NATURE & NEED OF ENTREPRENEURSHIP DEVELOPMENT: Entrepreneurship is the act of being an entrepreneur, which is a French word meaning one

who undertakes an endeavour. Entrepreneurs assemble resources including innovations, finance and business acumen in an effort to transform innovations into economic goods. The most obvious form of entrepreneurship is that of starting new businesses; however, in recent years, the term has been extended to include social and political forms of entrepreneurial activity. The concept of entrepreneurship has a wide range of meanings. On the one extreme an entrepreneur is a person of very high aptitude who pioneers change, possessing characteristics found in only a very small fraction of the population. According to A.H. Cole, Entrepreneurship is the purposeful activity of an individual or group of associated individuals, undertaken to initiate, maintain or aggrandize profit by production or distribution of economic goods or services. Entrepreneurship promotes small business in the society. Government has accepted the fact that small firms have a crucial role to play in the economic development of the country. Most economists today agree that entrepreneurship is a necessary ingredient for stimulating economic growth and employment opportunities in all societies. Small businesses are an essential part of our future economic prosperity because of the following reasons;

Employment generation: entrepreneurial development is looked at as a vehicle for employment generation through promotion of small business. India, being far more developed and forward looking country than some of the third world countries, can provide lead to entrepreneurial development activities. However, India can benefit from the welldocumented success experiences of developed countries like USA, Japan and UK in the field of employment generation and small business promotion. Steady growth in consumer spending, expanding retail sales, a strong housing market, continued expansion of the service sector, low rates of inflation and of labor cost increases and failing interest rates contributed to a healthy environment for small business. In India, the government policies, political and economic environment greatly encourage the establishment of new and small enterprises. Self- employment and small scale industry schemes have been further liberalized during the last decade. Small business dynamism: great dynamism is one of the qualities of the small and medium enterprises. This quality of dynamism originates in the inherent nature of the small business. The structure of small and medium enterprises is less complex than that of large enterprises and therefore facilitates quicker and smoother communication and decision- making. This allows for the greater flexibility and mobility of small business management. Also, small enterprises, more often make it possible for owners, who have a stronger entrepreneurial spirit than employed mangers, to undertake risk and challenges. Balanced economic development: small business promotion needs relatively low investment and therefore can be easily undertaken in rural and semi-urban areas. This in turn creates additional employment in these areas and prevents migration of people from rural to urban areas. Since majority of the people are living in the rural areas, therefore, more of our

development efforts should be directed towards this sector. Small enterprises use local resources and are best suited to rural and underdeveloped sector. This in turn will also lead to dispersal of industries, reduction in concentration of economic power and balanced regional development. Innovations in enterprises: business enterprises need to be innovative for survival and better performance. It is believed that smaller firms have a relatively higher necessity and capability to innovate. The smaller firms do not face the constraints imposed by large investment in existing technology. Thus they are both free and compelled to innovate. Entrepreneurship development is accelerating the pace of small firms growth in India. An increased number of small firms are expected to result in more innovations and make the Indian industry compete in the international market. DIFFERENCE BETWEEN MANAGER AND ENTREPRENEUR: An entrepreneur is a person who is motivated to satisfy a high need for achievement in innovative and creative activities. He is a great motivator to start his new business and manage it successively. He is the investor and takes risk in the enterprise. He perceives and exploits opportunity and works for his satisfaction to get positive results, whereas a manager (Professional Manager) takes care of the general functions of running an organisation such as strategic planning, operation planning, organising the resources, staffing, coordination, motivation and controlling work of the organisation. Normally a professional manager acquires such knowledge through formal education and training. He has to work within the policy framework set by the entrepreneurs (owners) of the organisation. Sometimes, an entrepreneur and a manager are considered as synonymous. The two terms are used interchangeably. In fact, the two terms differ in their meaning. The major points of distinction between the two are presented as follow: 1. An entrepreneur is the owner of the enterprise but A manager is just an employee in the enterprise of the entrepreneur. 2. The main motive of an entrepreneur is to start a venture by setting up an enterprise. But the main aim of a manager is to render services to an entrepreneur. 3. An entrepreneur, being the owner of the enterprise assumes all risks and uncertainty. But a manager as the servant does not share any risk involved in the enterprise. 4. The reward of an entrepreneur is profit. But the reward of a manager for rendering his services is salary. 5. All the policies and strategic decisions like expansions, diversification, takeovers, mergers, capital budgeting, pricing policies etc. are taken by entrepreneur. But all the managerial and operational decision relating to day-to-day activities of enterprise are taken by manager.

