DME SEMESTER-V

T07054: ENTREPRENEURSHIP & MAINTAINANCE ENGINEERING

5 Marks Question with Answers

Q1) Explain the concept of entrepreneurship.

Entrepreneurship has traditionally been defined as the process of designing, launching and running a
new business, which typically begins as a small business, such as a startup company, offering a
product, process or service for sale or hire. It has been defined as the "...capacity and willingness to
develop, organize, and manage a business venture along with any of its risks in order to make a
profit."While definitions of entrepreneurship typically focus on the launching and running of
businesses, due to the high risks involved in launching a start-up, a significant proportion of
businesses have to close, due to a "...lack of funding, bad business decisions, an economic crisis -- or
a combination of all of these" or due to lack of market demand. In the 2000s, the definition of
"entrepreneurship" has been expanded to explain how and why individuals (or teams) identify
opportunities, evaluate them as viable, and then decide to exploit them. we can summarize by
concluding that entrepreneurship is a function which involves the exploitation of opportunities
which exist within a market.

Q2) Write a short note on the present trends in entrepreneurship.

In the age of technology it’s the instinct of innovation which drives young people to new ventures
rather than just the pressure to do something for a living.So, If you are planning to turn an
entrepreneur, you have lots to cheer about with respect to the opportunities on offer and the potential
contributions that you could make towards society. However, if latest trends are closely observed,
then it is imminent that deriving money is seemingly not the only option that modern entrepreneurs
are looking at; but rather, offering technology-driven solutions to make lives of people easier.Also,
with the investor community today; both angel as well as venture capitalists; actively searching for
creative ventures to fund/mentor, your idea could be amongst the lucky ones here, but only if you
accord preliminary priority to offer solutions whilst maintaining your priority to make your business
scalable intact.If you want to stay ahead of your competitors, you must constantly search for
innovations to grow your business even more. It's always a good thing to start testing ideas. There's
just one problem: Many of these new technologies will flop, costing you time and money. When
something works, though, you'll gain the unfair advantage of being the leader -- the first -- in your
industry. What if you could skip through the noise, learn what's working for companies in different
industries, and implement those tactics in your business?

Q3) Discuss the need of developing a business plan

Business Plan
Every business owner needs a way to organize and present information about how he or she intends
to develop, grow, and manage his or her business. A business plan is the perfect tool. When well-
crafted, a plan will catch the attention of potential investors and customers while encouraging them
to support the business. When seen this way, a business plan becomes the foundation for any
successful business.A business plan can be constructed by building upon four essential cornerstones:
  Business Idea
 Market Analysis
 Marketing Strategy
 Financial Analysis

Business Idea
The Business Idea section sells the business’s vision and briefly outlines how that vision will be
accomplished. A basic idea can be expanded into a plan by including three key elements:

 Business Summary – A simple description of the business, the need for its product or
service, its intended audience, and its competitive advantage. When shared with others, it
shouldn’t take longer than 30 seconds.
 Keys to Success – A series of short statements that describe the value the business promises
to deliver to its potential customers.
 Management and Staff Summary – Short statements that draw attention to the personal
strengths of the people who will be part of running the business.

Market Analysis
Before taking on the risks of a business, it is important for business owners to know general market
conditions, where the new business will fit inside a particular industry, who their customers will be,
and who will be the competition.
Sources for this information can be found through:

 Local chambers of commerce

 Networking contacts
 Online resources
 Universities
 Competitor businesses

Marketing Strategy
Once market and industry information is obtained, and customer and competitor profiles have been
developed, the marketing strategy is written next. A good strategy should include these four P’s:

 What specific Product or service does the business offer?

 What Pricing structure will be used?
 Where your business will be located (Place)?
 What will be done to Promote the business?
A marketing strategy is about determining a proper balance between each of these elements. If the
business will be more successful in a high traffic area, then location has more importance. If the
competition is high, better advertising and pricing could help.
Financial Analysis
This is the section of the business plan for exact numbers and business costs. If a business is selling
a lot of product but still losing money in the long run, the business will fail. Based on the previous
information collected, the business owner can provide a fairly accurate estimate of the business’s
costs and what will affect them.
Q4) What do you understand by business opportunity.

A business opportunity (or bizopp) involves sale or lease of any product, service, equipment, etc.
that will enable the purchaser-licensee to begin a business. The licensor or seller of a business
opportunity usually declares that it will secure or assist the buyer in finding a suitable location or
provide the product to the purchaser-licensee. This is different from the sale of an independent
business, in which there is no continued relationship required by the seller. A common type of
business opportunity involves a company that sells bulk vending machines and promises to secure
suitable locations for the machines. The purchaser is counting on the company to find locations
where sales will be high enough to enable him to recoup his expenses and make a profit. Because of
the many cases of fraudulent biz-ops in which companies have not followed through on their
promises, or in which profits were much less than what the company led the investor to believe,
governments closely regulate these operations.

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Q5) Discuss entrepreneurial process.

Successful entrepreneurship occurs when creative individuals bring together a new way of meeting
needs and a market opportunity. This is accomplished through a patterned process, one that
mobilizes and directs resources to deliver a specific product or service to customers using a market
entry strategy that shows investors financial promise of building enduring revenue and profitability
streams. Sustainability adds to the design of a product and operations by applying the criteria of
reaching toward benign (or at least considerably safer) energy and material use, a reduced resource
footprint, and elimination of inequitable social impacts due to the venture’s operations, including its
supply-chain impacts. Entrepreneurial innovation combined with sustainability principles can be
broken down into the following five key pieces for analysis. Each one needs to be analyzed
separately, and then the constellation of factors must fit together into a coherent
whole.Entrepreneurship is the creation of new ways of meeting needs through novel products,
processes, services, technologies, markets, and forms of organizing.
 Entrepreneurial ventures can be start-ups or occur within large companies.
 Entrepreneurship is an innovation process that mobilizes people and resources.
 Key to entrepreneurial success is the fit among the entrepreneur/team, the product concept,
the opportunity, the resources, and the entry strategy.
Q6) What are the methods of idea generation.

