Opportunity Business opportunity is referred to as a set of conditions that favours'the entrepreneurs to launch his business ideas sascesfully. Development of business model phase Business launch phase. CCharacteristics/Features of a Business Opportunity Te following are the features/characterisies of a business opportunity. ‘A business opportunity adds or creates value tothe customers. [A business opportunity forces the entzepreneuts to communicate with the stakeholders {Avbusiness opportunity should establish a perfect fit with the entrepreneurs skill set ‘A business opportunity should always be compatible with the existing business environment. ‘A business opportunity should identify the possible risks and plan effective strategies to mitigate those risks. ‘A business opportunity should not be easily copied by others. [A business opportunity should require less possible investment. ‘A business opportunity should effectively identify the market gaps. A business opportunity should solve the problems encountered in the business activities. iscuss the various factors influencing the discovery or creation of business opportunities. Briefly explain the process involved in transformation of business ideas into opportuniti Answer Model Papers, 4(0) Factors Influencing Discovery (or) Creation of Business Opportunities, ‘The following are the various factors influencing the discovery or ereation of business opportuni an. 1 Changes in Technology Inthe technological world, changes inthe technologies influence the eration of opportunities, The more the changes the note willbe th opportunities for enitepreneus- The eneprencurs can come up with new opportunites to bridge the technologi- tal sas inthe form of new products, markets, new production methods et. 2. Changes in Political and Regulatory System The changes inthe politcal and regulatory sytem ofthe business envtooment infuences the creation of opportunites. ‘The ndw rules and regulatory changes implemented by the authorities leads to the creation of opportunities for entrepreneurs to fl the changrg needs of customers, 3." Changes in social and Demographic Aspects * The changes in the family patterns, population, workplace diversity, perception towards entertainment, health results in the ation of new opportunities to the enireprencurs fo meet the changing needs. 4. ssChanges in Economie Aspects The changes inthe comic aspects such as income level ofthe individuals influences the creation of opportunities to She emrepreneurs SPECTROM ALLIN-ONE JOURNAL FOR ENGINEERING STODENTS ———— SIA GROUP 3SES [JNTU-HY DE, 24 ENTREPRENEURSHIP AND SMALL BUSINESS ENTERPRI RABAy ‘Transformation of Business Ideas into Opportunities The transfor following fi ess of business idea into business opportunities involved three basic steps which are hy ities involved three basic steps which are s ation process of business idea into business opportuni following figure ‘Step-2 Step-T | @ [Conversion| Process [Competencies] [Creative Thinking] Step I: Idea toa ih, of ansormation process, enteprencur may generat he de based on his son knowlege Ser Reh 8 new branch in Hyderabad to mansactre new produto er dcount fr acting new ae Step 2: Conversion Process Inthis step, ent and creative thinking Ey is advantageous or nt Step 3: Opportunity cpr net study o survey based on he fou fctrs i his skills, knowledge, compet ety analyze the gneraed za based onthe above fur factors fo find out Whether eg forthe success of his enterprise. Inthe inal stp, generated idea may create opportunity fr eteprencu to iplement new busines plas, | 21-1 Generating Business Ideas a G13. Discuss various methods to generate business ideas, Answer Mode! Papa The diferent methods or techniques forthe Beneration of new ideas areas follows, 1. Attribute Listing | 158 technique in which produc’ features and functionality ae used to produce new Product ideas with improved fears and functions. 2 Checklist Method For instance, various advancements in comy social networking sites (google, facebook) ete | 3. Mind Mapping ‘puter echnology lke high sped intemet access, scarch engines (google) a | 4. Brainstorming Brainstorming i an exercise where one has to Possible solutions toa given problem, The kt Breed hs to be bse on nvidia judgement involing- what ween ‘wrong, accepabity,unaccepbility by abe One has to feet free and develop numberof new idens | ‘5S. Synecties Synectcs is greek term which means “arranging the distrust el Suumption thatthe sucess in problem solving can be enhanced by using ‘Thus, the process deals with converting the strange into familiar and ne Produce list ofall the reat tether”. The synectcs theory is based ot Farah thoughe which results in rational otis familia ino strange, took for the SIA GROUP Loco JB on the THE COVER before you buyert noone Tiree Associations anaivertsng genus, ames Webb Young serpin combination of ough which asi ecg se ages. According to James Web Young, new patter ike aise by keeping two different concepts together. The ses gacton aera mn ih whch is ngs om diferent perspectives n fre association, fa tbe inks of a word in his mind, then everything whichis ry he Woda comes ind ete. ral Thinking roduced an According to Edward de Bono, the’ master of lateral unking,italty, some perceptions, concepts and limits are ‘heed before solving a problem. But in lateral thinking, past toretbink, challenge or modify these pereeptions i vidual Examines NeW ways 10 Took atthe things, 10 JR cs rigid controls on thinking and to promote ideas having «xe obabilty. Thi i also called as out-of the-box thinking. 