2. Evolution of Entrepreneurship in India Phase 1:
Entrepreneurship in Pre-Bristish India Phase 2: Decline of
Entrepreneurship during the British Period Phase 3:
Entrepreneurship development in Independent India
3. Phase 1: Entrepreneurship in Pre- British India Villages
Self-sufficient Farmers, Artisans, craftsmen, etc.., Value of Labor
Land of Gold
4. Phase 2: Decline of Entrepreneurship during the British
Period Competition from British Industries Mechanization came into
picture Raw materials were exported and Machine made goods flooded
in Indian Market. Machine made goods were cheap, than handmade.
Eg., Textiles. Value of labor was lost, and citizens took pride in
serving in Administrative services in British offices. Blue collar
jobs were substituted by white collar jobs Risk-bearing ability and
confidence were substituted by obedience to British administration.
Indian economy was paralyzed
5. Phase 3: Entrepreneurship development in Independent India
Agriculture was concentrated at first No skilled labor, shortage of
capital etc hinders Industrial sectors growth Deficit in BOP,
Exports of labor intensive products viz., agricultural products and
Import of scarce Raw materials, machinery and equipments.
Infrastructure facilities like electricity, transportation, postal
services, telecommunications, godown facilities etc., were not
available. Economic policy in 1948 published its first Industrial
Policy Resolution
6. Salient features of Economic policy Socialistic pattern of
society Mixed economy was the economic philosophy Imbalanced growth
concept Planned economic development
7. Goals planned to achieve with he Economic planning Removal
of Poverty Increasing the National income Increasing the per capita
income Agricultural self-sufficiency Speedy Industrialization
Production of capital goods, t create a base for further
industrialization Production of consumer goods Removal of economic
inequalities Removal of regional disparities Promotion of exports
and imports substitution
8. EDP Entrepreneurial Development Programme Is defined as a
programme designed to help an individual in strengthening
entrepreneurial motive and in acquiring skills and capabilities
necessary for playing entrepreneurial role effectively
9. Objectives of EDP Economic growth Balanced regional
development To Eliminate Poverty and unemployment Optimum
utilisation of Resources Empower new generation Entrepreneurs To
develop broad vision of business, passion for integrity and
honesty
10. Curriculum of EDP General introduction to Entrepreneurship
Achievement Motivation Training (AMT) Support system and Procedures
Market Survey and Plant Visit Managerial Skill Project preparation
and Feasibility Study
11. Role of Government in EDP Training Support from different
institutes Marketing Assistance Promotional schemes Concession on
Excise duty Credit facility to MSME
12. Steps in Creating and Enhancing an effective EDP Outline
the objective and focus on Venture development Selecting skilled
people who have high entrepreneurial potential Identify local
market and search for people with potential. Provide support
through private sector based organisations Provide methodology
which supports Entrepreneurs in Short and Long run as well.
Implement measures to improve usefulness of Trainers and
facilitators Selection of areas for pilot program Launch Pilot EDP
Governement Policies
13. Problems of EDP Non availability of competent Faculty Over
estimation of Trainees Duration of EDPs. No policy at the national
level. Non availability of Infrastructural facilities Improper
methodology Mode of selection Poor response
14. Women Entrepreneurship Acc to Schumpter, Women who
innovate, imitate or adopt a business activity Acc to Govt of
India, An enterprise owned and controlled by a women having a
minimum financial interest of 51% of the capital and giving at
least 51% of the employment generated in the enterprise to
women.
15. Problems of Women entrepreneurs Limited mobility Lack of
self confidence Lack of information Severe competition Marketing
Problems Shortage of raw materials Financial problems Lack of
encouragement from family Low need for achievement Low need for
achievement Social attitudes Work-life imbalance Over
dependence
16. Role of Entrepreneurship in Economic development Capital
formation Improvement in per capita income Improvement in living
standards Economic independence Backward and forward linkages
Generation of employment Harnessing locally available resources
Balanced regional growth Reducing unrest and social tension amongst
youth Innovations in enterprises
17. Opportunity Assessment
18. Opportunity Identification and Selection Opportunity is
defined as a time or set of circumstances that makes it possible to
do something or to achieve something.
