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ENTREPRENEURSHIP DEVELOPMENT
(B.COM / BBA)
MODULE I
CONCEPT OF ENTREPRENEUR AND
ENTREPRENEURSHIP
Entrepreneur
An entrepreneur is a person who combines capital and labour for the
purpose of production.
Characteristics of entrepreneur
1. Entrepreneur brings about changes in the society.
2.Entrepreneur is action oriented and highly motivated individual.
3. He take risk to achieve goals.
4. Entrepreneur is thinker and doer.
5. Entrepreneur is planner and worker.
6. Entrepreneur build new enterprises.
7. Entrepreneur accepts responsibilities with confidence.
Role of entrepreneurs in economic development
1. Employment opportunities.
2. Balanced regional development.
3. Increase per capita income.
4. Encourage democracy and self-governance.
5. Promotion of exports.
6. Optimization of capital.
7. Mobilization of local resources.
8. Economic integration.
9. Growth of capital market.
10. Growth of infrastructure.
Traits / qualities of entrepreneur
1. Passion for business.
2. Creativity.
3. Hard work.
4. Optimism
5. Self confidence
6. Leadership
7. Communication skill
8. Team spirit
9. Technical knowledge
10. Foresight
Functions of entrepreneurs
1. Planning the project.
2. Organising.
3. Decision making.
4. Innovation.
5. Project implementation.
6. Risk taking and uncertainty bearing.
7. Distribution of income.
8. Management of finance.
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 demonstrates his skill in organizing and managing
a corporate undertaking.
5. Agricultural entrepreneur
They are entrepreneurs who undertake agricultural activities.
B. On the basis of use of technology
1. Technical entrepreneur
They are extremely task oriented. They are craftsman type.
2. Non technical entrepreneurs
These entrepreneurs are not concerned with the technical aspects of
the product.
3. Professional entrepreneurs
He is an entrepreneur who starts business unit but not carry on the
business for long period.
C. On the basis of motivation
1. Pure entrepreneur
It is a type of entrepreneur; they believe in their own performance
while undertaking business activities.
2. Induced entrepreneur
He 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 the desire to make use of
their technical and professional experts and skills.
D. On the basis of stages of development
1. First generation entrepreneur
He is on who starts an industrial unit by means of his own innovative
ideas and skills.
2. Modern entrepreneur
He is an entrepreneur who undertakes those venture which suits the
modern marketing needs.
3. Classical entrepreneur
He is one who develops a self supporting venture for the satisfaction
of customers need.
E. On the basis of entrepreneurial activity
1. Novice
A novice is someone who has started his or her first entrepreneurial
venture.
2. Serial entrepreneur
A serial entrepreneur is someone who is devoted to one venture at a
time, but ultimately starts many.
3. Portfolio entrepreneur
He is started and run a number of business at the same time.
F. Classification by clearance Danhof
1. Innovative entrepreneur
He is an entrepreneur who has to introduces new goods, methods,
production etc.
2. Adoptive entrepreneur
This type of entrepreneur do not innovate new changes themselves.
It is also called imitative entrepreneurs because they imitate
technology innovated by others.
3. Fabien entrepreneurs
This is a traditionally bounded entrepreneurs. They are shy and lazy.
They try to follow footsteps of their predecessors.
4. Drone entrepreneurs
Drone entrepreneurs are those who refuse to adopt and use
opportunities to make changes in production.
Commercial entrepreneur
They are those entrepreneurs who starts business business
entrepreneurs for their personal gain.
Social entrepreneur
Social entrepreneurs are those who starts business not for making
profit, but for providing social welfare.
 Factors affecting entrepreneurial growth
Economic Social Personality Psychological Cultural
factors factors factors factors factors
Infrastructural Caste system Personality Need for Culture
facilities achievement
Availability of Occupation Independence Recognition Religious
capital belief
Government Education Compulsion Need of Minority
policies authority groups
Labour Social status Personal Spirit of
conditions motives. capitalism
Market Family
conditions
Entrepreneurship
It is the process of creating value by bringing together unique
package of resources to exploit an opportunity.
