UNIT 2 Entrepreneurship MBA

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UNIT 2

Entrepreneurship


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Role of women as an Entrepreneurs: 1) Imaginative: It refers to the imaginative approach or original

ideas with competitive market. Well-planned approach is needed toexamine the existing situation and to identify the entrepreneurialopportunities. It further implies that women entrepreneurs haveassociation with knowledgeable people and contracting the rightorganization offering support and services.

2) Attribute to work hard: Enterprising women have further ability

to work hard. The imaginative ideas have to come to a fair play.Hard work is needed to build up an enterprise..

3) Persistence:Women entrepreneurs must have an intention tofulfill their dreams. They have to make a dream transferred into anidea enterprise; Studies show that successful women work hard.

4) Ability and desire to take riskthe desire refers to the willingnessto take risk and ability to the proficiency in planning makingforecast estimates and calculations.

5) Profit earning capacity: she should have a capacity to getmaximum return out of invested capital.


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Leadership Qualities

Some of the outstanding qualities of women entrepreneurs are as follows:

Accept challenges

Ambitious

Drive Enthusiastic

Hard work

Patience

Industrious

Motivator

Skillful

Adventurous

Conscious

Educated

Determination to excel

Keenness to learn and imbibe new ideas

Experienced Intelligent

Perseverance

Studious


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How to Develop Women Entrepreneurs?

Right efforts on from all areas are required in the development of womenentrepreneurs and their greater participation in the entrepreneurial activities.Following efforts can be taken into account for effective development of womenentrepreneurs.

Consider women as specific target group for all developmental programmes.

Better educational facilities and schemes should be extended to women folk fromgovernment part.

Adequate training programme on management skills to be provided to womencommunity.

Encourage womens participation in decision-making.

Vocational training to be extended to women community that enables them tounderstand the production process and production management.

Skill development to be done in womens polytechnics and industrial traininginstitutes. Skills are put to work in training-cum-production workshops.

Training on professional competence and leadership skill to be extended to womenentrepreneurs.

Training and counseling on a large scale of existing women entrepreneurs to

remove psychological causes like lack of self-confidence and fear of success. Counseling through the aid of committed NGOs, psychologists, managerial experts

and technical personnel should be provided to existing and emerging womenentrepreneurs.

Continuous monitoring and improvement of training programmes.

Activities in which women are trained should focus on their marketability andprofitability.


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Making provision of marketing and sales

assistance from government part.

To encourage more passive womenentrepreneurs the Women training programme

should be organized that taught to recognize her

own psychological needs and express them.

State finance corporations and financing

institutions should permit by statute to extend

purely trade related finance to women

entrepreneurs. Womens development corporations have to gain

access to open-ended financing.


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The financial institutions should provide more working capitalassistance both for small scale venture and large scale ventures.

Making provision of micro credit system and enterprise creditsystem to the women entrepreneurs at local level.

Repeated gender sensitization programmes should be held to trainfinanciers to treat women with dignity and respect as persons intheir own right.

Infrastructure, in the form of industrial plots and sheds, to set upindustries is to be provided by state run agencies.

Industrial estates could also provide marketing outlets for thedisplay and sale of products made by women.

A Women Entrepreneurs Guidance Cell set up to handle thevarious problems of women entrepreneurs all over the state.

District Industries Centre's and Single Window Agencies shouldmake use of assisting women in their trade and business guidance.

Programmes for encouraging entrepreneurship among women areto be extended at local level.


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Training in entrepreneurial attitudes should

start at the high school level through well-

designed courses, which build confidencethrough behavioral games.

More governmental schemes to motivate

women entrepreneurs to engage in small scaleand large-scale business ventures.

Involvement of Non Governmental

Organizations in women entrepreneurial

training programmes and counseling.


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Criteria to Select a Product


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Starting a business is like jumping out of an

airplane without a parachute. In mid air the

entrepreneur begins building a parachute andhope it opens before hitting the ground.

Rich Dad.

5 Reasons Why You Must Conduct Feasibility Study


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5 Reasons Why You Must Conduct Feasibility Study

Before Starting a business 1. A feasibility study will help you to determine the profitability of

the business venture. Before starting a business, seasoned entrepreneurs

and investors would want to know if the business would be worth theirtime, effort and resources. It is worthwhile to know that manyentrepreneurs have abandoned solid business ideas because theprofitability could not be ascertained on conducting a feasibility study onthe business idea.

2. A feasibility study will help prove to the entrepreneur, venturecapitalists, lenders and investors the existence of the market, the liquidityof the business venture and the expected return on investment.

