Entrepreneurship Management

Q . Good project report or Business plan?

A. It is essential for an entrepreneur & developing agencies since its provides necessary information about the unit to be set up. It eliminates difficulties encountered during project setup especially obtaining loans. It is basically an integration of functional plans, such as marketing, finance, operations & HR to establish company’s goals and objectives. It basically addresses the questions: • Where am I now? • Where am I going? • How will I go there? Format of a Business Plan 1. Introductory Page. a. Name & address of business b. Name & address of the promoter & partnership if any. c. Nature of business d. Treatment of financial need 2. Executive Summary (3 0r 4 pages comprising of complete business plan) 3. Industry analysis a. Future outlook & trends b. Analysis of competition c. Market segmentation d. Industry forecast 4. Description of venture a. Products/service b. Size of business c. Office equipment & personnel d. Background of entrepreneur 5. Production plan a. Manufacturing process b. Physical plant c. Machinery & equip. d. Name of suppliers of RM 6. Mktg. Plan a. Pricing, distribution, promotion, product forecast & controls 7. Organizational plan a. From of ownership, b. identification of partners & principal share holders, c. Authority of principals, d. Mgmt team background, e. Role & responsibility of members 8. Risk Assessment Evaluate weakness of business, new technology, and contingency plan

9. Financial plan. Should include a. Performa income statement & Balance sheet, b. Cash flow projections, c. Break even analysis, d. Sources & applications of funds 10. Appendix (containing backup material) a. Letters, b. Mkt. research data, c. Leases & contracts, d. Price list for suppliers ***********************************************************************

Q. The executive summary of the business plan:
It is prepared after total plan is written. The executive summary should be two or three pages in length and should stimulate the interest of the potential investor. It should not be taken lightly by the entreprenuer since the investors uses the summary to determine the worth of the business plan. Determining what is important would be difficult since every business plan is different. A no. of significant issues should be addressed. First, briefly describe the business concept. Second, data that support the opportunity for this venture should be stated. E.g. trends and potential growth in the industry, internet business, growth in no. of I-net users, growth in avg time spent on the net. After establishing the reallity of the opportunity then state how it will be perused. What is the mktg strategy and how does it differs from others. Next highlight key financial results that can be achieved importance experience of entreprenuers, important contracts or other legal documents that are in place which can assist in selling the business venture to a potential customer. ***********************************************************************

Q Why business plan fails?
Generally poorly prepared business plan can be blamed due to one or more of the following factors, • • • • • • Goals set are unreasonable Goals are not measurable The entrprenure has not made the total commitment to the business or to the family. Entrepreneur has no experience in planned business Entrepreneur has no sense of potential threats or weaknesses to the business. No customer need for the proposed for the product or services.

Setting goals requires information about the type of business and the competitive environment. Goals should be specific and not so mundane as to lack any business of control. Entrepreneur may target a specific mkt share, units unsold or revenue. These goals are measurable and can be monitored overtime. Lenders or investors will not be inclined toward a venture that does not have full time commitment. Lenders or investors may expect entrepreneur to make financial commitments even if it means second mortgage or a depletion of savings. Lack of experience will result in failure unless the entrepreneur can attend the necessary knowledge or team up with someone. The entrepreneurs should document customer needs before preparing the plan. This can be identified from direct

experience, letters from customers or mkt research. Clear understanding of needs and how the entrepreneur will effectively meet them is vital to the success of the new venture. ***********************************************************************

Q. Concessions & incentives for SSI ?
A. SSI/ancillary units are the industrial units having an investment of not more than 3 crores rupees in fixed assets like plant & machinery’s. Whereas tiny units have 25 lac for the same as on 1998. However recently the govt. has reduced the invt. To 1 crore rupees for SSI & there has been no change for tiny units. Following are the concessions /incentives offered by govt. to SSI 1. Invt. Limits in P&M : Govt. has reduced the ceiling of investment from 3 crores to 1 crore in 1999 wit a view to secure ownership & control of material resource & easing out the problem of unemployment. This ceiling for tiny units has been retained to 25 lac. 2. Reservation of Items in small scale sector manufactured exclusively: At present 812 items are listed in this category. These items can be manufactured by large scale units also but with 50% export obligations 3. Reservation of Items for exclusive SSI purchases: Director general of supplies & disposal (DGS&D) has listed down 358 items, which are offered at purchase price preference 15% as compared to large-scale units & other suppliers. National small industries Corp. Ltd. Does the mktg. Of SSI products to govt. under preferential purchase policy. This avoids multiplicity of registration with various agencies. 4. Text Incentives/ concession & deductions from profits & gains: • If a unit is set up in backward area under factory act (sec 80HH) 20 % for 10 yr. • Its is 20% for 10 yr. for SSI in rural area (sec 80HHA) • 20% for industries setup under factories act for 7 to 9 yr., 355 for corp. society’s for 11 yr., 35% for co.’s for 11 yr.(sec80I) • 25% for industries under factory act/ 100% for yr. & 25% for next 5 yr. If the unit is in backward area. 5. Exemptions & preferences from central excise duty: If an SCI’s has a turnover of more than 3 crore then 2options are available a. For 1st 1 crore duty in nill, cenvat credit no permissible b. For 1st one crore 60% normal duty an cenvat credit permissible Besides this they get relaxation in mode of duty payment & filing of returns 6. Foreign direct Investment.: In order to encourage modernization & technological upgradation equity participation upto 25% of total share holding by offer industrial undertaking or foreign collaborators

sponsorships for convenient assess to capital market.Incentive scheme for acquiring ISO9000 Since ISO is required for quality certifications for exports. 5 lac in plant & machinery & 20% for those having investment. out of this 40% goes to tiny units having investment.5 crore. Initiative for credit: Reserve bank of India has directed 370 specialised SSI banks to provide working capital to SSI upto 20% for annual turnover limit upto 5 crore. between 5 to 25 lacs. ICICI has setup these exchange to raise resource from capital mkt. Exchange also provides trading in debentures unit of Mutual Funds. OTC exchange of India. This program is started for 12 clusters all over India for small scale Units in the 9th 5 year plan with the cost of 6.Integrated technology upgradation & management program Is implemented for energy conservation.000 rupees. The main objective is to have a speedy assess & transfer of technology.in SSI is permissible. 13. Banks are advised to increase no.00. Exchange has state of art technology to promote transparency for transaction all over the country. LIC. equity assistance. 10. SSI are given the incentives for acquiring the certification to the extent of 70% of cost of subject to the maximum of 75./ It is helpful for entrepreneur to setup new ventures or expand activities. a 12. Beyond this approval in needed with a commitment of 75 % to export. out of the 40% banks advances for priority sector. Prime lending rates are applicable for loan above 2 lac. venture capital. Policy of priority credit: Nationalized commercial banks give priority to SSI’s. Small Enterprises information & resource center . foreign currencies. 8. bonds. Loan from SIDBI for tiny sector for credit availability has been increased form 50. of SSI branches. Institutions like UTI . IDBI. GIC. 7. It provides trading mechanism like bought out deals. pollution control.000 to 2.000 11. TBSE offers under one roof assistance & prospecative small enterprises in sphere of technology transfer & fund syndication. market making. process mordification.Technological bureau for small enterprises (TBSE) It is a joint venture of small industries development bank of India (SIDBI) & the asian pacific centre for transfer of technology. 9. This beareau identifies willing collabroaters & extend support for financial assistance in terms of term loans. The branch mangers are empowered to take the credit decisions at branch level itself to ensure smooth flow of operations. The minimum requirement for a company to list on the exchange is 30 lac of post issue paid up capital. The interest rates are also very low for these loans. 15 to 17% goes to SSI’s.

