ENTREPRENEURSHIP DEVELOPMENT

LECTURE PLAN

BY KUMAR RATNESH

CHAPTER:-1

CONCEPT OF ENTREPRENEURSHIP

The word entrepreneur originates from the French word, entreprendre, which means "to undertake. In a business context, it means to start a business. The Merriam-Webster Dictionary presents the definition of an entrepreneur as one who organizes, manages, and assumes the risks of a business or enterprise. The concept of entrepreneurship has a wide range of meanings. On the one extreme an entrepreneur is a person of very high aptitude who pioneers change, possessing characteristics found in only a very small fraction of the population. On the other extreme of definitions, anyone who wants to work for himself or herself is considered to be an entrepreneur.

WHERE TO BEGIN- THE TRADITIONAL MODEL

Identified opportunity:General market Research Market Segmentation Segment Research Develop Plan:Pricing Model Competitive Research Business Plan

Assemble Plan:Attract and retain the best talent Complimentary skill and personality Funding and support:Make sure that you have more than enough resource to pursue your vision

THE SUCCESS FORMULA

TEAM

RESOURCE

STRATEGY

Team:- the Right Personality

Everyone should be... A team player A hard worker Curious Flexible Good at listening

Team:- The Right Skill

Need to have... Personal achievers Salespeople Creative people Managers Domain experts

Resource

Strategy
Fundamental issues to address Who is the market? What are their needs? How does this product/service meet these needs? What will they pay? How will they pay? What is the timeline for each stage of the business? What is the long term strategy? Who is your competition? How are you better?

Schumpeter's View of Entrepreneurship

Austrian economist Joseph Schumpeter 's definition of entrepreneurship placed an emphasis on innovation, such as: new products new production methods new markets new forms of organization Wealth is created when such innovation results in new demand. From this viewpoint, one can define the function of the entrepreneur as one of combining various input factors in an innovative manner to generate value to the customer with the hope that this value will exceed the cost of the input factors, thus generating superior returns that result in the creation of wealth.

Entrepreneurship vs. Small Business

Many people use the terms "entrepreneur" and "small business owner" synonymously. While they may have much in common, there are significant differences between the entrepreneurial venture and the small business. Entrepreneurial ventures differ from small businesses in these ways: Amount of wealth creation Speed of wealth creation Risk Innovation

ENTREPRENEURIAL MOTIVATION

 It should be interesting for you to know that the word motivation has its origin in the Latin word movere, meaning "to move." Psychologically, it means an inner or environmental stimulus to action, forces or the factors that are responsible for initiation, sustaining (and restraining/abstaining from) behaviour.

what motivates an entrepreneur.

There are various variants of the needs framework, such as the Need Hierarchy Theory propounded by Maslow, Two-Factor Theory given by Hertzberg and Three- Factor/ERG Theory formulated by Alderfer. We would, however, be referring to here much celebrated framework of manifest needs given by McClelland who may be regarded as the father of the study of entrepreneurial motivation. The prefix manifest suggests that you can easily perceive or observe these needs from the behaviour of the individual.

ENTREPRENEURIAL BARRIERS
Lack of viable concept Lack of market knowledge Lack of technical skill Lack of capital Lack of business know-how Lack of motivation Legal constraints and regulation Monopoly

TYPES OF ENTREPRENEUR
ACCORDING TO BUSINESS:Business Entrepreneur Trading Entrepreneur Industrial Entrepreneur Corporate Entrepreneur Agriculture Entrepreneur Retail Entrepreneur Service Entrepreneur

ACCORDING TO THE USE OF TECHNOLOGY:Technical Entrepreneur Non-Technical Entrepreneur Professional Entrepreneur High-tech Entrepreneur Low-tech Entrepreneur

ACCORDING TO THE MOTIVATION:Pure Entrepreneur Induce Entrepreneur Motivated Entrepreneur Spontaneous Entrepreneur