Intrapreneur
It refers to an employee of the organisation who is in charge of
undertaking innovations in product, service, process, etc.
Difference between Entrepreneur and Intrapreneur
Entrepreneur Intrapreneur
Entrepreneur is independent Intrapreneur is semi
independent.
Entrepreneur works for profit. Intrapreneur works for salary.
Entrepreneur is the real owner Not a real owner of the
of the business. business.
Operates from outside an Operates within the
organisation. organisation.
Raises the required capital. Does not raise any amount of
capital.
Difference between entrepreneur and manager
Entrepreneur Manager
Entrepreneur is the owner of the Manager is the employee of t he
enterprise. enterprise.
Works for profit. Works for salary.
Self motivated. Motivated by power.
Responsibility is high. Responsibility is low.
Introduce innovation and new Executes plans and take
ideas. decisions.
Women Entrepreneurship
Any women or group of women which initiate, innovates or adapts
an economic activity is called women entrepreneurship.
Problems / Challenges of women entrepreneurship
1. Shortage of finance.
2. Difficult to store raw materials.
3. Inadequate market facilities.
4. Keen competition.
5. High cost of production.
6. Lack of education.
7. Family responsibilities.
8. Low mobility.
9. Lack of training.
10. Rigid social attitude.
11. Lack of information
12. Low need for achievement.
Remedial measures to overcome the problems of women
entrepreneurship
1. Promotional help.
2. Training facilities.
3. Selection of machinery and technology.
4. Providing special scheme of finance.
5. Marketing assistance.
Assistance to women entrepreneurs
1. Small industrial development organisation (SIDO)
2. National small industries corporation (NSIC)
3. Industrial development bank of India (IDBI)
4. Small industrial development bank of India (SIDBI)
5. Commercial banks.
6. Koumbaros units.
Entrepreneurial development Programme (EDP)
Entrepreneurship Development Programme (EDP) is a programme
which helps in developing entrepreneurial abilities.
Need for EDP
1. Heps the unemployed people.
2. Helps faster industrialisation.
3. Helps in creation of employment opportunities.
4. Helps in achieving high rate of economic growth.
5. Improve standard of living.
Objectives / Importance of EDP
1. Optimum utilisation of resources.
2. Improved standard of living.
3. Ensure industrialisation.
4. Allow global market entry.
5. Innovation is the gateway.
Phases or process of EDP
1. Identify and selecting those who could be trained as
entrepreneurs.
2. Developing their entrepreneurial capabilities.
3. Ensuring that each potential entrepreneur as a viable industrial
project.
4. Equipping entrepreneurs with basic managerial understanding.
5. Helping them to secure necessary financial infrastructure and
other assistance.
Courses, Content and curriculum of EDP
1. Technical knowledge and skills.
2. Achievement motivation training.
3. Project management training.
4. Market survey.
5. Managerial skill.
6. Project preparation.
7. Industrial visits in plant training.
8. Business management guidance.
Training to entrepreneurs
1. Lecture method.
2. Conference method.
3. Individual instruction method.
4. Group instruction method.
5. Role playing.
6. Meetings.

MODULE II
INSTITUTIONAL SUPPORT AND INCENTIVES TO
ENTREPRENEURS
Types of finance
1. Short term finance
It refers the funds required to meet the commitment during the
shorter period of time.
2. Medium term finance
It refers the funds required to meet permanent working capital
needs.
3. Long term finance
It is required to purchase fixed assets, establishing a new business
etc.
Working capital support
Working capital refers to the capital required to meet day to day
expenses of the business enterprise. Working capital support fulfilled
through loans from commercial banks.
Fixed capital support
Fixed capital refers to capital required to purchase fixed assets.
Fixed capital needs could be fulfilled through market borrowings and
long term loans.
Institutional supports to entrepreneurs
1. Department of industries and commerce (DIC).
The district industries programme was started by the central
government in 1978 with the objective of promoting the small, tiny,
cottage and village industries in a particular area and to provide
necessary services to them.
