MODULE 1:
Concept of Entrepreneurship
Meaning and definition of entrepreneur
The person who runs a business is called
entrepreneur. He starts and manages a business
unit; take all risks associated with business for
making profit.
Entrepreneur is the person creates enterprise.
Entrepreneurship
The process of creating an enterprise is called
entrepreneurship.
It is the process of changing idea into commercial
opportunity.
Entrepreneurship mathematically defined
Entrepreneurship = Entrepreneur + Enterprise
Nature and Characteristics of Entrepreneurship
1. Entrepreneurship is a function of innovation.
2. Entrepreneurship is a function of leadership
3. Entrepreneurship is a function of achievement.
4. Entrepreneur brings about changes in the
society.
5. He takes risk to achieve goals.
6. Entrepreneur is thinker and doer.
7. Entrepreneur is planner and worker.
8. Entrepreneur builds new enterprises.
Importance of entrepreneur / Entrepreneurship.
1) Providing Employment
Entrepreneurship generates employment
opportunity in the society.
2) Introducing innovations and changes:
Entrepreneur introducing new kinds of goods and
services to the society. He is constantly engaged
in introducing newer and newer methods of
production.
3) Increasing productivity:
Entrepreneur co-ordinates the various factors of
production and tries to eliminate waste in production.
4) Increase Standard of Living
Entrepreneurship helps to improve the standard
of living of a person by increasing the income.
5) Promoting rural development:
Entrepreneur helps to develop the rural areas of
the country by starting business in rural areas
7) Increasing the export trade:
Development of entrepreneurship helps to
increase production. Hence, it leads to increasing
exports in the country
8) Help to Economic development:
Entrepreneurship helpful for economic
development of the country
Functions of entrepreneur
1) Planning
Planning is the first step in the direction of
setting up of an enterprise.
Before starting a business enterprise, the
entrepreneur create a plan regarding nature and
type of goods to be produced, the form of
business organization, amount of capital needed,
selection of the location etc.
2) Risk-taking
Business involves various types of risks.
The entrepreneur take all risks associated with
business.
4) Decision-making
Entrepreneurs make decisions related to business
finances, marketing and operations.
5) Search for Market
They identify target markets and customer and
create strategies to reach them.
6) Innovation
They identify new opportunities and create
innovative solutions or products to meet market
needs.
Difference between Entrepreneur and Manager
Classification of Entrepreneurs
A) On the basis of type of business
1. Business entrepreneur
He is an individual who discover an idea to start a
business.
2. Trading entrepreneur
He is an entrepreneur who undertakes trading
activities.
3. Industrial entrepreneur
He is an entrepreneur who undertakes
manufacturing activities.
4. Corporate entrepreneur
He is a person who uses his skill in organizing and
managing a corporate undertaking.
5. Agricultural entrepreneur
They are entrepreneurs who undertake
agricultural activities.
B) On the basis of motivation
1. Pure entrepreneurs
They are guided by the motive of profit. They
apply their business skills to earn more and more
profit.
2) Induced entrepreneur
He is an entrepreneur who is induced to take up
an entrepreneurial activity with a view to avail
some benefits from the government.
3) Motivated entrepreneur
These entrepreneurs are motivated by their
desire to make use of their technical and
professional expertise and skills.
4) Spontaneous entrepreneurs
They start their business out of their natural
talents.
They are entrepreneurs with initiative, boldness
and confidence in their ability.
C) On the basis of stages of development
entrepreneurs
1) First generation entrepreneur
He has no entrepreneurial background in his
family.
He is one who starts firstly a business unit in his
family by using his innovative ideas and skills.
2) Modern entrepreneur
He is an entrepreneur who undertakes those
ventures which suit the modern marketing needs.
3) Classical entrepreneur
He does not undertake any innovation. He is
traditional entrepreneur. He is also called
lifetimer.
D) Classification by Clarence Danhof
1. Innovative entrepreneur
He is an entrepreneur who has to introduce new
goods, services, methods, production etc.
2. Adoptive / imitative entrepreneur
They imitate or copy technology introduced by
other entrepreneurs
3. Fabien entrepreneurs
This is a traditionally bounded entrepreneur.
They are shy and lazy. They try to follow
footsteps of their elders.
4. Drone entrepreneurs
Drone entrepreneurs are those who refuse to
adopt and use opportunities to make changes in
production.
They follow traditional methods of production.
Social Entrepreneur
Social entrepreneurs are those who start business
not for making profit, but for providing social
welfare.
Commercial Entrepreneur
They are those entrepreneurs who start business
for making money.
Main purpose generates sales and profit.
Intrapreneur
 Intraprenuer is an employee within an
organization who takes on the mind set and
characteristics of an entrepreneur.
 An intraprenuer is someone acts like an
entrepreneur while working in a company
 They come with new and take risk to help the
company grow and improve.
 Women Entrepreneurship
 Women entrepreneurship refers to the
practice of women starting and operating
their own business.
 Women take role of owner, leader, and
founder of business for creating and
managing the business enterprise for making
profit.

