UNI

T1
ENTREPENUERI
ALMANAGEMENT

MEANI
NG
Entrepreneuri
almanagementi sthe pr acti
ce ofgi vi
ng t he i
nnovation inherentin
entrepreneur
shipamor esolidmanagementst r
ucture.Manynew ent repreneurshave
i
deasf orbusinessestheywantt ostart,orproductstheywantt ocreate, butdon'tknow
how t omanageasmal lbusinesseffectiv
ely.Howev er,managinganew v entureand
managi nganexi sti
ngcompanyr equir
esdi ffer
entmet hodsandpr inciples.Through
entrepreneur
ialmanagement ,youcanmanageagr owingbusinesswi thoutlimiti
ngthe
creati
vityorpassi
onofast artup.
Def
ini
ti
on
Entrepreneurshi
pistheabil
it
yandreadi
nesstodevel
op,organi
zeandr unabusi
ness
enterprise,al
ongwi t
hanyofi tsuncer
tai
nti
esinordertomakeapr ofi
t.Themost
promi nentexampleofent
repr
eneur
shipi
sthestar
ti
ngofnewbusinesses.
Theentrepreneuri
sdef i
nedassomeonewhohast heabili
tyanddesiretoestabl
ish,
admini
sterandsucceedinastart
upv entureal
ongwi t
hriskent
it
ledtoit
,tomakeprofit
s.
Thebestexampl eofent r
epr
eneurshi
pi sthestar
tingofanew busi nessvent
ure.The
ent
repr
eneur sareoft
enknownasasour ceofnewi deasorinnovat
ors,andbri
ngnew
i
deasinthemar ketbyrepl
aci
ngoldwi t
hanewi nventi
on.

Char
act
eri
sti
csofEnt
repr
eneur
shi
p:
Notallentr
epr
eneur
s are successf
ul;there ar
e def
ini
te char
act
eri
sti
cs t
hatmake
ent
repr
eneur
shi
psuccessf
ul.Afewoft hem arementi
onedbelow:

 Abili
tyt
ot akearisk- 
Start
inganynewv ent
urei
nvol
vesaconsiderabl
eamountof
fai
lurerisk.Therefore,anentrepr
eneurneedstobecour ageousandabl eto
evaluat
eandt akerisks,whichi
sanessenti
alpar
tofbei
nganent r
epreneur
.

 Innov
ati
on-
 It
 shouldbehighl
yinnovati
vetogener
atenewideas,st
artacompany
andearnprofit
soutofit.Changecanbet helaunchi
ngofanewpr oductt
hatis
newt ot
hemar ketoraprocessthatdoesthesamethingbutinamor eeff
ici
ent
andeconomical way.

 Visi
onaryandLeadershipqual
it
y- 
Tobesuccessf
ul,t
heent r
epreneurshouldhave
aclearvisionofhi
snew v ent
ure.However
,toturntheideaintoreali
ty,alotof
resour
cesandempl oy eesarerequi
red.Here,l
eadershipquali
tyispar amount
becausel eader
simpartandgui dethei
remployeest owardsther i
ghtpathof
success.

 Open-
Minded-
 I
nabusi
ness,
ever
yci
rcumst
ancecanbeanoppor
tuni
tyandused
 forthebenefi
tofacompany .Forexample,Pay
tmr ecogni
sedt hegr
avi
tyof
demoneti
zat
ionandacknowledgedt
heneedf oronli
net r
ansact
ionswoul
dbe
more,soi
tuti
li
sedt
hesi
tuat
ionandexpandedmassiv
elyduri
ngthi
st i
me.

 Fl
exibl
e- 
Anentrepr
eneurshouldbeflexi
bleandopentochangeaccor
dingt
ot he
si
tuati
on.Tobeont hetop,abusinesspersonshoul
dbeequippedtoembr ace
changeinaproductandservi
ce,asandwhenneeded.

 Know yourProduct
-Acompanyownershoul dknow theproductoff
eri
ngsand
al
sobeawar eoft helatesttrendi nt hemar ket
.Iti
sessenti
altoknow i fthe
avai
l
able pr
oductorser vice meet st he demands ofthe cur
rentmar ket,or
whetheri
tisti
met otweaki talit
tle.Beingabletobeaccount
ableandthenal t
er
asneededisavit
alpartofentrepreneurship.

 Creat
ionofEmployment
- 
Ent
repreneur
shi
pgenerat
esemployment.Itpr
ovi
desan
entr
y-l
evel
job,
requi
redf
orgai
ningexperi
enceandtr
aini
ngforunski
l
ledworker
s.

 I
nnov at
ion-
 I
tist
hehubofi
nnov
ati
onthatpr
ovidesnewproductventur
es,
market
,
technol
ogyandqualit
yofgoods,et
c.,andincreaset
hest andardofli
vingof
people.

 ImpactonSocietyandCommuni tyDevelopment -
 Asoci
etybecomesgr eaterif
theemploymentbasei sl
argeanddiv
ersif
ied.Itbr
ingsaboutchangesinsoci ety
andpromotesf acil
it
iesli
kehigherexpenditur
eoneducat ion,bet
tersanitati
on,
fewerslums,a hi gherlevelofhomeowner shi
p.Therefore,ent
repr
eneur shi
p
assi
ststheorganizationtowar
dsamor estableandhighqual i
tyofcommuni ty
l
ife.

 I
ncreaseStandar
dofLiv i
ng- 
Entr
epreneurshi
phel
pst
oi mprovethestandar
dof
l
ivi
ng ofaper sonbyi ncreasi
ng t
hei ncome.Thestandard ofl
iv
ing means,
i
ncreaseintheconsumpti
onofv ari
ousgoodsandser
vicesbyahousehol df
ora
par
ticul
arperi
od.

 Supportsr esearchanddev elopment-

 New productsandser vicesneedt obe
resear
chedandt estedbefor
el aunchi
nginthemar ket.Therefore, anentr
epreneur
alsodispensesf inanceforr
esear chanddev el
opmentwi thresear chinst
it
utions
anduni v
ersiti
es.Thispromot esresear
ch,generalconstructi
on, anddev el
opment
i
nt heeconomy .

Ent
repr
eneur

Anentrepreneurisanindivi
dualwhocreatesanewbusiness,bear
ingmostoft her
isks
andenjoyingmostoft herewards.Theprocessofset
ti
ngupabusi nessisknownas
ent
repreneurship.Theentr
epreneuri
scommonl yseenasaninnovator,asour
ceofnew
i
deas,goods, servi
ces,
andbusiness/orpr
ocedures.
Entr
epreneursplayakeyr ol
einanyeconomy ,usingtheskill
sandi niti
ati
venecessar y
toant i
cipat
eneedsandbr i
nginggoodnew i deastomar ket.Entrepreneurshipthat
provestobesuccessf uli
nt aki
ngont heri
sksofcr eati
nga  star
tup i
sr ewardedwi th
prof
its,f
ame, andcont
inuedgrowthopport
unit
ies.Ent
repreneurshipthatfail
sr esul
tsin
l
ossesandl esspreval
enceinthemarketsf
orthoseinvolv
ed.

1
0Imp
ort
antRol
esofa
nEn
tre
pre
neu
r

1.I
nit
iat
ingandl
eadi
ngbusi
nessact
ivi
ti
es

Ini
ti
ati
ngandgr owingabusinesstoitsmaturit
yisatradi
ti
onalrol
eforentr
epreneurs.
Associeti
esprogress,peopleregul
arl
ydevelopnew needsthatanentrepreneurcan
sati
sfywit
ht heirbusi
nessideas.Thisbusinessideacanpr ov
ideeit
herser v
icesor
product
sthatwouldbenefi
tthecommuni t
y.

I
denti
fyi
ngagapandpl anni
nghow t o addressithel
psentr
epreneur
si ni
ti
atenew
busi
nessv entur
esatanyoppor tuni
ty.Theymustunder st
and everyaspectofthe
busi
ness,incl
udingmakingcri
ti
caldecisi
ons,sett
ingagoodexampl eforemploy
ees
andresol
vi
ngconf l
ict
s.

2.Al
l
ocat
ingempl
oyees'
dut
ies

From t heonsetofabusi ness,anent repreneurneedst oal l

ocatet hei
rempl oy
ees'
responsibil
it
ieseff
ecti
vely.Hiri
ngqualif
iedandcompet entstaffrequir
esagr eatdealof
care,especiall
yforsmallbusinesses.Anent r
epreneuri
salsor esponsi
blefororgani
zing
a business st r
uctur
e and env ir
onmentt hathelps each empl oyee maximize thei
r
potenti
al.The success of a busi ness v ent
ure oft
en r eli
es on i ts employ
ees'
contri
butions.

3.For
ecast
ingbusi
nesschanges

Mostbusi nessesf acesomeki ndofuncert

aint
yast heydev elop.Anentrepreneur
'srol
e
i
nt hi
saspecti st oant i
ci
pateanychall
engesandaddr esst hem asquicklyaspossible.
Forecastingi simpor tantbecauseithelpstheentrepreneurmakedeci sionssuchas
reducingori ncreasingstockforaproduct,
procur
ingupdat edsof t
wareormaki ngcredit
acquisit
iondeci si
ons.

4.Cr
eat
ingj
obs

Whenanent r
epreneurset suporexpandsabusi ness,theydecidewhi chempl oyees
theyneedtohire.Ent
repreneursconsi
derfactor
ssuchaswhoov erseesprocessesand
who can fulf
il
ladmi nist
rati
vetasks.Even when an entr
epr
eneurdoesnotdi rectl
y
employstafftoworki naphy si
call
ocati
on,theymaystil
lneedtoconsi derpeoplewho
canwor
kasaser
vicepr
ovi
der
,asof
twar
esal
esper
sonorapr
ogr
ammer
.

5.I
dent
if
yingbusi
nessoppor
tuni
ti
es

Entr
epreneur
sregul
arl
yseekoutoppor t
unit
iesthatcangr
ow orboostsal
esfort
heir
busi
ness.Theyidenti
fywhichproductt oaddandwhi chmarkettoexpandto.An
entr
epr
eneurshouldli
stentothei
rpot enti
alcli
entsandfi
ndopport
uni
ti
estodevel
op
tai
l
oredproduct
sthatcatert
othei
rcl
ients'needs.

6.Cr
eat
ingandshar
ingweal
th

Start
ingabusinessi nv ol
vesanet workofact i
vit
ies.Whet heranent repreneurrunsa
smallbusi
nessoper atororanest abl
ishedcompany ,manyspendmoneyf r
om savings
andgaincapit
alfrom f amily
,fr
iendsorbankswhent heystar
tout.Investorsoftenlook
forwardt
oinvesti
ngi nsmal lbutpotenti
all
yviabl
ebusi nesses,whil
elender sgrowt hei
r
ownbusinessesbyear ningint
erestfr
om capitalextendedt oentr
epreneur s.Thecy cl
e
ofsuchfundmobilizati
oncanhel pthelocaleconomybui ldwealth.

7.I
mpr
ovi
ngt
hest
andar
dofl
i
ving

Economiesareusedtomeasurel
iv
ingstandar
ds.Theseli
vingst
andar
dscani mpr
ove
thr
ough the dev
elopment
s orser
vices t
hatan entrepr
eneurbri
ngs t
hrough t
hei
r
busi
ness.

Innovati
onsthatcanreducethecostofcreati
ngapr oductalsor educest
heproduct'
s
pricewhil
eall
owingthebusinesst
omaintai
nt hesamepr of
it
s, whichall
owscust
omer s'
tospendl essmoney .Whenpeoplesavemoneybyacqui ri
ngapr oductatacheaper
price,
theycanusethesav i
ngsforot
herpurposes.Thi
sisani ndicati
onofanimproved
standardofli
vi
ng.

8.Taki
ngupandr
educi
ngbusi
nessr
isk

Whenentr
epreneursstar
tabusiness,theyspendtimeanaly
zingandr esear
chi
ngto
makesuretheirideassucceed.An entrepr
eneur
'srol
eist o el
i
mi nat
et heri
skof
busi
nessf
ail
urebytaki
ngmeasurestoreduceasmuchr i
skaspossi
ble.

9.Bui
l
dingst
rat
egi
cpar
tner
shi
ps

Anent repreneurmustcr eat

eabusi nessenvironmentwher epartnershipscant hri
ve,
whichhel pstheirbusinesssucceed.Generati
ngandcl osingnew businessl eadsi san
essenti
alent repreneuri
alskill
.An ent r
epreneurshould maxi mize theirmar keti
ng
capacit
y ,spendt imet alki
ngtoqual i
fi
edpot enti
alpartner
sandr egularl
ycal lev er
y
prospect.Creati
ngst r
ategicpart
nershi
pscanhel pent
repreneur
smakebet t
erdeci si
ons
forthei
rcompanyandev enobtai
nmor ecapit
al.
10.Di
git
ali
zi
ngbusi
nessoper
ati
ons

Becausetechnol
ogyev olvessoqui ckl
y,abusinessproductorservi
cecanber endered
obsol
eteduet onewt echnology'
sent r
y.Anentrepr
eneurisresponsi
bleforconti
nuously
updati
ngthetechnologytheyusei ntheirbusi
nessprocessesoracti
viti
es.Entr
epreneur
rol
esregardi
ngtechnologyinclude:

QUALI
TIESOFAGOODENTREPRENEUR

1.Hav
ingav
isi
on,
agoal

Agoodent r
epreneurisalwayssetti
nggoals.Mor eimpor tant
ly,agoodentr
epreneur
askskeyquest i
ons:whatvi
siondoIhaveformybusi ness?WhydoIwantt obecomean
entr
epreneur
?I fyou’
vemanagedt oshapeav i
sion,you’
llknowhowt okeepyoureyeon
thetar
getthroughoutyourvent
uretoentr
epr
eneur shi
p.

2.Bei
ngdet
ermi
ned,
per
sev
eri
ngandpat
ientt
oo

Deter
mi nat
ion and persever
ance and of t
en list
ed as f
actor
si nt he success of
entr
epreneuri
alproj
ect
s! Ther
ehasnev erbeenasuccessstorywi
thoutsetbacks,f
ail
ure,
eff
ort,
ahuntf orsol
uti
onsandot hersurpr
ises1.

Soifyoutendtofearfai
lureandthr
owupy ourhandswi
thoutaf
ight
,ent
repr
eneurshi
p
mightnotbeforyou.Fai
lurehappensal
ltheti
me,andwhat’
simport
anti
sdrawingout
thel
essonsthatwi
llhel
py oufor
geahead.

3.Taki
ngact
ionandknowi
nghowt
omakechoi
ces

Decidedly,ent
repreneursareacti
on-
ori
ent
ed.Agoodent
repr
eneuri
sn’
tthetypetowait
unti
lthingsget t
hemsel ves 
rol
l
ing.I
fyouwoul
dsayyouneedtoacttosucceed,you’
re
headedi ntheri
ghtdirecti
on!

From hereonout,ify
ouhavetheent
repr
eneur
ial
knack,youwill
becapableofuphol
ding
yourresponsi
bil
i
tiesbymakingdecisi
ons–onsmal l
,strat
egic,orever
ydaymatt
er s.
Evenifsometimesy oumayneedtomakequi ckdecisionswi t
hat r
aceofdoubtor
uncer
tainty
…

4.I
magi
ning,
bei
ngcr
eat
iveandf
lexi
ble

Abov
eal
lel
se,
anent
repr
eneuri
sani
nvent
or,
pushi
ngbackbor
der
sandseei
ngnol
i
mit
s.
Notonlydotheybri
ngthei
rini
ti
ali
deat
oli
fe,butt
hei
rcr
eat
ivemi
ndsenabl
ethem t
o
adj
ustandenhancei
tal
ongtheway.

Asabuddi ngentrepreneur,i
fyoucani denti
fywit
ht hat,you’
llbeabl
etocountony our
i
magi nati
ontogety ouroutofst r
essfulcir
cumstancesandadaptt onewsituat
ionsto
guaranteethecontinui
tyofy ourproj
ect/busi
ness.Creativi
tygivesyouarealedgeon
thecompet i
ti
on,
newunt appedmarketsandnewcl ientel
e.

5.Notf
ear
ingchal
l
engesanddar
ingt
otakecer
tai
nri
sks

I
fy oudeci
det olaunchyourownbusiness,there’
sahighli
kel
ihoodearlyt
imeswi
l
lbe
toughandprofit
swi l
lbelow.Inordertosetoutoft hisnew advent
ure,y
oumustbe
prepar
edtotakethatri
skandstepoutsi
dey ourcomfor
tzone.

Donotbeli
eveari
sktakeractswit
houtthi
nking.Sur
e,agoodent
repr
eneuri
sn’
taf
rai
dof
t
akingri
sks–havingi
dentif
iedenvi
ronmentalthr
eatsanddet
ect
edtheopport
uni
ti
esup
forgr
absbefor
ehand!

6.Hav
ingahungerf
orl
ear
ningandbei
ngcur
ious

Entrepreneurshaveav i
sceralandi
nsati
abl
eneedtoalwaysdigfart
her(forthemselv
es
andt heirempl oyees).Theynat ur
all
yverycuri
ousandont helookout( whoknows,
may bet hey’l
lfind thei
rnexti deainthepagesofawai ti
ng room magazi ne!
).An
entrepreneur’
scuriosit
yhelpsthem chal
l
engethei
rownideas.Soasky oursel
fthi
s:am I
preparedt ogobey ondthef earoftheunknown?Ifso,y
oucanshopar oundf ornew
i
deast opi ckupon.

7.Bei
ngpassi
onat
e

Star
ti
ngabusinessi
sacomplexundert
aki
ngandt
her oadtoent
repr
eneur
shi
phasi
ts
shareofpi
tfal
l
s.Bei
ngpassi
onat
eisapower f
ulmotortokeepyoumov i
ngfor
war
d:
passi
onpushesyout
odogoodwork,havef
un,
andnotgiveupt
ooquickl
y.

8.Seei
ngbi
gbutaccept
ingt
ost
artsmal
l

Youneeddr eamst osucceed.I

fy outhi
nki
t’
simpossi
ble,y
ouwil
lnotr
eachtheendof
yourquest.Entrepr
eneursconstantl
yseeknew ambi
tiousgoal
sforthemsel
vesand
dif
fi
cul
tproject
st ogeti
nvolv
edin.
9.bei
ngabl
etowor
kinat
eam anddel
egat
etasks

Duringyourjourney,y
ou’l
lneedtoseekoutt heskil
lsyoudon’
tpossessi
nassoci
ates,
partner
s,employ eesandservi
ceprovi
ders,orperhapssimpl
ydelegat
eifyouwantto
focusyourenergyont hei
mportantj
obs.

Todoso, y
ouneedtobeabl etoshareyourvi
sionandcommuni cat
eef
fect
ivel
yinor
der
toconvi
nceot
hers,overseeandmoni t
orthei
rwor k,mot
ivat
ethem,et
c.Youalsoneed
toknowhowtojugglebetweentasks/
jobs/meeti
ngs…

10.Discipli
ned
Successf ulentr
epr
eneursaref ocusedonmaki ngthei
rbusinesseswor k.They el
imi
nate
allhindrances and dist
racti
ons t otheirgoal s and outl
ine tact
ics to accompl i
sh
them. Theyf ocusont heday -
to-dayoperationsoftheirbusinesswithoutdisregar
ding
thei
rlong- ter
m goals.Successfulentrepreneursaredisci
plinedenought ot akesteps
everydayt owardtheachievementoft heir
 goalsandobject
ives.

11.Confi
dent
Onequalit
yofasuccessf ulentrepr
eneurthatpeoplequicklynot
iceisthei
rconfi
dence.
Thefounderof say
sent r
epreneursdon’
taskquestionsaboutwhet hert
heycansucceed
orwhethertheyarewor t
hyofsuccess.Theyareconf i
dentwi t
htheknowledgethatthey
wil
lmaket hei
rbusinessessucceed.Theyexudethatconfidencei
nev er
ythi
ngtheydo.

12.OpenMi nded
Entrepr
eneursreal
izethatev eryev entandsituat
ionisabusinessopportunit
y.I
deasar e
constantl
ybeinggener atedaboutwor kflowsandef f
ici
ency,peopl
eskil
lsandpot ential
new businesses.
 Theyar econst antlylooki
ngf ornew way st oimprovet hecurrent
systemsandpr ocesses.Ent repreneur shaveanuncannyabi l
it
ytoenv i
sionaproduct
thatwil
lsolv
eapr oblem, eventhoughi tmaynotcurrentl
yseem possi
ble. 
Theyhavet he
abil
ityt
olookatev er
ythingaroundt hem andfocusittowardthei
rgoal
s.

13.Sel
f -
start
er
Self
-st
arterstendt obemor esuccessfulbecauseoft heirinnateabili
tytomanaget hei
r
ti
meandcont rolthei
rperf
ormance. 
Ifsomet hingneedst obedone, entr
epreneursknow
theyshoul dstartitthemselv
es.Theysetpr ojectpar ametersandar epr oact
ive,not
wait
ingf orsomeonet ogivethem permi ssi
on. Entrepreneursl ookforsoluti
ons,li
ke,to
makest arti
ngt heirbusi
nesslesscompl i
catedandot herpr ocessesthatcanr educe
complicati
onsinthewor kpl
ace.