5. Forced Relationships They itemize several erteria and compare each with the ar, For example; In designing a new office furniture forms, Gis, shelves, bookcase ete are considered 9, Group Creativity In group creativity members of a particular group conceptualize and think of new ideas. One of the common Gehnigue of group creativity is brainstorming, it refers to peoucing 38 many ideas as achievable from a group oF team. 10, Reverse Assumption Analysis In this technique, the assumptions about a product or husiness are reversed or changed completely. For example: A festaurent previously tsed to have menus, charged for food and ‘ened food to customers. But now this has been reversed and fastomers now have to do self service for themselves and food hugs willbe charged only when the customer sits atthe table (Qi, Discuss the three approaches that are generally used by entrepreneurs to identify a business opportunity. Write a note on process of creative problem solving. Answer + Model perv, 4 Approaches for Identifying a Business Opportunity Generally, entrepreneurs identify business opportunities tase on their experience, their ability to build social network ind theie creativity. The three general approaches used by entrepreneurs to identify a business opportunity are, 1. Observing Trends “Toidemtify a business opportunity, enteeprencurs observe the latest tends carefully. They always keep an eye on social, ‘ethnological, economic and political trends. For example, E-commerce and Laptop computers were developed based on the internet trend and the miniaturization of electronic goods, SPECTRUM ALLAN-ONE JOURNAL FOR ENGINEERING STUDENTS 2.5 2. Solving » Problem Enireptencurs can identify business opportunity by recognizing and solving a problem that is being faced by customers. Entrepreneurs believe that an opportunity is hidden in every problem. For example, today, finding alternatives for fossil fuel is one ofthe major problem the world is facing. Many ‘entrepreneurial firms have viewed this as an opportunity and launched theie businesses to solve this problem. 3. Finding Gaps in Market Place Entrepreneurs identify a business opportunity by finding a ‘gap between what is provided to the customer and what actually the customers need. Once such gaps are found, entrepreneurial firms can develop new products and improve the existing products. For example, a california-based company named "Discovery Toys” offered educational toys when the toy stores stopped focussing on intellectual development ofa child Process of Creative Problem Solving According to Guilford, there are four stages in the process of creative problem solving, (@) Problem Recog In this stage, a problem is recognized. An entrepreneur recognizes a problem or need by noticing a gap between the ccurent state and the desired state. The recognized problem is discussed with clients so thatthe problem becomes more clear and come into light @) Generate an Idea In this stage, the entreprencurs generate the idea to solve the problem or o fulfill the need, To solve problem, entrepreneur collects information related to problem and finds out the causes ‘of problem. Entrepreneur gets many ideas in this stage. Each idea should be analyzed for its feasibility and cost in order to solve the problem. (©) Developing a Solution = Afler generating ideas, the entrepreneur develops a solution by comparing and testing alist of ideas. 1 is essential for the entrepreneur to identify and evaluate the alternative solutions to select the most appropriate solution which is not ‘only feasible to the customer but also cost-effective. (a) Implement the Solution In this stage, the solution is implemented. To make sure thatthe solution remains effective and viable, the entrepreneur lets the solution to passthrough structured system of follow-up. (©) _ Evaluate the Solution ‘The final solution is assessed in this stage. Testing is carried out continuously to find the final solution. Entrepreneur checks whether there is any mistake in the implementation of the product/service and makes reassessment. Accordingly, new solutions are implemented. Sia GROUP 2S2.1.2 Entrepreneurial Opportunities n india SNS. What are the various entrepreneurial ‘oPPortunities in India in different sectors? Answer: Model Papert, 5°) India is country that has abundant fe FY that has abundant opportunites for Taareneurship, The county is ich in natural