3rd sem mba question paper solved

ENTREPRENEURSHIP
1. Out line the components of a good project report

The Abstract
The abstract is an overview of the research study and is typically two to four paragraphs in length.
Think of it as an executive summary that distills the key elements of the remaining sections into a few
sentences.

Introduction
The introduction provides the key question that the researcher is attempting to answer and a
review of any literature that is relevant. In addition, the researcher will provide a rationale for
why the research is important and will present a hypothesis that attempts to answer the key
question. Lastly, the introduction should summarize the state of the key question following the
completion of the research. For example, are there any important issues or questions still open?
Methodology
The methodology section of the research report is arguably the most important for two reasons.
First it allows readers to evaluate the quality of the research and second, it provides the details
by which another researcher may replicate and validate the findings. (1)
Typically the information in the methodology section is arranged in chronological order with the
most important information at the top of each section. (2)
Ideally the description of the methodology doesnt force you to refer to other documents;
however if the author is relying on existing methods, they will be referenced.
Results
In longer research papers, the results section contains the data and perhaps a short introduction.
Typically the interpretation of the data and the analysis is reserved for the discussion section.
Discussion
The discussion section is where the results of the study are interpreted and evaluated against
the existing body or research literature. In addition, should there be any anomalies found in the

results, this is where the authors will point them out. Lastly the discussion section will attempt
to connect the results to the bigger picture and show how the results might be applied. (3)
References
This section provides a list of each author and paper cited in the research report. Any fact, idea,
or direct quotation used in the report should be cited and referenced.

2. Do you think that family business have hindered development of professional

management in india ? substantiate your answer .
While running your family business, you always encounter multiple challenges at the
interface of family and business, particularly while exploiting growth opportunities. You not only
have to develop competitive business strategies, but also build internal capabilities both on
business and family front to manage such situations. In most cases, family professionals have to
transform themselves to lead this change. This is not always easy because of the difficulties of
managing the challenges of professionalisation and governance involved. So this programme
enables you to identify and understand the challenges which come with the transformation of a
growing family business, and develop key skills for managing it.
WHO SHOULD ATTEND
Family business owners of multiple generations looking to take the business to the next growth
phase. We encourage nomination of more members from the same family business/group to
ensure greater learning experience. They often develop action agenda during the course of the
programme.

KEY BENEFITS
This programme will sensitise you, the family business owner, with the issues involved in this
journey of transformation and growth. You will learn to apply the tools and techniques for
creating the capabilities that will ensure sustained growth of the organisation.

3. Analyse the causes of entrepreneurial boom in the IT sector .

4. Define achivement motivation .how is that in society level of achievement is high

while in some others it is low?
Achievement motivation can be defined as the need for success or the attainment of excellence.
Individuals will satisfy their needs through different means, and are driven to succeed for varying
reasons both internal and external.
Theorists have proposed that people's achievement goals affect their achievement-related
attitudes and behaviors. Two different types of achievement-related attitudes include taskinvolvement and ego-involvement. Task-involvement is a motivational state in which a person's
main goal is to acquire skills and understanding whereas the main goal in ego-involvement is to
demonstrate superior abilities (Butler, 1999). One example of an activity where someone strives
to attain mastery and demonstrate superior ability is schoolwork. However situational cues, such
as the person's environment or surroundings, can affect the success of achieving a goal at any
time.
Studies confirm that a task-involvement activity more often results in challenging attributions
and increasing effort (typically in activities providing an opportunity to learn and develop
competence) than in an ego-involvement activity. Intrinsic motivation, which is defined as
striving to engage in activity because of self-satisfaction, is more prevalent when a person is
engaged in task-involved activities. When people are more ego-involved, they tend to take on a
different conception of their ability, where differences in ability limit the effectiveness of effort.
Ego-involved individuals are driven to succeed by outperforming others, and their feelings of
success depend on maintaining self-worth and avoiding failure. On the other hand, task-involved
individuals tend to adopt their conception of ability as learning through applied effort (Butler,
1999). Therefore less able individuals will feel more successful as long as they can satisfy an
effort to learn and improve. Ego-invoking conditions tend to produce less favorable responses to
failure and difficulty.
Competence moderated attitudes and behaviors are more prevalent in ego-involved activities
than task-involved. Achievement does not moderate intrinsic motivation in task-involving
conditions, in which people of all levels of ability could learn to improve. In ego-involving
conditions, intrinsic motivation was higher among higher achievers who demonstrated superior
ability than in low achievers who could not demonstrate such ability (Butler, 1999). These
different attitudes toward achievement can also be compared in information seeking.
Task- and ego-involving settings bring about different goals, conceptions of ability, and
responses to difficulty. They also promote different patterns of information seeking. People of all
levels of ability will seek information relevant to attaining their goal of improving mastery in
task-involving conditions. However they need to seek information regarding self-appraisal to
gain a better understanding of their self-capacity (Butler, 1999). On the other hand people in egoinvolving settings are more interested in information about social comparisons, assessing their
ability relative to others.

5. Outline the promotional and incentive measures undertaken by the governments to

promote entrepreneurship.

Have business-friendly laws and a functional, streamlined court

system. Business only works when people respect contracts.
Avoid regulations that entrench special business interests, e.g. licensing
requirements that discourage innovation and disintermediation.
Enforce market-corrective laws such as those concerning false advertising, product
safety, banking disclosures, anti-monopoly laws.
Protect intellectual property without it becoming a corporate welfare program.
Make all public records and other non-secret government data available in real time
via API: crime statistics, meetings, business licenses, court records, parking meteres,
school lunches, everything.
Train health, fire, building inspectors, people in charge of any kind of permitting and
enforcement that their job is to facilitate orderly commerce, not to be a bottleneck.
Keep permit fees low, approval process fast. Hire competent people and keep up
morale.
Promote public works, trade in a way that creates a positive brand among shoppers,
tourists, etc.
Fund public education, keep college affordable, encourage public and private
universities and trade schools.
Avoid corruption.

6. Discuss the institutional support for new ventures in india .

SUPPORTING ORGANISATIONS
ALL INDIA INSTITUTIONS
1 Small Scale Industries Board: SSI Board is the apex non-statutory advisory
body constituted by the Government of
India to render advice on all issues pertaining to the SSI sector. It provides a
forum to its members for interaction to
facilitate co-operation and inter institutional linkages and to render advice to
the Government on various policy matters, for
the development of the sector. The Board was first constituted in 1954. Its
term is for two years.
2 Ministry of Small Scale Industries: The process of liberalization and market
reforms has created wide-ranging

opportunities of the development of small scale industries. At the same time,

280 changing world scenario has thrown up
new challenges to the very existence of this sector. The need of the hour is
to suitably strengthen the sector so that it could
adapt itself to the changed environment and face the challenges boldly and
effectively. The implementation of policies and
various programmers/schemes for providing infrastructure and support
services to small enterprises is undertaken through
its attached office, namely the Small Industries Development Organization
(SIDO), statutory bodies/other organizations
like Khadi and Village Industries Commission (KVIC) & Coir Board, National
Small Industries Corporation (NSIC) and
three training institutes- National Institute of Small Industry Extension
Training (NISIET), Hyderabad, Indian Institute for
Entrepreneurship (IIE), National Institute for Entrepreneurship and Small
Business Development (NIESBUD)
3 Small Industry Development Organisation (SIDO):

Services.
Maintaining
Ministries,
Planning
close liaison
Commission,
and vital
Financial
linkage with the Central
Institutions, State Govts. & similar other developmental
organizations/agencies related to the promotion and
development of SSI Sector.
4 National Small Industries Corporation (NSIC) Limited: Some of the main
services provided by NSIC are described
below:
Machinery and Equipment (Hire-Purchase Scheme)
Machinery and Equipment (Lease Scheme)
Financial Assistance Scheme
Assistance for Procurement of Raw Material
Marketing Assistance
Government Store Purchase Programme
Technology Transfer Centre
5 The Khadi and Village Industries Commission (KVIC) The Khadi and Village
Industries Commission (KVIC) is a
statutory body created by an Act of Parliament in April 1957. The KVIC is
supposed to do the planning, promotion,

organization and implementation of programmes for the development of

khadi and other village industries in the rural areas
in coordination with other agencies engaged in rural development wherever
necessary. The broad objectives that the KVIC
has set before it are:
The social objective of providing employment
The economic objective of producing saleable articles,
The wider objective of creating self-reliance amongst the poor and building
up of a strong rural community spirit.
6 Coir Board: Coir Board is a statutory body established by the Government
of India under a legislation enacted by the
Parliament namely Coir Industry Act 1953 for the promotion and
development of Coir Industry in India as a whole.
7Industrial Finance Corporation of India ltd (IFCI): Some sectors that have
directly benefited from IFCIs disbursals
include:
Consumer goods industry (textiles, paper, sugar);
Service industries (hotels, hospitals);
Basic industries (iron & steel, fertilizers, basic chemicals, cement);
Capital & intermediate goods industries (electronics, synthetic fibers,
synthetic plastics, miscellaneous chemicals);
and
Infrastructure (power generation, telecom services).
8 Training Institutes:
National Institute of Small Industries Extension Training (NISIET)
The NISIET since its inception by the Government of India has taken gigantic
strides to become the premier institution for
the promotion, development and modernization of the SME sector. An
autonomous arm of the Ministry of Small Scale
Industries, the Institute strives to achieve its avowed objectives through a
gamut of operations ranging from training,
consultancy, research and education, to extension and information services.
National Institute for Entrepreneurship & Small Business
Development (NIESBUD):

