Module 1

PETER DRUCKER
Entrepreneur is one who always searches for change, respond to it and exploits it as an opportunity . Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or services.

Financial Reasons To Start A Business

Loss of Job Or Change Of Employment

27% 39%

More Income For Necessities Second Income Bridge A Gap Till Retirement
13%

Forced Into Early Retirement Don't Know Or Not Stated

3% 6%

12%

Non-Financial Reasons To Start A Business

9% 7% 9% 41%

Do Something I Love More Flexibility Be Key Decision Maker Change Lifestyle Spend More Time With Family Don't Know or Not Stated

13% 21%

Types of Entrepreneur
Micropreneurs Intrapreneur Technopreneur 2nd Generation Entrepreneurs Social Entrepreneurs

Skills of Successful Entrepreneurs

Coordination Evaluation Organization Research

ENTREPRENEURSHIP
It requires a willingness to take calculated risks both personal and financial, and then to do everything possible to reduce the chances of failure. It also includes the ability to build an entrepreneurial or venture team to complement your (the entrepreneur) own skills and talents.

Characteristics of Successful Entrepreneur

Risk taker
Determination & Persistence Vision, creativity and innovation

Motivation to succeed

Entrepreneur

Team building

Problem solver Dynamism

Spot and take advantage of opportunities

Kinds of entrepreneurs
According to the type of business 1 Business entrepreneur 2 Trading entrepreneur 3 Service entrepreneur According to the use of technology 1 Technical entrepreneur 2 Non-technical entrepreneur According to the area 1 Urban entrepreneur 2 Rural entrepreneur

Kinds of entrepreneurs
According to gender 1 Male entrepreneur 2 Woman entrepreneur According to the sales of operation 1 Small scale entrepreneur 2 large scale entrepreneur Others 1 Innovative entrepreneur 2 Imitating entrepreneur 3 Drone entrepreneur

TYPES OF ENTREPRENUERS

4.Fabian Entrepreneurs

Women Entrepreneurs
AN ENTERPRISE OWNED AND CONTROLLED BY A WOMAN HAVING A MINIMUM FINANCIAL INTEREST OF 51 PER CENT OF THE CAPITAL AND GIVING AT LEAST 51 PER CENT OF THE EMPLOYMENT GENERATED BY THE ENTERPRISE TO WOMEN GOVT. OF INDIA

Why they need to work

Push Factors Pull Factors

Types of woman Entrepreneurs

Upper Crust Mid Rung Entrepreneurs Grassroots Entrepreneur
Self help groups

Institutional Support
FIWE (Federation of Indian Women Entrepreneurs ) Women India trust ( WIT) SEWA

Problems and Challenges faced by Entrepreneurs

Internal Problems of Entrepreneurs External Problems of Entrepreneurs

 Ten Deadly Mistakes of Entrepreneurship:

Business entrepreneurship fail because: Management Mistakes Lack of Experience Poor financial control Weak marketing efforts Failure to develop a strategic and effective plan Uncontrolled Growth Poor location Improper inventory control Incorrect or unsuitable pricing The inability of to move into entrepreneurial thinking mindset from the previous secured permanent managerial position held.

Micro, Small and Medium Enterprises Development Act , 2006

Objectives
To facilitate the promotion and development of micro, small and medium scale enterprises. To enhance the competitiveness of MSM enterprises. To concentrate on the related matters of MSM enterprises. To extend the scope of benefits from SSI undertaking and ancillary industries to MSM enterprises.

