Entrepreneurship Development Programme

“ Government schemes and Entrepreneurship Development

● India is witnessing a startup boom across all sectors including technology,

innovation, health, robotics, automobiles, food, education and so on.

● India now stands at 3rd position , after US and UK, in the global startup
ecosystem.

● Startups, if successful, act as magnets to attract foreign investments and

boost the economy. Also, with the ever-increasing demand of consumer
products, manufacturing them within the country seems more feasible and
lucrative.

● And to this boom, to encourage budding entrepreneurs to kickstart innovative

businesses that will eventually create employment opportunities, the
government offers innumerable schemes to make the process easy.

● The schemes provide financial assistance to potential individuals and

organisations in the form of subsidies and loans.
“ Government schemes or other bodies which support small
businesses and startups.
“ NewGen innovation & Entrepreneurship Development Centre
(NewGen IEDC)

● Headed by: Department of Science and Technology, was launched in 2017.

● The programme is implemented by the Entrepreneurship Development Institute of India (EDII),

Ahmedabad.

● It promotes “knowledge based and technology driven startups” through mentorships, guidances and
support. With this, job seekers become job generators. It is a five-year project to be implemented in
education institutions.

● Eligibility:

The parent institution should have required expertise and infrastructure. This includes a
minimum dedicated space of about 5,000 square feet to establish a NewGen IEDC, library,
qualified faculty, workshops, etc.

● Funding:

one time cost of Rs 25 lakh will be granted in phases.

“ The Women Entrepreneurship Platform
(WEP)

● Headed by: NITI Aayog, launched in 2018

● The scheme is for budding and existing women entrepreneurs across India.

● It also offers incubation and acceleration support to startups founded or co-founded by women.

● Eligibility:

Women at the ideation stage and established startups can register for the scheme. Corporates,
NGO, organisation, incubators can also apply provided that they are supporting women in any
form.

● Benefits like free credit ratings, mentorship, funding support to women entrepreneurs, apprenticeship
and corporate partnerships.
“ Atal Incubation Centres
● Headed by: Atal Innovation Mission (NITI Aayog)

● AIC is a funding scheme to promote entrepreneurs by covering their capital operational costs.

● Its aim is to support establishment of world class incubation centres to nurture startups to become
sustainable and scalable business centres.

● These incubation centres, with a presence across India, provide access to sectoral experts, business
planning support, seed capital, industry partners and trainings to encourage innovative start-ups.

● Eligibility:

Individuals, group of individuals, educational institutions, R&D Institutes, corporate sector

enterprises etc. are eligible. Applicant must provide a minimum of 10,000 sq. ft built up space for
use of AIC.

● Funding:

AIM will provide a grant-in-aid of up to 10 crore INR for a maximum period of 5 years to cover
the capital and operational expenditures to establish the AIC at eligible institutions.
“ ASPIRE
● Headed by: Ministry of MSME

● The scheme is introduced with the aim of promotion of innovation in rural industry and
entrepreneurship.Since 56% of the Indian population live in rural areas, the government is promoting
entrepreneurship and innovation in this area.

● The scheme, ASPIRE aims at increasing employment, reducing poverty and improving innovation in
rural India.

● It was launched with aspiration to:

- Promote startups for innovation

- Set up a network of technology centres

- Entrepreneurship in agriculture industry.

● Eligibility: MSME
“ National AWARDS (Individual MSES)

● Headed by: MSME

● The ministry selects from among enterprises and entrepreneurs, recognising their efforts and
contributions to MSMEs.

● The MSME must be in continuous production or in service for the last four years.

● Eligibility:

Entrepreneurs of MSMEs having permanent registration number or have filed Entrepreneurs

Memorandum to respective authorities. MSME should have been in continuous production since
last four years.

● Funding:

Benefits in the form of cash is awarded to the winners. MSMEs from different categories like
women entrepreneurs, SC/ST category, NER Entrepreneurs are selected for the award. Cash
prize up to 1 lakh INR is awarded to winners.
“ Stand Up India

● Headed by: Small Industries Development Bank of India (SIDBI), launched in 2016.