NIESBUDS role is that of a catalyst as it helps in developing the

effectiveness of all these organizations. Programmes
initiated/sponsored by the NIESBUD are constantly evaluated and revised to
suit the changing needs in the area of
entrepreneurship and small business development. The institute is
engaged in creating a climate conducive for
entrepreneurship and in developing favourable attitude amongst the general
public in support of those who opt for
entrepreneurial career.
Entrepreneurship Development Institute of India (EDII):EDII has been
spearheading an entrepreneurship movement
throughout the nation in the belief that entrepreneurs need not necessarily
be born; they can be developed through wellconceived and well-directed activities.
Indian Institute of Entrepreneurship (IIE):The policy direction and guidance is
provided to the Institute by its Board of
Management whose chairman is the Secretary to the Government of India,
Ministry of Small Scale Industries. Chairman,
NEC, heads the governing council of the institute and the Secretary, SSI and
ARI, and Govt. of India head the Executive committee

7. Can microfinance and SHGs be launching pads for entrepreneurs? Discuss.

Microfinance can be defined as an economic development approach to

provide saving and investment facility to the poor around world. Microfinance is
not just about giving micro credit to the poor rather it is a tool whose objective is to
assist poor to work their way out of poverty. It covers a wide range of services like
credit, savings, insurance, remittance and also non-financial services like training,
counseling etc. With financial inclusion emerging as a major policy objective in the
country, Microfinance is playing a pivotal role to extend financial services to
unbanked sections of population. The Government of India has initiated various
programmes and schemes in the area of microfinance. The most important
programmes are SGSY (1999) and NABARDs SBLP (1992) which are using
SHGs approach. Other initiatives by government include IMY, Swa-Shakti,
DWCRA, CAPART, SJSRY, IFAD, Swayamsiddha, RMK etc. These all
programmes are aimed at reduction of poverty and improving the living condition

of rural poor with the help of economic activities. Microcredit offers access to
financial resources to the poorest of the poor in the rural areas. It allows people to
undertake self-employment activities or to venture very small businesses without
depending on money-lenders who demand exorbitant interest rates. In India
microfinance operates basically through two channels: 1. SHG Bank Linkage
Programme (SBLP) 2. Micro Finance Institutions (MFIs) In India, Self Help
Groups or SHGs represent a unique approach to financial intermediation. The
approach combines access to low-cost financial services involving a process of self
management, with an objective of social and economic development for the
women SHG members. Formations of SHGs are facilitated by the Government or
by NGOs. SHGs are linked not only to banks but also to wider development
programmes. SHGs are seen to confer many benefits, both economic and social.
They encourage women to save and access the credit which banks are increasingly
willing to lend. SHGs can also be community platforms from which women are
encouraged to become socially active especially with regard to issues affecting
their daily life. It is felt that proper monitoring and auditing of accounts on regular
basis will help these organizations to work in transparent manner nurturing their
relationship of trust and interdependency amongst themselves. Community audits
provide stakeholders in a local area the information they need to develop, a shared
view of the critical economic and social challenges that confront them and a forum
within which they can find solutions. Community audits focus not only on the
needs of a community, but also on its assets. A huge amount of fund is being
mobilized through these SHGs. It requires proper auditing of accounts on regular
basis to provide the transparency & accountability among the members. SHG-Bank
Linkage programme is a revolutionary step of financial inclusion in rural areas of
India. The number of saving linked SHGs now stands at 74.3 lakhs with a
membership of over 96.6 million poor households. The average savings bank
balance of SHGs with banks as on 31.3.2014 was Rs.13322. This issue presents a
good number of articles on the cover story theme Microfinance and Self Help
Group (SHG) by distinguished experts and authors. We look forward to
constructive feedback from our readers on the articles and overall development of
the journal. Please send your mails at editor@icmai.in. We thank all the
contributors to this important issue and hope our readers enjoy the articles.

8. Explain the following . a) ancillary industry b) contract manufacturing c)

franchising d) call centres .
Ancillary industries are those which manufacture parts and components to be used by
larger industries. Eg- Companies like GE (ancillary) produce engines for the aircraft industry.
contract manufacturing is an outsourcing of certain productionactivities that were previously
performed by the manufacturer to a third-party. A company may outsource the manufacture of
certain components for the product or outsource the assembly of the product.
Franchising is a long-term cooperative relationship between two entitiesa franchisor and one
or more franchiseesthat is based on an agreement in which the franchisor provides a licensed
privilege to thefranchisee to do business.
A call centre or call center is a centralised office used for receiving or transmitting a large
volume of requests by telephone. An inbound call centre is operated by a company or other
organization to administer incoming product support or information enquiries from consumers or
clients. Outbound call centres are operated for telemarketing, solicitation of charitable or
political donations, debt collection and market research.

9. Discuss the recent problem faced by SKS microfinance in andrapradesh.

Microcredit schemes in India have recently caused scandal. The media blame them
of causing over-indebted clients to commit suicide. Such reporting is overblown, but Indian
microfinance certainly is in a mess. [ By Oliver Schmidt ]
Microfinance has created opportunities for millions of people at the bottom of the pyramid
(BoP). These people live on meagre and mostly erratic incomes. Their work tends to be
unhealthy if not dangerous. Around 400 million BoP people live in India.
This is also the country with the most microfinance schemes. The hub of Indian microfinance is
the South-Indian state of Andhra Pradesh (AP), and the sectors problems there have recently
been making headlines internationally. While Indian microfinance certainly needs to improve
dramatically, the scandalising media attention is exaggerated. It is based on a wave of suicides in
AP, but it would be wrong to blame this depressing affair on microfinance institutions (MFIs).
In rural India, prolonged droughts and poor harvests typically trigger surges of suicides among
the desperate rural poor. This is what happened in recent months in AP. The media, however,
zoomed in on five dozen or so cases where indebtedness to a microfinance scheme contributed to
the hopelessness that drove people to choose death over life. Microfinance, however, is not the
prime reason for rural poverty. More often than not, it has provided people with opportunities to
improve their livelihoods.
APs ongoing tragedy is of international relevance. Several trends that mark microfinance all
over the world are especially evident in this state, and they have contributed to the current crisis,

as this essay will show. The trends are

- credit- rather than savings-driven schemes,
- scaling-up with the goal of stock-market listing and
- inappropriate regulations and political interference.

10. List out the sources of new business ideas

Sources of new ideas for Entrepreneurs
Entrepreneurs frequently use the following sources of ideas:
1. Consumers the potential consumer should be the final focal point of ideas for the
entrepreneurs. The attention to inputs from potential consumers can take the form of informally
monitoring potential ideas or needs or formally arranging for consumers to have an opportunity
to express their concerns. Care needs to be taken to ensure that the new idea or the needs
represents a large enough market to support a new venture.
2. Existing Companies with the help of an established formal methods potential entrepreneurs
and intrapreneurs can evaluate competitive products & services on the market which may result
in new and more market appealing products and services.
3. Distribution channels members of the distribution channels are familiar with the needs of the
market and hence can prove to be excellent sources of new ideas. Not only do the channel
members help in finding out unmet or partially met demands leading to new products and
services, they also help in marketing the offerings so developed.
4. Government it can be a source of new product ideas in two ways firstly, the patent office files
contain numerous product possibilities that can assist entrepreneurs in obtaining specific product
information, and secondly, response to government regulations can come in the form of new
product ideas.
5. Research & development Entrepreneurs own R&D is the largest source of new idea. A
formal and well-equipped research and development department enables the entrepreneur to
conceive and develop successful new product ideas.

11. Describe the role of universities of promoting entrepreneurship in india .

ENTREPRENEURSHIP EDUCATION IN INDIA Entrepreneurship education is an
important factor in determining and developing entrepreneurial qualities in individuals. The
entrepreneurial education in India post independence was a result of government focusing to
design the measures for encouraging self employment and founding small and medium
enterprises. As the economy transitioned from being primarily agrarian into one that has
significant contribution from other sectors, it was felt that the most pressing requirement was
education that would enable need-based entrepreneurs to make forays into these emerging
sectors. Consequently, in the 1960s and 70s, entrepreneurship education was almost exclusively
delivered in the form of training programs, offered by institutions under the aegis of State and
Central Governments, and by financial institutions receiving support from the Government.
Some of these institutions include. Training and counseling institutions (NISIET, SISI, TCOs,
EDI) Financial institutions like SBI, IDBI, TDICI, RCTC, etc. Development boards
(STEPs, EDCs, TBIs) But it was not until post liberalization phase in India after 1991 when the
country not just saw the potential of entrepreneurship as an employment generator but also as a
means of economic growth and wealth creation. By the end of 90s entrepreneurs viewed great
success of Indian firms particularly in IT sectors. This encouraged several institutions, NGOs,
B-schools, industrial units and consultancies to strengthen the entrepreneurial ecosystem in the
country and to establish the mode of education which was not based only on training. Some of
these include NIESBUD NSTEDB TiE (The Indus Entrepreneurs) NEN
Entrepreneurship education is still at nascent stage in India, according to surveys in 2010, there
were some 1,500 students getting Entrepreneurship education from the institutions that are solely
into Entrepreneurship education, while 4,700 students had enrolled to entrepreneurship programs
at various business schools and institutions across India, which increased to 44,500 students
enrolled to such programs. Many top business schools in the country such as IIMs, XLRI and SP
Jain Institute of Management offer specific programs in Entrepreneurship. IIM-Ahmadabads
Centre for Innovation, Incubation and Entrepreneurship has short and long term programs. The
NS Raghavan Centre for Entrepreneurial Learning in IIM-Bangalore has a management program
designed for entrepreneurs and family businesses. They also have tie-ups with Babson College in
Massachusetts, known for their entrepreneurship options and the London School of Business,
known for their global entrepreneurship program. IIM-Calcutta has international collaboration
with Yale Universitys entrepreneurship program for innovation. The Narsee Monjee Institute of
Management Studies (NMIMS) in Mumbai offers a two-year course on family business
management tailored to groom individuals who are taking over a family-owned business. The
Indian School of Business (ISB) in Hyderabad offers executive management and post graduate
programs in entrepreneurship education. ROLE OF EDUCATIONAL INSTITUTES IN
ENTREPRENEURSHIP DEVELOPMENT Education is of paramount for an individual who
wants to bring his idea successfully into the market. And educational institutes can help these
individual in nurturing and developing necessary skills and competencies. These Institutions
provide guidance, allow for routines to develop and ultimately reduce the uncertainty of social