resources, skilled {Rbour and a huge macket for wads and jobs. Today, India hes svome the fifteenth most industrialized nition of the word Indian economy has always focussed on the taebFeneurship development as entrepreneurship is one of eg Bor sources for economic development of the nation, nia has an environment which is suitable for the business and bes institutional structures that encourages the development Of business. Some of the well-developed institutions include capital markets, stock exchanges, regulatory bodies, educational Jnstitutions, media, judiciary ete. The enttepreneuts of India {ie operating globally and are suecessful in different arcas of| Dbusiness across the world Entrepreneur is a person who does not wait for the ‘opportunities to come, rather he take initiatives and eaptre the ‘opportunities from the areas where others do not find anything. He play an important role in the development ofthe economy. Entrepreneurs are considered as the catalysts forthe growth, Promotion and expansion of productive activities. {nthe fast developing counties ike India, entrepreneurship has got wider opportunites forthe development and competence Indian entrepreneurs have managed o bring innovative areas of ‘Production and marketing inthe recent years, The modern entrepreneurs can find number of ‘opportunities in the following areas, (@) — E@ucation ‘As majority of Indian people lack education and skills the ‘entrepreneurs can exploit the opportuni in education sector (@) Health Care Entrepreneurs can set-up the hospital chains inthe area of health. (©) Agricultural Sector Agriculture is a great opportinity for entrepreneurial activity as only 30 pereent ofthe agricultural area is irigated and the rest depends on monsoon. In this situation, the enzepraneurs ‘can produce more from the limited land and enhance the product’s quality. The youngsters should be encouraged to take ‘up the entrepreneurial activity in the agriculture sector, Apart from this, the entrepreneurs can explore ‘opportunities in several other areas as follows, ENTREPRENEURSHIP AND SMALL BUSINESS ENTERPRISES LINTU-HYDERAge, 6 Small sale indosty 7. formation chology Software development and expr 9. Agrobiness 10, Handcratis 11. Dairy Poukry and Fishery 12. Onaie fing 13, Foot processing 1 Agoproseing 15, Green ows technology. inte deep cero Ie Id he scgunsertodeveiop economy. Th tal ots eng tess envionment bth toa and ition ne 2.2 MOBILITY OF ENTREPRENEURS.) ene an et Answer Entrepreneurial Mobility Movement and mobility have played an importet sg the human history across the globe. After al, the human song between two poles ie, movement and settlements historia fact that aman movement result from various uae, such as social, economic, political and cultural factors “Bag ‘ain isthe phenomenon whichis being witnessed inthe prt era, wherein highly skilled and talented human resouree ay bing shifted from less developed countries tothe deel, ‘counties dv 10 economic reasons. Model Papen, Entrepreneurs being human beings tend t move fog ‘one location to another and also from one occupation ‘another. Entry of MINCs in India and intrapreneurship seve, the finest examples of locational and occupational mobiiy entreprencurs. ‘The movement of entrepreneurs from one locabie to another and from one occupation to another holds fe ‘unigue characteristics which influence the rate and pats 9 entrepreneurial development, Factors Influencing the Entrepreneurial Mobility ‘There exists various factors which influence entree to move fom one location to another an from one oct to another. The following are the most common factors, 1. Retail rode 1. dveaion 2. Wholesale trade 2 Experience a 3. Transport 3, Availability of facilites 4. Professional services 4. Political conditions and ) 5. Repair and maintenance 5. Size of enterprise, : Look for the SIA GROUP Loco {J on the TITLE COVER before you buy — a | a olEdu avestion pays an imperan oe in infer tlncecing the ay fanestetee hse ig ae Gesels make much noise”. Education helps in enhancing ore, song and understanding capability. An cdueach ste cicunstanees easly and yeh stable in nature with the environment than an illiterate Dei his sce ao a ctv dese re smmuniesin, who persuades people ene aca ae emer ay Th contend foe 1. Experience a eatepetct's cron ici ov Batteen occurences a ecletaramredtnn tira ere beter SWOT ean Tea sie and ea. Added oe he Ore edeeion mdi eS ee aay of Fetes Mostly it is cen thal the entrepreneurs move from one place to anther due to scarcity of resources or non-availability resources. The large number of industries found at Okh, Ghariabad and Faridabad near Delhi are good examples ofthe tvalabilityof facilites. The areas which have good transport tnd communication system, continuous supply of power and {ood market will hve more industries than the othe areas tere there i lack of such facilites. 