6. An entrepreneur acts as an innovator to maximize the profits. But a manager simply implements the policies prepared by entrepreneur and gives them practical shape. CONCEPT OF WOMEN ENTREPRENEURS Women Entrepreneurs may be defined as the women or a group of women who initiate, organize and operate a business enterprise. The Government of India has defined women entrepreneurs as an enterprise owned and controlled by women having a minimum financial interest of 51 per cent of the capital and giving at least 51 per cent of the employment generated in the enterprise to women. Women entrepreneurs engaged in business due to push and pull factors which encourage women to have an independent occupation and stands on their on legs. A sense towards independent decision-making on their life and career is the motivational factor behind this urge. Saddled with household chores and domestic responsibilities women want to get independence. Under the influence of these factors the women entrepreneurs choose a profession as a challenge and as an urge to do something new. Such a situation is described as pull factors. While in push factors women engaged in business activities due to family compulsion and the responsibility is thrust upon them. REASONS FOR WOMEN BECOMING ENTREPRENEURS The glass ceilings are shattered and women are found indulged in every line of business. The entry of women into business in India is traced out as an extension of their kitchen activities, mainly 3Ps, Pickle, Powder and Pappad. But with the spread of education and passage of time women started shifting from 3Ps to modern 3Es i.e., Energy, Electronics and Engineering. Skill, knowledge and adaptability in business are the main reasons for women to emerge into business ventures. Women Entrepreneurs a person who accepts challenging role to meet her personal needs and become economically independent. A strong desire to do something positive is an inbuilt quality of entrepreneurial women, who is capable of contributing values in both family and social life. With the advent of media, women are aware of their own traits, rights and also the work situations. The challenges and opportunities provided to the women of digital era are growing rapidly that the job seekers are turning into job creators. Many women start a business due to some traumatic event, such as divorce, discrimination due to pregnancy or the corporate glass ceiling, the health of a family member, or economic reasons such as a layoff. But a new talent pool of women entrepreneurs is forming today, as more women opt to leave corporate world to chart their own destinies. They are flourishing as designers, interior decorators, exporters, publishers, garment manufacturers and still exploring new avenues of economic participation. REASONS WOMEN BECOME ENTREPRENEURS: Innovative thinking Self-identity and social status Education and qualification Role model to others

support of family members Success stories of friends and relatives Bright future of their wards Need for additional income Family occupation Government policies and procedures Freedom to take own decision and be independent Employment generation New challenges and opportunities for self-fulfilment

REASONS FOR SLOW PROGRESS OF WOMEN ENTREPRENEURS IN INDIA The problems and constraints experienced by women entrepreneurs have resulted in restricting the expansion of women entrepreneurship. The major barriers encountered by women entrepreneurs are: The greatest deterrent to women entrepreneurs is that they are women. A kind of patriarchal- male dominant social order is the building block to them in their way towards business success. Male members think it a big risk financing the ventures run by women Male chauvinism is still prevalent in many parts of the country yet. Women are looked upon as abla i.e. weak in all respects. In a male dominated society, women are not treated equal to men that act as a barrier to womans entry into business. Women entrepreneurs have to face a stiff competition with the men entrepreneurs who easily involve in the promotion and development area and carry out easy marketing of their products with both the organized sector and their male counterparts. Such a competition ultimately results in the liquidation of women entrepreneurs. Lack of self-confidence, will-power, strong mental outlook and optimistic attitude amongst women creates a fear from committing mistakes while doing their piece of work. The family members and the society are reluctant to stand beside their entrepreneurial growth. Women in India lead a protected life. They are even less educated, economically not stable nor self-dependent which reduce their ability to bear risks and uncertainties involved in a business unit, The old and out-dated social outlook to stop women from entering in the field of entrepreneurship is one of the reasons for their failure. They are under a social pressure which restrains them to prosper and achieve success in the field of entrepreneurship Unlike men, women mobility in India is highly limited due to many reasons. A single women asking for room is still looked with suspicion. Cumbersome exercise involved in starting with an enterprise coupled with officials humiliating attitude towards women compels them to give up their spirit of surviving in enterprise altogether.