Reasons for slow growth of women

Entrepreneurship in Kerala.
1. Unfavorable family background.
2. Lack of business education.
3. Dual role of women.
First generation entrepreneurs 4. Family burden
 First generation entrepreneurs have no 5. Shortage of capital and technical knowhow.
entrepreneurial family background. 6. Lack of adequate transport and communication
 He is one who starts firstly a business unit in 7. Shortage of power.
his family by using his innovative ideas and 8. Lack of security.
skills.
Role of first generation entrepreneurs Problems (Challenges) of women entrepreneur.
1. Innovation 1. Shortage of finance
2. Risk taking 2. Shortage of raw material
3. Capital formation 3. Shortage of technology
4. Employment generation 4. High competition
5. Export promotion 5. Family responsibility
6. Market creation 6. Lack of education
(Refer Importance of entrepreneurship, page no.1 for 7. Fear of taking risk
explanation) 8. Inadequate marketing facilities

Practice to Entrepreneurship development

Remedial measures to overcome the problems
Entrepreneurship development consists of
of women
following components or phases
1. Provide financial support
2. Provide Promotional help.
1) Stimulating phase
3. Provide Training facilities.
It includes creating awareness, motivating and
4. Give assistance for purchase of machinery
inspiring people, identifying potential
and technology.
entrepreneurs etc.
5. Providing special scheme of finance.
6. Provide Marketing assistance.
2) Supporting phase
Provide support for purchase land, building, raw
materials, power, water etc.

