entrepreneurship devlopment(utkarsh)

7/29/2019 Entrepreneurship Devlopment(Utkarsh)

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ENTREPRENEURSHIP DEVLOPMENTLAB RECORDDept. of Electrical & Electronics Engg.

R.I.E.T Bhankrota jaipur-302026

Submitted to:- Submitted by:-

Kamal Bishnoi Utkarsh SharmaIII Yr.

Roll No:-74

Batch B-2


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CONTENTS

Definition Of Entrepreneur

Procedures And Formalities For Starting Own Business

Market surveyKnowledge Based EnterprisesMotivationLeadershipA Standard Business Plan OutlineCentral Government Policies and Schemes


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Definition Of Entrepreneur

Essentially, an entrepreneur is a person who starts a new business venture.However, we tend to think of entrepreneurs as people who have a talent for seeing opportunitiesand the abilities to develop those opportunities into profit-making businesses.

Are entrepreneurs born or made? The debate still rages, but the current consensus is thatsuccessful entrepreneurs share a constellation of personality traits. In other words, some people

are naturally more entrepreneurial than others.

A common misperception about entrepreneurs is that entrepreneurs are wild risk-takers.

Entrepreneurs do take risks, but only calculated ones. One of the abiliities successfulentrepreneurs share is the ability to evaluate risks.

If you're wondering whether or not you have what it takes to be an entrepreneur, you'll findmore links to more information about entrepreneurial traits in the sidebar. But remember, you

don't need to have all the traits associated with entrepreneurship to be a successful entrepreneur.

The main quality you need is a determination to make your business venture succeed. The restof the qualities necessary to being a successful entrepreneur you can learn.

The concept ofentrepreneurship has a wide range of meanings. On the one extreme

an entrepreneur is a person of very high aptitude who pioneers change, possessingcharacteristics found in only a very small fraction of the population. On the other extreme of

definitions, anyone who wants to work for himself or herself is considered to be anentrepreneur.

The word entrepreneuroriginates from the French word, entreprendre, which means "to

undertake." In a business context, it means to start a business. The Merriam-Webster Dictionarypresents the definition of an entrepreneur as one who organizes, manages, and assumes the risks

of a business or enterprise.

Schumpeter's View of Entrepreneurship

Austrian economist Joseph Schumpeter 's definition of entrepreneurship placed an emphasis oninnovation, such as:

new products new production methods


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new markets new forms of organization

Wealth is created when such innovation results in new demand. From this viewpoint, one candefine the function of the entrepreneur as one of combining various input factors in an

innovative manner to generate value to the customer with the hope that this value will exceedthe cost of the input factors, thus generating superior returns that result in the creation of wealth.

Qualities Of A Successful Entrepreneur:-

All successful entrepreneurs have the following qualities

Be Practical:

Being practical is the first quality any entrepreneur must be able to master if they want to be

successful. Practicality would give that successful entrepreneur the ability to make decisions onbusiness matters with a clear frame of mind and common sense. This results in them seeing

things that others may not. We must remember that not all products sell. A successfulentrepreneur would be able to see this and make decisions based on unbiased information,

current knowledge and past experience. They must not let external factors affect their

judgement and understand that the rise or fall of a business will highly depend on the decision

that they make.

Imagination and creativity:A successful entrepreneur must also be imaginative and creative. They must be able to look

outside the square and see things others do not. They must be able to offer solutions to difficultproblems as well as being able to brainstorm ideas for their products. They must be able to

create a business that will set them apart from others.

An achiever:Another key quality of a successful entrepreneur is that they are achievers. Getting things done

is important. Remember you need to keep driving your business vehicle until you are satisfiedwith the result and achieved your goal. Those that stop halfway will never see what they can

really achieve. Successful entrepreneurs are the ones that are persistent, motivated, independentand hardworking. They have a clear vision of what they want to achieve and set out to form a

plan, followed by an action in order to reach their goals. They are proactive and get things


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done.

Self Discipline:

Those who are self disciplined are one step closer to becoming a successful entrepreneur. Weall would love to have fun instead of work, or watch TV instead of doing our tax but remember

it is this self control that distinguishes those that are successful to those that are not. When youwant to succeed in anything, not just business, you must teach yourself time management, stress

management and also be able to separate work from play.

Independence:Not only do successful entrepreneurs have to possess self discipline but they must also show

independence. Being independent means that they are aware of the decisions needed to be madeand can make them on their own. They are not afraid of being alone and being different. They

understand what is required of the business and are the decision makers.

TakeAction:Remember business means business and if you keep sitting on the fence you will always be the

watcher. To be a successful entrepreneur you must chose which side of the fence you want tojump over to and make the most of it. Do not ponder on all the pros and cons of a problem too

much and delay important projects. You must be a quick thinker and act fast. When necessarymake a choice, take action and deal with all the obstacles as they come. Be productive. Sitting

around and waiting for things to happen is not going to make you a successful entrepreneur.

