A.R.

J COLLEGE OF
ENGINEERING AND
TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna
University, Chennai-25 (An ISO 9001:2015 Certified Institution)

THEORY COURSE FILE

BA4032-ENTREPREURSHIP DEVELOPMENT

ACADEMIC YEAR: 2023-24 (Odd Semester)

CONTENTS

1. Institute V/M; Department V/M/PEO; PO/PSO statements

2. Course Syllabus
3. Course Information Sheet with course objectives, course outcomes, PO/PSO
Mapping, Gaps in Syllabus, Topic beyond syllabus/Contemporary topics, Delivery
methods, etc
4. Model Lesson plan
5. Student’s Name List
6. Time Table
7. Lecture notes (unit wise)
8. Sample PPT print out (Unit wise)
9. Unit wise Question bank
10. University Question papers (Last 3 Years)
11. Internal Question papers with Answer key
12. Assignment (Minimum 3 with Multiple Topics)
13. Gaps & plans for Add on Programs (Plan and Schedule)
14. Result Analysis, Remedial/Corrective action
15. Topics beyond syllabus-References
16. Course Outcomes Assessment
17. Logbook

Prepared By

Ms.M.KOWSALYA,
Assistant Professor / MBA
 A.R.J COLLEGE OF ENGINEERING AND
TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna
University, Chennai-25 (An ISO 9001:2015 Certified Institution)

COLLEGE VISION AND MISSION STATEMENT

VISION

This institution is destined to build up excellence among the students of rural areas but fostering
a stimulating learning environment and thereby establishing a unique identity in the emerging
global scenario.

MISSION

The objective is to develop nature and practice innovative entrepreneurial abilities in the thrust
areas of engineering disciplines on par with the best in the world.
 A.R.J COLLEGE OF ENGINEERING
AND TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna
University, Chennai-25 (An ISO 9001:2015 Certified Institution)

MASTER OF BUSINESS ADMINISTRATION

VISION

 To emerge as one of the most preferred management institutes in india and abroad to produce
seasoned business leaders.

MISSION

 To provide quality management education to young aspiring management students by

continuously improving the teaching learning process with help of the dedicated faculty.
 To create opportunities to the management students to develop their talents creativity and global
competence.
 To promote research and development in management by the staff and student for the benefit of
the society.

PROGRAM EDUCATIONAL OBJECTIVES (PEO)

MBA programme curriculum is designed to prepare the post graduate students

 To have a thorough understanding of the core aspects of the business.

 To provide the learners with the management tools to identify, analyze and create business
opportunities as well as solve business problems.
 To prepare them to have a holistic approach towards management functions.
 To inspire and make them practice ethical standards in business.
 A.R.J COLLEGE OF ENGINEERING AND
TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna
University, Chennai-25 (An ISO 9001:2015 Certified Institution)

PROGRAM OUTCOMES (PO)

On successful completion of the programme,

1. Ability to apply the business acumen gained in practice.

2. Ability to understand and solve managerial issues.
3. Ability to communicate and negotiate effectively, to achieve organizational
and individual goals.
4. Ability to understand one’s own ability to set achievable targets and complete them.
5. Ability to fulfill social outreach
6. Ability to take up challenging assignments
 A.R.J COLLEGE OF ENGINEERING
AND TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna
University, Chennai-25 (An ISO 9001:2015 Certified Institution)

BA4032 ENTREPREURSHIP DEVELOPMENT L T P C

3 0 0 3

COURSE OBJECTIVE:
 To equip and develop the learners entrepreneurial skills and qualities essential to undertake business.
 To impart the learners entrepreneurial competencies needed for managing business efficiently and
effectively.

UNIT I ENTREPRENEURAL COMPETENCE 9

Entrepreneurship concept – Entrepreneurship as a Career – Entrepreneurial Personality - Characteristics of
Successful Entrepreneurs – Knowledge and Skills of an Entrepreneur.

UNIT II ENTREPRENEURAL ENVIRONMENT 9

Business Environment - Role of Family and Society - Entrepreneurship Development Training and Other Support
Organisational Services - Central and State Government Industrial Policies and Regulations.

UNIT III BUSINESS PLAN PREPARATION 9

Sources of Product for Business - Prefeasibility Study - Criteria for Selection of Product - Ownership - Capital
Budgeting- Project Profile Preparation - Matching Entrepreneur with the Project - Feasibility Report Preparation
and Evaluation Criteria.

UNIT IV LAUNCHING OF SMALL BUSINESS 9

Finance and Human Resource Mobilisation - Operations Planning - Market and Channel Selection - Growth
Strategies - Product Launching – Incubation, Venture capital, Start-ups.

UNIT V MANAGEMENT OF SMALL BUSINESS 9

Monitoring and Evaluation of Business - Business Sickness - Prevention and Rehabilitation of Business Units - Effective
Management of small Business - Case Studies.

TOTAL: 45PERIODS
 A.R.J COLLEGE OF ENGINEERING AND
TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna University, Chennai-25
(An ISO 9001:2015 Certified Institution)

COURSE OUTCOMES:
After the completion of the course, the students will be able to:
1. The learners will gain entrepreneurial competence to run the business efficiently.
2. The learners are able to undertake businesses in the entrepreneurial environment
3. The learners are capable of preparing business plans and undertake feasible projects.
4. The learners are efficient in launching and develop their business ventures successfully
5. The learners shall monitor the business effectively towards growth and development..

REFERENCES:
1. S.S.Khanka, Entrepreneurial Development, S.Chand and Company Limited, New Delhi, 2016.
2. R.D.Hisrich, Entrepreneurship, Tata McGraw Hill, New Delhi, 2018.
3. Rajeev Roy ,Entrepreneurship, Oxford University Press, 2nd Edition, 2011.
4. Donald F Kuratko,T.V Rao. Entrepreneurship: A South Asian perspective. Cengage Learning, 2012.
5. Dr. Vasant Desai, “Small Scale Industries and Entrepreneurship”, HPH,2006.
6. Arya Kumar. Entrepreneurship, Pearson,2012.
7. Prasanna Chandra, Projects – Planning, Analysis, Selection, Implementation and Reviews, Tata McGraw-Hill, 8 th
edition ,2017.
 A.R.J COLLEGE OF ENGINEERING AND
TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna
University, Chennai-25

(An ISO 9001:2015 Certified Institution)

I YEAR / I SEMESTER COURSE DATA SHEET

PROGRAM : Master of Business Administration DEGREE: MBA

COURSE: ENTREPREURSHIP DEVELOPMENT SEMESTER: 01 CREDITS: 03

COURSE CODE: BA4032 COURSE TYPE: CORE

REGULATION: 2021
COURSE AREA/DOMAIN: ENTREPREURSHIP CONTACT HOURS: 4 hours/Week.
CORRESPONDING LAB COURSE CODE : NO LAB COURSE NAME: NO
SYLLABUS:
UNIT DETAILS HOURS

ENTREPRENEURAL COMPETENCE
Entrepreneurship concept – Entrepreneurship as a Career – Entrepreneurial Personality - Characteristics of
Successful Entrepreneurs – Knowledge and Skills of an Entrepreneur.
I 9

ENTREPRENEURAL ENVIRONMENT
Business Environment - Role of Family and Society - Entrepreneurship Development Training and Other
II Support Organisational Services - Central and State Government Industrial Policies and Regulations. 9

BUSINESS PLAN PREPARATION

III Sources of Product for Business - Prefeasibility Study - Criteria for Selection of Product - Ownership - Capital 9
Budgeting- Project Profile Preparation - Matching Entrepreneur with the Project - Feasibility Report
Preparation and Evaluation Criteria.
UNIT IV LAUNCHING OF SMALL BU

LAUNCHING OF SMALL BUSINESS

IV Finance and Human Resource Mobilisation - Operations Planning - Market and Channel Selection - Growth Strategies - 9
Product Launching – Incubation, Venture capital, Start-ups.

MANAGEMENT OF SMALL BUSINESS

V Monitoring and Evaluation of Business - Business Sickness - Prevention and Rehabilitation of Business Units - 9
Effective Management of small Business - Case Studies.

Total Hours: 45
 A.R.J COLLEGE OF ENGINEERING
AND TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna
University, Chennai-25 (An ISO 9001:2015 Certified Institution)

TEXT/REFERENCE BOOKS:

T/R BOOK TITLE/AUTHORS/PUBLICATION

T1 S.S.Khanka, Entrepreneurial Development, S.Chand and Company Limited, New Delhi, 2016.

R1 R.D.Hisrich, Entrepreneurship, Tata McGraw Hill, New Delhi, 2018.

R2 Rajeev Roy ,Entrepreneurship, Oxford University Press, 2nd Edition, 2011.

R3 Donald F Kuratko,T.V Rao. Entrepreneurship: A South Asian perspective. Cengage Learning, 2012.

R4 Dr. Vasant Desai, “Small Scale Industries and Entrepreneurship”, HPH,2006.

R5 Arya Kumar. Entrepreneurship, Pearson,2012.

R6 Prasanna Chandra, Projects – Planning, Analysis, Selection, Implementation and Reviews, Tata McGraw-
Hill, 8 th edition ,2017.

COURSE PRE-REQUISITES: (If any )

C.CODE COURSE NAME DESCRIPTION SEM

NO 01

COURSE OBJECTIVES:

1  To equip and develop the learners entrepreneurial skills and qualities essential to undertake business.
 To impart the learners entrepreneurial competencies needed for managing business efficiently and
effectively.

COURSE OUTCOMES:

After the completion of the course, the students will be able to:
1.The learners will gain entrepreneurial competence to run the business efficiently.
2.The learners are able to undertake businesses in the entrepreneurial environment
3.The learners are capable of preparing business plans and undertake feasible projects.
4.The learners are efficient in launching and develop their business ventures successfully
5.The learners shall monitor the business effectively towards growth and development..
 A.R.J COLLEGE OF ENGINEERING
AND TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna
University, Chennai-25 (An ISO 9001:2015 Certified Institution)

COURSE OUTCOMES VS POS MAPPING (DETAILED; HIGH:3; MEDIUM:2; LOW:1):

PO/PSO Course Outcome Overall
CO1 CO2 CO3 CO4 CO5 Correlation of
COs with POs
PROGRAMOUTCOMES(PO)
PO1 Core aspects of the business
3 3 3 3 3 3
PO2 Individual and Team work 2 1 2 1 2 2
PO3 Communication 2 2 2 2 2 2
PO4 Holistic approach 1 1 1 1 1 1
PO5 Practice ethical - 1 1 1 1 1
PO6 Project Management and Finance 1 1 1 1 1 1
PROGRAM PECIFIC OUTCOMES (PSO)
PSO1 To introduce the concepts of scarcity and
2 2 1 2 2 2
efficiency;

PSO2 To explain principles of

microeconomics relevant to managing 1 1 1 1 1 1
an organization
PSO3 To describe principles of
macroeconomics 1 1 1 1 1 1

PSO4 To have the understanding of

economic environment of business 1 1 1 1 1 1

PSO5 To study about the policies that

regulate economic variables 1 1 1 1 1 1

GAPS IN THE SYLLABUS - TO MEET INDUSTRY/PROFESSION REQUIREMENTS, POs:

SNO DESCRIPTION PROPOSED ACTIONS
1 ENTREPRENEURSHIP DEVELOPMENT Assignment

PROPOSED ACTIONS: TOPICS BEYOND SYLLABUS / ASSIGNMENT / INDUSTRY VISIT / GUEST

LECTURER / NPTEL ETC.
 A.R.J COLLEGE OF ENGINEERING AND
TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna University, Chennai-
25 (An ISO 9001:2015 Certified Institution)

TOPICS BEYOND SYLLABUS/ADVANCED TOPICS/DESIGN:

1 Brief description of important rocks

WEB SOURCE REFERENCES:

1

DELIVERY/ INSTRUCTIONAL METHODOLOGIES:

 CHALK & ✓ STUD. ☐ WEB RESOURCES ☐ NPTEL/OTHERS
TALK ASSIGNMENT
☐ LCD/  STUD. ☐ ADD-ON ☐ WEBNIARS
SMART SEMINARS COURSES
BOARD
S

ASSESSMENT METHODOLOGIES-DIRECT
✓ ASSIGNMENTS ☐ STUD. SEMINARS ✓ TESTS/MODEL ✓ END SEMESTER
EXAMS EXAMINATION
☐ STUD. LAB ☐ STUD. VIVA ☐ MINI/MAJOR ☐ CERTIFICATIONS
PRACTICES PROJECTS
☐ ADD-ON ☐ OTHERS
COURSES

ASSESSMENT METHODOLOGIES-INDIRECT
✓ ASSESSMENT OF COURSE OUTCOMES ✓ STUDENT FEEDBACK ON FACULTY
(BY FEEDBACK, ONCE
☐ ASSESSMENT OF MINI/MAJOR PROJECTS BY ☐ OTHERS
EXT. EXPERTS

INNOVATIONS IN TEACHING / LEARNING / EVALUATION PROCESSES:

1. Video course for phase relationship and entrepreurship development.

Prepared by Approved by
(Faculty) (HOD)
 A.R.J COLLEGE OF ENGINEERING
ANDTECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna
University, Chennai-25 (An ISO 9001:2015 Certified Institution)

LESSON PLAN

Faculty Name : Ms. M.Kowsalya

Subject Code & Name : BA4032 &ENTREPRENEURSHIP DEVELOPMENT
Year / Semester : I/I
Degree & Branch : Master of Business Administration
Lecture Hours

Unit No. of Hrs Allotted as per syllabus No. of Hrs Planned

Unit - I 9 11
Unit – II 9 11
Unit – III 9 10
Unit – IV 9 10
Unit – V 9 9
Total No. of Hrs 45 51

Objectives:
 To equip and develop the learners entrepreneurial skills and qualities essential to undertake business.
 To impart the learners entrepreneurial competencies needed for managing business efficiently and
effectively.

Sl. Proposed Proposed Actual Actual Delivery Book Referred

No. Date Hours Topic(s) Date Hours Methods

UNIT I - ENTREPRENEURAL COMPETENCE

1. 1 Entrepreneurship concept 1 BB T1

2. 1 Entrepreneurship as a Career 1 PPT T1

3. 1 Entrepreneurial Personality 1 PPT T1

4. 1 Characteristics of Successful Entrepreneurs 1 BB T1,R1

5. 1 Knowledge and Skills of an 1 BB T1,R1

Entrepreneur.
 A.R.J COLLEGE OF ENGINEERING AND
TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna
University, Chennai-25 (An ISO 9001:2015 Certified Institution)

UNIT II - ENTREPRENEURAL ENVIRONMENT

11. 2 Business Environment 2 BB T1

2 Role of Family and Society

12.
13. 2 Entrepreneurship Development Training 2 BB T1

14. 2 Other Support Organisational Services 2 BB T1

15. 2 Central and State Government Industrial 2 BB T1

Policies and Regulations.

UNIT III - BUSINESS PLAN PREPARATION

19. 1 Sources of Product for Business 1 PPT T1

20. 1 Prefeasibility Study 1 PPT T1

21. 1 Criteria for Selection of Product 1 PPT T1,R2

22. 1 Ownership - Capital Budgeting 1 PPT T1

23. 1 Project Profile Preparation 1 PPT T1,R2

24. Matching Entrepreneur with the Project

1 1 PPT T1,R2
Feasibility Report Preparation and
1 1 PPT T1,R2
Evaluation Criteria
 A.R.J COLLEGE OF ENGINEERING
AND TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna University, Chennai-25
(An ISO 9001:2015 Certified Institution)

UNIT IV - LAUNCHING OF SMALL BUSINESS

29. 1 Finance and Human Resource 1 PPT T1
Mobilisation

30. 2 Operations Planning 2 PPT T1

31. 2 Market and Channel Selection 2 PPT T1
32. 1 Growth Strategies 1 PPT T1
33. 1 Product Launching 1 PPT T1,R2
34. 1 Incubation, Venture capital, Start-ups. 1 PPT T1,R2
UNIT V – MANAGEMENT OF SMALL BUSINESS
36. Monitoring and Evaluation of Business
1 1 PPT T1
37. 1 Business Sickness 1 PPT T1
38. Prevention and Rehabilitation of Business
1 Units 1 PPT T1

39. 1 Effective Management of small Business 1 PPT T1,R3

40. Case Studies

2 2 PPT T1

OUTCOMES:
After the completion of the course, the students will be able to:
1.The learners will gain entrepreneurial competence to run the business efficiently.
2.The learners are able to undertake businesses in the entrepreneurial environment
3.The learners are capable of preparing business plans and undertake feasible projects.
4.The learners are efficient in launching and develop their business ventures successfully
5.The learners shall monitor the business effectively towards growth and development..
 A.R.J COLLEGE OF ENGINEERING AND
TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna University, Chennai-
25 (An ISO 9001:2015 Certified Institution)

TEXT BOOKS:
1. Nyle C. Brady, “The Nature and Properties of Soil”, Macmillan
Publishing Company, 10th Edition, New York, 2008.
2. Punmia, B.C., “Soil Mechanics and Foundation “Laxmi Publishers, New Delhi,
2007.

REFERENCES:
1. S.S.Khanka, Entrepreneurial Development, S.Chand and Company Limited, New Delhi, 2016.
2.R.D.Hisrich, Entrepreneurship, Tata McGraw Hill, New Delhi, 2018.
3.Rajeev Roy ,Entrepreneurship, Oxford University Press, 2nd Edition, 2011.
4.Donald F Kuratko,T.V Rao. Entrepreneurship: A South Asian perspective. Cengage Learning, 2012.
5.Dr. Vasant Desai, “Small Scale Industries and Entrepreneurship”, HPH,2006.
Arya Kumar. Entrepreneurship, Pearson,2012.
6.Prasanna Chandra, Projects – Planning, Analysis, Selection, Implementation and Reviews, Tata McGraw-Hill, 8 th
edition ,2017.