14.Compet i
ti
ve
Manycompani esaref ormedbecauseanent repreneurknowst hattheycandoaj ob
betterthananother.Theyneedt owinatt hespor t
st heyplayandneedt owinatthe
businessesthattheycr eat
e.Anent repr
eneurwi l
lhighli
ghttheirowncompany ’str
ack
recordofsuccess. 
Toexceli nbusiness,entrepreneurshavet heabili
tytoexpl
oreal
lof
thei
ropt i
onsandr emainaggr essi
vei npursuingtheirgoals.Theyar ewill
i
ngtoaccept
anychal
l
engest
hatmaycomet
hei
rwayi
nor
dert
oexcel
evenmor
e.
15.Creative
A successf ulent repreneuri s creati
ve and alway sl ooks atthe big picture.Their
creat
ivi
tyandv isionof tenleadt otheinventi
onanddi scover
yofnewt hi
ngs.Theset rai
ts
requi
reanent r
epr eneurt otaket heiri
deasanddr eamsi ntoaphy si
calf orm. 
Onef acet
ofcreati
v i
tyisbei ngabl etomakeconnect i
onsbet weenseemi nglyunrelatedev ent
sor
sit
uati
ons.Ent repreneur softencomeupwi t
hsol uti
onswhi charethesy nthesi
sofot her
i
tems.Theywi llrepur posepr oductstomar ketthem t onewi ndustr
ies.
 Theymustal so
bewi l
l
ingt ostepout sidetheircomf ortzoneinor derforthei
rideastocomet ofrui
ti
on.
Somet i
mest hesei nv enti
onsr esultinnew t echnologiesandadv ancement sthatcan
creat
ebr eakthroughsi ni
ndust r
ies.

16.Deter
mi ned
Entr
epreneursl ookatdef eatasanoppor tuni
tyforsuccess.Theyar edeterminedto
makeal loft heirendeavorssucceed,so theywi l
ltryand tryagain unti
litdoes.
Successfulentrepreneur
sdonotbelievet
hatsomet hingcannotbedone. 
Therefore,
one
qual
ityofasuccessf ulent
repr
eneurisdeterminat
ion.Theypossessthedeterminati
on
toperseveret hroughalloftheupsanddownsofbusi nessinor dertoachievetheir
goal
sanddr eams.

17.St r
ongpeopleskil
ls
Ent repreneurs use st
rong communi cati
on ski
ll
st o sellpr oducts and mot i
vat
e
empl oyees.Mostsuccessfulentrepreneursknow how tomot i
vatet heiremploy
eesso
thebusi nessgrowsov erall
.Theyar ev erygoodathi ghl
i
ghtingt hebenef i
tsofany
situat i
onandcoachingot herstotheirsuccess i
sagr eatwebsit
et opi ckupnewskill
s.
Thewebsi t
ehasmul ti
pleprofessionalcoursespecif
ical
lyforbusinessandl eader
shi
p
training.

18.Strongwor kethi
c
Highly-
successfulent
repreneursar eal
wayswill
ingtoputinthenecessaryeffort.They
areleadersthatsetast r
ongexampl etoother
s,especi
all
yinthesenseofur gencyand
responsibi
l
ity.
 Thesuccessfulentrepr
eneurwil
loft
enbet hefi
rstpersontoarri
veatt he
offi
ceandt helastonetol eave.Theywil
lcomei nonthei
rdaysofftomakesur ethatan
outcomemeet sthei
rexpect at
ions.Thei
rmindisconstantl
yontheirwork,whetherthey
areinoroutoft heworkplace.

19.Passion
Oneoft hemosti mportantqual i
ti
esofasuccessf ulent r
epreneuri spassion.They
genuinelylovethei
rwor k.Theyar ewi l
li
ngt oputi nt hoseextrahour stomaket he
businesssucceedbecauset hereisaj oyt hei
rbusinessgi veswhichgoesbey ondthe
money .Thesuccessfulent r
epr eneurwillalwaysber eadingandr esear
chingway sto
maket hebusi
nessbetter.
 Theyar ewi l
li
ngt oputint heirti
meandef for
ttolearnnew
techniquesorappli
cat
ionsi nor dertostayaheadoft heircompet i
tors.Theymakesur e
thattheyar eal
wayslearningnew t hi
ngsaboutt heirindustryt
okeepabr eastofnew
developmentsandbeasef ficientaspossi bl
e.
Ent
repr
eneur
spl
ayasi
gni
fi
cantr
olei
neconomi
cdev
elopmentofacount
ry.

Hepromot esthepr osperi

tyofanat i
onbyhisinnovati
onanddy nami cleadershipSki
ll
s.
Hecreateswealth,opensupempl oymentopport
unit
iesandfosterstheot hersegments.
Accordi
ngt oHar bison,entr
epreneur
sarepr i
memov ersofinnovation,growthandas
such,entr
epreneurshipisady namicfor
ce.Theroleandsigni
ficanceofanent repr
eneur
areexplai
nedbelow:

1.Bringi
ngEconomi cGr owt handPr osper
ity:Entrepreneurbringeconomicgr owthand
prosperi
tyint hecount ryt hroughgener ati
onofempl oymentoppor tuni
ti
es,capitaland
wealthcreati
on, increasingpercapi tai
ncomeandGDP, i
mpr ovementinquali
tyofl i
feby
rai
singthest andar dofl iving,growt hofinfrastructur
alfacil
iti
es,f
orwardandbackwar d
l
inkagesinsoci ety ,developmentofbackwar dr egions,economi ci
ndependence.Geor ge
gil
derobser ves,“ The‘ heroiccr eativi
tyofent r
epreneurcamet oseem essentialtoour
economic wel l
-being i n a gl obaleconomy ”.Baumback and Mancuso wr it
e,“ In
underdevelopednat ions,ent repr eneur
sof t
enhol dthekeyt oeconomi cgrowt hf ora
wholesociety.Soent r
epr eneurisnotadi r
tywor doraf astbuckoppor t
uni
st,but,rather
thebackboneoft hecapi tali
stsy stem”.

2.Br iningSocialSt abil

it
yandBal ancedRegi onalDev elopment:Entr
epr eneur splaya
crucialand uni que r olei n br
inging aboutsoci alst abil
it
y and bal anced r egional
dev elopmentt hr ough absor pti
on ofwor kforce i ni ndustri
es,remov alofpov erty
,
i
mpr oving health and educat i
on f acil
ities,cr eat i
ng f ai
r compet iti
on,equi table
distri
but i
on ofi ncome,cr eati
on ofsoci ali nfrastructures,empower ing women and
weakersect i
onsoft hesocietyandsuppl yofqual i
tativegoodsandser vicesAl though
ent r
epreneursar ecr iti
ci
zedassel finterest edexpl oiter
s,Adam Smi t
h,whi ler ecognizi
ng
thatt heydosomegoodf orsociety,par tlyr eflectedt hisv i
ew whenhewr oteinThe
Weal thofNat i
ons:“ Inspiteoftheirnat uralsel fishnessandr apaci
ty,t
hought heymean
onlyt heirconvenience,t houghthesol eendwhi cht heypr oposefr
om t hel aboursofal l
thet housandst heyempl oybethegr at i
fi
cat i
onoft heirownv ai
nandi nsat i
abledesi res
theyar el edbyahi ddenhand,andwi thouti ntendi ngi t
,wi t
houtknowingi t,adv ancethe
i
nt erestofsociety ”
.

3.I nnovatorin Economi c Gr owth:bybr inging new i deas,combi nati

ons,pr oduct
s
techniques,or ganizations,new mar kets,maki ng f ul
luse oft echnicalknowl edge,
balancedgr owt h,systemat icinnovation, t
echnol ogicaladv ancement ,i
mplement ati
onof
mechani calskill
s,anent repreneurplayv erycr ucialroleinencouragingent r
epreneurshi
p
andeconomi cdev elopment .Pet erDr uckerwr i
tes,“ Justasmanagementhasbecome
thespeci fi
cor ganofal lcont empor aryi nstit
ut i
onsandt heint
egr ati
ngor ganofour
soci et
yofor ganizat i
ons,so i nnovat i
on and ent repreneurshi
p hav et o become an
i
nt egrall
if
e-sust ai
ningact i
vi
tyi nouror ganizations,oureconomy ,andoursoci ety
”.He
furthersay st hatt he emer gence ofa t rul
yent repreneuri
aleconomyi st he most
signifi
cantandhopef ulev entthathav eoccur r
edi nrecenteconomi candsoci alhist
ory.

4.Cr
eat
ion ofEmpl
oymentOppor
tuni
ti
es:Ent
repr
eneur
s pl
aya si
gni
fi
cantr
olei
n
generati
onofempl oymentoppor t
unit
iesbyestabli
shingnew uni tsinmanuf acturi
ng,
tr
adingandser vicesectors,layi
ngemphasi sonsmal lscaleindustri
es,uti
li
zingthe
surpl
us labourfor ce i
nv ari
ed industr
ialand/
orser v i
ce act
ivit
ies,upholdi
ng self-
employ mentasacor eobject
ive.Entr
epreneuri
ntegratesresourcesandt echnologi
es
i
ntopr ofi
tabl
ebusinessventur
esandcr eatesj
oboppor t
uniti
es.

5.I ncreasePr oducti

v i
tywi t
hModer nPr oduct i
onSy stem:Pl ayani mpor tantr olein
raisingpr oducti
vit
y.JohnKeudr i
ckwr i
tes,“Higherpr oductivityischi efl
yamat terof
i
mpr oving producti
on techniques,and t hi
st aski st heent repreneurialf unction par
excel l
ence”.Two key st o higherpr oductiv
ity arer esear
ch and dev elopmentand
i
nv est mentinnew pl antandmachi nery.Butt hereisacl osel inkbetweenR&Dand
i
nv est mentprogrammes, wit
hahi gherent r
epreneurialinputint oboth”.Geor geGi l
derin
TheSpi ritofEnterpr
isesai dthat:“Entr
epreneur sarei nnov
at orswhoev okedemand’ .
Theyar emaker sofmar ket
s,creatorsofcapi t
al,anddev elopersofoppor t
unityand
producer s of new t echnology. They seek t he uni que pr oduct,t he mar ket
ing
breakt hrough,thestartl
ingnew,f eatur
eort henov eldesign.Theychanget echni cal
frontiersandr eshapepubl icdesires.Theycr eateweal thandempl oy ment .Theyt ake
except iont othereceivedv iew t
hatcompani esshoul dbemar ketled.Theyl eadt he
mar ket ”
.

6. Expor t Promot i
on and I mpor t Substit
uti
on: Liberal
izat
ion,pr iv
ati
zation and
globali
zati
on[ LPG]hasopenedt hear enaofexpor tpromot i
onandi mportsubstit
ution
to entrepreneurs by establi
shing industri
es producing importsubst it
uti
on goods,
establi
shnew i ndustri
es,especiall
yf orexpor t
,products,explorati
onofnew gl obal
mar kets,
earningf or
eignexchanger eserves,uti
li
zi
ngtheav ail
abl
epr oducti
veresources,
achievingself-
reli
ancei nproductionofasmanygoodsaspossi ble,entr
epreneur,are
playingapivotroleinexportpromot i
onandi mpor tsubsti
tuti
on.

7.Ent r
epreneurPl ay
s a Rol e ofCat alyti
c Agent:As Joseph Schumpetersay s,
entrepr
eneur’
staski s“ cr
eativedest
ruction”.Hedestroy
st ocreatenew things.He
changesandt r
ansmut esvalues.Hesearcheschangeandrespondst oit
.Heisachange
creator
.RalphHar wit
zwr it
esi nhisbookReal i
ti
esofProfi
tabi
l
ity
’,“Theentr
epreneur
makesahappeni ng,want spieceofacti
on,i sthegrowt
hman.Wi t
houthimthereisno
happening,noact
ion,andnogr owth”.

8.Augment i
ngandMeet i
ngLocal Demands:Ent
repr
eneur
salsoplayasigni
fi
cantr ol
ein
augment i
ng local demands and meet i
ng them sat i
sfact
ori
ly
. Towar ds t hi
s
entrepr
eneursfocus their at
tenti
on to manufact
ure servi
ce thr
ough indigenous
technol
ogy,ski
l
l,r
esourcesandex per
iences.

9. Rei nventi
ng Ent repreneuri
alVent ure:An ent repreneur wor kt o reinvent his
entrepreneurialv enture.He knows t hatchange and i nnov at
ion is good f orhi s
organization.PaulWi lkenobserves,“Entrepr
eneur
shipisadi scontinuousphenomenon,
appear i
ngt oi ni
ti
atechangesi nt hepr oducti
onprocessandt hendi sappeari
nguntilit
reappearst oinit
iateanot herchange”.Zol t
anAcswr i
tes,“Ent r
epreneursst i
rupt he
watersofcompet i
ti
oni nt hemar ketplace.Theyare‘agent sofchangei namar ket
economy
”.

10.Economi cDev el
opment:Entrepreneurship acti
vi
tycontri
butestot he economic
developmentofa nat i
on.Due t o entrepreneurshi
p,new and innovat
ive materi
als,
products,technol
ogi
es,processes are dev eloped.Thisincreases pr
oduction and
di
stri
butionofgoodsandservi
ces,result
ingingr owthanddevel
opmentoft henati
on.

Devel
opedcount r
iesl
i
keJapan,USA,Ger many,etc.
,owet hei
reconomicdevel
opment
tothecontr
ibut
ionofthei
rent
repreneur
s.Withouttheinnovat
iver
oleofent
repr
eneur
s,
economicdevel
opmentofanationwouldgethamper ed.

11.Soci
alDevel
opment
:Entrepreneur
splayanimport
antrol
einsoci
aldevel
i
pmentofa
nati
on.Prof
essi
onaland successfulentr
epeneur
srecogni
zeand respond t
o soci
al
devel
opmentneedsoft
hesoci et
y.

Theentrepr
eneur
scontri
butefundstowardssocialdevel
opmentacti
vit
iesli
keheal
th,
educat
ion,and community devel
opmentact i
vi
ties.They al
sp generat
e new and
i
nnovati
veideast
oenhancesocialdev
elopmenti
nt hesoci
ety
.

12.RegionalDevel
opment:Theentreperneurssetupi ndustr
iesnotonl yinurbanareas,
butalsoinbackwardsareas.Duet ogov ernmentincenti
vessuchascashsubsi dy,t
ax
holi
day,dutyconcessions,etc.
,ent r
epreneur
s arei nduced t o setup industri
es i
n
backwardareas.Asaresultofsuchinit
iat
iveonthepar tofentrepreneurs,
thebackward
areasgetdevel
opednotonlyeconomi call
ybutalsosociall
y.

13.Dev
elopmentofmanager
ial
capabi
l
iti
es:

Thebiggestsi gnif
icanceofent r
epreneur
shi
pliesinthef actthati
thelpsinidenti
fyi
ng
anddev el
opingmanager i
alcapabil
iti
esofentrepr
eneurs.Anent r
epreneurstudi
esa
probl
em,i dentif
iesi t
sal t
ernat
ives,comparesthealternativ
esi nter
msofcostand
benef
itsimplicati
ons, andfi
nall
ychoosesthebestalt
ernative.

Thisexer
cisehelpsinsharpeni
ngthedecisionmakingski
ll
sofanentrepr
eneur.Besi
des,
thesemanagerialcapabil
i
tiesareusedbyent r
epr
eneursi
ncr eat
ingnew technol
ogies
and productsi n place of ol
dert echnologi
es and productsresul
ti
ng in higher
perfor
mance.

14.Cr
eat
ionofor
gani
sat
ions:

Entr
epreneur
shipresult
si ntocreat
ionoforganisati
onswhenentrepreneursassembl
e
and coordi
nate physi
cal,human and financi
alr esour
cesand dir
ectt hem towar
ds
achi
evementofobj ect
ivesthroughmanageri
alskil
ls.

15.I
mpr
ovi
ngst
andar
dsofl
i
ving:

Bycreat
ingpr
oducti
veorgani
sat
ions,
ent
repr
eneur
shiphel
psinmaki
ngawi devar
iet
yof
goodsandservi
cesavai
l
abletothesoci
etywhi
chresul
tsi
ntohi
gherst
andardsofli
vi
ng
f
ort
hepeopl
e.

Possessi
onofl uxur
ycar
s,computer
s,mobil
ephones,r
api
dgrowthofshoppingmall
s,
et
c.arepointer
st ot
heri
singl
i
vingst
andar
dsofpeople,
andal
lthi
sisduetotheeff
ort
s
ofentr
epreneur
s.

16.CapitalFormation:Entrepreneursf aci
li
tatecapi t
alf
ormationinthecount r
y.The
ent
repreneur
spr ovideempl oymentt ot hepeopl e.Theemployeessaveapar toftheir
i
ncome.Theent repreneur
sal sosav eapar toft hei
rprofi
ts.Thesesavingsleadto
i
nvestment.Investmentint urnfacili
tatescapitalformat
ion,i.
e.,pr
oduct
ionofcapital
goods,whichcanbeusedf orfurtherproducti
onofconsumergoodsandser vi
ces.

17.ConsumerWel far
e:Entrepreneurshi
pact
ivi
tyfacil
itat
esconsumerwel far
e.Dueto
i
nnovati
veideas,consumer scanenj oynew andbet t
ert ypesofgoodsandser vi
ces.
Alsoduetoempl oyment,purchasingpowerofthepeopl ei ncr
eases,resul
ti
nginmore
demandf ornew andbet tertypeofgoods.Ther efore,thest andar
dofl ivi
ngofthe
soci
etyi
mpr ov
es.

Ty
pes

1.OntheBasi
sofEconomicDevelopment
:ClarenceDanhofcl
assi
fi
edent
repr
eneur
s
i
ntof
ourgr
oupsont
hebasisofeconomicdevel
opment.

A.I nnov ating Ent repreneur s:Thi st ype of ent repreneur shipi s characterized by
aggressiv eassembl ageofi nformat i
onandt heanal ysisofr esultsder iv
ingf rom nov el
combi nat i
onoff actor sofpr oduction.Ent repreneur sf alli
ngi nt hisclassar egener ally
aggressiv e in exper iment ati
on and exhi bited shr ewdness i n put ti
ng at tracti
ve
possibili
tiesintopr act i
ce.Theyar et heent repreneur swhohav ecr eat
iveandi nnov ati
ve
i
deasofst art
inganew busi ness.Ani nnov atingent repreneurseest heoppor tunityfor
i
nt r
oduci nganewt echni queoranewpr oductoranewmar ket.Hemayr aisemoneyt o
l
aunchanent er pri
se,assembl ethev ariousf act ors,andchooset opexecut iv
esandt he
sett heor ganizati
ongoi ng.Schumpet er’
sent repreneurwasoft hi
st ype.Innov ati
ve
entrepreneur sthus,r esultsint hecreationofsomet hingnew.Theyar ethecont ri
butors
totheeconomi cdev elopmentofacount ry
.Innov ati
ngent r
epr eneursar everycommonl y
frondi nundev elopedcount ri
es.Ther ei sdear t
hofsuchent repreneursi ndev eloped
count r
ies.Innov ati
ngent repreneursplayedt hekeyr oleint her i
seofmoder ncapi tali
sm,
throught heirent erprisi
ngspr i
t,hopeofmoney maki ng,abi l
i
tyt or ecognizeandexpl oit
oppor t
uni ti
es,etc.

B.Adopt iv
e orI mit
ati
ve Entr
epreneur:Therei s a second gr oup ofent repr
eneurs
general
lyrefer
redasimitati
veent
repreneurs.Theimi t
ati
veentrepreneurscopyoradopt
sui
tableinnovati
onsmadebyt heinnov at
iveentrepreneur
s.Theydoesnoti nnovatethe
changes hi mself
. They only imitates technology innovated by ot hers. Such
entr
epreneursarepart
icular
lyi
mportantindevelopingcourti
ersbecauset heycontri
bute
si
gnifi
cantl
yt othedevelopmentofsucheconomi es.Imitat
iveentrepreneursaremost
suitablef orthedev el
opingr egionsbecausei nsuchcount r
iespeoplepr efertoi mit
ate
thet echnol ogy,knowl edgeandski l
lalreadyav ai
lableinmor eadv ancedcount ri
es.In
highlybackwar dcount ri
est hereisshortageofimitativ
eent r
epreneursalso.Peopl ewho
cani mi tatet het echnologiesandpr oductst othepar ti
cularconditi
onspr evail
ingin
thesecount riesar eneeded.Somet imes,thereisaneedt oadjustandadoptt henew
technol ogiest otheirspeci alcondit
ions.Imitat
iveentrepreneurshelptot r
ansformt he
system wi t
ht helimi t
edr esourcesav ai
labl
e.Howev er
;theseent r
epreneur sfacelesser
ri
sksanduncer t
aintytheni nnovati
veent r
epreneurs.Whileinnovati
veent repreneursare
creative,imitati
veent repreneursareadopt i
ve.

C.Fabi an Entr
epreneur :The thi
rdtype i
s Fabian entrepreneur
.By nat urethese
entrepr
eneursareshyandl azy.Thi
stypeofentr
epreneurshav eneit
herwilltoint
roduce
new changesnordesi retoadoptnew methodsofpr oduct i
oninnovat
edbyt hemost
entrepr
eneurs.Theyf oll
ow t
hesetprocedur
es,customs,traditi
onsandr eligi
ons.They
arenotmuchi nterestedintakingri
skandt heytryt ofol l
ow thefootstepsoft hei
r
predecessors.Usuall
yt heyaresecondgenerati
onent r
epr eneurinabusi nessf amil
y
enterpr
ise.

D.DroneEntrepr eneur:Thef ourtht ypeisDroneentrepr

eneurswhor ef
usetocopyor
useopport
unitiest hatcomeont heirway.Theyareconventi
onalinthei
rapproachand
sti
cktotheirsetpr act
icespr oducts,product
ionmethodsandi deas.Theystruggleto
survi
venottogr ow.Theymaybet ermedasLaggards.Insuchcasest heorganizat
ion
l
oosesmar ket,theiroper at
ionsbecomeuneconomi calandtheymaybepushedoutof
themarket
.

2.OntheBasisofTy
peofBusi
ness:Undert
hiscat
egor
ywecancl
assi
fyent
repr
eneur
s
asdescr
ibedbel
ow:

A.BusinessEntrepreneurs:Theyar etheent repreneur

swhoconcei veani deaf oranew
productorservi
ceandt hencreateabusi nesstomat eri
ali
zetheiri
deai
ntor ealit
y.They
taptheenti
refactorofpr oducti
ont odev elopanewbusi nessoppor t
uni
ty.Theymayset
upabi genter
pri
seorasmal lscalebusiness.Whent heyestabl
ishsmallbusinessunits
theyarecall
edsmal lbusinessentrepreneurs.Inamaj ori
tyofcases,entrepreneursare
foundinsmalltr
adingandmanuf actur
ingbusi ness.