Patience:

Patience is the key to success. We all know that a business needs time to build up. Success doesnot happen overnight (unless extremely lucky). Entrepreneurs understand this and often like to

put ideas into actions and wait to see the results. Whatever the results may be they often goback and tweak their ideas to produce better results. This is what differentiates a successful

entrepreneur from one that is not so successful.

Determination:

Another quality that entrepreneur must have in order to succeed is determination. In the

business world it comes without saying that competition is everywhere and this can lead peopleto lack the confidence e and motivation required to succeed. A successful entrepreneur can take

failure as it is and then tries again, maybe using a different approach. Point is they believe intheir ability to become successful and it is this belief that allows them to stand up again after

they fall.

Motivation:Motivation is a skill that entrepreneurs cannot lack. In any business venture there is bound to be


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both success and failure. A successful entrepreneur must not let failure block their view of what

could be a successful business. If they can put aside the disappointment and motivatethemselves to try again, they are one step closer to reaching their goal. When all enthusiasm and

motivation is lost then this is when the business is also lost.

Procedures And Formalities For Starting Own Business

This information will be useful for those who are looking in a nutshell the steps involved to

start a Private Limited company in India

1. First and foremost identify the Directors of the Company. Minimum of two directorsneed to present and Maximum of 8 is allowed.

2. All Directors should have DIN (Directors Identification Number). If you do not have oneyou can apply DIN online

atwww.mca.gov.in.

Documents required for DIN

A. Identity Proof (Any one of the following)

PAN Card

Driving License

Passport

Voter ID Card
http://www.mca.gov.in/http://www.mca.gov.in/http://www.mca.gov.in/http://www.mca.gov.in/


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Others (to be specified)

B. Residence Proof (Any one of the following)

Driving License

Passport

Voter ID Card

Telephone Bill

Ration Card

Electricity Bill

Bank Statement

Others (to be specified)

3. Once you have got your DIN then you need to apply for Company name. You need to go

with 5-6 names in the order which you prefer.If the name is not available then they go to the

next one in the order you have provided.

4. You need to apply online for the name availability . You need to Fill in Form 1A. Forms are

avilable at this

location.http://www2.mca.gov.in/MinistryWebsite/dca/downloadeforms/eformTemplates/1

030-Form1A_help.zip

5. Once you have got your name approved you have to apply for the Incorporation of Company.

For this youwill have to prepare Memorandum of Association which will detail what the company;s

operations the first list of directors

who are going the be in the board need to be defined in this document. This should be applied

along with Form 1

http://www2.mca.gov.in/MinistryWebsite/dca/downloadeforms/eformTemplates/1022-

Form1_help.zip. Ocne this has been approved make atleast 10-15 copies of your Certificate of

Incorporation and Memorandum of Association and have it in a booklet form.

6. Once your company has been incorporated you can open a Current account in any of theleading banks

for carrying out your operations. You will need to submit a copy of Certificate of Incorporation

and Memorandum of Association along with Borad resolution to open the bank account.
http://www2.mca.gov.in/MinistryWebsite/dca/downloadeforms/eformTemplates/1030-Form1A_help.ziphttp://www2.mca.gov.in/MinistryWebsite/dca/downloadeforms/eformTemplates/1030-Form1A_help.ziphttp://www2.mca.gov.in/MinistryWebsite/dca/downloadeforms/eformTemplates/1030-Form1A_help.ziphttp://www2.mca.gov.in/MinistryWebsite/dca/downloadeforms/eformTemplates/1030-Form1A_help.ziphttp://www2.mca.gov.in/MinistryWebsite/dca/downloadeforms/eformTemplates/1022-Form1_help.ziphttp://www2.mca.gov.in/MinistryWebsite/dca/downloadeforms/eformTemplates/1022-Form1_help.ziphttp://www2.mca.gov.in/MinistryWebsite/dca/downloadeforms/eformTemplates/1022-Form1_help.ziphttp://www2.mca.gov.in/MinistryWebsite/dca/downloadeforms/eformTemplates/1022-Form1_help.ziphttp://www2.mca.gov.in/MinistryWebsite/dca/downloadeforms/eformTemplates/1022-Form1_help.ziphttp://www2.mca.gov.in/MinistryWebsite/dca/downloadeforms/eformTemplates/1030-Form1A_help.ziphttp://www2.mca.gov.in/MinistryWebsite/dca/downloadeforms/eformTemplates/1030-Form1A_help.zip


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7. Then you need to apply for TAN and PAN for the Company

https://tin.tin.nsdl.com/pan/form49A.html

https://tin.tin.nsdl.com/tan/form49B.html

8. If your services are in Software related area you can apply for STPI license which will giveyou certain benefits

like Company need not pay tax for 5 years, there will be no import or expurty duty levied on

software/hardware,

You will get office spaces at lower rates at STPI units. These are few of the benefits of

becoming an STPI member.

All this you can do on your own or you can outsource these to professional auditor. We did it

through Auditor and it took almost three weeks (Upto Step 7 excluding STPI) and all

charges(excluding sTPI) would approximately cost you Rs.25,000.

Financial Support System

State Bank of India provides liberalised credit to Small Scale Industries (SSI ). This is linked togenuine requirements . No collateral is required upto Rs,5 lakhs. Composite term loans

including working capital are given upto Rs.25 lakhs.