Objectives of DIC
1. Attainment of equality.
2. Rural industrialisation.
3. Development of rural industries and handicrafts.
4. Accelerate the overall efforts for industrialisation.
5. Providing benefit of government scheme to new entrepreneurs.
Functions of DIC
1. Identifies and develops new entrepreneurs.
2. It arrange financial assistance to artisans and handicrafts.
3. Organising entrepreneurship development training programme.
4. Give SSI registration.
5. Prepare techno economic feasibility report.
6. Advises the entrepreneurs on development.
2. 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 of SIDCO
1. It provides marketing assistance.
2. It promotes skill development centres.
3. It promotes women entrepreneurs.
4. It assist in bill discounting.
5. It supplies scare raw material.
Activities of SIDCO
1. Raw material division
Is engaged in distribution of raw materials to small scale industries.
2. Production division
Eight production units and a tool room are function under Kerala
SIDCO.
3. Marketing division.
Provides assistance to SSI units for marketing their products.
4. Construction division.
To undertake construction and maintenance work of industrial
estates.
5. Industrial infrastructure division
It owns 17 industrial estates and 36 mini-industrial estates in
different district of Kerala.
6. IT and telecommunication division
It provides software and hardware solution to central and state
government departments.
3. National Small Industries Corporation (NSIC)
It was set up in 1995 to provide machinery to small scale units on
hire purchase basis and to assists this units in obtaining orders from
government departments and offices.
Mission of NSIC
“To promote and support MSMS sector”.
Vision of NSIC
“To be premier organisation fostering the growth of MSME sector.
Functions of NSIC
1. Provide machinery on hire purchase scheme.
2. Provide equipment leasing facility.
3. Participate in bulk purchase program of government.
4. undertake construction of industrial estates.
5. Impart training in various industrial trades.
6. Helps in development and upgradation of small scale industries.
4. Small Industrial Development Bank of India (SIDBI)
It is national institution for promotion, financing and development of
small scale industries. It was established on April 2, 1990.
Mission of SIDBI
“To facilitate and strengthen credit flow of MSME and address both
financial and developmental gap in the MSME ecosystem”.
Functions of SIDBI
1. To extend financial support to national small industries
corporation.
2. It promotes employment oriented industries in semi urban areas.
3. Discounting as well as re-discounting of bills.
4. It provides services like leasing, factoring etc.
5. It co-promotes state level venture fund.
6. It promotes modernisation of industrial units.
7. It promotes technological upgradation of industrial units.
5. Khadi Village Industry Commission (KVIC)
It was established by an act of parliament in 1956, with the objective
of promoting khadi and village industries in the rural areas.
Functions of KVIC
1. To plans, promotes and implements programs for the
development of KVI.
2. It encourage and promote research and development in the KVI
sector.
3. It creates linkages with multiple marketing agencies for the
promotion and sale of KVI products.
4. It aids the marketing of KVI products through artisans and other
avenues.
5. It maintain a reserve of raw material that can be further promoted
in supply chain.
6. Small Industries Service Institute (SISI)
SISIs have been established in each states in 1966 as agencies of
SIDO. The objective is to develop small scale industries.
Functions of SISI
1. Conducting EDPs all over the country.
2. To provide market information to SISIs.
3. To promote entrepreneurship and development of SSIs in rural
areas.
4. To conduct various programmes for small industries.
5. To assist in rehabilitation of sick units.
6. To institute conduct modernisation studies for technology
upgradation.
7. To undertake quality control, pollution control and specialised
training.
7. Kerala Industrial Technical Consultancy Organisation (KITCO)
This is the first technical consultancy organisation in India. It was
established in 1972.
Functions and Services of KITCO
1. Identification of project ideas and project reports.
2. Appraisal of industrial projects.
3. Entrepreneurial guidance and development.
4. Consultation services like health and industries sectors.
5. Management consultancy in functional areas.
6. Diagnostic study of sick units.
7. Executive development programme.
8. Project monitoring for large units.
8. Science and Technology Entrepreneurship Development Project
(STEDP)
It was established in 1985 with the objective of encourage
entrepreneurship amongst the science and technology persons and
too specifically in the industrially backward areas of the country.