4. Political Conditions Political conditions also influence the entrepreneurial nobility greatly. It was observed during partition of India, thatthe well-known enterprising Punjabi community had to wander from one comer to the other corner in search of food opportinites. Similarly, Marwaris also known as the footloose’ community in India left India due to several political reasons. 5 Size of Enterprise Usuall large scale businesses have greater mobility than the small scale businesses. In the beginning, the eatepreneuts would establish ther business ata place, next they would try to dominate and get control over that place andthen would successfully lookout for opportunities outside shat area Example ‘Tata, Biel; Dalia et O47. Write in detail about, (a) Geographical mobility (b) Occupational mobility. Answer (0) Geographical Mobility Geographical Mobility is also known as Locational Mobility I oceurs when entreprencur move from one place to another place to search better business opportunities Model Papert, 05, SPECTRUM ALL-IN-ONE JOURNAL FOR ENGINEERING STUDENTS 27 Generally, when entrepreneurs find that there are very few op Portunites for profit in their are, they tend to move to large Cities. Because, there ate many profit opportunities in | Cities with wider choice of jobs and access to huge amount of information. Apart from this, there are factors such as avail ability of skilled labour, better infrastructural facilites, access to resources, Government incentives etc, that influence the ‘geographical mobility of enteeprencurs, A good example of geographical mobility of entrepre- ‘urs is the formation of dot-com bubble during 1995-2000, Several entrepreneurs moved to Bangalore ie, the silicon valley of India, to setup their businesses. There are three main stages in the mobility of entrepreneurs. ‘Stage-1z An entrepreneurs stats a business atone location and sticks to that location, ‘Stage-2: When the business grows, the entrepreneurs stants to ‘move out within a limited area of business develop- seat. Stage-3: In this stage, the entrepreneur exosses the boundar ‘es and starts operating at global level because of the irae in its resources, network size and expansion of business (b) Occupational Mobility Occupational mobility refers to the movement or ‘changes in an occupation. The decupational mobility can be ‘of two types, (__Inter-generation movement ai) (© Inter-generation Movement Intra-generation movement ‘The inter-generation movement is a movement, wherein a daughter/son moves towards the principal occupation of her/his father. It means that the childreit selec that profession/occupation which thet father has been practising. For example, if a father is a doctor then his son would become a doctor only (ii) Intra-generation Movement Intra-generation movement is a movemerit wherein there is a change in one's own occupation during her his oceupational carer. For example, one may start a salaried job in the initial stage of one’s career and after some time set up her/his own enterprise ‘Mobility ean be either horizontal oF vertical in natu ‘When it takes place between equal occupational classes then it {is horizontal mobility and when it takes place between unequal ‘occupational classes or different occupations then i is called vertical mobility Occupational mobility ofan individual ean be identified by various factors such as an individual's freedom of choice, ‘motivation, one’s endeavour and the available opportunities in the society Sia GROUP So2.8 ENTREPRENEURSHIP AND SMALL BUSINESS ENTERPRISES [JNTU-HYDERa, 2.3 MODELS For oppoRTUNITY EVALUATION (Q18. Whatdo you understand by business opportunity Answer evaluation? List out the different models to valuate business opportunities? Explain the RAMP model in detail, Model Papers. 05 Business Opportunity Evaluation 4 business opportunity ‘opportuni Business opportunity evaluation is a process in which is evaluated analyzed, Based on this an effective business model is developed Models for Evaluating Business Opportunities ‘There are two models to evaluate business opportuitics ‘They are, |. The RAMP model 2. The Seven-Domain Framework. RAMP Modet RAMP Tests used to check whether a business opportuc nity i truely valid or not. RAMP stands for Return on investment, ‘Advantages, Market and Potential, These are the four factors oF ‘a RAMP model. Let us discuss each factor in detail (@) Return on Investment This factor involves the following questions (Will the revenues of the business be higher than its ‘expenses? Will the business yield profits? Gi) How much time willbe taken by business to break even? Gil) How much amount should be invested to start the business? How is the entrepreneur going to raise this Civ) What is the ext strategy? (b) Advantages The various questions to be answered concerning this factor are, (3) Whatare the different barriers to the business in entering 2 the matket? Gi) What distribution channel will be used for selling the product? Gil) Will he business have proprietary advantage like patent ‘or exclusive license on which it will be selling? Gv) What is the cost structure