14. Relaxation under environmental laws As per the water & air pollution control the board of environmental pollution gives grants of approval to SSI’s except 17 categories which are heavily polluting. This granted consent is valid for 15 years provided there is no change in treatment or disposal system. It also provides technical knowhow. is to launch a campaign for waste minimisation. exporters. regarding exim policies. Collectorate SSI.. Common effluent treatment plant (CETP) For cluster of SSI’s financial assistance is provided for above project.s . These councils also decimate info. ********************************************************************* . Additional alternative Mechanism of arbitration & conciliation to resolve dispute between SSI suppliers & large scale buyers 15. This act was brought forward to safe guard the interest of the SSI units. Change in the penal rate of interest form 5% above the floor rate to 150% of the prime lending rate (PLR) of SBI b. Training & awareness for cleaner technology are conducted by Dist. In order to tackle the problem of settlement of dues from co. Credit guarantees for SSI’s This is for guaranteeing the loans & advances upto 10 lac rupees without co-lateral or third party guaranty for SSI’s engaged in IT or software industries for 5 years. under Companies/ Society Registration Act established to promote SSI’s products in export market by direct mktg. market avenues seekers. For this they charge nominal fees. • 30% as loan at reduced rate from FI’s • 20% as contribution from individual units SSI’s are given some concession for expenditure on effluent disposal system. 17. These councils also take bulk orders from buyers and pass on to SSI units for deemed export. The membership charges for these councils are minimum for SSI’s 18. SIDBI strategic initiatives 20. The agreed date of settlement of dues no to exceed 120 days form the date of acceptance. Interest on delayed payment act. The main obj. c. As on date this network has 21 electronic nodes.This provides data & information for samll enterpreneurs. customs & excise duty rules. • 25% subsidiary from central & state govt. However pollution control board can have random checks or call for any further info. 16. Vendor development or opening of sales outlet abroad. Industry related research institutes 19. Export Promotion Council These are non-profit orgns. a.

Q. analytical ability for strategic decision. 4) Closing the demand gap through appropriate opportunity: due to knack of seeking opportunity in the environment through study of demand gap and utilizing their venture to meet such demand gap 5) Export potential: since innovativation is an ongoing process for entrepreneurial venture this creates an export opportunity and hence increase exports potential. willingness for moderate risk. freedom of idea adoption It provides prolonged career for next generation i.e. Who is an entrepreneur. Entrepreneur is a person who undertakes an enterprise with a chance of profit & loss. . Entrepreneurship is the process through which entrepreneur seeks innovative & employment i. He has the ability to work hard & capitalise on opportunity and has an urge for achievements & who has a desire for responsibility. determination to win. He is the person who can take moderate risk. characteristics and guiding factors for successful entrepreneur: Personality traits: urge for achievement. ability to identify and explore opportunity. doing new things or things in the new way.e. state the advantages of entrepreneurship to an individual & the nation? A. He is the person with skill of organising & has some financial strenght. raw material and labour thus results in optimisation of resource utilization. Define entrepreneurship. Advantage to an individual: 1) 2) 3) 4) 5) 6) 7) It creates a self employment and a sense of self reliance i.e. no limited tenure of career It enhances sense of innovativeness and creativeness It provides modes of unlimited and high-retained income It creates a sense of independence/satisfaction It enhances per capita income via increase output It initiates a structural change in society and business Advantage to a nation: 1) Provides large employment: since entrepreneurial ventures are basically started as SSI utilizing labour intensive techniques thus generating lot of employment for regional man power 2) Wider distribution of wealth: increase in wealth output can be divided into various participants 3) Optimum utilization and mobilisation of regional resources: since entrepreneur relies more on local resources for production needs i.e. 6) Regional development: this is one of the key advantage which can be utilized disparities in regional development and also accelarate the pace of economic development 7) Enhance skills and savings 8) Stimulates innovation and efficiency Q.

respect for ethics and culture. motivation to employee. growing consumer class. Capital required for ideal comes from internal source Establish corporate image. easy access to money. technology. socio cultural. role models. self confidence. goal setter. hr abilities. ********************************************************************** Q. promotional policies and incentive schemes. facilitator and incentive oriented. supportive family structure. Individual: entreprenuership Intrapreneur: is a person who focused on innovative and creativity who brainstorms dreams or ideas into profitable venture by operating within the organisational environment. motivator. In the economic development roles are to be played by everyone. expansion of educational horizon. It gives managers a freedom to try new idea by employing firm’s resources in a unique way. Advantage of Intrapreneurship: It offers idea to build or improve corporate business. high energy level. Since entrepreneurship is low cost strategy. distribution and service It is a multiple disciplinary team activity with job security and prosperity .perseverance. entrepreneur for economic development: Entrepreneur sets up enterprise wherein entrepreneur devotes resources. economic ********************************************************************** Q. It is basically to retain knowledge. political. good technological access and infrastructure development.e. neutral and regulator. creativity innovative attitude. It helps corporate in economies of scale in mktg.e.e. communication ability. Corporate: Intrapreneurship i. entrepreneur within an orgn. decision making tools. income and employment. prepaid for physical and emotional stress Guiding factors: clear objectives. Govt. professional support network. factors affecting growth of entreprenuership: Change in attitude. enhance the chance of success of Intrapreneur idea. The spirit of entrepreneurship is the drive for achieving higher goals.: promotional i. Intrapreneur is corporate entrepreneurship whereby an orgn seeks to expand by exploring new opportunities through new combination of existing resources. venture capital availability. problem solver. It is a tool for stimulating and capitalizing entrapreneur in and orgn. environmental factor i. Thus spirit spreads like chain reaction in a dynamic society. value addition. revenue generation through innovation. time and efforts to produce goods and services with increase in the productivity output. flexibility/capacity to plan and organise. technical knowledge. where entrepreneur plays a crucial role. legal.

