Business Opportunities

In Shimoga
 Contents
• Introduction
• Meaning of Business
• Types of Business
• Scope of Business
• Meaning of Employment
• Education
• Advantages & Disadvantages
• Basic forms of ownership
• Business Environment
• Opportunities of business
• Conclusion
 Introduction
Shimoga :(Kannada: ಶಿವಮೊಗ್ಗ , is a city located in Shimoga
district in the central part of the state of Karnataka, India.
It lies on the banks of the Tunga River and is the
administrative headquarters of the district.
Shimoga is located 13°55′18″N, 75°34′12″E.
According to the Shimoga City Municipal Corporation., the
city has a total area of about 50 km² (19.31 square miles)
The climate of Shimoga is tropical wet and dry summer
average temperature 20 -35 Degree Centegrade.
Population: 1,642,545 (2007)

Main Occupation: Agriculture, especially the cultivation of

Arecanut & Rice.

Shimoga is known as cultural capital of Karnataka.

It’s a modern, progressive city with strong cultural roots and
warm hearted people.
Near by locations:
• Agumbe 90 km south-west, is unforgettable for its glorious
sunset.
• Jog Falls are a spectacular series of waterfalls, located 105 km
away from Shimoga. The Sharavathi River takes a spectacular
jump from a height of 292 m in four distinct falls to form the
highest waterfalls in India. The best time to visit these falls is
soon after the monsoon season during July and August.
• Kodachadri is a beautiful hill station in the Western Ghats. It is
120 km from Shimoga.
• Gajanur lies 15 km to the southwest. The dam built across the
Tunga River here is ideal for picnics.
• Koodli lies 15 km and is the place where the Tunga and Bhadra
river meet and flow together as Tungabhadra.
• Lion Safari lies 12 km on the way to Sagara. Forest department
will take for safari ride in the vehicle to spot the wild animals.
• B R P Dam is 28 km from the city on the way to Lakkavalli.
This is the dam built on the Bhadra river with a maximum
height of 186 feet (57 m).
 Business
Business means economic activity
the state of being busy. In this sense, any with which a man keeps
himself busy can be regarded as business.
In general,
business is identified with exchange of goods and services.
In this sense, business refers to mere trading (i.e buying and
selling of goods).
In its practical sense, business refers to all those economic
activities which are concerned with the production or purchase
of goods and services for the purpose of sale at a profit.

The term "business"