by considering the supplies and sourcing? (© Market The various questions concerning ths factor arc, (@Ithere a value proposition in the opportunity? What ‘ced will be fulfilled with this opportunity? Gi) How will you define the target market? Are you selling to business or customers? What are the demographic features of your target market? (ote Fy gis asi wi tr wi Ter nk bets os re poe pede nd soi be bie ce wei eaicw terse ta aeareoon a tet bse oe OME wi ee sy, Wal at Unt! Win wal bu Oe eS csaca ts otiusbaaes @ iv) How this opportunity will help you different business from other businesses ye 19. Explain in detail about Mullin’s Seven domaz framework. Answer : Mose Papacy sever domain famework’model is developed ig ‘Mallins of the London Busines school, This mod safe evaluate or assess entrepreneurial opportunity. According Mullin, there ate three important elements that make apy spreneural team and lead to successful enteprene The three elements are market, industry and the key people ‘The seven domains framework is s follows, ‘Market Domain ~ Macro level Market Domain ~ Micto level Industey Domain - Macro level Industry Domain ~ Micro level ‘Team Domain Aspirations ‘Team Domain ~ Capability of execution’ ‘Team Domain ~ Networks or Connections. Let us discuss these domains in detail, 1. Market Domai In this domain, attractiveness of the overall male ‘analyzed based on following factors, Macro Level (i) ‘The number of customers in the market. Gi)_The amount of money that the customers spend a specific class of goods or services. Gi)" The number of specitic products brought once ina ye 2. Market Domain ~ Micro Level «i In this domain, the attractiveness of the target mit segment is analyzed based on the factors such a, (Product or service dierentiation, Giy_‘The market segment size and the growth phase. Look for the SIA GROUP LOGO {Jp on the TITLE COVER betowyolbiy t ayit-2_ Now Venture Creation Potential for future growth and the future plan of the basiness densifying the target market segment where customers are willing to pay extra price, wo. @ Industry Domain ~ Macro Level L tn this domain, the attractiveness of the industry is gaasd based on HCO such as, f)TRecompetirs thet of displacement ‘The threat of substitutes and competitive rivalry. ‘The bargaining power of buyers and suppliers, Industry Domain ~ Micro Level @ «a. A inthis domain, the sustainable advantages ofthe industry ge anlyzed. This analysis involves answering the folowing gestions, Does the business have proprietary clements suchas trade secrets, patents ete, which cannot be copied or imitated by other firms? o {iy Does the business have capabilites, processes and resources that cannot be easily copied or imitated by others? fa Isthere any economically feasible business mode. Team Domai Aspiration In this domain, the mission, aspiration and risk taking sly ofthe team is analyzed. This analysis helps in answering fhe below question, Does the business opportunity fit the mission, personal spition and risk taking ability ofthe team? 6 Team Domain ~ Capability of Execution In this domain, the team should possess the ability to 2s. ENTREPRENEURSHIP AND SMALL BUSINESS ENTERPRISES (INTUHYOERAgaa, ee of promotion and development of Gv) Providing suggestions to government in policy planning forthe purpose of promotion and development of MSxggy ©) Providing fcitities re lation and quality improvemen, wi «J for modernisation, infrastructure, technology uPer® Jnwodvcing and coordinating polis and programmes forthe purpose of Ave industries, (il) Providing, information services. National Small Industry Corporation Ltd (NSIC) : : is 01 (Government 1955 whSte sa for National Sm inusies Corporation Li, The NSIC was established b> GOW oF edi, ‘with the main objective of promoting and developing SSIs in the county Funetions of NSIC ering MSMES obi gg The functions of NS © includes, (NSIC provides equipment on hire-purchase and leasing system to SSIs (Small Scale Industries) Gi) Enables marketing of SSI’s products, Gi) Encourages export of SSIs products and develops export worthiness of Sis Gv) Improving the prototypes of machines, equipments and tools and making them available to SSIs for commercial produc, (©) Supplying and distributing indigenous and enhanced raw materials. 