Intrapreneur is identified to be trained for resource utilisation. Organisation should use technology to be competitive with larger firms through assess to large data bank. essential of Intrapreneur: 1) Vision: It is the basis of successful venture.******************************************************************** Q. . steps for setting Intrapreneurship in orgn: Secure commitment to Intrapreneurship from top. without top mgmt support. upper and middle mgmt. money is measure of success and not incentive for efforts. Sufficient time to be given to introduce the concept in the whole orgn through seminars. 2) Motivation: Intrapreneur is self motivated. Identified idea should be accessed with financial risk expectation in terms of results has to be specified in regards to time. Since Intrapreneur has ability to visualise from idea to actualisation. ********************************************************************** Q. they want to act to realise dream rather than entangling in planning cobweb. volume and profits. 4) Locus of control: Intrapreneur discourage system. 3) Bias to act: Intrapreneur is achievement oriented i. but response to corporation reward and recognition. There has to be mentor/sponser system for turning cultural orgn into Intrapreneural one. orgn cant have necessary culture change for implementation. They develop multi disciplinary team in the orgn and may beyond orgn boundaries for results. 8) Goal set up: Intrapreneur ourself are determined to do things not even asked for. Wild risk takers are not affordable to corporates.e. They set goals and quality stds. 6) Locus of status: Intrapreneur want to do the work on its own rather than delegating like managers 7) Failure and mistakes: Intrapreneur hide risky projects and ideas to ensure learning without political cost and public failure. opportunity and market and the success plan is made. They look for incremental achievement. since he is workaholic personality 5) Locus of risk: Intrapreneur are moderate risk takers since risk acceptance depends on their skills.

describe the concept of venture capital with specific reference to the to entrapreneur. authoritative. should be more productive with fewer resources. innovative. Venture capital provider service the business from development. the concept “ Lean & Mean” need to exist. approval of project/ideas. should have manager who is willing to train employees by experience sharing. over expenditure nor required to be justified. Salient features: It is long term source of investment generally 5 to 10 years Venture capital firms opt for equity participation through shares or convertible securities Venture capitalist ensure participation in management of business Venture capitalist provide service in terms of mktg.Org. Venture capital plays a vital role in financing SSI where growth potential and the risks are high. Give the methodology to get venture capital from venture capital providing firms. so this reward systems becomes sometime difficult to handle as it may be understood as an disparity trading process. downsizing. i. and not an independent one. control to be given to subordinates and are made well aware of the procedures so that operation can be run smoothly in the event of middle mgmt. expansion should in parlance with mission statement. developing orgn structure It is easier assess to funds than conventional source Venture capitalist is not averse to risk only growth potential should be high . should have strong support structure because Intrapreneurship is a secondry activity not affecting the bottom line. so these venture should be flexible.e. *********************************************************************** Q. Performance to be rewarded to encourage & motivate team members because entrapreneural venture is a part of large org.s activity for marketable product/service. Org. Set up an evaluating system for elimination of unsuccessful members & rewarding the successful ones. Training should be given to employees for both basic entrepreneurship & co.e. financial assistance and management expertise. Org. Org. technological mgmt. Develop customer relations by tapping data base from rivals and helping retailers. sufficient fund assessed i. This investment could be needed at any stage from start up to commercial production.

mkt analysis. financial background of promoters and risk of business are analyzed in this stage. ancillarising and acquisitioning as a start up for an entrepreuer: . buy back arrangement and exit policy. After thorough study of business plan. Entrepreuership should take care of: 1) Select venture capitalist carefully 2) Don’t hesitate to get all facts about venture capitalist and his previous activities and background. accountant or advisers at initial stage 5) Be careful about projected and promise facts and data’s 6) Disclose your strength and weakness for better relationship 7) Be flexible and patient. resume of promoters and key managers. objective. appropriateness of his knowledge in the project. Q. 2) Due diligence: this is an agreement stage between entrepreuer and venture capitalist prior to commitment in terms of money and efforts. 6) Exit: since venture capitalist are not permanent equity holders so they may exit at appropriate time by adopting equity bye back. 3) Always involve an intermediary for better deal 4) Avoid lawyer. financial statement. 5) Flow of funds: begins as per MOU.Flow of funds is in phases of production or in initial stages as debts Venture capitalist are not permanent equity holders Venture capitalist will exit at appropriate time ensuring that entrepreuer’s interest is not getting disturbed. mergers and acquisitions and smooth transition as exit strategy. This plan should have mission. equity. higher degree flexibility is desired from both parties and periodic review is done at each stage. He also ascertains the capability and credential of entrepreuer. Stages of process: 1) Delivery of business plan from an entrepreuer to venture capital provider. always remember performance builds trust. While evaluating business plan venture capitalist ascertains whether the proposal fits his long term policies and short term needs. negotiation takes place in terms of funds required vis a vis funds made available by the venture capitalist along with interest rate on loans. 4) Contract and MOU: considering the above terms agreement is signed with the consideration of regulatory law. right to control the mgmt of business. ROI. 3) Negotiation: after viability study of project. compare franchising. IPO (initial public offering). securities.

*********************************************************************** Franchising: Also represents an opportunity for an entrepreuer to expand the business with a franchisee. 3) Business format franchising: name. subway. sale and method of doing business are transferred with knowledge of conducting the outlet with affective follow up mechanism by the franchiser. 2) Process franchising: outlets are granted to use the brand name and process of the franchiser. midal. There are three types of franchising available: 1) Product franchising: selling of the finished goods with just mere displayed of goods. product. image and method of doing business such as mcdonalds. Definition: “an arrangement where by the manufacturer or sole distributor of a trade mark product or service gives exclusive right of local distribution to independent retailers in return for their payments of royalties and conformance to standardize operating procedures. the entrepreuer will be trained and supported in mktg by the franchiser and will be using a name that has some established image It is an alternative for an entrepreuer to expand his or her business by having others pay for the use of name. process. Advantages: a) of franchising to the franchisee: . donuts. service and so on.” The person offering the franchise know as franchiser. The franchisee is a person who purchase the franchise and is given the opportunity to enter a new business with better chance to succeed than if he or she where to start a new business. The process and recipe are generally patented by the parent company. which facilitates easy accessibility a product to customer and achieve sale transaction without any value addition. KFC. The most common type of franchising is the type that offers a name. dulkin. holiday in.