B.TradingEntr
epreneur:Thereent r
epr
eneursunder t
aketradingact i
vi
ti
esandar enot
concer
nedwi t
ht hemanuf actur
ingwork.Theyi dent
if
iespotential
it
yoft hei
rproductin
markets,st
imul
atesdemandf orthei
rproductli
neamongbuy ers.Theymaygof orboth
domest i
candoverseastrade.Theseentrepr
eneursdemonst r
atedtheirabil
it
yinpushing
manyideasaheadwhi chpromot edthei
rbusiness.

C.Industr
ialEntr
epreneur:Industr
ialentrepr
eneurisessent
ial
lyamanuf acturerwho
i
denti
fi
est heneedsofcust omersandcr eatesproduct
sorser
v i
cestoserv
et hem.Heis
pr
oduct-ori
entedwhost ar
tsthroughani ndustr
ialuni
ttocr
eat
eapr oductl
ikeelectr
oni
c
i
ndustry
, t
exti
l
eunit,
machi netools.

D.Cor
por
ateEnt
repr
eneur
:Theseent
repr
eneur
susedhi
sinnov
ati
veski
l
linor
gani
zi
ng
andmanagi ngacor porat
eundertaking.Acorpor
ateundert
akingisaf orm ofbusi
ness
organi
sati
onwhi chisregi
ster
edundersomest at
uteorActli
keat rustregi
ster
edunder
theTrustAct,oracompanyr egi
steredundertheCompaniesAct.Thesecor por
atework
asseparatelegalenti
ty.Heisthusani ndi
vi
dualwhoplans,devel
opsandmanagesa
corpor
atebody .

E.Agr icultur
alEnt repreneur:Agri
cult
uralentrepreneurs ar
et hose who under
take
agricul
tural acti
vi
ties as t hr
ough mechani z
ation, ir
rigat
ion and applicat
ion of
technologiest oproducet hecrop.Theycov erabr oadspectrum oft heagri
cul
tural
sectorandi ncl
udeagr icult
ureandall
iedoccupati
ons.

3.AccordingtotheUseofTechnol ogy:Theappli
cati
onofnew t echnol
ogyi nv ar
ious
sector
soft henati
onaleconomyi sessenti
alf
orthefutur
egrowthofbusi ness.Wemay
broadl
yclassi
fytheseentr
epreneursonthebasisoftheuseoftechnologyasf ol
l
ows:

A.Techni calEntr
epreneurs:Withthedecli
neofj ointfami l
ybusi nessandt her i
seof
sci
ent i
fi
candt echnicali
nsti
tuti
ons,t
echni
call
yqual i
fiedpersonshav eenteredthef i
eld
ofbusi ness.Theseent repr
eneursmayent erbusi nesst ocommer ci
all
yexploittheir
i
nventionsanddi scover
ies.Theirmainassetist echnicalexpertise.Theyr aisethe
necessarycapitalandempl oyexpert
si nf
inanci
al,legal-mar ket
ingandot herareasof
business.Theirsuccess depends upon how t hey st ar
tpr oduct i
on and on t he
acceptanceoftheirproductsinthemarket
.

B.Non- technicalEntr
epreneur
:Non- t
echnicalentr
epreneur
sarethosewho arenot
concernedwi ththetechni
calaspectsoftheproductorservi
cei
nwhichtheydeal
.They
areconcer nedonlywithdevel
opingalt
ernat
ivemarketi
ngandpromot
ionalst
rat
egi
esfor
thei
rproductorser v
ice.

C.Pr ofessi
onalEntrepreneur:Professionalentrepr
eneurisan entr
epreneurwho is
i
nterestedinestabl
i
shi ngabusi nessbutdoesnothav eint
erestinmanagingi
tafter
establ
ishment.A professionalentr
epr eneursellsouttheexist
ingbusinessongood
ret
urnsandst art
sanot herbusinesswi t
hnew i dea.Suchanent r
epr
eneurisdynamic
andconcei v
esnewideast odev el
opal t
er nat
iveproj
ects.

4.Accordi
ngtoMot i
vat
ion:Moti
vat
ioni
st hemainforcet
hatpromot
est heeff
ortsofthe
entr
epreneurt
oachievehisgoal
s.Anentrepr
eneurismotiv
atedtoachieveorprovehis
excell
enceinthei
rperf
ormance.Accor
dingtomot i
vati
onwecancl assif
yentrepr
eneur
as:.

A.PureEntr
epreneur:Apureentrepreneuri
stheonewhoismoti
vat
edbypsy chol
ogi
cal
economical
,ethicalconsi
der
ations.Heunder t
akesanentr
epr
eneuri
alact
ivit
yforhis
personal
sati
sfacti
oninwork,egoorst at
us.

B.InducedEnt repr
eneur :Thi
stypeofent r
epreneurisonewhoi nducedtotakeupan
entrepreneur
ialtask due t othe pol
icy ref
orms oft he governmentt hatprovi
des
assistance,i
ncenti
ves,concessionsandotherf aci
li
ti
estostartav entur
e.Mostoft he
smal lscaleent
repreneursbelongtothiscategoryandenterbusinessduet ofi
nancial
,
technicalandseveralotherfaci
li
ti
esprovi
dedt othem byt
hev ari
ousagencyofGov t.to
promote ent
repreneur
shi
p.Today ,i
mportrest
ri
cti
ons and al
locat
ion ofpr
oduct
ion
quotast
osmal lunit
shaveinducedmanypeopl
etostar
tasmal l
scaleuni
t.

C.Mot i
vat
edEntrepr
eneur
:New entr
epreneur
sar emoti
vatedbythedesir
eforself
-
ful
fi
ll
ment.Theycomeintobei
ngbecauseoft hepossi
bil
i
tyofmakingandmarket
ing
somenewpr oductsf
ortheuseofconsumers.Theyaremotiv
atedt
hroughr
ewardl
ike
prof
it
.

5.Accor
dingtoGr owth:Thei ndust
ri
aluni
tsar
eident
if
iedashi
ghgr
owth,medium
gr
owthandl ow growthi ndust
ri
esandassuchwehav e‘Gr
owt
hEnt
repr
eneur
’and
‘
SuperGr
owthEntrepreneur.
’

A.GrowthEnt
repr
eneur:Henecessar
il
ytakesupahighgrowt
hindustryandchoosesan
i
ndustr
ywhichhassust ai
nedgrowthprospect
s.Growthent
repreneurshaveboththe
desi
reandabi
li
tytogrowasfastaslar
geaspossibl
e.

B.Super-
GrowthEntr
epreneur:Thiscategoryofentrepr
eneursist
hosewhohaveshown
enormousgrowthofperformancei nthei
rv ent
ure.Thegrowthperf
ormancei
sident
if
ied
bythehightur
noverofsales,
li
quidit
yoff unds,andprof
itabi
l
ity
.

6.Accor
dingtoEntr
epreneuri
alAct
ivi
ty:Basedonentr
epr
eneur
ialact
ivi
ty,
ent
repr
eneur
s
arecl
assi
fiedasnovi
ce,seri
al,
andportfol
ioent
repr
eneur
.

A.Nov i
ce Entr
epreneur:A nov ice i s someone who has st art
ed his/her fi
rst
entrepreneuri
alventure.A novice entrepreneuris an indi
vi
dualwho has no pr ior
businessowner shi
pexper i
enceasabusi nessf ounder,i
nherit
orofabusi ness,ora
purchaserofabusi ness.I
tisnotsimilartoear l
ystart
er;anovicecanalsobea50y ear
oldwi t
hov er25yearsofexper
ienceint heindustry.

B.A Ser i
alEntr
epreneur:A Ser
ialEntr
epr
eneurissomeonewhoi sdevotedtoone
ventureatati
mebutul ti
matel
ystart
smany .I
tist
heprocessofstar
ti
ngthatexcit
esthe
starter
.Oncethebusinessi
sestabli
shed,t
heseri
alentr
epreneurmayloseinter
estand
thinkofsel
li
ngandmov i
ngon.

C.Por tfol
io Entrepreneur
:A por tf
oli
o entrepreneuri san i ndi
vi
dualwho retainsan
ori
ginalbusi nessandbui l
dsapor tf
olioofaddi tionalbusinessesthroughinheri
ti
ng,
establi
shing,orpur chasi
ngthem.Apor tfol
i
oent r
epreneurstartsandrunsanumberof
businesses.Itmaybeast r
ategyofspr eadi
ngr iskori tmaybet hattheentr
epreneuris
si
mul taneousl yexcit
edbyav ar
iet
yofoppor t
unities.Also,theentr
epreneurmaysee
somesy nergiesbetweenthev entur
es.

7.Ot
herEnt
repr
eneur
s:

A.First-
Generati
onEntrepr
eneurs:Thi
scategoryconsist
softhoseentrepreneurswhose
parentsorf amilyhad notbeen i nt
o businessand wasi nto sal
aried serv
ice.The
boomi ngeconomyofI ndi
ahasl edtoamul t
it
udeofbusinessopportuniti
es,andwi th
deregulati
on,ithasbecomeeasi ert
osetupbusi nesses.Also,wit
hachangei nthe
mindsetoft hemi ddl
eclass,i
tisnow mor eacceptabletobecomeanent repreneur
.A
fi
rst-
generat
ion entr
epr
eneurisonewho st art
san i
ndustr
ialunitbymeansofan
i
nnov at
iveskil
l.Hei sessenti
all
yani nnov
at or
,combi
ningdiff
erentt
echnol
ogi
est
o
produceamar ketabl
eproductorser
vice.

B.Moder n Entr
epreneur
:A modern ent
repr
eneuris one who under
takes t
hose
busi
nesseswhichgowel lal
ongwi
tht
hechangingscenar
ioi
nthemarketandsuit
sthe
curr
entmarket
ingneeds.

C.WomenEnt repreneurs:Womenasent r
epr eneurshav ebeenar ecentphenomenoni n
Indi
a.Thesoci alnormsi nI ndi
ahadmadei tdiff
icultforwoment ohav eapr ofessi
onal
l
ife.Now t hishaschanged.Pr ogr
essivelawsandot heri ncentiveshaveal soboost ed
thepr esenceofwomeni nent r
epreneuri
alact i
vit
yi ndi versef i
elds.In1988,f orthefi
rst
time,thedef i
niti
onofWomenEnt r
epreneurs’enterprisewasev olvedthattermedanSSI
unit/i
ndustry-r
elat
edser viceorbusi nessent erpri
se,managedbyoneormor ewomen
entrepreneursinpr opri
etaryconcerns,orinwhi chshe/ theyi ndivi
duall
yorj oint
lyhavea
sharecapi talofnotl esst han51percentaspar tners/shar eholder
s/di rectorsofa
priv
atel i
mitedcompany/member sofacooper ativesoci ety,asaWomanEnt er
prise.

D.NascentEnt
repr
eneur:Anascentent
repr
eneuri
sani
ndi
vi
dualwhoi
sint
hepr
ocess
ofst
art
inganewbusiness.

E.Habitual
Entrepreneur
:Ahabit
ualentr
epreneuri
sanindiv
idual
whohaspri
orbusi
ness
ownershipexperience.Thenascententr
epreneurcaneit
herbeanoviceorahabitual
ent
repreneur.

F.Li
festy
leEnt r
epreneurs:Li
festy
leent
repr
eneurshavedevel
opedanenter
pri
set
hatf
it
s
thei
rindi
vidualci
rcumstancesandst yl
eofli
fe.Thei
rbasi
cintent
ioni
stoearani
ncome
fort
hemsel vesandtheirfamili
es.

G.Soci alEntr
epreneur :Socialentrepreneurisonewhor ecognizest hepar tofsociety
whichi sstuckandpr ov i
desnewway stogetitunstuck.Bei tdedicatedeffort
sforchild
upli
ftment,f i
ghti
ng f ort he conser v
at i
on ofAssam’ srainfor
est s,working forthe
bettermentoft heblindori ni
ti
ativestoempowerwomen,t heentrepreneur’
spassioni s
very strong.Fr eedom,weal t
h,exposur e,socialmobi l
it
y and gr eat
er indiv
idual
confidencearedr iv
ingt hi
shugewav eofsocialinnovati
onandent repreneurshi
p.After
allaretir
edwi t
ht heInef f
ici
encyofgov ernment
sandt heindif
ferenceofcor porat
e,and
wantt omakeachangeandt hisisthecaseev er
ywher e.61

St
agesofEnt
repr
eneur
shi
p

Stage1:TheBirt
hofYourSt ar
t-
Up:Thi sisthebeginni
ngoft heent r
epreneurshi
pcy cle
ofanentrepr
eneur.I
tisfi
l
ledwit
hmi xedemot ionsofexcit
ement,thri
llandfearall
att he
samet i
me.Itisti
mey ouareseekingindependenceint hebusi
nesswor l
dandr eadyt o
creat
eyourownnamei nthemarket.Youhav ehadami l
li
ondoll
arideaf oryourstar
tup,
butyouar enotquit
esurehow toexecut eitatthi
sst age.Butyouhav eaclearv i
sion
andaclearmissi
on.
Stage2:Sur vivi
ngandGr owi
ngYourBusi ness:Thisist hest agewherey ouhav e
successful
lylaunchedy ournew company ,andnow y ouarelookingforstr
ategi
est o
surviv
eintheindustry.Someent r
epreneur sl
ookforinv
estor
swhocoul df
undtheirstar
t
-upswhilesomeot herschoset ostayindependent
.Bothhavetheirprosandcons.Whi l
e
choosingtostayindependentwi l
lgivey oumorepowerandcont rolovery
ourstart
-up,i
t
willputyouinat rickyfinanci
alsit
uation.Themai naim ofthi
sst ageissurvi
val
.You
hav etosel
ectwhati sbestforyou.

Stage3: TheHy perStage:Wheny ourcompanyi sseei

nghy pergrowthsuddenly,
youwi l
l
notbei ncontroloftheoutcomes.Att hi
sstage,manyst art
-upsgointotr
oublebecause
entrepr
eneursst ar
tgetti
ngov erconfi
denthavingseensuccess.Theyf eelthattherei s
nothingtheycoulddowr ong.Thosewhogetcockyatt hisstageendupbeingbl i
ndsided.
Someent r
epreneursstartcel
ebrati
ngandenj oyinginthisstageandcompl etel
yforget
aboutt hei
rdesiredgoalsandmi ssi
ons.Tosur v i
vethi
sst age,youhavetobest able.
Yourstart-
uphast obest abl
e.

Stage4:ThePr i
meSt age:Wheny ourcompanyhascr ossedthepoi ntofsurvi
valand
stabil
i
tythatiswhenr eal successisr eached.Thisisthemor epredi
ctablegr
owt hphase.
Itisbesttostayinhisphaseasl ongasy oucan.Your eali
zethatotherbusinessesand
companiescanmakey oustrongerbecauset heythemsel vesarestrongenough.You
starttoexplorepart
ner shipswi t
hot hercompani es.Youf orminterdependedr el
ati
ons
withothersuccessfulcompani es.Thi skeepsy ourcompanyi nitspri
meandenhances
yourgrowthoppor t
unities.

St
age5:Agi ngandEar l
yDecli
ne:Asi t
uati
onmi ghtcomeupwher eoneofthemost
si
gnif
icantf acesofyourcompanymov esoutory ourpartner
shi
pswi t
hothersdont
workout .Someoneelsemighthavecomeupwi t
habet t
erideainthemarket
,andyour
i
deami ghthav ebecomeuseless.Thisleadstoy ourbusinessandcompanybei ng
di
srupted.Att hi
sstage,youcandooneoft wot hi
ngs:Youcanei t
herrestar
tyour
j
ourneyt ounwindwhatyoubegan,oryoucandisr
uptyourcompany.

Stage6:Ill
nessandRapidDecl i
ne:Thisphaseshoul dbeexpect edifyouaretoolatein
fi
guringouttheearl
ysignsofdecl i
ne.Thishappenswheny ourteam isnolongersur e
whatt heyaresupposedt odo,oritisunabletof i
xthepr oblemst hatcomeup.Ify ou
don’ttakeacti
onimmedi atel
y,i
twilll
eadtof ears,uncert
ainti
esanddoubt ssetti
ngi n.
Thecompanyi ssuretofailanddecl
ineifnoactionistaken.

Stage7:Deat h:Therearetimeswhennomat terhowhardwewor ktomakeast ar

t-
up
work,itjustf
ail
s.Somet i
mesy ouar
esodeepintothehol
ethathasbeencr eat
edduet o
bankruptcyorrestr
ainedcashflow,
thatt
her
eisnowayt odi
gy our
selfout.Atti
meslike
these,thebestopt i
oni stoshutyourbusi
nessdownbecausei tisleadingnowhere.
Takeitdownbef oreittakesyoudownwithi
t.

Ent
repr
eneur
ial
Cul
tur
e

Ther
e ar
e many adv
ant
ages t
o wor
king f
orsomeone el
se i
ncl
udi
ng secur
it
y,a
guaranteedpay check,andbei ngableto“tur
nof f”att
heendoft heday .Yettherear e
alsobenefit
st oculti
vatingasenseofowner shipamongy ourteam member s,i
ncl
uding
asenseofur gency,awi l
l
ingnesstotrynew thi
ngs,andanappet i
teforfastergr
owt h.
Ulti
mat el
y,youwanty ourteam t ocomeupwi t
hnew ideas,butyoualsowantt ohelp
them feelempower edt oactont hosei
deas.

1.Hir
eAspi r
ingEntr
epreneurs
It
’snocoincidencethataspir
ingentr
epreneursareat
tr
act
edtothestartupenv
ironment
.
Thesetypesar eeagert ogainexperi
enceandt endtoseeopport
unit
iesinmar ket
sor
the i
ndustrywher e other
s don’t
.Br i
ng them in,and empowerthem t oflex t
hei
r
entr
epreneurial
muscleswithinyourorgani
zati
on.

2.MakeEmpl oy
eesFeelLi
kePartner
s
Giveever
yoneinyourcompanyequit
y,andmot
ivat
ethem tovi
ewy ourcompanyasthei
r
company.Youreall
yneedtobeli
evethatev
ery
oneaty ourcompanyisyourpar
tnerand
tr
eatthem t
hatway.

3.EmpowerandEncourageEmployees
Empowery ouremployeeswit
hmor eresponsibi
l
iti
es,andencouragethem tomake
deci
si
onsont hei
rown.Encouragecreati
vi
ty,rewardyouremployeeswhentheymake
goodbusi
nessdecisi
onsandusetheirmist
akesasl ear
ningoppor
tuni
ti
es.

4.BeOpent
oMi
cro-
fai
l
ures

Itr
yt ocreat
eanenv i
ronmentinwhichempl oyeesknowt hatIam opentomicro-
fai
lur
es
i
nt hemacr o-
pursui
tofsuccess.Ifpeopleareafraidtotakeri
sks,thenwearen’
tgoing
togrowasqui cklyorsmart
lyaspossi bl
e.Butpeopl edon’tal
way sbel
iev
ethatmaking
mistakesisOK.Istri
vetogivethem proofthatitis,sot
heycanl etgoofanyfearsand
tr
ynewway sofgetti
ngthej
obdone.

5.Gi
veI
ncent
ivest
oEmpl
oyees

What’
sinitforthem?Ifthey’
repr oact
ive,gotheextramileandr eal
lyimpacty our
companyposi
ti
vel
y—whatdot heygetoutofit
?Incenti
vescanincl
uderaises,bonuses
(t
imeoff
,apaidholi
day
,et
c.),
st ockopti
ons,pr
omotionsandevenpublicrecognit
ionof
one’
seff
ort
s.

6.LeadbyExampl
e
Youneedtoleadbyexampl e,t
akeaf ewri
sks,andt
henl
etthoseideasmater
iali
ze.In
somecases,yourri
skswi l
lfai
l;y
ouneedt oshow y
ourt
eam thatfail
urei
sOK.They
shouldembr
aceit
,fai
lfastandgetbackonit
.Theonl
ywayyouremployeeswil
lfeell
ike
taki
ngrisksi
siftheyknow thatfai
l
ingwi
l
lnotbel
ookedati
nabadl
i
ght
.Justmake
sureeachfai
l
ureonlyhappensonce

7.GiveEmployeesaVoi ce
Bygi v
ingemployeesv oices,li
steningtotheirideasandi mplementi
ngt hem,y oucan
encourageacul t
ureof“ i
ntrapreneur
s.”Seeingt hattheyareani ntegralpartofthe
company— whet herit’
ssav ingmoneybyusi ngadi ff
erentvendororcr eat
inganew
processtostr
eamlineproduct i
on—wi l
lgi
vethem pr i
deinthecompany .

8.MakeI tSafetoShareIdeas
Createacul tur
ewher enew i deasarewelcomedandnotshutdown.Youwantev ery
employeet ofeell
ikeshecanmakeadi f
fer
encewithheridearat
herthandependonthe
founderormanagementt eam forthenextbigi
dea.Encourageyourt
eam toshareof
ten
andopenl ytoencourageintr
apreneurshi
p.– 

9.GiveEmpl oy eesOwner ship

Tocr eateacul tureofintrapr
eneurs,youhavet ogi
veempl oyeesownershi
pofprojects
andf ol
lowt heirrecommendat ions.Weencour ageanentrepr
eneuri
almindsetbyhaving
employ eest aket ur
nsbei ng“Sensei”andleadingapr of
essi
onaldevelopmenttrai
ning
session.Addi ti
onall
y,everyempl oyeeisexpectedtotakeapr oj
ectfr
om startt
of i
nish
everyquarter.

10.AskThem f orTheirRecommendation
Nearlyal
lempl oyeescanpresenti
nformation;r
ockst
arswil
lpreparearecommendati
on.
Whent eam member sbr i
ngbackinformat i
on,askthem,“Whatdoy out hi
nk?”You’l
l
createacultureofthi
nkingbeyondthecurrentstept
owardnextstepsandimpli
cat
ions.
It
’sthefi
rststeptowardcreati
ngint
rapreneurs.