Faculty Signature Head of the Department

 A.R.J COLLEGE OF
ENGINEERING AND
TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna
University, Chennai-25 (An ISO 9001:2015 Certified Institution)

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

I YEAR / I SEMESTER

STUDENTS NAMELIST

S.No Register Number Student Name

1 820124631002ARCHANA. U.C
2 820124631003ASALYA .A
3 820124631004ATCHAYA .P
4 820124631006GAANAPRIYA .B.M
5 820124631008HEMA PRABHA.A.K
6 820124631009KANISHKA .C
7 820124631010KAVIYA .R
8 820124631011KAVIYARASI .S
9 820124631012KEERTHIGA .A
10 820124631014MADHUMITHA .M
11 820124631015PRAVEENRAJ .R
12 820124631016PRAVINA .M
13 820124631017RAJMOHAN .B
14 820124631019SANTHIYA .S
15 820124631020SHARMILA .S
16 820124631021SRIDEVI .N
17 820124631022SRUTHI .P
18 820124631023SUJITHA .B
19 820124631024SWADHEE.K
20 820124631025VAINESH .R

Faculty InCharge HOD/ MBA

 A.R.J COLLEGE OF
ENGINEERING
ANDTECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna University, Chennai-
25 (An ISO 9001:2015 Certified Institution)

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

TIME TABLE FOR ACADEMIC YEAR (2023- 2024) - ODD SEMESTER

PROGRAMME : MBA

YEAR / SEMESTER :I/I LECTURER HALL NUMBER : - 03

NAME OF THE SUBJECT:BA4032 & ENTREPRENEURSHIPDEVELOPMENT

NAME OF THE FACULTY : Ms.M.KOWSALYA

DESIGNATION : ASSISTANT PROFESSOR

01:50 03:30-
9:00- 9.50- 10:50- 11:40- 01:00- 02:45-
- 04:15
LUNCH BREAK 12.30PM- 01.00PM

TIME 9.50 10.40 11:40 12:30 01:50 03:30

02:35
BREAK 10.40AM TO 10.50 AM

DAY/ 1 2 3 4 5 6 BREAK 02.35-PM– 02.45 PM 7 8

PERIOD
MON ED

TUE

WED ED
THU ED

FRI ED

COURSE ABBREVIATION FACULTY NAME

COURSE NAME CREDIT PERIODS
CODE

BA4032 ENTREPRENEURS Ms.M.Kowsalya

3
HIP PSSE 5
DEVELOPMENT

Faculty Signature HOD/MBA

 A.R.J COLLEGE OF ENGINEERING AND
TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna University, Chennai-25
(An ISO 9001:2015 Certified Institution)

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

BA4032&ENTREPRENEURSHIP DEVELOPMENT

UNIT I IENTREPRENEURAL COMPETENCE 9

Entrepreneurship concept – Entrepreneurship as a Career – Entrepreneurial Personality - Characteristics of
Successful Entrepreneurs – Knowledge and Skills of an Entrepreneur.

Entrepreneurship

Entrepreneurship can be defined by describing what entrepreneurs do. For example: "Entrepreneurs use
personal initiative, and engage in calculated risk-taking, to create new business ventures by raising
resources to apply innovative new ideas that solve problems, meet challenges, or satisfy the needs of a
clearly defined market."

But as the following definitions state, entrepreneurship is not restricted to business and profit:

"Entrepreneurship involves bringing about change to achieve some benefit. This benefit may be
financial but it also involves the satisfaction of knowing you have changed something for the better.

Meaning:

The word „Entrepreneur‟ has been taken from the French word. It means Between Takers.

Entrepreneur is another name of Risk Taker.

An entrepreneur is an individual who takes moderate risks and brings innovation. Entrepreneur is a person
who organises/ manages the risks in his/her enterprise. “Entrepreneur is a individual who takes risks and
starts something new
Definition:
According to J.B.say, “Entrepreneur is an Economic agent to unites all the means of production”

An entrepreneur is an individual who takes moderate risks and brings innovation.

An entrepreneur is "one who undertakes an enterprise, especially a contractor, acting as intermediately between capital and
labour."
 Some facts about entrepreneurs and entrepreneurship:

E:xamine needs, wants, and problems to see how they can improve the way needs and wants are met and
problems overcome.

N: arrow the possible opportunities to one specific "best" opportunity.

T:hink of innovative ideas and narrow them to the "best" idea.

R:esearch the opportunity and idea thoroughly.

E:nlist the best sources of advice and assistance that they can find. P:lan

their ventures and look for possible problems that might arise. R:ank the

risks and the possible rewards.

E:valuate the risks and possible rewards and make their decision to act or not to act.

N:ever hang on to an idea, no matter how much they may love it, if research shows it won't work.

E:mploy the resources necessary for the venture to succeed.

U:nderstand that they will have to work long and hard to make their venture succeed.

R:ealize a sense of accomplishment from their successful ventures and learn from their failures to help
them achieve success in the future.

Characteristics of Successful Entrepreneurs

Entrepreneurs are different from each other, but successful entrepreneurs tend to share certain
characteristics. Not all of them have developed each of the following to the same degree, but they tend to
have developed most of them to some degree. Here are some common characteristics of successful
entrepreneurs.
Entrepreneurs tend to:

 Be passionate about achieving their goals

 Have spirit of adventure (in fact, the word "adventure" is derived from the latin word meaning "to venture")
 Have a strong need to achieve and seek personal accomplishment
 Be self-confident and self-reliant
 Be goal-oriented
 Be innovative, creative, and versatile
 Be persistent
 Be hardworking and energetic
 Have a positive attitude
 Be willing to take initiative
 Have a strong sense of commitment
 An eye for opportunity: Many entrepreneurs start by finding a need and quickly satisfying it.
 Independence: Even though most entrepreneurs know how to work within the framework for the sake of
 profits, they enjoy being their own boss.
 An appetite for hard work: Most entrepreneurs start out working long, hard hours
with little pay.

 Self-confidence: Entrepreneurs must demonstrate extreme self-confidence in order to cope with all the risks
of operating their own business.
 Discipline: Successful entrepreneurs resist the temptation to do what is unimportant or the easiest but have
the ability to think through to what is the most essential.
 Judgment: Successful entrepreneurs have the ability to think quickly and make a wise decision. Ability to
accept change: Change occurs frequently when you own your own business, the entrepreneur thrives on
changes and their businesses grow.
 Make stress work for them: On the roller coaster to business success the entrepreneur often copes by
focusing on the end result and not the process of getting there.
 Need to achieve: Although they keep an "eye" on profits, this is often secondary to the drive toward
personal success.
 Focus on profits: Successful entrepreneurs always have the profit margin in sight and know that their
business success is measured by profits. Is this your profile or would you rather do your job, pick up your
pay check and leave the headaches to someone else? Most of us, quite easily, choose the later.

Entrepreneurship as a Career

The greatest challenge before the youngsters in India today is to build the country into an economic global
giant. The obvious questions that come to the minds of most of them are - “Why should we in India think of
being an entrepreneur? Why not work as part of a larger organisation where the opportunities and resources
to scale ideas are perhaps far greater?

Entrepreneurship is important for two reasons. One, it furthers innovation to find new solutions to existing
and emerging demands. Two, it offers far greater opportunities for wealth creation for self and the society
than anything else. Entrepreneurship has its challenges. It is about 20 per cent luck and 80 per cent effort,
clarity, courage, confidence, passion and above all smartness.

What leads a person to take up entrepreneurship as a career option? There can be a number of reasons
including displacement from a job, frustration in the present job, not getting a job of his/her choice, etc.
Sometimes a person realises much in advance that his/her job is in jeopardy, as the organisation is moving
towards closure. At times a deserving employee getting superseded in promotion is compelled to quit the
job and look for doing something on his own. Some people object to a system wherein reward is often
based on seniority rather than merit.

Above facts are corroborated by the research findings of Gilad and Levine (1986). They proposed two
closely-related explanations of entrepreneurial motivation, the “push” and the “pull” theory. The “push”
theory argues that individuals are pushed into entrepreneurship by negativeexternal forces, such as job
dissatisfaction, difficulty in finding employment, insufficient salary, inflexible work schedule.
Negative aspects
Though an entrepreneur is his own boss, in some respects he is not. It is so because he is constrained by various

people like his financiers, labourers, suppliers, customers and so on.

 He may have to face frustration since the scope of his operations is limited by his limited resources.
 He has to work long and hard hours from morning to dusk and his venture tends to absorb all his
energy and time. This may affect his social and family life.
 Entrepreneurial Personality
Starting and growing your own business requires many skills to be successful. Take a look at the
business personality types and find out what you need to succeed.

There are 9 key types of personality and understanding each will help you enjoy your business more and
provide your company with what it needs to grow. This entrepreneur personality profile is based on the 9-point
circle of the Enneagram.

The 9 Personality Types of Entrepreneurs

1. The Improver: If you operate your business predominately in the improver mode, you are focused
on using your company as a means to improve the world. Your overarching motto is: morally correct
companies will be rewarded working on a noble cause. Improvers have an unwavering ability to run their
business with high integrity and ethics.
Personality Alert: Be aware of your tendency to be a perfectionist and over-critical of employees and
customers.
Entrepreneur example: Anita Roddick, Founder of The Body Shop.
2. The Advisor: This business personality type will provide an extremely high level of assistance and
advice to customers. The advisor's motto is: the customer is right and we must do everything to please
them. Companies built by advisors become customer focused.
Personality Alert: Advisors can become totally focused on the needs of their business and customers that
they may ignore their own needs and ultimately burn out.
Entrepreneur example: John W. Nordstrom, Founder Nordstrom.
3. The Superstar: Here the business is centered around the charisma and high energy of the Superstar
CEO. This personality often will cause you to build your business around your own personal brand.
Personality Alert: Can be too competitive and workaholics.
Entrepreneur example: Donald Trump, CEO of Trump Hotels & Casino Resorts.
4. The Artist: This business personality is the reserved but highly creative type. Often found in
businesses demanding creativity such as web design and ad agencies. As an artist type you‟ll tend to build
your business around the unique talents and creativities you have.

5. The Visionary: A business built by a Visionary will often be based on the future vision and
thoughts of the founder. You will have a high degree of curiosity to understand the world around you and
will set-up plans to avoid the landmines.
Personality Alert: Visionaries can be too focused on the dream with little focus on reality. Action must proceed
vision.
Entrepreneurial example: Bill Gates, Founder of MicroSoft Inc.

6. The Analyst: If you run a business as an Analyst, your company is focus on fixing problems in a
systematic way. Often the basis for science, engineering or computer firms, Analyst companies excel at
problem solving.
Personality Alert: Be aware of analysis paralysis. Work on trusting others.
Entrepreneurial example: Intel Founder, Gordon Moore.
 7. The Fireball: A business owned and operated by a Fireball is full of life, energy and optimism.
Your company is life-energizing and makes customers feel the company has a get it done attitude in a fun
playful manner.
Personality Alert: You may over commit your teams and act to impulsively. Balance your impulsiveness with
business planning.

Entrepreneurial example: Malcolm Forbes, Publisher, Forbes Magazine.

8. The Hero: You have an incredible will and ability to lead the world and your business through any
challenge. You are the essence of entrepreneurship and can assemble great companies.

Personality Alert: Over promising and using force full tactics to get your way will not work long term. To
be successful, trust your leadership skills to help others find their way.

Entrepreneurial example: Jack Welch, CEO GE.

9. The Healer: If you are a Healer, you provide nurturing and harmony to your business. You have an
uncanny ability to survive and persist with an inner calm.
Personality Alert: Because of your caring, healing attitude toward your business, you may avoid outside
realities and use wishful thinking. Use nario planning to prepare for turmoil.

Characteristics of successful Entrepreneur

 Capacity to take risk
 Capacity to work hand
 Above average intelligence and wide knowledge
 Self Motivation
 Vision and foresight
 Willingness to defer consumption
 Incentive ability and sound judgment
 Flexibility and sociability
 Desire to take personal responsibility.
 Desire to seek and use feedback
 Persistence in the face of adversity
 Innovativeness and future orientation
 Mobility and drive
 Creative Thinking.
 Strong need for achievement
 Ability to Marshall resources
 High degree of ambition
 Will to conquer & impulse to fight.
 Will to prove superior to others.

Knowledge and Skills of Entrepreneur

1. Idea generation & scanning of the best suitable idea
2. Determination of the business objective
3. Product analysis and market research
4. Determination of form of ownership
5. Completion of promotional formalities
6. Raising necessary funds
7. Procuring machine & material
8. Recruitment of men

6 key Qualities of Entrepreneur

All successful entrepreneurs have the following qualities:

Inner Drive to Succeed

Entrepreneurs are driven to succeed and expand their business. They see the bigger picture and are often
very ambitious. Entrepreneurs set massive goals for themselves and stay committed to achieving them
regardless of the obstacles that get in the way.

Search for New Ideas and Innovation

All entrepreneurs have a passionate desire to do things better and to improve their products or service.
They are constantly looking for ways to improve. They're creative, innovative and resourceful.

Openness to Change
If something is not working for them they simply change. Entrepreneurs know the importance of keeping on top of
their industry and the only way to being number one is to evolve and change with the times.

Competitive by Nature
Successful entrepreneurs thrive on competition. The only way to reach their goals and live up to their self
imposed high standards is to compete with other successful businesses.

Highly Motivated and Energetic

Entrepreneurs are always on the move, full of energy and highly motivated. They are driven to succeed
and have an abundance of self motivation. The high standards and ambition of many entrepreneurs
demand that they have to be motivated!

Accepting of Constructive Criticism and Rejection

Innovative entrepreneurs are often at the forefront of their industry so they hear the words "it can't be
done" quite a bit. They readjust their path if the criticism is constructive and useful to their overall plan,
otherwise they will simply disregard the comments as pessimism. Also, the best entrepreneurs know that
rejection and obstacles are a part of any leading business and they deal with them appropriately.

WOMEN ENTREPRENEUR IN INDIA:

The Indian sociological set up has been traditionally a male dominate done. Women are considered as
weaker sex and always to depend on men folk in their family and outside, throughout their life. They are
left with lesser commitments and kept as a dormant force for a quite long time. The Indian culture made
them only subordinates and executors of the decisions made by other male members, in the basic family
 structure.
The traditional set up is changing in the modern era. The transformation of social fabric of the Indian
society, in terms of increased educational status of women and varied aspirations for better living,
necessitated a change in the life style of Indian women.

Thus, the Indian women have basic characters in themselves in the present sociological and cultural setup as
follows.
 Indian women are considered as Sakthi, which means source of power.
 Effectively coordinating the available factors and resources.
 Efficient execution of decisions imposed on them

 Clear vision and ambition on the improvement of family and children.

 Patience and bearing the sufferings on behalf of others and

 Ability to work physically more at any age.

NEED OF THE HOUR: Women sector occupies nearly 45% of the Indian population. The literary and
educational status of women improved considerably during the past few decades. More and more higher
educational and research institutions are imparting knowledge and specialisation. At this juncture, effective
steps are needed to provide entrepreneurial awareness, orientation and skill development programmes to
women.

QUALITIES REQUIRED FOR AN ENTREPRENEUR:

An effective entrepreneur requires certain basic qualities, which can be listed as follows.
 Innovative thinking and farsightedness.
 Quick and effective decision making skill. Ability to mobilise and marshal resources.
 Strong determination and self confidence.
 Preparedness to take risks.
 Accepting changes in right time.
 Access and alertness to latest scientific and technological information.

Factors affecting Entrepreneurship growth:

1. Economic factors
2. Social factors
3. Cultural factors
4. Personality factors
5. Psychological and sociological factors.
Economic Factors:
1. Lack of adequate basic facilities
2. Non- availability of capital
3. Non- availability of raw materials and finished goods.
4. Great risk involved in business
 UNIT II ENTREPRENEURAL ENVIRONMENT 9
Business Environment - Role of Family and Society - Entrepreneurship Development Training and Other
Support Organisational Services - Central and State Government Industrial Policies and Regulations.

2.1 Business Environment

The emergence and development of entrepreneurship is not a spontaneous one but a dependent
phenomenon of economic, social, political, psychological factor often nomenclature as supporting condition to
entrepreneurship development.

These factor may have both positive and negative in uence on the emergence of entrepreneurship.
Negative influence create inhabiting milieu to the emergence of entrepreneurship. For analytical purpose this
conditions factor are grouped and discussed under two categories (i.e.) Economic factor and non-economic
factor

1. Economic Factor:

 Capital

Capital is one of the most important prerequisites to establish an enterprise. If only a capital is available,
entrepreneur can bearing land, machine and raw material and together produce goods 'Capital is regarded as
lubricants/fuel to the process of production' Increase in capital investment, capital output ratios tends to increase.
 Labour:

Quantity rather quality of labour in uence the emergence of entrepreneurship Cheap labour is often less
mobile or even immobile. Adam smith consider division of labour as an important element in economic
development. According to him division of labour as an important element it depends. Up on the size of the
market leads to improvement in the productive capacities of labour due to an increase in the dexterity (i.e.)
improvement in skills, grace and cleverness) of labour. Ii appears that labour problem clearly does not prevent
entrepreneurship for emerging.

 Raw material:

The necessity of raw material hardly needs any emphasis for establishing any industrial activity. In the absence
of raw material neither any enterprises nor entrepreneur can emerge. In some cases " technological innovations
can compensate for raw material inadequate. The Japanese case for example, witness that " Lack of raw material
clearly does not prevent entrepreneurship from emerging but in uence the directions in which entrepreneurship
took place".

 Market:
Potential of the market constitutes the major determinant of provable rewards from entrepreneurial function. "
the proof of pudding lies in eating, the proof of all production lies in conceptions (i.e.) Marketing." " Both size
and composition of market in uence entrepreneurship in their own ways" Monopoly in a particular product in a
Particular market becomes in uential for entrepreneurship than a competitive market. Lands hold the
opinion that improvement in transportation are more bene cial to heavy industry than to light industry
because of their e ect on the movement of raw materials.