. Head quarters and regional offices can be slightly **** to primarily support the needs of the franchises. control of stock. accessories. 4) Knowledge of the mkt: any establish franchise business offers the entreprenuer years of experience in the business and knowledge of the mkt.1) Product acceptance: the franchisee usually enters into a business that has an accepted name. Cost advt: the franchiser can purchase supplies in large quantities that achieving economic of scale that would not have been possible otherwise many franchise business product parts. scheduling and training to ensure consistent service to the customer. inventory. cash flow and personal issues such as criteria for hiring/firing. This knowledge is usually reflected in a planned offer to the franchise that details the profile of the target customer and the strategies that should be implemented once the operation has begun. The franchise offers an opportunity to start a new venture with upfront support that could save the entreprenuer significant time and possibly less capital. The franchisee does not have to spend resources trying to establish the credibility of the business. The capital necessary for this expansion is much less than it should be without franchising. 5) Operating and structural control: two problems that many entreprenures have in starting a new venture are maintaining quality controls of the product and services and establishing effective managerial controls. b) of franchising to franchiser: Expansion risk: the most obvious advt of franchising for the entreprenuer is that u can expand a venture quickly with little capital. the layout of the facility. 3) Capital requirement: a new venture can be costly both in terms of time and money. Most franchiser will be constantly evaluating mkt conditions and determining the most effective strategies to be communicated to the franchisees. construction cost and purchase of equip. Each new franchise is often required to take a training program on all aspects of operating the franchise. packaging and raw material in large quantities and then in turn sell these to the franchisees. mktg and production. This training could include classes in accounting. . product or service. Administrative controls usually involve financial decisions revolving to cost. Operating a franchised business requires fewer employees than a non-franchised one. These controls will usually the outline in a manual supplied to the franchisee upon competition of the franchisee deal. In some cases the franchiser will also finance the initial investment to start the franchise operation. 2) Mgmt expertise: mgmt assistance provided by the franchiser. inventory and the potential buying power of the entire franchise operation can save the entreprenuers significant funds. A franchiser can expand a business nationally and even internationally by authorising and selling franchise in selected locations. personnel mgmt. The initial capital required to purchase the franchise generally reflects a fees for the franchise.

Actual cost of acquiring can be lower than methods of expansion. In some case also the franchiser finds it difficult to find quality franchisee.Disadvantages of franchising 1) the disadvantages to franchise usually centre on the inability of the franchiser to provide service. Advantages of acquisition : 1. When promises made in the franchise agreement are not kept. 6. 5. Business experience of franchise officers. SABOO’s (KHUJLI’S) BOOK *********************************************************************** ACQUISITION Entrepreneur can start & expand the venture by acquiring an existing business. Entrepreneur gets a well established customer base from the acquired firm 3. If the firm is successful the entrepreneur needs to continue the existing strategy. directors and mgmt personnel are being involved. retailers. Law suit in which the franchiser and its officers. 4. 7. suppliers. advertising & location. Information disclosed is as follows : 1. manufacturers by acquiring the firm. every franchiser has to submit a statement that provides information about 20 aspects of franchise offering. service & other aspects. accounting and so on are still franchisee’s responsibility. the franchisee may be left without any support in important areas. He must evaluate franchise alternative from information provided to decide which one is important. An acquisition is the purchase of a company or a part of it so that the acquired company is completely absorbed and no longer exists as business entity. directors & mgmt personnel responsible for franchise training. acquired firm has an established image and track record. identification of franchiser & its affiliates & their business experience 2. Poor mgmt can cause individual franchise failure. 2) The franchisee may also face a problem when a franchiser fails or is brought out by another company. scheduling. Any restriction on the quality of goods FOR MORE POINTS REFER TO PROF. buying. directors & mgmt personnel are being involved. Any previous bankruptcy in which the franchiser and its officers. wholesalers. 2. As per the federal trade commission’s franchise rule. Legal aspect of Franchise Franchising involve many risks to entrepreneur since business such as hiring. . Entrepreneur acquires well established channels and sales structure. 4. 3. The initial franchisee fee & other initial payments those are required to obtain the franchise. Continual payments the franchise are required to make after the franchise offer.

3. channel members or suppliers. rendering of service or proposing to supply or render not less than 50 % of his production or service to one or more other industrial undertaking for production. ************************************************************************ ANCILLARISATION An ancillary unit is defined as an Industrial undertakings having investment in fixed assets. Self evaluation is important before agreement. tooling or intermediates & 2. employees or customers more time can be spent assessing opportunities to expand the business. sales growth with no increase in bottom line 8. the venture may never be successful for reasons that are not possible to correct. Entrepreneur may assume he can succeed where others have failed. No change in products & customers. marginally successful or even unprofitable track record. Most ventures have an erratic. Since entrepreneur does not have to find suppliers. The entrepreneur can use to determine the fair price of an acquisition. cashflow and earnings. It is possible that ROI is not acceptable. sub-assemblies. 4. 6. It is important to review the records to assess future potentials. manufacturer of parts & components. 100 crore & engaged in .5. Even though the entrepreneur brings new ideas & mgmt qualities. variations & poorly prepared financial statements 7. in plant & machinery whether held on ownership or on hire purchase not exceeding Rs. 2. few mgmt tools being used 4. Determining the price of an Acquisition : There are three valuation process – asset. 1. . one person mgmt 2. When business changes hands key employees also leave. 3. Loss can be devastating since value of business is often a reflection of efforts of employees. Disadvantages of acquisition 1. poor corporate communication. The employees of the existing business can be an important asset & can help the business to continue its successful mode. Key factors in evaluating firms are . out dated & poorly managed inventory 9. 1. insufficient financial controls 5. channel members. highly leveraged – thinly capitalised 6. It is possible that purchase price is inflated due to established customer base. aging accounting receivable 10.

the easy availability of infrastructutal facilities play a deciding role in the location selection of an industry. Sourcing is economical from ancillary units that are normally located near the co. 5. Infrastructural facility. offers several incentives. Are : 1. Markets: If the products are fragile and highly susceptible to spoilage & if the transportation cost constitutes a substantial portion of the total cost involved the proximity to mkt conditions assumes added impt in selecting the location of the enterprise. is big then the ancillary co. 4. power. growth of employment 2. Multiplication of suppliers makes the ancillary units operate below BEP(Break evn point) as a result these units incur losses because of capacity unutilisation. 5. 3.s to bring down the inventory level and saves a lot of money. growth of entrepreneurship Advantages of Ancillarisation 1. growth of GDP 3. Govt.s in the process & product development Dis advantages of Ancillarisation 1.Major difference between SSI & ancillary is that unit setup which can be recognised as a full fledge large company can be a part of ancillary but under SSI such unit can get transformed into medium or large scale sectors. The facilities includes transport & communication.s revise the specification ancillary units are some times not given the expected support for adopting the higher technology. Availability of man power . not given suficient time to bring changes in the technology to match that of parent co. The most impt. Delay in payments puts ancillary co. concession to attract entrepreneurs to setup industries in backward areas. water . banking etc.Minimise investments of setting up of large units as the required as the required production can be sourced a lower at rate with same quality through subcontacting from an ancillary unit 3. finds it diffucilt to take any legal action 2. 3. Ancillary units work with the parent co. When parent co. Ancillary units JITconcept helps the large co. Q. Policy.s in big trouble. Selection criteria for factory site location? There are certain general factors that influence the selection of the location of an enterprise. 4.in order to promote the balance regional development the govt. Availability of raw materials.the biggest advantage of availability of RM at the location of industry is that it involves less cost in terms of transportation cost. Major benefits of ancillarisation drive to a country is that : 1. If the parent co. 2.