11.CreateaSt artupCul t
ure
Ify
ouwantt ohav eintrapreneursi
nyouror gani
zati
on,youneedtofosteranatmosphere
ofentrepr
eneur ship.Thiscanbedonet hroughar ti
clesyousharewitht het
eam,weekly
meetings and,mosti mpor t
antl
y,ment orshi
p.Cr eat
ing a l
ibr
ary ofbooks about
entr
epreneurship hel ps as wel l.Ify ou cr eat
e and pr omotet he cul
tur
e,t he
entr
epreneuri
al spiri
twi t
hinyouremployeeswi l
lbeempower ed.
UNI
T2

SWOTANALYSI
S
[
S]ForSt
rengt
hs:
Twof
act
orscont
ri
but
etoy
ourst
rengt
hs:
 
abi
l
ity
 and 
resour
cesav
ail
abl
e.

Abi
l
ityi
sev
aluat
edon3count
s:

1.
 Ver
sat
il
it
y: 
your
 abi
l
ityt
oadapt
 t
oanev
erchangi
ngenv
ironment
.
2.
 Gr
owt
h: 
yourabi
l
ityt
omai
ntai
nacont
inui
nggr
owt
h.
3.
 Mar
ket
s: 
yourabi
l
ityt
openet
rat
eorcr
eat
enewmar
ket
s.
Thest
rengt
hofr
esour
ceshast
hreedi
mensi
ons:

1.
 Av
ail
abi
l
ity
: 
yourabi
l
ityt
oobt
aint
her
esour
cesneeded.
2.
 Qual
i
ty:
 
thequal
i
tyandup-
to-
dat
enessoft
her
esour
cesempl
oyed.
3.
 Al
l
ocat
ion:
 
yourabil
i
tyt
odi
str
ibut
eresour
cesbot
hef
fect
ivel
yandef
fi
cient
ly.
[
W]ForWeaknesses:
Yourweaknessesar
edet
ermi
nedt
hroughf
ail
ures,
def
eat
s,l
ossesandi
nabi
l
ityt
omat
ch
upwi
tht
hedy
nami
csi
tuat
ionandr
api
dchange.Theweaknessesmayber
oot
edi
nlack
ofmanager
ial
ski
l
ls,
insuf
fi
cientqual
i
ty,
technol
ogi
cal
backwar
dness,
inadequat
e
sy
stemsorpr
ocesses,
slowdel
i
ver
ies,
orshor
tageofr
esour
ces.Ther
ear
ethr
ee
possi
bleout
comest
otheanal
ysi
sofy
ourweaknesses.

1.
 Cor
rect
ion 
ofani
dent
if
ieddef
ect
.
2.
 Pr
otect
ion 
thr
oughcov
er-
upandpr
event
ionst
rat
egi
est
oreducet
heexposur
eofy
our
weaknesses.
3.
 Aggr
essi
on 
todi
ver
ttheat
tent
ionf
rom y
ourweaknesses.
[
O]ForOpport
uni
ti
es:
Oppor
tuni
ti
esar
eabundant
.Youmustdev
elopaf
ormul
awhi
chwi
l
lhel
pyoudef
ine
whatcomeswi
thi
ntheambi
tofanoppor
tuni
tyt
o f
ocusont
hosear
eas 
and 
pur
sue
t
hoseoppor
tuni
ti
es 
wher
eef
fect
ivenessi
spossi
ble.Thef
ormul
amustdef
ine
pr
oduct
/ser
vice,
tar
getmar
ket
,capabi
l
iti
esr
equi
redandr
esour
cest
obeempl
oyed,
r
etur
nsexpect
edandt
hel
evel
ofr
iskal
l
owed.

Weaknessesofy
ourcompet
it
ionsar
eal
sooppor
tuni
ti
esf
ory
ou.Youcanexpl
oitt
hem
i
ntwof
oll
owi
ngway
s:

1.
 Mar
ket
ingwar
far
e: 
att
acki
ng 
theweakl
eader
’sposi
ti
onandf
ocusi
ngal
lyouref
for
ts
att
hatpoi
nt,
ormaki
nga 
sur
pri
semov
e i
ntoan 
uncont
est
edar
ea.
2.
 Col
l
abor
ati
on:
 
youcanusey
ourcompl
ement
aryst
rengt
hst
oest
abl
i
sha 
str
ategi
c
al
li
ancewi
thyourcompet
it
or.
[
T]ForThr
eat
s:
Ext
ernal
thr
eat
sar
isef
rom pol
i
tical
,economi
c,soci
al,
technol
ogi
cal
(PEST)f
orces.
Technol
ogi
cal
dev
elopment
smaymakey
ourof
fer
ingsobsol
ete.Mar
ketchangesmay
r
esul
tfr
om t
hechangesi
nthecust
omerneeds,
compet
it
ors’
mov
es,
ordemogr
aphi
c
shi
ft
s.Thepol
i
tical
sit
uat
iondet
ermi
nesgov
ernmentpol
i
cyandt
axat
ionst
ruct
ure.

PROBLEMSFACEDBYENTPRENEURSHI
P

1.Fi
nanci
ng

2.LackofPl
anni
ng

3.Hi
ri
ngt
her
ightt
alent
4.Ef
fect
ivemar
ket
ingwi
thi
nal
i
mit
edbudget

5.Sel
f-
doubtanduncer
tai
nty

6.Deal
i
ngwi
thcr
it
ici
sm

7.At
tract
iveCust
omer
s

8.Maki
ngDeci
si
ons

9.Ti
meManagement

10.
Off
iceI
nfr
ast
ruct
ure

1.Fi
nanci
ng

Gett
ingfundsforyourbusi
nessi soneofthemaini ssuesthatallbusi
nessesfaceand
havetotackl
etosurvi
ve.Whil
ey oumighthavesavedinit
ialmoneyt ostar
tabusiness,
it
won’thel
py ousurvi
veforlong.Steadycashflow i
scr uci
alforbusinessestoendure,
andyoualwaysneedtohaveextrafundstotakecareofr ai
nydays.

Youneedt oensur eyouhav eawell-pr

eparedbusinessstrat
egyaheadoftime,whi
ch
consi
stsoff undssetasidefortheworst-
casescenario.Remember,whenyouarenew
i
nbusiness,y ouwil
lcert
ainl
yhav er
estri
ctedaccessi
bili
tyoff
unds,andal
sohenceyou
havemuchl essroom forerr
or.

2.LackofPl
anni
ng

I
t’simpressivethenumberofst art-upsfail
ssi ncethey“ f
ail
edt oremember ”todot he
planni
ng.Orper hapst heydi dst rategi
ze,y ettheydi dnotcov erallthebases.Key
l
ocat i
onslikesales,dev elopment ,andf undingar en’taft
erthoughts.Theyneedt oall
belongtoy ourbusinesspl anr i
ghtf rom t
hest art.Notjustthat,however,y
our equi
reto
preparefortheimpor t
antt hingsyoucannotpr eparefor,al
so.Thatis,evenifyoucannot
planforev er
ypossi bi
li
ty,y ourequiret orecognizewhaty ou’
remostl ikel
ytodowhen
(notif
)eventstakeanunf oreseentur n.

3.Hi
ri
ngt
her
ightt
alent

Parti
cul
arabi l
i
tiesar ei mpor t
antnotj ustf oryourbusi nesst o endur
ebutf orthe
expansion.Recognizi
ngt hespecifi
cabi l
it
iesy our equi
re– aswel lasexactlyhow to
obtai
nt hosecruci
alindividualsaboard–coul dbet heident
ifyi
ngconsiderjusthowwell
yourstart-
upgrows.Hol d-upsindiscoveri
ngt hebestempl oyeesar eexpensive.Fora
smallgr oup,the empl oymentpr ocedure consumes i mportanttime thatcould be
i
nvestedi nvar
iousot herl ocati
onsofbusi ness,yetont heot herhand,nothav i
ngthe
ri
ghtpeople can pr
oduce ext
reme bott
lenecks and al
so del
aythe r
oll
outofnew
product
sorservi
ces.Thi
sisoneoftheissuesthatnostart
-upcanaf
for
d,part
icul
arl
yin
theearl
ydays.

4.Ef
fect
ivemar
ket
ingwi
thi
nal
i
mit
edbudget

Somest art
-upsassumet heycani gnoremar keti
ngst rategiesent i
rel
yandhopet hat
wordofmout hwi l
lbesuf fici
ent.
 Beingast art
-up, i
t’
sessent ialtocreatevi
sibi
l
ityamong
yourconsumer s.Effectivemar ketingt echniqueswi t
hinal imit
edbudgetshoul dbe
madet oreachy ourt argetaudi ences.Yeti t’
sani ncorrectexpect ati
ontoplacey our
confi
denceincl i
entsfindingy ouunl essy oumakeacol l
ect i
veini
tiati
vetogrow them
withaproperl
ystructured str
ategytopr omot ey ourstart
-up.

5.Sel
f-
doubtanduncer
tai
nty

Forfir
st-t
imeent r
epr eneurs,
dealingwitht heuncer t
ainti
esoftheventurecanbeat ough
task.Theentrepreneur scanof t
enf eel
ul ti
matelyresponsibl
eforthesuccessorf ai
lure
oftheirvent
ure.Ther earealsomanydet oursanddev iat
ionsfr
om theinit
ial
plan.Allof
thi
scant akeat ollont heentr
epreneur.TheVUCAenv i
ronmentthatmostnew
businessesoperatei nshouldbeaccept edast hereali
tyandthechangesaccept ed
withoutmuchr esistance.Entrepreneursshouldr emaincalm andtruetotheirvi
sion.

6.Deal
i
ngwi
thcr
it
ici
sm

Wheny ouar eanent r

epreneur ,
crit
icism comesasapar tandpar cel ofthejob.Ev er y
decisi
onoft heent repreneurcanbemetwi thcr iti
cism bythet eam, partners,invest or
s,
customer s,andev entheirfamily.Evenest ablishedent repr
eneur ssuchasRat anTat a
mustdeal withthi
s.Thekeyi naccept i
ngcr i
ticism istosepar atethewast ef r
om the
tr
ulyhelpfulfeedbackt hatcanpr ov eval
uabl e.Oncey ouhav eev al
uat edthecr i
ti
cism for
i
tsv al
idit
y,youcanev enaskt ofollow-upquest ionsthatcanhel py ouunder standt he
cri
ti
cism bet t
er.Youmayev enbeappr eciatedf orthisorf i
ndsomeusef ulinsight.

7.At
tract
iveCust
omer
s

Getti
ngcust omersf oryourproductorservi
cecanbet hedifferencebet weensuccess
andf ail
uref
orabusi ness.Manybusi nesseshav estartedwithpower f
ulideashowev er
couldnotsur vi
vesimpl ybecausetheyfail
edt oreachther i
ghtcust omer s.Therear
e
severalwaysofr eachingtherightcust
omer s,howev ersocialmedi aandSEOhav e
provent obeusefultoolsformost .Theentrepreneurshouldinv estti
mei n
under st
andi
ngt hecust omerexpectati
onsandi fneededl everaget hei
rnet worktor
each
thecust omers.
8.Maki
ngDeci
si
ons

Decisi
on-makinginabusi nesssi tuati
oncanbedaunt i
ng,especiall
ywhenthereareso
manyt hi
ngsridi
ngoneachdeci sion.Ent
repreneur
scanf aceadi l
emmawhi lemakinga
decisi
on,especi
allywhent heyhav el
imit
edinformat i
on.Entrepreneur
smustalsoguar d
themselv
esagai nstgett
ingov erlyinvol
vedindecision-makingandcausingadel ay
whichmaydel ayt hepr
ogr ess.Theycandel egatethesmal lerdecisi
onst
ot hei
rteam of
expert
sandaskt hem t
ocomeupwi thalt
ernati
vesbef or
eev aluati
ngopt
ionsandf i
nall
y
decidi
ng.

9.Ti
meManagement

Eventhebestent repr
eneursstruggletomanaget heirti
mepr operl
y.Astheytakeup
rol
esoutoft heirexper
ti
se,theycanf i
ndi tchal
lengingtogett hi
ngsdone.The
chal
lengesof t
enpopupwhent heentrepreneurshav etodeal wit
hconfli
cti
ngpr i
ori
ti
es
andmustl etgooft hei
rperfect
ioniststr
eakt omov et hebusinessprocessalong.
Plot
ti
nggoal sandmaki ngschedul escanbeal i
fesaverhere.Allt
hattheyneedt odois
ensurethatthei
rsmal l
ergoalstieupwi ththelargergoalsandy ourbusinessvisi
on.

10.Of
fi
ceI
nfr
ast
ruct
ure

Yourwor kpl
acer entandassoci atedcostsar ethef irstt
hingsthaty oushouldl ookat
wheny oust ar
tt hinkingofcut ti
ngcost s,especiall
ywhenst arti
nganew busi ness.
Coworki ngspacesal l
ow busi nessowner sandst art-upstooperateinaf ul
l
y -
equipped
workplace wi t
houtwor r
y i
ng aboutset ting up thei rown private workplaces.One
si
gnifi
cantbenef itofcowor ki
ngi sthatitisthebestmet hodtooper ateinawor kpl
ace
wit
hmi nimalfi
nanci alinvestment.Byoper ati
ngina  coworkingspace,y oucanr uny our
busi
nesswi t
hf ewerexpensesascont r
astedtoset t
ingupanewwor kplace.
I
NTRAPENEUR

The empl oy
er provi
des such passionate j ob craf
ters,al
so known as i nsi
de
ent r
epreneurs,t he r
esour
ces and capabi li
ti
es needed to complet
et he proj
ect.
Intrapr
eneur salsogetthefreedom andf l
exibi
lit
ytowor kwit
houtworryi
ngaboutthe
risksorr ewards.Partoftheirtaskinvolvesexplori
ngcompanypol i
cies,anal
yzi
ng
mar kettrends,andmakingchangestoorintroducingnewconcepts.

Let
’shavealookatsomeoft
hemostdesi
rabl
echar
act
eri
sti
csofasuccessf
ul
i
ntr
apreneur
:

Cur
iosi
ty

I
t’
sthecur
iosi
tyt
oknowbey
ondt
heobv
ioust
hatl
eadst
hem t
owantt
oinnov
ate.

Cr
eat
ivi
ty

Intr
apreneur
s,i
ngeneral
,arehi
ghl
ycr
eati
vepeopl
e.Theythr
iveontheconstantneedt
o
createnewandinnovati
vesol
uti
onst
hatgoundet
ectedbybigorgani
zat
ions.

Pr
oact
ive

whatmakesI
ntrapr
eneursst
andoutf
rom ther
estoft
hecr
owdi
sthei
reager
nessand
abi
li
tyt
obeproacti
veinst
eadofr
eact
ive!

Passi
onat
e

Hav i
ngapassionf
ort
hingsisessenti
alf
orent
repr
eneur
sandInt
rapr
eneur
sali
ke.The
passionforpur
sui
ngagoalandseeingthr
oughit
scomplet
ionmakesoneasuccessf
ul
i
ntrapreneur
.

Vi
si
onar
y

Onl
yatr
uevi
sionar
ycanmakeasuccessful
int
rapr
eneur.Oneneedstohavetheknack
t
ohaveavi
sionaboutt
hecompany
’sfut
uretoworkbackwardsandturni
tint
oar eal
it
y!
Sel
f-
conf
idence

Justl
ikeanentrepr
eneur,evenani
ntr
apr
eneurwil
lhavealotofpeopl
etel
lthem t
hey
can’
tdoit;however
,theyneedtost
ayinthei
rconf
idence,
conti
nuetohavefait
hin
themselv
esandkeepcar r
y i
ngon!

Pr
oduct
ive

Thisonegoeswit
houtsayi
ng,butal
if
eofanint
rapreneur
,especial
l
yinthebegi
nni
ng,
requi
rest
hem t
obeont hei
rtoesandthei
rpr
oducti
vebestconstantl
y!

Adapt
abl
e

Asanint
rapreneur,
therewil
lconst
antl
ybeevolv
ingsit
uat
ions.I
nsuchanenv i
ronment
,
bei
ngadaptableisalmostanessent
ial
att
ri
bute,ori
tcanbecomediff
icul
tforoneto
pur
suethi
ski ndofroleandgai
nsuccessi
nit.

Net
wor
kingski
l
ls

Hav eyouevermetorknownofanent repreneurwhodoesnotnetworkordoesn’

tknow
atleasthal
fadozenpeopl efr
om theindustryon1stnamebasis?Probabl
ynot!Thi
s
tr
aitisasimportantf
oranintr
apreneuraswel ltol
iai
sewithv
ari
ouspeopleacross
networksforthebestresul
tsfort
heirproductorservi
ce!

Resi
l
ience

Lastbutoneoft hemostcrucial
onesistoberesi
l
ient
!Therewil
lbeobstacl
esthrownat
you,l
eft
,ri
ghtandcentre,
buty ouhavetoknowhowt ofal
landgetbackup!Posit
ivel
y
takecri
ti
cism andworkonitinsteadofl
ett
ingi
tbeyourdownfal
l!

DI
FFERENCEBETWEENENTPRENEURANDI
NTRAPRENEUR

BASI
SFOR
ENTREPRENEUR I
NTRAPRENEUR
COMPARI
SON

Meani
ng Entrepreneurref
erst
oa I
ntrapreneurr eferstoanemployee
personwhosetuphi sown oftheor ganizationwhoi si
ncharge
businesswi t
hanewi deaor ofundert aki
ngi nnovati
onsin
concept . product,service,processet
c.

Appr
oach I
ntui
ti
ve Rest
orat
ive
 BASI
SFOR
ENTREPRENEUR I
NTRAPRENEUR
COMPARI
SON

Resour
ces Usesownr
esour
ces. Useresour
cespr
ovi
dedbyt
he
company.

Capi
tal Rai
sedbyhi
m. Fi
nancedbyt
hecompany
.

Ent
erpr
ise Newl
yest
abl
i
shed Anexi
sti
ngone

Dependency I
ndependent Dependent

Ri
sk Bor
nebytheent
repr
eneur Takenbyt
hecompany
.
hi
msel
f.

Wor
ksf
or Creat
ingaleadi
ngposi
ti
oni
n Changeandr enewtheexi
sti
ng
themarket
. or
ganizat
ionalsyst
em andcult
ure.

CHALLENGESANDPROBLEMSFACEDBYWOMENENTREPRENEURSI
NINDI
AWHI
LE
STARTI
NGABUSI
NESS

1.Fewersect
orsar
eWomenf
ri
endl
y

Despit
et hepoli
ci
esandmeasur estopromot egenderequal i
ty,mensti
lldominat
e
I
ndia’
sent r
epr
eneuri
alecosyst
em.Accordingtoar ecentreport,mostwomen-owned
busi
nessesinthecountr
yoperateinlow-r
evenuesectors,whil
emencontrolthemore
prof
it
ablesect
orsli
kemanufactur
ing,
constr
ucti
on,andthelike.

Themal e-centri
cnatur
eofmanyi ndustr
iesal
soforceswomenent r
epreneur
stooper at
e
i
nsect orst hatarehi
stor
ical
l
ycalled“women-fr
iendl
y”,suchaseducati
on,apparel
,and
beaut
ycar e,amongothers.I
tli
mitsthei
rexper
ience,opport
uni
ti
es,andcapabil
i
tiestoa
si
gnif
icantext ent
.

2.LackofSoci
alandI
nst
it
uti
onal
Suppor
t

Mostwomenbusi
nessowner
sdon’
tgett
hesoci
alsuppor
ttheyr
equi
ret
oki
ckst
art
thei
rbusinessf r
om famil
ies,peer
s,andimmediat
eecosy
stems.Lackofmentor
shi
p
from t
hebusi nesscommuni tyisalsooneofthemainchall
engesfacedbywomen
entr
epreneursinthecount
ry.

Thecasei snodifferentwheni tcomest oi nst

it
uti
onalsupport
.Thought her
ear e
schemesf orpromot i
ngf emaleentrepr
eneurshi
p,manywomendon’ trecei
vet i
mely
guidanceorhelpf
rom aut hor
it
ies.Theabsenceofapr opersuppor
tnetworkadversel
y
i
mpact sthei
rconf
idenceandabi l
it
ytotakeri
sks.

3.PoorFundi
ngPr
ospect
s

Asunfai
rasi tmi ghtsound,t hefundingsceneinIndi
ahasmassi v
egenderbiases.
Women-l
edbusi nessesi nthecountrylackaccesstocapitalduet
ot heprej
udi
cesof
i
nvest
ors and otherf actor
s.Accor di
ng to a 
repor
tbyI nnoven Capi
tal
,ofallthe
compani
esthatreceivedfundingin2019,onl
y12%hadatl eastonef
emalefounder
.

ManyVCf i
rmsandangelinvestorsar erel
uctanttoinvestinwomen-l
edbusi
nesses,
whi
lebanksandfi
nanci
alinsti
tutionsconsiderwomenl esscredi
t-
wor
thy.Mor
eover,
manyIndi
anwomendon’thavepr opertyorassetsinthei
rname,whichcomesupasa
pr
obl
em whil
eappl
yi
ngforcol
lateralloansorpri
vatefi
nancing.

4.LackofAccesst
oPr
ofessi
onal
Net
wor
ks

Li
mi t
edaccesst opr of
essionalnetworksisanotheroneoft hebasicpr
oblemsof
womenent repreneursinIndia.Accordi
ngtotheGoogle-
Bainsurvey
,femal
ebusiness
ownersarel essi nt
egratedwi t
hf ormalandinformalnet
works.Thesurveyfurt
her
i
ndicatesthatov er45% ofur bansmal lbusi
nessownerssufferduet oi
nsuff
ici
ent
avenuesofnetwor kdevel
opment .

Studi
esalsoshow t
hatmostoft heexisti
ngprof
essionalnet
worksaredominatedby
men,makingitdi
ffi
cul
tforwoment oaccessornav i
gatesuchspaces.Consequent
ly,
theymissouton 
opport
unit
iest
ogr ow thei
rbusi
ness,fi
ndcoll
aborat
orsandvendors,
andbuil
dsoci
alcapi
tal
.