1.Answer Your Buyer Personas Questions:The No.1 best practice in inbound marketing is to be
helpful to your target audience. Here, the first step is to define your target audience or buyer
personas which include details about their personalities, their interests, their hobbies, what they like
to read and which social media platform they are most active on. Answering their queries or solving
their problems is one of the best ways to define new content ideas.
2.Consult your Competitors:Your competitors are in a way also your best friends. Being in the
same space you share the same target audience. Finding what type of content works for them can
fuel your content ideas. Here are 2 tools that can help you scout for new content from your
competitors.
3.Use Suggestion Tools:This one is a keyword suggestion tool, which gives you keywords not
available in Google Keyword Planner. You can select the source to get the keywords from like Web,
Youtube, Images or News. Then set your preferred language and you get a list of SEO and PPC
keywords. If used in conjunction with Keywords Everywhere you can also get the volume of search
for each keyword.

Q7) What are the types of ownership of an enterprise.

The different types of business ownership are:- 1. Single Ownership (Private Undertaking). 2.
Partnership. 3. Joint Stock Company 4. Cooperative Organisation (Or Societies) 5. Public Sector 6.
Private Sector.

1.Single Ownership: It is called a single ownership when an individual exercises and enjoys these
rights in his own interest. A business owned by one man is called single ownership. Single
ownership does well for those enterprises which require little capital and lend themselves readily to
control by one person.

2. Partnership: A single owner becomes inadequate as the size of the business enterprise grows. He
may not be in a position to do away with all the duties and responsibilities of the grown business. At
this stage, the individual owner may wish to associate with him more persons who have either
capital to invest, or possess special skill and knowledge to make the existing business still more
profitable.

3. Joint Stock Company:A joint stock company is an Association of individuals, called

shareholders, who join together for profit and agree to supply capital divided into shares that are
transferable for carrying on a specific business. Death, insolvency, disablement or lunacy of the
shareholders does not affect the joint stock company. A joint stock company consists of more than
twenty persons for carrying any business other than the banking business.

4.Cooperative Organisation (Or Societies):It is a form of private ownership which contains

features of large partnership as well as some features of the corporation. The main aim of the
cooperative is to eliminate profit and provide goods and services to the members of the cooperative
at cost.
5. Public Sector:The sector of public enterprises is popularly known as the Public Sector. Public
enterprises are controlled and operated by the Government either solely or in association with
private enterprises. Public enterprises are controlled and operated by the Government to produce and
supply goods and services required by the society. Ultimate control of public enterprises remains
with the state and the stale runs it with a service motto.
6.Private Sector:Private sector serves personal interests and is a non-government sector. Profit
(rather than service) is the main objective. Private sector constitutes mainly consumer’s goods
industries where profit possibilities are high. Private sector does not undertake risky ventures or
those having low-profit margin. Private enterprises are run by businessmen, capital is collected from
the private partners.

Q8) What are the basic element of total productive maintenance.

TPM Key Element 1: Improving equipment effectiveness by targeting the major losses. TPM
activities should focus on results. One of the fundamental measures used in TPM is Overall
Equipment Effectiveness (OEE) which includes the major losses that TPM seeks to eliminate. OEE
= Equipment Availability x Performance Efficiency x Rate of Quality.
TPM Key Element 2: Involving operators in daily maintenance of their equipment. Operator
involvement must be defined in ways that make sense in your work culture. There are tasks that
operators can do without using any tools: Clean and inspect equipment. In every company that I
have studied or visited or worked for, the thing that they get the most return on investment in the
early stages of TPM is operators learning how to inspect their equipment and pay attention to key
things. It doesn’t take any tools or special skills; you just have to know what to look for.
Maintenance people can teach the operators what to look and listen for.
proving all aspects of maintenance including spare parts, computerized maintenance management
system, preventive maintenance, predictive maintenance, maintenance tools, work order system,
planned and scheduled maintenance, and equipment histories. These are all part of TPM. They can’t
be separate or on the side. They must be woven in. For example, production, maintenance,
purchasing, and shipping and receiving should use a computerized maintenance management
system. It’s not just a maintenance management system anymore; it’s an equipment information
management system.
TPM Key Element 4: Training to improve the skills of everyone involved. This means maintenance
training, operations training, leadership training, training about root cause analysis of the major
losses, reliability training, etc. The training should first address the very basic needs of the people
and the equipment targeted for TPM. One of the most important basic training needs for TPM is
designed to help the people involved understand what TPM is and why it is so important for the
equipment and the business.
TPM Key Element 5: Life-cycle equipment management and maintenance prevention design. If
you’re going to design and develop new equipment or a major modification, involve those who are
going to operate it and maintain it for the next 5, 10, or 15 years in the process. Use their ideas to
make it easier to operate and easier to maintain.
Based on the past ten years’ experience with TPM in America, a sixth key element is needed to truly
recognize what is making TPM work. It is:
TPM Key Element 6: Wining with teamwork focused on common goals. Even with all of the
emphasis on high-performing equipment the best equipment cannot consistently perform well
without teamwork focused on common goals using common processes. In some facilities “Team” is
a four-letter word that is often misunderstood. In TPM the sense of teamwork centers around the
targeted equipment, then expands through all areas using TPM to improve their performance.
Q9 What are the Maintenance organization objectives and responsibility.
The maintenance organization and its position in the plant/whole organization
is heavily impacted by the following elements or factors:
i) Type of business, e.g.,whether it is high tech, labour intensive, production or service;
ii) Objectives: may include profit maximization, increasing market share and other social objectives;
iii) Size and structure of the organization;
iv) Culture of the organization; and
v) Range of responsibility assigned to maintenance.

Organizations seek one or several of the following objectives: profit maximization, specific quality
level of service or products, minimizing costs, safe and clean environment, or human resource
development. It is clear that all of these objectives are heavily impacted by maintenance and
therefore the objectives of maintenance must be aligned with the objectives of the organization. The
principal responsibility of maintenance is to provide a service to enable an organization to achieve
its objectives.

i)Keeping assets and equipment in good condition, well configured and safe to perform their
intended functions;
ii)Perform all maintenance activities including preventive, predictive; corrective, overhauls,design
modification and emergency maintenance in an efficient and effective manner;
iii) Conserve and control the use of spare parts and
material;
iv.Commission new plants and plant expansions;
v.Operate utilities and conserve energy.

Q10) What are the roles of TCO in developing entrepreneurship.