3. A feasibility study will help you identify the flaws, businesschallenges, strengths, weaknesses, opportunities, threats and unforeseencircumstances that might affect the success and sustainability of thebusiness venture. Just like the case of my dads business, the businessfailure and loss of money would have been avoided if we had carried out a

feasibility study. We simply jumped in based on someonesrecommendations because we were flushed with cash and we paid dearlyfor it.

4 B f t ti b i f ibilit t d


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4. Before starting a business, a feasibility studywill enable you estimate the financial, human andtechnological resources that will be needed to ensurethe successful launching of the business. Feasibility

study helps to reveal the number and level of skill orunskilled workers to be employed and their salaryscale.

5. Feasibility study will help you to determine the

amount of capital required to start the business. It willalso help you in establishing the budget plan, workingcapital and cash flow projections of the business.

As a last note, my advice to you is this:

Never invest a dime without first carrying out

feasibility study on the business idea.


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Scope

Small entrepreneurs cover a wide range of

business activities. The range of products

manufactured by small-scale industries is very

wide from baskets to precision electronic andoptical instruments.


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(1) Manufacturing Industries:

This type of small entrepreneurs is involved in producingcomplete articles used for direct consumption and also for

processing industries: (2) Village and Cottage Industries:

Village and cottage industries are industries which arecarried on in homes of workers which we have designatedas cottage industries.

(3) Handlooms and Handicrafts: These industries cover artisans, skilled craftsmen and

technicians who can work in their own houses if their workrequires less than 300 square feet space, less than 2 kWpower less than 5 workers and no pollution is caused.

Handicrafts, toys, dolls, small plastic and paper products,electronic and electrical gadgets are some examples ofthese industries.

(4) Modern Small Entrepreneurs:


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(4) Modern Small Entrepreneurs:

These industries are :

(a) Small Entrepreneurs:

According to Government of India, 2000, small scale industry is an

undertaking having an investment in plant and machinery of not morethan Rs. 1 corer.

(b) Ancillary Industries:

These are industrial undertakings having fixed investment in plant andmachinery not exceeding Rs. 75 lakes (Government of India, 1991)engaged in

(i)the manufacture of parts components, sub-assemblies, tooling orintermediaries, or

(ii)the rendering of services supplying 30% of their production or services,as the case may be, to other units for production of other articles

(iii)Tiny Units: This refers to undertakings having fixed investment in plantand machinery not exceeding Rs. 5 lakes. These also include undertakings

providing services such as laundry, zeroing, repairs and maintenance ofcustomer equipment and machinery, hatching and poultry etc.

II) Trading Industries:


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II) Trading Industries:

These types of small entrepreneurs are engaged in sale andpurchase or exchange of goods and services. These industries act asmiddlemen between producers and consumers. This type of units

includes wholesaler, retailer and commission agents. (III) Service Industries:

These small entrepreneurs establishments are engaged in personalor household services in rural areas and towns with population notexceeding 5 lakes and having fixed investment in plant andmachinery not exceeding Rs. 2 lakes. These industries include:

(a)Professional services e.g. services of law, accounting medicine,consultancy etc.

(b)Commercial services e.g. transport, constructing warehousing,real estate, repair shops etc.

(c)Personal services e.g. fashion shops, dry cleaning restaurants,

etc.


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ROLE OF SMALL BUSINESS IN NATIONAL

ECONOMY 1. EmploymentGeneration: The SSI sector in India is the second largest manpower employer in the country next only to the agriculture sector. India is

characterized by abundant labour supply and is plagued by unemployment and

underemployment. Under these circumstances the small-scale sector is a boon

.For every Rs.0.1million of investment, the small-scale sector provides jobs to

26 people as compared to 4 jobs created in the large-scale sector.

2. Low Initial Capital Investment: Another feature of the Indian economy and most of the developing economies is the scarcity of capital. The modern largescale

sector requires colossal investments whereas the small sector is just the

opposite. Not only is the employment capital ratio high for the SSI but the

output capital ratio is also high.

3. Balanced Regional Development: Dispersion of small business in all parts of

the country helps in removing regional imbalances by promoting decentralized development of industries. It helps in industrialization of rural

and backward areas. It also helps to reduce problems of congestion, pollution,

housing, sanitation etc.

4. Equitable Distribution of Income: This is a natural corollary of the above.


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When entrepreneurial talent is tapped in different regions and areas the

income is also distributed instead of being concentrated in the hands of a few

individuals or business families.

5. Promotes Inter- Sectoral Linkages: SSI units are supplementary and

complementary to large and medium scale units as ancillary units. Many small units produce sub-parts, assemblies, components and accessories for the large

scale sector especially in the electronic and automotive sectors.