or firm background . Local laws of regulations. they play a crucial role in selecting the location of the stores. Comparison: Manager v /s Entrepreneur Entrepreneur Independence. professional. 7. monthly & quarterly 3) Activity Delegates & supervises more than direct involvement 4) Risk Careful 5) Status Concerned about status symbol 6) Failures & mistakes Tries to avoid mistakes & surprises Moderate risk taker No concern about status symbol Deals with mistakes and failures 7) Decisions usually agrees with those in upper Follows dreams with decisions mgmt. orgns. Positions 8) Service serves others Serves self & customers 9) Family History Family members worked for large Entrepreneurial small business. Ecological & environment factors 8.certain local laws prohibit the setting up of polluting industries in particular areas similarily taxation on a higher rate may discourage some industries form setting up in an area. opportunity to create.in case of some enterprises like retail stores where the revenue of a particular site depends on the degree of competition from the other competitiors in the locality. ************************************************************************ Q. such as office staff & powers 2) time orientation short term meeting quotas & budgets.6. Competition. & money Survival and achieving 5 to 10 yr growth of business Direct involvement Managers 1) primary motives promotion & other traditional corporate rewards. weekly.

interest in recognition in the In college. enthusiastic & energetic. medium level of self confidence. sideline to present job. 6) Background Age when starting venture: 35 to 45 father Age when starting venture :25 to 35 was self employed .to do it alone personal independence – self image as it relates to status through their role in comparison is unimportant job satisfaction arising from the desire to be in control 2) Departure point Dissatisfaction with present job sideline Job frustration. creative & realistic. middle mgmt or administrative level experience in the field. personal loans financing.10) Relationship with others Hierarchy as basic relationship Transaction & deal making as a basic relationship Comparison : Male Entrepreneur Female Entrepreneur 1) Motivation achievement . goal oriented. opportunity for Change in personal circumstances accusation 3) Sources of funds Personal asset & savings. Enthusiastic & energetic must be own boss Experience in the area of business. self related occupational background Flexible & tolerant. area. ability to deal with social & economic environment. investors. discharge or lay off . recognised specialist or one who has gained a high level of achievement in the field. high level of self confidence. goal oriented. loan from friends & family 4) Occupational Background Experience in the line of work. innovative & idealistic. bank Personal assets & savings. competent in a variety of business function 5) personality Characteristics opinionated & persuasive.strive to make things Achievement – accomplishment of a goal happen Independence .

The need for a national org. financial institutes such as IDBI entrepreneurial motivation training centre in northern-eastern region. to train trainers & motivators in entrepreneurship development. to prepare a model syllabis training for varoius target group & target areas etc. Other organisations that have been actively conducting entrepreneurship development progammes are State Bank of India. to serve as an apex body to coordinate training program for various centre’s and organisation in the country. Explain their activites and method adopted There are several organisation engaged in conducting entrepreneurship development program in India. The lead in the matter was given by the small Industrial Development Organisation through its service centres. family. spouse 8) Types of business started Manufacturing Or construction Service related – educational service. Ahmedabad state financial corporations. product & production methods 2. Hubli small industries extension training institute. trade associations business associates. professional groups.father was self employed College educated – degree in liberal arts College educated – degree in business or First born technical areas usually Engineering First born child 7) support groups Close friends. Ranchi: industrial consultancy organizations in various states. consulting or public relations Q) What are prominent institutes imparting training for entrepreneurship development. To build the necessary skill for new entrepreneurs & workers . with a view to evolve & integrated national approach to this subject The training program is designed to sub serve the following objectives: 1. To impart basic knowledge about the industry. was felt. spouse. National science& technology enterpreneurship development Board etc. women friends. Xavier Institute of social services. centre for enterperneurship development. professional acquaintances. Hyderabad. centre of entrepreneurship development.

careful evaluation & sound judgement. This is more concerned with the practical then theoretical aspects. if the is any diversification. The individual instructions : Under this method. 6. this method can be followed. 5. 4. 4. To assist the entrepreneur/ worker to function more effectively in his present position by exposing him to a least concept. This method is mostly followed where a standardisation production is followed. To impart knowledge of the mktg. Group instructions: This mode of training is suitable for a group of individuals with a similar type of work & where general instruction are applicable to all are to be given. Lecture method: Here the instructor communicates in theory the practice to be followed by the learners. 3. Conference: conferences are frequently organised wherein experts in the field share their ideas & bring to the notice of learners new ideas & techniques to increase the production 7. Demonstration method : Where the performance of work to be shown practically by the instructor for better understanding.3. Under this method. This mode of training is undertaken where a complicated skill is to be thought to an individual 2. To expose the entrepreneur to latest the developments which directly or indirectly effect him. Written instruction method: The medium of training is followed where a feature reference is to be made by the learners. a single individual is selected for training. whenever there are any doubts they may be clarified on the spot. 7. technique & info. 5. they involve exchanging ideas & views later on coming to firm conclusion based on the various proposals & alternatives. To impart customer education 8. . 6. Product/Project Identification Product selection: one has to select the right product. Of good Methods of Training: 1. To build up second line of workers & prepare them to shoulder additional responsibilities and/or switch on to the production of new products. Meeting: Meetings are a mode of training involving a group of people who discuss the various problems confronting them. To broaden the vision of entrepreneurs by providing them suitable opportunity for an inter change of experiences within and outside an industry. This activity is called the product selection analysis technique. it involves research.

Talking to large scale pvt/public co. What are the skills? 6. Can I dig more info easily? As a prospective entrepreneur one should know the bent of mind one has by asking the following questions. Talking to various bodies like SISI. product evaluation. Is the strong area or may be one has a head for figures an details. This evaluation is carried on the following factors: 1. Growth 2. Search & screen 3. future demand likely to be & so on? 5. One could be interested in mechanical & technical matter with flair for conceptualising & design. which have to be evaluated objectively & in depth. Can the basic design be changed? 4. Can I handle the technical subjects? 7. Idea generation 2. If not can I hire people easily? 8. Can I communicate efficiently & freely with? If yes. Stability This is the . Production Evaluation Techniques These are products. Foreign publications 3. & The national Institute for Enterpreneurship & small business development 5. can also generate ideas Product Search & screening After we come up with product ideas.. Observations 2. Then pose the explortoey questions: 1. Can I deal efficiently with people in position of power? 3. we look at products presently available & products related to those products ideas. Then finance may be the area of strength. Ltd. Then production or product design can be the areas of strength.This technique consists of following steps: 1. They are as follows: 1. Am I comfortable in the room full of strangers? 2. Do the product idea generated match my basic interest or do I have to develoe nnew area of interest? 9. 1. Evaluation Product Idea: can be generated in a no. What is the present demand. Are customers satisfied with what they are getting? 2. mktg. of ways.SIDC. Can we identify a better method of production? 3. The national small Industries Corp. Brainstorming sessions 4. How much knowledge do I have about the markets? 10.