THEORIES OF ENTREPRENEURSHIP
An Economic Theory Leibensteins X-efficiency Theory Dynamic Entrepreneurship Innovation Theory Harvard school Theory Theory o High Achievement Theory of Change Theory of Profit

Theory of Adjustment of Market Theory of market Theory of Social change Theory of Entrepreneurial Supply Theory of Cultural Value

CHAPTER:-2

CREATIVITY AND INNOVATION

 Businesses, whether for-profit and nonprofit, are facing change like never before. Numerous driving forces to this change included a rapidly expanding marketplace (globalization), and increasing competition, diversity among consumers, and availability to new forms of technology.
Creativity and innovation are often key to the success of a business, particularly when strategizing during strategic planning, and when designing new products and services. Creative thinking and innovation are particularly useful during Strategic Planning (when strategizing) and in Product and Service Management (when designing new products and services.)

Creative as a prerequisite to innovation

Creativity - is the ability to bring something new into existence Innovation - is the process of doing new thing.

The difference between invention and innovation is

Invention - is the creation of new products, processes, and technologies not previously known to exist. Innovation - is the transformation of creative ideas into useful applications by combining resources in new or unusual ways to provide value to society for or improved products, technology, or services.

Necessary for innovative entrepreneurship

Investments in R&D public and private Simplified patent and IP processes Supply of knowledge and entrepreneurial capacity S&T and engineering graduates Entrepreneurship & management graduates Support-infrastructure and services Supply of early stage seed and venture capital Up-take of strategic technologies tech diffusion Sources of opportunity information

THE AREA IN WHICH PEOPLE ARE CREATIVE AT WORK People often do not recognize when they are being creative and they frequently overlook opportunities to be creative. The path to creativity begins by first recognize all of the ways in which we are or can be creative people in organization can channel their creativity into seven different area:-

Idea Creativity Material Creativity Organization Creativity Relationship Creativity Event Creativity Inner Creativity Spontaneous Creativity

Creative problem solving

 Creative problem solving is the mental process of creating a solution to a problem. It is a special form of problem solving in which the solution is independently created rather than learned with assistance.

Creative problem solving always involves creativity. However, creativity often does not involve creative problem solving, especially in fields such as music, poetry, and art. Creativity requires newness or novelty as a characteristic of what is created, but creativity does not necessarily imply that what is created has value or is appreciated by other people.

The following formalized and well-known methods and processes combine various creativity and creative-problem-solving techniques: TRIZ, which is also known as Theory of Inventive Problem Solving (TIPS), was developed by Genrich Altshuller and his colleagues based on examining more than 200,000 patents. This method is designed to foster the creation and development of patentable inventions, but is also useful for creating non-product solutions. Mind mapping is a creativity technique that both reframes the situation and fosters creativity. Brainstorming is a group activity designed to increase the quantity of fresh ideas. Getting other people involved can help increase knowledge and understanding of the problem and help participants reframe the problem. However, brainstorming seldom yields major innovations. Edward de Bono has published numerous books that promote an approach to creative problem solving and creative thinking called lateral thinking.

CREATIVE PROBLEM SOLVING

PURPOSE To develop the awareness and the skills necessary to solve problems creatively.

LEARNING OBJECTIVES
Define creative problem solving. Be familiar with common mental blocks to creative thinking process. Explore ways to be more creative. Know the steps to the creative problem solving process. Be familiar with: Brainstorm Mind mapping and Multivoting Apply tools to solve a problem.

DEFINITION
Creative problem solving is - looking at the same thing as everyone else and thinking something different.

BARRIERS THAT GET IN OUR WAY

Time Why change? Usually dont need to be creative Habit Routine Havent been taught to be creative

Lateral thinking

Lateral thinking is a term coined by Edward de Bono, a Maltese psychologist, physician and writer. It first appeared in the title of his book New Think: The Use of Lateral Thinking, published in 1967. De Bono defines lateral thinking as methods of thinking concerned with changing concepts and perception. Lateral thinking is about reasoning that is not immediately obvious and about ideas that may not be obtainable by using only traditional step-by-step logic.