Objectives or activities of STEDP
1. To identify possible resources based projects in rural and urban
areas.
2. To organise regular enterprise awareness programmes in the
district level.
3. To organise skill development programme in the district level.
4. To improve working of existing enterprises through upgradation of
technology and modernisation of units.
5. To launch at least 200 micro enterprises in the district during the 4
years of duration.
9. National Entrepreneurship Development Board (NEDB)
It was formed in 1983. It acts as an apex body of entrepreneurship
development.
Strategies of NEDB
1. Evolving syllabus for various training programmes.
2. Evolving training methodology.
3. Developing training tools.
4. Giving training to the trainers.
5. Developing entrepreneurial culture.
10. National Institute for Entrepreneurship and Small Business
Development (NIESBUD)
It is an apex body established in 1983 by the ministry of industries,
Government of India for coordinating, training and overseeing the
activities of various institutions, agencies engaged in
entrepreneurship development in the area of small industries.
Objectives of NIESBUD
1. To evolve standardised material and process for selection of
existing and potential entrepreneurs.,
2. To evolve standardised material and process for training and
support of existing and potential entrepreneurs.
3. To help and affiliate institutions in training of entrepreneurial
activities.
4. To accelerate the process of entrepreneurship development across
the country.
5. To organise research and documentation relevant to
entrepreneurship development.
6. To train trainers and consultants in entrepreneurship development
areas.
7. To offer consultancy for promotion of entrepreneurship and small
business industries.
11. Techno Park
Techno Park Kerala refers to a technology park in Trivandrum, India
dedicated to electronics, software and other IT ventures.
Functions of Techno Park
1. Business support.
2. Strengthening cooperation.
3. Technology innovation.
4. Business introduction.
5. Business incubation.
Incentives
It is a motivational force, which encourages an entrepreneur to take
a right decision and act upon it.
Importance / Advantages of incentives
1. To eliminate economic constraints.
2. Balanced regional development.
3. To enhance competitive capability.
4. Training
5. Marketing assistance.
6. Promotional schemes.
7. Credit facilities.
Need for incentives and subsidies
1. To remove regional disparities in development.
2. To provide competitive strength.
3. To provide survival and growth.
4. To provide employment opportunities.
5. To promote entrepreneurship.
Classification of incentives
1. Subsidy
Subsidy is a single lump sum money that is given by a government to
an entrepreneur to cover the cost.
2. Bounty
It is a bonus or financial aid given to an industry to help it to compete
with other units established in country.
Scheme or types of subsidies
1. Power subsidy
2. Suspension of sales tax
3. Capital investment subsidy to new entrepreneurs
4. Technical and consultancy support
5. Seed capital assistance
6. Margin money scheme

MODULE III
MICRO, SMALL AND MEDIUM ENTERPRISES (MSME)
MSME
MSME stands for micro, small and medium enterprises. These are an
important sector for the Indian economy and have contributed
immensely to the country’s socio-economic development.
Micro enterprise
A micro enterprise is a unit where the investment is up to one crore
and annual turnover is up to 5 crore.
Small enterprise
A small enterprise is one where the investment is up to ten crore and
annual turnover is up to fifty crore.
Medium Enterprise
A medium enterprise is the one where investment is up to twenty
crores and the turnover is up to hundred crores.
Ancillary units
Ancillary industries are those units which provide inputs to other
industries.
Export oriented unit
These units are those SSI units which exports at least 30 percent of
its annual production by the end of the third year of commencement
of production.
Characteristics of MSMEs
1. It require less capital.
2. These are generally organised and run by individual
entrepreneurs.