● The scheme promotes entrepreneurs from SC/ ST and among women

● Eligibility:

SC/ST/Women individual or non-individual entrepreneur having at least 51% SC/ST/Women

above 18 years of age. Borrower should not be in default to any bank or financial institution.

● Funding:

Facilitates bank loans between 10 lakh INR to 1 crore INR for at least one SC/ST/woman
entrepreneur borrower.
SOCIAL ENTREPRENEURSHIP
“
Social entrepreneurship is an approach by individuals,

groups, start-up companies or entrepreneurs, in which they

develop, fund and implement solutions to social, cultural or

environmental issues.
”
WHAT IS SOCIAL ENTREPRENEURSHIP?

● In social entrepreneurship, profit is no longer the ultimate goal of business but a means to
achieve broader goals connected to improving society and the environment.
● Today social and inequalities are growing worldwide, millions of people are connected by the
idea that it is possible of doing a business on human scale, that is to make money and do
something good for the community.
● Social entrepreneurship is the new and creative approach of Business, Social engagements and
Social services.
● It plays in social goals with their profit increase, uses business as mean for social change,
resolve social problems through market strategies.
➢ There are numerous of organisations are operating worldwide and in country, that
we call Social Enterprises.

➢ Social Enterprise is just like any other business its work is to charges the market
rate and generate the profits what makes it the business on human scale its were
the profit is used, profit is to serve to fulfill the needs of social missions.

➢ Social Enterprises do not serve to enlarge the wealth of their owners and the
shareholders, they operate in order to contribute to social equalities and to
improve the living conditions of the people living in the community.

➢ To generate the profit and to re-invest in business and to focus on social goals like
job creation, social inclusions, health care, cultural needs and preservation of the
environment.
The four pillars of social enterprises

Social entrepreneurship has similarities and differences when compared to the

standard definition of entrepreneurship. In this way, it consists of four key ideas:

➢ The economic viability of the project

Like any sustainable business activity, social entrepreneurship projects must meet
a real demand previously identified in a market study. It needs to be profitable
enough to create wealth and jobs.
 ➢ Social and/or environmental objectives
Social or environmental goals are key to these types of project as they create the
“social value” and the purpose of the business for both the team and the
community. These objectives mostly focused on improving the world, can be of
different natures: from the access to health services and energy savings to reducing
unemployment or encouraging local food consumption.

➢ Profit distribution
Depending on the legal status of the company, profits can be reinvested primarily
for the optimal achievement of social and environmental objectives. Individual
profits are formally limited and rigorously supervised.
 ➢ Governance
“Participation” is the key word of governance in social entrepreneurship. Here, as
the collective interests always outcomes individual interests, decision-making is
always a shared process. This means all stakeholders are involved: from managers
and staff to customers/users, local or even the national political power…
 SOCIAL ENTREPRENEURS

“ By nature, social enterprises are managed following the principles of corporate

social responsibility (CSR) and Sustainable Development.
The people running these social businesses are called Social entrepreneurs. And
as we’ve been discussing, their measure of success isn’t about profit. Instead, they

feel successful when their business has somehow improved the world. ”
 SOME ENTREPRISE WHO HELPED
COMMUNITY IN THE TIMES OF
PANDEMIC

These include Cycle Connect in Uganda and PichaEats in

Malaysia, both of whom are alumni of
Miller Center for Social Entrepreneurship accelerator
programs.
 Cycle Connect

● finances income-generating assets—including oxen, plows and bicycles—to

unlock access and opportunity for rural households living in the last mile.

● To respond to food shortages resulting from the pandemic, the company

rapidly designed a new seed loan program to help rural families stay food
secure.

● And to ensure that healthcare workers could get to the frontlines during
Uganda’s transport ban, the organization donated over 100 bicycles to
community clinics.

● Cycle Connect’s funders and impact investors have stepped in with

restructured loans and emergency grants during the crisis.
 PichaEats

● a catering company, pivoted its business model not only to survive but to
continue its mission of empowering and providing a sustainable living for
refugees and asylum seekers.