The growth of technical consultancy organization (TCO) is very much a post Independence
phenomenon. Prior to India’s Independence the few Indian TCOs that existed acted as sub-
contractors to foreign consultants for projects undertaken in India. However in recent times Indian
TCOs have flourished in a number of fields ranging from simple technology like food processing to
advanced fields like electronics and power generation. As an illustration the entire design and
engineering work of major power projects can be completely handled within the country. Many
TCOs have also made forays in the international market for technical consultancy services.
However, only a few TCOs have made a mark for themselves in the field of international technical
consultancy. This study of TCOs is based on published information, a survey of 94 TCOs, and a
study of technology export from India done by the first author. It brings out the key aspects of the
growth and development of Indian TCOs and the major problems being faced by them.

10 Marks Question with Answers

Q1) Explain the factors that influence entrepreneurs.

Entrepreneurship is influenced by four distinct factors: economic development, culture,

technological development and education. In areas where these factors are present, you can expect to
see strong and consistent entrepreneurial growth.

Economic Factors
Economic environment exercises the most direct and immediate influence on entrepreneurship. This
is likely because people become entrepreneurs due to necessity when there are no other jobs or
because of opportunity.
The economic factors that affect the growth of entrepreneurship are the following:
1. Capital
Capital is one of the most important factors of production for the establishment of an enterprise.
Increase in capital investment in viable projects results in increase in profits which help in
accelerating the process of capital formation. Entrepreneurship activity too gets a boost with the
easy availability of funds for investment.Availability of capital facilitates for the entrepreneur to
bring together the land of one, machine of another and raw material of yet another to combine them
to produce goods. Capital is therefore, regarded as lubricant to the process of production.
2. Labor
Easy availability of right type of workers also effect entrepreneurship. The quality rather than
quantity of labor influences the emergence and growth of entrepreneurship. The problem of labor
immobility can be solved by providing infrastructural facilities including efficient transportation.
The quality rather quantity of labor is another factor which influences the emergence of
entrepreneurship. Most less developed countries are labor rich nations owing to a dense and even
increasing population. But entrepreneurship is encouraged if there is a mobile and flexible labor
force. And, the potential advantages of low-cost labor are regulated by the deleterious effects of
labor immobility. The considerations of economic and emotional security inhibit labor mobility.
Entrepreneurs, therefore, often find difficulty to secure sufficient labor.
3. Raw Materials
The necessity of raw materials hardly needs any emphasis for establishing any industrial activity and
its influence in the emergence of entrepreneurship. In the absence of raw materials, neither any
enterprise can be established nor can an entrepreneur be emerged
It is one of the basic ingredients required for production. Shortage of raw material can adversely
affect entrepreneurial environment. Without adequate supply of raw materials no industry can
function properly and emergence of entrepreneurship to is adversely affected.
4. Market
The role and importance of market and marketing is very important for the growth of
entrepreneurship. In modern competitive world no entrepreneur can think of surviving in the
absence of latest knowledge about market and various marketing techniques.
The fact remains that the potential of the market constitutes the major determinant of probable
rewards from entrepreneurial function. Frankly speaking, if the proof of pudding lies in eating, the
proof of all production lies in consumption, i.e., marketing
5. Infrastructure
Expansion of entrepreneurship presupposes properly developed communication and transportation
facilities. It not only helps to enlarge the market, but expand the horizons of business too. Take for
instance, the establishment of post and telegraph system and construction of roads and highways in
India.

Social Factors
Social factors can go a long way in encouraging entrepreneurship. In fact it was the highly helpful
society that made the industrial revolution a glorious success in Europe. Strongly affect the
entrepreneurial behavior, which contribute to entrepreneurial growth.
1. Caste Factor
There are certain cultural practices and values in every society which influence the’ actions of
individuals. These practices and value have evolved over hundred of years. For instance, consider
the caste system (the varna system) among the Hindus in India. It has divided the population on the
basis of caste into four division. The Brahmana (priest), the Kshatriya (warrior), the Vaishya (trade)
and the Shudra (artisan): It has also defined limits to the social mobility of individuals.
2. Family Background
This factor includes size of family, type of family and economic status of family. In a study by
Hadimani, it has been revealed that Zamindar family helped to gain access to political power and
exhibit higher level of entrepreneurship.
3. Education
Education enables one to understand the outside world and equips him with the basic knowledge and
skills to deal with day-to-day problems. In any society, the system of education has a significant role
to play in inculcating entrepreneurial values.
4. Attitude of the Society
A related aspect to these is the attitude of the society towards entrepreneurship. Certain societies
encourage innovations and novelties, and thus approve entrepreneurs’ actions and rewards like
profits. Certain others do not tolerate changes and in such circumstances, entrepreneurship cannot
take root and grow. Similarly, some societies have an inherent dislike for any money-making
activity.
Psychological Factors
Many entrepreneurial theorists have propounded theories of entrepreneurship that concentrate
especially upon psychological factors. These are as follows :
1. Need Achievement
The most important psychological theories of entrepreneurship was put forward in the early) 960s
by David McClelland. According to McClelland ‘need achievement’ is social motive to excel that
tends to characterise successful entrepreneurs, especially when reinforced by cultural factors. He
found that certain kinds of people, especially those who became entrepreneurs, had this
characteristic.
2. Withdrawal of Status Respect
There are several other researchers who have tried to understand the psychological roots of
entrepreneurship. One such individual is Everett Hagen who stresses the-psychological
consequences of social change. Hagen says, at some point many social groups experience a radical
loss of status. Hagen attributed the withdrawal of status respect of a group to the genesis of
entrepreneurship.
3. Motives
Other psychological theories of entrepreneurship stress the motives or goals of the entrepreneur.
Cole is of the opinion that besides wealth, entrepreneurs seek power, prestige, security and service
to society. Stepanek points particularly to non-monetary aspects such as independence, persons’
self-esteem, power and regard of the society.
Q2) Discuss various function of entrepreneurs.
1) Decision Making: The primary task of an entrepreneur is to decide the policy of production. An
entrepreneur is to determine what to produce, how much to produce, how to produce, where to
produce, how to sell and’ so forth. Moreover, he is to decide the scale of production and the
proportion in which he combines the different factors he employs. In brief, he is to make vital
business decisions relating to the purchase of productive factors and to the sale of the finished goods
or services.
2)Management Control: Earlier writers used to consider the management control one of the chief
functions of the entrepreneur. Management and control of the business are conducted by the
entrepreneur himself. So, the latter must possess a high degree of management ability to select the
right type of persons to work with him. But, the importance of this function has declined, as
business nowadays is managed more and more by paid managers.
3) Division of Income: The next major function of the entrepreneur is to make necessary
arrangement for the division of total income among the different factors of production employed by
him. Even if there is a loss in the business, he is to pay rent, interest, wages and other contractual
incomes out of the realised sale proceeds.
4)Risk-Taking and Uncertainty-Bearing: Risk-taking is perhaps the most important function of an
entrepreneur. Modern production is very risky as an entrepreneur is required to produce goods or
services in anticipation of their future demand. Broadly, there are two kinds of risk which he has to
face. Firstly, there are some risks, such as risks of fire, loss of goods in transit, theft, etc., which can
be insured against. These are known as measurable and insurable risks.
5)Innovation: Another distinguishing function of the entrepreneur, as emphasised by Schumpeter,
is to make frequent inventions — invention of new products, new techniques and discovering new
markets — to improve his competitive position, and to increase earnings.
Q3)Discuss the steps involved in entrepreneurial process.
The entrepreneurial process is a set of stages and events that follow one another. These
entrepreneurial process stages are: the idea or conception of the business, the event that triggers the
operations, implementation and growth. A critical factor that drive the development of the business
at each stage as with most human behavior, entrepreneurial traits are shaped by personal attributes
and environment.