5. National Science and Technological Entrepreneurship Development Board (NSTEDB) NSTEDB stands forthe National Seence and Technology’ Eniepreneurship Development Board. Its established in gy by the government of India under the aegis of department of science and technology: I. is designed 0 transform “jb-sekg, in tjob-zenertors" though science and technology interventions. Funetions/Activities of NSTEDB ‘The major activities of NSTEDB inclade the prograitimes such as, (i) Training programmes Gi) Information dissemination Gi) Institutional mechanisms for entrepreneurship development. Council (NPC) NPC stands for National Produetivity Council. Itis an autonomous institution concerned by the supervision ofthe mig of industry, Government of India. It is administrated by tripartite governing couneil acquiring an equal representation framt ‘government, industry and trade unions" t's head office is situated in New Delhi consisting of regional directorates in alos, state capitals. Functions of NPC “The functions of National Productivity Couneil (NPC) ae as follows, 6. National Product (i) It provide consultancy services o various organizations fr improving thee productivity. Gi) It provide training to individuals at diferent organizational levels (iti) It provide information of productivity through seminars, workshops, conferences ee. 7. Entrepreneurial Development Institute of India (EDU) i “The Entrepreneurial Development Institue of India (EDI) is promoted by Industrial Financial corporation of tdi Industral Development Bank of India (DBI), Industrial Credit investment Corporation of India (ICICI) and Industrial Devel bank of India (IDBI) as an autonomus non-profit institution along with he assistance of gujarat government at ahmedabad ia Ithas come up with an entrepreneurship movement throughout the nation with a statement that entrepreneurs need not sei born they can be shaped through formulated and administrative netivites. ; Functions of EDI q “The main functions of EDI consists of,» é (. ” Whacititates corporate excellence through ereatng intrapreneur. wagerial capabilities of small scale industries. (i) improves m Look for the SIA GROUP LOGO {J} on the TITLE COVER before you buyywit-2_Now Venture Creation 2.17 Gp promotes mier-enerpriss at rural evel fa) levels new knowledge and insights in entrepreneurial theory and practice by research Ininspre youth with the spirit of entrepreneurship. NIESBUD. [NIESBUD stands for National Institute for Entrepreneurship and Small Business Development. Iti established by the Goverment cetniaand ministry of Micro small and medium enterprises as an apex institute at Noida Its registered a a society under Government Stina societies Act XI of 1860 and its operations came into existence from 6° July, 1983. The main aim of any apex institute i to ‘Cada various Cenes and organization inthe country through training programmes, It is involved in taining large number of ‘eaves and motivators in entrepreneurship development since many years. Junctions of NIESBUD : Following are the functions of NIESBUD, operate as an apex national level institute, : 0 4 0 {iy Itexpand the effective strategies of taining and methodology for entrepreneurship development. activities under Swama Jayants Shahri Rozgar Yojana, agency under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI), fa) Weeonduets rani fi) Trworks as a techr stitutions and organizations conducting entrepreneurship training. fo). elinkup with foi) _Itprovide training to trainers in entreprencurship. G77. Discuss various state level institutions that provide support to the startups/enterprises. Answer = Model Papers, Q5(a) The following are the various state level institutions that provide supporto the startups/enterprises. 1. State Industrial Development Corporation (SIDC) SIDC was setup under the Company's Act, 1956, in the 1960 and 1970s a wholly owned undertaking of state government with an objective of promoting and developing medium and large industries. It playa predominant role in industrial development. Functions of SIDCS (0) Extending risk capital to the entreprescurs in the form of equity participation and seed capital assistance. ance and guarantees to the industries. @ Granting loans, lease (Operating incenive scheme of central and state government (0) Performing promotional activites such as generating project ideas, preparing feasibility report, choosing and taining of cnreprencurs (%) Establishing industrial estates by providir 2 District industries Centres (DICS) DICS stands for District Industries Centres: DICS is one ofthe programme which was setup in the ural areas for the 4éeloment of small scale undertakings at the district level. It was established on May 8, 1978 to assist and administer the fancwork of SS fr its development. Functions of DICS ‘The main functions of DIC’s includes, (One ofthe primary functions of DICs isto promote and develop small nits atthe district level, frastructual facilities. (®t perform an industrial and techno-economic survey in order to check the availabilty of resources such as material, labour, infrastructure. The tchno-economic survey elps in searching for new product lines and guides entrepreneurs in deciding where to invest their money. To plan the schemes effectively and implement it into an action. Tohetp entrepreneurs inthe aqulstion of appropriate and suitable machinery and provide guidance in import of such machinery by fulfilling the requirements of scarce resource of raw material. fy w ‘To forward the proposal of project developed by the entrepreneurs. ‘ALLIN-ONE JOURNAL FOR ENGINEERING STUDEN:. — SIA GROUP {52.18 ENTREPRENEURSHIP AND SMALL BUSINESS ENTERPRISES [JNTU-HYDERARg) ite Financial