 Non - Economic Factor:

Sociologist and psychologist advocate that the in uence of economic factor on entrepreneurial emer-
gence largely depends upon the extends of non economic factor (i.e) social and psychological in the society.

2.Social Conditions:

 Legitimacy of entrepreneurship:

The proponents of non-Economic factors gives emphasis to the relevance of a system of norms and values with
in socio culture setting for the emergence of entrepreneurship.

The social status of those playing entrepreneurial role has been considered one of the most important
content of entrepreneur legitimacy.

 Social mobility:

Social mobility involves degree of mobility, both social and geographical and the nature of mobility
channel with in a system. "social mobility is crucial for entrepreneurial emergence is not unanimous".

Role of Family and Society

Hoselitz's need for openness of a system. McClelland's need for exibility in a role of relation implied the
need for the possibility of mobility with in a system for entrepreneurship development.

In contrast, group of scholar who express the view that a lack of mobility possibilities promotes
entrepreneurship. Some even speak of entrepreneurship as in to a action in a rigid social system. Third opinion
is the combination of exibility and the denial of social mobility. It is also printed out that the degree and nature
of social mobility alone is not likely to in uence entrepreneurship, it as determined by other non economic
factors.

 Marginality:

Scholars hold a strong view that social marginalized also promotes entrepreneurship. They believe that
individuals are grouped on the perimeter of a given social system or between two social systems provide the
personnel to assume the entrepreneurial roles.
People may be drawn from religious cultural, ethinic or migrant minority groups and their marginal
social position is generally believed to have psychological e ects which make entrepreneurship particularly
attractive for them.

 Security:

Entrepreneurial security is an important facilitator of entrepreneurial behaviors. Scholars are not consensus
(same) on the amount of security that is needed.
 We also regard security to be a signi cant factor for entrepreneurship development. This is reasonable too
because if individuals are fearful of tossing their economic assets.

 Need achievement:

David McClelland's theory of need achievement states that, a constellation (gathering) of personality
characteristics which are indicative of high need achievement is the major determinant of entrepreneurship
development.

 Withdrawal of status respect:

Hagen believes the initial condition leading to eventual entrepreneurial behavior is the loss of status by a
group. He postulates four types of events that can produce status withdrawals,

1.The group may be displaced by force,

2.It may have its valued symbols denigrated

3. It may drift from into a situation of status inconsistency.

4. It may not be accepted the expected status or migration in a new society.

 Government Actions (Factors):

Government by its actions or failure to act does in uence both the economic and non-economic factor for
entrepreneurship.

The fact remains that the various factors are observed in the preceding pages will cause emergence of
entrepreneurship are integral, interlocking, mutually dependent and mutually reinforcing.
Entrepreneurship Development Programmes (EDP)
Need for EDP:

A well known behavioral scientists David McClelland at Harvard University made an

interesting investigation into why certain societies entrepreneurs are born or made?. He found that the question.
Objectives of EDPs:

 Develop and strengthen their entrepreneurial quality (i.e.,) motivation or need for the achievement.

 Analyze environmental setup relating to small industry and small business.

 Select product

 Formulate project for the product.

 Understand the process and procedure involved in setting up an small enterprise.

 Know the sources of help and support available for starting a small scale industry.

 Acquire the necessary managerial skills required to run a small enterprise.

 To know the pros and cons in becoming an entrepreneur.

 Appreciate the needed entrepreneurial disciplines.

Course contents and curriculum of EDPs:

1. General Introduction to Entrepreneurship:

Participants are exposed to a general knowledge of factors a ecting small scale industries, the role of En-
trepreneurs in economic development Entrepreneurial behavior and the facilities available for establishing small
scale industries.

2. Motivation Training:

Induces and increases the needs for achievement among the participants. It is the crucial input of En-
trepreneurship training. It injects con dence and positive attitude and behavior among the participants towards
business sometimes successful Entrepreneurs are also invited to speak about their experience in setting up and
running a business.

3. Management skills:

Running a business whether large or small requires the managerial skill participants will be imported
with basic and essential managerial skills in the functional areas like marketing, nance, HR and production. It
helps to run business smoothly.

4. Support system and procedure:

The participants also needed to be exposed to the support available from di erent institutions and
agencies for setting up and running small scale enterprises.

5. Fundamentals of project feasibility study:

Participants are provided guidelines on the e ective analysis of feasibility or viability of the particular
project in view of marketing, organization, technical, nancial and social aspects knowledge is also given how to
prepare the projects or feasibility report for certain products.

6. Plant Visits:

In order to familiarize the participants with real life situation in small business, plant visits are also
arranged such trips help the participants know more about an Entrepreneur's behavior, personality, thoughts and
aspirations.

Evaluation of EDP:

Evaluation of EDP is necessary to see whether the objective of EDP's is ful lled or not. In simple words,
there is a need to have a look into how many participants have actually started their own enterprises after
completing the training. This calls for evaluation of EDPs.

So far 16 evaluation studies have been conducted by various organizations and individual researchers.
The most recent and nationwide evaluation study on EDPs is carried out by a ED institute of India Ahmed-abad.

It is observed that one out of every four actually started his/her enterprise after undergoing En-
trepreneurial training.
 Blocked - 10%

Given up - 29% (idea of launching)

430 trainees - cannot be contacted.

Problem faced by EDP:

1. Trainer - motivations are not found upto the mark in motivating the trainees to start their own
enterprises.

2. ED organization lack in commitment and sincerity in conducting the EDPs.

3. Non-conductive environment and constraints make the trainer - motivators role ine ective.

4. The antithetic attitude of the supporting agencies like banks and nancial institutions serves as
stum-bling block to the success of EDPs.

5. Selection of wrong trainees also leads to low success role of EDPs.

The Entrepreneurial behavior is measured on the following four dimensions:

1. Planning orientation

2. Achievement orientation

3. Expansion orientation

4. Management orientation
Institutional support to small entrepreneurs

SIDO (Small Industries Development Organisation)

SIDO is a subordinate o ce of the department of SSI and ARI. It is an apex body and monitoring the
policies for formulating, coordinating and monitoring the policies and programmes for promotion and
development of small scale industries. The main functions of SIDO are classi ed into

(1) Coordination - To evolve national policies, to coordinate between various govts. Coordinate the programmes
for the development of industrial estates. (2) Industrial development - To reserve items for production by small
scale industries, render required support for the development of ancillary units

(3) Extension - To improve technical process, production, selecting appropriate machinery, preparing factory
layout and design.

NSIC (National Small Industries Corporation Ltd)

NSIC an enterprise under the union ministry of industries, was set up in 1955 to promote, aid and
foster the growth of small scale industries in the country, to provide machinery on ire- purchase scheme to SSI,
to provide equipment leasing facility, to help in export marketing of the provided products of SSI, to participate
in bulk purchase programme of the Government, to impart training in various industrial trades, to undertake the
construction of industrial estates.

SSIB (Small Scale Industries Board)

The government of India constituted a SSIB in 1954 to advice on development of small scale
industries in the country. SSIB is also known as central small industries board. SSIB is created to facilitate
coordination and inter institutional linkages. It is an apex advisory body to render service, advice to the
government to all issues pertaining in the development of SSI. 'Industrial minister is the Chairman'.

SSIDC (State Small Industries Development Corporations)

SSIDC were set up in various states under the companies act 1956, as state government undertaking to
cater to the primary developmental need of the tine, village industries in the state union territories under this
jurisdiction.

SISIs (Small Industries Service Institutes)

The SISIs are set up to provide consultancy and training to small entrepreneurs both existing and
prospective. The main functions are,

To serve as interface between central and state government To render technical support services

To supply promotional programmes To conduct EDP programmes

DICs (The District Industries Centres)

DICs was started on May 8, 1978 with a view to provide integrated administrative framework
at the distinct level for promotion of small scale industries in rural areas.

Functions : The DICs role is mainly promotional and development (i) To conduct industrial potential
surveys keeping in view the availability of resources in terms of material and human skills, infras-tructure
demand for product etc.

TCO (Technical Consultancy Organisation)

A network of technical consultancy organizations was established by the All India Financial
Institutions in the seventies and eighties in collaboration with the state level nancial and development
institutions and commercial banks to cater to the consultancy needs of small business and new entrepreneurs.

Government Policy for Small Scale Enterprise

Nation is said to be far well to do if it has a much industry as it has industrial policy.

IPR 1948
 The IPR 1948 for the rst time, accepted the importance of small scale industries in the overall
industrial development in the country.

It was well realized that small scale industries are utilized most of the local resources and create
employment opportunities.

IPR 1956

The IPR 1948 set in the nature and pattern of industrial developments taken place in the country.

For example, planning has proceeded on an organized manner and the rst ve year plan 1951- 1956 has been completed.
Industries development.

IPR 1977

The IPR 1977 classi ed small sector into three categories

• Cottage and household industries which provides self employment on a large scale.

Tiny sector incorporating investment in industrial unit in plant machinery upto Rs.1 lakh and situated in
towns with a population of less than 50,000 according to 1971 census.

IPR 1980

The government of India adopted a new industrial policy resolution (IPR) on July 23, 1980.

The main objectives of IPR 1980 was de ned as facilitating an increase of industrial production
through optimum utilization of installed capacity and expansion of industries.

IPR 1990

The IPR 1990 was announced during June 1990.As to the small sector the resolution
continued to give increasing importance to small scale enterprises to serve the objective of
employment generation.

 The investment ceiling in plant and machinery for small scale industries was ( xed in 1985)
raised from Rs.35 lakshs to Rs.60 lakshs and correspondingly for ancillary units from
Rs.45 lakhs to Rs.75 lakhs.

 Investment ceiling for tiny units has been increased from Rs.2 lakhs to Rs.5 lakhs
provided the unit is located in the area having a population of 50,000 as per 1981 causes.
New Small Enterprise Policy 1991

The government of India, for the rst time, tabulated the new small enterprise policy titled 'Policy
measures for promoting and strengthening small, tiny and village enterprises' in the parliament on August 6,
1991.
The main thrust of New small enterprise policy is to impact more vitality and growth impetus to the
sector which enable it to contribute its mite fully to the economy , particularly in terms of growth of output,
employment and exports.
 Salient features of the new small enterprise policy

The investment limit has been increased in plant and machinery of tiny enterprises from Rs.2 lakh to
Rs.5 lakh based on their location.

Inclusion of industry related service and business enterprises, based on their location as SSI. To limit
the nancial liability of the new entrepreneurs to the capital investment. A new partnership act has been
introduced.

Important points on the New small enterprise policy are;

The new policy is founded on a proper understanding of the fundamental problems of small sector and
the measure proposed it are well directed to mitigate the various handicaps that faces their sector.

The new policy provides for continuous support to the tiny sector like easier access to institutional
nance, preference in government purchase and relaxation of certain labour laws. Since tiny sector is the nursery
of the traditional skill, the proposed package of incentives for tiny sector will help its grow with more vitality.

The important plan proposal (1992-1999)

The main function of the eighth ve year plan has been employment generation as the motive for
economic growth to ful ll these objectives, small and village industries have been assigned for an extremely
important role.

The important plan proposal in the year 1992-1997 are;

 The plan has reiterated that timely and adequate availability of credit is of more importance
than concessional credit. So with the establishment of SIDBI, sanction of composite loans
under 'Single Window Concept' concessional loan to state corporations for infrastructure
development and provision of factory services have been introduced. It proposes to establish
appropriate tool rooms and training institution to upgrade technology.
New policy initiative in 1997-2000 for the small scale sector

o Announcement of a new credit insurance scheme in the year (1999-2000), particularly

exported oriented & tiny units.

o The working capital limit for SSI unit is determined by the bank on the basis of 20
percent of their annual turnover.

o Exemption from excise duty, as given to SSI units, will be extended to goods bearing a
brand name of another manufacturer in rural area.

o A national programme for rural industrialization has been announced, with a mission to
setup 100 rural clusters per year, to give a boost to rural industrialization.

o Cotton yarn has been introduced in the general exercise exemption scheme for SSIs.

o The investment limit for small scale and ancillary undertakings has been reduced from
New policy initiative in 1997-2000 for the small scale sector
 o Announcement of a new credit insurance scheme in the year (1999-2000), particularly
exported oriented & tiny units.

o The working capital limit for SSI unit is determined by the bank on the basis of 20
percent of their annual turnover.

o Exemption from excise duty, as given to SSI units, will be extended to goods bearing a
brand name of another manufacturer in rural area.

o A national programme for rural industrialization has been announced, with a mission to
setup 100 rural clusters per year, to give a boost to rural industrialization.

o Cotton yarn has been introduced in the general exercise exemption scheme for SSIs.

o The investment limit for small scale and ancillary undertakings has been reduced from

Entrepreneurial Initiatives in India- “Government and Non Government Support”

Delhi Technical University announced the setting up of water technology and management
centre with the support of UNESCO.

The Entrepreneurship Development Cell (EDC) of University School of management Studies,

Guru Gobind Singh Indraprastha University (GGSIPU) has launched a one month business
skill development programme in association with the Ministry of Micro, Small and Medium
Enterprises. Representatives from KVIC, NABARD will share their knowledge.

NASSCOM has signed a Memorandum of Understanding (MoU) with University Grants

Commission (UGC), for

Faculty Development Programme (FDP)

Re-skilling the faculty in IT

Framework for co-operation to catalyze industry-academia interface

The Role of Government in Supporting Entrepreneurship

Small and Medium-sized Enterprises (SMEs) in market economies are the engine of economic development.
Owing to their private ownership, entrepreneurial spirit, their flexibility and adaptability as well as their
potential to react to challenges and changing environments, SMEs contribute to sustainable growth and
employment generation in a significant manner.

i) To provide information on regulations, standards, taxation, customs duties, marketing issues;

ii) To advise on business planning, marketing and accountancy, quality control and assurance;

iii) To create incubator units providing the space and infrastructure for business beginners and
innovative companies, and helping them to solve technological problems, and to search for know-how
and promote innovation; and

iv) To help in looking for partners. In order to stimulate entrepreneurship and improve the business
environment for small enterprises.
 Policies And Schemes For Promotion Of MSME Implemented By State Governments
All the State Governments provide technical and other support services to small units through their Directorates
of Industries, and District Industries Centres. Although the details of the scheme vary from state to state, the
following are the common areas of support.

1. Development and management of industrial estates

2. Suspension/deferment of Sales Tax

3. Power subsidies

4. Capital investment subsidies for new units set up in a particular district

5. Seed Capital/Margin Money Assistance Scheme

6. Priority in allotment of power connection, water connection.

7. Consultancy and technical support

STATE GOVERNMENTS INCENTIVES FOR INVESTORS
Many state governments are offering incentives to attract investment in their states. Many state governments in
India offer attractive incentive packages which include incentives such as:

Land at subsidized prices or Industrial sheds to set up small scale industrial units.

Tax concessions for a number of years. These may include exemption from sales tax etc for a
set period of time.

Electric power supply at a reduced tariff.

Loans and subsidies at very attractive rates of interest.

INCENTIVES FOR SETTING UP BUSINESS IN BACKWARD

AREAS
The Government of India as well as several State Governments provides several benefits and incentives to
promote industrialization of backward areas. Both the central and state governments share the cost of some of
the incentives provided. The purposes of such incentives are to develop backward areas and increase
employment for local inhabitants of such areas.

The bulk of new industries prefer areas with an established infrastructure and this is why incentives are offered
to entice new ventures to start up in areas that need development. Incentives offered depend on the specific area
chosen.

Some of the incentives offered are:

Transportation subsidies to promote industries in areas that are not easily accessible, like
remote hilly areas. A subsidy of 50% to 90% on transportation costs is available under this
scheme.
 A Subsidy at the rate of 15% of the investment amount in plant and machinery is given under
the capital investment subsidy scheme.

A subsidy for interest relief is also provided at a rate of 3% for new industrial units in some areas.

Loans available for starting Industrial venture in India

There are two main financial institutions available for loans for entrepreneurs on the (federal/ all India level).

1. Industrial Development Bank of India(IDBI)

2. Industrial Finance Corporation of India (IFCI)

The Industrial Development Bank of India is the head institution in the area of long term industrial finance. It
was established under the IDBI Act 1964 as a wholly owned subsidiary of RBI and started functioning on July
01, 1964. Under Public Financial Institutions Laws (Amendment) Act 1976, it was delinked from RBI. IDBI is
engaged in direct financing of the industrial activities

On the State level finance is available loans can be availed from

 State Financial Corporation (SFC)

State Industrial Development Corporation (SIDC).

Criteria for Business loans:

√ Technical assessment of project

√ Experience of the entrepreneurs

√ Financial & commercial practicality of the project

√ Conformity to environmental laws

√ Economic viability of the project.

Small Enterprises in International Business

Introduction

India today operates the largest and oldest programme for the development of small scale enterprises
in any developing country. The small enterprises have made an impressive and phenomenal growth in units,
production and employment, exports over the years. The small sector has now emerged as a dynamic and
vibrant sector of the Indian economy in the recent years.

Export Performance and Trends of Small Enterprises

 Exports from small enterprises have been on increase registering an annual growth of about 171
percent during 1978 -1994. One way to view the impressive growth of exports from small enterprises is their
increasing share year after year to the total exports from the country. The percentage of share of small enterprise
exports to the total from 1971-1972 onwards is presented in Table,

'P - Provisional'

Year Total Exports Exports from SSI Percentage 3 to 2

1971-72 1608 155 9.6

1976-77 5142 766 14.9

1981-82 7890 2071 26.5

1986-87 12567 3644 29.0

1991-92 44040 13883 31.5

1992-93 53688 17785 33.1

1993-94 69547 24149(P) 34.5

Credit Policy
The small scale units have very weak base of their own funds on the one hand and have no access to other sources of funds
like capital market, on the other. Hence, they have to depend upon the state nancial corporations (SFCs) and the
commercial banks to meet their long term and short capital
requirements. The actual availability of credit from the nancial statements, institutions was very low at 8.1 percent of
output. In case of tiny units, it was merely 2.7% of their output.
Infrastructure

Lack of infrastructure facilities like power supply, transportation and communication aduersely a ect
the quality and quantity of production, its cost and delivery. These, in turn, tell upon the export performance of
small scale units. The launching of new scheme of 'Integrated Infrastructure Development' in rural and
backward areas is a right step in right direction.