1. Idea generation
The entrepreneur begins to wonder why there is not available a product or service, why not improve
certain things, how to generate income to cover their expenses, etc. Thousands of questions might
rise, so them will help to identify opportunities to meet the market needs. In previous years, there
where not enough amount of goods and services. It was a little bit easier to position a business,
however now it requires a search for information and market analysis to see the possibility of
success.It is possible that at this point in the entrepreneurial process, there are many people, since
the generation of ideas can be much easier. However, the step towards a decision making is where
many can stop and perhaps even abandon the idea from the starting a business.

2. Decision making and business planning

A critical point in the entrepreneurial process is deciding to start the project. Be active and stay
motivated are the main factors for the entrepreneur to start landing his idea. Asking what resources
are needed and where he will get them, is vital to generate at least one way forward for the
entrepreneur. The development of the business plan will mark only a guide that can be used as
reference.

3. Project creation
The project is conducted when the entrepreneur decides to seek and obtain resources. Getting
financiation is difficult, and perhaps one of the main obstacles to start a business. When the
entrepreneur begins to invest the resources and and begin operating, it is a point release of stress, as
the entrepreneur will see the first steps of his company.

4. Management and control

After having pass through the first months of operation, the company will see if it decreases,
maintains or increases in sales. The entrepreneur should strive to maintain revenue growth before
worrying about having a nice office. Managing a business is not easy, but the experience that
entrepreneurs acquire over time will surely ease the handling of all resources.
Perhaps one could say that the entrepreneurial process ends here, but I think it is no longer an
entrepreneur, and he becomes a full businessman or businesswoman.
Q4) Explain the concept of project feasibility.
As the name implies, a feasibility study is used to determine the viability of an idea, such as
ensuring a project is legally and technically feasible as well as economically justifiable. It tells us
whether a project is worth the investment—in some cases, a project may not be doable.
Do you drive to working knowing you will never arrive? Do you make a coffee knowing you will
never be able to drink it?
Before planning any project, you must ask the question - Can this project be successful? If the
answer is no, then the project should not commence. If there is only a very slight possibility for
project success, then it is also unlikely the project should go ahead.
Some questions to ask in order to consider whether a project can be successful include:

 Is it technically possible?
 Is it achievable within budget?
 Will it do what it is supposed to do (e.g. make a profit)?
In order to answer these critical questions, a project feasibility study must be conducted. The project
feasibility study is a document containing a detailed description of the project, followed by a set of
different feasibility areas. These are aspects of the project that will drive the success or failure of the
project. This study will provide the necessary information so that you can decide whether or not
your project will begin or whether it has a shot at success.
Q5)Discuss the significance of organizational feasibility.
To define the legal and corporate structure of the business. An Organizational Feasibility Study may
also include professional background information about the founders and principals of the business
and what skills they can contribute to the business. Your organizational feasibility study should
include:
Uncertainty is a constant that businesses of every size face daily. Getting customers in the door,
encouraging them to spend, and ultimately generating a profit are basic objectives that can at times
seem difficult to achieve. Changing, adapting and incorporating new products and ideas into your
business mix are ways to remove some of the uncertainties you face, but without proper forethought
and planning, those steps themselves can be highly uncertain. Enter the feasibility study: a chance to
ask and get answers to questions that help you to assess potential, and to predict the likelihood of
success or failure.The term “feasible” describes an action or event that is likely, probably or possible
to happen or achieve. A feasibility study is the total of the actions you take and the questions you
ask to determine whether an idea, thought or plan is likely to succeed. An effective study can guide
you on whether you should move forward with your idea, refine it, or scrap it altogether and go back
to the drawing board.

Focused and Specific

Feasibility studies are focused and specific. They start with a single question -- asking whether the
idea, event or action is a viable solution -- and force you to focus solely on that question to the
exclusion of everything else, drilling down to explore possible outcomes. A feasibility study is not
the same as a business plan. A feasibility study is an investigative tool that might cause you to
discount an idea, whereas a business plan is call to action. You can, in fact, use a feasibility study as
a predecessor to creating a business plan.

The Big Picture

Feasibility studies are important because they force you consider the big picture first and then think
in a top-down fashion. In this way, one or two general starter questions lead to a host of additional,
more detailed questions that become increasingly narrower in focus as you get closer to reaching an
ultimate answer. For example, asking whether anyone will buy your new-and-improved product and
whether it will generate a profit creates additional questions that force you to consider customer
need and possible competition, and to identify risks that you may face. You must also describe your
product and its benefits, define your target market, and calculate cost along with break-even and
profit points.

