ENTREPRENEURSHIP

ENTREPRENEURSHIP
• ENTREPRENEURSHIP CAN BE DEFINED AS THE
PROPENSITY OF MIND TO TAKE CALCULATED RISKS
WITH CONFIDENCE TO ACHIEVE A PRE DETERMINED
BUSINESS OR INDUSTRIAL OBJECTIVES.
• THE WORD “ ENTREPRENEURSHIP” TYPICALLY
MEANS TO UNDERTAKE.
• IN INDIA, THE DEFINITION OF “ AN ENTREPRENEUR
BEING THE ONE WHO UNDERTAKES TO ORGANISE,
OWN AND RUN A BUSINESS ”
 ENTREPRENEURSHIP
• “ ENTREPRENEURSHIP IS ESSENTIALLY A CREATIVE
ACTIVITY OR IT IS AN INNOVATION FUNCTION. THE
PROCESS OF INNOVATION MAY BE IN THE FORM OF
• 1) INTRODUCTION OF A NEW PRODUCT
• 2) USE OF A NEW METHOD OF PRODUCTION
• 3) OPENING OF A NEW MARKET
• 4) THE CONQUEST OF NEW SOURCE OF
• SUPPLYING RAW MATERIAL
• 5) A NEW FORM OF ORGANISATION.” JOSEPH A .
SCHUMPETER
 ENTREPRENEURSHIP
• “ ENTREPRENEURSHIP IS NEITHER A SCIENCE NOR AN ART. IT
IS PRACTICE. IT HAS A KNOWLEDGE BASE. KNOWLEDGE IN
ENTREPRENEURSHIP IS A MEANS TO AN END. INDEED, WHAT
CONSTITUTES KNOWLEDGE IN PRACTICE IS LARGELY DEFINED
BY THE ENDS, THAT IS, BY THE PRACTICE.” PETER F .DRUCKER
• “ ENTREPRENEURSHIP IS THE PURPOSEFUL ACTIVITY OF AN
INDIVIDUAL OR A GROUP OF ASSOCIATED INDIVIDUALS,
UNDERTAKEN TO INITIATE, MAINTAIN OR ORGANISE A
PPROFIT ORIENTED BUSINESS UNIT FOR THE PRODUCTION OR
DISTRIBUTION OF ECONOMIC GOODS AND SERVICES ”.
A.H.COLE
• “ ENTREPRENEURSHIP IS THE FORM OF SOCIAL DECISION
MAKING WHICH IS PERFORMED BY ECONOMIC INNOVATORS.”
ROBERT K. LAMB
 IMPORTANCE OF ENTREPRENEURSHIP