Technology

Technology is the crux of quality and competitiveness. However, the adoption of technology in small
scale industries hampered due to lack of infrastructural facilities, on the one hand and the present investment
ceiling of the small scale industry on the other. Nevertheless the government has setup several tool rooms,
production-cum-process development centres, regional testing centres and workshops, schemes of industrial
parks and 18,09,000 to break the prevailing inertia and promote exports from small scale units.

The recent telecommunication revolution has o ered hi-tech application for market research which is
most cost e ective substitute for exploratory personal visits abroad. As a matter of fact, conventional method of
market explorations through trail and error and private contracts has been replaced by the electronic network
exchanging business queries between the trading parties.

Export Potential of Small Scale Units

Given the constraints and weakness of small sector, one cannot conclude the small scale sector has no
strong point which help it emerge as a global player. The small units are inherently exible to react to market
signals and changing tastes. This makes the small enterprise more innovative and open to new ideas.
Opportunities exist for small scale sector to emerge a strong global player especially in the exports of the
following products.

Food processing industries

India has been the second largest producer of a very wide variety of fruits and vegetables in the world. But it
processes less than 1% of production. At the end of 1992, the number of processing units registered under fruit
products order was 4,057 of which 87% belonged to small scale and cottage industries sector.

Leather Goods

India has the largest cattle population and thus has a substantial raw material base for leather based
industries, At present, the country's share in the world leather market is about 4 percent and the target is
to raise it by 10 percent by 2000's because this sector holds potential for exports.

The electronic industry has registered a phenomenal compound growth rate of 35% during the last
decade 1981-1990. The share of small sector in 1993-1994 was 40% of output and 30% of exports of electrical
industry 80% of exports of electrical goods are from 'Export Processing Zone' alone. The electronic industry
holds tremendous potential for exports in electronics, software and contract manufacturing. This potential needs
to be tapped.

Plastic Goods

At present, out of 18500 units manufacturing various industrial and consumer plastics, around 18000
units are in small sector. The items of plastic exports include carry bags, garbage bags, shopping bags,
woven sacks, plastic moulded household items like insulated thermoware, pens, spectacles frames, PVC
hoses, PVC leather cloths etc. In 1992-1993, the small sector accounted for 45% of these exports. There
still exists enough scope to diversify the products and penetrate new markets. There main problems in
this industry is facing is shortage of plastic raw materials, (i.e) polymer.

Scale Enterprise Shares

The government of India has accorded high priority to the development of small scale industries in the
country. Under the protective and promotional policies of the government, the small scale enterprises in the
country's exports had made their presence felt nationally and internationally.

3.1 Sources of Product for Business

As much as your plan represents your dream and is very important to you, it may not be as high on the agendas
of the people who read it. When you sit down to write your plan, think of who will be reading it and put yourself
into their shoes as much as possible. In most cases, the people who will read your plan are going to be potential
investors, bankers, and/or potential partners. Your readers have likely seen dozens, and perhaps even hundreds,
of plans. These people do not often have a great deal of time, so prepare your plan accordingly.

In general you should:

Write the plan yourself. Get help if you need it, but do not let your accountant, bookkeeper, or
other professional write your plan for you. You may let them help you with the financial plan,
for example, but you need to know your plan inside and out-and the best way to ensure that is
to write it yourself.

Back up every claim you make with supporting evidence. Include surveys and detailed market
research as an addendum or appendix to your plan.

Write clearly and to the point, keeping your prose to a minimum.

Avoid hyperbole: don't overstate your case. Similarly, avoid unnecessary adjectives such as
"fantastic," "amazing," "astounding," "irresistible," and so on. Let the reader form his or her
own opinion.

Ensure that your writing is error-free and edited for proper form and syntax.

Choose a simple, common font such as Times New Roman, and stick with it throughout the
document.

Use professionally produced drawings, photographs, and graphs. Unless you are a
professional, your own attempts at art will look amateurish. The same is true for videos, if
you're using them, or a computer-based demo.

Bind the pages simply. Cerlox or its equivalent is likely sufficient.

Section of the plan
 Executive Summary
 Your Planned Venture
 Market Research
 Background and History
 Management Team
 Start-up Plan
 Operational Plan
 Marketing Plan
 Financial Plan
 Appendix

Pre-feasibility Studies
Pre-feasibility studies are well researched yet generic due diligence reports that facilitate potential entrepreneurs
in project identification for investment

The main objective of the pre-feasibility studies prepared by SMEDA is to provide information about
investment opportunities to the small & medium enterprises (SME‟s). A typical pre-feasibility study provides:
 1. Comprehensive information for investment opportunity in a business.

2. Specific information regarding different business areas like, marketing, technical, industrial
information etc. for the existing entrepreneurs to improve their exiting setup.

3. Project investment information and financial projections to support viability of the business.
Project:
It is defined as a typically has a distinct mission that it is designed to achieve and a clear termination point, the
achievement of the mission.

Idea Generation
Project selection process starts with the generation of a product idea. The project ideas can be discovered from
various internal and external sources. They may be

1. Knowledge of potential customer needs

2. Watching emerging trends in demand for certain products

3. Scope for producing substitute product

4. Going through certain professional magazines catering to specific interest like electronics,
computers etc.,

5. Success stories of known entrepreneurs or friends or relatives.

6. A new product introduced by the competitor.

Criteria for Selection Process

It starts from where project identification ends. After having some project ideas, these are analysed in the light
of existing economic conditions, the government policy and so on. A tool generally used for this purpose is,
what is called the managerial jargon, SWOT analysis. On the basis of this analysis, the most suitable idea is
finally selected to convert it into an enterprise.
SWOT Analysis

Introduction
It has always been important for a business to know and understand how it fits in and interacts with the
surrounding environment on both an internal (office/factory/shop environment) and external view (how your
business operates with the outside world).

Analyzing the Business

The most influential way of doing this is to perform a SWOT analysis of the company. It is a common phrase
used to abbreviate Strengths, Weaknesses, Opportunities and Threats.

Each term is a heading for a separate analysis of the business but they can be related as seen below:
Strengths provide an insight to your business opportunities & weaknesses in your business
can cause immediate threats
A guideline of how to carry out the analysis is explained in the next section, but it is important to know that the
SWOT analysis is only based upon information that is known by the assessors (you), and is seen as perhaps the
more basic approach of analyzing a business‟ position: but SWOT is still a powerful tool when looking for
immediate benefits.

Performing SWOT
Recognizing the Strengths and Weaknesses before tackling the Opportunities and Threats is the best way to
approach the analysis: the more Strengths and Opportunities the better they can both be seen as the bigger
influences for the success of your company. You need to be aware that the most important rule is not to leave
anything out no matter how small the issue may be.

There is no fixed way of doing a SWOT analysis, but it should be done in a way that you feel most comfortable
with, and more importantly that you understand it. The objective is to be in a position where you can determine
a strategy for the future to improve your company‟s overall performance (or maintain it if you are happy with
your final analysis).

Strengths
The Strengths can be considered as anything that is favourable towards the business for example:

4. Currently in a good financial position (few debts, etc)

5. Skilled workforce (little training required)
6. Company name recognized on a National/Regional/Local level
7. Latest machinery installed
8. Own premises (no additional costs for renting)
9. Excellent transport links (ease of access to/from the Company)
10. Little/non-threatening competition
Weaknesses
Recognizing the Weaknesses will require you being honest and realistic. Don‟t leave anything out as this is an
important part as to realize what needs to be done to minimize this list in the future. Here are a few examples:

1. Currently in a poor financial position (large debts, etc)

2. Un-Skilled workforce (training required)

3. Company name not recognized on a National/Regional/Local level

4. Machinery not up to date (Inefficient)

5. Rented premises (Adding to costs)

6. Poor location for business needs (Lack of transport links etc)

7. Stock problems (currently holding too much/too little)

 8. Too much waste

Opportunities
Keeping in mind what you have listed as your Company Strengths, SWOT Analysis can now influence the
Opportunities for the business. These can be seen as targets to achieve and exploit in the future for example:

1. Good financial position creating a good reputation for future bank loans and borrowings

2. Skilled workforce means that they can be moved and trained into other areas of the business

3. Competitor going bankrupt (Takeover opportunity?)

4. Broadband technology has been installed in the area (useful for Internet users)

5. Increased spending power in the Local/National economy

6. Moving a product into a new market sector

Threats
The final part of the analysis will also be seen as the most feared- the Threats. It has to be done and therefore
taking into account what you have listed as your weaknesses, the threats will now all seem
too clear. Examples

1. Large and increasing competition

2. Rising cost of Wages (Basic wage, etc)

3. Possible relocation costs due to poor location currently held

4. Local authority refusing plans for future building expansion

5. Increasing interest rates (increases borrowing repayments, etc)

6. End of season approaching (if you depend on hot weather, etc)

Project Appraisal
It means the assessment of a project. Project appraisal is made both proposed and executed projects.

Methods of Project Appraisal

1. Economic Analysis. ( requirement of raw material, level of capacity, utilization, anticipated
sales, anticipated expenses and the probable profits)

2. Financial Analysis. (working capital, fixed capital, fixed asset and current asset)

3. Market Analysis.

i) Opinion Polling Method

 a) Complete Enumeration Survey

b) Sample Survey

c) Sales Experience Method

d) Vicarious Method

ii) Life Cycle Segmentation Analysis

a) Introduction

b) Growth

c) Maturity

d) Saturation

e) Decline

4. Technical Feasibility

i) Availability of land and site

ii) Availability of other inputs like water, power, communication facility.

iii) Copying-with anti-pollution law

5. Managerial Competence

Ownership Structure

Proprietorship Partnership

firm Company

Co-operative society

Selection of an appropriate form of ownership structure

Nature of business- if business require pooling of capital and skill are generally run as
partnership

Areas of operation- local operation require proprietorship. National and international

businesses require company ownership structure.

Degree of control – direct control over business operation is required suitable ownership may
be proprietorship.

Capital requirement- if capital requirement is more so it is better to choose partnership firm.

 Capital
Entrepreneurship capital is defined as "a region's endowment with factors conducive to the creation of
new businesses" and it exerts a positive impact on the region's economic output. The production function model
is developed to test this positive impact and the model is estimated for various regions in Germany. Data were
acquired from a startup panel developed by the Centre for European Economic Research in Mannheim,
Germany, and is based on data provided biannually from the largest German credit rating agency, Creditreform.

Budgeting Project Profile Preparation

Here are seven tips and practices for creating a budget that supports your project:

1. The hardest project budget you‟ll ever write is the first one. After that, you have both a model for
budgeting similar projects, and the experience for writing detailed budgets going forward. For your
first budget, get help from an experienced team member or mentor. If you‟re a collaborative group,

get input from everyone‟s work estimates. The point is, you don‟t have to do this alone.

2. Learn from other projects. Find a past project that was similar in type or scope to the current one,
and use it a model. Some teams turn to their project management tool to mine data and information on
how much time and money went into certain projectsand identify where resources were added or
subtracted.
3.2 Matching Entrepreneur with the

Project Steps for 'Starting up a

Business' Introduction

An entrepreneur possessing the keen attitude for setting up a small scale unit and fomulate a business
plan and take a number of steps to give shape to his business today idea. He is to prepare project report and
obtain various approvals and sanctions. The various steps to be taken by entrepreneurs to start a small
business unit.

Step 1 : Selection of the Product

The economic viability of product should cover the following demand aspects,
 Volume of existing demand in the domestic market
 Volume of aggregate existing demand
 Volume of potential demand
 The degree of import substitution
 Degree of substitution of an existing product
 The volume of demand by big unit for ancillary product

Step 2 : Selection of firm of ownership

The most commonly chosen firms of ownership for SSI are

 Sole proprietorship
 Family ownership
 Partnership
  Private limited company

Step 3 : Selection of Site

An entrepreneur has ve options for the selection of site,

1. From state development corporation like SIDCO, SIPCOT, MMDA, TNHB

2. From the industrial estate constructed by the state industrial development agency (SIDA)

3. Choose from plot/sheds developed by private developers

4. Buy private land and develop the same for industrial use

5. The last option is to select a site/shed available in free trade zone

 Step 4 : Designing Capital Structures

The initial capital of a new venture comes from the following sources,
 Own capital
 Long tem loan
 Tefirm loan from banks and nancial institutions

Step 5 : Acquisitions of Manufacturing know-how?

Many institution like government research laboratories, research and development divisions of
industries and also individual consultants provide the manufacturing know - how. In the case of ancillary units,
it is provided by the main unit itself, both domestic as well as foreign.

Sometimes, it is provided by the plant and machinery suppliers, both domestic as well as foreign. The
scale of operation is linked closely with technology, nancial and market demand

Step 6 : Preparation of Project Report

The project report may contain the following feasibility

 Technical feasibility
 Economic viability
 Financial implication
 Managerial competency

3.3 Feasibility Report Preparation and Evaluative Criteria

1. General Information

The feasibility report should include an analysis of the industry to which the project belongs. It
should deal with the past performance of the industry. The description of the type of industry should also be
given (i.e) the priority of the industry, increase in production, role of the public sector, allocation of investment
funds, choice of technique etc. This should contain information about the enterprise submitting the feasibility
report.

2. Preliminary Analysis of Alternatives

This should contain present data on the gap between demand and supply for the outputs which are to
be produced, date on the capacity that would be available from projects that are in production or under
implementation at the time the report is prepared.

All opinions are technically feasible should be considered at this preliminary stage. An account of the
foreign exchange requirement should be taken. The profitability of di erent opinions should also be looked into
an account of the foreign exchange requirement should be taken.

3. Project Description
The feasibility report should provide a brief description of the technology chosen for the project.
Information relevant for determining the optimality of the location chosen should also be included.

3. Marketing Plan

It should contain the following items/ data on the marketing plan. Demand and prospective supply in
each of the area to be served.

The method and the data used for making estimates of domestic supply and selection of the market
area should be presented.

4. Marketing Plan

It should contain the following items/ data on the marketing plan. Demand and prospective supply in
each of the area to be served.

The method and the data used for making estimates of domestic supply and selection of the market
area should be presented.

5. Capital Requirement and Cost

The estimates should be reasonably complete and properly estimated information on all items of costs
should be carefully collected and presented.

6. Operating Requirements and Cost

Operating cost are essentially those cost which are included after the commencement of
commercial production.

Information about all items of operating cost should be collected. Operating cost relate to cost of raw materials
and intermediaries, fuels, utilities, labour, repair and maintenance, selling and other expenses.

7. Financial Analysis

The purpose of this analysis is to present measures to assess the nancial viability of the project. A
performance balance sheet for the project data should be presented.

Depreciation should be allowed on the basis specifiedby the Bureau of public enterprises.
Foreign exchange requirements should be cleared by the department of economic airs.

CHAPTER-4

Financial Planning
Working Capital Management
• Working capital management is concerned with making sure we have exactly the right amount
of money and lines of credit available to the business at all times
• Working Capital is the money used to make goods and attract sales
• The less Working Capital used to attract sales, the higher is likely to be the return on
investment
• Working Capital = Current Assets − Current Liabilities

Working Capital Management

 Cash Management
 Receivables Management
 Inventory Management

Cash Management
 Identify the cash balance which allows for the business to meet day to day expenses reduces cash holding
costs

Receivables Management
 Money which is owed to a company by a customer for products and services provided on credit
 Identify the appropriate credit policy
Inventory Management
Identify the level of inventory which allows for uninterrupted production
Reduces the investment in raw materials, minimizes reordering costs and hence increases cash flow
Inventory Management
A company's merchandise, raw materials, and finished and unfinished products which have not yet been sold.
These are considered liquid assets, since they can be converted into cash quite easily.

Techniques: -
• ABC
• JIT
• FSN
• VED
• BILLS OF MATERIAL
 • BIN CARDS
• EOQ-ECONOMIC RE-ORDER QUANTITY
• INVENTORY/TURNOVER

Inventory Management

Importance:-
– TRANSCATIONS MOTIVE:

It emphasizes the need to maintain inventories to facilitate smooth production and sales
operations
PRECAUTIONARY MOTIVE: -

It necessitates holding of inventories to guard against the risk of unpredictable changes

in demand and supply forces and other factors

– SPECULATIVE MOTIVE: -

It influences the decision to increase or reduce inventory levels to take the advantage of
price level fluctuations

Conflicting needs : -

– To maintain a large size of inventories of raw materials and WIP for efficient and smooth
production and of finished goods for uninterrupted sales operations

– To maintain a minimum investment in inventories to maximize profitability

Objective: -
– determine and maintain optimum level of inventory investment

– to maintain sufficient inventory for the smooth production and sales operations

– to avoid excessive and inadequate levels of inventories

– Making adequate inventories available for production & sales when required.

Benefits of holding inventories:

Avoiding losses of sales avoid non-supply of goods at times demands by understands.

Reducing ordering costs cost associated with individual order such as typing approving
mailiyet can be reduced.

Achieving efficient production run Supply of sufficient inventories protects against shortage of
raw materials that may interrupt production operation.

Cost of holding inventories:-

Ordering cost cost which are associated with placing of orders to purchase raw materials &
components. Salary, rent. “More the order the more will be ordering costs vice verse”.

Carrying costs cost involved in holding or carrying inventories like insurance. Charger for

covering risk, thefts. It includes opportunity cost.

Money blocked in inventories been invested. It would earn a certain return. Loss of such return may be
considered opportunity cost.

Models of inventory mgt:-

Several models & methods have been developed in recent past for determing the optimum level of
inventories.
Classified into two types:-

Deterministic models:-
There is no uncertainty associated with demand supply of inventory.