Women's family obligations also bar them from becoming successful entrepreneurs in both developed and developing nations. The financial institutions discourage women entrepreneurs on the belief that they can at any time leave their business and become housewives again. Indian women give more emphasis to family ties and relationships. Married women have to make a fine balance between business and family. The business success also depends on the support the family members extended to women in the business process and management. Womens family and personal obligations are sometimes a great barrier for succeeding in business career. Only few women are able to manage both home and business efficiently, devoting enough time to perform all their responsibilities in priority. The educational level and family background of husbands also influences women participation in the field of enterprise. Absence of proper support, cooperation and back-up for women by their own family members and the outside world people force them to drop the idea of excelling in the enterprise field. They are always making many pessimistic feelings to be aroused in their minds and making them feel that family and not business is a place meant for them. Many women take the training by attending the Entrepreneurial Development programme without an entrepreneurial bent of mind. Women who are imparted training by various institutes must be verified on account of aptitude through the tests, interviews, etc. High production cost of some business operations adversely affects the development of women entrepreneurs. The installations of new machineries during expansion of the productive capacity and like similar factors discourage the women entrepreneurs from venturing into new areas. Women controlled business are often small and it is not always easy for women to access the information they need regarding technology, training, innovative schemes, concessions, alternative markets, etc. Just a small percentage of women entrepreneurs avail the assistance of technology and they too remain confined to word processing software in the computer. They hardly make use of advanced software available like statistical software SAP, Accounting Package like TALLY, Animation software 3D MAX, internet, etc. Lack of awareness about the financial assistance in the form of incentives, loans, schemes etc. by the institutions in the financial sector. So the sincere efforts taken towards women entrepreneurs may not reach the entrepreneurs in rural and backward areas. Achievement motivation of the women folk found less compared to male members. The low level of education and confidence leads to low level achievement and advancement motivation among women folk to engage in business operations and

Apart from the above discussed problems there may occur other series of serious problems faced by women entrepreneurs as improper infrastructural facilities, high cost of production, attitude of people of society towards the women modern business outlook, low needs of enterprise. Women also tend to start business about ten years later than men, on average. Motherhood, lack of management experience, and traditional socialization has all been cited as reasons for delayed entry into entrepreneurial careers. SUGGESTIONS FOR THE GROWTH OF WOMEN ENTREPRENEURS Right efforts from all areas are required in the development of women entrepreneurs and their greater participation in the entrepreneurial activities. Entrepreneurship basically implies being in control of ones life and activities and women entrepreneurs need to be given confidence, independence, and mobility to come out of their paradoxes. The following measures are suggested to empower the women to seize various opportunities and face challenges in business. There should be a continuous attempt to inspire, encourage, motivate and co-operate women entrepreneurs. An Awareness programme should be conducted on a mass scale with the intention of creating awareness among women about the various areas to conduct business. Attempts should be there to enhance the standards of education of women in general as well making effective provisions for their training, practical experience and personality development programmes, to improvise their over-all personality standards. Organize training programmes to develop professional competencies in managerial, leadership, marketing, financial, production process, profit planning, maintaining books of accounts and other skills. This will encourage women to undertake business. Vocational training to be extended to women community that enables them to understand the production process and production management. Skill development to be done in women's polytechnics and industrial training institutes. Skills are put to work in training-cum-production workshops. Educational institutes should tie up with various government and non-government agencies to assist in entrepreneurship development mainly to plan business projects. International, National, Local trade fairs, Industrial exhibitions, seminars and conferences should be organized to help women to facilitate interaction with other women entrepreneurs. Women in business should be offered soft loans & subsides for encouraging them into industrial activities. The financial institutions should provide more working capital assistance both for small scale venture and large scale ventures. Making provision of micro credit system and enterprise credit system to the women entrepreneurs at local level. The weaker section could raise funds through various schemes and incentives provided by the government to develop entrepreneurs in the state. E.g. the Prime ministers Rozgar Yojana, The Khadi and Rural village industries scheme, etc. In the initial stages women entrepreneurs may face problems but they must persevere, believe in themselves and not give up mid-way.