interaction. The B-Schools are the most appropriate nursery of shaping and developing
management graduates for entrepreneurship who possess integrity and ethical standards, a deep
sense of social responsibility, a commitment to the up-liftment of their communities, understand
protection and sustainability of the environment, and the improvement of the peoples quality of
life. The educational institutions plays important role in development of entrepreneurial
competencies through various courses, training and development programs. These may be in the
form of short term or long term programs, requiring graduation or no by an individual.
Entrepreneurship is the activity driven by need for achievement of an individual and these
institutions help the individuals with motivational training. Individuals are encouraged by the
course structure and activity based programs by the institutions to identify, develop and sharpen
their skills and competencies. Case studies of various successful entrepreneurs help them to
identify the processes and potholes in their entrepreneurial journey so that they can learn and
formulate their strategies based on them. Also case studies prepared by the institutions help the
individuals to link themselves and encouraged by their role models, which provides a positive
motivation. Educational institutions provide a platform for individuals to nurture their creativity
and innovativeness. These play an important role both in financial and technical assistance to the
individuals through guides, mentors and consultants. Patenting ones product not only gives an
individual legal protection over duplication of his product but also helps him to gain higher profit
margins, reduce competition and results in bigger market share. Also it is an asset to an
individual but most of the entrepreneurs fail to realize the importance of these intellectual
properties. Educational institutes help individuals realize their importance and sometimes even
help in the process of filing a patent for their product. Social interaction is an important skill for
a successful entrepreneur. An entrepreneur has to regularly interact with bureaucratic
departments and market personals at early startups. Educational institutions impart
communication skills and personality development through their various programs. At the Bschool level, the programs are developed to cater to students of all disciplines. The topics
covered include new venture planning and venture creation, business strategy and formulation,
innovation, leadership and management, technology management, venture capital funding,
finance and operations, etc. As part of the curriculum, business schools also create a business inhouse experience for new entrepreneurs to develop their ideas into a business plan and thereby
simulate the experience of working in a start-up. The Entrepreneurship Development Institute of
India (EDI), which operates under the Government of India at designated locations, offers post
graduate diploma courses in business entrepreneurship, management, NGO management, etc. It
also provides programs for working professionals with flexible schedules and a distance learning
option for those unable to attend oncampus programs. The National Entrepreneurship Network
(NEN) designed a game called the Rs.50 Exercise for the classrooms of certain schools. The
students are given an initial investment amount of Rs.50. They have to work in teams and come
up with ideas to start a virtual company. By the end of the day, they observe their earnings and
also gain from the learning through an innovative exercise.

12. What are the roles of venture capital firms .

Venture capital (VC) is a type of private equity, a form of financing that is provided
by firms or funds to small, early-stage, emerging firms that are deemed to have high growth
potential, or which have demonstrated high growth (in terms of number of employees, annual
revenue, or both).

Roles[edit]
Within the venture capital industry, the general partners and other investment professionals of the venture capital firm
are often referred to as "venture capitalists" or "VCs". Typical career backgrounds vary, but, broadly speaking,
venture capitalists come from either an operational or a finance background. Venture capitalists with an operational
background (operating partner) tend to be former founders or executives of companies similar to those which the
partnership finances or will have served as management consultants. Venture capitalists with finance backgrounds
tend to have investment banking or other corporate finance experience.
Although the titles are not entirely uniform from firm to firm, other positions at venture capital firms include:

Position

Role

General

They run the Venture Capital firm and make the investment decisions on behalf of the fund. GPs

Partners or

typically put in personal capital up to 1-2% of the VC Fund size to show their commitment to the

GPs

LPs.

Venture

Venture partners are expected to source potential investment opportunities ("bring in deals") and

partners

typically are compensated only for those deals with which they are involved.

This is a mid-level investment professional position, and often considered a "partner-track"

Principal

position. Principals will have been promoted from a senior associate position or who have
commensurate experience in another field, such as investment banking, management
consulting, or a market of particular interest to the strategy of the venture capital firm.

This is typically the most junior apprentice position within a venture capital firm. After a few
Associate

successful years, an associate may move up to the "senior associate" position and potentially
principal and beyond. Associates will often have worked for 12 years in another field, such
as investment banking ormanagement consulting.

Entrepreneurs-in-residence (EIRs) are experts in a particular industry sector (e.g., biotechnology

Entrepreneurin-residence

or social media) and perform due diligence on potential deals. EIRs are hired by venture capital
firms temporarily (six to 18 months) and are expected to develop and pitch startup ideas to their
host firm, although neither party is bound to work with each other. Some EIRs move on to
executive positions within a portfolio company.

13. What is social entrepreneurship ? give examples.

Social entrepreneurship is the use of the techniques by start up companies and
other entrepreneurs to develop, fund and implement solutions to social, cultural, or
environmental issues.[1] This concept may be applied to a variety of organizations with different
sizes, aims, and beliefs.[2] For-profit entrepreneurs typically measure performance using business
metrics like profit, revenues and increases in stock prices, but social entrepreneurs are either nonprofits or blend for-profit goals with generating a positive "return to society". and therefore must
use different metrics. Social entrepreneurship typically attempts to further broad social, cultural,
and environmental goals often associated with the voluntary sector[3] in areas such as poverty
alleviation, health care and community development.
At times, profit-making social enterprises may be established to support the social or cultural
goals of the organization but not as an end in itself. For example, an organization that aims to
provide housing and employment to the homeless may operate a restaurant, both to raise money
and to provide employment for the homeless.
In the 2010s, social entrepreneurship is facilitated by the use of the Internet, particularly social
networking and social media websites. Thesewebsites enable social entrepreneurs to reach a
large number of people who are not geographically close yet who share the same goals and
encourage them to collaborate online, learn about the issues, disseminate information about the
group's events and activities, and raise funds through crowdfunding.
5 successful entrepreneurship in india are as follows :
In a previous post, we discussed social entrepreneurship and its merits. Today, were going to
look at social entrepreneurs and social enterprises that have been successful in creating social
change through commercial initiatives. Through persistence and boundless dedication, these
individuals and organizations have proven that there is profit in integrating social patronage with
your business goals.
RingCentral hopes that these examples serve to inspire entrepreneurs new and veteran, young
and old to pursue big ideas that can make the world better.

SEKEM With a name that essentially means vitality from the sun, this Egyptian company
has certainly lived up to its promise by continuously encouraging social, personal and
environmental development. Since SEKEM was founded in 1977 by Dr. Ibrahim Abouleish, a
pharmacologist, it has:
Produced medicinal, herbal, gastronomical and aesthetically focused products that
serve the needs of its customers
o
Improved the environment through biodynamic farms
o
Built an educational establishment for children to emphasize creativity and
analytical thought
o
Instituted a healthcare center devoted to holistic medicine
Amul Founded in 1946, Amul was established initially as a reaction to unfair milk trade
practices in India, inspiring local and marginalized farmers to form cooperatives independent
from trade cartels. With the notable help of Tribhuvandas Patel and Verghese Kurien,
the Amul cooperative model became so successful that it was eventually replicated all over India
in 1965. Amul has since:
o

o
Produced excellent value for money food products for customers
o
Created a lucrative source of income for local dairy farmers in India
Fifteen Founded by English celebrity chef Jamie Oliver in 2002, Fifteen started out as an
ambitious effort to offer disadvantaged youths (aged 18-24) a means of creating better futures for
themselves through the art of good food. The restaurant initiative was named for the 15 young
people who originally entered apprenticeships under this program. Since the first establishment
opened, Fifteen has:
Delivered delicious Italian food to patrons and opened two other restaurants in
Amsterdam and Cornwall
o
Trained 220 young locals in the art of cooking and hospitality and inspired many
of its graduates to pursue successful careers in the restaurant business
o
Reinforced the value of local produce and cooking techniques
Ladakhi Womens Travel Company Named for Ladakh, one of the most beautiful and
fascinating places in northern India, the Ladakhi Womens Travel Company is a travel agency
made up of female trekkers and travel guides. It was founded by accomplished Ladakhi trekking
guide Thinlas Chorol in 2009, defying trekking industry conventions that heavily favor Ladakhi
males. Over the last few years, the Ladakhi Womens Travel Company has:
o

Organized educational and ecologically friendly tours, treks and homestays for
travelers and tourists
o
Inspired Ladakhi women to prove that they are equally talented in serving as tour
guides in their hometown
o
Encouraged local economic growth by allowing women to find work within
Ladakh
Jaipur Rugs Starting out in Jaipur, India and currently operating from Atlanta, Georgia, Jaipur
Rugs is a primarily focused on producing high-quality and socially responsible floor coverings.
Founded by NK Chaudhary in 1978, this company elevated the art of knotted carpet weaving by
o

nurturing it at the grassroots level and empowering local artisans by directly connecting them to
the global market. Thus far, Jaipur Rugs has:
o
o
o

Produced breathtaking, well-crafted handmade rugs for discerning customers

Continued to connect gifted rug makers to consumers
Sponsored health, literacy, vocational, legal, financial and entrepreneurial
initiatives to inspire progress in communities where their artisans work and live

14. Brief the characteristics of a family entrepreneurship in inida .

A family business is a commercial organization in which decision-making is
influenced by multiple generations of a familyrelated by blood or marriage. They are closely
identified with the firm through leadership or ownership. Owner-manager entrepreneurial firms
are not considered to be family businesses because they lack the multi-generational dimension
and family influence that create the unique dynamics and relationships of family businesses.
Several studies have shown that family-owned companies outperform their non-family
counterparts in terms of sales, profits, and other growth measures.[1] A Thomson Financial study
for Newsweek compared family firms to rivals on the six major indexes in Europe and showed
that family companies outperformed their rivals on all of these indexes, from London's FTSE
to Madrid's IBEX. Thomson Financial created a unique index for both family and non-family
firms in each country, and tracked them over 10 years through December 2003. In Germany, the
family index climbed 206 percent, while the non-family stocks increased just 47 percent.
In France, the family index surged 203 percent, while its counterpart rose only 76 percent.
Family businesses also outperformed their counterparts in Switzerland, Spain, Britain and Italy.
[2]
This high performance is the result of the inherent strengths that family businesses have
compared to their counterparts. Some of these strengths include:[3]
- Commitment. The family as the business owner shows the highest dedication in seeing its
business grow, prosper, and get passed on to the next generations. As a result, many family
members identify with the company and are usually willing to work harder and reinvest part of
their profits into the business to allow it to grow in the long term. In dealing with its family
business clients, IFC highly values having a committed set of shareholders at the core of the
company.
- Knowledge Continuity. Families in business make it a priority to pass their accumulated
knowledge, experience, and skills to the next generations. Many family members get immersed
into their family business from a very young age. This increases their level of commitment and
provides them with the necessary tools to run their family business.