Probabilistic models:-
It always some degree of uncertainty associated with demand pattern & lead times of inventories. Unusually

deterministic models associated:

Economic ordering quantity.(EOQ)

ABC analysis.

Inventory return over ratio.

EOQ:

Important decision to be taken by a firm in inventory mgt is how much to buy at a time. This is called EOQ.

EOQ give solution to other problem like: How frequently to buy? When to buy? What should be the reserve
stock?

Assumptions:-

EOQ is based on certain assumption.

The firm knows how much items of particular inventories will be used or demanded. Use of

inventories/sales made by the firm remains constant, or unchanged.

The moment inventories reach the zero level, the order of inventory is placed without delay. These

assumptions are also called limitations of EOQ.

Determination of EOQ:- Ordering

cost:
Cost concerned with the placing of an order to acquire inventories. Yes it way from time to time depending
upon the no of items orders places & no of items ordered in each order.

Carrying cost:
Cost related to carrying or keeping inventories in a firm.

Ex: interest on investment, obsolence, losses, insurance, premium. Volume of

inventory & carrying cost.

EOQ can be determined by an approach.

The order-formula approach:-
There are number of mathematical formula to calculate EOQ. The most frequently used formula is Q=

2Ux P / S

Q = EOQ.

U = Quantity purchased in a year/month.

P = Cost of placing an order. (ordering cost)

S = Annual/ monthly cost of storage of one unit known (carrying cost)

Trial & Error Approach:-

Carrying & ordering cost should be studied “order formula approach”.

Graphic Approach:
ABC Analysis:-

A – Items with highest value.

B – Items with relatively low value.

C – Items with least valuable.

A – items maintain bare minimum necessary level of inventories.

B – items will be kept under reasonable control.

C – items would be under simple control.

Human Resource Mobilization Meaning of Manpower Planning:
Small scale enterprises also need to draw plans to take various decisions and perform multi various activities. In simple
words, plans are basic to any sort of enterprise - whether large, medium or small. This includes the plans or provisions for
manpower also. Unfortunately, the man power planning is neglected area in the Indian context especially in small scale
industry.

Job Requirements:

The job requirements must be identified before an enterprise select employees for itself.

1. Conducting Job Analysis:

This is an investigation into various aspects of a task in terms of skill, qualification, duties and responsibilities.

It covers job title, the department to which it relates line of supervision, relationship with other jobs, types of
material and equipment used, mental and manual dexterity, working condition etc.
2. Job Description:

Simply stated, job description deals with what, why, when and how tasks are to performed. In other words, it is
a written statement of work conditions, time involvement and job responsibilities.
3. Job Specification:

Job specification is a description of the salient features of the person to be recruited in the specific job. It is
standard against which the salient features of the employee are matched how far he matches with the job
specifications. In other words, it describes the personal qualities of the employees like their knowledge, skills,
experience, qualities of leadership and decision making abilities etc.

Recruitment:

Recruitment in small scale industries is more difficult because they cannot compete with their large counterparts
in salary, fringe benefits and apparent stability. These limitations impose severe problems for small enterprises
for attracting qualified and committed work force. The entrepreneur should also strive hard to create a public
image of his enterprise as a worthy place to work and proper.

As regards recruitment in small scale industries, the most prevalent practice exercised in small scale units is to
seek out and select candidates rather than wait for applications as happens in the case of large scale industrial
unit. Broadly, these could be two sources of recruitment in small scale enterprises:

1. Internal Sources:

Internal sources refer to recruitment from the present workforce of the enterprise itself. Filling vacancies from
own existing employees boost the morale of the employees because they look forward scope and avenues for
their career development and advancement. Such hope for future often motivates the employees to put in their
best performance. This manner of recruitment has other side also. One of the serious drawbacks of this manner,
to mention, is what while the quality of level of employee‟s remains limited to that of the existing employees,
on the other hand, the advantages of including the induction of fresh blood is missed.

2. External Sources:

(a) Employees Referrals: Many a times, the existing employees of the enterprise and other sister
organizations can refer to suitable candidates. In this case, kinship, friendship and village ties of the
existing employees expectedly play a major role in the recruitment process.
 (b) Recommendations: Sometimes the entrepreneurs receive recommendations from their friends and
relatives to employ the persons known to them. The experience suggests that the entrepreneurs need to
be cautions in considering such recommendations. The best principle in such case will be ”Never hire
a person to please someone, make sure that you want him.”

(c) Unsolicited Applications: This is one of the common manners exercised to recruiting employees in
small enterprises. The enterprise receives application and require for jobs from several sources.

Although, the selection procedure varies from place to place and enterprise to enterprise, most commonly used
selection procedures in small scale industries are:

1. Preliminary Interview:

If the recruitment programme is non-selective, the preliminary interview is likely to be used in selection. This
interview is short, often lasting for ten-fifteen minutes. The basic purpose of the preliminary interview is to
determine an applicant‟s suitability for further consideration. The kind of work available in the enterprise is
explained by the interviewer. If there is felt some chance of successful placement, the applicant is allowed to
continue the rest of the selection procedure.

2. Application Blank:

It is commonly used in the selection process. Questions like work history, education level, work experience and
the type of work applied for are asked in the question blank. Application blanks certain questions related to the
probability of job success.

3. Psychological Test:

Most psychological tests administered in the enterprise are paper and pencil. The test taker is given a series of
questions and a choice of two or more possible answers to each question.

Aptitude Test: This is a test measuring intelligence of the applicant and his ability to learn certain skills.

Performance Test: It is a test that measures one‟s current knowledge of a specific test.

Personality Test: Under the test, an applicant‟s personality traits such as dominance, sociability and
conformity are measured.

Interest Test: As the name of the test itself denotes, this is the test measures one‟s interest
in various fields of work.

4. References:

Personal references are generally unreliable and biased. Many a times reference persons are not well qualified to
judge one‟s past work performance. Therefore, the names of previous employees and teachers are considered
more reliable and unbiased in giving judgment about one‟s past experienced/performance.
5. Interview:

Interview facilitates an interviewer to evaluate more eff ectively the applicant‟s potential for success in the
particular job. The basic objective of an interview device should be to measure those facilitating qualities and
traits that cannot be better measured by some other devices like testing or application blank.
 6. Physical Examination:

A physical examination is usually placed towards the end of the selection process. It gives the
enterprise current information about the applicant‟s physical health at the time of selection or hiring.

7. Placement:
Once a new employee has been selected, he/she is finally placed to perform the specific job. A new comer
should be properly introduced to his fellow workers, shown the location of facilities available, informed of
regulations if any and encourages asking any needed information.

8. Orientation:

The employees selected should be made familiar with their enterprises objectives and activities and acquainted
with their jobs. Thus begins their orientation period to learn about their work environment. Henceforth starting
the training and development of newly selected employees. Training and Development:

Objectives of Training:

1. To improve job performance by enhancing employee‟s knowledge and skill.

2. To prepare employee‟s well competent to discharge the new responsibilities.

3. To impart skill how to operate the new machinery and equipments.

4. To reduce the wastages and accidents.

Characteristics of a Successful Training Programme:

1. Its objectives and scope are clearly defined.

2. The training techniques are related directly to the need and objectives of the organization.

3. It employs accepted principles of learning.

Methods of Training:

1.On the job Training

(a) Demonstration.

(b) Performance

(c) (c ) Inspection
2. Apprenticeship Training

3. Job Rotation

4. Outside Training

Remuneration and Benefits:

Employees remuneration expressed in terms of wages is of critical concern to personnel relations in small scale
industry, whereas wages represent income to the employees, they represent cost of the employer and potential
taxes to the government. Wages constitute the largest part of the employee‟s purchasing power and therefore
have an important bearing on the level of economic activity.

Employee Benefits and Services:

1. Premium payments consisting of bonus

2. Payments for overtime
3. Payments for not-worked
4. Payments for employee welfare.

Production and Operation Management

Investment Analysis

Both launching new product first time or diversified the product line involve investment. Basic objective of
every investment is to maximise the profit. Hence the scarce capital should be invested in those opportunities
which could give the maximum return on capital employed (profit).

Tools for investment analysis:

NPV, IRR, Payback Period, ARR, Benefit cost Ratio.Technique of ratio analysis and capital budgeting have been used as
most important tool of investment analysis.

Ratio Analysis:
Ratio analysis established arthimetical relationship between two relavant figures.normally it is expressed in
percentage.

Return on proprietor’s fund( Equity)

Net Profit after tax and interest X100

Proprietors fund

Objectives of investment is to earn maximum profit whether investment to be worth making in terms of return
compared to risk.

Return on Capital Employed

Net profit before interest and tax X100

Capital Employed

Equity Capital = 5 lakhs, Loan = 3 lakhs, Rs. 80,000 net profit before tax and interest.

80,000 X100 = 10% (compare with other

industry) 8,00,000

Return on Total Investment

Net Profit after interest and tax X100 = Overall profitability of business.

Total Asset

Capital Budgeting
Involves investment decision balancing the sources and uses of funds for acquiring fixed assets like plant and
machinery. Investment in fixed asset implies the choice of a particular project. The project selection is made on
certain techniques.
Techniques of Capital Budgeting.

Pay Back or Payout Period

How long he / she to wait before the invested capital is recovered. Cash flow start coming and accumulate after
certain period of time, the accumulated amount equal to the original investment made.

Average rate of return

Accounting rate of return is a reverse of payback period method. Pay back based on cash flow. Average rate of
return based upon principles of accounting. It does not consider the time period. The average rate of return is
calculated by dividing the average net income after taxes by the average investment over the life of the project.

ARR = Average net income after tax X 100

Average investment over the life of the project. It ignore

time value of money.

Product Layout
During the course of technical arrangement of various facilities such as machinery, equipment etc., it is very
necessary to give considerable emphasis on a proper plant layout to achieving their optimum utilization.

Some important aspects while deciding the plant layout. There are

1. Production technology and production mix.

2. Efficiency, economic and uninterrupted flow of men and material

3. Adequate space for maintenance work

4. Scope for future expansion and diversification of the project

 5. Health conducive layout of the plant

6. Proper lighting and ventilation.

Marketing and Channel Selection

Before any production/ service is offered for sale to market, several decision need to taken in regarding
marketing. Ex: price of product has to determined, the methods of marketing has been identified and the
channels of distribution have to be worked out.

Marketing
Market : it is a place where the sellers and buyers assemble to exchange their products for money and vice
versa.Concept has been change time to time.

Traditional concepts:
Early days, „marketing ‟ includes activities involved in the flow of goods and services from production to
consumption.

Modern Concepts:
Due to changes of customers, behaviour concepts are also changed customers started to buy the goods or
services that were more beneficial to them in terms of quality, price, satisfaction, durability, look and so on. The
benefits to the consumers may be tangible and intangible.

The new approach relies on to produce the goods or offer services that satisfy the customers ‟
demands.

Traditional approach focus on the needs of the sellers (Buyers Beware). Modern

approach focus on the needs of the buyers. (sellers beware).

Problems of Marketing of small industries:

Competition with modern section
Lack of sales promotion

Weak in bargaining power

Market Assessment:
Demand forecasting

Demand refers to willingness and ability of customers to buy products or services. When we consider this
definition for all the potential customers having both willingness and ability to buy a product it is termed as
“total Market”.
There are number of techniques available for forecasting dmand.

Survey Method
 Statistical method

Leading indicator method

Market Segmentation:
Market segmentation is the sub- dividing of a market into homogeneous subsets of customers, where any subset
may conceivable be selected on a market target to be reached with a distinct marketing mix.

Basic of Market segmentation

Geographic variable
Demographic
variable Education
variable

Income variable

Marketing Mix:
Marketing mix classified the four factor under 4 P‟s vie Product, Price, Promotion, Place.

“Marketing mix is the tailoring the product its price, its promotion and distribution to reach the target
customers”.

Brand
A brand is a name, term, sign, symbol or design or a combination of them, intended to identify the goods or
services of one seller or group of sellers and to differentiate them from those of competitors.

Brand mark is a symbol or mark used fr the purpose of identification of the product.

Packaging
Packaging is an art science and technology of preparing goods for transport and sales.
Price is the money that customers must pay for a product or services. Pricing the product is something different
from its price.

Salient features:

Pricing cover all marketing aspect like the item- goods and service. Mode of payment, methods of distribution,
currency used etc. pricing may carry with it certain benefits to the customers like free delivery, guarantee,
installation from after sales servicing.

Pricing refers to different prices of a product for different customers and different prices for the same customers
at different times.

Factors affecting prices:

Economic and non- economic
 1. Product characteristics
2. Product cost
3. Objectives of the firm
4. Competitive situation
5. Demand for the product
6. Customers behaviour
7. Government regulation

Pricing methods / policies

Cost plus method

Total cost + profit = selling price. Total cost includes fixed cost + variable cost. Profit refers to margin.

Skimming Pricing:
It suitable for a product introduced is innovative and innovative and it used mainly by sophisticated group of
customers. High price is usually promoted by heavy promotion. Recover the cost with in a shorter period of
time.
Penetration Pricing:
It is Contrary to skimming to attract more customers are very particular for price and which product is an items
of mass consumption. Under this policy, the price of the product is set at lower level of penetrate into the
market.

Market rate policy

This policy adopts the prevailing market rates for determining the price of the product. Unusually this policy
used for unbranded products like oils, couriers, tailoring, repairing.

Variable price policy:

The price of the same product varies from customers to customers depending upon the situation prevailing in the
market.

Resale price Maintenance

The manufacturer of the product fixes prices of the whole seller and retailer. The retailer price of the product
like drugs and detergents are printed on the package. Retail price is fixed somewhat higher to meet of the cost of
inefficiency retailers not selling the goods timely.

Distribution Channels / Methods of Marketing

A channel of distribution or marketing channels is the structure of intra-company organisation units and extra-
company agents and dealers, wholesale and retails through which a commodity, product or service is marketed.

In view of number of intermediaries of the product channels it can be classified into three.

Zero level Channel producer to consumer

One level Channel Producer retailer consumer

 Two level Channel producer whole seller retailer consumer.

4.2Growth strategies in small

business Stages of Growth:-

Start-up:

It refers to the birth of a business enterprise in the economy.The production takes place in limited scale.The
enterprise is cot faced with any competition during this stage. Profits may not be earned during the start up
stage.

A. Growth stage
B. Expansion stage
C. Maturity stage
D. Decline stage
Types of growth:-
Strategy in a sense tactics to handle some technique to grow our business. Growth strategy mean a plan to help
the enterprise grow big course of time. Types of growth vary from enterprise.

1. Internal growth
2. External growth
Internal growth:-
These imply that enterprise grow their own without joining hands with other enterprises.

Expansion

Diversification. (FMCG Heavy vehicle manufacturing.) These

two are popular forms of internal growth strategies.

External growth:-
Enterprises grow by joining hands with other enterprises.

Joint ventures,
Mergers,
Sub-contracting.

INTERNAL GROWTH

Expansion
1) Production strategy:-
Focuses on the firms existing product in its existing market, & the entrepreneur attempts to penetrate this
product or market further by encouraging existing customers to buy more of the firms current
products.Marketing can be effective in encouraging more frequent repeat purchase.

2) Marketing development strategies:-

It involves selling the firms existing product to new groups of customers. New groups of customers can be
categorized in terms of geographic, demographic of based on a new product use. New location, new customer.

3) Expansion through product development / modification:-

It implies developing/modifying the existing product to meet the requirement of the customers.

Advantages:-
Expansion provides the following benefits growth through expansion is natural & gradual enterprise grows
without making major changes in its organisational structure.

Expansion makes possible the effective utilization of existing resources of an enterprise.

Diversification:-
Not possible for a business growth by adding the new product / market to the existing one, such an approach to
growth by adding new products to the existing product line is called “diversification” other word defined as “a
process of adding more product / market / service to the existing one.

L & T – engineering company – cement LIC –

mutual fund

SBI – merchant banking (expand their business activities)

Advantages:-
Diversification helps an enterprise make more effective use of its resource.

Diversification also helps minimize risk involved in the business.

Diversification adds to the competitive strength of the business.

Types of diversification:-
There are 4 types

1) Horizontal

2) Vertical

3) Concentric

4) Conglomerate
EXTERNAL GROWTH:

Joint venture:

Type of external growth J.V. is a temporary partnership b/w two or more firms to undertake joinly a complete a
specific venture.

The purties who enter into agreement are called co-ventures.

Purties are should b/w the co-ventures in their agreed ratio & in the absence of such agreement the profits or
losses are should equally.

Advantage:
1) J.V. reduce risk involved in business.

2) It helps increase competitive strength of the business.

Merger:
Merger means combination of 2 or more existing enterprise into one.

In other words, when 2 or score existing enterprises are combined into one it is called merger. It take

place in 2 ways.

Advantage Merger:
1) Provide benefits of economic scale in terms of production & sales.
2) It facilitate better use of resource.
3) It enables sick enterprise to merger into healthy ones.

Disadvantage:-
leads to monopoly in the particular some
Sub-contracting system:-
Sub-contracting system relationship exists when a company (called a contractor) places on order with another
company (called sub-contracter) for the production of parts components, sub-assemblies or assembliest be
incorporated into a product sold by the contractor.

Whirlpool sub contract

Large scale industries do not produce all goods on their own instead they reply on small scale enterprises called
sub-contractors for a great deal of production.

When the work assigned to small enterprise involves manufacturing wont it is called industrial sub- contracting.

In India sub-contracting has emerged in the name of an illarisation or ancillary units.

Advantage:-
It increase production in the fastest way without making much efforts.

The contractor can produce products without investing in plant & machinery.
It is suitable to manufacturing goods temporarily.

Product Launching
Launching a new product attracts consumers as well as corporate buyers, and informs the public about
your product and business. Your product launch needs to be exciting and informative. Here are a few
suggestions on how to launch a new product.
1. Design attractive packaging.

Create packaging that is colorful and pleasing to the consumer's eye. Smart packaging is the first step to
getting your new product noticed. Include your company name, product name and any main selling points you
want to convey on the outside of the packaging.