3) Sustaining phase
Helps in expansion, modernization, growth,
diversification of the business.
Institutions which provide assistance to women
entrepreneurs
1. Small industrial development organization
(SIDO)
2. National small industries corporation
(NSIC)
3. Industrial development bank of India
(IDBI)
4. Small industrial development bank of
India (SIDBI)
5. Kudumbasree units.
6. Mahila Udayan Nidhi (MUN)
7. Commercial bank
Student entrepreneurship
Student entrepreneurship refers to the practice
of students starting and running their own
businesses while still in school.
Student entrepreneurs typically balance their
business activities with their academic pursuits.
It's a way for students to develop entrepreneurial
skills, gain practical experience, and potentially
turn their ideas into profitable businesses.
Importance of student entrepreneurship
1. Prepares students for uncertain future
2. Create and innovate
3. Teaches problem recognition
4. Make a world better place
5. Important for girls
6. Find hidden talents
7. Critical thinking
8. Benefits to society
Methods of imparting entrepreneurship
education
1. Learning a business
2. Thinking skill
3. Class room instruction
4. Online courses
5. Work shop and seminars
6. guest speakers
7. internship
8. case study
Module 2
Growth of entrepreneurship
Motives Influencing Entrepreneurs
Why do people go in for business and become
entrepreneurs? There are some motives which
influence entrepreneurs. They are follows:
1. To make money
2. Passion : Exciting to do business
3. Independence : Do not like to work under a
boss
4. Desire to control others
5. Greater freedom in the entrepreneurial
career
6. Desire to make a difference in the world
7. Influence of family members, friends and
relatives
8. Availability of resources
9. Stories of successful entrepreneurs
Factors affecting entrepreneurial growth
Large number of factors which contributed to the
growth of entrepreneurship. They are follows
1. Psychological factors
The important psychological factors influencing
entrepreneurial growth as below:
a) Need for achievement: Need for achievement
means the drive to achieve a goal.
b) Recognition: Many people become successful
entrepreneurs just for getting recognition
from others.
c) Need of authority : When they become
entrepreneurs, they can exercise authority
over managers, employees etc.
d) Personal expectations :Expectations for
achieve something
2. Cultural factors
The important cultural factors influencing
entrepreneurial growth as below:
a) Culture: Culture refers to the shared values,
customs, and traditions of a group of people.
b) Religious Belief: Religious beliefs can impact
entrepreneurship because they shape
people's values and priorities.
c) Minority Groups: Minority groups, such as
ethnic or racial minorities, can face unique
challenges and opportunities in
entrepreneurship.
d) Spirit of Capitalism: The "spirit of capitalism"
refers to an attitude that values hard work,
investment, and profit-making. This mind-set
can be a driving force behind entrepreneurial
growth.
3. Social factors
a) Legitimacy of Entrepreneurship: This means
if people in a society see entrepreneurship as
a "real" and respectable job.
b) Family Role Models: Sometimes, if someone
in your family is an entrepreneur, you might
want to be one too.
c) Caste System: This can affect who can start a
business because of traditions and rules.
d) Occupation: if you work in a field related to
your business idea, you might be more likely
to start that business.
e) Education and Technical Qualifications:
Education and training can make it easier to
start a business, especially in technical or
skilled jobs.
f) Social Status: How much people respect and
look up to you in society can affect your
chances of being a successful entrepreneur.
g) Social Responsibility: Some entrepreneurs
want to help their communities.
4. Personality factors.
1. Personality: Your personality traits can
influence your success as an entrepreneur. For
example, being proactive and adaptable can help
you overcome challenges and make your business
grow.
2. Independence: Some people are motivated by
the desire to be their own boss and make their
own decisions. This sense of independence can
drive them to start and grow their businesses.
3.Compulsion: In some cases, people might
become entrepreneurs out of necessity,
especially if they don't have other job
opportunities. Economic or personal
circumstances can compel individuals to start
businesses to support themselves and their
families
5. Economic factors
1. Infrastructural Facilities: This means having
good roads, buildings, and utilities like electricity
and water. If these things are in place, it's easier
for businesses to operate and grow.
2. Availability of Capital: Businesses need money
to start and grow. If it's easy to get loans or find
investors, more people can start businesses
3. Availability of Raw Materials: If you need
specific materials to make your product, it's
important they are easy to find and not too
expensive.
4. Labour Conditions: This is about how workers
are treated and paid. If workers are treated well
and paid fairly, it can attract more people to work
in your business.
5. Market: This is all about customers. If there are
lots of people who want to buy your product,
that's great for your business. A big market can
help your business grow.
6. Support System: This means having
organizations or services that help businesses,
like mentoring, training, or business associations.
They can provide guidance and resources to
entrepreneurs
7. Government Policies: The government can
make rules that either help or hurt businesses.
Good policies can make it easier to start and run
a business, while bad policies can make it harder.
Rural entrepreneurship
 Rural entrepreneurship means
entrepreneurship emerging in rural areas. In
other words, establishing industrial units in
the rural areas is known as rural
entrepreneurship.
 Entrepreneurs consist of small producers,
small traders, small farmers, artisans who
carry on entrepreneurial activities in rural
areas.
Need and importance
1. Create employment opportunities in rural
areas
2. Helps in rural development
3. Help to eradicate poverty
4. Helps economic growth of the country
5. It is environmental friendly
6. It helps to improve standard of living
7. Provide products at low cost
Problems and challenges
1. Lack of finance
2. Lack of skilled employees
3. Lack of proper machineries
4. Lack of technology
5. Lack of transportation and communication
facility
6. Shortage of raw materials
7. Poor quality products
8. Inadequate infrastructure
Social Entrepreneur
 They are interested in starting a business for
greater social good and not just for profits.
 A social entrepreneur is a person who does
business for solve social problems
 These individuals are willing to take risk and
effort to create positive changes in society
through their initiatives.
Difference between business entrepreneur and