Corporation of India (SFCs) ‘SECS stands for State Financial Corporation of Inia. It ‘was setup in order to provide financial assistance only to small, ‘and medium sized vndustries. I was initiated through the SEC ‘Act which was passed by the parliament on September 28, 1951 The fist financial corporation was setup in 1953 in Punjab. SECS established at the state level have the objective of financing and ‘promoting small and medium enterprises for achieving balanced ‘egional socio-economic growth and for generating greater ‘employment opportunites. Functions of SFCs The functions of SFCs are as follows, 0 SPCS encourages the new and professionally qualified ‘women entrepreneurs to start the new projects and help them in carrying out those industrial projects. Gi) Inculeates and promotes self-employment, il) Provides subscription to debentures repayable within a period of 20 years. (iv) Actas agents ofall the central and state governments. ™ Jhabilitation of sick units SSIDC stands for State Small Industries Development Comporation. This bank was set up under the companies Act, 1956, Its main objective is to take care ofthe needs of small, tiny and cottage industries, SSIDC's are operating through 18 branches, They help in increasing the market share of the tiny and small seale units Functions of SSIDC's The main functions of SSIDC’s are, (i) Acquiring and distributing the scarce raw material Gi) Supplying machinery on hire purchase agreement. Gif) Assisting in marketing of goods manufactured by small industries. (iv) Providing seed capital to the entrepreneurs. 6) Providing management assistance to manufacturing and production units. Q28. Discuss briefly the role of other institutions that provide support to the startups/enterprises. Answer : “The following are the various other institutions which have taken initiative to support the startups/enterprises. 1. Small Industries Development Bank of India (SIDB1) “The Small industries Development Bank of india (SIDBN) ‘was basically set up as an apex institution for providing financial and non-financial assistance to tiny and small seale industries. SIDBI aims at promoting, financing and development of industries comprising mainly of small scale sector. Apart from this, it also coordinates the work of other development financial The objectives of SIDBI areas follows, py -craie ni deeopng and wig ng 0 Ting egrvig be ck is. of charac Fr pr i) gaeig the nwo of chanel for rong eat SSl nt in bah domes and inemagt et Prmateg te indests which prove emg Tec yt nicoer ec a Se ooh of rool wiping teal Roar betprempnan emer ti| nce en Go) ing ad taking vp 2 poet 1 tmgrovig te insure fr $5 a a frst) (vi) Promoting the export of products and services, 2. Export Promotion Councils (EPCs) EPCs were established with an aim to incteae promotion of exports of specific products. Some of ‘commonly known export-promotion councils are Cas exports promotion council, Engineering export promis council, Sports goods export promotion couneil, Textile ex ‘promotion council ete. 3, National Bank for Agriculture and Rural Developay (NABARD) For promoting credit facilities to agriculture, male industries, cotton and village industries, handicrafts and rural raft industries, NABARD came into existence afterpast bil inthe pasliament in July 12, 1982. Functions of NABARD ‘The main functions of NABARD include (0 Taprovide eredit facilities to the rural institutions Gi) Acts as an agent by undertaking the numerous ati (of government and reserve bank, (ii) Provides foreign assistance by mediating FO! agricultural and rural developmental activities. (iv) Refinances the credit amount issued to agrieu® ‘department, SSIs, village industries, handicrafs (0) Italso provide assistance i bringing improves ‘development inthe production and marketing 4. Housing and Urban Development Corpe! (aupcoy HUDCO stands for Housing and Urban Deve Corporation of India. It was established on 25th which was an extension of Central government objective nf HUDCO is to improve the housing coulis all the sections ofthe society especially the low-neo and weaker section. Look for the SIA GROUP «G0 {{ on the TITLE COVER before you buyput-2_ Now Vente Creation Seven or UDCO a “qe varius objectives of HUDCO ae follows jo provide long term Finance to construct residential houses in urban and rural. snd rural areas ql » » © finance the new fowns construction, o jo make a subscription of debent 4 i) 7 lures and bonds issued by the: is we ind Development A State Hous rusts lopment Authorities for h ing and Urban Development Bi en ooking aad urban, lopment Boards, Improvement evelopment programmes, ‘ofinance the establishment of new industry for building material rate, help, integrate and offer. offer consutaney services for designing and planning the works both in nia as i) ‘ ” «Tene Comattone Organon FCO) 10 stands for Technical Consultancy Organiza ization, Iw " wel ae cieincaaboraton mia alee ice ease tegenty ont ad new enters IDB was thei on os TCOn