WELCOME

ENTERPENURSHIP DEVELOPMENTIN MSME SECTOR

SUBMITTED BYSOUMYA RANJAN MOHAPATRA MBA 3RD SEMISTER REG NO- 1406369028MANABHAJAN BHUE MBA-3RD SEMISTER REG NO- 1406369015

MSME SECTOR ANALYSIS

EntrepreneurAn entrepreneur is defined as person in effective control of commercial undertaking; one who undertakes a business or an enterprise.Entrepreneur is an innovative person who maximizes his profits by following new strategies or venturing into new products or services. PreviousNextEnd

Entrepreneurship is the act of being an entrepreneur, who starts any economic activity for being self-employed.

Entrepreneurship is the process of the entrepreneur. It is an attempt to create value through recognition of business opportunity. It is basically communicative and management functions to mobilize financial and material resources.

The entrepreneurial activity is governed by varying combination of socio-economic, psychological, cultural and other factors: Caste/religion, Family background, Level of education, Level of perception, Occupational background, Migratory character, Entry into entrepreneurship, Nature of enterprise, Investment capacity and Ambition/moderation.

Entrepreneurship

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13.3% in 2014

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Who is a Entrepreneur............

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WHAT ENTREPRENEURS DO?EMPLOYMENT & INCOME GENERATION

ENTERPRISES

ENTREPRENEURS

Taxes/Govt. Revenues

Poverty AlleviationHigher Productivity & Innovations

Output & ExportsWealth

Entrepreneurial CharacteristicsBeing an entrepreneur requires specific characteristics and skills that are often achieved through education, hard work, and planning.

Risk TakerBusinesses face risk. Entrepreneurs minimize risk through research, planning, and skill development.

PerceptiveEntrepreneurs view problems as opportunities and challenges.

CuriousEntrepreneurs like to know how things work. They take the time and initiative to pursue the unknown.8

Entrepreneurship development

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8ENTREPRENEURIAL CHARACTERISTICSRisk TakerEntrepreneurs often take on a high degree of risk and stress.Many entrepreneurs face bankruptcy, that can leave them with not business and no personal assets.PerceptiveThe owner of Cott Corp. was perceptive, he saw the opportunity to offer a private-label beverage to the grocery industry.Private label or private brand is a product that is manufactured by another company but is sold with a stores brand name; also called a store brand or private brand.CuriousRay Kroc, a leader in the development of the modern franchise system, recognized the potential of the McDonalds brothers restaurant and its formula for producing good and inexpensive food and capitalized on it.

Entrepreneurial CharacteristicsImaginativeEntrepreneurs are creative. They imagine solutions to problems that encourage them to create new products and generate ideas.

PersistentTrue entrepreneurs face bureaucracy, make mistakes, receive criticism, and deal with money, family, or stress problems. But they still stick to their dreams of seeing the venture succeed.

Goal-settingEntrepreneurs are motivated by the excitement of staring a new business. Once achieved, they seek out new goals or ventures to try.

HardworkingEntrepreneurs need a great deal of energy to see a venture start and succeed. Yet they are not deterred by the long hours to achieve their goal.9PreviousNextEnd

9ENTREPRENEURIAL CHARACTERISTICSImaginativeThe founder of Canadian Railway Newspaper Company (Cara Operations Ltd.), T.P. Phelan took his newspaper service to the next step by providing food service in many sectors.PersistentThe story about The Little Engine That Could is a childrens storybook tale of persistence.Goal-settingSome entrepreneurs have local success and then take on new challenges by going international with their business.HardworkingJ.M. Schneider worked days for a button factory and in the evenings and at night he worked to provide his own customers with sausages.

Entrepreneurial CharacteristicsSelf-confidentEntrepreneurs believe in themselves. Their self-confidence takes care of any doubts they may have.

FlexibleEntrepreneurs must be flexible in order to adapt to changing trends, markets, technologies, rules, and economic environments.

