UNIT 2

Entrepreneurship

 1) Imaginative: It refers to the imaginative approach or original ideas with competitive market. Well-planned approach is needed to examine the existing situation and to identify the entrepreneurial opportunities. It further implies that women entrepreneurs have association with knowledgeable people and contracting the right organization offering support and services. 2) Attribute to work hard: Enterprising women have further ability to work hard. The imaginative ideas have to come to a fair play. Hard work is needed to build up an enterprise.. 3) Persistence: Women entrepreneurs must have an intention to fulfill their dreams. They have to make a dream transferred into an idea enterprise; Studies show that successful women work hard. 4) Ability and desire to take risk the desire refers to the willingness to take risk and ability to the proficiency in planning making forecast estimates and calculations. 5) Profit earning capacity: she should have a capacity to get maximum return out of invested capital.

Role of women as an Entrepreneurs:

Leadership Qualities Some of the outstanding qualities of women entrepreneurs are as follows: Accept challenges Ambitious Drive Enthusiastic Hard work Patience Industrious Motivator Skillful Adventurous Conscious Educated Determination to excel Keenness to learn and imbibe new ideas Experienced Intelligent Perseverance Studious

How to Develop Women Entrepreneurs? Right efforts on from all areas are required in the development of women entrepreneurs and their greater participation in the entrepreneurial activities. Following efforts can be taken into account for effective development of women entrepreneurs. Consider women as specific target group for all developmental programmes. Better educational facilities and schemes should be extended to women folk from government part. Adequate training programme on management skills to be provided to women community. Encourage womens participation in decision-making. 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 womens polytechnics and industrial training institutes. Skills are put to work in training-cum-production workshops. Training on professional competence and leadership skill to be extended to women entrepreneurs. Training and counseling on a large scale of existing women entrepreneurs to remove psychological causes like lack of self-confidence and fear of success. Counseling through the aid of committed NGOs, psychologists, managerial experts and technical personnel should be provided to existing and emerging women entrepreneurs. Continuous monitoring and improvement of training programmes. Activities in which women are trained should focus on their marketability and profitability.

 Making provision of marketing and sales assistance from government part. To encourage more passive women entrepreneurs the Women training programme should be organized that taught to recognize her own psychological needs and express them. State finance corporations and financing institutions should permit by statute to extend purely trade related finance to women entrepreneurs. Womens development corporations have to gain access to open-ended financing.

 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. Repeated gender sensitization programmes should be held to train financiers to treat women with dignity and respect as persons in their own right. Infrastructure, in the form of industrial plots and sheds, to set up industries is to be provided by state run agencies. Industrial estates could also provide marketing outlets for the display and sale of products made by women. A Women Entrepreneurs Guidance Cell set up to handle the various problems of women entrepreneurs all over the state. District Industries Centre's and Single Window Agencies should make use of assisting women in their trade and business guidance. Programmes for encouraging entrepreneurship among women are to be extended at local level.

 Training in entrepreneurial attitudes should start at the high school level through welldesigned courses, which build confidence through behavioral games. More governmental schemes to motivate women entrepreneurs to engage in small scale and large-scale business ventures. Involvement of Non Governmental Organizations in women entrepreneurial training programmes and counseling.

Criteria to Select a Product

 Starting a business is like jumping out of an airplane without a parachute. In mid air the entrepreneur begins building a parachute and hope it opens before hitting the ground. Rich Dad.

5 Reasons Why You Must Conduct Feasibility Study Before Starting a business
1. A feasibility study will help you to determine the profitability of the business venture. Before starting a business, seasoned entrepreneurs and investors would want to know if the business would be worth their time, effort and resources. It is worthwhile to know that many entrepreneurs have abandoned solid business ideas because the profitability could not be ascertained on conducting a feasibility study on the business idea. 2. A feasibility study will help prove to the entrepreneur, venture capitalists, lenders and investors the existence of the market, the liquidity of the business venture and the expected return on investment. 3. A feasibility study will help you identify the flaws, business challenges, strengths, weaknesses, opportunities, threats and unforeseen circumstances that might affect the success and sustainability of the business venture. Just like the case of my dads business, the business failure and loss of money would have been avoided if we had carried out a feasibility study. We simply jumped in based on someones recommendations because we were flushed with cash and we paid dearly for it.