5.Pr
essur
etoSt
ickt
oTr
adi
ti
onal
GenderRol
es

Patr
iar
chycondit
ionsboth men and women to playcertai
n defi
ned genderroles.
Womenar eexpectedt
ocook,dodomest i
cchores,r
aisekids,car
efortheelderl
y,and
theli
ke.Juggl
i
ngf ami
li
alandprof
essi
onalresponsi
bil
i
tiesisachall
engeinitsel
f,and
evenmoresowheny ousetoutt
obuil
dabr and.
Thepressur
et osti
ckt ot
radi
ti
onalgenderr
olesi
samongt hemainchal
lengesfacedby
womenent r
epreneurs.Of
ten,t
heyareaskedtogiv
eupent r
epr
eneur
shipandtakeupan
“easy
”professionthathelpsthem focusmor eonf ami
lyandkids.What ’
smor e,a
womanwhochooseshercar eeroverot
hert
hingsi
slookeddownupon.

Al
soRead:
 
Probl
emsEnt
repr
eneur
sfacedwhi
l
est
art
ingast
art
up

6.LackofanEnt
repr
eneur
ial
Env
ironment

Entrepreneur
shipisal ongj ourneythatinv
olvesal otofl ear
ning,un-
learni
ng,and
upskill
ing.Anenvironmentthatexudesast rongentr
epreneuri
alspir
iti
scr ucialf
ora
persont obecomeasuccessf ulbusi
nessowner .However,manywomenof t
ensuffer
fr
om t helackofsuchaproductiveenv
ironment.

Tobeginwi t
h,manywomenar efor
cedtomanaget heirbusi
nessesfrom homeduet o
famil
i
alresponsi
bil
i
ties.Consequentl
y,t
heyloseoutonopportuni
tiestogoout,
int
eract
wit
ht hebusinesscommuni ty
,andbui l
dtheirmarketaccess.Italsoimpedestheir
l
earni
ngoppor t
uni
ti
es, accesstor
esourcesandmentors,andmore.

7.Li
mit
edMobi
l
ity

Li
mi t
edmobili
tyisoneoft hebasi
cproblemsof womenentrepr
eneurs 
i
nIndia.They
cannott
ravelaloneorstayathotel
sforbusinesspurposeswithoutworr
yingabout
safet
y.What’
smor e,manyhotel
sinIndiasti
l
ldon’tal
low woment ocheck-i
nunless
accompani
edbyaman!

Thoughmanyfinanci
all
yi ndependentwomenhav estar
tedinvest
inginvehi
cles,the
numberofwomenowni ngmot or
izedvehi
clesi
nIndi
aissti
llf
ewerthanmen.Allthese
fact
orscomet
ogethert
or estri
ctthemobil
it
yoffemal
ebusinessowners.

8.LackofEducat
ion

Oneoft hebi ggestcredent i

alsforamoder nentrepreneurishav i
ngpr i
orexper i
encei n
runningasuccessf ulbusi
ness.Tosuppl ementt helackofexper ienceinrunninga
businesst heent r
epreneurshoul dhaveprofessi
onal experi
enceofwor ki
ngint he
rel
evanti ndustryorabusi nessmanagementdegr ee.UnfortunatelyinIndi
a,the
educat i
onofwomendoesnotgeti t
sduei mportance. Thisresultsinmanybuddi ng
femal eentrepreneurslackingtheeducationrequir
edf orrunningasuccessf ulbusi ness.
Aswomenar eget ti
ngaccesst ohighereducat i
on,theyarelev el
i
ngt heplayi
ngf ield.

9.LowRi
sk-
Bear
ingAbi
l
ity

I
nor
dert
oinv
esti
nandr
unasuccessf
ulbusi
ness,
theent
repr
eneurneedst
obeabl
eto
bearsomei nherentri
sk.Womenof tendonothav efinancialf
reedom anddonothav e
practi
ceinmakingi ndependentdeci sions.Theyalsolackconfidenceintheirown
decisi
ons,whichmakest hem r
isk-av erse.Thi
sisgraduall
ychangi ngaswitheach
passinggenerat
ionwomenar et akingchar geofthei
rf i
nancesandmi ti
gatingtheri
sks.

10.Bal
anci
ngResponsi
bil
i
tiesbet
weenFami
l
y&Busi
ness

Familyisoftenseenasanext ensionofwomen.I tisexpectedfrom mar r

iedwoment o
entermot herhoodwi t
hinacer t
ainageandal soplayamaj orrol
einrearingtheirchi
l
dren.
Thi
sal soleadst othey oungmot hershavingtot
akeabr eakf r
om theircareer
sand
pri
orit
izetheirfamili
es.Runningabusi nessisademandingt askthatoftenputswomen
i
nconf li
ctwi t
ht hei
rfamilycommi tmentsandevenmakest hem feelguil
tyabout
pri
orit
izi
ngt heirbusi
ness.

11.St
if
fCompet
it
ion

Themoder neconomicenv ir
onmentandmar ketcondi ti
onshav emadet hecompet i
ti
on
betweenbusinessesfi
erce.Theyf acechall
engesf rom thei
rcompet i
torsaswel las
competit
ionwithi
nthei
rbusi nessforleader
shi p.Theyneedtopr ovetheirworthiness
everyst
epoft hewaytot hei
rcolleaguesandi nvestorstogainthei
rconfidence.They
alsoneedtomanageal otofout putwhi l
eusingl i
mitedresourcesforthesurvivalof
thei
rbusi
ness.

12.Li
mit
edI
ndust
ryKnowl
edge

Manyi ndust r
ysector ssuchasmanuf acturi
ngar est i
llseenasmen’ sforte.Womendo
nothav eaccesst ot heindust
rycontact
s, mechani sms, andknow- howt hatare
necessar yforrunningthebusinesssuccessf ul
ly.Despi tethegr adualbreakingof
stereotypes,ther
ei sstil
lageneral
lackofexposur eint hesear eas.Beingeducat edi n
STEM di sci
plines(science,t
echnol
ogy ,
engi neer
ing, andmat hemat i
cs)canbr idget he
gapt hatwomanent r
epreneurscur
rentl
yf ace.Digitall
iteracyhasal sobr oughtthe
revolut
ioninempower i
ngwoment ogai nther i
ghtt oolsingai ningtherightknowl edge.

Al
soRead:
 
7Usef
ulSt
art
upTi
psf
orWomenEnt
repr
eneur
s

13.Mi
ssi
ngRol
eModel
s

Oneoft hebi gchal

lengesthatbuddi ngwomenent repreneur
sfaceisthatt heydonot
haveenoughposi ti
v erol
emodel s.Becauseoft helackofrolemodels,iti
sdi ff
icul
tfor
them tov i
suali
zehowwoul dsuccessl ookli
ke.Theyal sohavediff
icul
tyfindingwomen
ment orsandcoacheswhocangr oom t hem andprov i
demeaningfulfeedback.They
alsostruggletofi
ndi nsi
ghtf
ularti
clesandl i
teratur
et hatcanprov
ideinsightsintothei
r
professionalandpersonalchal
lenges.
14.Soci
alConst
ruct

Duet othelong-standi
ngpatri
archalt
raditi
oninthecountry
, genderroleshavebeen
str
ingentl
ydesigned.Thewomenhav ebeenconf i
nedtoasuppor ti
veroleanditi
snot
expectedfrom them totakealeadint hebusi
nessandpr ofessionalworld.Alt
houghthi
s
vi
ewi schanging,itsti
ll
causesfrequentconfli
ctsandri
ft
si nt hesociall
ifeofbuddi
ng
womenent r
epreneurs.Therearesti
llpersi
sti
ngnegati
vester eotypesthatwomenar e
notfitf
orleadershiprol
es,whichneedt obebroken.

15.Saf
etyConcer
ns

Thepoorst ateofl awandor derhasgi venr i

set ocr i
meagai nstwomen.Thehost i
leand
ri
sky env i
ronmentposes ser ious challenges f orwomen ent r
epr
eneurs who need
mobilit
yt omanaget hei
rbusinessv entures.Thisl i
mi t
st hewomenf r
om reachingmany
l
ocationsont hei
rownandsomet i
mesnecessi tatest hecompanyofamanf orsimply
thei
rsaf ety.Wi t
hi mportantlaw reforms,v igi
lantl aw enforcement
,andanef f
ecti
ve
j
udici
alsy stem, t
hesi t
uati
oncanbesuf f
ici
entlyimpr ov edtocreat
easaferenvironment
forwomenat tempt i
ngtoenterentrepreneurialroles.

SOURCESOFFI
NANCE

1.Fundingfrom PersonalSavi
ngs
Fundingfrom personalsavi
ngsist hemostcommont y
peoffundingf
orsmall
busi
nesses.Thet woi ssueswi
t hthistypeoffundi
ngare1)howmuchpersonalsav
ings
youhav eand2)howmuchper sonal savi
ngsareyouwil
li
ngtori
sk.

I
nmanycases,ent
repr
eneur
sandbusinessownerspref
erOPM, or“
otherpeopl
e’
s
money
.”Thefourf
undi
ngsourcesbel
owar eal
lOPM sources.

2.BusinessLoans
Debtfinanci
ngisaf ancywayofsay ing“ l
oan.” Credi
tuni
onsandbanksof
ferf
unding
thaty
oumustr epayov ert
imewithinterest.Thiscancomeinthefor
m ofapersonal
l
oan,at radi
ti
onalbusinessloan,
ordi f
ferentloansbasedonthety
peofassetyouneed
topurchase(e.g.
,forequipment,l
and, orvehicles)
.

Youmustpr ovet
othelenderthatthel
ikel
i
hoodofyoupayingbackthebankl
oansis
hi
gh,andmeetanyrequirementstheyhave(e.
g.,
havi
ngcollat
eral
insomecases).Wi
th
abankloan,youdonotneedtogi v
eupequi t
y.However
,onceagain,
youwil
lhavetopay
i
nter
estalongwit
htheprinci
pal.

3.Fri
ends&Fami l
y
Abigsourceoffundingforentrepreneursi
sfri
endsandfamil
y.Theycanpr
ovi
de
fundi
ngintheform ofdebt(youmustpayi tback),
equi
ty(t
heygetsharesi
nyour
company),orevenahy br
id(e.g.,
ar oyal
tywher
ebytheygetpai
dbackv i
aapercent
age
ofy
oursal
es)
.

Fri
endsandfamilyareagr
eatsourceoffundi
ngsincet heygener
allytr
ustyouandar
e
easi
ertoconvi
ncethanstr
angers.However,t
hereistheriskofl
osingthei
rmoney.And
youmustconsiderhowyourr
elati
onshi
pwi t
ht hem mightsuff
eri
ft hi
shappens.

4.AngelInvestor
s
Angeli
nvest or
saregeneral
lywealthyi
ndiv
idual
slikefr
iendsandf amil
ymembers;
y ou
j
ustdon’tknowt hem (y
et)
.Atpresent,
thereareabout250,000privat
eangel
inv
estorsin
theUnit
edSt atesthatf
undmoret han30,
000smal lbusinesseseachyear
.

Mostofthese 
angelinvestors 
arenotmember sofangel gr
oups.Rathert
heyare
busi
nessowners,executivesand/orothersuccessf
ul i
ndi
vi
dualsthathavethemeans
andabil
i
tytofunddealst hatarepresent
edtot hem andwhichtheyfi
ndinter
est
ing.

Net
wor
kingi
sagr
eatwayt
ofi
ndanangel
inv
est
orf
ory
ourbusi
ness.

5.VentureCapi t
al
Venturecapitalfundingisasui t
abl
eoptionforbusi
nessesthatarebey ondthest ar
tup
peri
od,aswel last hosewhoneedal ar
geramountofv entur
ecapitalforexpansionand
i
ncreasingmar ketshar e.
 Ventur
ecapit
alist
s andVCfir
msar eprofessionali
nvestors
thataremor einvolvedwithbusinessmanagement ,andtheypl
ayasi gnifi
cantrolein
setti
ngmi l
estones, t
argets,andgiv
ingadv i
ceonhowt oensuregreatersuccess.

6.Gov
ernmentgr
ant
sandsubsi
dies
Governmentagenciesprovi
defi
nanci
ngsuchasgrantsandsubsidi
est hatmaybe
avai
labletoyourbusi
ness.The 
CanadaBusi
nessNetworkwebsite 
providesa
compr ehensi
veli
sti
ngofvari
ousgover
nmentprogr
amsatt hefederalandprovi
nci
al
l
evel.

7.Bankl
oans
Bankl oansarethemostcommonl yusedsourceoffundingforsmallandmedium-si
zed
businesses.Considerthefactt
hatal
l banksof
ferdif
fer
entadvantages,whet
herit
'
s
personali
zedservi
ceorcust omizedrepayment.I
t'
sagoodi deatoshoparoundandfind
thebankt hatmeetsy ourspeci
fi
cneeds.

I
ngeneral,y
oushoul dknowbanker sarelooki
ngf orcompanieswit
hasoundtr
ack
r
ecordandt hathaveexcell
entcredi
t.Agoodideai snotenough;i
thast
obebackedup
wit
hasolid 
businessplan.Star
t-
upl oanswil
lalsotypical
l
yrequi
reaper
sonal
guarant
ee
f
rom theentrepr
eneurs.

FI
XEDCAPI
TAL

Fi
xedcapi
tal
 
incl
udest
heasset
s,suchaspr
oper
ty,
plant
,andequi
pmentt
hatar
e
 neededt
ost
artupandconductbusi
ness,
evenatami
nimal
stage.

Thesour cesoff i
xedcapitalorl
ongterm 
finance 
are:
1.IssueofEqui tyandPr efer
enceshares.
2.IssueofRi ghtshar es.
3.Privateplacementofshar es.
4.Issueofdebent ures.
5.Terml oans.
6.Retainedear nings.
7.Leasef i
nancing

Sour
ce1.I
ssueofshar
es

I
ssueofshar esisthemostimport
antsourceoffi
xedcapi
tal
.Mostcompani
escol
l
ect
fi
xedcapi
talbyissui
ngshares.
Gener
all
y,therearetwot
ypesofshares,
thesear
edepict
edbel
ow.
 Theset wot y
pesofshar esarebr iefl
ydescr ibedasf ol
lows:
(i
)Equi t
yshar e:
1.Equi tyshar ecarri
esowner shipr i
ghtsoft hecompany ,
anditdoesn' tcarryafi
xedrate
ofdividend.
2.Equi tyshar esaremor epopul arthanpr eferenceshar es.Thef acevalueofanequi t
y
sharei sdecidedbyt hecompany .
3.Thi sshar eisalsocal ledordinaryshar e.Thisisbecauseshar eholdersar et
hereal
owner soft hecompany .
4.Theshar ecapit
al i
sal socalledr i
skycapi tal
.Thi sissobecauset her eisnoguarantee
forget t
ingadi vi
dend.Si milarl
y, i
fthecompanywi ndsuporshutdown, t
herei
sno
guarant eeforgettingr epaymentof  capit
al .
(i
i
)Pr eferenceshar e:
Apr eferenceshar ecar riesowner shipr i
ghtsoft hecompany ,anditcar r
iesafixedrat
e
ofdiv i
dend.
Apr eferenceshar ehast womai nadv antagesov erequi tysharesv i
z.;
1.Theygetaf i
xedrat eofdivi
dendbef oretheequi t
yshar es,
and
2.I fthecompanywi ndsuporshutdown, theygetr epay mentofcapi t
al befor
etheequit
y
shares.

Sour
ce2.I
ssueofRi
ghtshar
es

Rightsissueofshar esmeanst hecompanyi ssuessharest oit

sexisti
ngshar eholder
s.
Accordingt opr ovisionsofl aw,acompanymustf ir
stissueshar est oit
sexi sti
ng-
shareholders.
Iftheexisti
ngshar ehol dersdonotwantt obuyt heshares,t
hent hecompanycansel li
ts
sharestot heoutsider s.
Theexist i
ngshar eholder saregivenfir
stpreferencetobuyt hecompany '
sf r
eshissueof
shares.
Inanev entofrightsi ssueofshar es,theshar ecapitali
ncreasesbutt henumber sof
shareholdersdonoti ncrease.
Generall
y ,r
ight
sissuei sv er
yeconomi caltocollectf
ixedcapital
.
Sour
ce3.Pr
ivat
epl
acementofshar
es

Privat
epl acementofshar esmeanst hecompanysel li
tsshar esdi r
ect
lyt
oasmal l-
groupofi nvestorsli
ke 
bank,i
nsurancecompanies,fi
nanciali
nstitut
ions,
 
mutualfunds,
etc.
Her e,
thecompanydoesnotsel lthesharestothepubl
ic.
Itisav er
ysimpl eandeconomicalmet hodasitdoesnotinvolv
ei ssueofaprospectus,
noneedofbr okersandunderwr
iter
s,etc.
Fixedcapitali
salsocoll
ectedfr
om priv
at epl
acementofshares.

Sour
ce4.I
ssueofdebent
ures

Debentur
er epresentsthe borr
owed capi t
alofthe company.Fi
xed capi
tali
s al
so
col
lect
edfrom issueofdebentures.
Debentur
e holders getint
erestf orthe capi
talcont
ri
but
ion made bythem tothe
company.
Debentur
eholdersarethelong-t
erml ender
softhecompany.

Sour
ce5.Ter
mloans

Termloansar esecuredorunsecur edloansobtainedbyt hecompany .Thecompany

hastopayinter
estont heseter
ml oans.
Thecompanyget sterml oansfr
om banksandfinancial
inst
itut
ionsli
keDeutsche,HSBC,
YES,I
CICI,HDFC,AXIS,andsoon, bysubmitt
ingit
spr oj
ectanalysi
s r
eport
.
Thesharehol
dersdonotl oseownershipcont
rolofthecompanybyobt ai
ningter
ml oans.
Fi
xedcapitali
salsocollectedf
rom ter
mloans.

Sour
ce6.Ret
ainedear
nings

Retai
nedearningsisapar tofundist
ributedprofi
tsearnedbyt hecompany.Si
nce,the
companydoesnotdi stri
buteallofit
spr ofi
tstotheshareholders.
Companysav esapart
ofit
sprof
its.Thissavedpr ofi
tiscal
ledretainedearni
ngs,self
-fi
nanci
ngorploughi
ng
backofprofi
ts.I
tisveryeconomi cal
becausenoi nt
erestpaymentistobe
made.Ret
ainedear ni
ngsist hecheapestsour ceoffi
xedcapital.

Sour
ce7.Leasef
inanci
ng
 I
nl easef i
nanci ng,t
her earetwopar ti
es,viz;
1.Lessor ,whoi stheownerofan  asset,and
2.Lessee, whoi stheuserofanasset .
Thel essori st heownerofanasset .Lessorgi vestheassetonal ease-basistothe
l
essee.Thel esseeusest heassetandi nr et
urn,paysr entforusingthatassett othe
l
essor .
The l essorand l essee ent erinto an agr eement .This agreementi s call
ed lease-
agreement .
Thel esseeneednotspends  money  f
orpur chasingtheasset s.Lesseehir
es( takes)t
he
assetonal easeorr entsothathe/ shecanuset heav ail
ablemoneyf orwor ki
ngcapital
requirement s.
Leasef inancingisv erysimpleandeconomi cal.
So, t
hesear et hesour cesoffixedcapitalorlongt er
mf inance.

Themai n characteristi
cs orf eatur
esoffi
xedcapi
tal
arel
i
stedasf
oll
ows:
1.Pur chaseoff i
xedasset s.
2.Pr omotionandexpansi onof  
busi
ness.
3.Lowl i
quidi
ty.
4.Per manenti nnat ure.
5.Pr i
mar ysour ces.
6.Amountoff i
xedcapi tal.
7.Long- t
er m needsofbusi ness.
8.Sour ceofweal t
handr isk.
9.Sour ceofpr ofit
.
10.Appreciati
onanddepr eciation.
11.Miscell
aneousf eatures.

1.Pur
chaseoff
ixedasset
s

Fi
xedcapi t
ali s capi
tal 
i
nv estedinfixedassets.Inotherwords,i ti
scapi
talusedf
or
pur
chasingfixedasset s.
Thefi
xedasset scanbegr oupedundert womai ncat
egori
es,vi
z.,
1.Tangiblefi
xedasset s 
includes 
land,buil
ding,
plant
,machiner
y,etc.
2.Int
angiblefixedasset s i
ncludespatents,copyri
ght
s,goodwil
l
,soon.

2.Pr
omot
ionandexpansi
onofbusi
ness
 Fi
xed capitalisrequired f
orpromoti
ng businessand i
tsanci
ll
ary(
supplement
ary
)
activ
iti
es.
Alongwi thpromoti
on,f i
xedcapit
alal
sohel psi nt
heexpansi
on,moder
nizati
onand
di
v ersi
fi
cat
ionofbusiness.

3.Lowl i
quidi
ty
Ingener al,
thedef i
niti
onofliquidit
ycanbest atedasfol
lows:
“Anythingwhi chi seasilysaleableint he market 
andgetsanexpect edval
ue(
pri
ce)i
s
saidtobel iquidable.Thati
s, i
thasal iquidi
ty.
”
Lowl i
qui di
tymeanssomet hing, whichisnoteasi l
yreal
i
zable(i
.e.sal
eabl
e).
Fixedcapi talisusedt oacqui re( purchase)f i
xedassets.Theseassetshav
eal ow
l
iquidit
ybecauset heyarenoteasi lysaleable.

4.Per
manentinnatur
e
Fi
xedcapitalhasal ong-
last
ingexistence.Iti
sper
manentinnat
ure.I
tcannotbe
wit
hdrawnfrom thebusi
ness.Howev er,itcanbewi
thdr
awnonl
ywhenthebusiness
cl
osesorshutsdown(i.
e.l
iqui
dates)
.