19. Factors influencing Business Opportunities Accessibility of
Industrial Inventory Chance of export Congregation of information
regarding the tentative industry Ease of use of internal resources
Form of external support Height of risk in the business Level of
demand Analysis of existing units performance
20. Business Environment Business Environment is an environment
in which business is conducted and encompasses of factors that
affect a Companys operations including customers, competitors,
suppliers, distributors, industry trends, substitutes, regulations,
government activities, demographics, social and cultural factors,
innovation, and Technological developments
21. Features of Business Environment Totality of external
forces Specific and general forces Dynamic in Nature Uncertainty
Relativity
22. Importance of Business Environment Firm to identify
opportunities and getting the first mover advantage Firm to
identify threats and early warning signals Coping with rapid
changes Improving performance
23. Environmental Analysis Refers to the evaluation of the
possible or probable effects of external forces and conditions on
an organisations survival and growth strategies
24. Benefits of Environmental Analysis Identification of
strength, Weakness, Opportunities and Threats Keeping the Business
enterprise alert Keeping business flexible and Dynamic
Understanding future problems and prospects Making business
Socially acceptable Ensures optimum utilisation of resources
Ensures survival and growth Maintaining adaptability to
changes
25. Process of Environmental Analysis Step1: Identification of
relevant environmental variables Step2: Collection of Information
Step 3: Forecasting Step 4: Monitoring
26. Limitations of Environmental Analysis Environmental
analysis does not predict the future, nor does it eliminate
uncertainty for any organization It is not a sufficient guarantor
of organisational effectiveness The potential of environmental
analysis is often not realised bcos of how it is practiced Not much
reliable without secondary facts supporting it.
27. Steps for New Venture start-ups Identification and
evaluation of the opportunity Developing a business plan
Determining the resources required Project appraisal and
feasibility plan Managing the Venture
28. Challenges of New Venture StartUps Start up Funding
Misunderstanding the market for a startup Startup Cash flow
problems Creating the right culture in your startup Patient
protection and affordable care act
29. PitFalls in selecting New Ventures Create agile business
systems Passion without a plan Selling too cheaply Ineffective
Marketing and advertising Understanding Capital Lack of management
oversight Lack of specific skills
30. Critical Factors for New Venture Development Use a Contract
Create responsive business systems Understand your payment terms
Know the difference between employee and independent contractor
Have legal agreements handy
31. Why New Venture fails No business plan Under funded Lack of
operating goals and objectives Failure to measure Goals and
Objectives Failure to pay attention to Cash flow Failure to
understand the industry and the target customer Poor or no
marketing programs Underestimating the competition Not cost
competitive Lack of attention to accounts receivables and inventory
Poor people management skills
32. Sources of Finance for New Venture Equity Financing:
Exchanging a a portion of ownership of the business for a financial
investment in the business Life Insurance policies Home equity
loans Friends and relatives Venture capital Angel Investors
Government grants Equity offerings IPO Initial public offerings
Warrants Personal Savings
33. Sources of Finance for New Venture Debt Financing Friends
and relatives Commercial Finance companies Banks and other
commercial Lenders Government Programs Bonds
34. Sources of Finance for New Venture Lease
35. Module 3 Feasibility Analysis and Crafting Business
Plan
36. Feasibility Study The Feasibility study is an analytical
tool used during the project planning process, shows how a business
would operate under an explicitly stated set of assumptions. The
Feasibility study of a project can be ascertained in terms of
technical factors, economic factors or both. It is documented with
a report showing all the ramifications of the project viz.,
inflows, outflows of fund, technology, market, environment
etc.
37. Y Feasibility analysis? Helps in determining profitability
of business Helps to gather broad data for members of management to
take decision. Helpful for showing out projects which are
consistent with businesss objectives. Helps analyze the cost
benefit approach, as it considers all the costs of the projects.
Helps identify the SWOT and unforeseen circumstances that might
affect the success and sustainability of the business Helps in
estimating the financial, human and technological resources that
are required to ensure successful launching of the business
38. Steps in Feasibility study Identify and recognize the
people or firms that will be involved in preparing the various
aspects of the study. Examine the feasibility factors like., market
feasibility, Technical, Technology and system feasibility, Legal
Feasibility, Operational Feasibility, Economic Feasibility,
Resource feasibility, Cultural feasibility, and Financial
feasibility study Proceed with Management study If it is a
government project, social desirability has to be assessed Prepare
the summary of the feasibility study including brief description
and major assumptions made.