Small Industries Development Bank of India (SIDBI) was established in April 1990 under anAct of Indian Parliament as a wholly-owned subsidiary of Industrial Development Bank of

India. SIDBI has since completed 8 years of service to the small scale sector. As at March 31,1998, SIDBI had a total staff strength of 861 comprising of 685 professionals and 176 support

staff.SIDBI's statute provides that it should serve as the principal financial institution for: Promotion

Financing and Development of industry in the small scale sector and Co-ordinating thefunctions of other institutions engaged in similar activities.

Financial Assistance to Small Scale Units: Delhi Financial Corporation (DFC).For existing borrowers. Maximum limit upto Rs 150 lakhs over and above the term loan

sanctioned by DFC subject to a maximum exposure of Rs. 240 lakhs. In partnership and

proprietary units the maximum limit of loan shall be Rs. 90 lakhs including existing exposure ofDFC.
https://tin.tin.nsdl.com/pan/form49A.htmlhttps://tin.tin.nsdl.com/pan/form49A.htmlhttps://tin.tin.nsdl.com/tan/form49B.htmlhttps://tin.tin.nsdl.com/tan/form49B.htmlhttps://tin.tin.nsdl.com/tan/form49B.htmlhttps://tin.tin.nsdl.com/pan/form49A.html


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Market survey

Market survey is an essential tool in building a successful business strategy; a simple, self-help

customer or consumer survey can transform your business.

A market survey is an important requirement for initiating any successful business. The

objective ofa market survey is to collect information on various aspects of the business. This survey is a

toolThrough which we can minimize risk. After the market survey, the results must be analyzed in

order

To finalize a business plan. In practice many marketing techniques and practices are no more

than applied common sense, and are essential tools in building and running a successful smallbusiness. One of the most useful marketing tools is the market survey, or consumer survey.

Importance of market survey.

A market survey is a useful tool for contact with the market


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The systematic and intelligent use of this tool can reduce risks of decision making under conditions of uncertainty

Through a market survey we can obtain information in the following areas:

size of market

pattern of demand buying habits and motives past and present trends for this or other products

A generalized market survey or customer survey can provide the answers to the four centralquestions which any business needs to ask:

Who are our core customers or clients?

What do they want? How can we best provide it? How can we tell them about it? However, market surveys can also be used to answer more specific questions:1. How is a projected new product likely to be received?2. How do customers perceive the value of our product? Is our pricing right?3. Where should we place our advertising?4. Is our advertising cost effective?5. How do customers/clients perceive our businesss strengths and weaknesses.


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Knowledge Based Enterprises

In our work with business leaders we have found that what they are looking for is anorganization that is entrepreneurial. They want both people and total organizations that are

innovative, responsive and creative enough to impact decisively the ecology of the society andmarketplace they operate in. They want their enterprise to generate new conditions in the

market to which others must now respond. What they are after is an "EntrepreneurialEnterprise."

An organization that can accomplish this kind of impact is truly an "Intelligent Organization"

that is co-evolving in a wider ecology of economic, knowledge and social concerns. As

economic success is driven more and more toward reliance on knowledge as the source ofcommercial and technical advantage it is imperative that firms organize themselves around their

capacity to generate, share and use knowledge rapidly and effectively. Organizations will needto "understand" the wider patterns of changing technologies, economic forces and social

concerns if they are to respond effectively, and they will need to account for the reflexive natureof their response. Their adjustments to the market will alter the market landscape. In this


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environment those strategies that are designed to alter the market will be most powerful.

Entrepreneurial action will be the attractor that unites intelligent organizations.The Knowledge Management "movement" is only the first step in this direction, and

organizations that embrace the use of technologies and practices designed to enhance the

"capture" and "transmission" of knowledge artifacts will definitely have the advantage overthose that wait.

The real pioneers, however, are now taking a broader perspective that includes exploring thehuman side of knowledge ecosystems. It is there that the real potential for innovation, agility,

and entrepreneurial intelligence lies. What this consortium focuses on is integrating all aspectsof a knowledge ecology into new ways of organizing, new management practices, new

approaches to worknew ways of doing business.

Scope Of Entrepreneur In Present Context

Risk taking ability, Self-confidence, Decision making ability, Knowledge of cumin growing toharvesting technology, Economic motivation, Market orientation, Risk factors, Soil and firm

condition of experiences, Water resources, Water quality and volumes, need to cumin for alltechnical factors, Ability of co-ordination to cumin related activities, Achievement, Motivation

etc. indicators are behavior of entrepreneurial.

Entrepreneurship has gained greater significance at global level under changing economic

scenario. Global economy in general and Indian economy in particular is poised for accelerated

growth driven by entrepreneurship. Admits environment of super mall culture we find plenty of

scope for entrepreneurship in trading and manufacturing.

An entrepreneur is a person who is able to look at the environment, identify opportunities toimprove the environmental resources and implement action to maximize those opportunities

(Robert E. Nelson) it is important to bear in mind the entrepreneurial skills that will be neededto improve the quality of life for individuals, families and communities and to sustain a healthy

economy and environment. Taking this into consideration, we will find that each of the

traditional definitions has its own weakness (Tyson, Petrin, Rogers, 1994, p. 4).