Ken 17. nk to serve the consuliancy needs is, 9 are under IDBI, $ under IFCI and 3 under ICI Carrey, thee ae 17 TCOs albover Indi See (CI All the 17 TCOs cater tothe needs of small and medi sized runons of TCOS ‘The main functions of TCOs are, Conducting industrial potential surveys @ Provision of technical, management and administrative assistance. @ fying ssitanc to entrepreneurs in modemistn, technical upgradation providing assistance o sick units from conducting diagnostic studies tothe actual implementation of rehabilitation scheme, Undertaking energy audit and energy conservation assignments ‘Conducting EDPS, entrepreneurship awareness campus, SEEUY training programmes and special stidies on crrepreaeushin ‘reparation of projectreport and feasibility studies. Industry Associations (IAS) 5) also referred to as trade association. IAs are voluntary organizations established : sare volun izations established to support and ‘and the peopl associated wiht. The main objective of LA iso rovide a common pfora 0 Jbers of the industry and to promote their growth. Oo) o i «id Industry Associations (IAs the rights of the industry Eerste interests ofthe mem functions of TAS ‘The functions of IAS are, ‘o educate the members of the industry to enhance ther pr sompetition within the industry. jing emerging opportunities. oductvity and profitability (i). To maint ‘To promote new entrepreneurs by giv tion among the members. @ fa) Toppromote co-opera |) Tovesolve the disputes and to promote ethical behaviour. 1. Non-Government Organizations (NGOS) Nox Government Oanzatons (NGOS) ac established vont t provid aves the small and medium scale eee tot 1991 smal scale industrial policy, Government of nie ‘supported the assistance of NGOs to the is Witt efor ong propane, gs Sve, marking suppor ° SS 1 Business Incubation for Entrepreneurship (BIES) ite full-fledged information to the entrepren curs even at the intial stage, Government For providing compl BIE provides the following facilites, (Infrastructural administrative facilities 5 si {EERING STUDENTS mn GROUP a ETRUM ALL-IN-ONE TOURNAL FOR ENGINSINESS ENTERPHIDES 191810111 UEHARA 2,8 T-HUB 3 3 other institutions for developing the startup, 2.20 ENTREPRENEURSHIP AND SMALL BU! Q29. Explain the initiatives made by the central, state and India and briof on the role of T-Hub in Telangan Answer: (oa Paper 8) tay for Developing Startups in India Initiatives Made by the Central, State and Other Institutions For answer refer Unit-I, Q26, Q27 and Q28. Role of F- ub in Telangana government and Une leading isting “EHub (Telangana-Hulb) i a public-private partnership formed Between the see ening nse India such a IT (Hyderabad ISB (Hyderabad) and NALSA (Hyderabad. THUD s the start uP =O” eel a lange tor in India which is nitiated bythe Telangana goverumen. -1Hubs ist phase was formerly ISAS 8) Bovemay na Narasimhan, Ratan Tata and IT mister KT. Rama Rao on S* November 2015, Whereas, ovement play, {0 launch the second phase of T-Hub in the coming days. Location and Structure of T-Hub Board “Telfub acts as a suppott system to maintain connec tutions. The members of the board of eddy (Seed stage venture fund founder), TE-Hub is located in catalyst building in IThyderabd campus with the stakeholders such as venture capitalists, Seed Fundings and Research Insti are B.V.R Mohaty(Nasscom chairman), C.P. Gurnani (CEO Techmahindra), Sashi R Jayesh Ranjan (Secretary in IEC department, Telangana). Role an ‘unctioning of T-Hub in Telangana “The following points highlight the role and functioning of T-Hub in star-up development in Telangana, |, FHlub provides incubation services, mentorship programmes, funding assistance and erestes innovation ecosystem) start-ups. Hub is « non-profit onzanization meant to act as a catalyst in developing Hyderabad as a startup destination, [-Hlub successfully completed i's 4 years of service in start-up development. 4. EHub vision towards building the next generation innovative ecosystem in the coming years and to mark i's ident the world 5.» TEHubis involved in framing new programmes and schemes for the benefit ofthe stakeholders such as startups invest government and academies, ? 6. FHiubin collaboration with the state government launched a3 month funding programme called T-angel to provide faa assistance to alleast 10 startups of every batch. 7. TeAfub forms collaborations with their innovation partners such as TSIC, T-Work, We-Hub, TASK to develop the pa involved in technology ecosystem. ‘TH in collaboration with the state government also initiated T-bridgeto support the star-ups. T-bridge creates ag exposure tothe startups of India Presently in Telangana there are 4,000 startups contributing 15-20% of the India's startup community. Almost 30-48 the MNCs working in Telangana are linked to the startup ecosystem either directly or indirect. 10. T-hub sof, graduated 15 startups and inated 206 startups and recently funded 23 startups, cr the SUA GROUP LOGO QB on the TITLE COVER before you buy