- Reliability and Pride. Because family businesses have their name and reputation associated
with their products and/or services, they strive to increase the quality of their output and to
maintain a good relationship with their partners (customers, suppliers, employees, community,.

15. Explain the challenges of nurturing entrepreneurship in inida

Entrepreneurship is a critical element in the growth of an economy. It is
estimated that there are about 20 million entrepreneurs in the US. India ranked second in Total
Entrepreneurship Activity (TEA) according to the Global Entrepreneurship Monitor Report for the
year 2002. Subsequently, India slipped in TEA rankings.
For its size, India has lower number of startup entrepreneurs. In spite of the shortcomings, it
ranked ninth in the survey of entrepreneurial countries by Global Entrepreneurship Monitor
(GEM). India ranks the highest among a group of countries in necessity-based
entrepreneurship, which is associated with developing countries. Conversely, it ranks fifth from
the bottom in opportunity-based entrepreneurship.
Liberalization of economy started by the PV Narasimha Rao government in 1991 and the
Information Technology boom of the mid and late 90s have ushered in tremendous changes
and set the stage for a wave of entrepreneurship taking India by storm. The capacity of Indians
for entrepreneurship is substantial. However, the society and government have not been very
encouraging towards entrepreneurship in India.
One of the major hindrances faced by the Indian entrepreneur is that of capital. It is worth
noting that there is greater willingness among people to invest capital in enterprises that are
already established than in startups. The number of venture capitalists or angel investors in
India is very low. Another factor that has been hindering entrepreneurship in India is the lack of
mentors very few success stories which could inspire youngsters to become entrepreneurs.
By and large, the Indian society is averse to risk. People normally look for long-term and
stable employment, such as government and public sector jobs. There is an urgent need to
overhaul the physical infrastructure. Social Attitudes, lack of capital, inadequate physical
infrastructure and lack of government support are major factors hindering entrepreneurship in
India.

There are other factors that have been affecting entrepreneurship in India. The majority of young
people coming out of college are inclined towards the IT sector, starving other sectors of critical
talent. Most of the talent available in the country is considered to be mediocre and technical
talent is scarce. Another factor weighing against entrepreneurship in India is that it is not
perceived to be socially glamorous, though the concept is getting accepted slowly.
Indias economy has been growing at a scorching pace. Today, its economy ranks above that of
France, Italy and the United Kingdom. Its GDP is the third largest in Asia. Among emerging
nations, it has the second largest economy. The liberalization of the economy in the 1990s has
enabled a huge number of people to become entrepreneurs. It is to Indias credit that its
corporate and legal systems have been operating with greater efficiency. Government needs to
make efforts and encourage entrepreneurship by providing training and also facilities, especially
in the rural areas.
With a burgeoning middle class, India has a huge potential, which, if tapped, can be a vast
market for products and services. Entrepreneurs can prosper by catering to the requirements of
this segment. India, with its abundant pool of talent in the IT domain, management,
manufacturing and pharmaceuticals, has become the choicest destination for outsourcing of
services from all over the world. The scene for Indian entrepreneur is ideal. If he can seize the
current opportunity, he can succeed not only in India but also globally.

16. Explain briefly the purpose of preparing a business plan . write a model business
plan .
A business plan is a formal statement of business goals, reasons they are
attainable, and plans for reaching them. It may also contain background information about the
organization or team attempting to reach those goals.
Business plans may target changes in perception and branding by the customer, client, taxpayer,
or larger community. When the existing business is to assume a major change or when planning a
new venture, a 3 to 5 year business plan is required, sinceinvestors will look for their investment
return in that timeframe
Typical structure for a business plan for a start up venture [9]

cover page and table of contents

executive summary

mission statement

business description

business environment analysis

SWOT analysis

industry background

competitor analysis

market analysis

marketing plan

operations plan

management summary

financial plan

attachments and milestones

17. Describe the stages of venture development and financing process.

Start-up stage. If the idea/product/process is qualified for further investigation and/or
investment, theprocess will go to the second stage; this is also called the start-up stage. A business
plan is presented by the attendant of the venture to the VC firm. A management team is being
formed to run the venture.

Stages of Venture Development:

Seed Stage
- Defining the concept of the business
- Gathering initial financial resources (friends and family)
- Building the prototype

Startup Stage
- Assembling the startup team
- Analyzing the competition, identifying customers and Getting your first customer
- Going beyond the prototype to a truly scaleable product
Early Stage
- Increasing the number of customers
- Raising institutional money
- Recruiting a complete management team and implementing the business
Growth Stage
- Focusing products on the mass market
- Expanding sales and marketing. Rapid revenue growth
- Reporting relationships and authorities
- Developing systems of internal control (sales, finance, development, support, etc)
IPO/Exit
- Formalizing the culture and rationalizing the strategy
- Going public or merger/acquisition

18. Describe the need development of rural entrepreneurship in inida .

The need for and growth of rural industries has become essential in a country like
India because of the following reasons:
1. Rural industries generate large-scale employment opportunities in the rural sector as most of
the rural industries are labor intensive.
2. Rural industries are capable of checking rural urban migration by developing more and more
rural industries.
3. Rural industries/entrepreneurship help to improve the per capital income of rural people
thereby reduces the gaps and disparities in income of rural and urban people.
4. Rural entrepreneurship controls concentration of industry in cities and thereby promotes
balanced regional growth in the economy.
5. Rural entrepreneurship facilitates the development of roads, street lighting, drinking water etc.
in the rural sector due to their accessibility to the main market.

6. Rural entrepreneurship can reduce poverty, growth of slums, pollution in cities and ignorance
of inhabitants.
7. Rural entrepreneurship creates an avenue for rural educated youth to promote it as a career.

19. Give an account of successful woman entrepreneurs in india .

Women Entrepreneurs may be defined as the women or group of women who
initiate,organise and co-operate a business enterprise. Government of India has defined
women entrepreneurs as an enterprise owned and controlled by a woman having a
minimum financial interest of 51% of the capital and giving atleast 51% of employment
generated in the enterprise to women.
The Indian women are no longer treated as show pieces to be kept at home.They are also
enjoying the impact of globalisation and making an influence not only on domestic but also
on international sphere.Women are doing a wonderful job striking a balance between their
house and career.
1.Dr. Kiran Mazumdar-Shaw, Chairman & Managing Director of Biocon Ltd., who
became Indias richest woman in 2004, was educated at the Bishop Cotton Girls School and
Mount Carmel College in Bangalore. She foundedBiocon India with a capital of Rs.10,000 in
her garage in 1978 the initial operation was to extract an enzyme from papaya. Her
application for loans were turned down by banks then on three counts biotechnology
was then a new word, thecompany lacked assets, women entrepreneurs were still a rarity.
Today, her company is the bigget biopharmaceutical firm in the country.
2.Ekta Kapoor, creative head of Balaji Telefilms, is the daughter of Jeetendra and sister
of Tushar Kapoor. She has been synonymous with the rage of soap operas in Indian TV,
after her most famous venture Kyunki Saas Bhi Kabhi Bahu Thi which was aired in 2000
on Star plus. Ekta dominates Indian Television.At the 6th Indian Telly Awards 2006,she
bagged the Hall Of Fame award for her contributions.