The first definition leaves little room for innovations that are not on the technological ororganizational cutting edge, such as, adaptation of older technologies to a developing-country

context, or entering into export markets already tapped by other firms. Definingentrepreneurship as risk-taking neglects other major elements of what we usually think of as

entrepreneurship, such as a well-developed abilitytorecognize unexploited market opportunities.

Women Entrepreneur:


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Women entrepreneurs have been making a significant impact in all segments of the economy in

India, Canada, Great Britain, Germany, Australia and the United States. The areas chosen bywomen are retail trade, restaurants, hotels, education, cultural, cleaning, insurance and

manufacturing The New Thrust suggests following two factors pulling or pushing women in an

entrepreneurship Factors leading women to be an entrepreneur:Women entrepreneurs choose aWomen takes up businessenterprises to Profession as a challenge and an get over financial

difficulties and respond- adventure with an urge to do some - sibility is thrust on them due tofamily -thing new, liking for business and circumstances. to have an independent occupation

With the spread of education and new approaches/awareness, women entrepreneurs areachieving higher level of 3Es, namely: (i) Engineering (ii) Electronics (iii) Energy. Though we

should not forget certain Psycho-Social Barriers which hinders the growth of women

entrepreneurs.

Opportunities :

Free entry into world trade. Improved risk taking ability. Governments of nations withdrawn some restrictions Technology and inventions spread into the world. Encouragement to innovations and inventions. Promotion of healthy completions among nations Consideration increase in government assistance for international trade. Establishment of other national and international institutes to support business among

nations of the world.

Benefits of specialization. Social and cultural development

Challenges: Problems of raising equity capital Difficulty in borrowing fund. Thought-cut completions endangered existence of small companies. Problems of availing raw-materials. Problems of obsolescence of indigenous technology Increased pollutions Ecological imbalanced. Problems of TRIPS and TRIMS. Exploitation of small and poor countries, etc.


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Suggestions Govt. should provide separate financial fund of womens entrepreneur. We should provide her special infrastructure facilities what ever she deeds. Govt. should arrange special training programmes of women entrepreneurship Govt. should felicitated top ranker womens entrepreneur. Women entrepreneur should more competitive and efficient in the local &

international market.

Use should invite successful women entrepreneurs from foreign countries.

Present Entrepreneurial Scenario:

Mr. Ratan Tata had clearly articulated to us his vision for Tata Motors. The company has very

successfully launched its passenger cars- Indica and Indigo and recently in January 2008they have set a benchmark in the history of four-wheeler industry all around the globe by

offering their masterpiece NANO to be the worlds cheapest car worth 1 Lac rupees only. The

company has also taken over the business of Corus, a giant in the steel industry.

Vijay Mallya and talk of innovation, to hit the Indian market. Vijay Mallya s mission was tocreate brand Kingfisher as a generic brand for lifestyle. There happened to be some sort of

compatibility between the way he lived his life and the brand image that he was thinking tocreate. One of the key ingredients of innovation is to simply be yourself. He did the

restructuring process of United Breweries without any sense of embarrassment. We are allsometimes stymied, curbed and limited by ourselves. Philips, Sony, Honda, Ford provide the

signposts of entrepreneurship today for all to emulate. Some of these have come up only inrecent years and from small beginnings. In India, too, one sees glimpses of such

entrepreneurship. ICICIs experience tells a great deal about entrepreneurship good as well asnot so good.

Following Indian firms will keep on dominating the corporate world in the future too

Tata Steel & Motors Indian Oil Corporation Reliance industries Infosys Technologies Moser Baer Bharti Tele-ventures


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Area of future Entrepreneurship

Interest in entrepreneurship has witnessed significant growth these past five years. A simplecount of the number of times the word appears in newspapers and magazines and the number of

features on successful entrepreneurs verifies this new development.

Until this new wave of interest, entrepreneurship was a word few had heard and a topic only afew had real interest in. Previously, individuals felt that the economic well-being of the United

States-and indeed the worldrevolved around big business and government support. Largecorporations were considered to be the driving force behind an economy, as evidenced in

attempts such as those of Ireland and Puerto Rico to attract large multinational firms through

the use of tax incentives. The perceived key to economic growth for these cultures was to attract

as many large corporations as possible. Some corporations did locate manufacturing facilities(but not research and development and marketing functions) in these "tax havens."

Similar incentives were offered by various areas in the United States hoping to attract a plantrelocation or expansion as well as the occasional regional or corporate relocation. Each city or

county followed the procedure of the less developed countries-offering tax incentives,infrastructure support, and other inducements in an attempt to entice the large corporations'

expansion or relocation efforts.Bigger Isn't Always Better

When it was recognized that large corporations did not create economic well-being, thegovernment was expected to take up the slack. These areas became "quasi-welfare states," with

the government playing a major role in providing desired jobs and income. In some areas, thissupport eventually accounted for more than 50 percent of total expenditures. Big was beautiful,

whether in the form of government or business.Academic institutions, too, were immersed in this trend. Students were prepared to be managers

by learning how to mind the store, and to avoid challenging the beliefs and assumptions of theorganization. Emphasis was on organizational structure, lines of responsibility and authority,

and key management principles--planning, staffing, organizing, directing, and control. Little, ifany emphasis was placed on innovation, creativity and "doing your own thing."