Attempts by various NGOs and government organizations to spread information about policies, plans and strategies on the development of women in the field of industry, trade and commerce. Women entrepreneurs should utilize the various schemes provided by the Government. Women should try to upgrade themselves in the changing times by adapting the latest technology benefits. Women must be educated and trained constantly to acquire the skills and knowledge in all the functional areas of business management. This can facilitate women to excel in decision making process and develop a good business network Self-help groups of women entrepreneurs to mobilize resources and pooling capital funds, in order to help the women in the field of industry, trade and commerce can also play a positive role to solve this problem. Womens entrepreneurship must be examined both at the individual level (i.e. the choice of becoming self-employed) and at the firm level (the performance of women owned and managed firms) in order to fully understand the differences between mens and womens entrepreneurship. To establish all India forums to discuss the problems, grievances, issues, and filing complaints against constraints or shortcomings towards the economic progress path of women entrepreneurs and giving suitable decisions in the favour of women entrepreneurs and taking strict stand against the policies or strategies that obstruct the path of economic development of such group of women entrepreneurs. Thus by adopting the following aforesaid measures in letter and spirit the problems associated with women can be solved. Entrepreneurship is not a bed of roses to women. Women participation in many kinds of economic activities to complement to their family income, their participation in no way reduces their family duties. The task of women has become more tedious and full of challenges. Let us all make efforts to help women rediscover her. STEPS TAKEN BY THE GOVERNMENT Development of women has been a policy objective of the government since independence. Until the 70s the concept of womens development was mainly welfare oriented. In 1970s, there was a shift from welfare approach to development approach that recognised the mutually reinforcing nature of the process of development. The 80s adopted a multi-disciplinary approach with an emphasis on three core areas of health, education and employment. Women were given priorities in all the sectors including SSI sector. Government and non-government bodies have paid increasing attention to womens economic contribution through self-employment and industrial ventures. The First Five-Year Plan (1951-56) envisaged a number of welfare measures for women. Establishment of the Central Social Welfare Board, organization of Mahila Mandals and the Community Development Programmes were a few steps in this direction. In the second FiveYear Plan (1956-61), the empowerment of women was closely linked with the overall approach of intensive agricultural development programmes. The Third and Fourth Five-Year Plans (1961-66 and 1969-74) supported female education as a major welfare measure. The Fifth Five-Year Plan (1974-79) emphasized training of women, who were in need of income and protection. This plan coincided with International Womens Decade and the submission of Report of the Committee on the Status of Women in India. In1976, Womens welfare and Development Bureau was set up