● The organization trains refugees as professional chefs and supports them

with menus, packaging, marketing and delivery logistics. But with
lockdowns in Malaysia, catering orders disappeared.

● PichaEats responded by launching a sponsorship program—with support

from impact investors, fellow social entrepreneurs and corporate donors—
that enables refugees to cook from home and deliver meals to front-line
workers and people who have lost their jobs. To date, close to 15,000 meals
in nearly 20 communities have been distributed.
Entrepreneurs rising up during COVID-19, taking it as an opportunity.
Examples.

These days, it is easy to focus on the negative. The spread of COVID-19 is having a
devastating effect on countries’ economies and their citizens’ health. The novel aspect
of this pandemic involves several unknowns and is likely to have a lingering impact for
years to come. However, despite the current climate, I am somewhat comforted that the
history of past pandemics and crises suggests an eventual recovery plan for the world.
After all, necessity is the mother of all invention. New creations arise out of disruption.
My optimism is elevated by seeing the massive creativity and initiative of individuals
coming together to solve the problem at hand through innovation. In particular, these
inspiring phenomena have caught my attention.
 HULA GLOBAL

The nationwide lockdown announced in March to fight the coronavirus pandemic came out like a bolt from
the blue for businesses. With salaries and overhead costs to pay, companies across India feared shutdown,
and entrepreneurs were in dire straits. While some are still striving hard to stay afloat in the business,
others are pivoting operations to not just survive but also emerge as winners during the pandemic. Karan
Bose, Founder of Hula Global, a garment manufacturing company, also pivoted his business to manufacture
N95 masks and surgical gowns, among other essential items, in the time of coronavirus.
IN HIS WORDS

Noida-based Hula Global was founded in 2018, and the business was doing well until
the coronavirus pandemic hit the country. Karan says, to run the business operations
and tide through the hard times, he diversified its business into manufacturing PPE kits,
N95 masks, face shields, etc., to meet the rising demand for such products in the
country.
HOMESCAPE

As the COVID-19 pandemic and the lockdown crippled the economy across the world, many
businesses faced this adversity with fortitude. Coworking spaces, particularly, have been hit hard
during the pandemic. With social distancing and work from home becoming the norm, the future of
coworking spaces remains uncertain, at least till the wave of the pandemic fades away. The story
of Workshaala is an example of how a company emerged out of the COVID-19 crisis stronger.
Founded in 2013 by Manoj Khandelwal, the Bengaluru-based company is a coworking space. As
most people started working from home due to the coronavirus, the company came up with an
initiative called ‘Homescape,’ to provide furniture to people working from home. It is providing
tables, chairs, and desks to help improve the individual’s productivity and provide them with comfort
and ease at the same time.
 SHREE SHAKTI ENTERPRISES - PNB
KITCHENWARE
By then, Shree Shakti Enterprises — a bulk trader of steel utensils started by his grandfather in 1956 — was over half a century old. In 1997,
Rahul’s father established the company’s first manufacturing unit in Delhi, and launched the brand PNB Kitchenmate.

By the turn of the millennium, Shree Shakti became a manufacturer and seller of essential kitchenware.

PNB Kitchenmate diversified its portfolio to nearly 3,000 products across pressure cookers, casseroles, saucepans, woks, plates, lunchboxes,
cooking pots, and even puja thalis.

In 2019, Shree Shakti also joined Walmart’s Supplier Development Programme — Vriddhi — in India.

----- But come 2020, and Shree Shakti — like most businesses in the world — would hit a speed bump. The coronavirus pandemic ravaged
industries, paused economic activity, shut factories, and rendered hordes of people jobless. Shree Shakti had to close all its manufacturing
units in Sonipat, Haryana, as India went into a lockdown in late March. Consumption fell drastically, and sales of non-essential items hit the
south.