3. Neelam Dhawan, Managing Director, Microsoft India, leads Microsoft India. She is a
graduate from St. Stephens College in 1980,and also passed out from Delhis Faculty Of
Management studies in 1982. Then she was keen on joining FMCG majors like Hindustan
Lever and Asian Paints, both companies rejected Dhawan, as they didnot wish to appoint
women for marketing and sales.
4. Naina Lal Kidwai, was the first Indian woman to graduate from Harvard Business
School. Fortune magazine listed Kidwai among the worlds top 50 Corporate Women from
2000 to 2003. According to the Economic times, she is the first woman to head the
operations of a foreign bank in India. ( HSBC)

5. Indu Jain, the multi-faceted lady used to be the Chairman of the Times Group-The most
powerful and largest Media house India has known. Indu Jain is known by many different
identities such as that of spiritualist,humanist,entrepreneur,an educationalist but most
prominently she played the role of the Chairman of Times Group. Indu Jain is the perfect
picture of the successful Indian Woman entrepreneur.
6.Priya Paul, she has a bachelors degree specialising in Economics from Wellesley
College, USA. She entered her family business and is currently the Chairperson of Park
Hotels.
7. Simone Tata, has been instrumental in changing a small subsidary of Tata Oil
Mills into the largest cosmetic brand in India LAKME, synonymous today with Indian
Fashion. She became a part of Lakme during 1961 and has been responsible for turning the
company into one of the biggest brands of fashion in India. At present she is the
Chairperson of Trent Limited, a subsidary of Tata Group.
8.Mallika Srinivasan, currently the Director of TAFE- Tractors and Farm Equipment,
India , was honoured with the title of Businesswoman of the Year during 2006 by the
Economic Times. She joined the company in 1986 and has since been responsible for
accelerating turnover from 85 crores to 2900 crores within a span of 2 decades.
9. Preetha Reddy, Managing Director of Apollo Hospitals, Chennai, one of the largest
healthcare conglomerates of India, is one of the pioneer businesswoman of India in the
segment of Health Care Industry.
10. Ranjana Kumar, currently Vigilance Commissioner in Central Vigilance
Commission, after her retirement as the Chairperson of NABARD- National Bank For
Agricultural and Rural Development, is a prominent Indian Banker. When the Government
of India appointed her as the Chairperson and Managing Director of The Indian Bank, she
became the first woman to become head of a public sector bank in India. At that time of her
appointment, The Indian Bank was saddled with huge losses and during her tenure she
ensured the turn around of The Indian Bank.
Women like these are an inspiration for all other women who strive to achieve great heights
in their lives. Taking them as our role models each one of us can be there where they are
right now. All we need have is faith in ourselves, confidence and above all a fixed aim that
we need work towards.

20. Distinguish between entrepreneurship and intrapreneurship .

Entrepreneurship is the willingness to take risks and develop, organize and manage a
business venture in a competitive global marketplace that is constantly
evolving.Entrepreneurs are pioneers, innovators, leaders and inventors.
Intrapreneurship is the act of behaving like an entrepreneur while working within a
large organization. Intrapreneurship is known as the practice of a corporate management

style that integrates risk-taking and innovation approaches, as well as the reward and
motivational techniques, that are more traditionally thought of as being the province
ofentrepreneurship

Bases of
Difference

Entrepreneur

Intrapreneur
But, an intrapreneur is

An entrepreneur is dependent on the

independent in his entrepreneur, i.e., the
1. Dependency operations.

owner.

ADVERTISEMENTS:

An entrepreneur
himself raises
2. Raising of

funds required for Funds are not raised

Funds

the enterprise.

by the intrapreneur.
An intrapreneur does

Entrepreneur bears not fully bear the risk

the risk involved in involved in the
3. Risk

the business.

enterprise.
On the contrary, an

An entrepreneur

intrapreneur operates

operates from out- from within the

4. Operation

side.

organisation itself.

21. Explain the role of MSME in promoting entrepreneurship in india .

MSME sector has often been termed as the 'engine of growth' for developing
economies like India. Based on official figures from the Ministry of MSME, Nov.08, MSME
contributes 8% of National GDP, 45% of India's total industrial employment, 95% of all
industrial units and comprises 50% of India's total manufactured exports. The SME sector in
India has been changing over time, generally by the changes in policy of government. Despite its
relevance, the MSME sector has been extensively facing various obstacles in growth. In
recognition of these difficulties and problems to a long sustained lobbying, the GOI passed the
MSME Development Act 2006 which brought about major changes in this sector. The basic
achievement through that act was a clear and decisive definition of units that fall under Micro,
Small and Medium category. These definitions are based on total investment required in plant
and machinery for manufacturing units and required investment in equipments for service units.
The new definitions have expanded the plant and machinery limits and now each enterprise level
includes larger investments than before. An allowance for smaller investments in service
enterprises has also been included in the scheme. The MSME has extensively helping in the
development of SME through entrepreneurship development in India.

Definition of MSME
MSME are the engines of growth of any countrys economy. According to the MSMED Act,
2006 the Micro, Small and Medium Enterprises are classified into two classes.
Manufacturing Enterprises:
The Enterprises engaged in the manufacturing or production, processing or preservation of goods
comes under manufacturing enterprises.
Service Enterprises:
The Enterprises engaged in providing or rendering of services and aredefined in terms of
investment in equipments.The limit of investment in both the enterprises are specified below
CHALLENGES FACED BY MSMEs IN INDIA
MSMEs are very crucial for the economic growth of India but the sector has been facingdifferent
types of challenges. There is severe dearth of support from the concernedGovernment
departments, banks and financial institutions. Key challenges are:-a)
Lack of availability of adequate and timely credit. b)
High cost of credit.c)
Low production capacity.d)
Collateral requirements.e)

Limited access to equity capital.f)

Ineffective marketing strategies.g)
Lack of access to global markets.h)
Problems of procurement of raw materials.i)
Lack of skilled man power for manufacturing, services, marketing etc. j)
Inadequate infrastructure facilities including power, water, roads etc.k)
Low technology level and limited access to modern technology.l)
Multiplicity of labour laws and complicated procedures associated with complianceof such law

22. Write a note on SHG s

A self-help group (SHG) is a village-based financial intermediary committee
usually composed of 1020 local women or men. A mixed group is generally not preferred. Most
self-help groups are located in India, though SHGs can be found in other countries, especially in
South Asia and Southeast Asia.
Members make small regular savings contributions over a few months until there is enough
capital in the group to begin lending. Funds may then be lent back to the members or to others in
the village for any purpose. In India, many SHGs are 'linked' to banks for the delivery of microcredit.
Goals :
Self-help groups are started by non-governmental organizations (NGOs) that generally have
broad anti-poverty agendas. Self-help groups are seen as instruments for goals including
empowering women, developing leadership abilities among poor people, increasing school
enrollments, and improving nutrition and the use of birth control. Financial intermediation is
generally seen more as an entry point to these other goals, rather than as a primary objective.
[2]
This can hinder their development as sources of village capital, as well as their efforts to
aggregate locally controlled pools of capital through federation, as was historically accomplished
by credit unions.
Structure[edit]
A self-help group may be registered or unregistered. It typically comprises a group of micro
entrepreneurs having homogeneous social and economic backgrounds, all voluntarily coming

together to save regular small sums of money, mutually agreeing to contribute to a common fund
and to meet their emergency needs on the basis of mutual help. They pool their resources to
become financially stable, taking loans from the money collected by that group and by making
everybody in that group self-employed. The group members use collective wisdom and peer
pressure to ensure proper end-use of credit and timely repayment. This system eliminates the
need for collateral and is closely related to that ofsolidarity lending, widely used by micro
finance institutions.[1] To make the bookkeeping simple, flat interest rates are used for most loan
calculations.
NABARD's 'SHG Bank Linkage' program[edit]
Many self-help groups, especially in India, under NABARD's 'SHG Bank Linkage' program,
borrow from banks once they have accumulated a base of their own capital and have established
a track record of regular repayments.
This model has attracted attention as a possible way of delivering micro-finance services to poor
populations that have been difficult to reach directly through banks or other institutions. "By
aggregating their individual savings into a single deposit, self-help groups minimize the bank's
transaction costs and generate an attractive volume of deposits. Through self-help groups the
bank can serve small rural depositors while paying them a market rate of interest."[3]
NABARD estimates that there are 2.2 million SHGs in India, representing 33 million members,
that have taken loans from banks under its linkage program to date. This does not include SHGs
that have not borrowed.[4] "The SHG Banking Linkage Programme since its beginning has been
predominant in certain states, showing spatial preferences especially for the southern region
Andhra-Pradesh, Tamil Nadu, Kerala and Karnataka. These states accounted for 57 % of the
SHG credits linked during the financial year 20052006."[5]
Advantages of financing through SHGs[edit]

An economically poor individual gains strength as part of a group.

Besides, financing through SHGs reduces transaction costs for both lenders and
borrowers.

While lenders have to handle only a single SHG account instead of a large number of
small-sized individual accounts, borrowers as part of an SHG cut down expenses on travel
(to and from the branch and other places) for completing paper work and on the loss of
workdays in canvassing for loans.

Where successful, SHGs have significantly empowered poor people, especially women,
in rural areas.

23. Mention the various sources of funding options available for an entrepreneur .
After conceiving a business idea, an entrepreneur needs money to commence his
or her business.
The expenses incurred include;
a. Pre-operation expenses which include payment for legal/registration of business, payment for
consultancy services as well as payment for running around. In some cases this may also include
payment for training.
b. Initial working capital, this is used to pay for consumable factors/inputs, a venture can not be
functional even after installing the fixed assets until these expenses are incurred.
c. Operating cash flow. Business needs minimum level of cash to run.
d. Payment for fixed assets which may include land, land development, furniture, financial
management software, equipments etc.
All these expenses highlighted above are to be met; the value however, depends on the
sophistication of operation. Starting a business can be tricky, but with the help of
an eProcurement service you will be well on your way.
An entrepreneur can source for fund through
1. Owners Equity
2. Loans
3. Grants
a. Owners Equity: This is the owners fund contribution in business. It is also called risk
capital. This is the most reliable source of funding in business. For it put less pressure on the
entrepreneur even if the business failed. This money is raised from past savings of the
entrepreneur. It may be contribution from friends, relations etc. The important thing is that there
is no commitment of repayment on the entrepreneur.
b. Loans: This is a facility given to the entrepreneur with obligation to pay the sum and accrued
interest at an agreed date, This can be sourced from the private sources or financial institutions
such as microfinance houses or commercial banks, It is not the best source of financing new
business, because the payment put pressure on the entrepreneur and the business, Where it could
not be totally avoided entrepreneur should be careful in taking it. As alternative to this option, a
starter is advised to take up apprenticeship to gather knowledge as well as money to start
business,
c. Grants

Government and non-government organizations sometimes give grants to potential entrepreneurs

to start small businesses. This is an allowance that a government or an organization gives to
support small business creation in the country. Examples include grants given by EcoBank, GTB,
state and local governments through their different youth empowerment programmes.