Alternative Solutions
Feasibility studies offer you the chance to “get it right” before committing time, money and business
resources to an idea that may not work in the way you originally planned, causing you to invest even
more to correct flaws, remove limitations, and then simply try again. Feasibility studies may also
open your eyes to new possibilities, opportunities and solutions you might never have otherwise
considered. There are no right or wrong answers to the questions you ask, but an answer you don’t
necessarily want or expect can create new profit potential.
Q6) What are the roles of agencies supporting entrepreneurial development.
Since independence, the growth and development of the micro, small scale sector, cottage and
village industries has been favored by the government of India because of Generation of
employment opportunities by SSIs, Mobilization of capital and
entrepreneurship skills, Regional dispersal of industries, and Equitable distribution of national
income. Policies pursued by the government over the years have resulted in the growth of small
scale sector to a considerable extent.To accelerate the pace of industrialization in the country and
also to support economic development, Government at central as well as at state level has made
good efforts by way of implementing various measures. Government have set up number of
agencies and institutions to assist and support emerging and established entrepreneurs to set up and
develop their business at two levels- small and medium. Starting a business or an industrial unit
requires various resources and facilities. Finance has been an important resource to start and run an
enterprise because it facilitates the entrepreneur to procure land, labour, material, machines to run an
enterprise.
Hence finance is the most important requirement of the business. Considering this,
the government has come forward to help small entrepreneurs through the financial institutions and
nationalized banks. But the finance alone is not sufficient to start a business. A minimum level of
prior built-up of infrastructural facilities is also needed. This is one of the reasons for lack of
industrial development in backward areas. Creation of infrastructure involves huge funds. In view of
this various central and state government institutions have come forward to help small entrepreneurs
in this regard by providing them various kinds of support and facilities. Institutional support makes
the economic environment more conducive for the growth of the business.These institutions are
supporting the entrepreneurs in various aspects of the business such as education, training, finance,
marketing etc. Support system for the development of entrepreneurship exists in the form of 1)
Educational institutions providing professional and non-professional or traditional courses, 2)
Financing institutions, 3) Promoting institutions, 4)Non-government organizations, 5) Government’s
support and 6) Support from family members, relatives and friends.

Q7) What are the advantages of incentives,subsidies & grants.

Whether you’re currently exporting to Asia or merely thinking about it, a wealth of Australian
Government and state support, subsidies, and grants are up for grabs. Taking advantage of any
grants, subsidies, support or assistance on offer can help your business expand into overseas
markets.Some risks associated with assistance include potential conflicts of interest and
accountability, but government and state assistance can be beneficial should you decide to export.

Export grants and subsidies

While knowledge is powerful, actual money in your pocket is empowering. The Government
encourages Australian exporters in several ways. The following grants and schemes are designed to
encourage exporting to Asia via financial incentives.

Export Market Development Grants (EMDG)

Provided by the Government, the Export Market Development Grants offer financial assistance to
small and mid-size businesses looking to export their goods and services.

Business Growth Grants

Administered by AusIndustry, Business Growth Grants can be used to engage a consultant to
improve your business. In order to qualify for these grants, you have to go through a ‘business
evaluation’ as part of the Entrepreneurs’ Infrastructure Programme.

Access Program
Offered to Victorian businesses planning to establish new export markets in Japan, Korea, China,
Hong Kong, India and Southeast Asia, is the Access Program.
It offers facilities, market intelligence, export-related help, cultural training, introductions and
networking, product and service evaluations, and in-country expertise.
Trade Mission Program
If you run an export-ready Victorian business, the Trade Mission Program provides up to $10,000 in
financial assistance per year for travel to key international markets through its organised trade
mission trips.

Free business advice for exporters

Below are various resources where you can learn about exporting and get advice to help take your
business overseas to the Asian continent.

Export Finance and Insurance Corporation (EFIC)

One of the first stops on your export journey should be a visit to see the tools and education on the
EFIC website. Here you’ll find resources and financial solutions for SME exporters to Asia,
like world risk developments and an interactive map to find facts about your target export country.
EFIC serves as Australia’s export credit agency, partnering with banks to offer loans, guarantees,
bonds, and insurance products to small, medium, and large Australian exporters. EFIC’s country
profiles might be a logical place to start if you’re only considering exporting at this stage.
You’ll also want to take a look at the interactive Exporter Journey, which can help you gain a deeper
understanding on how to prepare your business for exporting to Asia.

Networking and support

Your export journey will be a lot easier with the right support and networks in place.

Supply Chain Facilitation

The Supply Chain Facilitation services offers practical advice from skilled advisers with an
emphasis on helping you improve how you supply new and existing export markets.
Its supplier improvement plan is a customised scheme covering strategy, relationships, systems,
processes, structures, people, strengths, bottlenecks, and other factors that might impact
performance in your export supply chain.

Export Skills Development

Available for Queensland-based businesses, the Export Skills Development program includes
mentoring, networking and skills development assistance to small businesses ready to export to
Asia.
Participate in networking events, workshops, or one-on-one consultations. This program also offers
inbound, outbound, and virtual trade missions.
With sources of support available from the Australian Government as well as from your state,
resources are readily available to help prepare you for your export journey – and potentially help
you with funding. It’s well worth looking into both of these sources.
Q8) Expalin SWOT analysis.
SWOT analysis is a framework used to evaluate a company's competitive position by identifying its
strengths, weaknesses, opportunities and threats. Specifically, SWOT analysis is a foundational
assessment model that measures what an organization can and cannot do, and its potential
opportunities and threats.

Elements of a SWOT Analysis

When using SWOT analysis, an organization needs to be realistic about its good and bad points. The
organization needs to keep the analysis specific by avoiding gray areas and analyzing in relation to
real-life contexts. For example, how do the organization’s products and services compare to those of
competing firms? SWOT analysis should be short and simple, and should avoid complexity and
over-analysis because much of the information is subjective. Thus, companies should use it as a
guide and not a prescription.
Strengths describe what an organization excels at and separates it from the competition: a strong
brand, loyal customer base, a strong balance sheet, unique technology and so on. For example, a
hedge fund may have developed a proprietary trading strategy that returns market-beating results. It
must then decide how to use those results to attract new investors.
Weaknesses stop an organization from performing at its optimum level. They are areas where the
business needs to improve to remain competitive: higher-than-industry-average turnover, high levels
of debt, an inadequate supply chain or lack of capital.
Opportunities refer to favorable external factors that an organization can use to give it a
competitive advantage. For example, a car manufacturer can export its cars into a new market,
increasing sales and market share, if a country cuts tariffs.
Threats refer to factors that have the potential to harm an organization. For example, a drought is a
threat to a wheat-producing company, as it may destroy or reduce the crop yield. Other common
threats include things like rising costs for inputs, increasing competition, tight labor supply and so
on.
Q9) What are the basic types of organizational model.
There are many different kinds of organizational structures found in companies.
Organizational structures can be tall, in the sense that there are a number of tiers between entry-level
employees and the leaders of the company. Organizational structures can also be fairly flat, in the
sense that there are only a couple of levels separating the bottom from the top. Depending on your
goals, pay structure, and division of work, you may relate more to one structure than another.
While you don’t necessarily have to use an organizational structure that currently exists, it helps to
be aware of what other companies are using. Here are a few of the most common structures in
modern businesses:
1. Functional
Also commonly called a bureaucratic organizational structure, the functional structure divides the
company based on specialty. This is your traditional business with a sales department, marketing
department, customer service department, etc.
The advantage of a functional structure is that individuals are dedicated to a single function. These
clearly defined roles and expectations limit confusion. The downside is that it’s challenging to
facilitate strong communication between different departments.