has at least three usages, depending on the scope — the
singular usage (above) to mean a particular company or
corporation, the generalized usage to refer to a particular
market sector, such as "the music business" and compound
forms such as agribusiness, or the broadest meaning to include
all activity by the community of suppliers of goods and services.
 Types of business
• Agriculture related
• Industry Component, Textiles
• Service
 Arecanut
• The areca nut is not a true nut but rather a drupe. It is commercially
available in dried, cured and fresh forms. While fresh, the husk is green
and the nut inside is so soft that it can easily be cut with an average
knife. In the ripe fruit the husk becomes yellow or orange and, as it dries,
the fruit inside hardens to a wood-like consistency. At that stage the
areca nut can only be sliced using a special scissor-like cutter.
• In Karnataka among the 27 districts, Shimoga district stands first in area
under areca cultivation more than 20,000 hectares in 2002. In addition to
this, Shimoga district recorded the highest increase in area under
Arecanut cultivation in the last decade (1990-91 to 2000-01) as
compared to other districts. Apart from this Shimoga district comprises
both traditional and non-traditional areas of Arecanut cultivation as
compared to other districts. Further Shimoga district very well represents
all the stages of Areca Gardens (first, second and third stages) as
compared to other districts. 
• It has been brought out that Arecanut is highly remunerative crop in the
entire study area and in both the taluks and this was the reason behind
rapid area expansion of areca cultivation of both taluks. Namely Sagar
and Shimoga despite the high establishment cost in the first stage of the
Arecanut Garden."
 Rice
• Economy of Shimoga district is mostly dependant on agriculture.
Agriculture, including animal husbandry, has been the major contributing
sector in the income of the district. The Sahyadri ranges, part of the
Western Ghats mountain range, feed the rivers round the year, and
inundate the fertile alluvial soil. This makes Shimoga district the bread
basket of Karnataka. Shimoga district happens to be granary of paddy in
Karnataka, and it is also known as the `rice bowl` of the state. Of the total
area of the district, 214.23 hectares is the net sown area. The major
crops grown here are paddy, coconut, ragi, pepper, areca, sugarcane,
maize, oilseeds, fruits, cotton, cashewnut, chillies and ginger. The net
irrigated area is127.70 hectares.
 INDUSTRIAL SCENARIO
•
Shimoga district has as on 31.3.2000,
9779 no. of units with an investment
of Rs.11715.90 lakhs, employing
41000 persons. Agro based industries
and Automobile based industries and
the Engineering based industries are
the prominent ones in the district.  The
average investment per unit is about
Rs.1.30 lakhs and the employment per
unit on an average is 4 persons. So
far, the investment made is maximum
under the food and beverages sector
followed by the general
Engineering/mechanical products.
Likewise, the employment provided is
also maximum from Food & Beverages
sector followed by General
Engineering/ mechanical sector.
 Scope of business
1. Production
Processes and methods employed in
transformation of tangible inputs (raw materials,
semi-finished goods, or subassemblies) and
intangible inputs (ideas, information, know how)
into goods or services.
2. Purchase
In order to undertake the production of
goods for sale, a manufacturer has to purchase
raw materials. Similarly, atrader has to purchase
finished goods for sale. So, purchase of goods,
either raw materials or finished goods, is one of
the activities of business.
3.Sale
A manufacture sells the goods manufactured by
him,and a trader sells the goods purchased by him.
So, sale is one of the principal activities of business.
4. Storing
Generally, there is a time gap between
production and sale, or between purchase and sale.
So, there arises the need for storing the goods
produced or purchased till the time of sale. That
means, storing is one of the important activities of
production.
5. Transportation
The materials required for production are
required to be transported form the sources of supply
to the places of production. Similarly, the finished
goods purchased for sale are required to be
transported from the places of purchase to the places
of sale. So also, the goods sold are required to be
transported from the places of sale to the places of
consumers. All these involves transportation.
6.Advertising
It is a form of communication intended to
persuade an audience (viewers, readers or listeners)
to purchase or take some action upon products,
ideals, or services. It includes the name of a product
or service and how that product or service could
benefit the consumer, to persuade a target market to
purchase or to consume that particular brand.
7. Banking & Financing
All production and trading activities require
finance or money.But a businessman may not always
be able to provide the funds or finance required for his
business. So, he has to raise the required finance
from banks and other financial institutions. That
means,banking and financing, which assures finance
to the business, is an important activity of business.
8. Insurance
Business involve risks. For instance, the goods
stored in the godown may be destroyed by fire or may
be stolen. A wise businessman tries to cover those
risks through insurance. So insurance is an important
activity of business.
9.Agency or Middlemanship
Business involves connections between
businessmen, say between the producer and the
distributor, between the seller and the buyer, between
the lender and the borrower, etc
IT/ITeS Opportunity
• Karnataka has been the forerunner in the IT/ITeS
space owing to an appropriate ecosystem for
knowledge driven industries including proactive
government, sector friendly policy and large pool
of skilled manpower
• Bengaluru is among the five largest technology hubs
in the world
• Karnataka’s share in national exports more than 35%,
IT/ITeS export growth rate at about 30%.
Automobile & Auto Components Industry
Vibrant auto industry with investments of
over US$ 713 million and annual turnover
of US$489 million
Of the total 201 listed auto ancillary firms in India,
10 are based in Karnataka
In 2003-04, revenues from the state’s auto sector
stood at about US $ 604 million
State Government has set up many Auto Parks
at Bidadi, Bengaluru, Shimoga, Dharwar housing
automobile ancillary and servicing units
BUSINESS OPPORTUNITIES
Karnatatka • October 2007
 EMPLOYMENT