24. A number of corporations today are working to reengineer corporate thinking and
encouraging intrapreneurial environment , what type of steps do you recommend ?
Corporate entrepreneurship or Intrapreneurship is an important element in large and
medium organizations. Intrapreneurship exists within the organizations . It plays important role
in organizational and economic development. Intrapreneurship leads not only to new ventures, it
leads to other innovative activities and orientations such as development of new products,
technologies, services, strategies and competitive postures (Bostjan, 2003). In good or bad
economic times, companies seek innovations to remain competitive. Pinchot called intrapreneurs
'dreamers who do'. These people are more intelligent and have ability to perceive the big picture.
They are self motivated, and optimistic. These people are action oriented and move quickly to
get things done (Frederick, 2010).
Now a day's market is highly competitive, in order to survive organizations trying to be more
innovative. Company's wants innovative people to work for them. Intrapreneurial techniques
have been used throughout the world, some with failure and some with great success.
Categories of Corporate Entrepreneurship
Corporate entrepreneurship is choice of large organizations. Corporate entrepreneurship have
been categories in four broad categories.
Corporate Venturing- Corporate venturing involves is starting a new business within the existing
business, e.g. Thermo- Electron core competence in medical laser technology and stared a new
venture involve hair removal salons utilizing their laser technology (Thornberry, 2003).
Intrapreneuring- is an effort used by entrepreneurs to create and build a business to setup their
mind and behaviours. Companies who wish to bring innovation in their companies generally
make some intrapreneurs in their company so as to build a culture of creativity.
Corporate renewal or Transformation- When in a company transformation involves innovation
and it leads to economic value it is called as corporate renewal.
Industrial Rule Breaking: When a company transforms itself significantly and the change
involves competitive environment it is called as industry rule breaking.Amazon.com is one such
company that broke the rules of engagement of booksellers (Thornberry, 2003).

Building Intrapreneurial environment in an organisation

Intrapreneur are naturally action oriented rather than plan endlessly, they almost immediately
start doing something to realise their plan. One of the most common trait of Intrapreneur is an
unwillingness to accept no for an answer. For this reason Intrapreneur needs active sponsor.
Sponsor provide the Intrapreneur with required resources and also help when they fear to start
their intraprise. Sponsor is different from mentor. Mentor relationship with Intrapreneur is deeply
personal and help him to align his personal needs with satisfy customer needs. Mentors are
concerned with carrier strategies along with business strategies (Pinchot, 1985). But a sponsor is
involved with technique problem marketing options and way Intrapreneur will present his idea to
management. Sponsors temper analytical objectivity with faith and trust. Most Intrapreneur
cannot authorise their own activities, budgets and personnel. Because of the bureaucracy in a
corporation staff groups way down Intrapreneurs with reporting requirements multiple approvals
safety committees and other concerns that delay progress. In such conditions a sponsor protect
the Intrapreneur from any opposition and help him to deal with complaints. Intrapreneurs needs
freedom to use the resources, accessibility of resources is important. If they are working in small
teams result are much better. Management should to pressurise individuals must be participate
voluntarily (Pinchot, 1985). Many organizations are considering innovative ways to respond to
their complex and challenging competitive environment. Organisations adopting new practices
and routines to protect any distinctive position they possess and stretching their competencies to
new limits (Zahra, 1999).

25. Explain the critical factors to be considered when preparing business plan ?
Before diving into any new business venture, you must answer several questions
about yourself, your idea and what is involved in starting a business. Planning a business is more
than finding the financial means and a space to lease; it involves looking deep inside your
entrepreneurial body and objectively answering essential and relevant questions.
Self-Development
The key to the success of any new business is the quality of the company's leadership. If you are
thinking about starting a business, this key to success is you. That's why it is important for you to
be in a healthy mental, ethical and developmental state before starting a business. Several
methods for personal and management development exist to improve your state of mind as a
person and, in turn, a business person. Listen to professional and personal development podcasts
or tapes. These outside perspectives, while you may not agree with all of them, will give you a
fresh insight on a number of different topics. Attend seminars and training courses in your field.
Become an expert in the type of business you want to start. Never stop seeking knowledge about

the industry. Talk to entrepreneurs you know. Ask them what they wish they had done from the
beginning, how they got to where they are and where they see themselves going.
Idea Development
Developing your business idea through brainstorming, market research and demand assessment
will reveal discrepancies early in the game, providing elbow room for revisions and refocusing if
needed. If at the end of your idea development you find your idea a good foundation for a new
business, entrepreneurship is not far on the horizon. Conduct market research--information about
your potential customers, their needs and demands--to decide if your business has a clear focus
and vision. Many prospective business owners obtain free government statistics and information
and conduct field research, including surveys, focus groups, and talking to anyone that might
have knowledge on the market. Brainstorm with partners, friends and market experts. Use the
statistics and data you've collected during your market research. Sometimes the best form of
development is hashing it out in focus groups and discussions.
Business Plan
With self-development, market research and brainstorming under your belt, it's time to put your
business idea into words through a thorough business plan. Start by writing a mission statement,
which will provide further insight on your industry. A business plan maps out every aspect of
your business, from the mission statement and purpose to marketing initiatives and detailed
financial information. Because you spent time on your research and idea development before you
started on your business plan, a lot of your work is already complete. Find a good format for
your business plan, which can be obtained for free online (See Resource), and fill in each section
with your data. Business plan formats vary from plan to plan, but several components always
included in a business plan are mission statement, target market, business description, and
financial assessments--usually with charts, graphs and text.

26. Explain the role of micro credit system in promoting rural entrepreneurship in india
.
Micro credit programmes extend small loans to poor people for selfemployment projects that generate income, allowing them to care for themselves and
their families. Micro credit has come to be recognised and accepted as one of the new
development paradigms for alleviating poverty through social and economic
empowerment of the poor, with 92 M. Sankaran focus on empowering women
(Puhazhendhi and Badatya, 2002). Credit is usually provided to groups of individuals or

village organisations that use joint-liability to enforce loan repayment. Through group
savings and loans, poor people often increase their economic security and well being.
Over the past two decades micro credit programs have emerged as one of the leading
strategies in the overall movement to end poverty. Micro credit programmes have become
a major tool of development and found to be the only practical and most appropriate
solution to alleviate poverty. Micro credit programmes have been employed in
developing countries for some years, and their effectiveness in the development and
poverty alleviation is increasingly acknowledged (Krog, 2000). In many countries micro
credit programmes have proved to be an effective tool in freeing people from poverty and
have helped to increase their participation in the economic and political processes of
society (Secretary General, United Nations, 1998). The Asia-Pacific region is home to
many micro credit institutions, and the majority of programs are directed at women in
rural areas. Targeting women as clients of micro credit programs has been an effective
method to ensure that the benefits of increased family income are directed towards the
general welfare of the family, and particularly the children. The objective of the present
article is to make a review of the origin, development and growth of micro credit
programme in India. For the purpose of this article, data published by National Bank for
Agriculture and Rural Development in India have been used. Data relating to number of
Self-help groups linked with banks, amount of bank loan provided to clients, models of
Self-help groups, number of participating banks, number of non-governmental
organisations (NGOs) participating in the programme, number of families assisted under
the programme have been used and analysed. In the case of number of self-help groups
linked with banks and bank loan provided to them data for a period from 19921993 to
20032004 have been collected and analysed and in the case of other variables data for a
period of four years starting from 2001 have been used.

27. Explain the role of any 3 governmental organizations in promoting

entrepreneurship in india .
28. Define the entrepreneurship and describe the functions of an entrepreneur .
Definition 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, and the people who do so are called
'entrepreneurs'.
Entrepreneurs are broadly classified into/our categories as mentioned below:

1. Entrepreneurial Functions
2. Managerial Functions
3. Promotional Functions
4. Commercial Functions
1.Entrepreneurial Functions:
The major entrepreneurial functions include risk bearing, organizing, and innovation. Since these
are already discussed under the heading 1.2 Evolution of the Concept of Entrepreneur, the same
is, therefore, not discussed here again for the sake of repetition.
2. Managerial Functions:
In simple words, management is getting things working with and through others. Different
experts have defined term management differently. According to Henri Fayol (1949) who is
considered the father of principles of management, management is to forecast, to plan, to
organize, to command, to co-ordinate, and to control.
In the opinion of George Terry (1953), management is a distinct process consisting of planning,
organizing, actuating, and controlling performance to determine and accomplish the objectives
by the use of people and resources.
The significance of management function lies in the fact that enterprises with excellent facilities
and quality resources have floundered and fizzled out due to either no management or poor
management and enterprises with good management but with poor facilities and resources have
flourished and performed exceedingly well. In small-scale enterprises, the entrepreneur who is
the owner of the enterprise also, has to perform the management functions as well.
The management functions performed by entrepreneur are classified into the following five
types:
1. Planning

2. Organizing
3. Staffing
4. Directing
5. Controlling
3. Promotional Functions:
1. Identification and Selection of Business Idea:
2. Preparation of Business Plan or Project Report:
3. Requirement for Finance:
4. Commercial Functions:
1. Production / Manufacturing:
2. Marketing:
3. Accounting:
29. What are the reasons for sickness of SSI?
Industrial sickness is defined in India as "an industrial company (being a company registered for
not less than five years) which has, at the end of any financial year, accumulated losses equal to, or
exceeding, its entire net worth and has also suffered cash losses in such financial year and the
financial year immediately preceding such financial year.
The reasons or the causes for the sickness are as follows :

Internal causes for sickness[edit]

We can say pertaining to the factors which are within the control of management. This sickness
arises due to internal disorder in the areas justified as following:
a) Lack of Finance: This including weak equity base, poor utilization of assets,
inefficient working capital management, absence of costing & pricing, absence of planning and
budgeting and inappropriate utilization or diversion of funds.