social entrepreneur
Types of Social Entrepreneurship
1. The Community Social Entrepreneur:
This social entrepreneur starts a business to serve
the social needs of a community within a
relatively narrow geographical area.
2. The Non-Profit Social Entrepreneur:
They are reinvested in profit into the business to
facilitate the further expansion of services
offered.
3. The Transformational Social Entrepreneur:
Enterprise able to meet those social needs not
adequately being met by governments and other
business
4. The Global Social Entrepreneur:
The global social entrepreneur works toward
complete transformation of a social system to
change world.
Role of Entrepreneur in Economic Development
Economic
1. Creating job: creating a lot of MSME create a
large scale of job opportunity
2. Promoting capital formation :
entrepreneurship helps to mobilize idle
savings from public
3. Increasing per capital income and GDP : they
convert ideal income to national income leads
the growth of GDP and per capita income
4. Improving physical quality of life: due to
increase employment opportunity the
poverty is erased to improve standard of
living.
5. Improving standers of living: start a new
business, hire new employee. Workers earn
more income leads to better living.
6. Helping the growth of infrastructural
facilities: such as roads, bridge, buildings,
factories etc.
7. Export handicraft items : they generally use
traditional skill, traditional technology,
experience to create demand
8. Balanced regional development: to promote
entrepreneurship in backward area is helps in
balanced regional development in India.
Module 3
Entrepreneurial motivation
Entrepreneurial motivation
The entrepreneurial motive refers to the driving force
or factor that inspires individuals to start and run their
own businesses.
Motivating Factors
1. Financial Gain: Making money and achieving
financial security is a fundamental motivation for
many entrepreneurs.
2. Passion: A genuine enthusiasm for their business
idea or the industry they are entering can be a
powerful motivator.
3. Ambition: The desire to set and achieve ambitious
goals is a driving force for many entrepreneurs.
4. Compulsion: In some cases, entrepreneurs may be
compelled to start a business due to circumstances or
a perceived lack of alternative employment
opportunities.
5. Support from Family: Having the support and
encouragement of family members can be a strong
motivator for individuals to start their own
businesses.
6. Success: The prospect of achieving personal and
professional success through entrepreneurship is a
significant motivator.
7. Inspiration from Other Entrepreneurs: Learning
from the stories and experiences of successful
entrepreneurs can inspire individuals to follow a
similar path.
8. Independence: The desire for autonomy and being
one’s own boss is a common motivating factor.
Entrepreneurial competencies
Entrepreneurial competencies are the skills,
knowledge, and attributes that individuals need to
successfully plan, start, manage, and grow a business.
These competencies include:
1. Initiative: The ability to proactively take action and
start new projects or ventures.
2. Ability to See and Act on Opportunities: Identifying
market gaps or unmet needs and having the initiative
to capitalize on these opportunities.
3. Information Seeking: Actively seeking out relevant
and valuable information to make informed business
decisions.
4. Commitment to Work: Demonstrating a strong
dedication to working hard and putting in the effort
required for entrepreneurial success.
5. Systematic Learning: The willingness and ability to
continually learn and adapt, systematically improving
one's skills and knowledge.
6. Problem-Solving Ability: Effectively addressing
challenges and finding solutions to issues encountered
during the entrepreneurial journey.
7. Innovation: The ability to identify and create new
and unique business ideas, products, or services.
8. Risk Management: Effectively assessing and
managing risks associated with entrepreneurship..
9. Leadership: The ability to lead and motivate teams,
make decisions, and manage operations.
10. Communication: Effectively conveying ideas,
strategies, and information to others.
Institutional Effort and Role of Government in
Developing Entrepreneurship
Three types of role are played by government and
other agencies, they are follows:
1. Promotion Role:
- Involves actively encouraging and promoting
entrepreneurship within the country or region.
- This can include marketing campaigns, creating a
favourable environment for start-ups, and fostering a
culture of entrepreneurship.
Promotional set institutions set up by govt. such as
KINFRA, KFC, KITCO ect.
2. Supportive Role:
- Focuses on providing various forms of assistance
and support to aspiring entrepreneurs.
- This may include access to funding, mentoring,
incubators, and business development services.
3. Regulatory Role:
- Involves establishing and enforcing regulations and
policies that govern business activities.
- The aim is to ensure fairness, safety, and
compliance with legal standards in the
entrepreneurial ecosystem.
Entrepreneurship Development Program (EDP)
Entrepreneurship Development Program, or EDP, is a
training program designed to help individuals to
develop skills and knowledge to start and run their
own business successfully. These programs cover
various aspects of the Entrepreneurship Skill
Development course. It includes business planning,
marketing, finance, and management.
Need for EDP (Importance or Relevance)
1. Helpful for Entrepreneurial Career Development
2. Help to Reduce Unemployment in Society
3. Ensure Economic Growth
4. Help to Develop the Skill and Knowledge of
Entrepreneurs
5. Provide Training and Other Supporting Programs
6. Help to Utilize the Limited Resources Effectively
Objectives of EDP
a. Short-term objective: Short-term objectives imply
objectives which are to be achieved immediately after
the completion. It includes:
1. It helps in selecting products.
2. It helps in formulating plans.
3. It improves skills of the entrepreneurs.
b. Long-term objectives
1. To improve the performance of the entrepreneurs.
2. Reduce unemployment in society.
3. Provide education to the entrepreneurs.
4. Industries in rural areas.
Phases of EDP
1. Initial or Pre-Training Phase:
This phase involves the preparatory work before the
actual training begins. It includes:
A. Creation for Infrastructure for Training
B. Preparation of Training for labour
C. Arrangement of Inauguration Program
D. Designing Tools and Techniques
2. Training and Development Phase:
In this phase, participants undergo the actual training,
where they acquire the skills, knowledge, and
competencies required for entrepreneurship. The
content of this phase typically covers various aspects
of business development.
3. Post-Training or Follow-Up Phase:
After the training is completed, the post-training
phase involves activities to support participants as