3. export possibilities those products that enjoy international demand & can be exported easily demand a good rating. Difficult of copying.3. Growth Factors 1. Marketability 1. ease of distribution . Marketability 4. A product. Products that are highly technical and difficult to copy would be rated very good. 2. Stability in recession Luxury items are rated poor because they are susceptible to drop in demand levels during economic recession. Uniqueness of product A product that satisfies mkt. 4. would be a very good rating. unique or not a good rating can be given 3. of consumers and is rated very well. Company position 5. Rate of technological change Areas where rapid changes in technology are likely to occur are risky and deserve poor rating. A product used by a variety of customers belonging to various mkt. need exclusively or can replace a more costly product by material substitution or better design possess a high degree of uniqueness and may be rated very good. Demand supply relationship If demand is greater than supply. Performance of mkt. Segment and covers greater no. On the other and consumer goods having regular demand may be rated very good. A product for which there is likely to be long lasting demand would enjoy a higher degree of market permanence than an item likely to become obsolete. 2. Production Stability 1. needs. 5. Breadth of mkt. Such products become obselete faster 4. Possibility of captive mkt. which provides a unique and exclusive solution to specific mkt.

size. freedom from numerous variations products that have to be made available in a wide range of grade. after sales service products that have to be provided with after sales service. availability of raw material if crucial raw material and other materials are available during varying conditions than a good rating can be assigned 3. freedom from seasonal fluctuations products for which demand falls in off season are rated poorly. 4. general labour atmosphere the project should be located in a area enjoying a good labour climate. average order size / per customer greater the average order size per customer better would be the rating. 3. steam.training of personnel .A good rating would be given to a product. 3. Alternative products will have to be thought of to sustain profit during such lean periods. Production Factors 1. Degree of value addition Greater the value addition better the rating. Company position factors 1. rating is good 2. time required to get established projects having higher gestation period are more risky for entrepreneurs as he exposes himself to a greater risk of changes in technology. electricity and good sewage system & if these are not available regularly then that project would be rated poorly. It would be relatively easier & more beneficial to cater to customer to buy large volumes. 2. 3. manuf. Economy and inventory control problem & would be rated poorly. 5. utilities / facilities required Some projects are highly dependent on clean water. shape etc. procurement of equipment will it be possible to get machinery & equipment easily & quickly ? are the supplies reliable & convientantly located? If your answer is yes. specially at customers location are rated poorly. hence it is better to carry out the entire manufacturing process yourself rather than sub-contracting. resulting avg. which can be transported from point of manufacture to a point of sale easily. 2. competition & economic conditions. quickly & with minimum breakage or transmission loss.

A comparision of product profile would help us to decide which product to pick up. Of small scale industries. can they be quickly into the company ? Is the training likely to be time consuming. conditional loans. Under TDMF scheme direct assistance is provided at the prime lending rate of SIDBI with no up front fee. The corpus of the fund has been expanded to rupees 350 million. & society are becoming more conscious of pollution and its dangers. ************************************************************************* Q Role of SIDBI in devp. freedom from difficult maintainance problem Does a project involve a manufacturing process. Development assistance fund(MDAF) in 1995-96 by appropriating a sum of rupees 100 million out of net profit. Out of this a sum of rupees 25 million has been specially year mark for providing mktg assistance to women entrepreneurs. The fund aims at encouraging existing industrial units in small scale sectors to modernise their production facilities & adopt improved & updated technology so as to strengthen their export capabilities. MDAF provides for financing innovative mktg projects through a suitable mix of instruments like loans. B. If your project calls for a larger waste disposal system to neutralise the effluents than it will be a negative factor. Conclusion – the list of factors is by no mean exhaustive and can be modified to suit specific products. 5 freedom from costly waste – disposal problem both govt. A poor rating follows. Under the mktg. Scheme . A. which is hazardous. Of their products. which could affect the well being of the work place but also the community at large. Direct assistance by way of term loan or participation in equity or both is provide to SSI units. SIDBI in april 95. modernisation & technology upgradation For this technology upgradation & modernisation of SSI units. od schemes of assistance. SIDBI had created a mktg. SIDBI has a no. In line with the announcement made by the union finance minister in union budget 95-96. a technology development & modernisation fund with an ear mark corpus of 2 billion. the major among these are technology development & modernisation fund(TDMF) scheme.are technical people easily available ? if yes. Non exporting SSI/Ancillary units 2. The TDMF scheme has been liberalised to include : 1. had setup its on resources. 4. SSI/Ancillary units which are graduating out of SSI sectors on implementation of modernisation programs as eligible units of assistance under this scheme. Marketing finance: To assist SSI in mktg. grant & equity.

. G. R&R. (D&B) to provide credit rating and allied services to SSI units. branding. Bill Discounting & Factoring Services : In order to promote a bill culture and to mitigate the problem of dealyed payment of reciveables by SSIs. warehousing & container services. retail outlets & warehousing facilities etc. • The fund is being managed by SIDBI Venture capital Limited a wholly subsidary of SIDBI. • The fund would also develop international networking and enable assisted units to attract co-investment from international venture capitalists in subsequent round of financing. permanent exhibition cum sales outlets. viz. under which financial assistance is provided for the setting up of IID centre’s . • Main objective of the fund is to meet the total fund requirement of software and IT companies. SIDBI operates two schemes. Development of Industrial Infra-structure: Laying special emphasis on the development of infrastructure of the SSI sector SIDBI launched an improved scheme “of direct assistance for development of industrial infrastructure for the SSI sector”. and having . participation in trade fairs/ exhibitions. Working capital term loan requireents & bills discounting facilities for service providers are also covered under the scheme. catalogue preparation. advertising. F. viz. C. National Venture Fund for Software and IT Industry : • A national level venture fund. The range of assistance covers the setting up of industrial estates /development of industrial areas. primarily targeted to help SSIs realize their payments quickly. wherever the benficieries are predominantly SSI’s. • NVFSIT is closed ended 10year fund with an initial corpus of Re. preparation of strategic mktg plans.1999 by Hon’ble Prime Minister of India.Ltd. SIDBI also operates scheme for integrated infrastructural development (IID). Incubating Centres: SIDBI launched National Program on Innovation and incubation for small Industrial under which incubator facilities are provided to the project. product upgradation & standardisation. which are at seed stage. Direct discounting of bills (Components) and Direct Discounting of Bills (Equipment).assistance ins also available for intangibles like marketing research. electronic & software technology parks. production of audio/visual aids. Credit Rating for Exporting SSI units: SIDBI has an arrangement with Dun & Bradstreet information services (I) pvt. E. D. establishing distribution networks.1 billion promoted by SIDBI. besides this assistance is available for development for infrastructure. mktg outlets etc. DDS (Components) covers arising out of purchase of indigenous components parts / subassemblies / intermediates manufactures by SSI units. National venture fund for software and IT Industry was launched on December 10. strengthening of existing industrial estates & clusters setting up of common facilities centre’s. undertaking sales promotion tours.