under the Ministry of Social Welfare. The Sixth Five-Year Plan (1980-85) saw a definite shift from welfare to development. It recognized womens lack of access to resources as a critical factor impending their growth. The Seventh Five-Year Plan (1985-90) emphasized the need for gender equality and empowerment. For the first time, emphasis was placed upon qualitative aspects such as inculcation of confidence, generation of awareness with regards to rights and training in skills for better employment. The Eight Five-Year Plan (1992-97) focused on empowering women, especially at the Gross Roots Level, through Panchayati Raj Institutions. The Ninth Five-Year Plan (1997-2002) adopted a strategy of Womens Component Plan, under which not less than 30 percent of funds/ benefits were earmarked for women related sectors. The Tenth Five-Year Plan (2002-07) aims at empowering women through translating the recently adopted National Policy for Empowerment of Women (2001) into action and ensuring Survival, Protection and Development of women and children through rights based approach. At present, the Government of India has over 27 schemes for women operated by different departments and ministries. Some of these are: Integrated Rural Development Programme (IRDP) Khadi and Village Industries Commission (KVIC) Training of Rural Youth for Self-Employment (TRYSEM) Prime Ministers Rojgar Yojana (PMRY) Entrepreneurial Development programme (EDPs) Management Development programmes Womens Development Corporations (WDCs) Marketing of Non-Farm Products of Rural Women (MAHIMA) Assistance to Rural Women in Non-Farm Development (ARWIND) schemes Trade Related Entrepreneurship Assistance and Development (TREAD) Working Womens Forum Indira Mahila Yojana Indira Mahila Kendra Mahila Samiti Yojana Mahila Vikas Nidhi Micro Credit Scheme Rashtriya Mahila Kosh SIDBIs Mahila Udyam Nidhi Mahila Vikas Nidhi SBIs Stree Shakti Scheme NGOs Credit Schemes Micro & Small Enterprises Cluster Development Programmes (MSE-CDP). National Banks for Agriculture and Rural Developments Schemes Rajiv Gandhi Mahila Vikas Pariyojana (RGMVP) Priyadarshini Project- A programme for Rural Women Empowerment and Livelihood in Mid Gangetic Plains NABARD- KfW-SEWA Bank project Exhibitions for women, under promotional package for Micro & Small enterprises approved by CCEA under marketing support The efforts of government and its different agencies are ably supplemented by NGOs that are playing an equally important role in facilitating women empowerment. Despite concerted efforts

of governments and NGOs there are certain gaps. Of course we have come a long way in empowering women yet the future journey is difficult and demanding. RAJNI BECTOR: A CASE STUDY OF SUCCESSFUL WOMEN ENTERPRENEUR Cremica is one of the largest food processing companies of India with an annual growth rate of 30%. The quality, the taste and the penchant for perfection is what has given the required thrust to sales. From a single plant at Phillaur, today Cremica has a number of plants situated at various locations all over India. Cremicas presence in the market is visible on account of its vast range of products, which include: Biscuits, Sauces, Jams and Ketchups, Indian Snacks, Ready to Eat Food, Condiments, Frozen Products and Bakery Products. A home-grown business, Cremica was founded by Mrs Rajni Bector, who started making ice creams in her garage. Though she had no formal training or background, her recipes were a runaway success in Punjab. Rajni Bector is one of the first women entrepreneurs in Ludhiana. While she insists on being a woman entrepreneurship comes to her easily; its been a long journey to success, nevertheless. Rajni Bector was just a housewife before she started selling her kitchen-made ice creams at Diwali Melas in the late 1970s. Today, Cremica group does sales of Rs.200 crore (Rs.2 billion) and is an important link in the supply chain to the fast food industry with an inventory of buns, breads, sauces, ketchups and ice creams toppings to the likes of McDonalds and syrups and mayonnaise to Barista. PROJECT APPRAISAL: Project appraisal is the process of assessing and questioning proposals before resources are committed. It is an essential tool for effective action in community renewal. Its a means by which partnerships can choose the best projects to help them achieve what they want for their community. But appraisal has been a source of confusion and difficulty for projects in the past. Audits of the operation of Single Project Budget schemes have highlighted concerns about the design and operation of project appraisal systems, including: Mechanistic, inflexible systems A lack of independence and objectivity A lack of clear definition of the stages of appraisal and of responsibility for these stages A lack of documentary evidence after carrying out the appraisal Its no surprise that audits or inspections arent impressed with the quality of appraisals, and are specifically found with problems like; Individual appraisals which do not cover the necessary information or provide only a superficial analysis of the project Particular problems in dealing with risks, options and value for money Appraisals which are considered too onerous/burdensome for smaller projects Rushed appraisals Project appraisal is a requirement before funding of programs is done. But tackling problems like those outlined above is about more than getting the systems right on paper. Experience in projects emphasizes the importance of developing an appraisal culture which involves developing the right system for local circumstances and ensuring that everyone involved