they transition to applying what they’ve learned. This
phase often includes mentoring, access to resources,
and monitoring their progress in implementing their
entrepreneurial plans.
Course content and curriculum of EDP
An Entrepreneurship Development Program (EDP)
typically includes a wide range of topics to help
individuals develop the skills and knowledge needed
to start and manage successful business. Following
topics are included:
1. Business Idea Generation: Methods for generating
business ideas, identifying opportunities, and
evaluating the feasibility of these ideas.
2. Business Planning: Creating a comprehensive
business plan that covers aspects like market
research, financial projections, and operations.
3. Technical Knowledge and Skills: This likely includes
instruction in specific technical areas or fields,
providing students with the necessary knowledge and
skills related to their chosen profession.
4. Achievement Motivation Training: This might
involve teaching individuals how to set and achieve
personal and professional goals, as well as strategies
for motivation and self-improvement.
5. Managerial Skills: This could encompass learning
how to effectively manage people, projects, and
resources, including leadership, decision-making, and
organizational skills.
6. Marketing Survey: This likely involves
understanding market research, consumer behaviour,
and how to gather and analyse data to make informed
marketing decisions.
7. Support System: This may refer to the development
of systems or structures to provide support, both
within an organization and externally, to enhance
productivity and well-being.
8. Project Preparation: This probably involves
teaching students how to plan, initiate, and execute
projects, including project management
methodologies and tools.
Role of EDP
1. Stimulatory role:
a. Provide education
b. help for preparing planning
c. identification of potential entrepreneurs
d. provide information
e. Provide guidance.
2. Supportive role:
a. Helping in registration
b. arranging finance
c. Providing land power, water, etc.
Module 4
Launching of New Enterprise
Business Idea Generation
The first and foremost problem of an entrepreneur is
to find out a suitable business which can give him a
reasonable profit. Therefore, he has to find, search for
a business idea and give a practical shape to his idea.
This should be sound and workable.
Sources of project idea
1. Our own need - The need and want of people lead
to generation of the business idea.
2. Marketing characteristics- Careful observation of
market can reveal a business idea.
3. Success stories of friends and relatives - The
successful stories of friends and relatives inspire
others.
4. Trade fair and exhibition -Government and other
organizations conduct many trade fair and exhibitions.
This will lead to generation of business idea.
5. Prospective consumer- The opinion and suggestion
of the consumer will lead to generation of business
idea.
6. Hobbies - Some people are interested in doing
something. It provides possible use of such a skill to
set up an enterprise.
7. Utilization of wasteful materials - People starts
business by using waste materials.
8. Research organization - Study of new product or
process will lead to generation of business idea.
Setting up of a new business
Setting up of a new business is a complicated process.
It involves a number of steps to be taken carefully.
Starting a new business venture involves the following
steps.
1. Identification of business opportunity
2. Selection of form of ownership
3. Selection of location for designing capital structure
4. Procurement of land and building
5. Preparation of project report
6. Apply for registration
7. Obtaining license
8. Applying for power and connection
9. Apply for Loan
10. Order for Machinery
11. Recruitment of Manpower
12. Purchase of Raw Material
13. Development of Product
14. Establish Product Distribution Network
15. Registration under GST Act
Micro, Small, Medium Enterprises (MSMEs)
It means a business which is characterized by low
initial investment, small number of employees, and
low sale volume as compared to regular sales
business.
Features / characteristics of MSME or Small scale
industry (SSI)
1. They provide variety of product to the society.
2. They provide more employment opportunity.
3. They invest should be low.
4. They use labour intensive technology.
5. They use unskilled labours.
6. It ensures balanced regional development.
Objectives / Advantages of MSME or SSI
1. To provide employment opportunity
2. Production of large variety of goods
3. To ensure balanced regional development
4. Not required huge capital
5. MSME enjoy government support
6. They are relatively more environmentally friendly
Problems / Limitations of MSME or SSI
1. Low capital or inefficient finance
2. Lack of proper machinery
3. Lack of skilled labours
4. Lack of quality raw materials
5. Out-dated technology
6. Low quality products
7. Global competition
Business incubators (Entrepreneurship Incubator)
Business incubators are organizations or programs
designed to support the development and growth of
early-stage start-ups and small businesses. Their main
objectives are to provide entrepreneurs with the
resources, infrastructure, and guidance they need to
succeed.
Benefits provided by business incubator
1. Workspace Facility
2. Mentorship and Guidance
3. Network Opportunity
4. Provide Financial Assistance
5. Training and Workshop
6. Legal and Administrative Support
7. Provide Technical Support
8. Identifying Potential Opportunities
Seed accelerator
 A seed accelerator is a program or organization
that provides early-stage start-ups with funding,
mentorship, and resources to help them grow and
succeed.
 Start-ups accepted into these programs typically
receive a small amount of initial investment in
 exchange for equity, along with guidance and
support in areas like product development,
marketing, and business strategy.
 Some well-known seed accelerators include Y
Combinator, Techstars, and 500 Startups.
MSMEs as a breeding ground for entrepreneurship
MSMEs serve as a breeding ground for
entrepreneurship because they make it easy for
people to start small businesses, learn key skills, try
out new ideas, and eventually contribute to the
economy and local business communities. They
provide following facilities:
1. Low entry barriers
2. Skill development
3. Innovation
4. Job creation
5. Economic growth
6. Local and regional development
7. Market testing
8. Supplier ecosystem
Incentives
 Incentives refer to the financial and promotional
support given by the government to industries,
aimed at spurring industrial growth, especially in
underdeveloped regions.
 The objective of incentives is to motivate
entrepreneurs to start new business. Incentives
include concessions & subsidies
Need and Importance of Incentives and subsidies
1. Financial support
2. Enhancing social welfare.
3. Business growth
4. Infrastructure development.
5. Job creation
6. Regional development