The few courses which departed from this approach were generally presented as "small

business" courses, whether in management, marketing or finance. Most such courses merelyattempted to downsize key concepts developed for the larger organization to a smaller one.There was little discussion and even less career counseling, about starting one's own business.

Instead, the concern of the college or university was to have more of the large and prestigiousfirms on the school's recruiting list. Graduates were prepared to successfully interview, survive,

and (hopefully) succeed in a corporation, partly by building large organizations underthem.


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Catch phrases were: "don't take any risks," "protect your rear," and "follow the mentoring of

someone higher up in the organization, riding on their coattails."The media, too, focused on large organizations and growth. A new plant locating in a city was

heralded-in a half page of coverage--as a great boost to the area's economic well-being, while a

new software company received very limited coverage, if any at all. Little attention was paid totechnological breakthroughs such as the creation of new breeds of livestock or strains of grain,

or to the dynamic growth of chains of pizza restaurants or convenience stores.GrowingInterest in Entrepreneurship

Motivation

Entrepreneurship to a great extent is a product of motivation. Motivation here refers to theinner drive that ignites and sustains behavior to satisfy needs. Behavior is always caused and it

is not spontaneous. In other word, human behavior is goal directed towards satisfaction ofneeds.

Several research studies have been carried out to identify the factors that motivate people to

start business enterprise. There are internal and external factors that motivate a person tostart up an enterprise. Internal factors are: Educational background, occupational experience,desire to do something pioneering and innovative, desire to be free and independent and family

background. On the other hand the external factors are: Assistance from government, financial

assistance from institutions, availability oftechnology or raw material, encouragement frombig business units and heavy demand for product.


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Internal Factorsconstitute the personality of the entrepreneur and thereby generate an

inclination to adopt entrepreneurial activity. The presence of these factors is essential forentrepreneurial activity to take place. But entrepreneurial ambitions cannot fructify without a

supporting environment.External factors providing this environment give a spark to

entrepreneurship.

Among, the internal motivation the desire to do something creative was important. It means thedesire to make contribution to the development of the state and country, to introduce an

entirely new product in the market, to make full use of technology, to provide employment tointelligent men and women in the community etc.

External Factors, like assistance from financial and other institutions was rated the

strongest motivator. Other factors include availability of surplus funds, sick units available at

a cheap rate, success stories of first generation entrepreneurs, support of friends and relatives

etc.In some cases there were compelling reasons like loss of job, death of father,dissatisfaction with the job held etc,prompting people to launch their own industries.

High need for achievement is essential for a successful entrepreneur.Achievement motivation

can be developed through training and experience. Ambition is the level of all motives andnourishes achievement motivation. Lack of ambition or low level of ambition is the major

cause of backwardness. Achievement motivation training is essential for entrepreneurshipdevelopment. In these training laboratories are used for developing achievement motivation.

These labs provide experimental learning situations which help the trainees to examine their

outlook and attitudes and modify them.

Leadership

Leadership:-Leadership is a process of influencing the behaviour of people at work towards the

achievement of specified goal.

The following elements must be present in the leadership.

(a)It is the process of influence;(b)The influence is always for achievement of common goal;(c)There must be minimum two or more persons present, influencing your own behaviour is

not leadership.


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(d)The influence should be to get the willing co-operation of the employees and not theforceful co-operation.

Common Ways of Influence

(David Kepvins Seven Influence Strategies

The behaviour of the employees can be influenced in the following manner:

a) Reasons. By giving the logic the managers can influence the behaviour of employees.b) Friendliness. Some managers use supportive need of friendliness to influence the

behaviour of employees.c) Cohesion. Sometimes by working in a group you can influence the behaviour of other

members of the group.d) Bargaining. Influencing the behaviour by offering some incentives such as promotion,

bonus, increments etc.

e) Higher authority. Some managers make use of their position or get the support of higherofficials to influence the behaviour of employees.

f) Assertiveness. When through strictness and force the managers influence the behavior ofsubordinates then it is called assertiveness.

g) Sanction. Sometimes the managers use punishment and rewards to influence thebehaviour of the employees.

Generally leaders and managers are considered same by every one. But these two aresynonymous of each other. The following points are given to explain the difference between

manager and leader.

Difference between Manager and Leader Or Managership and Leadership

Manager Leader

1. A manager is always a leaderbecause he has to influence thebehaviour of subordinates

working under him.2. The managers have formal

1. A leader may not be amanager because the peoplewho are leading informal

groups are not managersalways.


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authority to influence thebehavior. That is why they can

use assertiveness and sanctions

to influence the behaviour ofemployees.

3. The managers influence thebehaviour towards the

achievement of organisationalgoal.