IndependentAn entrepreneurs desire for control and the ability to make decisions often makes it difficult for them to work in a controlled environment. 10PreviousNextEnd

10ENTREPRENEURIAL CHARACTERISTICSSelf-confidentSir Richard Branson, the founder of Virgin Records, went out of his comfort zone and started Virgin Airlines.FlexibleVideo rental businesses demonstrated flexibility buy quickly adapting to the change from video format to DVD format.IndependentEach venture is a reflection of the independent entrepreneur who started it.

See

Increases national production

Balanced area development

Dispersal of economic power

Reinvestment of profit for the welfare of the area of profit generation

Development is a function of motivation and human resource

Entrepreneurial awareness

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Micro, Small & Medium Enterprises

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Growth of Micro, Small & Medium Enterprisesin India

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After Indias independence, Cottage and Small scale sector was given prime importance in the economic and industrial policies for:

Industrial dispersal

Employment creation

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1513 Million MSMEs> 8000 products45% industrialproduction40% Exports31 Million EmploymentPERFORMANCE AND CONTRIBUTION OF MSMEs For MSEsIndustrial Production 45% Exports : 40%

MSMEs

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Micro, Small and Medium Enterprises Development Act 2006 (MSMED)MSMED Act 2006 promulgated in order to :

remove impediments due to multiple lawsintroduce statutory consultative and recommendatory bodies on MSME policiesimprove registration procedures of MSMEsstatutory basis for purchase preference and credit policiesImprove realisation of payments of MSMEs16

17Micro, Small and Medium Enterprises Development Act, 2006

Salient FeaturesAmbit of sector enlarged to cover medium enterprises.Constitution of MSME BoardSimplification of registration procedure

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Policy of preferential procurement from MSMEsProgressive credit supportPenalty for delayed paymentsProvision for exit policy

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Manufacturing Enterprises

Micro Rs. 2.5 million (US$ 56000)

Small Rs. 50 million (US$ 1.1 million)

Medium Rs. 100 million (US$ 2.2 million)

Services Enterprises

19MSME classification based on investment limit in plant and machinery:Micro Rs. 1 million (US$ 22000)

Small Rs. 20 million (US$ 0.4 million)

Medium Rs. 50 million (US$ 1.1 million)

20Institutional Support Structure for MSMEs in India

At Federal LevelMinistry of MSMEsSmall Industries Development Organisation (SIDO)National Small Industries Corporation(NSIC)Khadi & Village Industries Commission(KVIC)Coir BoardEntrepreneurship Development Institutions (EDIs)

MSMEsAt State LevelDirectorate of IndustriesDistrict Industries CentresState Finance CorporationState Industrial Development CorporationTechnical Consultancy OrganisationsEntrepreneurship Development Institutions (EDIs)OthersIndustry AssociationsNGOsBanks/Financial Institutions

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Entrepreneurship Development ProgramesPrime Ministers Employment Generation Programme PMEGP

EDP Institutes

Incubators 21

International Cooperation ProgrammeProvides exposure to MSMEs to the latest technologies, manufacturing practices prevalent in their fields in different countries.

Encourages their participation in international exhibitions for exports22

23MAJOR SCHEMES FOR MSMEs SUPPORT

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24 Credit SupportPublic sector banks advised to double the flow of credit to MSMEs within 5 years (20% annual growth)A minimum of 40% of bank credit earmarked for priority sector lending which includes loans to MSEsSpecialised SME Bank branches in industrial clusters for smooth flow of credit to MSMEsOne Time Settlement (OTS) scheme for settling NPAs of MSMEsInterest band prescribed

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25Helps MSMEs in accessing credits from banks & financial institutions, orders from foreign buyersHelps in assessing their strengths and weaknesses. Rating by one of the empanelled national or international Rating agencies. Government subsidises 75% of the cost of Rating fee Concessional credits from Banks/FIs to such rated unitsPerformance and Credit Rating Scheme

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26Credit Guarantee Fund for Small EnterprisesCredit Guarantee Fund Trust for Micro & Small Enterprises (CGFTSI) gives guarantee to its Member Lending Institutions for their collatoral free loans to MSEs upto INR 2.5 million (USD 64000). Initial guarantee fee at specified rate (1.5% ) of the credit facility sanctioned shall be paid upfront and thereafter annual fee.Provides comfort to the Banks and Financial Institutions.