7. Innovation
8. Market expansion
9. Rural development.
10. Strengthening the entrepreneurial ecosystem
Tax benefits to MSMEs
1. Tax Holiday: Newly established businesses can be
exempt from taxes for a defined period.
2. Rehabilitation Allowance: Supports financially
troubled businesses through tax incentives.
3. Income Tax Exemption: Grants income tax relief or
reduced rates to encourage small business growth.
4. Development Rebate: Offers tax benefits for R&D,
modernization, or investment in specific sectors.
5. Investment Allowance: Provides incentives to
offset capital expenditures for small businesses.
6. Depreciation Allowance: Allows businesses to claim
depreciation on assets, reducing taxable income.
Institutional finance
Institutional finance for entrepreneurs refers to
financial support and resources provided by
established institutions to help entrepreneurs start or
expand their businesses.
Institutional finance for entrepreneurs can be
classified into two categories:
1. All India Financial Institutions and 2.State Level
Financial Institutions. All India Financial Institutions
include SIDBI, IDBI, IFCI, LIC, GIC,k hadhi and villege
Commission, UTI, Commercial Bank ect.
All India Financial Institutions
1. IFCI (Industrial Finance Corporation of India)
Meaning: IFCI stands for the Industrial Finance
Corporation of India. It is a financial institution that
primarily focuses on providing long-term financial
assistance to industrial and infrastructure projects in
India.
Functions: IFCI offers term loans, underwriting
services, and financial advice to promote industrial
and economic development in the country.
Year of Establishment: IFCI was established in 1948.
2. ICICI (Industrial Credit and Investment Corporation
of India)
- Meaning: ICICI, which was previously known as the
Industrial Credit and Investment Corporation of India,
is a major financial institution in India.
- Functions: ICICI offers a wide range of financial
services, including retail banking, corporate banking,
investment banking, and insurance. Its functions are
diverse and cater to various financial needs.
- Year of Establishment: ICICI was established in
1955.
3. IDBI (Industrial Development Bank of India):
- Meaning: IDBI stands for the Industrial
Development Bank of India. It is a government-owned
financial institution.
- Functions: IDBI provides financial and
developmental support to industries and projects. It
offers loans, project finance, and investment services
to promote industrial growth in India.
- Year of Establishment: IDBI was established in
1964.
4. SIDBI (Small Industries Development Bank of
India):
 - Meaning: SIDBI, or the Small Industries
Development Bank of India, is a financial institution
that primarily focuses on the development and
promotion of small-scale industries, micro, small, and
medium enterprises (MSMEs).
- Functions: SIDBI extends financial support to
MSMEs through loans, credit schemes, refinancing,
equity support, and developmental activities. It plays
a crucial role in the growth of the MSME sector in
India.
- Year of Establishment: SIDBI was established in
1990.
5. Khadi and Village Industries Commission:
- Meaning: The Khadi and Village Industries
Commission (KVIC) is a statutory body in India that
promotes and develops khadi (hand-spun and
handwoven cloth) and village industries.
- Year of Establishment: KVIC was established in
1957.
6. Life Insurance Corporation of India:
- Meaning: The Life Insurance Corporation of India
(LIC) is the largest state-owned insurance company in
India.
- Year of Establishment: LIC was established in 1956.
7. General Insurance Corporation of India:
- Meaning: The General Insurance Corporation of
India (GIC) is a reinsurance company in India.
- Year of Establishment: GIC was established in
1972.
8. Unit Trust of India:
- Meaning: The Unit Trust of India (UTI) was a
financial institution that managed various investment
schemes and funds.
- Year of Establishment: UTI was established in
1963.
9. Commercial Bank:
- Meaning: A commercial bank is a financial
institution that provides a wide range of banking and
financial services to the public and businesses.
2. State Level Financial Institutions
1. Kerala State Industrial Development Corporation
(KSIDC):
- Meaning: KSIDC stands for the Kerala State
Industrial Development Corporation. It is a
government-owned organization in the state of
Kerala, India.
- Functions: KSIDC is primarily responsible for
promoting and facilitating industrial development in
Kerala. It provides a range of financial and non-
financial services to support the establishment and
growth of industries in the state, including project
financing, infrastructure development, and advisory
services.
- Established Year: KSIDC was established on 22nd
February 1961.
2. Kerala Financial Corporation (KFC):
- Meaning: KFC represents the Kerala Financial
Corporation. It is a government-owned financial
institution in the state of Kerala, India.
- Functions: KFC focuses on providing financial
assistance and support to small and medium-sized
enterprises (SMEs) and industrial ventures in Kerala. It
offers various financial products, including term loans,
working capital financing, equipment financing, and
advisory services to promote economic development
in the state.
- Established Year: KFC was established in 1953.
Project
 A project simply refers to any investment
opportunity which is to be exploited for profit. It is
an idea or plan which is intended to be carried
out.
 A project is a plan created to develop a product,
service, or result. Thus, a project may be defined
as a venture that brings together man, machine,
and all other resources to accomplish the
organizational goal.
 Some examples of projects are construction of a
facility, expanding existing business, building a
ship, constructing a bridge, etc.
Features or Characteristics of a Project
1. Project involves investment of money.
2. It is a risky activity.
3. It has a fixed setup objective.
4. It has a definite beginning and end.
5. A project requires teamwork.
6. It has a life cycle reflected by growth, maturity, and
decline.
Project analysis
 Project analysis simply refers to the process of
examining or studying the various aspects of a
project in detail.
 It is concerned with analysing the different
aspects of a project with a view to see that the
project runs as expected and it is also within the
predetermined budget.
 In short, project analysis means examining all
costs and problems of a project before work is
started or after the work is started.
Benefit of a project analysis
1. Determines feasibility of a project
2. Help in budgeting
3. Improve project planning and scheduling
4. Detecting and minimizing risk
5. Expand the monitoring and evaluating the project
finished product, highlighting key processes and
technologies.
7. Raw Materials: List and describe the raw materials
required for production, including their sources,
quality, and availability.