recognizes the value of project appraisal and has the knowledge and skills necessary to play their part in it. What can Project Appraisal Deliver? Project appraisal helps project initiators and designers to; Be consistent and objective in choosing projects Make sure their program benefits all sections of the community, including those from ethnic groups who have been left out in the past Provide documentation to meet financial and audit requirements and to explain decisions to local people. Appraisal justifies spending money on a project. Appraisal asks fundamental questions about whether funding is required and whether a project offers good value for money. It can give confidence that public money is being put to good use, and help identify other funding to support a project. Getting it right may help a community make its resources go further in meeting local need Appraisal is an important decision making tool. Appraisal involves the comprehensive analysis of a wide range of data, judgments and assumptions, all of which need adequate evidence. This helps ensure that projects selected for funding: Will help a partnership achieve its objectives for its area Are deliverable Involve local people and take proper account of the needs of people from ethnic minorities and other minority groups Are sustainable Have sensible ways of managing risk. Appraisal lays the foundations for delivery. Appraisal helps ensure that projects will be properly managed, by ensuring appropriate financial and monitoring systems are in place, that there are contingency plans to deal with risks and setting milestones against which progress can be judged. Getting the system right The process of project development, appraisal and delivery is complex and partnerships need systems, which suit local circumstances and organization. Good appraisal systems should ensure that: Project application, appraisal and approval functions are separate All the necessary information is gathered for appraisal, often as part of project development in which projects will need support Race/tribal equality and other equality issues are given proper consideration Those involved in appraisal have appropriate information and training and make appropriate use of technical and other expertise There are realistic allowances for time involved in project development and appraisal Decisions are within a implementers powers

There are appropriate arrangements for very small projects There are appropriate arrangements for dealing with novel, contentious or particularly risky projects. IMPORTANCE OF PROJECT APPRAISAL TECHNIQUES: The object and, therefore, the importance of a project appraisal are making an analysis to see whether the project is viable. It is vital to know whether a project is technically feasible and whether it is going to be an economic liability or not. A project appraisal is an important part of any project and should be taken seriously because a lot rests on it. The effects of a project appraisal are long reaching and have very definite long term effects because of the capital investment that is always required in any project. Once a decision has been made to go ahead with a project, it is irreversible. Even if, through some catastrophic event, the project has to come to an unpredicted halt, the investment has been made so all could be lost. These high expenditures can be critical, not just for that particular project but for the health and survival of the entire business. Making an effective project appraisal is no easy task because there are can often be unforeseen circumstances (though a good project manager should be able to cover as many eventualities as possible). It is also not easy to measure all costs and the potential benefits of a project. This high degree of uncertainty could undermine the confidence of a project so it is vital that the appraisal is as thorough as it possibly can be. It is also important when it comes to a project appraisal to be realistic about the amount of capital that is going to be tied up, and the length of time that the project is going to take. If this is not done, it is possible that the business may suffer real hardship because it was unprepared for the financial constraints placed upon it. PROJECT FEASIBILITY: A feasibility study is performed by a company when they want to know whether a project is possible given certain circumstances. Feasibility studies are undertaken under many circumstances - to find out whether a company has enough money for a project, to find out whether the product being created will sell, or to see if there are enough human resources for the project. A good feasibility study will show the strengths and deficits before the project is planned or budgeted for. By doing the research beforehand, companies can save money and resources in the long run by avoiding projects that are not feasible. The Many Types There are many different types of feasibility studies; here is a list of some of the most common: Technical Feasibility - Does the company have the technological resources to undertake the project? Are the processes and procedures conducive to project success? Schedule Feasibility - Does the company currently have the time resources to undertake the project? Can the project be completed in the available time? A project will fail if it takes too long to be completed before it is useful. Economic Feasibility - Given the financial resources of the company, is the project something that can be completed? The economic feasibility study is more commonly called the cost/benefit analysis. Total estimated cost of the project, Financing of the project in terms of its capital structure, debt equity ratio and promoter's share of total cost, Existing investment by the promoter in any other business, projected cash flow and profitability