4. A manager exists only informal organisation.

2. The leaders have informalauthority only that is the

authority of trust and faith

shown by the group members.3. Leaders influence the

behaviour towards thesatisfaction of every member

of the group and realisation ofgroup goal.

4. A leader may exist in formalas well as informal

organisation.

Importance of leadership

Leadership is an important element of direction. The significance of leadership can be

understood by learning following points :

1. Help in Inspiring and Guiding the Employees. The leaders have direct contact with thesubordinates and they always motivate the employees for higher performance and

achievement of goal. That is why leadership is considered as an important factor for the

success of the organisation. Leaders also act as guides as whenever the employees are introuble, leaders guide them in the right direction of achievement of organisational goal

2. Securer Co-operation of the Member of organisation. Leaders try to secure the willingcooperation of the employees as they develop feeling of initiative and enthusiasm in the

employees. The leaders develop the spirit of teamwork and convince the subordinatesthat they can achieve their goal only when the team goal or group goal is achieved.

3. Creates Confidence. The leaders try to recognize the hidden talent and qualities of theemployees and encourage them to highlight these hidden talents to boost up their

confidence level. Generally employees fail to realise or recognize their abilities and

capabilities. Leaders recognize their abilities which provides psychological support andconfidence in the employee.


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4. Improves Productivity. The biggest challenge or problem of every organisation is bestutilisation of physical and human resources. It is possible with the effective and efficientutilization of resources and efficiency depends upon the motivation, confidence and co-

operation among the employees and leaders develop co-operation, confidence and

motivation among the employees which results in maximum utilization of resources.

5. Improves job Satisfaction. The job satisfaction does not depend only on monetarycompensation. But it depends upon working conditions and behaviour of managers

towards their employees. The behaviour of manager must be supportive and managersare considered good leaders only when they are able to motivate the employees and

provide them psychological support. Leadership ensures that managers follow such a

pattern which is acceptable to all the subordinates and motivates the employees toconsider themselves as a part of organisation. Leadership also helps the employees to

take right decision at the time of stressful situation. The guidance at such situation bringsjob satisfaction to the employee.

6. Improves Team- Spirit or Group Cohesion. The group cohesion or the team spiritdepends upon mutual trust, friendliness, co-operation and liking of subordinates for each

other. The leadership helps in creating team-spirit by encouraging the employees to sharecommon vision (goal) and work collectively. Leaders always guide the subordinates to

give importance to the group goal rather than individual goals.

Qualities of a Leader/ingredients of leadership

A person must possess the following qualities to be a good and effective leader :

1. Intelligence and Scholarship. A leader must be able to examine every problem in theright perspective or direction. The leader must have superior judgement and abilities totake right decision in right situation. The leader must have complete knowledge about the

work performed by his group member.

2. Communication Skill. A leader is the source of information for all the member of hisgroup. Generally all the instructions and information from the superiors are passed to

subordinates by the leaders only. So they must have good communication skill so thatinformation reaches each and every member.


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3. Listening Skill. The leader must give chance to his subordinates to talk and speak freelywith him. He must take the response of subordinates.

4. Ability to Inspire people. The leader must be able to convince the employees that theirwillingness to do work will bring best result in their performance. The leader should notforce the subordinates but develop voluntary contribution from the subordinate side.

5. Self-confidence and Sense of Responsibility. A leader can develop confidence in hissubordinates only when he is having faith and confidence in his own abilities. He must be

confident that he will be able to tackle every situation successfully. A confident leaderonly can create confidence in his subordinates.

6. Empathy. Empathy means ability ofa person to look at a thing from others point ofview. Every person looks at a situation or problem from his/her point of view but we

expect the leader to look at the situation from other members point of view.

Importance of leadership

Helps in Inspiring & Guiding the Employees. Secures Co-operation of the Members of organisation. Creates Confidence. Improves productivity. Improves Job satisfaction. Improves Team-sprit OR Group Cohesion.

TYPES OF LEADERS

1. Intellectual Leaders. Intellectual leaders are those who win the confidence of theirfollowers by their superior intellect or knowledge. Nearly in all big organisation, thereare experts whose advice is sought on matters in which they are experts..

2. Democratic Leaders. A democratic leader is one who acts according to the wishes of hisfollowers. He does what the group wants. He follows the majority opinion as expressedby his group. He holds his leadership position because he is loyal to his group, is always


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concerned with their interests, is friendly and helpful to them, and is always ready to

defend them them, individually and collectively.

3. Autocratic Leaders. Such a leader dominates and drives his group through coercion,command and the instilling of fear in his followers. Such leaders prefer the use of powerin promoting their own ends. They never like to delegate their power for the fear that theymay lose their authority in this way.

4. Persuasive leaders. The persuasive leader possesses magnetic personality that enableshim to influence his followers to join him in doing things. He is the type who can say,Let go, guys and the whole group responds because they love and respect him, have

confidence in him.

5. Creative Leaders.The creative leader uses the technique of circular response so ablydescribed by Follett to encourage ideas to flow from the group to him as well as from him

to the group. He draws out the best in his followers without exerting an undue personalinfluence on the people.