3. They are highly localised industries.
4. They are free from red-tapism.
5. They are free from bureaucratic handicaps.
6. They are eligible for government assistance.
7. They are flexible to a large extend.
Objectives of MSME
1. To provide employment opportunities.
2. It improves the standard of living of the people.
3. It ensure balanced regional development.
4. To promote growth of backward areas.
5. To ensure equitable distribution of national income.
6. To provide production of large variety of goods.
7. To facilitate promotion and development of MSME.
Importance of MSME (Advantages of MSMEs)
1. They are more environmental friendly.
2. They require only less capital.
3. They create employment opportunities.
4. These helps in balanced regional development.
5. They enjoys government support.
6. They are based on local resources.
7. These helps in reducing prices.
8. These helps in balanced regional development.
Disadvantages of MSMEs (Problems of MSMEs)
1. Lack of managerial experience.
2. Inadequate finance.
3. Lack of proper material and equipment.
4. Lack of technical know-how.
5. Problem of marketing.
6. Lack of clear-cut government policy.
7. Personal problems.
Role of MSMEs in the economic development
1. Large employment opportunities.
2. Balanced regional development.
3. Promotion of exports.
4. Economic use of capital.
5. Protection of environment.
6. Higher standard of living.
7. Equitable distribution of income and wealth.
8. Promotion of self-employment.
MSME Act, 2006
The law is enacted with an object of promotion and development of
MSME.
Salient features of MSME Act, 2006
1. Promotion and development of MSME.
2. The act provide definition for small enterprise and medium
enterprise.
3. The act provides for establishment of National Board for Micro,
Small and Medium enterprises.
4. The act provides the classification of MSME on the basis of
investment in plant and machinery.
5. The act provides the composition of facilitation council.
Credit Guarantee Fund Trust Scheme for MSMEs (CGTMSE)
This scheme was launched on 30th August, 2000. This scheme is to
give credit guarantee to financial institution that provide loans to
SMEs and MSMEs.
Industrial Estates
It is a place where necessary infrastructure facilities are made
available to entrepreneurs.
Objectives of industrial estates
1. To provide infrastructure and accommodation facilities to the
entrepreneurs.
2. To encourage development of small scale industries in the
country.
3. To promote development of clusters.
4. To promote development of backward areas.
5. To promote balanced regional development.
Advantages of industrial estates
1. Entrepreneurial development.
2. Low investment.
3. Saving of time and effort.
4. Mutual cooperation.
5. Less risk.
6. Balanced regional development.
Classification of industrial estates
a) General type industrial estates
These provide accommodation to a wide variety and range of
industrial concerns.
b) Special type industrial estates
These types of industrial estates constructed for specific industrial
units.
c) Ancillary industrial estates
In such industrial estates only those small scale units are housed
which are ancillary to a particular large industry.
d) Functional industrial estate
Industrial unit manufacturing same products are usually housed in
these industrial estates.
e) Workshop bay
These types of industrial estates are constructed mainly for very
small firms engaged in repair works.
Bridge Capital
It is a temporary funding that helps a business cover its costs until it
can get permanent capital from equity investors or debt lenders.
Seed Capital
It is the money raised to begin developing an idea for a business for a
business or a new product.
Margin money scheme
It is a scheme to assist deserving entrepreneurs in setting up small
scale industrial units by way of providing soft loan.
Single window system
It is a single point acceptance and electronic distribution of
applications to the respective competent authorities without the
need for applicant to physically visits the office.
Sick unit
A sick unit is one which failed to generate an internal surplus on a
continuous basis and dependent for its survival upon frequent
infusion of funds.
Major causes of sickness
Internal causes for sickness External causes for sickness
Lack of finance. Non availability of inputs
Poor quality of product. Sudden changes in government
policies.
Poor marketing strategies. Government regulations.
Poor management. Competition.
 Lack of adequate working Heavy taxes.
capital.
Labour problems. Technical obsolescence.
Remedial measures to overcome sickness
1. Identifying sickness at early stage.
2. To grand financial assistance.
3. To provide improved infrastructure.
4. Technology upgradation.
5. Government intervention.
6. Proper training facilities.
7. Marketing assistance.
8. Rehabilitation.
Udyog Aadhar Memorandum (UAM)
UAM is a one page registration form which constitutes a self
declaration format under which the MSME will self certify its
existence, bank account details, promoter aadhar details and other
information required.