2. Determine your target audience.

Decide what demographic will benefit most from your product. This is the target audience that should
receive the most attention when you market a new product. Consumers of this age, gender and social and
economic background will be most receptive to the new idea and will, most likely, buy your product.

3.Implement a unique slogan.

Prepare for your product launch by creating a catchy and unique slogan that will be used to identify it.
The slogan should consist of simple language and could rhyme or contain words beginning with the same letter
to make it more memorable.

4. Know your competition.

Research products similar to the one you're planning to launch that are already well-known by consumers. Use
this information to direct the attention of your launch at ways that your product is different and better than the
competition.

5.Consult a public relations firm.

Work with a public relations agent with experience in your industry or in marketing new products. An expert
can help you solidify your target audience, determine the best forms of media advertising and plan promotions.

6.Write a product sheet.

Create a list of product features and details. This should explain the product to consumers while still making it
attractive. Include general usage, product components or ingredients and any relevant safety warnings or
liability information.

7.Launch a website.

Design a website advertising your new product and offering more information for consumers. Include user
testimonials, product comparisons and ordering information or promotional offers to entice buyers.

8.Purchase advertising.

Place ads in several media outlets to reach the maximum number of consumers. Websites work well for posting
ads and linking to the product's website. Buy ad space in local newspapers or trade publications to increase the
awareness of your new product.

9.Hold a press conference.

Schedule a press conference with consumers and members of industries related to your product or service. This
will allow you explain the product, offer samples, answer questions and create a buzz in
the industry.

Incubation
"Business incubation is a unique and highly flexible combination ofbusiness development processes,
infrastructure and people designed to nurture new and small businesses by helping them to survive and grow
through the difficult and vulnerable early stages of development."

Business incubation provide SMEs and start-ups with the nurturing environment needed to develop and
grow their businesses, offering everything from virtual support, rent-a-desk through to state of the art
laboratories and everything in between.

Business incubation provides a nurturing, instructive and supportive environment for entrepreneurs
during the critical stages of starting up a new business. The goal of incubators is to increase the chance that a
start-up will succeed, and shorten the time and reduce the cost of establishing and growing its business. If
successful, business incubators can help to nurture the companies that will form the true creators of a region‟s or
nation‟s future wealth and employment.

Incubators serve as a launching pad for young and small businesses. Start-ups, which are innately
dynamic entities, need access to support, and incubators are a means of providing this.
Centre for Innovation, Incubation and Entrepreneurship was setup at the Indian

Institute of Management Ahmedabad (IIMA) with support from Gujarat Government and
Department of Science and Technology (Government of India) to promote innovation and
entrepreneurship in India.
Venture capital
Venture capital (VC) is financial capital provided to early-stage, high-potential, growth startup
companies. The venture capital fund earns money by owning equity in the companies it invests in, which
usually have a novel technology or business model in high technology industries, such as biotechnology and IT.

Venture capitalists (VCs) represent the most glamorous and appealing form of financing to many
entrepreneurs. They're known for backing high-growth companies in the early stages, and many of the best-
known entrepreneurial success stories owe their growth to financing from venture capitalists.
Rapid, steady sales growth

 A proprietary new technology or dominant position in an emerging market

 A sound management team
 The potential for being acquired by a larger company or taken public in a stock offering

There are several types of venture capital:

Private venture capital partnerships

Industrial venture capital pools

Investment banking firms.

IT startups

Being an entrepreneur is tough. Having your startup make it past year one is even more so and
generating revenue can at times seem next to impossible. So, for those startups that have successfully gotten over
these humps and made it look easy.

There is additional encouraging news for aspiring entrepreneurs on many fronts, just in case you are
thinking about joining the existing ranks:

1. Valuations of successful startups have hit an all-time high.

2. Initial Public Offerings (IPO) are back as an exit strategy.
3. Funding for early-stage startups is more available than ever.
4. Cost of entry for a startup is at an all-time low.
5. Startup incubators and accelerators are popping up everywhere.
6. The world is a now single market, both homogeneous and heterogeneous.
7. Social media is a boon for entrepreneurs and startups.
8. Large corporations have lost their ability to innovate.
9. Entrepreneurs.
10. Baby Boomers are joining the fun in record numbers.

CHAPTER-5

Monitoring and Evaluation of Business

Monitoring is the systematic collection and analysis of information as a project progresses.

It is aimed at improving the efficiency and effectiveness of a project or organization. It is based on

targets set and activities planned during the planning phases of work. It helps to keep the work on track, and can
let management know when things are going wrong.

What monitoring and evaluation have in common is that they are geared towards learning from what you
are doing and how you are doing it, by focusing on:
Efficiency

Effectiveness
Impact

Efficiency tells you that the input into the work is appropriate in terms of the output. This could be input in
terms of money, time, staff, equipment and so on. When you run a project and are concerned about its reliability
or about going to scale, then it is very important to get the efficiency element right.

Effectiveness is a measure of the extent to which a development programmes or project achieves the specific
objectives it set.

1. Monitoring involves:

1. Establishing indicators (See Glossary of Terms) of efficiency, effectiveness and impact;

2. Setting up systems to collect information relating to these indicators;
3. Collecting and recording the information;
4. Analysing the information;
5. Using the information to inform day-to-day management.
6. Monitoring is an internal function in any project or

organisation. Evaluation involves:

Looking at what the project or organisation intended to achieve – what difference did
it want to make? What impact did it want to make?

Assessing its progress towards what it wanted to achieve, its impact targets.

Looking at the strategy of the project or organisation. Did it have a strategy? Was it
effective in following its strategy? Did the strategy work? If not, why not?

Advantages and Disadvantages of Internal And External

Evaluations Advantages of Internal Evaluations:

The evaluators are very familiar with the work, the organisational culture and the aims and
objectives.

Sometimes people are more willing to speak to insiders than to outsiders.

An internal evaluation is very clearly a management tool, a way of self-correcting, and much
less threatening than an external evaluation. This may make it easier for those involved to

accept findings and criticisms.

 An internal evaluation will cost less than an external evaluation.

Disadvantage
The evaluation team may have a vested interest in reaching positive conclusions about the
work or organisation. For this reason, other stakeholders, such as donors, may prefer an

external evaluation.

The team may not be specifically skilled or trained in evaluation.

The evaluation will take up a considerable amount of organisational time – while it may cost
less than an external evaluation, the opportunity costs may be high.

Advantages of External Evaluation

External evaluation (done by a team or person with no vested interest in the project)

The evaluation is likely to be more objective as the evaluators will have some distance from
the work.

The evaluators should have a range of evaluation skills and experience.

Sometimes people are more willing to speak to outsiders than to insiders.
Using an outside evaluator gives greater credibility to findings, particularly positive findings.

Disadvantage
Someone from outside the organization or project may not understand the culture or even what
the work is trying to achieve.

Those directly involved may feel threatened by outsiders and be less likely to talk openly and
cooperate in the process.

External evaluation can be very costly.

An external evaluator may misunderstand what you want from the evaluation and not give you
what you need.

Selecting an External Evaluator or Evaluation Team

Qualities to look for in an external evaluator or evaluation team:

(1) An understanding of development issues.

(2) An understanding of organisational issues.
(3) Experience in evaluating development projects, programmes or organisations.
(4) A good track record with previous clients.
(5) Research skills.
(6) A commitment to quality.
(7) Objectivity, honesty and fairness.
(8) Logic and the ability to operate systematically.
(9) Ability to communicate verbally and in writing.
(10)A style and approach that fits with your organisation.
 (11)Values that are compatible with those of the organisation.
(12) Reasonable rates (fees), measured against the going
rates.

4.2 Industrial

Sickness

DEFINITION
BY SICK INDUSTRIAL COMPANIES(SPECIAL PROVISIONS) ACT, 1985, SEC 3(1) (0)

“Industrial company(being a company registered for not less than five years) which has at the end of any
financial year accumulated loss equal to or exceeding its entire net worth and which has also suffered cash
losses in such a financial year immediately preceding such financial year”.

BY THE COMPANIES(SECOND AMENDMENT) ACT, 2002

Defines a sick company as one:

Which has accumulated losses in any financial year to 50 percent or more of its average net
worth during four years immediately preceding the financial year in question, or

Which has failed to repay its debts within any three consecutive quarters on demand for
repayment by its creditors.

STAGES OF INDUSTRIALSICKNESS

CRITERIA TO IDENTIFY INDUSTRIAL SICKNESS

Continuous decline in gross output compared to the previous two financial

years. Delays in repayment of institutional loan, for more than 12 months.

Erosion in the net worth to the extent of 50 percent of the net worth during the previous
accounting year.
 SIGNALS OF INDUSTRIAL SICKNESS
Decline In Capacity Utilization Shortage Of Liquid Funds
Inventories In Excessive Quantities

Irregularity In Maintaining The Bank Accounts Frequent Break Downs In Plant & Equipments
Decline In The Quality Of Products

Frequent Turnover Of Personnel Technical Deficiency

EXTERNAL CAUSES

Improper Credit Facilities Delay In Advancing Of Funds

Unfavourable Investment Climate Shortage Of Inputs

Import Restrictions On Essential Inputs Liberal Licensing Of Projects

Change In International Marketing ne Excessive Taxation Policy Of Government

Market Recession

INTERNAL CAUSES (FINANCIAL CONSTRAINTS)

Inappropriate Financial Structure Poor Utilization Of Assets

Inefficient Working Capital Management Lack Of Proper Costing And
Pricing

Absence Of Financing, Planning & Budgeting.

Rehabilitation Programme:

a) Change management

b) Development of a suitable management information system

c) A settlement with the creditors for payment of their dues in a phased manner, taking into
account the expected cash generation as per viability study

d) Determination of the sources of additional funds needed to refinance.

e) Modernization of plant and equipment or expansion of an existing programme or even

diversification of the products being manufactured.

f) Concession or reliefs or assistance to be allowed by the state level corporation ,financial

institutions and central government.

RECOMMENDATIONS:

I. A Financial reorganisation may involve some sacrifices by the creditors and shareholders of
the undertaking which can be in several forms:-
 1. Reduction of the par value of shares.

2. Reduction in rates of interest.

3. Postponement of maturity of debt.

4. Conversion of debt into equity.

5. Change in the nature of claim or obligation such as from secured to unsecured.

6. Concession by the Government in the form of reduction or waiving of indirect taxes,

electricity dues etc.

II. Monitoring and nursing the sick units during infancy

III. Incentives should be provided to professional managers helping in reviving sick units
IV. Issuing guidelines on major aspects that affect the image of the company

V. Brain storm with a select group to get creative ideas for improvement

VI. Adopt better practices, right technology, better work culture and professional management so that
the sick industries can improve their health as well as the economy.
4.3 Effective Management of small Business

Manage a business effectively, manage staff effectively, is the key to the establishment and growth of the
business. The key to successful management is to examine the marketplace environment and create employment
and profit opportunities that provide the potential growth and financial viability of the business. Despite the
importance of management, this area is often misunderstood and poorly implemented, primarily because people
focus on the output rather than the process of management.

Toward the end of the 1980s, business managers became absorbed in improving product quality, sometimes
ignoring their role vis-a-vis personnel. The focus was on reducing costs and increasing output, while ignoring
the long-term benefits of motivating personnel. This shortsighted view tended to increase profits in the short
term, but created a dysfunctional long-term business environment.

Simultaneously with the increase in concern about quality, entrepreneurship attracted the attention of business.
A sudden wave of successful entrepreneurs seemed to render earlier management concepts obsolete. The
popular press focused on the new cult heroes Steve Jobs and Steve Wozniack (creators and developers of the
Apple Computer) while ignoring the marketing and organizing talents of Mike Markula, the executive
responsible for Apple's business plan. The story of two guys selling their Volkswagen bus to build the first
Apple computer was more romantic than that of the organizational genius that enabled Apple to develop, market
and ship its products while rapidly becoming a major corporation.

MANAGING THE EXTERNAL ENVIRONMENT

Three decades ago, Alvin Toffler suggested that the vision of the citizen in the tight grip of an omnipotent
bureaucracy would be replaced by an organizational structure of ad-hocracy. The traditional business
organization implied a social contract between employees and employers. By adhering to a fixed set of
obligations and sharply defined roles and responsibilities, employees received a predefined set of rewards.

The organizational structure that Toffler predicted in 1970 became the norm 20 years later, and with it came
 changed concepts of authority. As organizations became more transitory, the authority of the organization and
firm was replaced by the authority of the individual manager.

MANAGING THE INTERNAL

Effective communications play an integral role in managing and operating any successful business. With open
communications changes and their effects on the organization are quickly shared. Your firm then has the time
and skills needed to respond to changes and take advantage of evolving opportunities.

The following checklist addressing how you would respond to an employee's suggestion provides an assessment
of the communication process in your business. Place a check next to the statements that are commonly heard in
your business.

Controlling Conflict
Another key to successful management lies in controlling conflict. Conflict cannot be eliminated from either the
business or the interpersonal activities of the enterprise. A measure of the organization's success is the degree to
which conflict can be exposed and the energies associated with it channeled to develop the firm. Although
establishing policies and procedures represents the tangible aspect of organization and management the
mechanisms to tolerate and embody challenges to the established operation serve as the real essence of a firm
that will survive and prosper.

Structural Issues

Organization
The effectiveness of a particular organizational form depends on a variety of internal and external events for
example:

 Competitors (number or activity)

 Technology (internal or external)
 Regulatory environment
 Customer characteristics
 Supplier characteristics
 Economic environment
 Key employees
 Growth
 Strategy (including new products and markets)

Structure
The essence of a successful organization can be more simply summarized than implemented. The following
checklist can help you determine measures to ensure your management structure is adequate. Check the entries
that apply to your firm and also find out what measures your company needs to take to improve its management
structure.

 Key market and customers are understood.

 Technology is mastered.
 Key objectives are articulated and shared.
  Major functions are identified and staffed.
 A hierarchy of relationships is established.
 A business team is in place and functioning.
 Measurable results are well above industry standards.

Employees are the best source of new hires.

Operating Reports
Operating reports form the organizational basis of your business. Such reports mirror the organization its
structure and function. They define key relationships between employees and can either minimize or increase
organizational stress.

For many businesses the following reports form the basis for analyzing the specific areas of a business (the
frequency of each report depends on the nature size and organization of your business). Check the reports your
firm currently generates.

Consider creating reporting systems where they are lacking.

 Case reports (daily, weekly, monthly)

 New orders and backlog (weekly, monthly)
 Shipments/sales (weekly, monthly)
 Employment (monthly)
 Inventory out of stock (weekly, monthly)
 Product quality (weekly, monthly)
 Accounts receivable aging accounts (monthly)
 Weekly overdue accounts
 Returns and allowances (monthly)

Production (weekly, monthly)


'
 A.R.J COLLEGE OF ENGINEERING AND
TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna
University, Chennai-25 (An ISO 9001:2015 Certified Institution)

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

BA4032&ENTREPRENEURSHIP DEVELOPMENT

QUESTION BANK

UNIT-I

ENTREPRENEURAL COMPETENCE

PART-A

1. What is an Enterprise?

2. Define Entrepreneur.

3. What is Intrapreneurship?

4. List out the Characteristics of Entrepreneur.

5. Mention the different features of an Entrepreneur.
6. List out some of the qualities of true Entrepreneur.
7. State the various functions of Entrepreneur
8. What do you meant by Achievement motivation?
9. What are the types of Entrepreneur?
10. What are the skills needed by an Entrepreneur?
11. What are the characteristics of successful entrepreneurs?
12. Write any four qualities of Entrepreneur.
13. What are the Factors affecting Entrepreneurship growth?
14. What are the Economic Factors?
15. What are the Social factors?
16. What are the Personality Factors?

PART - B
 1. Describe the types of Entrepreneurs? Which one do you think most suitable for India?
2. Elaborate the Concept of Entrepreneurial Personality with examples.
3. Discuss the knowledge & skills of Entrepreneur with neat sketch.
4. ‟Entrepreneurship as a Career‟- comment this statement.
5. Write a short note on Entrepreneurship.
6. Explain the Characteristics of Successful Entrepreneurs.
7. How Entrepreneurship as a Career? Explain.
8. Explain the Qualities of Entrepreneur.
9. Write a note on Women Entrepreneur in India.
10. What are factors affecting Entrepreneurship growth?

UNIT-II

ENTREPRENEURAL ENVIRONMENT

PART-A

What is Business Environment?

List out the objectives of Entrepreneurial Training.

What is Entrepreneurship Development?

List out the steps involved in Entrepreneurship Training Programme.

List out the contents of EDP.

What is DIC?

Mention the Nature of International Entrepreneurship.

Write a brief note on SISI.
What is the role of the Entrepreneurship in economic development?
What are the objectives of EDPs?
What are the phases of EDPs?
Define Training.
.What are the objectives of training?
What are the methods of training?

What are the characteristics of a successful Training programme?

What is on the job training?

What is Job Rotation?

What is Apprenticeship training?

.How training is given in the small scale industries?

What is Development?
Write any four financial institution names.
List of Loans available for starting Industrial venture in India.
 PART - B

1. List out phases of EDPs.

2. Write the essential components of training.
3. Write the Steps for Starting Small-Scale Industries.
4. What are the financial institutions which help entrepreneur?
5. What are the Entrepreneurial Initiatives in India- “Top Incubation Center”?
6. Is there any entrepreneurial Initiatives in India? Mention it.
7. What is a Micro, Small or Medium Enterprise?
8. What is the Role of Government in Supporting Entrepreneurship?
9. Is there any State Governments Incentives for Investors?
10. What are the Loans available for starting Industrial venture in India?

UNIT – III
BUSINESS PLAN PREPARATION
PART - A

1. What is project identification?

2. What is selection of product?

3. What is project formulated?
4. What is Technical feasibility?
5. What are the assessments of project feasibility?
6. What is financial planning?