5.Pri
mar ysources
Pri
marysour cesoffixedcapi t
al ar
eshares,debent uresandl ong-
ter
ml oans.
I
nt heaccumul atedi
.e.totalfi
xedcapital,
1.The owner sfunds comef rom shares.
2.The fixedborrowedf unds comef rom debentures.
3.The long-t
erml oans areobtainedfrom fi
nancialInsti
tut
ions.
Oftheabov ethreesour ces,
shar esarethemainsour ceoffixedcapit
al.

6.Amountoffixedcapi t
al
Theamountoff i
xedcapi taldependsonthefol
l
owi
ngf
act
ors:
1.Natureofbusiness.
2.Sizeofcompanyor  
organizati
on.
3.Locationofbusiness.
4.Business-
rel
atedinfrastruct
urefaci
l
iti
es.
5.Met hodsof 
production.

7.Long-
ter
m needs
Fi
xedcapit
alisusedt
omeett
hel
ong-
ter
m needsoft
hebusi
nesssomeofwhi
char
e
 l
ist
edbelow.
1.Amal gamat
ion.
2.Mer ger.
3.Foreigncol
l
aborat
ion.
4.Sharingorl
easi
ngoftechnol
ogi
es.

8.Sourceofwealthandr i
sk
Fixedcapi
tali
sasour ceofweal th.Howev er
,iti
sal
soasourceofr
isk.Thi
sisbecausei
t
causes:
1.Depr eci
ati
onoff i
xedassets.
2.Out f
lowofinterestcost
.
3.Nor malrepair
sandmai ntenances.
4.Cont i
ngenciesanduncertai
ntiesattachedtothebusi
ness.

9.Sourceofpr of i
t
Profi
tisthedi f
ferencebet weensalepri
ceandcostofpur chase.
Fixedassetsar eal sosourcesofpr of
it
.Theseassetshel pinearningprof
itthr
oughthe
saleofproduct s.
Howev er,f i
xed asset s cannotear n a profi
tby t hemselves.They t ake hel
p of
foll
owing 
factor sofproduction 
toearntheprofi
t:
1.Raw- mat eri
als.
2.Labour .
3.I nf
rastr
ucturef acil
i
tiescoveri
ngsupplyofelect
ri
cit
y,fuel,
water,etc.

10.Appreci ati
onanddepreciati
on
Themeani ngoft wotermsviz.,
appreciati
onanddepreciati
onar econt
raryt
oeachother.
Thei
rindividual meaningi
sst at
edbelow.
1.Appr eciation meansanincreaseinthev al
ueofanassetbei ngused.
2.Depr eciation 
indi
catesadecreaseint heval
ueofanassetbei ngused.
Fi
xedasset scanunder goeitheranappr eci
ati
onordepr eciat
ionoveraperiodofti
me.
Thev al
ue( pri
ce)ofsomef ixedassetsl i
kelandappreciateaftersomeperiodofti
me.
Howev er,thev al
ueofotherf i
xedasset ssuchasbui lding,machinery
,furni
tur
e,et
c.,
depreci
ateaf t
ersomeperiodoft i
me.

11.Miscell
aneousfeat
ures
Miscel
laneousfeat
uresoffi
xedcapit
alar
easf
oll
ows:
 F i
xedcapitali
mprovesfi
nanci
alanal
ysi
s.
 I
tprovi
desalong-
ter
m busi
nessstabi
l
ity
.
 I
thelpsinget
ti
ngter
mloans.
 I
tal
soi mprov
esequi
tycapi
talr
ati
o.

WORKI
NGCAPI
TAL
Wor
kingcapi
tal
isr
equi
redbyal
lbusi
nessest
osuppor
tdai
l
yoper
ati
onsandact
ivi
ti
es,
whi
chi
ncl
udeobl
i
gat
ionsandexpendi
tur
e,andi
sasi
gni
fi
cantcomponentof
oper
ati
onal
li
qui
dit
y.I
naddi
ti
ont
ofi
xedasset
s,suchasapl
antandmachi
ner
y,
equi
pment
,andpr
oper
ty,
wor
kingcapi
tal
isanessent
ial
componentofoper
ati
onal
capi
tal
.

Tounder
standwor
kingcapi
tal
bet
ter
,letusf
ir
stt
ryt
ocompr
ehendt
hephr
aseswor
king
capi
tal
shor
tfal
landshor
t-
ter
m bor
rowi
ngs.I
nthei
rfi
nanci
alst
atement
s,busi
nesses
descr
ibecur
rentasset
sandcur
rentl
i
abi
l
iti
espr
oject
edt
ober
ecogni
zedorr
esol
ved
dur
ingt
her
egul
aroper
ati
ngcy
cle,
i.
e.,
12mont
hsaf
tert
hebal
ancesheetdat
e.That
’s
t
heor
igi
noft
henot
ionofwor
kingcapi
tal
.

Ty
pesofWor
kingCapi
tal

1.
 Per
manentWor
kingCapi
tal

Thi
sisanot
hert
ermf
orf
ixedwor
kingcapi
tal
.Thet
erm“
per
manentwor
kingcapi
tal
”
r
efer
stot
hebar
emi
nimum cur
rentasset
snecessar
ytokeepaf
ir
m sol
vent
.Thesi
zeof
f
ixedwor
kingcapi
tal
ispr
opor
ti
onal
tot
hemagni
tudeandgr
owt
hoft
hebusi
ness.Most
oft
het
ime,
long-
ter
mfi
nanci
alopt
ionsar
eusedt
ogetf
ixedwor
kingcapi
tal
.

2.
 Var
iabl
eWor
kingCapi
tal

I
tissi
mpl
ytheamounti
nvol
vedi
nacompanyent
erpr
isef
orabr
iefper
iod.Addi
ti
onal
l
y,
i
tmaybet
houghtofasi
ncr
easedwor
kingcapi
tal
uti
l
izedt
oadj
ustf
orpr
oduct
ionand
sal
esoper
ati
onsv
ari
ati
ons.I
nIndi
a,v
ari
abl
ewor
kingcapi
tal
issomet
imesr
efer
redt
o
ast
empor
arywor
kingcapi
tal
.

3.
 Reser
veMar
ginWor
kingCapi
tal

I
tisaddi
ti
onal
moneynecessar
ytocov
erunknownf
utur
eri
sks.I
tisal
sor
efer
redt
oas
“
cushi
onwor
kingcapi
tal
”si
ncei
tassi
stsi
nmi
ti
gat
ingunj
ust
if
iedbusi
ness-
rel
atedr
isks,
al
l
owi
ngbusi
nessest
ocont
inueoper
ati
ngdur
ingacr
isi
s.

4.
 Seasonal
Var
iabl
eWor
kingCapi
tal

Af
ir
m needsaddi
ti
onal
wor
kingcapi
tal
thr
oughoutt
hepeakseasonst
oful
fi
ll
cli
ent
demand.Busi
nessowner
sfr
equent
lyseekf
urt
herf
inanci
alai
dint
hesei
nst
ances.I
n
I
ndi
a,t
hewor
kingcapi
tal
arr
angedi
nthi
smanneri
sref
err
edt
oasseasonal
wor
king
capi
tal
.

6.
 Regul
arWor
kingCapi
tal

Per
manentwor
kingcapi
tal
ist
ypi
cal
l
ynecessar
yfort
heusual
cour
seofbusi
nesst
o
guar
ant
eet
hewor
kingcapi
tal
cycl
erunssmoot
hly
.Thet
erm“
regul
arwor
kingcapi
tal
”
r
efer
stot
hesmal
l
estamountaf
ir
mrequi
rest
oconducti
tsdai
l
yact
ivi
ti
es.

7.
 Speci
alVar
iabl
eWor
kingCapi
tal

Thi
sfor
m ofwor
kingcapi
tal
isbestdef
inedast
headdi
ti
onal
wor
kingcapi
tal
requi
redby
af
ir
mtoaddr
essspeci
fi
ccondi
ti
ons.Theuni
quev
ari
abl
ewor
kingcapi
tal
canbeused
f
orv
ari
ouspur
poses,
li
kef
undi
ngt
hei
ntr
oduct
ionofnewgoods,
financi
ngmar
ket
ing
campai
gns,
anddi
sast
ermanagement
.

8.
 Gr
ossWor
kingCapi
tal

Thet
erm“
grosswor
kingcapi
tal
”ref
erst
othet
otal
val
ueofabusi
ness’
scur
rentasset
s
(
asset
sconv
ert
ibl
etocashwi
thi
nay
earorl
ess)
.Cash,
account
srecei
vabl
e,i
nvent
ori
es,
shor
t-
ter
minv
est
ment
s,andmar
ket
abl
esecur
it
iesal
lconst
it
utegr
osswor
kingcapi
tal
.

9.
 NetWor
kingCapi
tal

I
tis,
wit
houtadoubt
,acr
it
ical
sour
ceofoper
ati
ngcapi
tal
.Theamountbywhi
chaf
ir
m’s
t
otal
asset
sexceedi
tscur
rentobl
i
gat
ionsi
sref
err
edt
oasnetwor
kingcapi
tal
.Insi
mpl
e
t
erms,
thi
sist
hedi
ff
erent
ial
bet
weent
heent
ir
ecur
rentasset
sandcur
rentl
i
abi
l
iti
esofa
cor
por
ati
on.

SHORTTERM SOURCESOFWORKI
NGCAPI
TAL
Shor
t-
ter
m sour
cesofcapi
talmayf
urt
herbedi
vi
dedi
ntot
wocat
egor
ies–I
nter
nal
Sour
cesandExter
nal
Sources.

Theshor t
-t
ermi nt
ernal
sourcesofwor kingcapit
alincl
udeprovi
sionsf ort
axand
divi
dends.Theseareessential
l
ycur r
entliabi
li
ti
esthatcannotbedelay edbeyondapoint.
Allcompaniesmakeasepar atepr ovi
sionformakingthesepayment s.Thesefundsare
avail
abl
ewi ththecompanyunt i
lthesepay mentsaremade.Hence, t
hesear ecalledt
he
i
nternalsourcesofworkingcapit
al.Howev er
,thi
sv al
ueisrel
ati
velysmal l
andt husnot
thatsi
gnifi
cant.

Ontheotherhand,theshort-
term exter
nalsourcesofworkingcapitali
ncl
udecapi
tal
fr
om ext
ernalagenciesl
ikebanks, NBFCs,orotherfi
nancialent
iti
es.Someofthe
pri
marysourcesofshort-t
erm ext
er nal
sourcesofwor ki
ngcapitalarel
ist
edbel
ow:

 Loansf
rom Commer
cial
Banks:
Busi
nesses,
most
lyMSMEs,
cangetl
oansf
rom
commer
cial
bankswi
thorwi
thoutof
fer
ingcol
l
ater
alsecur
it
y.Ther
eisnol
egal
f
ormal
i
tyi
nvol
vedexceptcr
eat
ingamor
tgageont
heasset
s.Repay
mentcanbe
madei
npar
tsorl
umpsum att
het
imeofl
oanmat
uri
ty.Att
imes,
banksmay
of
fert
hesel
oansont
heper
sonal
guar
ant
eeoft
hedi
rect
orsofacount
ry.They
gett
hesel
oansatconcessi
onal
rat
es;
hencei
tisacheapersour
ceoff
inanci
ng
f
ort
hem.Howev
er,
thef
li
psi
dei
sthatget
ti
ngt
hisl
oani
sat
ime-
consumi
ng
pr
ocess.
 
 Publ
i
cDeposi
ts:
Manycompani
esf
indi
teasyandconv
eni
entt
orai
sef
undsf
or
meet
ingt
hei
rshor
t-
ter
mrequi
rement
sfr
om publ
i
cdeposi
ts.I
nthi
spr
ocess,
the
compani
esi
nvi
tet
hei
rempl
oyees,
shar
ehol
der
s,andt
hegener
alpubl
i
cto
deposi
tthei
rsav
ingswi
tht
hecompany
.Aspert
heCompani
esAct1956,
compani
escanadv
ert
iset
hei
rrequi
rement
sandr
aisemoneyf
rom t
hegener
al
publ
i
cagai
nsti
ssui
ngshar
esordebent
ures.Thecompani
esof
ferhi
gheri
nter
est
r
atest
hanbankdeposi
tst
oat
tractt
hegener
alpubl
i
c.Thebi
ggestoft
hissour
ce
off
inanci
ngi
sthati
tissi
mpl
eandcheaper
.Howev
er,
itsdr
awbacki
sthati
tmay
notbeav
ail
abl
edur
ingt
hedepr
essi
onandf
inanci
alst
ri
ngency
.
 Tr
adeCr
edi
t:Compani
esgener
all
ysour
cer
awmat
eri
alandot
heri
temsf
rom
suppl
i
ersoncr
edi
t.Theamountpay
abl
etot
hesesuppl
i
ersi
sal
sot
reat
edasa
sour
ceofwor
kingcapi
tal
.Usual
l
y,t
hesuppl
i
ersgr
antt
hei
rbuy
ersacr
edi
tper
iod
of3t
o6mont
hs.Thus,
theypr
ovi
de,
inaway
,shor
t-
ter
mfi
nancet
othe
pur
chasi
ngcompany
.Theav
ail
abi
l
ityoft
radecr
edi
tdependsonv
ari
ousf
act
ors
l
i
ket
hebuy
er’
sreput
ati
on,
financi
alposi
ti
on,
busi
nessv
olume,
anddegr
eeof
 compet
it
ion,
amongot
her
s.Howev
er,
whenabusi
nessav
ail
str
adecr
edi
t,i
t
st
andst
oloset
hebenef
itofcashdi
scount
,whi
cht
heywoul
dear
nift
heymake
t
hepay
mentwi
thi
n7t
o10day
sofmaki
ngt
hepur
chase.Thi
slossofcash
di
scounti
str
eat
edasani
mpl
i
citcostoft
radecr
edi
t.
 Bi
l
lDi
scount
ing:
Justasbusi
nessbuy
sgoodsoncr
edi
t,t
heyof
fercr
edi
ttot
hei
r
buy
ers.Thecr
edi
tper
iodmayv
aryf
rom 30day
sto90day
sandsomet
imes
ext
ends,
evenupt
o180day
s.Dur
ingt
hisper
iod,
thecompanyf
undsgetbl
ocked,
whi
chi
snotgood.I
nst
eadofwai
ti
ngt
hatl
ong,
sel
l
erspr
efert
odi
scountt
hese
bi
l
lswi
thabankorNBFC.Thef
inanci
alent
it
ychar
gessomeamountas
commi
ssi
on,
cal
l
ed‘
discount
’andmakest
hebal
ancepay
mentt
othesel
l
ers.
Thi
s di
scount
 compensat
est
hem f
ort
het
imegapbet
weendi
sbur
singand
col
l
ect
ingt
hemoneyont
hemat
uri
tyoft
hebi
l
l.Thi
s‘di
scount
’char
gedbyt
he
banki
str
eat
edast
hecostofr
aisi
ngf
undst
hrought
hismet
hod.Busi
nesses
wi
del
yuset
hismet
hodf
orr
aisi
ngshor
t-
ter
m capi
tal
.
 BankOv
erdr
aft
:Somebanksof
fer
thei
rest
eemedcust
omer
sandcur
rentaccount
hol
der
saf
aci
l
ityt
owi
thdr
awacer
tai
namountofmoneyov
erandabov
ethe
f
undshel
dbyt
hem i
nthei
rcur
rentaccountwi
tht
hebank.Thebankchar
ges
i
nter
estont
heamountov
erdr
awnandt
heper
iodi
tiswi
thdr
awn.Theov
erdr
aft
f
aci
l
ityi
sal
sogr
ant
edagai
nstsecur
it
ies.Thebankset
sthi
sli
mitandi
ssubj
ect
t
orev
isi
onany
time,
dependi
ngupont
hecust
omer
’scr
edi
twor
thi
ness.
 Adv
ancesf
rom Cust
omer
s:Oneef
for
tl
esswayt
orai
sef
undst
omeet
theshor
t-
t
ermr
equi
rementi
stoaskcust
omer
sforsomepay
menti
nadv
ance.Thi
s
adv
anceconf
ir
mst
heor
derandgi
vesmuch-
neededcasht
othebusi
ness.
 No
i
nter
esti
spay
abl
etot
hecust
omerf
ort
hisadv
ance.Ev
eni
fanybusi
nesspay
s
i
nter
est
,iti
sver
ynomi
nal
.Hence,
thi
sisoneoft
hecheapestsour
cesofr
aisi
ng
f
undst
omeetcompani
es’
shor
t-
ter
m wor
kingcapi
tal
requi
rement
s.Howev
er,
t
hisi
spossi
bleonl
ywhent
hecust
omer
sdonotchooset
het
ermsofsel
l
ers.

LONG-
TERM SOURCESOFWORKI
NGCAPI
TAL
Whenthecompaniesr
equir
ef undsf
ormorethanoneyear
,itmakessensetogof
or
l
ong-
term sour
ces,
astheyaregener
all
ycheapert
hanshor
t-ter
m sour
ces.
 

Likeshort
-t
erm sources,l
ong-
term sour
cesmayalsobeclassi
fi
edasint
ernal
and
exter
nalsources.Retai
nedprofi
tsandaccumulat
eddepreci
ati
onarei
nter
nalsour
ces
whollyear
nedandownedbyt hecompanyi t
sel
f.Thesef
undsareavai
l
abletoa
companywi
thoutanydi
rectcost
.

Theext
ernal
sour
cesofl
ong-
ter
m sour
cesofwor
kingcapi
tal
arel
i
stedbel
ow:

 Shar
eCapi
tal
:TheCompanymayr
aisef
undsbyof
fer
ingt
hepr
ospect
ive
shar
ehol
der
sast
akei
nthei
rbusi
ness.Theseshar
esmaybehel
dbyt
hegener
al
publ
i
c,banks,
financi
ali
nst
it
uti
ons,
orev
enot
hercompani
es.Ther
esponse
dependsonsev
eral
fact
ors,
incl
udi
ngt
hecompany
’sr
eput
ati
on,
theper
cei
ved
pr
ofi
tpot
ent
ial
,andgener
aleconomi
ccondi
ti
on.I
nret
urn,
thecompanyof
fer
s
di
vi
dendst
othei
rshar
ehol
der
s,whi
chal
ongwi
tht
hef
loat
ingcost
,ist
reat
edas
t
hecostofsour
cing.Howev
er,
thecompanyi
snotl
egal
l
yboundt
opayt
his
di
vi
dend.Al
so,
nor
ulepr
escr
ibeshowmuchdi
vi
dendi
stobegi
ven.Al
lthi
s
makest
hisav
erycheapsour
ceofwor
kingcapi
tal
.But
,inr
eal
i
ty,
most
compani
esdonotuset
hisf
ormeet
ingt
hei
rwor
kingcapi
tal
needs.
 Long-
ter
m Loans:
Alsocal
l
edWor
kingCapi
tal
Loans,
thesel
ong-
ter
mloansmay
bet
empor
aryorl
ong-
ter
m.Thel
ong-
ter
m her
eisgener
all
y84mont
hs(
7year
s)
ormor
e.Thi
sloani
snott
akenf
orbuy
ingl
ong-
ter
m asset
sori
nvest
ment
sandi
s
usedt
opr
ovi
dewor
kingcapi
tal
tomeetacompany
’sshor
t-
ter
m oper
ati
onal
needs.Exper
tsadv
iseusi
ngl
ong-
ter
m sour
cesf
orper
manentneedsandshor
t-
t
erm sour
cesf
ort
empor
arywor
kingcapi
tal
needs.
 Debent
ures:
Likeshar
es,
debent
uresal
soi
ncl
udegener
ati
ngmoneyf
rom t
he
gener
alpubl
i
c,f
inanci
ali
nst
it
uti
ons,
andot
hercompani
es.Howev
er,
unl
i
ke
shar
es,
int
hecaseofdebent
ures,
thecompanyhast
odecl
aret
hei
nter
estt
hey
wi
l
lpayt
othei
rlender
sopenl
y.Thecompanyi
slegal
l
yboundt
opayt
heagr
eed
i
nter
est
.So,
her
e,i
fthef
undsar
eunusedorev
eni
fthecompanyr
unsi
ntol
osses,
t
heyhav
etopayt
hel
ender
s.

SOCI
ALENTREPRENEURSHI
P

Social ent
repr
eneurshi
pis 
theprocessbywhi chi
ndividuals,st
art
upsandentr
epr eneur
s
developandf undsoluti
onsthatdi
rect
lyaddresssocialissues.Asoci
alent
repreneur,
ther
ef ore,i
sapersonwhoexpl or
esbusinessopportuniti
esthathaveaposit
iveimpact
onthei rcommunity,i
nsociet
yorthewor l
d.

QUALI
TIES
 1.Heal
thyI
mpat
ience

Asoci
alent
repr
eneurshowsaheal
thyi
mpat
iencewi
tht
hewayt
hingsar
e,accor
dingt
o
DukeUni
ver
sit
y’sFuquaSchool
ofBusi
ness,
ina 
repor
t 
byi
tsCent
erf
orAdv
ancement
ofSoci
alEnt
repr
eneur
shi
p.

CASEnot
est
hatsoci
all
ymi
ndedent
repr
eneur
swantt
ochanget
hingsr
ightaway
,know
i
tcanbedone,
andar
esomet
imesf
rust
rat
edt
hatbur
eaucr
acyandt
hel
ackofpol
i
tical
wi
l
l,amongot
her
s,i
mpedeonsoci
alchangest
hatcoul
dbenef
itt
hemasses.

2.Zeal

Soci
all
yor
ient
edent
repr
eneur
sint
erl
ockzeal
andpassi
on,
especi
all
yatt
hei
nit
ial
st
agesofashor
t-
ter
m pr
ojectorl
ong-
ter
mini
ti
ati
ve.Theyt
endt
obel
i
eve
whol
ehear
tedl
yint
hei
rpr
oject
s,andt
her
efor
eiti
snotunusual
fort
hem t
olog80-
hour
weeks.

Thi
schar
act
eri
sti
cisal
soseeni
nbusi
nessent
repr
eneur
s,whoi
nit
ial
l
ywor
kti
rel
essl
y
ont
hei
rini
ti
ati
ves.