There are a number of mental tools or methods that can be used to bring about lateral thinking. These include the following: Random Entry: Provocation: Challenge:

EDWARD DE BONO
I invented the term 'lateral thinking' in 1967. There are several ways of defining lateral thinking, ranging from the technical to the illustrative. "You cannot dig a hole in a different place by digging the same hole deeper" This means that trying harder in the same direction may not be as useful as changing direction. Effort in the same direction (approach) will not necessarily succeed.

"Lateral Thinking is for changing concepts and perceptions"

With logic you start out with certain ingredients just as in playing chess you start out with given pieces. But what are those pieces? In most real life situations the pieces are not given, we just assume they are there. We assume certain perceptions, certain concepts and certain boundaries. Lateral thinking is concerned not with playing with the existing pieces but with seeking to change those very pieces. Lateral thinking is concerned with the perception part of thinking. This is where we organise the external world into the pieces we can then 'process'.

"The brain as a self-organizing information system forms asymmetric patterns. In such systems there is a mathematical need for moving across patterns. The tools and processes of lateral thinking are designed to achieve such 'lateral' movement. The tools are based on an understanding of selforganising information systems."

"In any self-organizing system there is a need to escape from a local optimum in order to move towards a more global optimum. The techniques of lateral thinking, such as provocation, are designed to help that change."

IDEA GENERATION

Attributes of the Creative Person

Openness to experience Observance seeing things differently Curiosity Personal freedom Willingness to take calculated risks Self reliance Persistence Freedom from fear of failure Desire for recognition

Creative Organisation
Sharing a vision Interpersonal support Praising achievement Coaching Conflict resolution Accepting failure

Sources of Ideas.
Existing Businesses Franchises Product Licensing Patents Networking Support Agencies WWW..

Techniques for generating ideas

Guidelines for idea generating sessions
Select participants
Have a facilitator Task Focus Time Management

Techniques for generating ideas

Brainstorming Attribute Listing

Who, what, where, when, why, how

Assumption Smashing Discontinuity

Screening ideas for opportunities

Need for Solid Market Research
Size of market Competitor Analysis Market Conditions and trends Profit Margins Revenue Opportunities

Assessing a Good Idea Questions to ask

Why is it a good idea? What are the assumptions? What type of customer will buy it? Why? List four ideas why the idea will NOT work List four ideas why it will work. What are the differences?

Transforming Ideas into Realisable Opportunities

Action-oriented Focus and pace Easy to understand Networking with the industry Try, test and revise Harnessing competencies and capability

PROJECT

CONCEPT
The dictionary meaning of project is speculative meaning . It deal with three dimensions :-innovation , risk , and vision. Gilliner:- defines it as the whole complex of activities involved in using recourses to gain benefits.

CHARACTERISTICS OF A PROJECT
Investment pattern Expected result Time limit Location

PROJECT MANAGEMENT
Project management is the modern context is a highly sophisticated and fast developing concept and practice. It has been defined as The process of planning directing a project from its inception to its completion in a given cost to generate a given results.

PHASES OF PROJECT MANAGEMENT

Identification Formulation Appraisal Selection Implementation Management

ROJECT CLASSIFICATION
Quantitative & non-quantitative project Sectoral project Techno- Economic project Financial institution classification

PROJECT IDENTIFICATION
It is concerned with the collection, completion and analysis of economic data for the eventual purpose of locating possible opportunity for investment and with the development of the characteristics of such opportunity.