2. Divisional
The divisional structure refers to companies that structure leadership according to different products
or projects. Gap Inc. is a perfect example of this. While Gap is the company, there are three different
retailers underneath the heading: Gap, Old Navy, and Banana Republic. Each operates as an
individual company, but they are all ultimately underneath the Gap Inc. brand.
Another good example is GE, which owns dozens of different companies, brands, and assets across
many industries. GE is the larger brand, but each division functions as its own company. While
somewhat dated and abbreviated, this diagram gives you an idea of what GE’s basic organizational
structure looks like.

3. Matrix
The matrix structure is a bit more confusing, but pulls advantages from a couple of different
formats. Under this structure, employees have multiple bosses and reporting lines. Not only do they
report to a divisional manager, but they also typically have project managers for specific projects.
While matrix structures come with a lot of flexibility and balanced decision-making, this model is
also prone to confusion and complications when employees are asked to fulfill conflicting
responsibilities.

4. Flatarchy
While large businesses have traditionally followed a tall structure, it’s becoming increasingly
common to see flatarchies in smaller businesses and new startups.This flatarchy structure essentially
removes unnecessary levels and spreads power across multiple positions. This leads to better
decision-making, but can also be confusing and cumbersome when everyone doesn’t agree. In other
words, it comes with pros and cons just like the other structures.
Q10) What are the facilities & services provided by DIC.

 DIC provides the information on sources of machinery and equipment.

 Promotes new industrial growth centers, electronic industries etc.,
 Conducts multiple training programs to encourage the entrepreneurs.
 Gives assistance to entrepreneurs under State Incentives scheme and funding assistance
through selfemployment schemes.
 It allots raw materials to the concerned industries at district level.
  DIC gives the information about marketing and its assistance on participating trade
fairs/buyers sellers meet and so on.
 Guidance regarding Import and Exports of specific goods and services.
 Improves the managerial capacity by organizing various seminars, workshops etc.
 It clears the problems related to SSI Registration/Bank loan/Marketing of production etc.
 Single window assistance through SIDA and District Industries Centers.
 Products standardization
 Promotion of products under Non conventional Energy Sources.
 Design and product development for handicrafts.
The basic purpose of these DIC’s is to generate more employment opportunities for rural people. It
was intended to make the Centre as a central location for-
1. granting financial and other facilities to small units
2. developing close links with development blocks and specialized institutions providing help to set
up industries in rural areas
3. identifying and helping new entrepreneurs

15 Marks Question with Answers

Q1)Discuss the various types of entrepreneurs.
Innovative Entrepreneur: These are the ones who invent the new ideas, new products, new
production methods or processes, discover potential markets and reorganize the company’s
structure. These are the industry leaders and contributes significantly towards the economic
development of the country.The innovative entrepreneurs have an unusual foresight to recognize the
demand for goods and services. They are always ready to take a risk because they enjoy the
excitement of a challenge, and every challenge has some risk associated with it. Ratan Tata is said to
be an innovative entrepreneur, who launched the Tata Nano car at a considerably low cost.
Imitating Entrepreneurs: The imitating entrepreneurs are those who immediately copy the new
inventions made by the innovative entrepreneurs. These do not make any innovations by
themselves; they just imitate the technology, processes, methods pioneered by others.These
entrepreneurs are found in the places where there is a lack of resources or industrial base due to
which no new innovations could be made. Thus, they are suitable for the underdeveloped regions
where they can imitate the combinations of inventions already well established in the developed
regions, in order to bring a boom in their industry.

Fabian Entrepreneurs: These types of entrepreneurs are skeptical about the changes to be made in
the organization. They do not initiate any inventions but follow only after they are satisfied with its
success rate.They wait for some time before the innovation becomes well tested by others and do not
result in a huge loss due to its failure.
Drone Entrepreneurs: These entrepreneurs are reluctant to change since they are very conservative
and do not want to make any changes in the organization. They are happy with their present mode of
business and do not want to change even if they are suffering the losses.
Q2)Discuss the importance of feasibility study in developing a business plan.
The feasibility study is the document that are made before the business plan, representing an less
complex and faster analysis of business opportunities in terms of its viability, setting whether to
continue its recovery efforts.The usefulness of the feasibility study is related to the significant
reduction in the opportunities entrepreneur economic risks identified.The main elements that
differentiate a feasibility study of a business plan are related to:
- Pursuit of a single goal, feasibility of the business;
- Reduced complexity;
- Narrower issue investigated;
- Narrower timeframe;
- Details of technically complete.
The feasibility study, when it concludes that economic opportunity can turn into a business feasible,
it is recommended to continue with the business plan. Information and analyzes of the feasibility
study are incorporated in the business plan, facilitating largely completion.The business plan is an
essential tool for entrepreneurs who create a company or looking for partners, managers who
propose new projects to other people or institutions, companies want to launch new products /
services or simply to manage their activities better, for institutions who managing funds for
investment projects. After starting a business, business plan managers keep attention focused on
major objectives, not allowing daily operations to divert attention from them. A business plan
should include milestones and otherprops for guidance in the economic environment, while
preparing for the economic changes more or less predictable "route".Nobody expects to derive
business plans, but understanding and knowledge of the business planning process will prepare for
business changes and will optimize reaction time. Also, both the feasibility study and that of the
business plan should be detailed administrative and institutional issues that could significantly affect
future project implementation and operation. It considers how new activities will be managed and
integrated in functional and hierarchical structure of the organization.the impact of investments in an
economic system is justified by the fact that action triggers investment organizations and
implementing various projects increase their supply of goods and/or services, leading to additional
income. At the same time, any investment project generates additional needs or applications in
sectors related to upstream (supplier of raw materials, utilities, etc.) or downstream(distribution or
consuming of goods/services offered), which causes an in crease in revenue at the chain all
economic entities engaged and involved.