Almost compelled to innovate to survive, the company started building products that could come in handy in the present crisis. From
sensor-based sanitiser dispensers to hands-free hand wash systems, and automatic foot sanitisers, Shree Shakti ventured into uncharted
territory. Rahul started building the first prototype within days of the lockdown and installed the first unit of the hand wash system in his
colony. The product comes in different sizes and is priced between Rs 15,000 and Rs 25,000 apiece. The touch-free device dispenses soap
or hand wash if you press a lever with your foot. You push a second lever for water to rinse your hands. And, the third part of the unit comes
with a sanitisation tray for footwear.
 BIOLINE INDIA

When the first coronavirus case in India surfaced in January 2020, no one knew the extent of the virus’s
impact on our lives.

The World Health Organisation (WHO) termed COVID-19 a ‘real threat’ in March 2020, when the cases were
gradually increasing in India. And, once sleeping products like masks and hand sanitisers started selling like
hot cakes — flying off the shelves and off of ecommerce portals.

Neeta Goel, Founder of Bioline India, narrates a similar story with ULV Bio Fogger, a product that was
developed in 2005. She shares how COVID-19 skyrocketed the demand of this once slow-moving product
so much so that the team is working 24x7 to meet the demand, pivoting its business operations. Based in
Indore, Bioline India was founded by Neeta Goel and her late husband Rajeev Goel in 2001 to manufacture
and supply affordable medical equipment to masses.
 ZYRO CARE

Kamayani Naresh, a retired Indian Navy officer, claims to have developed a long and sustainable solution to boost immunity —
zyropathy — which is named for the word ‘Zyro’ and means helping humanity.

Naresh is the founder of Zyro Health Care Pvt Ltd, a Delhi-based company that provides food and herbal supplements. In an
interview with SMBStory, Naresh reveals what zyropathy is, and how it can help treat coronavirus. The USP of zyropathy is that it is
a complete wellness solutions provider.

It combines Ayurveda with modern medicines such as food supplements to eradicate the ailment completely from the body. Big
companies talk about wellness; they even have products that contribute to the health of the people, but there is no system to guide
them. Zyropathy fulfills these gaps by providing consultations that are backed by modern medicine. In other words, it is the modern
form of Ayurveda. Naresh says, Coronavirus has affected us badly. The next six months are extremely critical, and I believe that we
will lose at least five to seven crore lives.

Zyro Health Care has come up with a product called Preventika, which is used to boost immunity. A lot of companies are also
coming up with different products to combat the virus. It took the company 14 years to develop Preventika, which has 14 locally
sourced herbs, including curcumin. It is not specifically for coronavirus, but to boost the overall immune system, Naresh says. The
company uses 100 percent natural ingredients for making Zyro Naturals and food supplements. However, no drugs, steroids,
immunosuppressants, and harmful ingredients are used.
LEGAL FRAMEWORK

Starting a business is a daunting task

At its core, a good business structure requires an astute business model and a prudent legal
foundation. The chosen legal system should ideally enable one's business to grow with minimal
intervention. For this, the new business needs to know which legal system will cater to the needs
of their particular business model.

Step 1 : Incorporation of a business entity

Step 2 : Discuss, Prepare and Sign the Founder's Contract
Step 3 : Obtain the Required Registrations and Licenses
Step 4 : Trademark your Brands
Step 5 : Organize your Accounting and Taxation Systems
Step 6 : Create Business Policies
Step 7 : What are the different type of business entities?
Step1: Incorporation of a business entity
The first step in starting a business is to decide on the format of entity for conducting the business. This is
an important decision: the right type of business entity will support your business plan and help accelerate
your business growth. You may also be able to avoid high tax rates and prevent personal liabilities in case of
a loss. A business may be set up in India by way of a proprietorship, One Person Company, Partnership,
Limited Liability Company, Private Limited Company and Public Limited Company.

Step 2 : Discuss, Prepare and Sign the Founder's Contract

Often, founders start off the venture on an oral understanding of various crucial issues, without putting
matters down on paper. Even if co-founders are best friends from school, family members or trusted past-
business associates. Therefore, it is necessary to have a very clear agreement among the founders /
partners about the investments and the distribution of profits.