6. Institutional Leaders. An institutional leader holds his position because of force ofprestige attached to his office. The position he holds enables him to influence his

followers, sometimes because of the habits of obedience that certain followers have,sometimes, because of respect for the position and because of the dependence of thesubordinate upon his superior for certain benefits.

Features of leadership

o Influencing processo The followerso Reciprocal relationshipo

Common goalo Situation bound

o Power basedo Satisfaction boundo Satisfaction of memberso Scope of leadership


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A Standard Business Plan Outline

What information needs to be in your business plan? What is the order of information that

will make the most sense to lenders and investors? You can answer these questions with thebusiness plan outlines provided below.

What are the standard elements of a business plan? If you do need a standard business plan

to seek fundingas opposed to a plan-as-you-go approach for running your business, which I

describe belowthere are predictable contents of a standard business plan outline.

For example, abusiness plannormally starts with an Executive Summary, which should be

concise and interesting.Is the order important? If you have the main components, the orderdoesnt matter that much, but heres the sequence I suggest for a business plan. I have providedtwo outlines, one simple and the other more detailed.
http://www.businessplanpro.com/http://www.businessplanpro.com/http://www.businessplanpro.com/http://www.businessplanpro.com/


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Simple business plan outline

1. Executive Summary: Write this last. Its just a page or two of highlights.2. Company Description: Legal establishment, history, start-up plans, etc.3. Product or Service: Describe what youre selling. Focus on customer benefits.4. Market Analysis: You need to know your market, customer needs, where they are, how

to reach them, etc.

5. Strategy and Implementation: Be specific. Include management responsibilities withdates and budgets. Make sure you can track results.

6. Web Plan Summary: For e-commerce, include discussion of website, developmentcosts, operations, sales and marketing strategies.

7. Management Team: Describe the organization and the key management team members.8. Financial Analysis: Make sure to include at the very least your projected Profit and Loss

and Cash Flow tables.

Build your plan, then organize it.I dont recommend developing the plan in the same order

you present it as a finished document. For example, although the Executive Summary obviouslycomes as the first section of a business plan, I recommend writing it after everything else isdone. It will appear first, but you write it last.

Standard tables and charts

There are also some business tables and charts that are normally expected in a standard businessplan.

Cash flow is the single most important numerical analysis in a plan, and should never be

missing. Most plans will also have Sales Forecast and Profit and Loss statements. I believethey should also have separate Personnel listings, projected Balance Sheet, projected BusinessRatios, and Market Analysis tables.

I also believe that every plan should include bar charts and pie charts to illustrate the numbers.

Expanded business plan outline

Heres an expanded full business plan outline, with details you might want to include in yourown business plan.

1.0 Executive Summary1.1 Objectives1.2 Mission1.3 Keys to Success


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2.0 Company Summary2.1 Company Ownership2.2 Company History (for ongoing companies) or Start-up Plan (for new companies)2.3 Company Locations and Facilities

3.0 Products and Services3.1 Product and Service Description3.2 Competitive Comparison

3.3 Sales Literature

3.4 Sourcing and Fulfillment3.5 Technology3.6 Future Products and Services

4.0 Market Analysis Summary4.1 Market Segmentation

4.2 Target Market Segment Strategy4.2.1 Market Needs

4.2.2 Market Trends

4.2.3 Market Growth4.3 Industry Analysis

4.3.1 Industry Participants

4.3.2 Distribution Patterns

4.3.3 Competition and Buying Patterns4.3.4 Main Competitors

5.0 Strategy and Implementation Summary5.1 Strategy Pyramids

5.2 Value Proposition

5.3 Competitive Edge5.4 Marketing Strategy

5.4.1 Positioning Statements

5.4.2 Pricing Strategy5.4.3 Promotion Strategy

5.4.4 Distribution Patterns

5.4.5 Marketing Programs

5.5 Sales Strategy5.5.1 Sales Forecast5.5.2 Sales Programs


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5.6 Strategic Alliances5.7 Milestones

6.0 Web Plan Summary6.1 Website Marketing Strategy6.2 Development Requirements

7.0 Management Summary7.1 Organizational Structure7.2 Management Team

7.3 Management Team Gaps7.4 Personnel Plan

8.0 Financial Plan

8.1 Important Assumptions8.2 Key Financial Indicators8.3 Break-even Analysis

8.4 Projected Profit and Loss8.5 Projected Cash Flow

8.6 Projected Balance Sheet

8.7 Business Ratios8.8 Long-term Plan


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Central Government Policies and Scheme

Genral policies

Policy of Reservation Price & Purchase Preference Reservation of Items Licensing Trade Policy Foreign Direct Investment Approval
http://dcmsme.gov.in/publications/reserveditems/respol.htmhttp://www.dcmsme.gov.in/schemes/Purchase&PricePreferencePolicy.htmhttp://dcmsme.gov.in/policies/preseve.htm#remhttp://dcmsme.gov.in/policies/central/licen.htmhttp://dcmsme.gov.in/policies/central/trade.htmhttp://dcmsme.gov.in/policies/central/fdi.htmhttp://dcmsme.gov.in/policies/central/fdi.htmhttp://dcmsme.gov.in/policies/central/trade.htmhttp://dcmsme.gov.in/policies/central/licen.htmhttp://dcmsme.gov.in/policies/preseve.htm#remhttp://www.dcmsme.gov.in/schemes/Purchase&PricePreferencePolicy.htmhttp://dcmsme.gov.in/publications/reserveditems/respol.htm


