Promotion of a Venture

Setting up a Business Enterprise

• Setting up a new business is not an easy job
• The entrepreneur conceives the business idea,
faces various difficulties in creating a new
enterprise and bring it upon a successful
venture.
• The ultimate success of a business depends
upon the entrepreneur’s skills to handle various
problems in starting a new enterprise and then
make it a going concern.
 Basic Considerations in Setting up a New
Business Unit
• Selection of Line of Business
• Choice of Form of ownership
• Size of the business
• Financing the proposition
• Location of Business
• Machines and Equipments
• Plant Layout
• Human Resources
• Procedural Formalities
• Tax Planning
• Launching the Business Enterprise
 Requisites of success in Business
• Clear Cut Objectives
• Location, Layout and Size
• Effective Business Planning
• Sound Organisation
• Financial Planning
• Efficient Marketing
• Dynamic Management
• Human Relations
• Research and Innovation
Steps in setting up a new Business Unit

• Scanning the environment for identification of

business opportunity
• Development of Product/Service idea
• Assessment of feasibility of the idea
• Preparation of Business Plan
• Appraisal by Funding Agency
• Resource Mobilization
• Project commissioning and launch
 Enterprise Process Model
There are two phases in the entrepreneurial
process
• Spotting an Opportunity – This phase is
related to finding out potential opportunities.
• Championing a project – This phase involves
practical steps involves in setting up an
enterprise.
 2
Generation of
ideas

1 3
Environment Investigation of
Scanning ideas

6 4
Setting up a Product/Service
project Identification

5
Market Research
and Feasibility
Study
 Identification of Business Opportunity
• An entrepreneurs is an opportunity seeker, so he has to select an
attractive business opportunity and make his unit economically
viable to make his career.
• Business opportunity can be describes as an economic idea
which can be implemented to create a business and earn profits.
• Opportunities does not come to any one by chance, but the
entrepreneurs has to struggle for it.
• Before selecting an opportunity, the entrepreneur has to ensure
two things:
– There is a good market for the product he is going to produce
– The rate of return on the investment is attractive to be accepted by
him..
 Qualities of a Successful Entrepreneur
• Wide Knowledge
• Foresight
• Dynamic Outlook
• Adaptability
• Business Morality and Social Responsibility
• Consistency in Behaviour
• Aptitude for Research
• Self-confidence
• Business Connection and Goodwill
• Winning Personality
 Measures to Support Entrepreneurs

• Incentives and Facilities

– Government’s concessions to the small industries
so that they may compete with the big industries.
– Preference by government departments in the
purchase of items produced by small scale sector
– Incentives in the form of cheaper materials, land
or shed at concessional rates, cheaper finance,
power at concessional rates, etc.
 Measures to Support Entrepreneurs
• Supporting Agencies
– Small Scale Industry Development Organisation (SSIDO) to provide
training and other services to the units in the small scale sector.
– National Small Industries Corporation (NSIC) to supply machinery
on hire purchase basis, to arrange scarce raw material and to
provide marketing facilities.
– District Industry Centres in all districts to serve as the focal point
of development for Small and Cottage Industries
– Khadi and Village Industries Commission (KVIC) for encouraging
the production and marketing of khadi and handicraft items.
– Small Industries Development Bank of India (SIDBI) for providing
financial assistance to small scale industries.
– All India Boards such as Central Silk Board and Coir Board to
provide technical, financial and marketing facilities