 4. Before starting a business, a feasibility study will enable you estimate the financial, human and technological resources that will be needed to ensure the successful launching of the business. Feasibility study helps to reveal the number and level of skill or unskilled workers to be employed and their salary scale. 5. Feasibility study will help you to determine the amount of capital required to start the business. It will also help you in establishing the budget plan, working capital and cash flow projections of the business. As a last note, my advice to you is this: Never invest a dime without first carrying out feasibility study on the business idea.

Scope
Small entrepreneurs cover a wide range of business activities. The range of products manufactured by small-scale industries is very wide from baskets to precision electronic and optical instruments.

 (1) Manufacturing Industries: This type of small entrepreneurs is involved in producing complete articles used for direct consumption and also for processing industries: (2) Village and Cottage Industries: Village and cottage industries are industries which are carried on in homes of workers which we have designated as cottage industries. (3) Handlooms and Handicrafts: These industries cover artisans, skilled craftsmen and technicians who can work in their own houses if their work requires less than 300 square feet space, less than 2 kW power less than 5 workers and no pollution is caused. Handicrafts, toys, dolls, small plastic and paper products, electronic and electrical gadgets are some examples of these industries.

(4) Modern Small Entrepreneurs: These industries are : (a) Small Entrepreneurs: According to Government of India, 2000, small scale industry is an undertaking having an investment in plant and machinery of not more than Rs. 1 corer. (b) Ancillary Industries: These are industrial undertakings having fixed investment in plant and machinery not exceeding Rs. 75 lakes (Government of India, 1991) engaged in (i) the manufacture of parts components, sub-assemblies, tooling or intermediaries, or (ii) the rendering of services supplying 30% of their production or services, as the case may be, to other units for production of other articles (iii) Tiny Units: This refers to undertakings having fixed investment in plant and machinery not exceeding Rs. 5 lakes. These also include undertakings providing services such as laundry, zeroing, repairs and maintenance of customer equipment and machinery, hatching and poultry etc.

 II) Trading Industries: These types of small entrepreneurs are engaged in sale and purchase or exchange of goods and services. These industries act as middlemen between producers and consumers. This type of units includes wholesaler, retailer and commission agents. (III) Service Industries: These small entrepreneurs establishments are engaged in personal or household services in rural areas and towns with population not exceeding 5 lakes and having fixed investment in plant and machinery not exceeding Rs. 2 lakes. These industries include: (a) Professional services e.g. services of law, accounting medicine, consultancy etc. (b) Commercial services e.g. transport, constructing warehousing, real estate, repair shops etc. (c) Personal services e.g. fashion shops, dry cleaning restaurants, etc.

1. Employment Generation: The SSI sector in India is the second largest manpower employer in the country next only to the agriculture sector. India is characterized by abundant labour supply and is plagued by unemployment and underemployment. Under these circumstances the small-scale sector is a boon .For every Rs.0.1million of investment, the small-scale sector provides jobs to 26 people as compared to 4 jobs created in the large-scale sector. 2. Low Initial Capital Investment: Another feature of the Indian economy and most of the developing economies is the scarcity of capital. The modern largescale sector requires colossal investments whereas the small sector is just the opposite. Not only is the employment capital ratio high for the SSI but the output capital ratio is also high. 3. Balanced Regional Development: Dispersion of small business in all parts of the country helps in removing regional imbalances by promoting decentralized development of industries. It helps in industrialization of rural and backward areas. It also helps to reduce problems of congestion, pollution, housing, sanitation etc.

ROLE OF SMALL BUSINESS IN NATIONAL ECONOMY

4. Equitable Distribution of Income: This is a natural corollary of the above. When entrepreneurial talent is tapped in different regions and areas the income is also distributed instead of being concentrated in the hands of a few individuals or business families. 5. Promotes Inter- Sectoral Linkages: SSI units are supplementary and complementary to large and medium scale units as ancillary units. Many small units produce sub-parts, assemblies, components and accessories for the large scale sector especially in the electronic and automotive sectors. 6. Exports: The most significant contribution of the SSI has been in the field of exports. There has been a significant increase in the exports from this sector of both traditional and non-traditional goods including jewellery, garments, leather, hand tools, engineering goods, soft ware etc. 7. Development of Entrepreneurship: Small business taps the latent potential available locally. This way they facilitate the spirit of enterprise, which results in overall growth, and development of all the regions /sectors of the nation