Employment is a contract between two parties,

one being the employer and the other being
the employee. An employee may be defined
as: "A person in the service of another under
any contract of hire, express or implied, oral or
written, where the employer has the power or
right to control and direct the employee in the
material details of how the
work is to be performed
 EDUCATION
• Shimoga is an important center for high school and Pre-University education
(classes 11th and 12th) in Karnataka, along with many other major cities in
Karnataka. At present, notable institutes in Shimoga for Pre-University
Education are Sri Aurobindo pre University(Ind.)college, PACE Ultramodern
PU College, Vidya Bharathi PU College, D.V.S Institutes, National College,
Sacred heart, Adichunchangiri P.U. College and DVS PU Independent
college, DVS Composite college.The city gains its importance in part
because of lack of good institutes in other parts of the district, whereby
students are forced to study their pre-university education in the city. The
village of Gajanur hosts a Jawahar Navodaya Vidyalaya, or central school,
which is a boarding school. Kuvempu University is located in Shimoga at
Shankarghatta.
• Shimoga also has Engineering Colleges like
Jawaharlal Nehru College of Engineering run by the National Education
Society (NES) and PES Institute of Technology and Management. Shimoga
Institute of Medical Sciences and Sharavathi Dental College also operate
from Shimoga. Sahyadri Science College is one of the oldest in Karnataka
 Advantages:
1. Creativity can play a big part in starting and operating the
business.

2. There are no predetermined formulas or rules to follow; much

less restrictive than a franchise or business opportunity
purchase.

3. The owner is in control of all aspects of the business, including

the location and what the operation is to look like.

4. The entrepreneur may draw from previous job experience,

skills, and passion in establishing the business.
 Disadvantages

1. Start-up businesses are typically more costly and risky

since there is no proven formula.

2. In order to obtain capital to fund the business, a

lengthy detailed business plan must be put together.

3. All of the details of starting the business, including

licenses, marketing, naming the business, finding
product sources, etc. are the responsibility of the
owner
 Basic forms of ownership
• Sole proprietorship: A sole proprietorship is a business owned by one
person. The owner may operate on his or her own or may employ others.
The owner of the business has unlimited liability of the debts incurred by
the business.
• Partnership: A form of business owned by two or more people. In most
forms of partnerships, each partner has unlimited liability of the debts
incurred by the business. There are three typical classifications of
partnerships: general partnerships, limited partnerships, and
limited liability partnerships.
• Corporation: A limited liability entity that has a separate legal personality
from its members. Corporations can be either privately-owned or
government-owned, and can be organized as either for-profit or not-for-
profit. A privately-owned cooperation is owned by private individuals
while a public cooperation is owned by multiple shareholders and is
overseen by a board of directors, which hires the business's managerial
staff.
• Cooperative: Often referred to as a "co-op", a cooperative is a limited
liability entity that can organize for-profit or not-for-profit. A for-profit
cooperative differs from a for-profit corporation in that it has members, as
opposed to shareholders, who share decision-making authority.
Cooperatives are typically classified as either consumer cooperatives or
worker cooperatives. Cooperatives are fundamental to the ideology of
economic democracy.
Business environment
Climatic condition
Market condition

Labour position
Power supply
Capital investment
Water supply
Transport
 Which business we can improve in shimoga?

Movie Theatre

Hotels

Park like Lalgah

Shopping Complex like Mahals

IT/ITes like Wipro, Infosys

Industries like Electronic,Automobile

Etc…………………………………………
 Conclusion
• Business is at its best when it has clear goals and practical targets. These
give us a framework for entrepreneurial opportunities, long-term planning
and partnership possibilities.

• So we are rolling up our sleeves to help make it happen.

• We need to make sustainable development happen by generating

economic growth with greater resource efficiency, minimizing
environmental impacts and with maximum social well being for more
people.

• We also welcome the growing realization that business is an

indispensable part of the solution to the problems of the world.

• We have improved our relationships with governments, NGOs and others.

Together we will turn the idea of sustainable development through
practical partnerships into a growing reality on the ground.

• As we move forward the view of business could be summarized in the

words of Elvis Presley:
“A little less conversation
a little more action”