place. These activities significantly effect the economy of an area by building the economic base & providing jobs given its impact on bot the overall economy & the employment of an area. Entrepreneurship is presently the most effective method for bridging the gap between science & the mkt. Stimulate a redistribution of wealth. job creation & technical innovation Q.expansion into international market 12. 3. has been initiated. 2. it involves initiating & constituting changes in the structure of business & society. Strategic role in commercialising new invention 5. Following roles are played by entrepreneurs in economic development of the country: 1. 4. Create new market. Powerful tool for job creation 3. Transfer of technology 4. Improve social welfare 11. Explain the role of entrepreneurship in the role of economic development of a country? A.high research and development content and are technology focused to reach the precommercial stage. organise and work in interdisciplinary teams . 5. Understand the role of new and smaller firm in the economy Understand the relative strengths and weaknesses of the different type of enterprise Know the general characteristics of the entreprenurial process Assess the students own entreprenuership process Understand the entrepreneurial process and the product planning and development process 6. Support growth to organised sector 8.. This change is accompanied by growth & increase output which allows more wealth to be divided by various participants. why enterprenureship mgmt is a compulsory subject for mgmt study? The overall for a course in enterprenuership: 1. Raises productivity 2. income & political power 10. Known alternatives. Make market more competitive 9. Reduce concentration of economic power 7. It develop an ability to form. Is low cost strategy of economic development. Crucial role in restructuring & transfer of economy 6. creating new enterprises & bridging new products & service to the market. methods for identifying and evaluating business opportunities and the fact is that support and inhabit creativity 7. the role of entrepreneurship in economic development involves more than just increasing per capita output & income. *********************************************************************** Q.

The decision to start a new company occurs when an individual perceives that forming a new entreprise is both desiable and possible. Work environment. 13. new product ideas or processes and often leave to form their own companies.8. who are reallocated due to a move by other members in a dual – career family. of companies and formed by people who hv retired. is desirable results form an individuals culture. There is probably not greater force than personal dislocation. orgn planning. financial planning. Altough no one knows the exact no. Know generic entry strategies for new venture creation 10. Understand the role of entreprenuership in existing orgn ****************************************************************** Q. Each of these ventures are formed to a very personal human processes that. 1. two work environments hv been particular good for spawning new entreprises.. lack of infrastructure. inflation. teachers & peers. r&d.9 million new companies hv been formed each year in recent years. Desireability of a new venture formation : the perception that starting a co. Understand the aspects of creating and presenting a new venture business plan 11. Indeed millions of ventures are formed despite recession. from something to something a moment from a present life style to forming a new entreprises. Yet. family. disruption: 2. entreprenuership and the actual entreprenurial decision hv resulted in several million new businesses being started throughout the world. although unique. Know the general correlates of success and failure in innovation and new venture creation 9. in the united states estimates indicate that 1. Know-how to identify. What is the Entriprenurial decision process? Many individuals have difficulty bringing their ideas to the mkt and creating a new venture. Like all processes the entreprenurial decision process initiates the movement. A culture that values an individual who successfully creates a new business will spawn more venture . high interest rate. Although individual tend to start business in area that are familier. Know how to manage and grow a new venture 14. individuals development. Perhaps and even stronger incentive to overcome the inertia and leave a present life style to create something new come from a negative force – disruption. venture launch planning. operation planning. evaluate and obtain resource 12. It take a great deal of energy to change and do something new and different. or who hv been fired. when this new ideas are not accepted by their employers. has some characterstic common to all. as indicated. Change from present life style: the decision to leave a career or life style is not an easy one. Know the managerial challenges and demands of a new venture launch 15. ecnomic in certainty and the high probability of failure.1 to 1. A significant no. Know the essentials of: mktg plan. sub culture.

countries that have a repressive tax rate on business or individuals can suppress company formation. role models & finances – contribute to a creation of new venture.formation that one that does note. No culture is totally for or against entrepreneurship. Finally resource must be readily available.govt. even more successful. There are pockets of entrepreneur subculture in the united states. professors or farmers permits their entire family life. Mktg also plays a critical role in forming a new company. is further stimulated by teachers. The independence achieved by co. who can sinificantly influence individuals regarding enterpreneurship as a good possible career path. A very high percentage of the founders of co.’s than an area where these are not available. Please give your suggestion in building .. psychological & financial risk are still present. There are also variations within this subculture caused by family traits. giving encouragement & value to their children’s co. distribution & promoting needed for successful product launching. In the decision to form a co. Peers are very impt. an area with an entrepreneur pool & a meeting place where entrepreneurs & potential entrepreneurs can discuss ideas. formation seem possible. Many sub cultures that shape value systems operates within a cultural framework. problems & solution spawns more new co. Countries with cultures that more closely emulate this attitude do not have as high a business formation rate.s had fathers or mothers who valued independence. It will be interesting to watch which of the once – controlled economies will develop a pro-entrepreneur culture. Risk capital availability plays an initial role in the development & growth of Q What is the impotance of International Entrepreunership in developing a country like india . professional. – as one of the best occupation. formation. Possibility of new venture formation: Several factors. background. Formal education & previous business experience gives a potential entrepreneur the skills needed in forming & managing a new enterprise. This sub culture supports & even promotes enterpreneurship – forming a new co. An area having a strong education base is a strong support factor for entreprenural activity & co. A co. artists. To see someone else succeed makes it easier to picture yourself engaged in similar activities-of course. there must also be a level of mktg know-how to put together the best total package of product. The govt contributes by providing the infrastructure to help & support a new venture. owners. A role model can be one of the most powerful influence in making co. mktg. price. Although education systems are important in providing the needed business knowledge. In addition to the presence of market of sufficient size. Encouragement to form a co. is more easily formed where the driving force is from market demand than a technology push. However the social. Schools with exciting course in enterpreneurship & innovations tend to develop entrepreneurs & can actually drive the entrepreneur environment in an economical area. since companies will not have the money to start & grow & monetary gain cannot be achieved. individual will tend to be more successful in forming business in fields in which they have worked. 3. – formation activity. No wonder more individuals actively plan new enterprises in this supportive environments.

government regulations . access to modern technology & ecenomical costs of labour . It should have encountered any of the following conditions • Saturation in local market • Declining market size in India ie de-growing markets for its products • Has core competency in existing field of business with spare capacity & hence looking to expand in terms of geographical boundaries . Mention in brief factors you consider favourable as well as barriers. The key to his success lies in being able to understand the above & respond accordingly. banking . The extent of the quality of these factors significantly impacts the ability to succesfully engage in international business . The future commercial strength of India will depend on the ability of its entrepreuners & other established companies to take advantage of markets outside the countrys borders. technical skills . Before an Indian entrepreuner thinks of doing business abroad he must understand how international business differs from his local business . . • It will earn valuable foreign exchange will India badly needs to reduce its balance of payment position . currency valuations . lack of literacy & a great number of people living below the poverty line. International Entrepreunership will benefit our country in the following ways • It will develop industrially with some infrastructure a part of India where the project will be set up. They should start off by tapping neighbouring countries before expanding to further areas. As a nation our major strenghts are skilled manpower . • It will aim to generate employment amongst the local people & the functioning of this firm will benefit the community at large. However we also have certain inherent weaknesses like poor infrastructure . • Its products & services will add to the GNP /GDP & will be a source of tax collection for the government besides contributing to increasing the basic standard of living & per capita income.an Indian MNC. Under such conditions a producer of goods & services should look forward to cross boundaries into other nations to sell his goods & services . International entreprenuerial decisions are more complex due to the following factors • Economics – Creating a business strategy for a multi country area means dealing with differences with levels of Economic development. systems as well as market /distribution systems .? Ans) India is a developing nation which needs to utilise its natural resources in an optimal fashion in order to create wealth for the nation . Suggestions for building Indian MNC Before an entrepreunership organisation thinks of doing buisness on foreign soil it should first consolidate & have preferably leadership foot hold in the domestic market.