CONSTRAINTS IN PROJECT IDENTIFICATION

Internal constraints External constraints

TECHNIQUES OF PROJECT IDENTIFICATION

Desk research Techno-Economic survey

CRITERIA FOR PROJECT SELECTION

Investment size Location Technology Equipment Marketing

STAGES OF PROJECT FORMULATION

Feasibility Analysis Techno-economic analysis Project design and network analysis Input analysis Financial analysis Pre-investment analysis

PROJECT FEASIBILITY
The methods are as follows:Economic analysis Financial analysis Market analysis Technical assessment Managerial competence

TOOLS OF PROJECT APPRAISAL

Financial appraisal Economic appraisal Technological appraisal Socio-economic appraisal Managerial appraisal

CHAPTER:-3

SIDBIs FACILITIES FOR SMEs

 SIDBI IS THE APEX INSTITUTION FOR PROMOTION, FINANCING AND DEVELOPMENT OF SMALL ENTERPRISES. RECENTLY GOVERNMENT OF INDIA HAS PERMITTED SIDBI TO FINANCE MEDIUM SCALE UNITS. CUMULATIVE ASSISTANCE DURING 1990-2004 Rs.93,000 CRORE. AMONGST TOP 50 DEVELOPMENT BANKS IN THE WORLD

Indirect Assistance

Direct Assistance

Through 913 PLIs with 65,000 branches

Through network of SIDBIs 43 offices

CHANGING PARADIGMS SSI TO SME ENTERPRISES WITH SINGLE ENTREPRENEURS

BEING REPLACED BY TEAMS WHO DISPLAY COMPLEMENTARY SKILLS AND SET HIGH STANDARDS OF MANAGEMENT AND VALUE DELIVERY
TO

DOMESTIC PROJECTS BEING BENCHMARKED GLOBAL MARKETS / TECHNOLOGIES

GROWTH OF KNOWLEDGE BASED INDUSTRIES IN IT; BIOTECH; TELECOM; FOOD AND AGRO PROCESSING ETC.

SMALL & MEDIUM ENTERPRISES FUND (SME FUND)

SIDBI NODAL AGENCY CORPUS Rs.10,000 CRORE OVER FY2005, FY2006
PURPOSE TO GIVE IMPETUS TO THE GROWTH OF SMEs BY MAKING AVAILABLE TIMELY AND ADEQUATE CREDIT, CREATING INFRASTRUCTURE FOR THE SME SECTOR. RANGE OF PRODUCTS TERM LOAN RECEIVABLE FINANCE

SMALL & MEDIUM ENTERPRISES FUND (SME FUND)

Project cost not to exceed Rs.25 crore for service sector.
The definition for medium scale has not yet been notified by GoI. Interest rate 9.5% p.a. (2% below PLR of SIDBI under direct assistance)

SIDBI FACILITIES FOR SERVICE SECTORS Service sector projects covers a wide spectrum

1. Hotels (hospitality), resorts (leisure), restaurants,

2. Hospitals, diagnostic centres (health care)

3. Entertainment and amusement segments, tourism and travel operators

4. Franchisees/C&F agents/dealers of various service/product companies including oil companies (filling stations), telecom franchisees/dealers, car/auto dealers/workshops.

SIDBI FACILITIES FOR SERVICE SECTORS 5. Organised retailing - departmental stores, food stores etc.
6. Logistics including supply chains, material handling, warehousing, storage and inventory Management. 7. Courier services

FACILITIES FOR VENDORS OF LARGE CORPORATE/PSUs

SIDBI assistance for 2 main purposes
1) Project finance for land purchase, building construction, purchase of plant and machinery, miscellaneous fixed assets and margin money for working capital.
Textile sector (TUFS) Interest subsidy 5% Credit Linked Capital Subsidy 12% for select sectors.

FACILITIES FOR VENDORS OF LARGE CORPORATE/PSUs

2) Bill discounting facilities for supply of materials/services to the large corporates/PSUs.
SIDBI would be willing to take a direct exposure on the vendors with or without recourse to the large corporates/PSUs. Vendors could be from the SME segments i.e. if they could either be SSI or even medium scale (earlier SIDBI was not covering medium scale vendors).