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NRI Investment Approval Foreign Investment Regulations Labour Policies

Industrial policies

Priority Sector

Policy for Tiny Sector, Cottage & Village Industries, Handicrafts, Khadi & Handlooms Development of Backward AreasNorth Eastern Policy Women Entrepreneur

FUNDING & FINANCE

Taxation-Excise Duty Credit Policy

MODERNISATION & TRAINING

Quality Standard Policy

ENERGY & ENVIRONMENT

Pollution Control Measures Environmental Control
http://dcmsme.gov.in/policies/central/nri.htmhttp://dcmsme.gov.in/policies/central/fir.htmhttp://dcmsme.gov.in/policies/lab_pol.htmhttp://dcmsme.gov.in/publications/policies/ssipolicy.htmhttp://dcmsme.gov.in/policies/bwrd.htmhttp://www.dcmsme.gov.in/policies/nebgnd.htmhttp://www.dcmsme.gov.in/schemes/wenterpre.htmhttp://dcmsme.gov.in/policies/central/t-ed.htmhttp://dcmsme.gov.in/thrustareas/CREDIT.htmhttp://dcmsme.gov.in/policies/central/pquality.htmhttp://dcmsme.gov.in/policies/central/polute.htmhttp://dcmsme.gov.in/policies/central/envior.htmhttp://dcmsme.gov.in/policies/central/envior.htmhttp://dcmsme.gov.in/policies/central/polute.htmhttp://dcmsme.gov.in/policies/central/pquality.htmhttp://dcmsme.gov.in/thrustareas/CREDIT.htmhttp://dcmsme.gov.in/policies/central/t-ed.htmhttp://www.dcmsme.gov.in/schemes/wenterpre.htmhttp://www.dcmsme.gov.in/policies/nebgnd.htmhttp://dcmsme.gov.in/policies/bwrd.htmhttp://dcmsme.gov.in/publications/policies/ssipolicy.htmhttp://dcmsme.gov.in/policies/lab_pol.htmhttp://dcmsme.gov.in/policies/central/fir.htmhttp://dcmsme.gov.in/policies/central/nri.htm


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RESERVATION POLICY

Items Reserved for MSEs Purchase | Items Reserved for MSEs Manufacture

Reservation of products for exclusive manufacture in the small scale sector was

introduced for the first time in 1967 with the reservation of 47 items. This numberincreased progressively as under:

February, 1970 - 55

February, 1971 - 128

November, 1971 - 124

February, 1974 - 177

June, 1976 - 180

April, 1978 - 504

After the introduction of National Industrial Classification (NIC) code the list was recast.

As a result, the list of reserved items expanded from 504 to 807 in 1978 and was 836 in1989. Out of this, 39 items were dereserved in four phases viz., 15 items on 3.4.1997, 9

items on 3.2.1999, 1 item on 1.1.2001 and 14 items on 29.6.2001. Subsequently, 51 itemswere dereserved in May 2002, 75 items in May 2003 and 85 items in October, 2004,108

items in March 2005, 180 items in May 2006, 87 items in January 2007, 125 items inMarch 2007.

As of March, 2007, 114 items are reserved for exclusive manufacture in the small scalesector(see complete list).

Reservation affords support to SSIs against competition from medium/large/multinational companies. The policy received statutory backing in 1984 under Section29B of Industries (Development & Regulation) Act, 1951.

Reservation/dereservation is a continuous process. The Advisory Committee onReservation constituted under the Industries (Development & Regulation) Act, 1951

recommends items to be added and deleted from the reserved list including bringing
http://www.dcmsme.gov.in/schemes/Purchase&PricePreferencePolicy.htmhttp://dcmsme.gov.in/publications/reserveditems/resvex.htmhttp://dcmsme.gov.in/publications/reserveditems/resvex.htmhttp://dcmsme.gov.in/publications/reserveditems/resvex.htmhttp://dcmsme.gov.in/publications/reserveditems/resvex.htmhttp://dcmsme.gov.in/publications/reserveditems/resvex.htmhttp://www.dcmsme.gov.in/schemes/Purchase&PricePreferencePolicy.htm


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changes in nomenclature. The Advisory Committee on Reservation consists of thefollowing:-

Secretary (MSME). Chairman

Secretary (IP&P) - Member

Secretary (Commerce) - Member

Adviser (VSI), Planning Commission - Member

Additional Secretary & DC (MSME) - Member Secretary

Non-SSI units (i.e. medium/large units including multi-nationals) can manufacturereserved items if they have obtained a carry on business license or accept an export

obligation of 50% of their production.

As only manufacturing of items is reserved, trading in these items is not a violation of thereservation policy.