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27Technological SupportCredit Linked Capital Subsidy Scheme for Technology Upgradation Scheme meant to improve quality of products by technology upgradation.Investment upto INR 10 million (US$ .250,000) eligible for support with subsidy upto 15% on investment.Technology Business Incubators for incubating new enterprisesTesting Centres for Quality CertificationTool Rooms and Training Centres for skill upgradation Incentive scheme for obtaining ISO Certification by MSEs

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28Marketing Assistance and Export PromotionSupport for participation in trade fairs and exhibitions national as well as internationalTraining programmes on packaging for exportsPurchase preference in Government procurementMarket Development Assistance Scheme for publicity, market studies and adoption of modern market practices

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29Cluster Development Programtechnology upgradation & productivity improvement energy conservation & pollution control

Rs 1 million assistance for capacity building activities without fixed assetsGrant upto 80% of Project cost with ceiling of Rs.100 million to implementing agency for:

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ENTREPRENEURIAL OPPORTUNITIES IN AGRICULTURE SECTOR AS A MSME

Entrepreneurial Opportunities in Agriculture:

Diversification: Organic farming: Food preservation, processing and packaging:Production of agro-inputsFloriculturePreviousNextEnd

Entrepreneurial Opportunities in Agriculture

Diversificationhttp://dfs.berkeley.edu/about-us/mission-goals/

Diversification in agriculture involve shift in cropping pattern from traditionally grown less remunerative crops to more remunerative crops like oilseeds, pulses, fodder crops, horticulture, medicinal and aromatic plants, floriculture etc. It also includes livestock and fishery enterprises and small scale agro-based industries. Diversification increases the employment opportunities, optimum use of resources and profitability.

Entrepreneurial Opportunities in Agriculture:

Organic farming: The importance of organic farming is growing very fast particularly in international market. This sector provides great business opportunities to agro-based entrepreneur. Area under organic farming is increasing but unable to meet the demand of organic produce. http://www.organicagriculture.co/indian-scenario.php

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Entrepreneurial Opportunities in Agriculture:

Food preservation, processing and packagingLarge proportion of agricultural produce is wastage due to improper storage and warehousing, lack of transportation and food processing facilities. There is a significant shift in consumer food preference towards processed food products. Entrepreneurs can add value with proper management and marketing initiatives. The processed food market opens a great potential for entrepreneurs be it fast food, packaged food or organic food. food-preservation-can-jam-9-stone-fruits/

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floriculture is a very lucrative sector. India's share in world trade of floriculture is just 0.18 per cent. This is a huge market to be tapped considering the rising demand for fresh flowers.

Entrepreneurial Opportunities in Agriculture:

Floriculture

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Production of agro-inputs:Farmers can start entrepreneurial activities in the production of seed, organic fertilizers and pesticides.

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Let Us Sum Up

Entrepreneur is one who identifies and sensitizes the opportunities, innovate the ideas, raises money, assembles inputs and set and mange the organizationThe introduction of entrepreneurship in agriculture requires development of certain qualities and skills like positive self concept, moderate risk taker, planning, innovative, information and opportunity seeking, etc. in an entrepreneur.Important entrepreneurship development opportunities in agriculture are diversification in agriculture, income from venture technologies, food preservation, processing and value addition, production of agro-inputs. The entrepreneurial qualities and skills can be developed through vocational education programmes and training. PreviousEnd

41THANK YOUAMIT COLLEGE

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