Cost-Benefit Analysis: A cost-benefit analysis is a common project appraisal technique that weighs the costs or expenses that it expects to incur when pursuing a new project against the benefits or revenues. Break-Even Analysis: A break-even analysis is similar to a cost-benefit analysis in that it examines costs and revenue, but it focuses on determining the amount of sales and revenue necessary to equal costs of a project. The point at which revenues equal costs is known as the "break-even" point because at that point the company is neither losing money on the project nor earning profit. Cultural Feasibility - What will be the impact on both local and general cultures? What sort of environmental implications does the feasibility study have? In this stage, the project's alternatives are evaluated for their impact on the local and general culture. For example, environmental factors need to be considered and these factors are to be well known. Further an enterprise's own culture can clash with the results of the project. Legal/Ethical Feasibility - What are the legal implications of the project? What sort of ethical considerations are there? You need to make sure that any project undertaken will meet all legal and ethical requirements before the project is on the table. : Determines whether the proposed system conflicts with legal requirements, e.g. a data processing system must comply with the local Data Protection Acts. Resource Feasibility - Do you have enough resources, what resources will be required, what facilities will be required for the project, etc. This involves questions such as how much time is available to build the new system, when it can be built, whether it interferes with normal business operations, type and amount of resources required, dependencies. Operational Feasibility - This measures how well your company will be able to solve problems and take advantage of opportunities that are presented during the course of the project. Operational feasibility is a measure of how well a proposed system solves the problems, and takes advantage of the opportunities identified during scope definition and how it satisfies the requirements identified in the requirements analysis phase of system development. Marketing Feasibility - Will anyone want the product once its done? What is the target demographic? Should there be a test run? Is there enough buzz that can be created for the product? Market Feasibility Study typically involves testing geographic locations Real Estate Feasibility - What kind of land or property will be required to undertake the project? What is the market like? What are the zoning laws? How will the business impact the area? Comprehensive Feasibility - This takes a look at the various aspects involved in the project marketing, real estate, cultural, economic, etc. When undertaking a new business venture, this is the most common type of feasibility study performed WHY?? Feasibility studies should be undertaken any time that a completely new project, process, vendor is being used, or business is being built. A feasibility study can not only provide the direction but also will define the focus for your team.

Different Stages in the Process of Starting a New Business starting a business can be challenging but highly rewarding. Following a step-by-step process helps increase your success and minimizes the risk of overlooking a critical area in the development of your new business. With attention to detail and determination, you can make your new business a success. Market Research Conduct a comprehensive market research analysis that determines the market size for your new business, potential market share, competitors, challenges, product desires and potential price points for products. The more research you do before launching your business, the better your chances of delivering a business and products that will drive customer growth and loyalty. Products Based on your market research and business focus, decide what products your new business should offer. Determine product lines, types of products and the anticipated price ranges. Match the product offering to the target markets you identified in your market research for maximum benefit. Business Plan Draft a business plan that outlines your business structure, product offerings, marketing strategy and financial plan. Include a profit and loss statement and an anticipated cash flow statement. Make logical assumptions, but dont overestimate sales or underestimate costs. A well-crafted business plan creates a strong foundation for new business success. Finance Use your business plan to obtain financing from banks and investors. Make sure you obtain sufficient funds to purchase needed equipment and products with enough working capital to last until your business can establish a profitable routine. Lack of working capital can hamper your ability to firmly establish and grow your new business. Purchasing or Production Buy or produce your products. If you buy products, conduct a search of product sources and choose a vendor based on reliability, price and financing terms. If you produce your product, establish strong quality control methods to ensure an excellent product. Offering high-quality products when you first launch your business can help propel your business success. Distribute Distribute your products to stores or Internet vendors or sell through your own physical location or online storefront. Arrange displays and create an aesthetically pleasing environment to showcase your goods or services for sale. Correlate your product distribution schedule based on the quality of your products and the demand for your product. If you need time to develop your market, consider focusing on a smaller demographic. If you need to beat competitors to the market, consider a wide demographic distribution of your products. Marketing Market your products and analyse your initial success. Make quick adjustments to products or marketing to correct any problems or to enhance your targeting efforts. Provide comprehensive support options to merchants and customers to establish loyalty to your company that will lead to long-term business success.