Q3)Write a short note on analyzing market feasibility for establishing a new

business.
The business idea is a website/mobile application, which is used in order to find contact information
of performers in case of need, for example when arranging events. The idea is quite new, and there
is no similar services in the market.However, the feasibility of Bookertainment must be studied,
before establishing a business out of it.There are two types of customer groups for Bookertainment,
customer group 1 The
business idea is a website/mobile application, which is used in order to find contact information of
performers in case of need, for example when arranging events. The idea is quite new, and there is
no similar services in the market.However, the feasibility of Bookertainment must be studied, before
establishing a business out of it.There are two types of customer groups for Bookertainment,
customer group 1 (entertainers, such as bands, singers, dancers) and customer group
2(entertainment seekers, such as hotels, bars, private individuals). The main purpose for
Bookertainment is to bring these two customer groups together. The research approach for this
particular research is deductive. Also, acombined research method of qualitative and quantitative is
applied. Moreover, data is gathered from primary as well as secondary sources. The research
methodolody is considered to suit best with the characteristics of the research topic. The main goal
of the research is to discover the feasibility of Bookertainment.The main findings of the research
indicate that Bookertainment is rather feasible. However, the research is relatively narrow as the
service would operate online with the entire Finland as its market area.Further research is highly
recommended in order to proceed with the business idea carefully. One of the options
is to launch a prototype, which facilitates the demand examination process. (entertainers, such as
bands, singers, dancers) and customer group 2(entertainment seekers, such as hotels, bars, private
individuals). The main purpose for Bookertainment is to bring these two customer groups together.
The research approach for this particular research is deductive. Also, a combined research method of
qualitative and quantitative is applied. Moreover, data is gathered from primary as well as secondary
sources.
The research methodolody is considered to suit best with the
characteristics of the research topic. The main goal of the research is to discover the feasibility of
Bookertainment.The main findings of the research indicate that Bookertainment is rather feasible.
However, the research is relatively narrow as he service would operate online with the entire Finland
as its market area.Further research is highly recommended in order to proceed with the business idea
carefully. One of the options is to launch a prototype, which facilitates the demand examination
process. The main purpose for this research was to discover, whether Bookertainment, an online
service (website/ mobile application) for entertainment searching and booking,is feasible enough to
become a real business. Mostly the inspiration for this thesis was the author’s own motivation to
become an entrepreneur in the future as well as her personal interest in this specific business idea
and its business planning. Moreover, the author believes the business idea has a lot of potential and
might
even turn out as a successful business one day. The research approach used in this thesis was
deductive. Also, the research was implemented with a combination of two types of different research
methods: qualitative and quantitative. Qualitative method was used to gather information among
understanding the research topic itself and quantitative method, in turn,included numerical data
gathered. The approach as well as the method were considered as the most suitable ones for this
particular research in order to discover the outcome effectively. Furthermore, information was
gathered from primary as well as secondary sources.

Q4) What are the roles of DIC in developing entrepreneurship.

Roles of DIC in developing entrepreneurship:

Entrepreneurship development (ED) refers to the process of improving entrepreneurial skills and
knowledge through structured training and institution -building programmes.Entrepreneurship
development focuses on the individual who wishes to start or expand a business.This accelerates
employment generation and economic development.District Industries Centers (DICs) provide full
assistance to the entrepreneurs who are going to start the business on their own and in their regional
places. These centers provide service and support to small entrepreneurs under a single roof at both
pre and post investments.The DICs program was started on May 1st in the year of 1978 with a view
to providing integrated administrative framework at the district level for promotion of small scale
industries in rural areas. Providing complete assistance and support to entrepreneurs in multi-regions
are the ultimate aims of DICs. These DIC programs can take over the responsibilities in order to
promote cottage and small scale industries at district level effectively.DIC’s are the implementing
arm of the central and state governments of the various schemes and programmes. Registration of
small industries is done at the district industries centre and PMRY (PradhanMantri Rojgar Yojana)
is also implemented by DIC. Management of DIC is done by the state government.
 DIC provides the information on sources of machinery and equipment.
 Promotes new industrial growth centers, electronic industries etc.,
 Conducts multiple training programs to encourage the entrepreneurs.
 Gives assistance to entrepreneurs under State Incentives scheme and funding assistance
through self-employment schemes.
 It allots raw materials to the concerned industries at district level.
 DIC gives the information about marketing and its assistance on participating trade
fairs/buyers-sellers meet and so on.
 Guidance regarding Import and Exports of specific goods and services.
 Improves the managerial capacity by organizing various seminars, workshops etc.
 It clears the problems related to SSI Registration/Bank loan/Marketing of production etc.
 Single window assistance through SIDA and District Industries Centers.
 Products standardization
 Promotion of products under Non-conventional Energy Sources.
 Design and product development for handicrafts.

Q5)Discuss the role of central & state government in promoting entrepreneurship.

Government plays a very important role in developing entrepreneurship. Government develop