b) Bad Production Policies : Another very important reason for sickness is wrong selection of
site which is related to production, inappropriate plant & machinery, bad maintenance of Plant &
Machinery, lack of quality control, lack of standard research & development and so on.
c) Marketing and Sickness : This is another part which always affects the health of any sector as
well as SSI. This including wrong demand forecasting, selection of inappropriate product mix,
absence of product planning, wrong market research methods, and bad sales promotions.
d) Inappropriate Personnel Management: Another internal reason for the sickness of SSIs is
inappropriate personnel management policies which includes bad wages and salary
administration, bad labour relations, lack of behavioural approach causes dissatisfaction among
the employees and workers.
e) Ineffective Corporate Management: Another reason for the sickness of SSIs is ineffective or
bad corporate management which includes improper corporate planning, lack of integrity in top
management, lack of coordination and control etc.
External causes for sickness[edit]
a) Personnel Constraint: The first for most important reason for the sickness of small scale
industries are non availability of skilled labour or manpower wages disparity in similar industry
and general labour invested in the area.
b) Marketing Constraints: The second cause for the sickness is related to marketing. The
sickness arrives due to liberal licensing policies, restrain of purchase by bulk purchasers, changes
in global marketing scenario, excessive tax policies by govt. and market recession.
c) Production Constraints: This is another reason for the sickness which comes under external
cause of sickness. This arises due to shortage of raw material, shortage of power, fuel and high
prices, import-export restrictions.
d) Finance Constraints: Another external cause for the sickness of SSIs is lack of finance. This
arises due to credit restrains policy, delay in disbursement of loan by govt., unfavorable
investments, fear of nationalization.
e)credit squeeze initiated by the government policies.

30. Explain the stages of entrepreneurial process in detail

The Entrepreneur is a change agent that acts as an industrialist and undertakes the risk
associated with forming the business for commercial use. An entrepreneur has an unusual
foresight to identify the potential demand for the goods and services.
The entrepreneurship is a continuous process that needs to be followed by an entrepreneur to
plan and launch the new ventures more efficiently.
1.

Discovery: An entrepreneurial process begins with the idea generation, wherein the
entrepreneur identifies and evaluates the business opportunities. The identification and the
evaluation of opportunities is a difficult task; an entrepreneur seeks inputs from all the persons
including employees, consumers, channel partners, technical people, etc. to reach to an optimum
business opportunity. Once the opportunity has been decided upon, the next step is to evaluate it.
An entrepreneur can evaluate the efficiency of an opportunity by continuously asking certain
questions to himself, such as, whether the opportunity is worth investing in, is it sufficiently
attractive, are the proposed solutions feasible, is there any competitive advantage, what are the
risk associated with it. Above all, an entrepreneur must analyze his personal skills and hobbies,
whether these coincides with the entrepreneurial goals or not.

2.

Developing a Business Plan: Once the opportunity is identified, an entrepreneur needs

to create a comprehensive business plan. A business plan is critical to the success of any new
venture since it acts as a benchmark and the evaluation criteria to see if the organization is
moving towards its set goals.
An entrepreneur must dedicate his sufficient time towards its creation, the major components of a
business plan are mission and vision statement, goals and objectives, capital requirement, a
description of products and services, etc.

3.

Resourcing: The third step in the entrepreneurial process is resourcing, wherein the
entrepreneur identifies the sources from where the finance and the human resource can be
arranged. Here, the entrepreneur finds the investors for its new venture and the personnel to carry
out the business activities.

4.

Managing the company: Once the funds are raised and the employees are hired, the next
step is to initiate the business operations to achieve the set goals. First of all, an entrepreneur
must decide the management structure or the hierarchy that is required to solve the operational
problems when they arise.

5.

Harvesting: The final step in the entrepreneurial process is harvesting wherein, an

entrepreneur decides on the future prospects of the business, i.e. its growth and development.
Here, the actual growth is compared against the planned growth and then the decision regarding

the stability or the expansion of business operations is undertaken accordingly, by an

entrepreneur.
The entrepreneurial process is to be followed, again and again, whenever any new venture is
taken up by an entrepreneur, therefore, its an ever ending process.

31. what is a project report ? give objectives to prepare a project report ?

Objectives of preparing a Project Report:
The basic objective of preparing a Finance Project Report is to offer relevant information on the
fiscal standing, performance and alterations in the economic ranking of an enterprise that is
significant for its clients as well as its decision makers.
1.

To evaluate the financial ranking:

The fiscal positioning of an enterprise is influenced by the fiscal reserves it possess, its monetary
arrangement, its liquidity and its competence to get used to to transformations in the market in
which it operates.

2.

To evaluate the firm's performance:

Performance is the aptitude of the enterprise to accrue revenues that have been endowed in it.
Knowledge about the capacity and inconsistency of revenues assists the firm in predicting the
anticipated monetary flows from the firm's current reserves and in predicting possible additional
fund influx from extra resources that can be endowed in the enterprise.

3.

To evaluate the alterations in Fiscal Ranking:

Users of fiscal report look for information about the endowments, subsidizing and functional
activities that the enterprise embark on while treatment period. This data assists in evaluating
how effectively the enterprise is able to generate fund and money and how the firm uses the cash
influx.

32. Bring out the role of entrepreneurs in the process of economic growth with special
reference to india .

The word development is used in so many ways that its precise connotation is often
baffling. Nevertheless, economic development essentially means a process of upward change
whereby the real per capita income of a country increases over a long period of time. Then, a
simple but meaningful question arises: what causes economic development?
This question has absorbed the attention of scholars of socio-economic change for decades. In
this section, we shall attempt to shed light on an important aspect of that larger question, i.e. the
phenomenon of entrepreneurship.
The special references to india are as follows
Adam Smith, the foremost classical economist, assigned no significance to entrepreneurial role
in economic development in his monumental work An Enquiry into the Nature and Causes of
the Wealth of Nations, published in 1776. Smith extolled the rate of capital formation as an
important determinant of economic development.
The problem of economic development was ergo largely the ability of the people to save more
and invest more in any country. According to him, ability to save is governed by improvement in
productivity to the increase in the dexterity of every worker due to division of labour. Smith
regarded every person as the best judge of his own interest who should be left to pursue his own
advantage. According to him, each individual is led by an invisible hand in pursuing his/her
interest. He always advocated the policy of laissez-faire in economic affairs.
In his theory of economic development, David Ricardo identified only three factors of
production, namely, machinery, capital and labour, among whom the entire produce is distributed
as rent, profit and wages respectively. Ricardo appreciated the virtues of profit in capital
accumulation. According to him, profit leads to saving of wealth which ultimately goes to capital
formation.

Thus, in both the classical theories of economic development, there is no room for
entrepreneurship. And, economic development seems to be automatic and self-regulated. Thus,
the attitude of classical economists was very cold towards the role of entrepreneurship in
economic development. They took the attitude: the firm is shadowy entity and entrepreneur
even shadower or at least is shady when he is not shadowy. The economic history of the
presently developed countries, for example, America, Russia and Japan tends to support the fact
that the economy is an effect for which entrepreneurship is the cause.

33. What are the reasons for very few women becoming entrepreneurs in the developing
countries like India ?
Entrepreneurship is a herculean task enveloped with risks and struggles. Only an
entrepreneur can understand the trials and triumphs their breed goes through. Some of the challenges
are common to all entrepreneurs, irrespective of their gender. However, there is a distinct set of factors
that handicaps the growth of women entrepreneurs. In this patriarchal society, identity of a woman is
based on her relationships and the way she nurtures her family. These social norms come at a heavy
cost: A womans dreams, ambitions and desires. Over the past decade there has been a steady growth
in the number of women entrepreneurs, but its very slow. Lets read about a few barriers that women
have to overcome to achieve success, which are also the reasons for women entrepreneurs: Why are
there so few women entrepreneurs in our country?

Socio-Cultural Atmosphere
Patriarchal Society
Our stereotype society personifies women as Goddess Durga. Alas hypocrisy! When it comes to
where women stand in the society, they are never at par but always below men. Our culture relates
women with hearth and home. Their roles are confined to being wives, mothers and daughters. Sadly,
they think if a woman is empowered it renders a man powerless. This keeps women away from formal
education.

Illiteracy
Illiteracy is one of the biggest obstacles which chains the growth of women. Absence of proper
education leads to lack of skills and knowledge. This results in women not being aware and lacking
the required confidence in building an enterprise. Educated and well informed women can get
acknowledged for their struggles irrespective of the challenges and obstacles that the society thrusts on
them.
Family Support
Family support is the greatest motivator for a woman entrepreneur, setting up her new enterprise.
Mostly, Indian families are orthodox. Neither do they appreciate the decision of a woman to start her
very own venture nor do they believe in her entrepreneurial capabilities. This scares a woman and she
starts thinking that she will not be able to maintain a balance between her work and family. Lack of
family support hinders a woman from going out and generating income.

Balance between Work and Home

Maintaining a work and personal life balance is tough for all entrepreneurs. Women, however have to
struggle more. Women are multitaskers. This is a well celebrated fact. But, when you are struggling
with your enterprise you are bound to be less entertaining towards your family. This is expected from
the males in the family. But, god forbid! A woman who once fails to fulfill her family needs becomes
a not-so-suitable wife and daughter-in-law! This fear of imbalance demotivates a woman.

Women: Not to be taken Seriously!

Investors, workers, everyone takes women for granted. A woman might come up with the next
revolutionary, million dollar business plan. She will still not be taken seriously. Males have a tendency
to believe women lack in skills and brains. Women now believe they have to think, eat, work, and
behave like a man to be taken seriously. People have a tendency to think, Oh! You are the CEO,
definitely your father/husband invested in your project. orThe backbone of this enterprise is some
male! At every step a woman has to prove herself, her ideas, managerial skills and capabilities.