 Micro, Small and Medium Enterprises Development Act, 2006 Salient Features

Institutional Support Structure for MSMEs in India

At Federal Level
1. Ministry of MSMEs

At State Level
1. Directorate of Industries 2. District Industries Centres

2. Small Industries Development Organisation (SIDO)

3. National Small Industries Corporation(NSIC) 4. Khadi & Village Industries Commission(KVIC)

MSME s Others
1. Industry Associations 2. NGOs 3. Banks/Financial Institutions

3. State Finance Corporation 4. State Industrial Development Corporation 5. Technical Consultancy Organisations 6. Entrepreneurship Development Institutions (EDIs)

5. Coir Board
6. Entrepreneurship Development Institutions (EDIs)

Programs and schemes

National Manufacturing Competitiveness Programme (NMCP) Govt. of India Credit Linked Capital Subsidy Scheme for Technology Up gradation Credit Guarantee Scheme Micro & Small Enterprises Cluster Development Program

Performance and Credit Rating Scheme

Rating agencies assess a firm's financial viability and capability to honour business obligations, provide an insight into its sales, operational and financial composition, there by assessing the risk element, and highlights the overall health of the enterprise. They also benchmark its performance within the industry.

Benefits of Rating to MSMEs

Credit rating assists in simplifying lending norms In some cases, collateral requirements may also be relaxed
Greater willingness by banks and financial institutions to lend to better credit profile SME borrowers

Simplified Norms

Fund Access

Information asymmetry problems reduced

Perception Credit terms

Speed

Lower approval time Faster disbursement of funds based on 3rd part independent ratings.

Interest rates linked to rating of SME Higher rated customers can access funds at lower rates. Lower transaction costs

Credit Rating Agencies for SMEs

Crisil Ratings SME Rating Agency of India (SMERA) Icra Credit Analysis & Research (CARE) Onicra

Choosing a Form of Ownership

Sole Proprietorship Partnership Corporation Limited Liability Company Joint Venture

Factors to Consider
Tax considerations Liability exposure Start-up capital requirements Control Managerial ability Business goals Management succession plans Cost of formation

 Organization Structure Planning , Measurement and Evaluation schemes Rewards Selection criteria Training

Role of government & its nodal agencies in

Entrepreneurial Development

Organizations for EDPs

1. National institute for entrepreneurship and small business development (NIESBUD):NIESBUD is an apex body under the Ministry of Micro, Small & Medium Enterprises, Government of India for coordinating and overseeing the activities of various institutions/ agencies engaged in entrepreneurship development particularly in the area of small industry and small business. Its main functions are Training strategies and methodology Formulating scientific selection procedures Facilitating and supporting agencies engaged in ED Developing training aids, manuals & other roots

Training Programmes @ NIESBUD

Training Programmes @ NIESBUD Small Business Promoters' Programmes Development Officers' Orientation Programmes Continuing Education Programmes For SSI Entrepreneurs International Training Programmes

2. Entrepreneurship development Institute of India (EDII)

Promote micro enterprises at rural level Inculcate the spirit of Entrepreneurship amongst youth Participate in institution- building efforts Improve managerial capabilities of small scale industries

3. Small industries development Organization (SIDO)

Recognizing the need for training in improving and upgrading the skill of worker. SIDO has formulated many training programs
Appreciation course in industrial management Specialized course in the area of production, marketing, financial, export and material management Adhoc incentive course on inspection and quality control, work study, salesmanship

4. Indian Investment Center (IIC)

It is responsible for promoting mutually rewarding joint ventures and conducting EDPs
IIC setup an entrepreneurial guidance bureau to guide entrepreneurs for establishment of new enterprise.

5. National Institute for Small Industry Extension and Training (NISIET), Hyderabad

It was established in early 1950s to provide training and extension services. Integrated training at Nilokheri provides technical training to artisans, workers and entrepreneurs, managers. It organizes about 45 national and 15 international programs every year.

6. Small Industrial Bank of India (SIDBI)

The aim of SIDBI is too nurture entrepreneurs through training, motivation and guidance. The EDPs are normally of six weeks duration Agencies specialized in conducting EDPs like entrepreneurs development institute of India, Institute of entrepreneurship development, center for entrepreneurship development, technical consultancy organizations A few specialized technical institutes liked central institute of plastic engineering and technology, rural technology institute have also been extended assistance of conduct of product specific EDPs.