7. What is debt equity consideration?

8. What is IFCI?
9. What are the objects of ICICI?
10. What is Venture capital?

11. What is export finance?

12. What is IDBI?

13. What is the assistance by commercial bank?

14. What are the special characteristics of International Trade?

15. What is Tax holiday?
16. What are the basic elements of export procedure?
17. How is documentation for exports prepared?
18. What is the role of the Institutional assistance for exporters?
19. What are the groups of Export credit and Guarantee Corporation?
20. What is International Collaboration?
21. What is Project?
22. What is Project Appraisal?
PART - B
 1. How to identify your product?
2. How to appraise the project?
3. What do you know about Pre-feasibility Studies?
4. Explain the Classification of Ownership Structure.
5. How do you prepare Business Plan?

UNIT – IV
LAUNCHING OF SMALL BUSINESS

PART - A
1. What is Market survey?

2. What is market assessment?

3. What is market segmentation?

4. What is pricing policy?

5. Define co-operative organization.

6. What are the types of co-operatives?

7. What are the types of growth strategy?
8. What is diversification?
9. What is Joint Stock Company?
10. What is marketing mix?
11. Define Branding.
12. What is Packaging?
13. What is distribution channel?
14. How to select a suitable channel?
15. What is Man power planning?
16. What is the identification of job requirements?

PART - B

1. What are the Marketing Strategies involved in Entrepreneurship?

2. Explain the pricing methods/policies.
 3. Detail notes on Distribution methods.

4. Detail notes on Working capital Management.

5. Write a note on Inventory Management.

6. Write a note on Production and Operation Management.

7. Detail notes on Growth strategies.

UNIT – V

MANAGEMENT OF SMALL BUSINESS

PART - A

1. State the Schumpeter’s view of entrepreneur.

2. Define Sickness.
3. What are the symptoms of Industrial sickness?
4. What are the consequences of industrial sickness?
5. What is an industrial estate?
6. What is self-sufficiency?
7. What are the major causes of sickness?
8. What is the rehabilitation of sick units?
9. What are the roles of government in preventing the sick units?
10. What are the institutions supporting the entrepreneurs?
11. What are the roles of financial institution in preventing sickness?
12. What are the various EDP’s conducted in India?
13. Define plant layout?
14. What is working capital?
15. How project report prepared?
16. What is feasibility report?
17. What is financial ratio analysis?
18. What is Fabian Entrepreneur?
19. What is Drone Entrepreneur?
20. What are the entrepreneurial performances in India?
21. Define Gestation Period.
22. What are tiny Units?
23. Characteristics of small scale business.
24. What is an Indigenous resource?
25. What are the key factors influencing the mobility of entrepreneur?
26. What are the advantages of Internal Evaluations?

PART - B
1. Why do monitoring and evaluation of Business?
2. Explain Advantages and Disadvantages of Internal and External Evaluations.
3. What are the Different Approaches to Evaluation?
4. What are the stages in Industrial sickness?
5. What are the signals and causes in industrial sickness?
6. What are the Governmental measures to combat industrial sickness?
7. What are the guidelines given by RBI related to Entrepreneurship?

**********
 A.R.J COLLEGE OF ENGINEERING AND
TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna
University, Chennai-25 (An ISO 9001:2015 Certified Institution)
 A.R.J COLLEGE OF ENGINEERING AND
TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna University, Chennai-25
(An ISO 9001:2015 Certified Institution)
DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

BA4032&ENTREPRENEURSHIP DEVELOPMENT

I Semester-2021

UNIVERSITY QUESTION PAPERS WITH ANSWER KEY

Date:04/12/2022 Session: AN
Max Marks: 100

PART A (10×2=20 MARKS)

1. Define entrepreneur?

According to J.B.say, “Entrepreneur is an Economic agent to unites all the means of production”

An entrepreneur is an individual who takes moderate risks and brings innovation.

An entrepreneur is a person who has possession of a new enterprise, venture or idea and assumes
significant accountability for the inherent risks and the outcome.

2. What do you meant entrepreneurship?

Entrepreneurship can be defined by describing what entrepreneurs do. For example: "Entrepreneurs use
personal initiative, and engage in calculated risk-taking, to create new business ventures by raising
resources to apply innovative new ideas that solve problems, meet challenges, or satisfy the needs of a
clearly defined market."
3. Types of Entrepreneurship?
The Improver
The Advisor
The Superstar
The Artist
The Visionary
The Analyst
The Fireball
The Hero
The Healer
4. What is Entrepreneurial competencies?
Entrepreneurial competencies refer to the specific knowledge, skills, and abilities that individuals need to successfully
create, manage, and grow a business. These competencies encompass a broad range of capabilities, including
opportunity recognition, strategic thinking, resource organization, and the ability to handle risks

5. Different b/w Entrepreneur and Entrepreneurship

 ENTREPRENEUR ENTREPRENEURSHIP

1) Entrepreneur is a person. 1) Entrepreneurship is a process.

2) Entrepreneur is an administrator. 2) Entrepreneurship administration.

3) Entrepreneur is a risk bearer. 3) Entrepreneurship is a risk

bearing activity.

4) Entrepreneur is an innovator. (4) Entrepreneurship is a process of

innovation.

5) Entrepreneur is an organizer. 5) Entrepreneurship is an

organization.

6. Define feasibility study?

In the context of entrepreneurship development, a feasibility study is a preliminary analysis that assesses the viability
and practicality of a proposed business venture before significant resources are invested. It's a comprehensive
evaluation that examines various factors critical to a project's success, including financial, technical, market, and legal
aspects.
7. Define business Environment ?

The emergence and development of entrepreneurship is not a spontaneous one but a dependent phenomenon
of economic, social, political, psychological factor often nomenclature as supporting condition to
entrepreneurship development.

These factor may have both positive and negative in uence on the emergence of entrepreneurship. Negative
influence create inhabiting milieu to the emergence of entrepreneurship. For analytical purpose this
conditions factor are grouped and discussed under two categories (i.e.) Economic factor and non-economic
factor

8. What do you mean by business plan?

In entrepreneurship development, a business plan is a formal document outlining a company's objectives, strategies,
and financial projections. It serves as a blueprint for starting and managing a business, guiding entrepreneurs through
various stages of development.

9. What are the scope of business plan?

 Setting Purpose and Direction

 Procedures and Evaluation
 Making a Long-term Strategy
 Financial Planning and Budgeting.

10. How to apply idea generation process?

To effectively apply the idea generation process in entrepreneurship, entrepreneurs should focus on identifying
 problems or opportunities, generating multiple ideas, and then evaluating and refining those ideas before implementing
them. This process involves brainstorming, market research, and potentially other techniques like design thinking.

PART – B (5x13=65)

11. a)State major entrepreneurial competencies ?Explain

Entrepreneurial competencies are the unique mix of knowledge, skills, motives, and traits that distinguish successful
entrepreneurs from others. These competencies are not just limited to business knowledge; they encompass a wide range of
personal and professional attributes that enable entrepreneurs to start and grow their businesses effectively.
Key components of entrepreneurial competencies
Knowledge: This includes understanding the market, industry trends, and the technical aspects of the product or service.
Skills: These are the abilities to perform tasks effectively, such as leadership, financial management, marketing, and
negotiation.
Motives: These are the driving forces behind the entrepreneur’s actions, such as the desire for achievement, independence,
and financial success.
Traits: These are the inherent characteristics that influence behavior, such as resilience, creativity, and risk-taking.
Initiative
Initiative is the ability to take charge and make things happen. Entrepreneurs with a strong sense of initiative don’t wait for
opportunities to come to them; they create opportunities. This proactive approach is crucial for driving innovation and
growth.
For instance, consider the story of Ritesh Agarwal, the founder of OYO Rooms. At a young age, Ritesh identified a gap in
the budget hotel industry and took the initiative to launch OYO, transforming the hospitality sector in India. His proactive
mindset was a key factor in his success.
Opportunity recognition
Opportunity recognition is the ability to identify and capitalize on potential business opportunities. This competency
involves keen observation, market research, and understanding customer needs.
Take the example of the e-commerce giant Flipkart. Sachin Bansal and Binny Bansal recognized the growing demand for
online shopping in India and seized the opportunity to create a platform that revolutionized the retail industry in the
country.
Persistence
Persistence is the ability to stay committed to your goals despite obstacles and setbacks. Entrepreneurs with persistence
don’t give up easily; they learn from failures and keep pushing forward.
Think about the journey of Kiran Mazumdar-Shaw, the founder of Biocon. Despite facing numerous challenges in the early
stages of her biotech venture, her persistence and determination helped her build one of India’s leading biopharmaceutical
companies.
Problem-solving
Problem-solving is the ability to identify solutions to complex issues. This competency involves critical thinking, creativity,
and analytical skills.
Consider the example of UrbanClap (now Urban Company). The founders identified the problem of unreliable and
unorganized home services in India and developed an innovative platform to provide reliable and professional services to
customers.
Self-confidence
Self-confidence is the belief in one’s abilities and decisions. Entrepreneurs with high self-confidence are more likely to take
calculated risks and trust their instincts.
For example, Bhavish Aggarwal, the co-founder of Ola Cabs, demonstrated immense self-confidence when he decided to
enter the highly competitive ride-hailing market in India. His confidence in his vision helped Ola become a dominant
player in the industry.
Information seeking
Information seeking is the ability to gather relevant data and insights to make informed decisions. Entrepreneurs who
actively seek information are better equipped to navigate uncertainties and make strategic choices.
Take the case of Byju Raveendran, the founder of BYJU’S. His commitment to continuous learning and information
seeking helped him create an innovative edtech platform that has transformed education in India.
Quality concern
Quality concern is the commitment to delivering high-quality products and services. Entrepreneurs who prioritize quality
build a strong reputation and customer loyalty.
Consider the example of Tanishq, a leading jewelry brand in India. The company’s unwavering focus on quality and
craftsmanship has earned it a loyal customer base and a strong market presence.
Commitment
Commitment is the dedication to achieving long-term goals. Entrepreneurs with a strong sense of commitment are willing
to invest time, effort, and resources to realize their vision.
For instance, N.R. Narayana Murthy, the co-founder of Infosys, demonstrated exceptional commitment to building a global
IT services company. His dedication to excellence and ethical business practices played a significant role in Infosys’s
success.
Efficiency orientation
Efficiency orientation is the focus on optimizing resources and processes to achieve maximum productivity. Entrepreneurs
who prioritize efficiency can streamline operations and reduce costs.
Systematic planning
Systematic planning is the ability to develop detailed plans and strategies to achieve business objectives. This competency
involves setting clear goals, outlining steps, and anticipating potential challenges.
Consider the case of Tata Motors. The company’s strategic planning and innovation have enabled it to launch successful
products like the Tata Nano, which addressed the need for affordable transportation in India.
Assertiveness
Assertiveness is the ability to express one’s ideas and stand up for one’s beliefs. Entrepreneurs with assertiveness can
effectively communicate their vision and negotiate favorable outcomes.
Think about the journey of Indra Nooyi, the former CEO of PepsiCo. Her assertiveness and strong leadership skills helped
her navigate the corporate world and drive significant growth for the company.
Persuasion
Persuasion is the ability to convince others to support your ideas and initiatives. Entrepreneurs with strong persuasion skills
can rally support from investors, partners, and customers.
For example, Ratan Tata’s persuasive abilities played a crucial role in securing international partnerships and expanding
Tata Group’s global footprint.
Influence strategies
Influence strategies involve the ability to shape opinions and behaviors to achieve desired outcomes. Entrepreneurs who
master influence strategies can build strong networks and drive positive change.
Consider the case of Swati Bhargava, the co-founder of CashKaro. Her ability to influence and build strategic partnerships
has helped CashKaro become a leading cashback and coupon platform in India.
Monitoring
Monitoring is the ability to track progress and performance to ensure that goals are met. Entrepreneurs who excel in
monitoring can identify issues early and make necessary adjustments.
Take the example of Zoho Corporation. The company’s focus on continuous monitoring and improvement has enabled it to
develop a wide range of successful software products.
Employee welfare
Employee welfare is the commitment to creating a supportive and positive work environment. Entrepreneurs who prioritize
employee welfare build motivated and loyal teams.
For instance, Flipkart’s emphasis on employee welfare, including initiatives like flexible work arrangements and wellness
programs, has contributed to its success as an employer of choice in India.

( OR)

b)What are the Characteristics of entrepreneur ?

 Capacity to take risk

 Capacity to work hand
 Above average intelligence and wide knowledge
 Self Motivation
 Vision and foresight
 Willingness to defer consumption
 Incentive ability and sound judgment
 Flexibility and sociability
 Desire to take personal responsibility.
 Desire to seek and use feedback
 Persistence in the face of adversity
 Innovativeness and future orientation
 Mobility and drive
 Creative Thinking.
 Strong need for achievement
 Ability to Marshall resources
 High degree of ambition
 Will to conquer & impulse to fight.
 Will to prove superior to others.

12. a)Explain the government policies and regulations in support of entrepreneurship

Government Policies For Small Scale Industries

India has recently been described as the world’s only genuinely emerging market at the moment. The growing SME sector
of India propels a portion of this development. The Small and medium-sized sector accounts for over 40% of the total GDP
and continues to be a vital source of jobs for the increasing population of India. Recognising the significance of Local
SMEs in the government has launched several schemes to boost the SME sector.

As a result, India is experiencing a boom in startups in all industries, including IT, service delivery, wellness, technology,
and others. The government has launched several schemes to make the process quick in order to enable young
entrepreneurs to kickstart startup companies that will ultimately generate job opportunities. The majority of these schemes
offer financial aid in the form of subsidies and loans to prospective individuals and organisations.

Beneficial Government Policies for Budding Entrepreneurs

1. Atal Incubation Centre (AIC)

Atal Incubation Centre is a funding scheme that Started in the year 2016. Envisioned by the NITI Aayog, this aims at
supporting entrepreneurs by covering their operating costs of capital. The approved business ventures can avail up to Rs. 10
crore over a five-year term. Atal Incubation Centre allows researchers, students, and startup owners to apply for the scheme
across different verticals and sectors. The entrepreneurs can set their company as a Public-private partnership, Public
organisations, or as a completely private organisation. The entrepreneur needs to set up space of around 10,000 sq. ft. and
should set up the physical infrastructure within six months of disbursement of financial assistance.

2. MSME Business Loans in 59 Minutes

Right now, the MSME Business Loans in 59 Minutes is undoubtedly the most discussed business loan scheme. This
program was introduced in the year 2018 by the Government of India. This scheme is introduced to provide financial
assistance to micro, small, and medium enterprises. The entrepreneurs can avail of loans of up to one crore under this
scheme. This scheme is very quick and, within 59 minutes, you will know about your eligibility. Disbursement of the
financial assistance happens within 1-2 weeks. A majority of the public sector banks are a part of this scheme.

3. National Small Industries Corporation Subsidy

NSIC subsidy offers two forms of financial benefits for small businesses: Raw Material Assistance and Marketing
Assistance. Raw Material Assistance helps to purchase raw materials from abroad and from India. Marketing Assistance,
on the other hand, helps to improve the sales of products and services with an efficient marketing process. The program is
introduced to provide loans to SMEs who are looking for growth or rapid expansion.

4. MSME Market Development Program

This development program is designed to provide market expansion assistance to micro, small, and medium enterprises
using international events, trade fairs, and roadshows. This system helps in the growth of the business by providing them
assistance in terms of expansion into international markets.

Any startup organisation registered under District Industries Centre can apply for this program under which the to and fro
travelling expenses will be borne by the government for participating in international exhibitions. Not only that, it bears
half of the accommodation charges and ¾ amount of the participation charges.

5. MUDRA Loans

The Government of India initiates MUDRA loans for providing business finance for micro-business units. This program
was launched with the single motive of ‘paying the unfunded’. Since most of the time, the small-medium enterprises suffer
from lack of funds, the government launches this program to encourage participation and growth of the startups across
different sectors like trading, manufacturing, services, etc.

6. Swarojgar Credit Card

Swarojgar Credit Card was initiated to provide loans to small-time businessmen like fishers, homemakers, travel operators,
shopkeepers, etc. Under this scheme, the small-time business owners can take a loan of Rs. 25000 in terms of credit card
facilities. A passbook is also provided to keep track of the financial transactions. The card will be valid for five years and
can be renewed upon satisfactory results from the initial investments.
7. Coir Udyami Yojana

The primary objective of this scheme is to build coir units throughout India. This Coir Board oversees this system which
provides financial assistance up to Rs. 10 lakh to eligible units. However, the credit term should not exceed one-quarter of
the project value. Individual entrepreneurs, joint ventures, private institutions, the public-private enterprises can avail of
benefits under this scheme.

8. Refinancing by NABARD

This program launched by NABARD focuses on providing refinancing to lending institutions in agricultural areas. This
aims to provide growth to rural enterprises based in diverse areas. Various handicraft manufacturing industries, rural
institutions, agricultural setups have taken part in this scheme and made rapid growth.

9. The Women Entrepreneurship Platform

The Government of India introduced the Woman Entrepreneurship Platform to promote women’s entrepreneurship. The
NITI Aayog is the primary driver behind this program and aims to boost the morale of young and dynamic woman
entrepreneurs. This scheme has got three divisions: Gyaan, Iccha, and Karma Shakti. Iccha Shakti aims to empower women
to start a company. Gyaan Shakti offers a favourable environment for setting up a business.

Whereas, Karma Shakti provides practical help to bussing women entrepreneurs to start their own business or scale them
up. Any form of the organisation - be it NGO, Corporations, and associations - led by women entrepreneurs can apply
under this program. This scheme provides several other benefits such as mentoring, credit score improvement, and tie-up
with corporate, etc.

10. Stree Shakti Package

The Stree Shakti Package is provided in India by most branches of the State Bank of India (SBI) and focuses on providing
women in business with a business loan. The biggest benefit of this startup business loan for women is that loans up to Rs.
5 lakh need no protection. In addition, some concessions are made by the bank, such as having a reduced interest rate in the
event of the loan exceeds Rs. 2 lakh. But the main downside of this loan is that it is only open to women who hold a 51% or
greater share in the business.