39. Types of Project Feasibility Types of Project Feasibility
Technical Managerial Economical Financial CulturalSocial Political
Environmental Market
43. Financial Feasibility Expenditures Expected Cash Flows Rate
of return on Investment
44. Cultural Feasibility Deals with the compatibility of the
project with the cultural environment of the project
Laborers/Employees Customers Stake holders Shareholders
45. Social Feasibility Eg., Dye units, in Ahmedabad have
mushroomed and are polluting and generate effluents which are not
acceptable to the society. The government has ordered closure of
all dye units unless suitable effluent treatment in
implemented
46. Market Feasibility Product, scope of the market and
competition USP, quality and pricing Demand Projections Export
facilities Adequate marketing infrastructure and principal
customers Selling arrangements Trends in price
47. Product or service feasibility analysis Concept test:-
Description of the Product/Service Intended Target market Benefits
of the product/service Description of how the product will be
positioned Description of how the product will be sold or
distributed
48. Elements of Technical Feasibility System Performance System
Interface Development Processes Risk assessment Staff qualification
Failure Immunity Customer support Security
49. Feasibility Report Includes the analysis of various factors
and viability of the project with the assumptions FSR Feasibility
Study Report Is formally documented output of feasibility study
that summarises results of the analysis and evaluations conducted
to review the proposed solution and investigate project
alternatives for the purpose of identifying if the project is
really feasible, cost-effective and profitable
50. Steps to write a FSR Write Project Description Describe
possible solutions Evaluation Criteria Write conclusion Propose the
most feasible Solution
51. Importance of Feasibility Report Helps to list all details
that are required for your idea to work Identifies the problems and
possible solutions Develop marketing strategies to convince the
investor that your idea is worth considering an investment Serves
as a solid foundation for developing the Business plan
52. Project Report The Project report is prepared by the
entrepreneur or by the consultants or associates in order to
present relevant facts before the decision makers to enable them to
decide whether the project is worthwhile the investment or not The
Project report includes Preparation of detailed designs, specs,
plant layouts, Process designs, and time schedules for the
execution of the project Collection of details or a complete work
plan for various processes or the project to be implemented after
the proposal has been finalized by the entrepreneur
53. Objective of a Project report Facilitates business planning
and planning the future course of action Enables an entrepreneur to
compare different investment proposals and select the most suitable
project Provides a SWOT analysis In case of public sector projects
this report would enable the concerned authorities to take an
objective decision on the project Facilitates the appraisal of the
project in regards to financial, economic and technical
feasibility
54. Contents of a Project report Sources of Finance (Long term
and Short term) Availability of machinery Technical Know-how Market
potential Overall profitability Project schedule
55. Advantages of a Project report Helps entrepreneur in
establishing techno-economic viability Helps in getting term loans
from banks and financial institutions. Helps in getting working
capital loan Shows feasibility of the project and possibility of
achieving profits
56. Problems faced in preparation of a Project Report Strict
conditions of promoters contribution may dampen Lending
institutions demand a lot of documents Assessment of working
capital due to unrealistic assumption Time overrun results in cost
overrun Government rules and regulations
57. Model project report for a new venture Sequence of standard
format to be followed in Preparing New Business Project report I.
Background of the Business II. Customers profile III. Long and
short term corporate Objectives I. To perform a viability
assessment of the proposed new business ideas in terms of
marketability , technical feasibility, financing and authorities
II. To be able to prepare a relevant business plan III. To
recognize fundamental start-up issues
58. IV. Market Analysis I. Brief discussion on the type of
market, chief influencers, players etc. II. Market description III.
Reasons for starting business in a particular market IV. Target
Clients V. Advantages of the services offered by the new business
VI. Market consumption patterns VII. Past and existing supply
location VIII. Production prospects and limitations IX. Exports and
Imports X. Price structure XI. Flexibility of demand XII. Client
behaviour, purposes, intentions, impetus, approaches, inclinations
and needs. XIII. Supply network and marketing rules formulated by
the government XIV. Government and technical limitations imposed on
the promotion of the product
59. V. Financial Assessment I. Investment expenditure and value
of the entire project II. Methods of investment III. Anticipated
productivity IV. Money flows of the project report V. Investment
value evaluated in context of different points of merit VI.
Estimated financial ranking VI. Marketing Assessment I. Product II.
Price III. Place IV. Promotion
60. VII. Operational Plan I. Business models II. Production of
goods and services VIII.Financial Plan IX. Management Structure X.
Business Structure(Ownership, staff etc) XI. SWOT Analysis XII.
Appendices I. Break-even analysis II. Profit and Loss synopsis III.
Fund flow summary
61. Business Plan A Business Plan is a written statement of
what an entrepreneur hopes to achieve in ones business and how is
one going to achieve it. Set of documents prepared by a firm's
management to summarize its operational and financial objectives
for the near future (usually one to three years) and to show how
they will be achieved. It serves as a blueprint to guide the firm's
policies and strategies, and is continually modified as conditions
change and new opportunities and/or threats emerge.