• Government
• Taxes and duties
• Public
• Job opportunities
• Consumers
• Availability of products
• Banks and financial institutions
• interest
 TYPES OF BUSINESS
• MANUFACTURING AND MARKETING
– CONSUMER GOODS MANUFACTURING TO CONSUMER MARKET
• CONVENIENCE GOODS
• SHOPPING GOODS
• SPECIALITY GOODS
• UN SOUGHT GOODS
– INDUSTRIAL GOODS MANUFACTURING TO INDUSTRIAL MARKET
• INSTALLATIONS
• FABRICATED MATERIALS, COMPONENTS, ETC
• MATERIALS, PARTS, ETC
• OPERATING SUPPLIES
– INFRA STRUCTURE CONSTRUCTION, PROJECTS, ETC
– CONSUMER GOODS AND INDUSTRAIL GOODS TO GOVERNMENT MARKET
– CONSUMER GOODS AND INDUSTRIAL GOODS TO EXPORT MARKET
– CONSUMER GOODS AND INDUSTRIAL GOODS TO INSTITUTIONAL MARKET
 TYPES OF BUSINESS
• SERVICES MARKETING
– SERVICES TO CONSUMER MARKET
• ENTERTAINMENT
• EDUCATION
• ESSENTIAL
• BUSINESS
• TRANSPORTATION,ETC
– SERVICES TO INDUSTRIAL MARKET
• CONSULTANCY
• BUSINESS
• MAINTENANCE
• B to B
– INFRA STRUCTURE CONSTRUCTION, PROJECTS, ETC
– SERVICES TO GOVERNMENT MARKET
– SERVICES TO EXPORT MARKET
– SERVICES TO INSTITUTIONAL MARKET
 TYPES OF BUSINESS
• MARKETING OF GOODS
– MERCHANT MIDDLEMEN
– WHOLESALERS
– RETAILERS
– DEALERS
– MERCHANDISERS
• AGENT MIDDLEMEN
– BROKERS
– AGENTS
– GUARENTORS
• SEVICE PROVIDERS
– MOVING THE GOODS - TRANSPORTERS
– MOVING THE TITLE – LEGAL ADVISORS, COURIER, ETC
– MOVING THE MONEY – BANKS
– MOVING IDEAS – CONSULTANTS
YOU CAN TAKE UP BUSINESS TO CATER TO 1) CONSUMER MARKET 2) INDUSTRIAL MARKET 3)
GOVERNMENT MARKET 4) INSTITUTIONAL MARKET 5) EXPORT MARKET
 TYPES OF BUSINESS
• MARKETING OF SERVICES
– SERVICES OF END USER MARKET
• INSURANCE PRODUCTS
– SERVICES TO INDUSTRIAL MARKET
• MAINTENANCE OF MACHINES , OFFICE PREMISES, ETC
 STEPS IN STARTING A SMALL SCALE
INDUSTRY
• 1) Project Identification
• 2) Company name selection
• 3) Registered office Address
• 4) SSI registration ( Provisional )
– District Industries Centre / Industries and Commerce
• 5) Appointment of Auditors, Bankers
• 6) Constitution of the company
– Proprietor concern
– Partnership firm ( Register of Firms )
– Private Limited company ( Department of Company affairs )
– Public Limited company ( OTCEI )Over the Trade Counter Exchange of
India.
 contd
• 7) Licenses ( to obtain the incentives given by
the Government organisations )
– Sales Tax number ( provisional ) / Service Tax number
– Excise Duty ( provisional )
– Specific industry license ( provisional ) example –
Drugs and Pharmaceuticals
– Chennai Corporation License
– Tamil nadu Pollution control Board
– Other necessary licenses
 contd
8) Appointment of Consultants / Research by Self
- Project Report preparation
- Market Research – Demand Assessment, Marketing strategy,
Market Tie up arrangement, etc.
a) Research on Technical Aspects – Technology selection, supplier
selection, Raw material Tie up, etc.
b) Research on Financial Aspects – obtaining loan, public issue,
etc.
c) Government approvals
d) Recruitment and Training
e) All the above
 contd
• Turn key consultancy
– Right from the Project Identification till Trial
Production and Training of Man Power.
 contd
• 9) Site Location / Shed Location ( Govern
– TANSIDCO
– SIPCOT
– TACID ( Tamilnadu Corporation for Infra structural
Development )
– MMDA
• 10) Agreement with SIDCO
• 11) Electricity connection ( Temporary )
• 12) Release of Advertisement for Appointment of Key
Personnel
 contd
• 13) Application form from the Financial Institutions
for availing Term Loan from SIPCOT, TIIC, BANKS, etc.

– Shed agreement
– Copy of the Partnership deed
– Resume and Net worth of the Promoters
– Quotation from the Machinery suppliers with competition
quotations.
– Chartered Engineer’s quotation
– Chartered Accountant’s quotation
 contd
– Market Tie up letters
• Export order
• Sub contracting unit
• Government order
• Institutional order
• Ancillary unit status
• Appointment of Distributors
• 14) Raw materials Tie up letter
– Registration with TANSIDCO
– Registration with NSIC
• 15) Quotation from Accessories suppliers
• 16) Working capital requirement Tie up with the Banks
 contd
• 17) Justification for the Cost of the Project
– Building Agreement cost
– Contingency Provision
– Preliminary and Pre operative expenses
– Miscellaneous Fixed Assets
– Working capital requirement
• 18) Proof for the proposed Means of Finance
– Promoter’s capital
– Term loan
– Investment subsidy
• 19) Projected Cost of Production and Profitability statement
• 20) Profitability estimates
• 21) Financial Norms
 contd
• Placing Order with the Machinery suppliers for
machines to be purchased
• Appointment of the Distribution channel through
Advertisement
• Receipt of the machinery
• Installation of the machines
• Trial Production
• Appointment of employees on Temporary basis
• Over coming the Teething problem