Feasibility study 8. Transportation and Communication: Discuss the

 Feasibility study is a study to ensure whether the
proposed project is legally and technically feasible
as well as economically justifiable.
 It tells whether the project is worth to invest fund.
In short, feasibility study evaluates the project's
potential for success or chance for success
Types of Feasibility Study
1. Technical Feasibility
2. Economical Feasibility
3. Legal Feasibility
4. Operational Feasibility
5. Scheduled Feasibility
Project report
A project report is a comprehensive document that
provides detailed information about a specific project.
It typically serves as a formal record of the project's
planning, execution, and outcomes.
Content of Project report
transportation methods used for procuring raw
materials and distributing the product. Also, describe
the communication infrastructure for the project.
9. Manpower Requirement: Detail the human
resource needs of the project, including the number
and types of employees required, their roles, and
skillsets.
10. Land and Building: Provide information about the
land and building requirements for the project, such
as size, location, and construction specifications.
11. Plant and Machinery: List and describe the
machinery and equipment needed for the project,
including their specifications and costs.
12. Cost of the Project: Present a detailed breakdown
of the project's cost, covering all aspects, including
capital expenditures, operational costs, and any
contingencies.

1. Introduction: This section provides an overview of

the project, its objectives, and the purpose of the
report. It often includes a brief description of the
project's significance.

2. Background: Here, you provide context for the

project, including the reasons for undertaking it and
any historical or market background that is relevant.

3. Product: Describe the product or service that the

project aims to deliver. This section should include
details about the product's features, specifications,
and potential benefits.

4. Marketing and Marketing: Discuss the marketing

strategy for the product, including target market,
pricing, promotion, and distribution plans. This section
outlines how the product will be marketed and sold.

5. Location: Specify the location where the project will

be implemented. This can include details about the
geographical area, local infrastructure, and
accessibility.