CHANNELISING FINANCE TO SMALLER SSIs THROUGH NBFCs

SIDBI is considering a new intermediary network of NBFCs, local banks, etc., for dispensing smaller amounts of upto Rs.5 lakh to SSI units/entrepreneurs in a flexible manner. SIDBI could also consider providing resource support to NBFCs catering to the requirement of SSIs for the purchase of equipments, plant and machinery. In this regard, we would like to address group of NBFCs who could provide the above facilities to the SSIs (excluding transport operators)

List of Products/ Sub-sectors under CLCSS

1. Leather and Leather products including footwear and garments; 2. Food Processing including Ice Cream manufacturing; 3. Information Technology (hardware); 4. Drugs and Pharmaceuticals; 5. Auto parts and components; 6. Electronic Industry particularly relating to design and measuring; 7. Glass and Ceramic items including tiles; 8. Dyes and intermediaries; 9. Toys including Hard Case maker for Board Games & Educational Toys 10.Tyres;

List of Products/ Sub-sectors under CLCSS

11. Hand Tools; 12. Bicycle parts; 13. Foundries Ferrous and Cast Iron including Lubricant Manufacturing; 14. Stone Industry including Marble Mining Industry; 15. Medicinal and Aromatic plants; 16. Combustion devices/ appliances; 17. Gold plating and jewellery; 18. Common Effluent Treatment plants; 19. Biotech Industries; 20. Plastic Moulded/ Extruded Products and Parts/ Components and 21. Corrugated Boxes

ROLE OF SIDBI IN PROJECT MANAGEMENT

Introduction:
SIDBI is implementing a World Bank-led multi agency / multi activity Project on Financing and Development of SMEs. While SIDBI has been assigned with the responsibility of implementing the project, the Banking Division, Ministry of Finance, Government of India is the nodal agency for the same. The IBRD, Department for International development (DFID) UK, KfW Germany and GTZ Germany are the international partners in the Project. The Project is aimed at making SME lending an attractive and viable financing option as also facilitate increased turnover and employment in the sector. In order to achieve its aims, the Project, besides upgrading direct flow of credit to SMEs, addresses demand side issues of credit and streamlining access to qualitative financial and non-financial enterprise oriented services.

Components:
The Project has three major components: Credit facility from the IBRD and KfW Germany A Risk Sharing Facility Technical Assistance from DFID, UK and GTZ, Germany Financing Pattern

Project Management Division

In order to ensure smooth implementation of the Project, SIDBI has set up a dedicated Project Management Division at New Delhi. The present PMD team comprises of officials from SIDBI. Placement of officials from PFIs and need-based recruitment of specialists / experts on short to medium term basis is envisaged under the Project.

Implementation Status
Credit facility (CF) Risk Sharing Facility Technical Assistance (TA) Component

TYPES OF UNCERTAINTY

Uncertainty Principle
Uncertainty is a cognitive state which commonly causes affective symptoms of anxiety and lack of confidence. Uncertainty and anxiety can be expected in the early stages of the information search process.

Uncertainty Principle
The affective symptoms of uncertainty, confusion, and frustration are associated with vague, unclear thoughts about a topic or question. As knowledge states shift to more clearly focused thoughts, a parallel shift occurs in feelings of increased confidence. Uncertainty due to a lack of understanding, a gap in meaning, or a limited construction initiates the process of information seeking.

SUPPORTIVE ORGANISATION
The term institutional support system generally refers to the economic environment of industry and business comprising authority and institute whose decisions and operational framework affect the level of business. Basically, institutional support system is necessary at three stage of enterprise development .These are :a) Inception of the business b) day to day management c) Expansion and diversification

Supportive system developed by the central government

Small scale industry board Small industries development authority National small industry corporation Small industry development bank of India Small industry service institute

State government support system

District industries centre State financial corporation Technical consultancy organization

Incentives
The term incentive means encouraging productivity. It is the motivational force which makes an entrepreneur takes a right decision and act upon it. Incentive includes:Concessions Subsidies Bounties

Need for incentive

To remove regional disparities in development To promote entrepreneurship To provide competitive strength, survival and growth To generate more employment

Types of incentive
Financial incentive Fiscal incentive General incentive Special incentive in backward areas Reservation for items for exclusive manufacture in SSIs.