3.Thedesi
ret
oChangeOt
her
s

Att
hecor
eofev
erysoci
alent
repr
eneuri
san 
unwav
eri
ngwi
l
li
ngness 
tochangeot
her
s,
especi
all
ypeopl
ewi
thwhom heorshewor
ks.

Thatdesi
ret
oal
termi
ndset
sal
soext
endst
opeopl
einpower
,asseen,
forexampl
e,i
n
t
hecaseofMohammedYunus,
thef
ounderoft
heGr
ameenBank,
whi
chdi
dsomucht
o
r
evol
uti
oni
zet
hewor
ldofmi
crof
inanceandenabl
elendi
ngt
opr
evi
ousl
y
di
senf
ranchi
sedpopul
ati
ons.

4.Commi
tmentt
oImpr
oveSoci
alWel
far
e

Soci
alent
repr
eneur
sar
esoci
all
ycommi
tt
edf
ir
standf
oremost–t
hati
sano-
brai
ner
.

Butwhatdi
ff
erent
iat
est
hem f
rom,
say
,acompanyengagi
ngi
nCSR,
ist
hei
rabi
l
ityt
o
f
ull
ydev
otet
hei
rti
me,
ener
gyandmeagerr
esour
cest
omakesur
ethi
ngsact
ual
l
y
changef
ort
hebet
ter
.

Abusi
nesscanusecor
por
atesoci
alr
esponsi
bil
i
ty(
CSR)–whi
chent
ail
sev
ery
thi
ng
f
rom char
it
abl
edonat
ionst
ocommuni
tywor
k–t
oimpr
ovesoci
alwel
far
e,butcr
it
ics
al
sopoi
ntoutt
hatsomef
or-
prof
itent
it
iesuseCSRasapubl
i
c-r
elat
ionst
ool
.

5.I
nnov
ati
on

I
nnov
ati
oni
spr
esenti
nthemi
ndsofsuccessf
ulsoci
al 
ent
repr
eneur
s.Theyembr
ace
t
echnol
ogyf
ull
y,f
indi
ngnewway
stomaket
hings,
del
i
verpr
oduct
sandser
vices,
heal
peopl
e,i
mpr
ovet
hei
rli
ves…y
ounamei
t.

Thei
deai
stouseexper
ti
seandcompet
enceacqui
redi
nthebusi
nesswor
ldt
ochange
mi
ndset
sandi
mpr
oveorsav
ethel
i
vesofmi
l
li
onsar
oundt
hewor
ld.

6.Pr
act
ical
i
tyWhenSol
vi
ngPr
obl
ems

Soci
alent
repr
eneur
shi
phasnopr
ofi
tmot
ive,
butt
hatdoesnotmeansoci
al
ent
repr
eneur
sdon’
tpayat
tent
iont
obudget
aryconst
rai
nts.

I
nfact
,they
 do 
–andmostoft
hem al
way
sseekef
fect
iveandef
fi
cientway
stooper
ate
t
hei
ror
gani
zat
ions.Theyhav
eto,
other
wise,
theywi
l
lvani
shasf
astast
heyappearon
t
hei
rsoci
alandeconomi
clandscape.

Thebot
tom l
i
nei
sthatcompet
entsoci
alent
repr
eneur
sfi
ndsmar
tway
stosol
ve
pr
obl
emswi
thoutbr
eaki
ngt
hei
rbank–whi
ch,
agai
n,i
snotr
eal
l
ythecasebecauset
hey
don’
thav
ethatmuchmoneyt
ost
artwi
th,
andt
her
efor
ether
eisnor
eal
bank.

7.Ri
skTaki
ng

Ri
skt
aki
ngi
sessent
ial
insoci
alent
repr
eneur
shi
p–andi
nanyki
ndofent
repr
eneur
shi
p,
f
ort
hatmat
ter
.

I
ttakesaspeci
almi
ndsett
owakeuponedayandsayy
ouwantt
ochanget
hingsi
nthi
s
wor
ld.Ther
iskbecomesev
engr
eat
eri
fyouhav
enomoney
,don’
thav
eaposhsoci
al
backgr
ound,
leav
eyourdayj
ob,
orembar
konapr
ojectt
hatcoul
dcosty
ouy
our
l
i
vel
i
hood…orev
eny
ourl
i
fe.

8.Phi
l
ant
hropi
cBent

Asoci
alent
repr
eneurgener
all
yhasaphi
l
ant
hropi
cbent
,meani
ngheorshei
snot
necessar
il
ydr
ivenbymoneyorf
ame.

Al
so,
heorshet
endst
odi
str
ibut
ewhat
everpr
ofi
tsar
emadet
othesoci
all
y
di
sadv
ant
aged,
orr
einv
estt
heexcesscashi
ntheor
gani
zat
ion.

Thei
deai
stogr
owt
heent
it
ybyenl
i
sti
ngmor
epeopl
e,somor
epeopl
ecanbeposi
ti
vel
y
af
fect
ed,
mor
eli
vescanbesav
ed,
andmuchmor
e soci
alv
alue 
canbecr
eat
edi
nthe
l
ongt
erm.

9.Fai
thi
nTeam Wor
k

Teamwor
kisessent
ial
forsoci
alent
repr
eneur
s.I
nasect
ori
nwhi
cht
her
eof
teni
snot
enoughmoney
,resour
cesorexper
ti
se,
theonl
yresour
cesav
ail
abl
ear
epeopl
e–and
t
ime,
ify
oucancal
li
tar
esour
ce.

Ther
efor
e,soci
alent
repr
eneur
shi
prev
olv
esar
oundt
heconceptofcr
owdsour
cing,
t
appi
ngi
ntoat
eam off
ait
hful
wor
ker
sal
ongwi
thv
olunt
eer
sscat
ter
edar
oundt
hewor
ld
t
oident
if
ywor
thypr
oject
s,f
undt
hem andunder
taket
hem.
UNI
T3

EntrepreneurshipDev el
opmentPr ogram
Entrepreneurshi
p Dev el
opmentPr ogramme ( EDP)i s a programme whi ch hel
ps in
developing entr
epreneurialabili
ti
es.Theski l
l
st hatar er equi
red tor un abusiness
successf ul
lyisdevelopedamongt hest udentst hrought hisprogramme.Somet imes,
studentsmayhav eski l
lsbuti trequirespol i
shingandi ncubation.Thisprogr
ammei s
perfectforthem.Thi sprogrammeconsi stsofast ructur
edt rai
ningprocesstodevelop
ani ndi
v i
dualasanent repreneur.Ithelpst heper sont oacquireskill
sandnecessar y
capabili
tiestopl
ayt heroleofanent repreneuref fectivel
y.

Obj
ect
ivesof
 Ent
repr
eneur
ial
Dev
elopmentPr
ogr
amme(
EDP):

1.Tomakepeopl elearncompl i
ancewi t
hlaw.
2.Todev elopandf orti
fyentrepreneurialquali
ty, i
.e.
,mot i
vationorneedf or
achi
evement .
3.Todev elopsmal landmedi um scal eenterprisesi nordertogener ateemploy
ment
andwident hescopeofi ndustri
al ownership.
4.Toindust r
iali
ze ruralandbackwar dsectionsoft hesociety.
5.Tounder standt hemer itsanddemer i
tsofbecomi nganent r
epreneur.
6.Toinvest i
gatetheenv i
ronment alset -
uprelatingt osmallindustri
esandsmal l
busi
nesses.
7.Todesi gnpr oj
ectf ormanuf acturingapr oduct .
8.Toincreaset hesuppl yofent repreneursf orquicki ndustr
ialdevelopment.
9.Toprepar eindividualstoacceptt heuncer t
aintyinv ol
vedinrunningabusiness.
 10.
Todevel
opmanager i
alski
ll
samongsmal lent
repr
eneur
sforimpr
ovi
ngthe
per
for
manceofsmal l-
scal
eindustr
ies.
11.
Tooff
erprofi
tabl
eemploymentoppor t
unit
iestoeducat
edyoungmenand
women.
12.
Toexpandthesourcesofentr
epreneurshi
p.

Rol
esofEDP
AnEntr
epr
eneur
shi
pDevel
opmentProgrammepr
imar
il
ypl
aysf
ourr
olest
ohel
pan
i
ndi
vi
dualt
obecomeanent
repr
eneur
.Theyar
e:

 Stimul at oryRol e:Itai msati nfluenci ngpeopl einl ar genumbert obet heent r
epr
eneur.
Thisi ncl udes:
1.dev elopi ngmanager i
al,techni cal ,fi
nancial,andmar ket i
ngskill
2.incul cat i
ngper sonal itytraits
3.pr omot esandr ef ormsent repr eneur i
al behav i
orandv alues
4.ident ifyingapot ent ialent repr eneurappl yi
ngsci ent ifi
cmet hods
5.mot ivational traini ngandbui ldingapr operat t
itude
6.st rengt heni ngt hemot iveofaper sonandgi v i
ngr ecogni t
ion
7.t hev aluabl eknow- howoft hel ocalpr oduct sandt hepr ocesseshel pinthesel
ecti
on
ofpr oduct s, prepar ationofpr oj ectrepor ts
 
 Su ppor tiveRol e: I
thel psint hef ollowingway s:
1.r egi strationoft hebusi ness
2.pr ocur ementoff und
3.Incubat ionsuppor t
4.Team bui ldingandt eam dev elopmentsuppor t
5.Ment or shipandgui dancef rom i ndustryexper ts
6.Pr ov i
dingt axr elief, subsi dy ,gov ernmentschemeset c.
7.gui dancei npr oductmar ket i
ng
8.suppor tf ormanagementconsul tancy
 
 Su stainingRol e: I
tai msatpr ov idinganef f
ect i
v esaf eguar dtobusi nessestosustai
n
agai nstt hecut -throatmar ketcompet i
tion.Thi sincludes:
1.hel pi nmoder nizat ion, expansi on, anddi versif
ication
2.addi tional financi ngf orf urtherdev elopment
3.Gl obal Net wor kingOppor tunit i
es
4.cr eat ingnewmar ket i
ngpr ocesses
5.hel pingaccesst oi mpr ov edser vicesandco- wor kingcent ers
 
 So cio-economi cRol e: 
Itaimsatupgr adingt hesoci o-economi cstat
usoft hepubl
icand
i
ncl udes:
1.ident ifyingent repr eneur i
al qual itiesinpr acticali
ty
2.cr eat ingempl oy mentoppor tuni ties
3.concent rationofi ndust r
iesbysuppor ti
ngr egional dev el
opmenti nabal ancedmanner
4.f ocusi ngont heequal dist ri
but i
onofi ncomeandweal thoft henation
5.channel
i
zingt
hel
atentr
esour
cesf
orbui
l
dinganent
erpr
ise

Phasesof
 Ent
repr
eneur
ial
Dev
elopmentPr
ogr
amme(
EDP):

1)Pre-
Trai
ningPhase: 
Thisst
epcanbeconsideredastheint
roduct
oryphaseinwhicht
heentrepr
eneurshi
p
devel
opmentprogrammesar el
aunched.Awidespectr
um ofact
ivi
ti
esareperf
ormedin
thi
sphasearcdescri
bedbelow:

i
)Ident
if
icati
onofsui
tablel
ocat
ionwher
etheoperat
ionscanbeini
ti
atedl
ikeadistr
ict
.
i
i)Sel
ecti
onofanindi
v i
dualasacour
secoor
dinat
ororproj
ectl
eadertocoordi
natethe
EDPacti
v i
ti
es.

i
i
i)Or
gani
sat
ionofbasi
cinf
rast
ruct
ural
faci
l
iti
esr
elat
edt
othepr
ogr
amme.

i
v)Conduct
ingt
heenv i
ronment
alscanni
ngori
ndust
ri
alsur
veyi
nor
dert
olookf
orbet
ter
busi
nessoppor
tuni
ti
es.

v)Looki
ngf
ort
heassi
stanceofv
ari
ousagenci
essuchasDI
Cs,
banks,
SISI
,NSI
C,DM
andsoon.

v
i)Conduct
ingi
ndust
ri
almot
ivat
ional
campai
gnst
oincr
easet
henumberofappl
i
cat
ions.

2)Tr ai
ningPhase: 
Themai nf unct
ionofanyEDPi stoimparttrai
ni ngtof utur
eent r
epreneursandguiding
them forestabli
shi
ngt heenterpr
ise.Thenor mal durationoftheent r
epreneurshi
p
dev el
opmentpr ogr
ammei s4-6weeksandi tisusual l
yaf ullt
imecour se.Theobjecti
ves,
trai
ninginputsandthecent r
eoff ocusareexpl ainedint heprogrammedesi gn.
Commonl y,i
tisconsideredthatt
het r
aineesdonothav eenoughi nformati
onaboutt he
changebecauseofwhi chnewpr ogrammei spr epared.Eacht r
aineeshouldappraise
himselfattheterminationofthetrai
ningprogrammet ohav eaclearviewabouthi s/
her
futureendeavours.

Tr
aini
ngPhase-Pr
ogr
ammeDesi
gn

Obj
ect
ives Focus I
nput
s
 Promot ingand
sustainingtheskil
l
sof
entr
epr eneur pand Ent
shi r
epr
eneur
. Behav
ior
al 
i
nput
s.
buil
dingup
the 
conf idence.    

Businessoppor t
unity
guidance, i
nf ormat i
on and
projectplanni nginputs,
Enterpr i
se technicalinput s. 
Guidi
ng
Hel
pinginestabli ng est
shi ablishment forenabl i
ngbusi ness
t
henewent erprise Creatingenter
pri
se. oppor t
unities. i
nformat i
on
t
hroughdecision- andpr ojectpl anningand
making.   technical 
opi nions.

Enterpri
se
Successf uland management , 
fi
rst-
profi
tabl eoper ationof handknowl edgeof Managementinputs,plant
enterprise.Indust ri
al factoryl
ayout , vi
sit
/i
n-pl
antt
raini
ng
exposur ePer for ming businesssites,etc. Managementsuggest i
ons
profi
tabl eand I
nf ormati
onr el
atedto i
ndustr
ialv
isi
tortr
aining.
successf ul factoryl
ayout ,
plant
operations, exposur e l
ocat i
on,organisati
on  
vari
ousi ndustrial managementandso
knowl edge. on.  

3)Post -Tr aini ngPhase  :

 
Thisphasei salsor efer r
edast hephaseoff ollow-upassi stance.I nthisphase, the
candidat eswhohav ecompl etedt heirprogr ammesuccessf ul
lyar eprov i
dedpost -
tr
ainingassi stance.Thi sphasei sv eryimpor tantasaftert hecompl etionoft r
aining
programme, mostoft heent repreneur sfaceal otofhar dshi pint hebusi nesspl an
i
mpl ement ation.Thus, wi t
ht hehel pofv ariouscounsel li
ngsessi ons, thet rai
ning
organisat ionst rytoext endt heirsuppor tt ot r
ainees.Member slikeSt ateFi nancial
Corporat ion, commer cial banks, t
raininginst i
tutionsandDi str
ictIndust ri
esCent re
constit
ut edal lt
oget hert oassi sttheent repreneur sonthebasi sofment ionedgoal s:
 Toassi stt r aineesi nameani ngful mannersot hattrai
neescanr eali
ze  t
heirbusi ness
plan.
 Toanal yset hedev elopmentmadebyt r
aineesi ntheprojecti mpl ement ation.
 Toev aluat et hepost -t
r ainingappr oach.
 Topr ovideescor tser vicest othet raineeswi t
ht hehelpofv ari
ouspr omot i
onal and
fi
nancial inst ituti
ons.
 Commonl y ,
t hesefoll
ow-upacti
onmeetingsar
econduct
edafterev
eryt
hreey
ear
sof
tr
ainingcompl etionandthetoolsusedf
orthefol
l
ow-upare:
 Postalquestionnaires.
 Telephoni
cf ollow-up.
 I
ndividualcont actbythetr
ainer
.
 Team meet ings.

Anumberofgov ernmentandpr i
v at einsti
tut
ionsar
eprovi
dingassist
anceinIndi
ato
entr
epreneur s.Someoft hem ar el istedbelow:
 SmallIndust r
iesDev elopmentOr gani zati
on( SI
DO),
 Commer cialBanks,
 Nati
onal Alli
anceofYoungEnt r
epr eneur s(NAYE),
 Nati
onal Insti
tuteforEnt repreneur shipandsmal lBusi
nessDevelopment(NIESBUD)
,
 Entr
epreneur shipDev elopmentI nst ituteofIndi
a(EDI)
,
 Indi
aInvest mentCent re( LI
C) ,
 Small-
scal eindustr
ialDev elopmentBankOfI ndi
a(SI
DBI),
and
 Technical Consult
ancyOr ganizati
on( TCO).

I
mpor
tanceofEnt
repr
eneur
ial
Dev
elopmentPr
ogr
amme(
EDP):

Thei
mpor
tanceofEDPi
sasf
oll
ows:

1)For
mat
ionofEmpl
oymentOppor
tuni
ti
es:
Entrepreneuri
aldevel
opment  pr
ogr
ammesgener ateemploymentoppor t
uni
tiesi
nt he
developingandunder -
dev el
opedcountr
ies.I
tassistsandencouragesindi
vi
dualsto
establi
sht hei
rownbusi nessandenablethem t
obecomesel f
-employed.Bysett
ing-up.
severalbusinessenter
pr i
ses,EDPalsocreat
esabundantjoboppor tuni
ti
esforother
people.

2)Pr
ovi
desAdequat
eCapi
tal
: 
Alargeamountofcapit
ali
srequiredtoset-
upabusi nessenter
pri
se.Thisfinancial
assi
stanceisprov
idedbyvar
iousEDPagenci es.EDPsinstr
uctthedevelopmentbanks
suchasICICI,
IDBI,
IFCI
,SI
DCs,etc.,t
otakeinit
iat
iveinpromoti
ngentrepreneurship.

3)Pr
operUt
il
izat
ion 
ofLocal
Resour
ces:
 
Newent r
epreneursuti
li
ze t
heavail
abl
el ocalresourcesinthemosteffecti
veway.Thi
s
uti
li
zation 
ofresourcesplaysanimportantroleinthedev el
opmentofapar ti
cul
arar
ea
orregionatmi nimum cost.EDPs.gui
de, educateandt eachtheent
repreneur
stoexploi
t
thelocalresourceseff
ici
ently
.

4)I
ncr
easedPerCapi
tal
Income:
 
Entrepr
eneurshavet heabi
lit
ytoorganisethefact
orsofproduct
ionandutil
ize t
hem i
n
themostpr oducti
vemannerbyest abl
ishinganenter
pri
se.Thisdevel
opmentl eadst
o
i
ncreasedpr oduct
ion,employmentandweal thgener
ati
on.Asar esul
t,ov
erall
producti
vi
tyandpercapi t
al 
incomeoftheeconomyi sraised.

5)I
mpr
ovedSt
andar
dofLi
vi
ng:
 
EDPspr ovidelatesttechnologiesandinnovati
vemet hodst oent
repreneurswhichhel
ps
them toproducel argequant i
tyofproductsatlowercost .Thi
sal
soenabl es
entrepr
eneurst oexploittheav ai
labl
eresourcesandpr oducequali
typroducts.Thi
s
automaticall
yleadst oimprov edstandardofliv
ing.

6)Economi
cIndependence:
 
EDPsstrengthent heentrepreneur
st oproducev ar
iet
yofproduct
sinlar
gequanti
tiesat
competit
iveprices.Ital
sohel psanentrepreneurtodevel
opsubsti
tut
esofimported
product
swhichpr event
st hecountryfr
om beingdependentonotherfor
eigncountri
es.
Ital
sosavesf orei
gnexchangeoft hecountry.

7)Pr
event
ingI
ndust
ri
alSl
ums:
 
Mostofthedev
elopedindust
ri
alareasar
efacingpr
obl
emsrel
atedt
oindust
ri
alsl
ums.
Thi
sleadstooverbur
deningofpubli
camenit
iesandal
soaf
fect
stheheal
thofpeopl
e
adver
sely.EDPsoffersseveralsubsi
dies,
incent
ives,
inf
rast
ruct
ural
supportand
fi
nancial
grantstonewent repr
eneursforestabl
i
shingthei
rbusi
nesses,
thus,pr
event
ing
thegrowthofindustr
ialsl
ums.

8)Reduci
ngSoci
alTensi
on:
 
 
Amaj orit
yofy oungst ersandeducat edindividualsofthesoci etyareinthestateof
social unrestandt ensi
on.Thissocialtensionr estr
ict
st hem from fi
ndingtheright
dir
ect i
oni ntheircar eer
s.Mostoft hest udentsf eelfr
ustratedaboutnotget ti
ngaj ob
afterthecompl etionofeducat i
on.Insuchsi t
uations,EDPshel pspeopl ebyprovidi
ng
them pr opergui dance,assist
ance,traini
ngandsuppor tforestabl
ishingnewent erpri
ses
andbusi nesses, Asaconsequence, socialtensionisreducedast heygenerateself-
empl oy mentoppor tuni
ti
es.