Some of the issues that need to be discussed and agreed upon among the founding team are:
* Dealing with shares of a founder who leaves the business.
* The decision making system of the business.
* The ownership structure of the business.
* The roles and responsibilities of the founders.
* The modalities of addition of a new partner in the future.
* Protection of founders who do not have a majority stake in the business.
Step 3 : Obtain the Required Registrations and Licenses
A business is required to be registered with various government authorities
The following are the various registrations and licenses which may be required by your business to operate a
business in India:
* Import Export Code (IEC) if the business involves import or export
* Employees' Provident Fund Organization
* Value-Added Tax (VAT) if the business involves sale of goods
* Shop and Establishment License for physical premises
* Permanent Account Number (PAN) for income tax
* Taxation Account Number (TAN) for withholding of tax
* Service Tax Number if your business involves providing services
* Professional Tax Registration
* Employees' Insurance (ESIC)

Step 4 : Trademark your Brands

As your business grows, so does its goodwill. It is therefore necessary for you to protect your trade name,
logo, tag line, and key phrases from misuse. Trademark gives you protection against misappropriation of
value that you create in your business through branding and advertising. It is advisable to file for your
trademark at an early stage, before you start your branding activities.
Step 5 : Organize your Accounting and Taxation Systems
A well-designed accounting system is among the most important parts of your business.
A strong accounting system could be the dashboard of your company's finances, helping you understand the
answers to various questions such as:
•How could you scale up your operations and how should you finance this growth?
•In what areas could course corrections be made to ensure a healthier financial position?
•Are things going as per your business plan or are there any course corrections that you need to make?
•What discounts and credit periods can you afford to offer to your customers?
•How could you prepare and analyse meaningful 'what-if' scenarios for taking strategic and tactical
decisions?

Step 6 : Create Business Policies

Operational Policies:
•Marketing Policy (advertising guidelines, commission structure, client satisfaction parameters)
•Website Terms and Conditions
•Human Resource Separation Policy (retirement, resignation, termination, notice, handover, full and final,
etc.)
•IT Policy (level of access, restricted sites, backups, checkups, etc.)
•Human Resource Policy (Recruitment, training, travel, reporting, attendance, reimbursement, leave,
disciplinary)
•Rewards Policy (appraisals, increments, promotions, benefits, etc.)
•Code of Conduct (corporate culture, sexual harassment, conflict of interest, whistle-blower, etc.)
•Sales Policy (invoicing, discounts, payments, product return, interest on delayed payments, after-sales,
etc.)

Website Policies:
•Privacy Policy
•Terms of Use Policy
•Disclaimer of Liability

Employee-related Policies:
•Termination Letter
•Increment Letter
•Employee Offer Letter
•Non-Disclosure Agreement
•Notice for Default
•Relieving Letter
RISK AND ANALYSIS

The Internet has opened huge possibilities for small entrepreneurs to start their online businesses and
earn money from the Web. The Web has become a critical business medium for small entrepreneurs.
While the Web has the power to expand your business beyond your zip code, the number of risks
associated with this global exposure also grows significantly.
Like the traditional businesses on Main Street, an online business faces a number of risks. Some of these
risks have the potential to severely damage, if not altogether, kill your online business. As an online
entrepreneur, you must understand these risks and take them into account when making business
decisions. Your goal should always be to minimize these risks so as not to adversely affect your Web
business.
For example, as a web-based business, you will face a number of technology risks. As technology changes
quickly, your web business must be able to catch up to these challenges.
Web-based businesses are also vulnerable to security threats and risks — from malware infections to
hacking to security breach that compromises the credit card information of customers. And of course,
there are also market risks that you need to watch out for.
These are few risk we might face when starting our online business:

1.The risk of losing your main income source.

2.The risk of getting your website hacked
3.The risk of displeasing Google
4.The risk of getting infected with malware
5.The risk of getting penalized by a Google algorithm change
6.The risk of losing traffic slowly but surely
7.The risk of downtime
8.The risk of not earning money
9.The risk of crappy web host
The risk of getting your website copied and contents plagiarized