Incentive and Facilities to Exporters

Duty drawback Advance license duty exemption scheme Excise rebate Marketing assistance Raw material Export oriented unit

Financial institution
Industrial financial corporation of India(IFCI) ICICI IDBI IRBI LIC UTI Commercial bank

Small scale industries

First Five Year Plan(1951-1956) Second Five Year Plan(1956-1961) Third Five Year Plan(1961-1965) Fourth Five Year Plan(1969-19574) Fifth Five Year Plan(1974-1978) Sixth Five Year Plan(1980-1985) Seventh Five Year Plan(1985-1990) Eighth Five Year Plan(1990-1995) Ninth Five Year Plan(1997-2002)

Government Policies for SSI

Industrial Policies regulation 1948 Industrial Policies regulation 1956 Industrial Policies regulation 1977 Industrial Policy 1980 Industrial Policy 1990

International Entrepreneurship Opportunities

International Entrepreneurship
Nature of International Entrepreneurship Importance of International Entrepreneurship

International v. Domestic Entrepreneurship

Uncontrollable Factors
Economics
Stage of Development Balance of payment Type of system
Bartering Third-party arrangements

International v. Domestic Entrepreneurship

Uncontrollable Factors
Political-Legal environment Cultural environment Technological environment

International Entrepreneurship
Strategic Issues
Responsibility Centers
Stage 1 Stage 2 Stage 3

Nature of Planning
Environmental analysis Strategic planning Structure Operational planning Controlling

International Entrepreneurship
Market implications
Market characteristics Market institutions Industry conditions Legal environment Resources Political environment

Entrepreneurial Entry
Exporting
Indirect
Export management firms

Direct
Independent distributors

Entrepreneurial Entry
Non equity Arrangements
Licensing Turn-key projects Management contracts

Direct Foreign Investment

Minority interests Joint ventures Majority interests Mergers

Entrepreneurial Entry
Types of Mergers
Horizontal mergers Vertical mergers Product-extension mergers Market-extension mergers Diversified activity mergers

Synergy
Definition Causes

International Trade Issues

GATT Barriers
Increasing protectionist attitudes Trade blocs and free trade areas

Strategy and Free Trade Areas

Entrepreneurial Partnering
What to look for in an international partner? How to find them

CHAPTER:-4

WOMEN ENTREPRENEUR

Overview
At the macro level as women constitute half of a countrys population, womens empowerment is closely linked with the development of that nation
At the micro level, the fastest means to a womans empowerment is through economic independence which can be achieved through business and entrepreneurship development

The Context
Population: 130 million Area: 147,570 square km Religion: 85 % Muslim and 15 % Hindus, Christians and Buddhists Literacy: 60 %

The tools for womens entrepreneurship development

Access to Education Access to Mobility A conducive Social Structure Access to Finance

Why do Women Take-up Employment?

Push Factors
Death of bread winner Sudden fall in family income Permanent inadequacy in income of the family

Pull Factors
Womens desire to evaluate their talent To utilize their free time or education Need and perception of Womens Liberation, Equity etc. To gain recognition, importance and social status. To get economic independence

Categories of Women Entrepreneurs

Women in organized & unorganized sector Women in traditional & modern industries Women in urban & rural areas Women in large scale and small scale industries. Single women and joint venture.

Categories of Women Entrepreneurs in Practice in India

First Category
Established in big cities Having higher level technical & professional qualifications Non traditional Items Sound financial positions Established in cities and towns Having sufficient education Both traditional and non traditional items Undertaking women services-kindergarten, crches, beauty parlors, health clinic etc.

Second Category

Third Category
Illiterate women Financially week Involved in family business such as Agriculture, Horticulture, Animal Husbandry, Dairy, Fisheries, Agro Forestry, Handloom, Powerloom etc.