• • • • The countries balance of payment (BOP). Technology – Like culture varies significantly across countries & industyr standards vary from country to country . Hence the major steps should be 1) Stage 1 – make initial movements into international business following a highly centralised decision making process. the decision making process has to get de-centralised. Trade barriers increase an entrepreuners cost of exporting products & hence such incrased cost will force entrepreuner to establish the manufacturing base in those countries to surmount such barriers . • Local tariffs / import duty in developed nation making indian goods noncompetitive.Once decentalisation is carried out the HQ should retain tight control overr strategic decisions & tactical implementation of corporate strategy.2 – Once the business is succesful & the organisation ahs managed to transfer its competencies across borders into many countries. the degree of adaptation & standardisation would vary in each country. Understanding local culture is essential to development of the entrepreuners worlwide strategy plan. In this stage the entreprenuer & his organisation undergo the learning & experience curve effects which will help in the long run Stage. Favourable Conditions .3. 2) 3) Trade barriers • Import quotas particularly imposed by developed nations on goods allowed from developing nations . Political enviornment – The difference in political & legal environments across international markets pose different cahllenges in doing business in foreign markets. Tread carefully & start up operations through direct or Indirect exports. NAFTA etc. Each element of the business plan has to have some degree of congruence with local culture . • Subsidies to local manufacturers makes imports unviable • Trade blocks & free trade areas between developed nations & their neighbours encourages trade between them For e g EU countries . Culture – The impact of culture on Entrepreuners is significant with respect to the strategies that they intend to employ. The firm could employ a multi country strategy by tailoring its producst to suit each countries preferences & culture or go in for high degree of Integration & standardisation. which reduces indias chances of doing business in these sectors.Each element of the business strategy of the inmternational entreprenuer can be effected by political/legal environments. Stage.differenec between imports versus exports effects the valuation of its currency & hence effects its ability to do business with developed countries.

Hope for success 11. Technical knowledge 8. • Tax sops on export earnings • Setting up of export processing zones close to ports • Waiver of import duties on essential RM meant for processing export goods • Waiver of sale tax. Characteristic of an successful Entrepreneur.The indian government is encouraging international entrepreunership by offering the following initiatives.Indicate confidence .Capabilities testing when opportunities arise.To establish the product .Attempt task than fear of failure .make profit . levies on export goods • Providing for cheaper land to 100 % EOUs Q. . Qualities Skills/ Competencies 1. Leaning from experience 9.Motivation and self-confidence for success . Communication ability 7.Render social service .with customers/ employees/ suppliers/ creditors/ bureaucrats. o/p level . .High goals for themselves. 4. .Works for the present . .Necessary for risk taking.modify their goals on feedback from enviroment . Time orientation . Administrative ability 2. Human relation ability 6. octroi & other govt.Strong motivation towards achievement .No charity at.Intelligence/analytical approach creative thinking .Quote their past failure with pride . Need for Independence 10.Exert considerable efforts . Clear Objectives .Art of getting things done by other people . Ans. Mental ability 3.Anticipate changes .No leakage of business secrets to competitors .with customers/ employees/ suppliers/ creditors/ bureaucrats.Prefer not to be controlled . Business secrecy 5. Input level only at.Open to feedback .

So entrepreneur has to make short terms mkt.12. GNP and so on. Competition 14.Work himself with his hands. Weakness product obsolesces.Social implications of block mkt hoarding .Focus group 3. Methods . Business ideas would be short listed using various idea-generating schemes such as: 1. since these advances effect the product and services.Create jobs for others . Technology. Cultural.High expectations from employees .Brainstorming 2. Social Consciousness 16. The major environment factors. Social Change 15.Collaborate with other when to their advantage . decision and contingency plan. because the cultural changes may have change the attitude to wards safety health and nutrition. changes accruing at national and international level. Dignity of labour . please give a scheme to short.list a few good business idea? For a new venture to be set up an initial environment analysis has to be carried out in order to identity trends. knowledge raw material ability. 3. 2. Economic. There is major risk like competitor’s reaction mkt.The cultural changes has to be keenly evaluated as it may effect the business plan. .In this perdition is difficult in terms of advance due rapid developmental changes. which may affect the entrepreneurial. infrastructure and utility ability at the propose site.Problem inventory analysis 4.Check list ********************************************************************** Q Innovation and Entrepreneurship. *********************************************************************** Describe the process the of scanning the environment to start an entrepreneurial venture.One should consider the trends in terms off unemployment disposable income.New products/ new mfg. 13. gather knowledge about the government polices in terms of financial and commercial impacts of the policies. are: 1.Drive employees hard to achieve. set up.

or a new venture started by a lone individual in a family. To solve certain problems. Industry & market changes ********************************************************************* Q. market development aspects. Creativity can decline due to age. 2. perceptual. Understand the product users 5. Failure sometime produces innovation 7. 2. Learning happens from the desk 4. idleness. emotional & organisational factors. process. To face competition. Creativity can be used for development of better business ideas in terms of product. The various creativity oriented problem solving & idea generating techniques are as follows: 1. To survive recession 4. Innovations is the specific function of Entrepreneurship. Creativity & its role in developing business ideas Creativity is showing imagination & originality. Live in the future 6. cultural. Encourage creative conflict 2. Big ideas from small teams 3. 3. Innovation is needed for following reasons: 1. It is basically an innovation generated by entrepreneur in business to solve or generate ideas to serve the market better. 5. 8. Incongruities 4. whether in an existing business. education. Unexpected occurrences 2.An innovation is investing of resource to create new wealth or investing of wealth to cerate a new resource. Installing attitude for innovation : 1. Brainstorming Reverse Brainstorming Synectics Gordon method Checklist method Free association Forced relationship Collective notebook method . 7. To stand out in a clutter. Creative thinking is basically a process of searching screening & connecting thoughts. 6. Process needs 3. public service institution. 4. 3. Joint prototyping to brain storming for fast track innovation Different sources of Innovation: 1.

Modification matrix 17. Matrix charting 16. Kemper-Tregoe Method 12. Attribute listing method 14. Parameter Analysis . Morphological analysis 15. Inspired Approach 18.9. Scientific Method 11. Heuristics 10. Value analysis 13.

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