Guidelines for filling UAM
1. Aadhar Number
2. Name of applicant
3. Social category
4. Gender
5. Name of enterprise
6. Type of organisation.
7. PAN
8. Location of plant
9. Office address
10. Mobile Number
11. Mail Id
12. Bank account details.

MODULE IV
SETTING UP OF INDUSTRIAL UNITS
Entrepreneurial Environment
It refers to overall economic, socio cultural and political factors
influencing entrepreneurial activities.
Entrepreneurial environmental factors
1. Political environment.
It refers to the political actions that impact business operations.
2. Economic environment
All the external factors that influence buying habits of consumers
and business.
3. Social environment
It includes values, beliefs, customs and practices of a group of
people.
4. Technological environment
It refers to electronic devices that can promote sustainable
management of resources.
5. Legal environment
The law which are passed by the government for business operations
is called legal environment.
6. Cultural environment
These are the non renewable resources, they are in a constant state
of renewal and development.
Entrepreneurial Ecosystem
These are peculiar system of interdependent factors and relations
directly and indirectly supporting the creations and growth of new
ventures.
Generation of Project Ideas
It is the process of collection, completion and analysis of economic
data for the purpose of finding out possible opportunities for
investment.
Sources of project idea
1. Our own needs.
2. Trade and professional journal
3. Project profiles
4. Trade file and exhibitions.
5. Success stories of friends and relatives.
6. Research organisations.
7. Study of government policies.
8. Prospective consumers.
Screening of project ideas
The process of evaluating project idea with a view to select best idea
is called screening project ideas.
Following factors need to be considered for screening of project
ideas
1. Cost of the project
2. Profitability of the project.
3. Marketing facilities.
4. Availability of inputs.
5. Consistency with government regulations and priorities.
Selection of project
It is the process of selecting best project after screening.
Following are the criteria for selecting a project:
1. Investment
2. Location.
3. Technical knowledge
4. Profitability
5. Risk
6. Availability of market.
7. Competition
8. Government policy
Market and Demand analysis
It is a study of market for the product and estimate the total demand
Steps involved in market and demand analysis
1. analysis of market demand and demand forecasting.
2. Understanding the competitive situations
3. Understanding the trade practices.
4. Estimating the future changes.
Feasibility Study
It is an assessment of the practicality of a proposed project. It judges
cost and value of a proposed project.
Types of feasibility study
1. Technical feasibility
2. Economic feasibility
3. Operational feasibility
4. Scheduling feasibility.
5. Social feasibility.
1. Technical feasibility (Technical analysis)
It is the process of proving that concept is technically possible.
Scope of Technical Feasibility
1. Material inputs
2. Manufacturing technology
3. Plant capacity
4. Plant location
5. Size of the plant
6. Product mix
7. Factory design
8. Plant layout.
2. Financial feasibility (Financial analysis)
It is a process of obtaining relevant information about project in
order to ascertain its financial viability.
Techniques of financial analysis
1. Fund flow analysis
2. Cash flow analysis
3. Ratio analysis
4. Break even analysis
5. Sensitivity analysis
6. Risk analysis
Scope of financial feasibility
1. Cost analysis
2. Pricing
3. Financing
4. Income and expenditure
5. Capital budgeting
Sensitivity analysis
It is a type of analysis helps in studying the impact of crucial variables
like raw materials, sales volume, sales price etc.
Social cost benefit analysis
It is a systematic and cohesive economic tool to survive all the
impact caused by an urban development project.
Difference between financial analysis and social cost benefit
analysis
Financial Analysis Social cost benefit analysis
Social impacts are ignored Social impacts are included.
It determines project on It determines project on social
financial view point. view point.
It ignores externalities. It considers externalities.
Objectives are maximisation of Objectives are employment
owner’s wealth, sales etc. opportunities and development
of backward areas.
Market price is used for Shadows prices are used.
computisation of cost and
benefits.
Environmental impact assessment
It is the assessment of the environmental consequences of a plan,
policy, program or actual projects prior to the decision to move
forward to the proposed action.