6. Exports: The most significant contribution of the SSI has been in the field of

exports. There has been a significant increase in the exports from this sector

of both traditional and non-traditional goods including jewellery, garments,

leather, hand tools, engineering goods, soft ware etc. 7. Development of Entrepreneurship: Small business taps the latent potential

available locally. This way they facilitate the spirit of enterprise, which results

in overall growth, and development of all the regions /sectors of the nation

SSI Registration


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SSI Registration Small Scale and ancillary units (i.e. undertaking with investment in

plant and machinery of less than Rs. 10 million) should seek

registration with the Director of Industries of the concerned StateGovernment

Registering your SSI Unit

The main purpose of Registration is to maintain statistics andmaintain a roll of such units for the purposes of providing incentivesand support services.

States have generally adopted the uniform registration proceduresas per the guidelines. However, there may be some modificationsdone by States. It must be noted that small industries is basically astate subject. States use the same registration scheme forimplementing their own policies. It is possible that some states may

have a 'SIDO registration scheme' and a 'State registration scheme'.

Benefits of Registering


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g g

The registration scheme has no statutory basis. Units would normally getregistered to avail some benefits, incentives or support given either by theCentral or State Govt. The regime of incentives offered by the Centregenerally contains the following:

- Credit prescription (Priority sector lending), differential rates of interestetc.- Excise Exemption Scheme- Exemption under Direct Tax Laws.- Statutory support such as reservation and the Interest on DelayedPayments Act.

(It is to be noted that the Banking Laws, Excise Law and the Direct TaxesLaw have incorporated the word SSI in their exemption notifications.Though in many cases they may define it differently. However, generallythe registration certificate issued by the registering authority is seen asproof of being SSI).

States/UTs have their own package of facilities and incentives for small

scale. They relate to development of industrial estates, tax subsidies,power tariff subsidies, capital investment subsidies and other support.Both the Centre and the State, whether under law or otherwise, targettheir incentives and support packages generally to units registered withthem.

Objectives of the Registration Scheme


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Objectives of the Registration Scheme

They are summarised as follows:

To enumerate and maintain a roll of small industries to which the package ofincentives and support are targeted.

To provide a certificate enabling the units to avail statutory benefits mainly in

terms of protection. To serve the purpose of collection of statistics.

To create nodal centres at the Centre, State and District levels to promote SSI.

Features of the Scheme

Features of the scheme are as follows:

DIC is the primary registering centre

Registration is voluntary and not compulsory.

Two types of registration is done in all States. First a provisional registrationcertificate is given. And after commencement of production, a permanentregistration certificate is given.

PRC is normally valid for 5 years and permanent registration is given in perpetuity.


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Provisional Registration Certificate (PRC)

This is given for the pre-operative period and enables the units toobtain the term loans and working capital from financial

institutions/banks under priority sector lending. Obtain facilities for accommodation, land, other approvals etc.

Obtain various necessary NOCs and clearances from regulatorybodies such as Pollution Control Board, Labour Regulations etc.

Permanent Registration Certificate

Enables the unit to get the following incentives/concessions:

Income-Tax exemption and Sales Tax exemption as per State Govt.Policy.

Incentives and concessions in power tariff etc.

Price and purchase preference for goods produced.

Availability of raw material depending on existing policy.

Permanent registration of tiny units should be renewed after 5years.

Procedure for Registration


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Features of the present procedures are as follows:

A unit can apply for PRC for any item that does not require industrial license which means itemslisted in Schedule-III and items not listed in Schedule-I or Schedule-II of the licencing ExemptionNotification. Units employing less than 50/100 workers with/without power can apply forregistration even for those items included in Schedule-II.

Unit applies for PRC in prescribed application form. No field enquiry is done and PRC is issued.

PRC is valid for five years. If the entrepreneur is unable to set up the unit in this period, he canapply afresh at the end of five years period.

Once the unit commences production, it has to apply for permanent registration on the prescribedform.

The following form basis of evaluation:

The unit has obtained all necessary clearances whether statutory or administrative. e.g. drug

license under drug control order, NOC from Pollution Control Board, if required etc. Unit does not violate any locational restrictions in force, at the time of evaluation.

Value of plant and machinery is within prescribed limits.

Unit is not owned, controlled or subsidiary of any other industrial undertaking as per notification.

De-Registration

A Small Scale Unit can violate the regulations in the following ways which will make it liable for de-registration:

It crosses the investment limits. It starts manufacturing any new item or items that require an industrial license or other kind of

statutory license.

It does not satisfy the condition of being owned, controlled or being a subsidiary of any otherindustrial undertaking.


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UNIT 2 Entrepreneurship MBA

Documents

entrepreneurship mba

successful women

role of women

enterprising women

women community

women folk fromgovernment

vocational training

abilityto work