Direct & Indirect Financial Support

Nationalized banks State finance corporation State industrial development corporation District industries centers Differential rate schemes Mahila Udyug Needhi scheme Small Industries Development Bank of India (SIDBI) State Small Industrial Development Corporations (SSIDCs)

Technological Training and Awards

Stree Shakti Package by SBI
Entrepreneurship Development Institute of India Trade Related Entrepreneurship Assistance and Development (TREAD) National Institute of Small Business Extension Training (NSIBET) Womens University of Mumbai

Women Entrepreneurship in India

Earlier there were 3 Ks
Kitchen Kids Knitting

Then came 3 Ps
Powder Pappad Pickles

At present there are 4 Es

Electricity Electronics Energy Engineering

Some examples
Mahila Grih Udyog
7 ladies started in 1959: Lizzat Pappad

Lakme
Simon Tata

Shipping coorporation
Mrs. Sumati Morarji

Exports
Ms. Nina Mehrotra

Herbal Heritage
Ms. Shahnaz Hussain

Balaji films
Ekta Kapoor

Naina Lal Kidwai, Investment Banker Fortune magazine listed her as one of the worlds most powerful businesswomen in 2003. India Inc recognises her as one of its most powerful investment bankers. But Naina Lal Kidwai, HSBCs deputy CEO, cant be reduced to simple woman-banker equations; her professional vision transcends gender Shahnaz Husain, Herbal Beauty Queen Shes the "Estee Lauder of India", with even famous department stores like Galleries Lafayette in Paris, Harrods and Selfridges in London and Bloomingdales in New York stocking her cosmetics, creams and lotions.

Vineeta Bali
Director, Academic Success Program
she practiced law as a business litigator for three years, and then as a transactional attorney for the Silicon Valley Law Group for several years. Her main responsibilities as a transactional attorney were in the following areas: mergers and acquisitions, investor financing and corporate funding, business formation and corporate governance, securities compliance for privately held and public companies. Lalita Gupte, Banker shes created a formidable global presence of what was once a native development finance institution. Accountholders can now bank at ICICI branches in UK, the Far East, West Asia and Canada. With ICICI since 1971, Gupte was the first woman to be inducted on the board in 1984.

Problems
Dual role to play at workplace & at home place Subordinate to men Just that her being women Non-awareness of facilities provided by government Competition with large scale units Problems related to marketing

Challenges
Pre-start up experience of the labour market. Traditional views on womens roles. The financing of female owned firms. The use of networks and role models Lack of knowledge and training in business and IT skills. Low self-esteem & confidence High level of businesses + innovation

The Biggest Fear

Fear of debt is the single largest barrier to entrepreneurship for both men and women, although women are significantly more fearful than men. (GEM, Jan 2004) Entrepreneurs (at different stages) tend to be less afraid of failure than people who indicate no involvement in entrepreneurial activity

Why encourage women entrepreneurship?

Entrepreneurs create markets but they also act as change agents

To achieve real change, we need a partnership between businesses, education, individuals and Governments

SICK INDUSTRIES

CONCEPT
Sickness is easy to understand but difficult to define. It is a relative term. In common parlance , a sick industry is one which is not healthy . A healthy unit is one which earns a reasonable return on capital employee and which builds up reserve after providing reasonable depreciation.

ACCORDING TO SICK INDUSTRIAL COMPANIES ACT,1985

An industrial company is defined as a sick, if -It was registered for last 7 year. - It incurred cash from losses for the current and preceding year - Its net worth was eroded.