6. Production Process: Explain the steps involved in

the production process, from raw materials to
Module 5
Support system for entrepreneurs
Meaning of Support System
The term 'support system' generally refers to the
economic environment of industry and business
comprising authorities and institutions to support
the entrepreneurs or MSMEs.
The Small Scale Industries Board (SSIB)
 It was a government body in India responsible
for promoting and developing small-scale
industries in the country.
 It played a significant role in formulating
policies and programs to support the growth
of these industries.
Functions of SSIB
1. To advise on the programs and policies for the
development of MSME sector.
2. To offer advice on modifications or
improvements for micro, small and medium
industries in the country.
3. To give credit to MSME units on liberal terms.
4. To facilitate co-ordination and linkage between
various agencies/departments.
Small Industrial Development Corporation
(SIDCO)
It is a government owned public sector
corporation, was established in 1975 for the
development and promotion of small scale
industries in Kerala.
Functions / Activities of SIDCO
1. SIDCO supplies scarce raw materials
2. SIDCO provides marketing assistance
3. SIDCO assists in bills discounting
4. SIDCO provides export marketing assistance
5. SIDCO promotes women entrepreneurs
6. SIDCO promotes skill development centers
MSME Institute
 MSME is a national institute aimed to foster
the progress of micro, small and medium
enterprises in India under the Ministry of
Micro, Small and Medium Enterprises.
 The Institute has been working in the areas of
capacity building, research, skill upgradation,
job enrichment training in the field of
Entrepreneurship and Skill Development.
The functions of MSME Institute
1. Facilitation and credit flow to MSMEs.
2. Improving competitiveness of MSMEs.
3. Improve manufacturing through upgradation of
technology.
4. Marketing support to MSMEs
5. Skill development and entrepreneurship
development training.
Industrial Estates
7. It is a place where necessary infrastructure
facilities are made available to entrepreneurs.
8. In short, industrial estate is place where the
required facilities and factory accommodation
are provided by the government to the
entrepreneurs to establish their industries
there.
Objectives of industrial estates
9. To provide infrastructure and accommodation
facilities to the entrepreneurs.
10. To encourage development of small scale
industries in the country.
11. Establish common facility service centers.
12. To promote development of clusters.
13. To promote development of backward areas.
To promote balanced regional development
Types/ Classification of industrial estates.
1. General purpose or composite industrial
estates
These provide accommodation to a wide variety
and range of industrial concerns.
2. Special purpose industrial estates
These types of industrial estates constructed for
specific group of entrepreneurs.
3. Ancillary industrial estates
This type of industrial estate produces parts and
components for a large industrial unit. It set up
near the parent unit
4. Functional industrial estate
Same products are usually housed in these
industrial estates.
Specialized institutions
Following are the special institutions commenced
for the purpose of MSME development:
Technical Consultancy Organization (TCO)
8. A technical consultancy organization is a
company or firm that provides specialized
expertise and advice to businesses or
individuals in various technical fields.
9. These organizations typically have a team of
experts who offer guidance, problem-solving,
and solutions related to technology,
engineering, information technology, or other
technical areas.
Functions of TCO
1. Industrial potential surveys
2. Preparation of profiles and feasibility studies
3. Evaluation of project
4. Conduct of EDP
5. Offering merchant banking services
6. Undertaking market research and surveys for
specific products
Kerala Industrial Technical Consultancy
Organization (KITCO)
This is the first technical consultancy organization
in India. It was established in 1972.
Objective= meeting the technical consultancy
need of the entrepreneurs in small, medium and
large scale industrial sectors.
Functions and Services of KITCO
7. Provide industrial consultancy
8. Identification of project ideas and project
reports.
9. Entrepreneurial guidance and development.
10. Consultation services like health and
industries sectors.
11. Management consultancy in functional areas.
12. Diagnostic study of sick units.
13. Helps in infrastructural devolopment
Lead Bank Scheme (LBS)
The Lead Bank Scheme is a program in India
initiated by the Reserve Bank of India (RBI) to
promote financial inclusion and rural development.
Objectives of LBS
1. To help in removing regional imbalances
through appropriate credit deployment
2. To extend banking facilities to unbanked areas
3. To eliminate credit gaps in various sectors of an
economy
State Level Bankers' Committees (SLBCs)
 They are forums in India that play a crucial role
in coordinating and facilitating banking and
financial activities at the state level.
 They are formed with the primary objective of
promoting financial inclusion, rural
development, and ensuring the effective
implementation of various government-
sponsored schemes and programs.
Loans and Advances available for Entrepreneurs
1. Line-of-credit loans
2. Installment loans
3 Balloon loans
4. Interim loans
5. Secured and unsecured loans
6. Letter of credit
Schemes of Financial Institutions
1. MSME Loans in 59 Minutes
Approval of the loan is provided in 59 minutes.
An amount of 1 lakh to 1 core is provided, interest
of 8% is charged.
2. SIDBI’s Working Capital Cash Credit
There is a need for working capital for day-to-day
running of the business. Considering this, SIDBI
offers working capital cash credit.
3. Raw Material Assistance Scheme from National
Small Industries Corporation.
This scheme aims at facilitating MSMEs by financing
of raw material purchases
4. Stand-up India
Startup India is an initiative launched by the
Indian government to promote and support
startups in the country
Start-ups 6) In curriculum, business school creates business
in house experience.
 A start-up simply means a business that has
7) Several universities now have a 'business park
just been started.
'or incubators'.
 A startup business refers to a newly
established company or entrepreneurial Role of NGOs in Entrepreneurship Development
venture that is typically in its early stages of Non-Governmental organizations also Play a
development. These businesses are often significant role in entrepreneurship development
characterized by innovative ideas, a focus on by providing various forms of support
growth, and a potential for rapid expansion.  Some NGOs mobilize their own resources, to
 Startup India is an initiative launched by the develop activities
Indian government to promote and support  NGOs like SEWA and AWAKE procure funds
startups in the country from various agencies, impart training, and
conduct workshops for target work force.
Features of Start-ups  Some NGOs conduct field activities by
1. Innovation establishing direct contact with the grass-root
2. Focus on technology needy people.
3. High Growth opportunity  NGOs are conducting EDPS and other training
4. Quick decision making programs for the target people
5. High failure rate  NGOS are providing counseling and
6. Risk-Taking consultancy services to the needy ones on
how to prepare a project, feasibility report,
Reasons for startup failures (Challenges of Startup)
1. Business Model Failure
Entrepreneurial Eco system in Kerala
2. Poor Management Team
 Kerala's entrepreneurial ecosystem is rapidly
3. Insufficient Funds evolving, characterized by a growing number of
4. Legal Challenges start-ups, incubators, and government support.
5. Lack of Market Demand  Kerala's unique focus on sectors like healthcare,
6. Ignoring Customers' Needs tourism, and agriculture, in addition to
7. Poor Marketing technology, has led to a diverse and innovative
entrepreneurial landscape, with start-ups
addressing a wide range of societal and
Role of Universities and Colleges in Developing economic challenges.
Entrepreneurship
1) They provide various entrepreneurial
competencies through various courses, training
and development programs.
2) They provide motivational training, it leads
need for achievements.
3) Course structure is encouraged to become an
entrepreneur.
4) case study of various entrepreneurs can
identify the SWOT.
5) It encourages individual creativity and
innovations.