11. Venture Capital Scheme

This Venture Capital Scheme is a program run by Small Farmers Agribusiness Consortium. This program aims to improve
agricultural production. Under this program, the Small Farmers Agribusiness Consortium helps in the development of the
agricultural market and improvement in the marketing of agricultural products. The minimum value of the business should
be 50 lakhs to become eligible for this program.

12. End to End Energy Efficiency Scheme

The End to End Energy Efficiency scheme was launched in the year 2016. The SIDBI initiates this program in
collaboration with the Government of India. Any micro, small, or medium enterprise that is in the business for three years
and earning revenue for two years can avail of benefits under this scheme. However, this scheme is designed to support
only energy-efficient units that need to do an energy audit through an auditor affiliated with the Bureau of Energy
Efficiency. The startups can also purchase equipment using this line of business finance.

13. Credit Link Capital Subsidy Scheme

This scheme helps small-medium enterprises to improve their productivity through technological upgrades. Technological
upgrades can be attributed to different processes and systems related to the business, such as sales, marketing, delivery
module, etc. The Government of India launched the Credit Link Capital Subsidy Scheme to reduce the cost of production
for SMEs, thus enabling them to remain competitive in comparison with other players in local and foreign markets.

14. Standup India

The government of India started the Standup India program in the year 2016. It is launched with the sole aim of promoting
entrepreneurship and startup cultures in India and is driven by the Small Industries Development Bank of India. The SMEs
can avail of loans of up to one crore under this program. This scheme enables you to take a loan of up to 75% of the total
project cost.

b)What are the process of entrepreneurial decision ?

Entrepreneurial refers to the mindset and activities of individuals who identify opportunities, take risks, and create new
ventures. Entrepreneurs innovate, drive economic growth, and solve problems by developing unique products or services.
This concept encompasses creativity, leadership, and resilience, as entrepreneurs navigate challenges to establish and grow
their businesses while contributing to societal progress and job creation.

Entrepreneurial Decision-Process:

The entrepreneurial decision process is a systematic approach that entrepreneurs use to make critical decisions in the course
of starting and managing their businesses. This process involves several key stages, each contributing to effective decision-
making.

1. Identifying the Problem or Opportunity

The first step in the entrepreneurial decision process involves recognizing a problem that needs solving or an opportunity
worth pursuing. Entrepreneurs must be observant and attuned to market trends, customer needs, and potential gaps in the
industry. This stage requires research, analysis, and an understanding of the environment to define the specific challenge or
opportunity.

2. Gathering Information

Once a problem or opportunity is identified, entrepreneurs gather relevant information to inform their decision-making.
This includes market research, competitor analysis, customer feedback, and financial data. Entrepreneurs may also seek
evnert oninions or consult with mentors and advisors to gain insights and broader perspectives.

3. Generating Alternatives

After collecting information, entrepreneurs brainstorm potential solutions or strategies. This creative phase involves
thinking outside the box and considering various alternatives. Entrepreneurs can use techniques such as mind mapping,
SWOT analysis (Strengths, Weaknesses, Opportunities, Threats), and brainstorming sessions to generate a wide range of
options.
4. Evaluating Alternatives

In this stage, entrepreneurs assess the viability of each alternative. They analyze the pros and cons, potential risks, and
impacts of each option on their business goals. Decision matrices, cost-benefit analyses, and risk assessments can help
entrepreneurs compare alternatives systematically and make informed choices

5. Making the Decision

After evaluating the alternatives, entrepreneurs must make a choice. This decision can be influenced by various factors,
including intuition, experience, and the potential impact on stakeholders. Entrepreneurs should consider both short-term
and long-term consequences when finalizing their decision.

Implementing the Decision Once a decision is made, entrepreneurs move to the implementation phase. This involves
putting the chosen solution or strategy into action. Effective implementation requires planning, resource allocation, and
coordination among team members. Entrepreneurs must communicate their vision and expectations clearly to ensure
alignment and commitment from their teams.

8. Monitoring and Evaluating Outcomes The final stage of the entrepreneurial decision process involves monitoring the
outcomes of the decision. Entrepreneurs need to assess whether the chosen solution effectively addressed the problem
or seized the opportunity. This evaluation can include analyzing key performance indicators (KPIs), soliciting
feedback, and making necessary adjustments based on the results.

9. 8. Learning from Experience Every decision provides valuable insights for future decision-making. Entrepreneurs
should reflect on the outcomes, successes, and failures of their decisions to learn and adapt. This continuous learning
process enhances their ability to make better decisions in the future and fosters a culture of innovation within the
organization.
 A.R.J COLLEGE OF ENGINEERING
AND TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to
Anna University, Chennai-25 (An ISO 9001:2015 Certified Institution)

DEPARTMENT OF AGRICULTURAL ENGINEERING

AI3301 PRINCIPLES OF SOIL SCIENCE AND ENGINEERING

ASSIGNMENT NO: 1
GIVEN DATE: TARGET DATE:
BATCH REGISTER. NO NAME ASSIGNMEN CO
T
TOPIC
820124631002 ARCHANA. U.C
1 8201224631003 ASALYA .A
8201224631004 ATCHAYA .P
8201224631006 GAANAPRIYA .B.M
2 8201224631008 HEMA PRABHA.A.K
8201224631009 KANISHKA .C
8201224631010 KAVIYA .R
3 8201224631011 KAVIYARASI .S
8201224631012 KEERTHIGA .A
8201224631014 MADHUMITHA .M
4 8201224631015 PRAVEENRAJ .R
8201224631016 PRAVINA .M
8201224631017 RAJMOHAN .B
5 8201224631019 SANTHIYA .S
8201224631020 SHARMILA .S
8201224631021 SRIDEVI .N
6 8201224631022 SRUTHI .P
8201224631023 SUJITHA .B
8201224631024 SWADHEE.K
7 8201224631025 VAINESH .R

Faculty Incharge HOD/CSE

HANDWRITTEN SAMPLE COPY
 A.R.J COLLEGE OF
ENGINEERING AND
TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna University, Chennai-25
(An ISO 9001:2015 Certified Institution)

DEPARTMENT OF AGRICULTURAL ENGINEERING

AI3301 PRINCIPLES OF SOIL SCIENCE AND ENGINEERING

ASSIGNMENT NO: 2

GIVEN DATE: TARGET DATE:

BATCH REGISTER. NO NAME ASSIGNMEN CO
T
TOPIC
820124631002 ARCHANA. U.C
1 8201224631003 ASALYA .A
8201224631004 ATCHAYA .P
8201224631006 GAANAPRIYA .B.M
2 8201224631008 HEMA PRABHA.A.K
8201224631009 KANISHKA .C
8201224631010 KAVIYA .R
3 8201224631011 KAVIYARASI .S
8201224631012 KEERTHIGA .A
8201224631014 MADHUMITHA .M
4 8201224631015 PRAVEENRAJ .R
8201224631016 PRAVINA .M
8201224631017 RAJMOHAN .B
5 8201224631019 SANTHIYA .S
8201224631020 SHARMILA .S
8201224631021 SRIDEVI .N
6 8201224631022 SRUTHI .P
8201224631023 SUJITHA .B
8201224631024 SWADHEE.K
7 8201224631025 VAINESH .R

Faculty Incharge HOD/CIVIL

HANDWRITTEN SAMPLE COPY
 A.R.J COLLEGE OF
ENGINEERING AND
TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna University, Chennai-25
(An ISO 9001:2015 Certified Institution)

DEPARTMENT OF AGRICULTURAL ENGINEERING

AI3301 PRINCIPLES OF SOIL SCIENCE AND ENGINEERING

Course Code & Name: AI3301 Principles of soil science and Academic Year : 2023-
engineering
Department: Agricultural Engineering 2024 Date :
Year / Semester: II / 03

In Internal Assessment 1, 2 students are identified as a slow

Description of the Problem
learners

Evidence Observed Test paper analysis

Potential Impact of the If it continues, they may got poor marks in their end semester
Problem exams also

Conducting Extra Coaching for slow learners for making them

Remedial Actions Required
to got good marks in their exams

‫ٱ‬ ‫ٱ‬
Actions Completed
Date:
By : Ms. M. Narmada priyadarsini

Results :
Improvement Test can be conducted & the students cleared in retest are 2 students. At the end,
the number of slow learners is reduced from 2 to Nil.
HANDWRITTEN SAMPLE COPY
 A.R.J COLLEGE OF ENGINEERING
AND TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna University,

Chennai-25 (An ISO 9001:2015 Certified Institution)

DEPARTMENT OF AGRICULTURAL ENGINEERING

GAPS IN THE SYLLABUS

Name
N.Narmadha Academic 2023-2024
of the Designation AP
priyadarsini year (ODD SEM)
faculty
Year/ III / Principles of soil
SUB science and
Semester V Section -
Engineering

Soil Organisms and the carbon cycles

Title of the Content
To bridge that gap seminar was given to the students to
Proposed Action familiarize in the topics of Soil organisms and the carbon
cycles

Seminar has been given to the following students to bridge the gaps in the syllabus,

Reg. No. Name Topic

820122225006 ARCHANA R
820122225011 DEEPIKA I Soil Organisms

820122225024 SRIRAM K
8201222250025 SURENDAR M The carbon cycles

FACULTY IN-CHARGE HOD/Agri

 A.R.J COLLEGE OF ENGINEERING AND
TECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna University, Chennai-25
(An ISO 9001:2015 Certified Institution)

DEPARTMENT OF AGRICULTURAL ENGINEERING

II YEAR / III SEMESTER
Content beyond the Syllabus
Name of the Ms.N.Narmada 2023-2024
Designation AP Academic Year
Faculty priyadharsini (ODD SEM)
Class/Year AE / 02 Sem 03 Section --
Principles of soil science and
Course Code Ai3301 Course Title
engineering
Title Brief description of important rocks

To give basic idea about the Important Rocks

Objectives

Outcomes To understand that the Rock cycle in earth’s crust

ROCKS
Igneous, Sedimentary and Metamorphic Rocks

Rocks are the materials that form the essential part of the Earth’s solid crust. A rock may be defined as a
hard mass of mineral matter comprising two or more rock forming minerals. Petrology (in Greek, petra
means rock, logos means science) deals with science of rocks. It consists of

a. Petrography which deals with the description of rocks.

b. Petrogenesis which is the study of the origin of rocks.

Formation of rocks:

 Cooling and consolidation of molten magma within or on the surface of earth results in the formation of
Igneous or Primary rocks
 Disintegration and decomposition lead to the breaking down of pre-existing rocks. Transportation and
cementation of primary rocks results in the formation of Sedimentary or Secondary rocks
 The primary and the secondary rocks when subjected to earth’s movement and to high temperature and
pressure are altered to new rocks called Metamorphic rocks
Classification of rocks

According to the mode of formation the rocks are divided into the following three main classes.
1. Igneous or Primary rocks
2. Sedimentary or Secondary rocks
3. Metamorphic rocks
1. Igneous rocks (primary or massive rocks)
These are first formed in the earth crust due to the solidification of molten magma. They are the source
of parent material for other rocks and ultimately for soils.
Based on the mode of origin Igneous rocks are classified as
 Extrusive rocks (or volcanic rocks)
These rocks are formed due to the consolidation of magma on the surface of the earth. The
magma, when flows on the Earth surface are called LAVA. eg. Basalt
 Intrusive rocks (or plutonic rocks)
These rocks are produced due to solidification of magma below the surface of the earth. These
intrusive rocks solidifies at greater depths. eg. Granite.
Based on chemical composition Igneous rocks may be divided into
 Acid rocks : > 65% silica (Granite, Rhyolite)
 Sub acid rocks : 60-65% silica (Syenite and Trachyte)
 Sub basic rocks : 55-60% silica (Diorite and Andesite)
 Basic rocks : 45-55% silica (Gabbro, Basalt)
2. Sedimentary rocks (Clastic or stratified rocks)
The sedimentary rocks are formed from sediments, derived from the breaking down of pre-existing
rocks. The sediments are transported to new places and deposited in new arrangements and cemented to form
secondary rocks. Sediments may contain various size particles cemented together by substances like SiO 2,
Fe2O3 or lime. These rocks are called as clastic rocks. Stratification is the most common feature of these rocks
and are also termed as stratified rocks.
 Based on the origin the sedimentary rocks are classified as

1. Residual: Laterite

Laterite is well known in Asian countries as a building material for more than 1000 years. It was excavated from
the soil and cut in form of large blocks; temples at Angkor are famous examples for this early use. At begin of the
19.century it obtained scientific interest when the English surgeon Francis Buchanan travelled along the western coast of
southern India and published his manifold observations and results. He coined the term laterite when he wrote (1807):
“What I have called indurated clay …is one of the most valuable materials for building. It is diffused in immense masses,
without any appearance of stratification and is placed over the granite that forms the basis of Malayala. It is full of cavities
and pores, and contains a very large quantity of iron in the form of yellow and red ochers. In the mass, while excluded
from the air, it is so soft, that any iron instrument readily cuts it, and is dug up in square masses with a pick-axe, and
immediately cut into the shape wanted with a trowel, or large knife. It very so after becomes as hard as brick, and resists
the air and water much better than any brick that I have seen in India. The most proper English name would be laterite,
from laterites, the appellation that may be given to it in science”. (The Latin word later means brick)

2. Transported

a. Deposited as solids in suspension : Sandstone, shale

b. Deposited by chemical precipitation : Limestone, ironstone

c. Deposited through agency of organic matter : Peat, Phosphatic deposits

Based on the grain size sedimentary rocks are classified as

1. Rocks with boulder pebbles sized minerals (Rudaceous) : Conglomerate

2. Rocks with sand size particles (Arenaceous) : Sandstone

3. Rocks with silt size particles (silt rocks) : Siltstone

4. Rocks with clay size particles (Argillaceous) : Shale

3. Metamorphic rocks
 These are formed from igneous and sedimentary rocks under the influence of heat, pressure, chemically active
liquids and gases. Changes may occur in mineral composition of rocks or texture or both. The change due to water is
called hydrometamorphism, due to heat is thermometamorphism and due to pressure is called dynamometamorphism.

Sand stone : Quartizite

Shale : Slate/mica, schist
Lime stone : Marble
Granite : granite gneiss
Dolerite : Hornblende gneiss

Relative abundance of rocks in earth’s crust

Composition of Earth’s crust as a whole

 Igneous Rocks - 95%

 Sedimentary Rocks - 5%
- Shales - (4.0%)
- - (0.75%)

Sands
tones
- - (0.025%)
Limes
tones
Composition of the upper 5 km of the Earth’s crust

 Sedimentary Rocks
Shales 52%

Sandstones 15% (74%)

Limestones and dolomite 7%

 Igneous Rocks

Granite 15%

Basalt 3%

 Others 8% (8%)

 Total 100
Rock Cycle
BRIEF DESCRIPTION OF IMPORTANT ROCKS

♣ Mineralogical Composition

Igneous Rocks

S.No Rocks Origin Essential Common Average Remarks

minerals minerals specific
gravity

i. Granite Plutonic Quartz Hornblende, 2.64 Light

holocrystalline (20 to 30%) magnetite, mica coloured
white or
reddish

ii. Syenite Plutonic Quartz, Hornblende, 2.80 Light

Holocrystalline orthoclase magnetite, coloured
biotite white or
reddish

iii. Diorite Plutonic Quartz Hornblende, 2.85 Darker

Holocrystalline magnetite,
biotite

iv Gabbro Plutonic Labradorite, Hornblende, 3.0 Blackish

Holocrystalline augite, olivine ilmenite

v. Dolerite Hypabasal Labradorite, Hornblende, 3.0 Blackish

augite, olivine ilmenite

vi. Basalt Volcanic crystalline Labradorite, Hornblende, 3.0 Blackish

with glassy mass augite, olivine ilmenite
Sedimentary rocks

S.No Rock Mineral composition Colour and structure

1. Sandstone Mainly quartz with some CaCO3, iron oxides and clay Light to red, granular

2. Shale Clay minerals, quartz and some organic matter Light to dark thinly laminated

3. Limestone Mainly calcite with some dolomite, iron oxides, clay, Light grey to yellow, fine
phosphate and organic matter grained and compact

Metamorphic rocks

S.No. Rock Mineral composition Colour and structure

1. Gneiss Formed from granite Alternating light and dark colours, banded
and foliated

2. Schist Formed from basalt or As original rock, foliated

shale

3. Quartzite Formed from sandstone Light ot brown, compact and uniform

texture, foliated structure

4. Slate Formed from shale Grey to black, compact and uniform

texture, foliated structure

5. Marble Formed from lime stone Light red, green, black, compact fine to
coarse texture, foliated structure

Igneous Rock

Faculty Incharge HOD

 A.R.J COLLEGE OF ENGINEERING
ANDTECHNOLOGY
Edayarnatham – Mannargudi.
Approved by AICTE, New Delhi & Affiliated to Anna University, Chennai-25
(An ISO 9001:2015 Certified Institution)

DEPARTMENT OF AGRICULTURAL
ENGINEERING II YEAR / III
SEMESTER
Improvement Test 1 – Attendance

B.Tech - AGRICULTURAL ENGINEERING

ACADEMIC YEAR : 2023-2024 / ODD SEMESTER

SUBJECT CODE : AI3301
SUBJECT NAME: PRINCIPLES OF SOIL SCIENCE AND ENGINEERING
SUBJECT INCHARGE : Mrs.M.Narmada Priyadarsini

S.No Register Number Name Attendance

1 820122225001 ABIMANYU V
2 820122225013 HARISH S
3 820122225015 JEEPIKA K
4 820122225018 KRISHNAPRIYA R
5 820122225019 MUNISHWARAN S
6 820122225021 PARIJATHAM S
7 8201222250026 YOUTHNATHAN V

Faculty Incharge HOD