ENTREPRENEURSHIP DEVELOPMENT

LECTURE PLAN

BY KUMAR RATNESH

CHAPTER:-1

CONCEPT OF ENTREPRENEURSHIP

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

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:. •Personal achievers •Salespeople •Creative people •Managers •Domain experts .The Right Skill Need to have...

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. 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. 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. .

Entrepreneurial ventures differ from small businesses in these ways: ►Amount of wealth creation ►Speed of wealth creation ►Risk ►Innovation .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 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 ►Leibenstein‟s 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 .

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

is “the ability to bring something new into existence ►Innovation . .is the process of doing new thing.Creative as a prerequisite to innovation ►Creativity .

or services. and technologies not previously known to exist. technology.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.The difference between invention and innovation is ►Invention . .is the creation of new products. ►Innovation . processes.

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 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:- .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.

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

Creative problem solving .

Creativity requires newness or novelty as a characteristic of what is created. However. creativity often does not involve creative problem solving. but creativity does not necessarily imply that what is created has value or is appreciated by other people. especially in fields such as music. It is a special form of problem solving in which the solution is independently created rather than learned with assistance.► Creative problem solving is the mental process of creating a solution to a problem. ► Creative problem solving always involves creativity. . poetry. and art.

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

CREATIVE PROBLEM SOLVING PURPOSE ►To develop the awareness and the skills necessary to solve problems creatively. .

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

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

BARRIERS THAT GET IN OUR WAY ► Time ► Why change? ► Usually don‟t need to be creative ► Habit ► Routine ► Haven‟t been taught to be creative .

Lateral thinking .

. It first appeared in the title of his book New Think: The Use of Lateral Thinking. ► De Bono defines lateral thinking as methods of thinking concerned with changing concepts and perception.►Lateral thinking is a term coined by Edward de Bono. 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. published in 1967. a Maltese psychologist. physician and writer.

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

. Effort in the same direction (approach) will not necessarily succeed. ranging from the technical to the illustrative. ►There are several ways of defining lateral thinking.EDWARD DE BONO ►I invented the term 'lateral thinking' in 1967. "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.

This is where we organise the external world into the pieces we can then 'process'. But what are those pieces? In most real life situations the pieces are not given. We assume certain perceptions. we just assume they are there. certain concepts and certain boundaries."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. 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.

The tools are based on an understanding of selforganising information systems.►"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 techniques of lateral thinking. are designed to help that change. such as provocation." .►"In any self-organizing system there is a need to escape from a local optimum in order to move towards a more global optimum.

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 .

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

Techniques for generating ideas ►Guidelines for idea generating sessions – Select participants – Have a facilitator – Task Focus – Time Management .

how ►Assumption Smashing ►Discontinuity .Techniques for generating ideas ►Brainstorming ►Attribute Listing ►Who. what. why. when. where.

Screening ideas for opportunities ►Need for Solid Market Research – Size of market – Competitor Analysis – Market Conditions and trends – Profit Margins – Revenue Opportunities .

►What are the differences? .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.

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 .

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

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 .

. 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.PROJECT IDENTIFICATION ►It is concerned with the collection.

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 .

SIDBI’s FACILITIES FOR SMEs .

► CUMULATIVE ASSISTANCE DURING 1990-2004 – Rs. ► AMONGST TOP 50 DEVELOPMENT BANKS IN THE WORLD .93.000 CRORE. ► RECENTLY GOVERNMENT OF INDIA HAS PERMITTED SIDBI TO FINANCE MEDIUM SCALE UNITS. FINANCING AND DEVELOPMENT OF SMALL ENTERPRISES.► SIDBI IS THE APEX INSTITUTION FOR PROMOTION.

Indirect Assistance Direct Assistance Through 913 PLIs with 65.000 branches Through network of SIDBI’s 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. . FOOD AND AGRO PROCESSING ETC. TELECOM.

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

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

telecom franchisees/dealers. . Hospitals. 2. Entertainment and amusement segments.SIDBI FACILITIES FOR SERVICE SECTORS Service sector projects covers a wide spectrum 1. car/auto dealers/workshops. Franchisees/C&F agents/dealers of various service/product companies including oil companies (filling stations). diagnostic centres (health care) 3. tourism and travel operators 4. Hotels (hospitality). resorts (leisure). restaurants.

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

purchase of plant and machinery. building construction. 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 SIDBI assistance for 2 main purposes 1) Project finance for land purchase. .

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

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

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

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

ROLE OF SIDBI IN PROJECT MANAGEMENT .

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

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

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

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

TYPES OF UNCERTAINTY .

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

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

►Basically.These are :a) Inception of the business b) day to day management c) Expansion and diversification . institutional support system is necessary at three stage of enterprise development .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.

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 .

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

survival and growth ►To generate more employment .Need for incentive ►To remove regional disparities in development ►To promote entrepreneurship ►To provide competitive strength.

.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 .

the fastest means to a woman‟s empowerment is through economic independence which can be achieved through business and entrepreneurship development .Overview • At the macro level as women constitute half of a country‟s population. women‟s empowerment is closely linked with the development of that nation • At the micro level.

The Context • Population: 130 million • Area: 147.570 square km • Religion: 85 % Muslim and 15 % Hindus. Christians and Buddhists • Literacy: 60 % .

The tools for women’s entrepreneurship development • • • • Access to Education Access to Mobility A conducive Social Structure Access to Finance .

importance and social status. To gain recognition. Equity etc. To get economic independence .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 – – – – – Women‟s desire to evaluate their talent To utilize their free time or education Need and perception of Women‟s Liberation.

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. .

health clinic etc. ►Second Category . crèches.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. beauty parlors.

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

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) ►Women‟s 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. Shahnaz Hussain ►Balaji films – Ekta Kapoor . Sumati Morarji ►Exports – Ms. Nina Mehrotra ►Herbal Heritage – Ms.

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

Lalita Gupte. Gupte was the first woman to be inducted on the board in 1984. securities compliance for privately held and public companies.►Vineeta Bali Director. Accountholders can now bank at ICICI branches in UK. Her main responsibilities as a transactional attorney were in the following areas: mergers and acquisitions. investor financing and corporate funding. West Asia and Canada. business formation and corporate governance. 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. With ICICI since 1971. the Far East. . Banker ►she‟s created a formidable global presence of what was once a native development finance institution.

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 .

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

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

individuals and Governments . we need a partnership between businesses. education.Why encourage women entrepreneurship? –Entrepreneurs create markets but they also act as change agents – To achieve real change.

SICK INDUSTRIES .

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

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 .

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

►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.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. . 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… ..

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

WHAT DO VENTURE CAPITALISTS LOOK FOR? Growing market Unique product Sound business plan Gross profit margin Home run potential .

• Professionally managed due to “Small Business Investment” Act of 1958. • General Georges Doriot – Father of modern Venture Capital Industry.History Of Venture Capital • 1946 AR&DC. .

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

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

SKILLS .CLEAR OBJECTIVE PATIENCE NETWORK SUCCESS FACTOR EXPERIENCE Guidanc e MGMT.

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

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

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