industries in rural and backward areas by giving various facilities with the objective of balances
regional development.The government set programmes to help entrepreneurs in the field of
technique,finance,market and entrepreneurial development so that they help to accelerate and adopt
the changes in industrial development.Various institutions were set up by the central and state
governments in order to fulfill this objective.
1. Small industries development organization (SIDO)
SIDO was established in October 1973 now under Ministry of Trade, Industry and Marketing. SIDO
is an apex body at Central level for formulating policy for the development of Small Scale Industries
in the country,headed by the Additional Secretary & Development Commissioner(Small Scale
Industries)under Ministry of Small Scale Industries Govt. of India. SIDO is playing a very
constructive role for strengthening this vital sector, which has proved to be one of the strong pillars
of the economy of the country. SIDO also provides extended support through Comprehensive plan
for promotion of rural entrepreneurship.
2. Management development Institute(MDI)
MDI is located at Gurgaon(Haryana).It was established in 1973 and is sponsored by Industrial
Finance Corporation Of India,with objectives of improving managerial effectiveness in the
industry.It conducts management development programs in various fields.In also includes the
programmes for the officers of IAS,IES,BHEL,ONGC and many other leading PSU’s.
3. Entrepreneurship development institute of India (EDI)
Entrepreneurship Development Institute of India (EDI), an autonomous and not-for-profit institute,
set up in 1983, is sponsored by apex financial institutions – the IDBI Bank Ltd., IFCI Ltd., ICICI
Bank Ltd. and the State Bank of India (SBI). EDI has helped set up twelve state-level exclusive
entrepreneurship development centres and institutes. One of the satisfying achievements, however,
was taking entrepreneurship to a large number of schools, colleges, science and technology
institutions and management schools in several states by including entrepreneurship inputs in their
curricula. In the international arena, efforts to develop entrepreneurship by way of sharing resources
and organizing training programmes, have helped EDI earn accolades and support from the World
Bank, Commonwealth Secretariat, UNIDO, ILO, British Council, Ford Foundation, European
Union, ASEAN Secretariat and several other renowned agencies. EDI has also set up
Entrepreneurship Development Centre at Cambodia, Lao PDR, Myanmar and Vietnam and is in the
process of setting up such centres at Uzbekistan and five African countries.
4. All India Small Scale Industries Board(AISSIB)
The Small Scale Industries Board (SSI Board) is the apex advisory body constituted to render advise
to the Government on all issues pertaining to the small scale sector.It determines the policies and
programmes for the development of small industries with a Central Government Minister as its
president and the representatives of various organization i.e. Central Government,State
Government,National Small Industries Corporations,State Financial Corporation,Reserve Bank of
India,State Bank of India,Indian Small Industries Board,Non government members such as Public
Service Commission,Trade and Industries Members.
5. National Institution of Entrepreneurship and Small Business Development(NIESBUD),New
Delhi
It was established in 1983 by the Government of India.It is an apex body to supervise the activities
of various agencies in the entrepreneurial development programmes.It is a society under
Government of India Society Act of 1860.The major activities of institute are:
i) To make effective strategies and methods
ii) To standardize model syllabus for training
iii) To develop training aids,tools and manuals
iv) To conduct workshops,seminars and conferences.
v) To evaluate the benefits of EDPs and promote the process of Entrepreneurial Development.
vi) To help support government and other agencies in executing entrepreneur development
programmes.
vii) To undertake research and development in the field of EDPs.
6. National Institute of Small Industries Extension Training
It was established in 1960 with its headquarters at Hyderabad.The main objectives of national
Institute of Small Industries Extension Training are:
i) Directing and Coordinating syllabi for training of small entrepreneurs.
ii) Advising managerial and technical aspects.
iii) Organizing seminars for small entrepreneurs and managers.
iv) Providing services regarding research and documentation.
7. National Small Industries Corporation Ltd. (NSIC)
The NSIC was established in 1995 by the Central Government with the objective of assisting the
small industries in the Government purchase programmes.The corporation provides a vast-market
for the products of small industries through its marketing network.It also assists the small units in
exporting their products in foreign countries.
9. Natioanl Research and development corporation (NRDC)
NRDC was established in 1953 under Department of Science and Industrial Research under
Government of India.Its main objectives are:
i) Providing assistance in technology transfer
ii) Transfer of technology
iii) Establishing relations with various technology institutions and collecting various indigenous
techniques developed by them.
10. Indian Investment Centre
This is an autonomous organization established by Central Government.Its main objective is to
assist in promoting foreign cooperation with Indian entrepreneurs and providing necessary
information to foreign entrepreneurs.
11. Khadi and village industries Commission(KVIC)
Khadi and Village Industries Commission established by an Act of Parliament in 1956.It is a service
organization engaged in promotion and development of Khadi and Village Industries in rural areas.
Its main objectives are:
i) Providing employment in rural areas.
ii) Improvement of skills
iii) Rural Industrialisation
iv) Transfer of Technology
v) Building strong rural community base and self reliance among rural people.
12. Indian Institute of Entrepreneurship(IIE)
It was established by the Department of Small Scale Industries and Agro and Rural Industries in
1953.It is autonomous organization with its headquarters at Guwahati. Its main objective is to
undertake research,training and consultancy activities in the field of small industry and
entrepreneurship.
13. Miscellaneous Organisation
In addition to above various organizations at all India level are assisting and are engaged in
entrepreneur development.These include ICICI, IFCI, SIDBI, UTI, IDBI, IIBI etc.
14. National Alliance of Young Entrepreneurs(NAYE)
It has sponsored number of entrepreneurial development acheme in collaboration with various
public sector banks.The main objective of the scheme is to encourage young entrepreneurs to
explore investment and self –employment opportunities .It arranges for their training and assists
them in procuring necessary finance.In 1975 NAYE also set up a Women’s Wing to make women
self-relaint and to raise their status.
15. Centre for Entrepreneurial Development(CED) Ahmedabad
It was sponsored by the Government of Gujrat and public financial institutions operating in the
State.It conducts entrepreneurial development programmes at various centres.The important features
of training programme are:
i) Training programmes were conducted after survey for opportunities was made.
ii) Appropriate linkage was established with supporting agencies supplying finance,factory
sheds,raw materials, etc.
iii) Behavioural tests were conducted to select the entrepreneurs.
iv) Training programmes covered theoretical and practical aspects.
v) Full time project leader took follow up action after the training was over.
16. Institute for Entrepreneurial Development (IED)
It was set up by the IDBI in association with other financial institutions,public sector banks and the
State Governments.The IEDs was set up to fulfil the entrepreneurial development needs of the
industrially backward States in the country.
17. Technical Consultancy Organisation (TCOs)
A network of TCOs has been established by All India Financial Institutions and State Government
throughout the country.These organizations have been set up to provide comprehensive package of
services to entrepreneurs in general and to small business entrepreneurs in particular.Their main
functions include the following:
i) Identifying potential industrial project.
ii) Preparing project reports,feasibility reports and pre-investment status.
iii. Identifying potential entrepreneurs.
iv. Providing technical and administrative support.
v. Conducting techno-economic studies of the projects.
vi. Conducting market research and surveys.
vi. Rendering advice to set up laboratories and design centre.
18. Public Sector Banks.
Public sector banks in association with NAYE have been conducting entrepreneurial development
programmes.The main thrust of these banks has been to identify potential entrepreneurs in rural and
backward areas.