SSI Registration
Small Scale and ancillary units (i.e. undertaking with investment in plant and machinery of less than Rs. 10 million) should seek registration with the Director of Industries of the concerned State Government Registering your SSI Unit The main purpose of Registration is to maintain statistics and maintain a roll of such units for the purposes of providing incentives and support services. States have generally adopted the uniform registration procedures as per the guidelines. However, there may be some modifications done by States. It must be noted that small industries is basically a state subject. States use the same registration scheme for implementing their own policies. It is possible that some states may have a 'SIDO registration scheme' and a 'State registration scheme'.

 Benefits of Registering The registration scheme has no statutory basis. Units would normally get registered to avail some benefits, incentives or support given either by the Central or State Govt. The regime of incentives offered by the Centre generally contains the following: - Credit prescription (Priority sector lending), differential rates of interest etc. - Excise Exemption Scheme - Exemption under Direct Tax Laws. - Statutory support such as reservation and the Interest on Delayed Payments Act. (It is to be noted that the Banking Laws, Excise Law and the Direct Taxes Law have incorporated the word SSI in their exemption notifications. Though in many cases they may define it differently. However, generally the registration certificate issued by the registering authority is seen as proof of being SSI). States/UTs have their own package of facilities and incentives for small scale. They relate to development of industrial estates, tax subsidies, power tariff subsidies, capital investment subsidies and other support. Both the Centre and the State, whether under law or otherwise, target their incentives and support packages generally to units registered with them.

Objectives of the Registration Scheme They are summarised as follows: To enumerate and maintain a roll of small industries to which the package of incentives and support are targeted. To provide a certificate enabling the units to avail statutory benefits mainly in terms of protection. To serve the purpose of collection of statistics. To create nodal centres at the Centre, State and District levels to promote SSI. Features of the Scheme Features of the scheme are as follows:

DIC is the primary registering centre Registration is voluntary and not compulsory. Two types of registration is done in all States. First a provisional registration certificate is given. And after commencement of production, a permanent registration certificate is given. PRC is normally valid for 5 years and permanent registration is given in perpetuity.

 Provisional Registration Certificate (PRC) This is given for the pre-operative period and enables the units to obtain the term loans and working capital from financial institutions/banks under priority sector lending. Obtain facilities for accommodation, land, other approvals etc. Obtain various necessary NOCs and clearances from regulatory bodies such as Pollution Control Board, Labour Regulations etc. Permanent Registration Certificate Enables the unit to get the following incentives/concessions:
Income-Tax exemption and Sales Tax exemption as per State Govt. Policy. Incentives and concessions in power tariff etc. Price and purchase preference for goods produced. Availability of raw material depending on existing policy. Permanent registration of tiny units should be renewed after 5 years.

Procedure for Registration Features of the present procedures are as follows: A unit can apply for PRC for any item that does not require industrial license which means items listed in Schedule-III and items not listed in Schedule-I or Schedule-II of the licencing Exemption Notification. Units employing less than 50/100 workers with/without power can apply for registration even for those items included in Schedule-II. Unit applies for PRC in prescribed application form. No field enquiry is done and PRC is issued. PRC is valid for five years. If the entrepreneur is unable to set up the unit in this period, he can apply afresh at the end of five years period. Once the unit commences production, it has to apply for permanent registration on the prescribed form. The following form basis of evaluation: The unit has obtained all necessary clearances whether statutory or administrative. e.g. drug license under drug control order, NOC from Pollution Control Board, if required etc. Unit does not violate any locational restrictions in force, at the time of evaluation. Value of plant and machinery is within prescribed limits. Unit is not owned, controlled or subsidiary of any other industrial undertaking as per notification. De-Registration A Small Scale Unit can violate the regulations in the following ways which will make it liable for deregistration: It crosses the investment limits. It starts manufacturing any new item or items that require an industrial license or other kind of statutory license. It does not satisfy the condition of being owned, controlled or being a subsidiary of any other industrial undertaking.