9)Faci
l
itat
ingOv
eral
l
.Dev
elopment
: 
EDPsfacil
i
tateentrepreneur
shipwhichhelpsintheoveral
ldevel
opmentoft hesoci
ety
byproduci
ngnewpr oducts,i
nnovati
veser
v i
ces,lowcostconsumergoods,job
opport
unit
ies,i
ncreasingthestandardofl
i
v i
ng,andoveral
lproduct
ivi
ty.Thi
sfaci
li
tat
es
i
ntheov er
alldevel
opmentoft heeconomyandt hecountr
y.
Ent
repr
eneurshi
pDev el
opmentProgr
amme–CourseCont
entsandCurri
cul
um ofEDPs
Thecoursecont
entsofanEDPshouldbef
ormul
atedaspert
heobject
ivesoft
heEDPs.
I
tshoul
dconsistofthefol
l
owing:
1.Gener alApproachtoEnt repreneurship:Thepar t
ici
pantsshoul dbegi venexposur e
aboutt heconcept ualf
ramewor kofent r
epr eneurshi
pr ol
e,expect at
ion,Entr
epreneurial
environmentetc.Innovati
vebehav iourrelatedissuesshouldbef ocusedtoenlight
ent he
entrepreneurs abouttheirfuture challenges and pr ospects.Besi des,dev el
opment
agenciesshouldt r
yt odesi
gnappr opri
atest rat
egiesenabli
ngt hepot enti
alentr
epreneur
totacklediff
erentriski
nherentinani nnov ati
onact i
vi
ty.Theserisksar easfoll
ows:
(
i)Techni
calri
sks– t
her
iskofnotknowi
ngenoughaboutt
het
echni
calpr
ocesses,
mater
ial
setc.
(i
i
)EconomicRi
sks–t
her
iskofmar
ketf
luct
uat
ionsandchangesi
nrel
ati
ont
oraw
mater
ial
set
c.
(
ii
i)Soci
alRi
sks–t
her
iski
nher
enti
nthedev
elopmentofnewr
elat
ionshi
p.
(i
v)Envir
onment
alRisks – r
isk whi
ch r
esultfr
om envi
ronment
alchanges int he
manager’
s work as an outcome of the new act
ivi
ty. Mor
eover
,pr ospect
ive
entr
epr
eneur
sshouldbegiv
enadet ai
l
edinfor
mati
onwit
hregardtofaci
l
iti
esgenerall
y
provi
ded by the gov
ernment and ot
her agenci
es i
nvol
ved i
n pr
omot
ion of
entr
epreneur
shi
p.
2.Mot ivat i
onalTr ai
ning:Mot ivat i
onaltraini
ng inputsar emeantf ordev elopi ng the
mot i
vation ofpot ent i
alent repr eneurs and theirenterprise buil
ding ski l
ls.Besi des,
mot i
vationali nputsalsoi ncl
udepsy chol
ogicalgames, tests,goalset t
ingexer cises, rol
e
play etc.The mot i
v ati
onali nput s wi
llbe ai med ati ncr easi
ng t he par ticipants,
understandi ngoft heent r
epreneur i
alpersonali
tyandent r
epr eneuri
albehav i
orandbr i
ng
aboutt hr ough sel f-
study ,changes i n self-
concept,value,ski l
lst herebyl eadi ng to
positi
veent repreneurialbehav ior .Themaj ormot i
vati
onali nputsmaybegi veni nthe
beginningoft hetrainingpr ogr ammeonf ullti
mebasi sthought hel earni
ngef fected
throught hem wi llber ei
nforcedandusedt hroughoutthet rai
ningpr ogramme.The
understandi ngoft heent r
epreneur i
alpersonalityandbehav iorwi l
lbesuppl ement ed
throughi nterfacewi t
honeort wosuccessf ulaswel l
asnotsosuccessf ulent r
epr eneurs.
3.Dev elopi
ngManagementSki ll
s:Prospecti
veentr
epreneursshouldbegi v
enexposure
i
ndi fferenttypesofmanagementpr oblems.Itwouldsharpentheirmanagementski l
ls.
Themanagementpr obl
emst akedifferentfor
msandt hemanagementpat t
ernsare
peculiart othesituation.So,tr
aini
ngf orexposi
ngmanager i
alski
ll
swi l
lbear r
angedin
keeping t hesituationalr equi
rements.Howev er,managerialaspectsshoul dincl
ude
product i
on pl anning, labour laws, cost anal y
sis, fi
nancial accounti
ng, sel
li
ng
arrangement s,taxationlawsetc.
4.Tr ainingf orPr ojectManagement :Pr ojecti nput sar er equi redt ohel pt hepot ent ial
entrepr eneur st odev elopt heirpr ojecti deasi ntobankabl epr oj ect s.Theyshoul dbe
givenacquai ntancewi tht hei ndust r
ialoppor tunit i
esi nt hear eaandal sonecessar y
guidanceonpr oductsel ection.Necessar yknowl edgeaboutpr ojectf easibilit
y,viability
andi mpl ement ationshoul dal sobegi vent ot hepot entialent repr eneur s.Underpr oject
prepar ation,t echni calf easi bil
ityincludessel ect ionoft echnol ogy ,av ailabili
tyofr aw
mat erials,sel ection of l ocat i
on and si te,av ai
labili
ty of pl ant and machi ner y,
i
nfrast ructur ef aciliti
es,r oads,t r
anspor t,power ,manpower /per sonnelr equirement .
Similarly, mar ketanal y sis,lev elofcompet i
ti
on, capi t
al cost,wor ki ngcapi talrequirement ,
estimat edcostofpr oduct i
on,pr ojectedsal esv olume,pr ofitabilit
yest imat es,expect ed
rateofr eturn,pr oject edcashf lowsandbr eakev enanal ysisar edi ffer entaspect st hat
hav etobei ncor por atedi nassessi ngt hecommer cialviabilityoft hepr oject.Suf f
icient
exposur ei snecessar ywi thr egar dt of i
nanci ngoft hepr oject.Fi nanci ngar rangement
gener allyi ncludessour cesoff inancing,pr omot er ’
scont ri
but ion,l ev elofi nsti
tutional
fi
nanci ng,seedcapi t
al ,invest mentsubsi dyet c.Pr ospect i
v eent repr eneur sshoul dbe
i
nst r
uct edaboutt hei mpor tanceoft i
mel yi mpl ement ationofpr oj ect .Theyshoul dbe
given pr opert raining aboutschedul ing ofv ariousact i
v i
ties,pr ov ision f oref fective
super visionandneedf orav oidingdel ayandconsequentcostescal at i
on.
5.Str
uctur
alArrangement
:Trai
ningi nputsalsoaim atf amil
iar
izi
ngt heparti
cipants
abouttheproposedstr
uctur
alarrangementf orthebusinessori ndustr
ialuni
t.They
shoul
d be gi v
en adequate famili
arizat
ion about gov er
nment pol i
cy regarding
devel
opmentofi
ndustr
ies,especi
all
ywi
thregardtosmallscalei
ndust
ries,regi
str
ation
andlicensi
ngpr
ocedures,for
msofor gani
zati
onlikepropri
etar
y,par
tnership,pr
ivate
companyandJoi
ntStockCompany ,i
nst
it
uti
onalset
upetc.
6.Suppor tSy st
em:I nmostoft hecases,par t
icipantsaregener al
lyf i
rstgener at
ion
entr
epr eneursandt heydonotknow aboutt hegov er
nmentandi nsti
tutionalsupport
system.Suppor tsystem mayal sobeusedasmot i
vati
onalinputstoencour aget he
part
icipants aboutt hei
rf uture prospects.They shoul d be fami l
iari
zed wi tht he
i
ncent i
ves/concessi
onsav ail
able,tax-i
ncenti
ves,taxhol i
day,backward/zer oindustr
ies
dist
rictsconcessions,softloanscheme,speci alschemesf ortechnici
anset c.This
shouldbef ol
lowedbyacquai nt
ingt hem wit
hpr oceduref orapproachinggov ernment
depar t
ment sandagencies,applyi
ngf orandobtaini
ngt heseconcessionsf rom them.
7.Fact oryVisits/I
n-Pl
antTr aini
ng:Pr acticalex posur eisal
sonecessar y.Depending
upon t heirpr oduct sthe potentialentrepr eneurs mayf eelthe need to gai
n mor e
knowl edgeaboutt heproductionpr ocesset c.byv isi
ti
ngsomeoft hesi mil
arunit
si n
product ion.Fort his purpose,f actor
yv isits may hav eto be arranged.Simil
arly
,
entrepreneurswhosel ectrel
ativ
el ysophist i
catedpr oduct
swillbeexpectedtohav ea
goodi deaoft hepr oductandt hepr ocessf acil
it
iesshouldbear rangedforin-
plant
tr
ainingorpr otot y
pedev elopmentonexcept i
onal basis.

Ideagener
ati
onorideat
ionis 
theactofformingideas.Itisacreat
iveprocesst
hat
encompassesthegener
ati
on,devel
opmentandcommuni cat
ionofnew t
houghtsand
concept
s,whi
chbecomethebasisofyouri
nnov
ati
onst r
ategy.

I
deagenerati
onis 
descri
bed asthepr
ocessofcr
eat
ing,
dev
elopi
ngandcommuni
cat
ing
abst
ract
,concret
eorvisuali
deas.

I
t’
sthefrontendpartoft
he 
ideamanagement
 f
unnel
andi
tfocusesoncomi
ngupwi
th
possi
blesol
utionst
opercei
vedoract
ualpr
obl
emsandopport
unit
ies.
Asment i
oned,i
deasarethefi
rststeptowardsmakingimprovement.Wemaki ng
progr
essasindi
vidual 
humanbeings dependsonnewideas. 
From theper
specti
veofan
i
ndivi
dual
,newideas canhel
py outomov eforwar
difyoufeelstuckwit
hat askorar
e
unabl
etosolveacertainpr
oblem.

1.PastWor
kExper
ience:

I
fyouhav
ebeenwor
kingsomewher
efort
hepastf
ewy
ear
s,y
ouhav
eobv
iousl
ybeen

doi
ngsomet
hingr
ightt
ost
il
lbeont
hepay
rol
l
.Dur
ingt
hist
ime,
youhav
egai
ned

exper
iencei
nyourf
iel
dandbeenpr
ofessi
onal
l
yexposedt
ovar
iousot
herf
iel
ds.You

hav
edev
elopedcont
act
sbot
hwi
thi
nyourcompanyandal
soel
sewher
eint
hei
ndust
ry.
Youhav
epi
ckedupski
l
lsandmayal
sohav
erecei
vedt
rai
ningi
naspeci
ali
zedsubj
ect
.

2.Hobbi
esandI
nter
est
s:

Ienv
ypr
ofessi
onal
athl
etesbecauset
heymakeal
i
vingoutofwhatt
heyl
ovedoi
ng.

JohnMcEnr
oemademi
l
li
onspl
ayi
ngt
enni
sandmanymor
emi
l
li
onscomment
ati
ngon

i
tandmostofushav
etopayt
opl
ayt
enni
s.Li
fecanbev
eryunf
air
.

3.St
rengt
hsandAbi
l
iti
es:

Besur
etoal
l
owy
ourbusi
nesst
oexpl
oity
ourst
rengt
hsandabi
l
iti
esandt
ost
eercl
ear
ofy
ourweaknesses.Li
sty
ourst
rengt
hsandweaknesses.Asky
ourf
ri
endsandr
elat
ives

t
ohel
pyouwi
tht
hel
i
st.

4.Fr
iendsandFami
l
y:

Consul
ti
ngf
ri
endsandf
ami
l
ymember
scanbeagr
eati
deat
olookf
ori
deas.Those

cl
oset
oyoumi
ghthav
eal
sot
houghtofst
art
ingabusi
ness.Youcant
akeadv
ant
ageof

t
hei
rwor
kexper
ienceandi
nter
est
stogener
atei
deasandt
heywoul
dal
sobeusef
uli
n

t
heanal
ysi
soft
hesei
deas.

5.Di
str
ibut
ionChannel
s:

Ther
etai
l
ersandt
hedi
str
ibut
orsar
ethepeopl
ecl
osestt
otheconsumer
.Nooneknows

mor
ethant
hem,
whatt
heconsumerwant
sandwhati
she/
sheget
ti
ngr
ightnow.Most

di
str
ibut
orsdeal
wit
hawi
dev
ari
etyofpr
oduct
ssot
hei
rexper
iencemaybeacr
oss

i
ndust
ri
es.

6.Tr
avel
:

I
deasmaydev
elopwheny
out
rav
elt
odi
ff
erentpar
tsoft
hecount
ryort
odi
ff
erent

count
ri
esandseedi
ff
erentway
sofdoi
ngt
hingsorpr
oduct
sthatmaywor
kathome.

Tr
avel
makesy
ouawar
eoft
heal
ter
nat
ives.

7.BooksandMagazi
nes:

Youcanpi
ckupal
otf
rom busi
nesspubl
i
cat
ionsandper
iodi
cal
s.Theywr
it
eoncur
rent

t
rendsi
nindust
ry,
bestpr
act
ices,
legal
issues,
andgener
albusi
nessenv
ironment
.

Busi
nessmagazi
nesar
egoodsour
cesofknowl
edgebuty
oucangai
nfr
om r
eadi
ng

gener
ali
nter
estmagazi
nest
oo.Theykeepy
oui
ntouchwi
tht
hel
atestt
rendsand

happeni
ngs.

8.
Resear
chOr
gani
zat
ions:

Acr
osst
hecount
ry,
ther
ear
emanyr
esear
chor
gani
zat
ionsandev
ensomeuni
ver
sit
ies

engagedi
ndev
elopi
ngnewt
echnol
ogyandcommer
cial
i
zingt
hem.I
fyouv
isi
tregi
onal
r
esear
chl
abs,
youwoul
dbesur
pri
sedatt
heamountofr
elev
antwor
kgoi
ngont
her
e.

10.TheWeb:

TheI
nter
nethast
odaybecomet
hemosti
mpor
tantsear
cht
ool
.Wher
eel
sewi
l
lyouf
ind

somuchi
nfor
mat
ionl
i
ter
all
yaty
ourf
inger
ti
ps?Goodi
fyouhav
eaPCandanI
nter
net

connect
ionathome,
orel
sey
oumaygot
othenei
ghbor
hoodI
nter
netcaf
e.Uset
he

sear
chengi
nesef
fect
ivel
yandv
isi
trel
evantsi
tes.

I
deagener
ati
ont
echni
ques
1.Rev
ersebr
ainst
ormi
ng

Whi l
et heprocessofbr ainstormi
ngisthegenerationofideastoidenti
fyprobl
em-
solvi
ngmet hods,reversebrainst
ormi
ngst art
swi t
ht hi
nkingaboutthecausesofthat
problem.Focusi ngont hecausesoft heproblem maysomet imesbemor eeff
ici
entthan
focusingont hesolut
ion.Byf i
ndi
ngpotential
causes, y
oucanwor kproact
ivel
yto
resolveorpr eventthecauseoft heprobl
em.Of ten,t
eamsuser ev
ersebrainst
ormingto
i
mpr ov eproductsandser v
ices.

2.Br
ainwr
it
ing

Abr ai
nwrit
ingacti
vit
yist y
picall
ymostef fect
iveinagroupsett
ing.St
artbywriti
nga
topiconapi eceofpaper.Then, passthepaperaroundthegroupsothateveryonehasa
turntowrit
eoni tandcont r
ibutetheiri
deastothecentral
topi
corquestion.Theideasof
onegr oupmembercani nspir
et heideasofanother
,orsomeonemaychooset o
i
mpr oveuponanexi sti
ngone.

3.For
cedr
elat
ionshi
ps

Theforcedr elat
ionshipsmethodint
roducest worandom andseeminglyunr
elat
edit
ems
andforcesy outocr eateaconnecti
onbet weenthem.Thistechni
queencourages
i
nnov at
ivethinki
ngi nordertobui
ldthoser el
ati
onshi
psandpossiblydevel
opanew
product.Youcanconductf or
cedrel
ationshipacti
vi
ti
esingroupsetti
ngsorindi
vi
dual
ly
.

4.St
ory
boar
ding

Dev el
opast or
yboardbyfi
ndingpi ctur
es,quot
esandot herv i
suali
nformat ion
associatedwit
ht hef
ocusofy ourbr ai
nstor
ming.Then,youcoul darr
anget heseit
emsto
createanarrat
iveandaddnot estohel pexpl
aintheprogressionoftheideas.
Storyboardi
ngcanbeamor ei nteracti
vemethodwhensear chingf
orphy sicalit
emsto
addt otheboard.Thephysi
cal aspectofseeki
ngandbui ldi
ngcanal lowy ourbrainto
pr
ocesst
hev
isual
inf
ormat
ioni
nfr
ontofy
ouataf
ast
err
ate.

5.Si
xthi
nki
nghat
s

Youcanusethistechni
quewithgroupsofatleastsixpeople.Eachpart
ici
pant
repr
esent
sa" t
hinki
nghat,
"ordif
ferentt
houghtfocuses,suchasbenef i
ts,
emot i
ons,
fact
s,i
deas,j
udgmentandplanning.Wit
hthesemi ndsets,
eachper sonaddressest
he
topi
corprobl
em from t
hatst
andpoint.

6.S.
W.O.
T.anal
ysi
s

S.W.O.T.i
sanacrony mf orstr
engt
hs, weaknesses,opportuni
ti
esandthreat
s.Youcan
usuall
yusethi
smet hodindiv
idual
l
yorwi thateam toassesst heworthofproposed
proj
ects.Youcouldaskwhatt hestrengths,weaknesses,opport
unit
iesandthreat
sare
foraparti
cul
arprojecttohelpdeci
dei fyoushouldproceedwi t
hit.

Bus
ines
spl
anf
ormat

Youmightpr
eferatradi
ti
onalbusines
spl anfor
matifyou’
rever
ydetai
l
-or
iented,
wantacomprehens
ivepl
an,orplantorequestfi
nanc
ingfr
om t
radi
ti
onal
sources.

Wheny ouwr i
teyourbusi
nesspl
an,youdon’thav
et os
tic
ktotheexac
tbus iness
planoutl
ine.Instead,us
et hesecti
onsthatmak ethemos tsensef ory our
busi
nessandy ourneeds.Tr
adi
ti
onalbus
inessplansusesomec ombinat
ionof
theseni
nes ect
ions.

Ex
ecut
iv
esummar
y

Bri
efl
ytel
lyourreaderwhatyourcompanyi sandwhyi twi
ll
bes uc
cessful.
Incl
ude
yourmissi
ons t
atement,yourpr
oduc tors er
vice,andbas i
cinf
ormationabout
yourcompany ’
sl eader
shi
pt eam,empl oyees,and locat
ion.You should al
so
i
ncludefi
nancialinf
ormati
onandhi gh-l
evelgrowthplansifyouplantoas kfor
fi
nanci
ng.

Companydescr
ipt
ion

Usey ourcompany descri

pti
on to provi
de det
ail
ed inf
ormati
on abouty our
company.Goint
odetailabouttheproblemsyourbus i
nesssol
ves.Bes pec
ifi
c,
andli
stoutthecons
umer s,or
ganiz
ati
on,orbus i
nessesyourcompanyplanst o
s
erv
e.

Expl
aint
hec ompeti
ti
veadvantagesthatwillmakeyourbusinessas ucces
s.Are
ther
eexper
tsony ourteam?Hav eyouf oundtheperf
ectloc
at i
onforyourstor
e?
Yourcompanydescri
pti
onistheplac
et oboastaboutyourst
rengths.

Mar
ketanal
ysi
s

You'
llneedagoodunder s
tandi
ngofy ourindust
ryoutl
ookandt argetmarket
.
Competit
iver es
ear c
hwi llshow youwhatotherbusi
nessesaredoingandwhat
thei
rstr
engthsar e.I
ny ourmarketres
earch,
lookfort
rendsandthemes .Whatdo
successf
ulc ompet i
tor
sdo?Whydoesi twor k?Canyoudoi tbet
ter?Now'sthe
ti
met oanswert heseques t
ions.

Or
gani
zat
ionandmanagement

Tel
lyourr
eaderhowy
ourc
ompanywi
l
lbes
truc
tur
edandwhowi
l
lruni
t.

Descri
bethe l
egalst
ruct
ure 
ofy
ourbus i
nes
s.Stat
ewhet heryouhaveorint
endto
i
ncorporat
ey ourbusi
nessasaCoranSc or
porati
on,form ageneralorli
mit
ed
par
tnershi
p,orify
ou'
reas ol
epropr
iet
ororl
imi
tedli
abil
i
tyc ompany(LLC).

Useanor gani
zat
ionalchar
ttolayoutwho'
sinchargeofwhati
ny ourc ompany.
Showhoweac hper son'
suni
queexperi
encewi
ll
contri
but
etothesuccessofy our
vent
ure.
Cons i
derincl
udi
ngresumesandCVsofk eymembersofy
ourt eam.

Ser
vi
ceorpr
oductl
i
ne

Desc r
ibewhaty ous el
lorwhats ervi
cey ouof fer
.Explainhow i
tbenefit
syour
customer s and whatt he productli
fecycl
el ookslike.Sharey ourplans f
or
i
ntell
ec t
ualproperty,l
ik
ec opyri
ghtorpatentfi
lings.I
fy ou'
redoi
ng r
esearchand
development  
foryourserv
iceorproduct,
explai
ni ti
ndetail
.

Mar
ket
ingandsal
es

Ther
e'snosi
ngl
ewaytoappr oachamar ket
ings
trat
egy
.Yours
trat
egys
houl
d
evol
veandc
hanget
ofi
tyouruniqueneeds
.

Yourgoali
nt hi
ss ect
ionistodes cri
behowy ou'
llat
tr
actandretai
nc ust
omer s
.
You'
llal
sodes c
ribehow as alewillact
uallyhappen.You'
l
lref
ert othissec
tion
l
aterwhenyoumak efinanc
ialproj
ecti
ons,s omak esur
etothoroughlydescr
ibe
yourcompl
etemar ket
ingands al
ess t
rat
egies.
Fundi
ngr
equest

I
fy ou'
reas
kingf
orfundi
ng,t
hisi
swhereyou'
l
loutl
i
ney ourfundi
ngrequi
rement
s.
Yourgoalistocl
earl
yexpl
ainhow muchfundi
ngy ou’
llneedoverthenextfi
ve
yearsandwhaty
ou'
llusei
tfor
.

Speci
fywhetheryouwantdebtorequi t
y ,t
het ermsy ou'
dl i
keapplied,andt he
l
engthofti
mey ourrequestwill
c over
.Giv
eadet aileddescr
ipti
onofhowy ou'l
luse
yourf
unds.Specif
yify ouneedf undstobuyequipmentormat er
ial
s,pays alar
ies
,
orcoverspecif
icbil
lsuntilrevenueincreases
.Al waysincludeades cr
ipti
onof
yourf
utur
es t
rat
egicfinanci
alplans,l
ik
epay i
ngof fdebtorsell
i
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