CLASSIFICATION OF SICKNESS
Genuine Sickness Incipient Sickness Induced Sickness

SIGNAL OF INDUSTRIAL SICKNESS

Decline in capacity utilization Shortage of liquid fund Inventory in excessive quantity Non-submission of data to bank Irregularity in maintaining bank account Frequently turnover of personnel in the industry

CAUSE OF SICKNESS
External Cause:Power cuts Competition Non availability of inputs Government policy Lack of infrastructure Problem with financial institution Labor problem

INTERNAL CAUSE
Law quality Poor marketing effort Faulty capital structure Managerial incompetence Excessive growth of inventory Long credit period Wrong location

CONSEQUENCES
Huge financial loss to the bank Loss to employment opportunity Emergence of industrial unrest Wastage of scarce resource Loss of revenue

SUGGESTIVE MEASURES
Identification in incipient stage Integrated approach Change in management Setting up screening committee Audit RBI guidelines

REMEDIAL MEASURES
Sick industries policy,1978 Sick industries policy,1981 Sick industrial companies 1985 RBI Assistance by SFCs Services by Technical consultancy organization

ROLE OF BIFR IN REVIVAL

The BIFR has been vested with powers to institute the necessary enquiries to determine whether the unit is sick or not. If a board concluding that the unit has become sick unit it can give reasonable time to the unit to make its net worth positives or it can devise suitable measures like change of management The board is also empowered to suggest other preventive, ameliorative and measures as may be appropriate.

BANK SYNDIATIONS
The steps involved in a loan syndication arrangement can be put as follows:Preparation of the project report Preparation of loan application Selection of financial institution for loan syndication Receipt of sanction letter or letter of intent from the financial institute

FAMILY Vs NON FAMILY ENTREPRENEUR

The major differences are:Authority structure Succession plan Interest Familial feud power

PROFESSIONALISM
Professionalism is actually the process by which given occupation becomes professions in the sense of attaining professional status.

PROFESSIONALISM Vs FAMILY ENTREPRENEURS

Degree of open mindedness New practice Impartial HRM Organization oriented financial management Decision making style

VENTURE CAPITAL

What Is Capital ?
Most important factor of production. No economic entity can function without capital. Requires at every step for set up, expansion, growth, modernization, diversification.

What is Venture Capital???

It is type of private equity capital typically provided by professional, outside investor to buss. Growth.

Why venture capital??? It is required for.. For start up For devlopment \ expansion.. For modernization And fast growth of company

Who Are Venture Capitalists ?

Active Investors Who Will Step In and Make Changes to Protect Their Investment. Experienced Investors Who Know How to Build Large Companies.

WHAT DO VENTURE CAPITALISTS LOOK FOR?

Growing market Unique product Sound business plan Gross profit margin Home run potential

History Of Venture Capital

1946 AR&DC. General Georges Doriot Father of modern Venture Capital Industry. Professionally managed due to Small Business Investment Act of 1958.

Salient Features Of Venture Capital

High Risk Venture. Gestation Period is long. Managerial Assistance. Shares n Stock Market. Investment only in highly innovative ideas.

Method Of Venture Financing

Equity Conditional Loan Convertible Debentures Cumulative Convertible Preference Shares

The Venture Capital Process

Deal origination Screening Evaluation Deal Structuring Exit The Investment

Advantages of Venture Capital

Economy OrientedIndustrialization Tech. development Generating employment Investor Oriented Entrepreneur Oriented Finance Buss. Partner Network of contact

CLEAR OBJECTIVE

PATIENCE

NETWORK

SUCCESS FACTOR

EXPERIENCE

Guidanc e

MGMT. SKILLS

VENTURE CAPITAL SCENARIO IN INDIA

1972: The Committee on Development of Small and Medium Entrepreneurs. 1975: inauguration of Risk Capital Foundation (RCF), sponsored by IFCI. 1976: The seed capital scheme was introduced by IDBI.

VC PLAYERS IN INDIA:
1. Govt. player
APIDC VC ltd. APFC Assum financial corporation DFC. Industrial state fc. Rajasthan vc Ltd. 2. PRIVATE Player Avishkar india micro Ltd. BOA consultancy service Chrys capital fund Tata investment Ltd. Indian direct equity advisers Ltd.

THANK YOU