STAGES IN STARTING A NEW BUSINESS: When you start a new business, you develop your idea in stages. Creating a comprehensive plan using the correct process for starting a business is essential to success. Planning a business in stages, and in the correct order, helps to ensure that you cover all of your bases and develop a solid business foundation. Preliminary Research Before you can start planning your business, you first need to establish what kind of business you would like to start, according to online business resource Business know-how. Develop a list of business ideas, and then begin applying practical questions to determine which ideas offer the best opportunity. Research your ideas to find out if there is a demand for your business, what the legal hurdles may be in getting started, how much competition there is and whether you feel comfortable dedicating your resources and efforts to that business. Business Plan One of the initial stages of any new business is the business plan. Your business plan outlines the kind of business you will be starting, how much start-up capital you will need, what kind of facilities you will need to house your business, how much staffing you will need and revenue projections for the first three years. Your business plan becomes your blueprint on how you want to build your business. It provides you with guidance on how much financing you will need and it becomes the document you present to investors that may be interested in giving you the capital you need to get started. Financing Before getting started, you will need to secure financing for your business. Follow your business plan to determine how much start-up capital you will need. Before speaking to investors or lenders, determine how much of your start-up cash you can provide on your own. A personal savings account can offer start-up money. If you are still working a full-time job, then start cutting down your expenses at home and apply the savings to your business. Once you have determined how much you have on your own, you can then move to investors and lenders. Private investors such as venture capitalists will want to be involved in the operation of your business. You may want to consider taking on a partner in someone you know rather than allowing an investor you do not know to get involved in your business. A lender, such as a bank or credit union, will want to see some sort of stability to your finances. You may have to use your personal credit rating to secure your start-up funding from a lender. WAYS TO ENTER INTO BUSINESS: The manner by which you choose to enter a business will depend on your needs and your financial resources. Here are the four ways to enter a business: Starting your Own Business: Starting your own business allows you to start the business of your choice. Whether you want a digital printing shop, or a postcard printing company, or a shoe factory or even a fashion boutique, all is possible. You can decide where to locate your business and how you will set it up. You do not have to take on old bad debts, a bad reputation, or a poor location that you may inherit when you buy an existing business. However, you must establish every aspect of your business from the ground up. In addition, you must create and build a reputation with your customers.

Purchasing a Franchise Business: A franchise is a legal agreement to operate a business in the name of a recognized company. The franchisee (the person purchasing the franchise) buys an existing business operation. All business planning is done by the franchisor, the owner of the recognized company. Planning generally includes management training and assistance with advertising, merchandising, and day-to-day operations. The biggest disadvantages of franchising are the large amount of capital needed to purchase most franchises and the high initial fees charged to begin operations. Also, the franchisor may limit the franchisees choices as to how the business is run. Purchasing an Existing Business: When you buy an existing business non-franchise business, you usually receive little or no help from the previous owner. Therefore, you must investigate why the business is being sold. You must carefully examine the business records and the condition of the property and inventory. You must also determine the reputation of the business in the community. Taking over the Family Business: Some of the same considerations for purchasing an existing business also apply for a family business. You must review business records and the overall condition of the property and inventory. You must determine the reputation of the business in the community. In addition, you need to explore potential conflicts and concerns with family members.