62. Business plan headings Owner details Description of the
business Outline of the market Evaluation of competition How the
business will be organised Proposed marketing mix Premises and
equipment Sources of capital Cash flow forecast Future plans
63. Significance of a business plan Used for planning out
specific details of business To define what business is or what the
business is or what it intends to be over time Clarifying the
purpose and direction of business Helps to plan for changes in the
market, growing or slowing trends and new innovations or directions
to take as the company grows The development of a comprehensive
business plan shows whether or not a business has the potential to
make a profit Act as sales tool to attract partners, secure
supplier accounts and attract executive level employees into the
new venture Conveys the organizational structure of a business,
including the titles of directors or officers and their individual
duties. Also Acts as a management tool that can be referred to
regularly to ensure business is on course with meeting the gals,
sales targets or operational milestones
64. Guidelines to prepare a Business Plan Do understand that
the planning process is critical to run a successful business Do
utilise the business outline to determine what to include in your
plan Ensure the plan fits you Be clear in your objectives Do
include market research Do include a financial plan and projections
Explain both Strengths and weaknesses of business idea Do reserve
and modify your plan as circumstances change
65. Format of a Typical Business Plan 1. The Executive Summary
2. Description of the business 3. Product/Service 4. Management 5.
Financial requirements 6. Organisation description 7. Industry 8.
Marketing strategy 9. Product/Operations Plan 10. Ownership 11. Key
personnel 12. Accounting records 13. Financial information 14.
Appendices
66. Objectives of Business Plan To give direction to the vision
formulated by the entrepreneur To Objectively evaluate the
prospectus of business To monitor the progress after implementing
business plan To persuade others to join business To seek loans
from financial institutions To visualise concept in terms of market
availability, organisational, operational and financial feasibility
To guide entrepreneur in actual implementation of plan To identify
actual strength and weakness of plan To identify challenges in
terms of opportunities and threats from the external markets To
clarify ideas and identify gaps in management information about
their business, competitors and market To identify the resources
required to implement
67. Business Plan Process Idea Generation Environmental
Scanning Feasibility Analysis Project Report Preparation
Evaluation, Control and Review
68. 1: Idea Generation Consumers/Customers Existing companies
Research and Development Employees Dealers and Retailers
69. 2: Environmental Scanning External Environmental Factor
Political Economical Social Technical Natural Demographical
Internal Environment Raw material Production/Operation Finance
Market Human Resource
70. 3: Feasibility Analysis Market Analysis Technical Analysis
Material Availability Material requirement planning Plant location
Plant capacity Machinery and equipment Marketing Plan Production
Plan/Operation Plan Organizational Plan Financial Plan
71. 4: Project Report preparation 5: Evaluation, control and
review Company has to operate in dynamic environment, it has
monitor ad review the strategies and policies to stay in line with
competition existing in market
72. Marketing Plan Refers to plan that describes market
condition and strategy related to how products and services will be
distributed, priced and promoted in market.
73. Marketing aspects of a Business plan Marketing Aspects Well
defined market Channel Strategy Positioning statement Pricing
strategy Communication Strategy Sales Strategy
74. Characteristics of an Effective Marketing Plan Should
provide strategy for accomplishing the company mission and goals.
Should be based on facts and valid assumptions Optimum utilization
of existing resources Should provide for continuity Should specify
performance criteria that will be monitored and controlled Should
short and simple Should be flexible to adapt for dynamic
market
75. Production/Operations Plan A Production Plan is that
portion of intermediate business plan that manufacturing/operations
department is responsible for developing The plan states in general
terms the total amount of output that the manufacturing department
is responsible to produce for each period in the planning
horizon
76. Operational aspects of Business Plan Operational Aspects
Operations Strategy
77. Organization Plan Is the process f identifying an
organizations immediate and long-term objectives, formulating and
monitoring specific strategies to achieve them. An Organization
chart should include: Hierarchical structure How business is
structured Legal form of ownership The Chain of command
78. Four stages of organizing a Business Establish a list of
the tasks using the broadcast of classifications possible Organize
these tasks into departments that produce an efficient line of
communication between staff and management Determine the type of
personnel required to perform each task Establish the function of
each task and how it will relate to the generation of revenue
within the company
79. Financial Plan Is a comprehensive evaluation of an
investors current and future financial state by using currently
known variables t predict future cash flows, asset values and
withdrawal plans.