Procedure for environmental clearance
1. Identification of location.
2. Screening.
3. Assessment
4. Public hearing
5. Application.
6. Environmental appraisal.
7. Issue of clearance.
Foreign Collaboration
It is an agreement or contract between two or more companies from
different countries for mutual benefits. It includes technical
collaboration, marketing collaboration, financial collaboration,
consultancy collaboration.
Export Promotion Capital Goods Scheme (EPCG scheme)
This is a scheme which enables an importer to import capital goods
at zero rates of customs duty.
Export promotion capital goods
These are capital goods used in production of goods which are
exported to other countries.
Foreign Investment Promotion Board (FIPB)
It was a national agency of government of India with the remit to
consider and recommend foreign direct investment.
Procedure / Steps for setting up of MSME
1. Selection of the product.
2. Selection of form of ownership.
3. Selection of location and site.
4. Designing capital structure.
5. Acquiring manufacturing know how or technology.
6. No objection certification from local body.
7. Statutory license.
8. Registration with SIDCO.
9. Application for lease agreements.
10. Application for grand of connection for water and power.
11. Consent to establish and operate from state pollution control
board.
12. NOC from the department of fire and emergency services.
13. Factory license from inspectorate of factories.
14. Registration with employee provident fund organisation.
15. Availing import export code from DGFT.
16. Preparation of project report.
17. Registration as a MSME.
18. Apply for power connection.
19. Arrangement of finance.
20. Registration under GST Act.
Location Decision
It means deciding a suitable location, area or place where the
business starts functioning.
Steps in location decision
1. Selection of the region.
2. Selection of a particular locality.
3. Selection of the exact site.
4. Optimum selection of site.
Factors considered in location decision
1. Proximity to raw materials
2. Nearness to market.
3. Availability of infrastructure facilities.
4. Transport and communication facilities.
5. Labour
6. Government policies.
7. Climate conditions.
8. Environmental considerations.
Ideal location
It is one that permits the lowest unit cost in the production and
distribution of a product and service.
 MODULE V
PROJECT REPORT
Project Report
A project report is a document which provides details on the overall
picture of the proposed project.
Characteristics of project report
1. Scope
The project report gives a clear picture of the goal of the proposed
project.
2. Resource
It shows the means or resources required to meet the desired
project.
3. Time
Project report denotes the standard time required for the
completion of proposed project.
4. Quality
The project reports explain the desired standards to be achieved by
the completion of all tasks.
5. Risk
The project report considers all the risk factors associated with the
proposed project.
Need / Objective / purpose of project report
1. To help in cost management.
2. To enable an entrepreneur to take decision.
3. To show general idea of various resource requirements.
4. To assist in tracking the current activities of the project.
5. To helps in testing profitability of the proposed project.
Importance of project report (Advantages)
1. It give general idea about a project.
2. It show the feasibility of the project.
3. It show the profitability of the project.
4. It helps the entrepreneur to establish techno economic viability of
the project.
5. It helps in getting loan from bank and financial institution.
6. It helps in securing supply of raw materials.
Contents of project report (Requirements)
1. General information.
2. Executive summary.
3. Organisation summary.
4. Project description.
5. Marketing planning.
6. Capital structure and operating cost.
7. Management plan.
8. Financial aspects.
9. Technical aspects.
10. Project implementation
11. Social responsibility.
General principles of a good project report
1. Principle of proper flow of information.
2. Principle of a proper timing.
3. Principle of accuracy.
4. Principle of relevance.
5. Principle of clarity.
6. Principle of consistency.
7. Principle of brevity.
8. Principle of economy.
Requirement of a good or an ideal project report
1. It should be prepared with the help of an expert team.
2. It should be precious, accurate and specific.
3. It is the means, not an end.
4. The content of a project report should be in a logical sequence.
5. It should be based on proper survey.
6. It should be based on systematic preliminary study.

This is just a short note from all the modules. For exams, you need to
refer more materials in detail.

ALL THE BEST

For more details, please visit below link: Prepared By:

https://youtu.be/7PNB7l1M084 JUBAIR MAJEED
RAHUL MURALI