Lack of Exposure
Women lack education, forget about career guidance. They have absolutely no idea about the
opportunities in the field of business. They do not have access to technology. Lack of exposure and
information terrifies a woman. It restricts her from testing her true potential as an entrepreneur.

An Everyday Battle: Receiving Finance

If we say that the society isnt a sexist one, and a woman has successfully started her own startup.
What happens when money needs to be raised? Women entrepreneurs have less access to finance as
compared to their male counterparts. Venture capitalists perceive that women are less competent as
compared to men. While granting finances or loans to a man apart from degree of innovation only risk
calculation is done.
For women, capitalists try to judge her skills and success abilities just because she is a woman. They
are more interested in knowing how she will juggle work with her family or if her in-laws are
supportive or not. This discrimination is one of the major reasons why we see so few women
entrepreneurs.

Lack of Self-Confidence
Be it illiteracy, lack of skills or no family/society support whatsoever, all this leads to lack of selfconfidence. Every time a woman is forced to prove her abilities, her self-confidence decreases. A
women is continuously grilled for her ideas, funding, working methods, managerial skills, etc. All this
demotivates her. Instead of boosting her confidence, she is constantly given a reality check that she is
a woman and she is inferior in her skills. This reduces her self confidence to such a level that she
herself doubts her skills as a women entrepreneur.
Risk Taking
Women tend to withdraw, exhibiting low risk-taking abilities. From their childhood women see
money matters and decisions to be handled by male heads of the family. They are accustomed to men

taking the decisions be it financial or otherwise. Women thus are socialized to being more soft-spoken
and reserved. Thus, investors find men to have more risk-taking and leadership traits.

Oddly, Safety
Women entrepreneurs biggest challenge is their safety. Crime rates have increased alarmingly. They
face the decision of possibly risking their lives while working late hours. When they attend a seminar,
there are very few women entrepreneurs in the hall. This less number scares a lady and she is
threatened of her security. And shockingly women prefer to rather not work.
Women need the urge, determination and passion to overcome all the obstacles. The society has
changed, but the change is very slow. Its a long journey for women to be accepted at par. However,
one should keep this fact in mind that, the economy, GDP of a developing country like India, will only
increase when both the genders work hand in hand. Thus, the society should motivate more women
entrepreneurs.

34. Explain the role of EDP in rural Industrialization of India. Are they effective? What
steps do you suggest?
Entrepreneurship plays a very important role in the economic development.
Entrepreneurs act as catalytic agents in the process of industrialization and economic growth.
Joseph Schumpeter states that the rate of economic progress of a nation depends upon its rate of
innovation which in turn depends upon the distribution of entrepreneurial talent in the
population. Technological progress alone cannot lead to economic development unless
technological breakthroughs are put to economic use by entrepreneurs. It is the entrepreneur who
organizes and puts to use capital, labour and technology in the best possible manner for the
setting up of his enterprise.
Importance of entrepreneurship development programme (EDP) is to enable entrepreneurs
initiating and sustaining the process of economic development in the following ways-

1. Creation of Employment Opportunities : Unemployment is one of the most important

problems confronting developing and underdevelopment countries, EDPs enable prospective
entrepreneurs in the setting up of their own units, thus enabling them to get self employment.
With the setting up of more and more units by entrepreneurs, both on small and large scale,
numerous job opportunities are created for the others.
Entrepreneur in this way get an opportunity to lead an independent and honorable life and at the
same time they enable others in getting gainful employment. Several schemes like Nehru Rozgar
Yojna, National Rural Employment Programme (NREP), Integrated Rural Development
Programme (IRDP) etc. have been initiated by the government, of India in this direction. The
thrust of all these schemes is to eliminate poverty and generate gainful employment opportunities
for the unemployed. Thus entrepreneur can play an effective role in reducing the problem of
unemployment.
2. Capital Formation : It is not possible to set up an enterprise without adequate funds.
Entrepreneur as an organizer of factors of production employs his own as well as borrowed
resources for the setting up of his enterprise. Entrepreneur mobilizes idle savings of the public
and put them to productive use. In this way he helps in capital formation which is so essential for
the industrial and economic development of a country. Various development banks like ICICI,
IFCI, IDBI; SFCs, SIDCs take initiative in promoting entrepreneurship through assistance to
various agencies involved in EDP and by providing financial assistance to new entrepreneurs.
3. Balanced Regional Development : Small scale units can be set up in industrially backward
and remote areas with limited financial resources. Successful EDPs assist in accelerating the
pace of industrialization in the backward areas and reduce the concentration of economic power
in the hands of a few, Entrepreneurs feel like taking advantage of the various concessions and
subsidies offered by the state and central government. Success story of entrepreneurs set right
example for others to follow and this accelerates the pace of industrialization in the backward
areas. Setting up of more units leads to more development of backward areas and balanced
regional development.

4. Use of Local Resources : In the absence of any initiative local resources are likely to remain
unutilized. Proper use of these resources can result in the progress or development of the area
and that too at lower cost. Alert entrepreneurs seize the opportunity and exploit it in the best
interests of the area and industry. Effective EDPs can help in the proper use of local resources by
providing guidance, assistance, education and training to the prospective entrepreneurs.
5. Improvement in per Capital Income : Entrepreneurs are always on the look out for
opportunities. They explore and exploit the opportunities. Entrepreneurs take lead in organising
various factors of production by putting them into productive use through the setting up of
enterprises. More enterprises will lead to more production, employment and generation of wealth
in the form of goods and services. It will result in the increase in the overall productivity and per
capita income in the country. EDPs play a positive role in the setting of more units and thus help
in generation of more employment and income.
6. Improvement in the Standard of Living : Entrepreneurs by adopting latest innovations help
in the production of wide variety of goods & services. By making efficient use of the resources,
they start producing more of better quality and that too at lower costs. This enable them to ensure
easy availability of better quality products at lower prices to the consumers which result in the
improvement in the standard of living of the people. EDPs provide the necessary support to
entrepreneurs by educating them about the latest innovations and market trends.
7. Economic Independence : Entrepreneurs enable a country to produce wide variety of better
quality goods & services and that too at competitive prices. They develop substitutes of the
goods being imported and thus prevent over-dependence on foreign countries and at the same
time help in the saving of precious foreign exchange. Through sale of their surplus products in
foreign market entrepreneurs enable a country to earn foreign exchange, which is so essential for
meeting developmental needs of the economy. Export promotion and import substitution thus
help in promoting economic independence of the economy.

8. Preventing Industrial Slums : Industrially developed areas are faced with problem of
industrial slums, which result in over burdening of civic amenities and adverse impact on the
health of people. Dispersal of industries can help in the overcoming of this grave problem. EDPs
can help in preventing spread of industrial slums by providing various incentives, subsidies and
infrastructural support to entrepreneurs for setting up their enterprises in industrially backward
areas. This will also help in reducing pollution and overtaxing of civic amenities.
9. Reducing Social Tension : Unemployment amongst the young and educated people is
emerging as the major cause of social unrest. People are bound to feel frustrated if they fail to get
gainful employment after completion of their education. EDPs can help in channelizing the talent
of this section of society in the right direction by providing proper guidance, training and
assistance for setting up their enterprises. This results in generation of self employment and
prevention of social tension, unrest etc.
10. Facilitating Overall Development : An entrepreneur acts as a catalytic agent for change
which results in chain reaction. With the setting up of an enterprise the process of
industrialization is set in motion. This unit will generate demand for various types of inputs
required by it and there will be so many other units which will require the output of this unit.
This leads to overall development of an area due to increase in demand and setting up of more
and more units there. Moreover success of one entrepreneur sets the right type of example for
others to follow. Entrepreneurs, thus, create an environment of enthusiasm and convey a sense of
purpose. This gives future impetus to the overall development of that area.

35. What is the need for and significance of preparation of a feasibility report for a
small scale entrepreneur ?
Introduction. The introduction part of the feasibility report should outline the
importance and the advantages of small scale fish farming. Explain your project fully in this
section. Outline briefly how the project will be rolled out, how you plan to benefit from the
project and the processes that will be involved. Basically it is a summary of the small scale fish
farming project.

Description of the project. In this section, clearly outline the project's location, the environment
surrounding it and the availability of the resources required to start a small scale fish farm.
Highlight the project's mission and vision. Business goals and the objectives should also be
included. Also include a brief history of the project and what motivated you to start the fish farm.
Market description. Describe the type of industry you will be operating in, whether you will be
selling your products as a wholesaler or a retailer. Identify your target market and how you plan
to penetrate that market. Outline the marketing strategies you will employ to market your fish.
Description of your products. Highlight different species of fish that you will be rearing.
Describe how you selected those species. Explain the pricing of your products and the
competitive edge your fish products have over other products in the market.
Organization plan Outline the legal structure under which the small scale fish farm will operate,
whether it will be a sole proprietorship, partnership or a limited liability company. Identify the
type of permits and licenses that will be required for the project. Explain the number of staff and
their qualifications that will be necessary to successfully run the fish farm. Outline how they will
be organized in terms of duties and responsibilities.
Marketing plan. Illustrate how you plan to conduct your market research to identify how you will
segment your market and how you plan to satisfy each market segment. Market segmentation
entails identifying the different portions of the market that are different from one another in
terms of lifestyle, income levels, location and spending habits. Explain the strategies that will be
used in the sale and distribution of your fish to each market segment to satisfy their unique
needs. Also include the strategies you will employ to effectively compete with your competitors
in the market.
Financial management. Identify the intended sources of capital for your fish farm and how you
plan to use this capital in your venture. Outline how the profits will be used to enhance the fish
farm and the measures that will be put in place to prevent or reduce losses. In this step you
should also be able to show the projected cash flow statement, income statement and the balance
sheet statement for the next 12 months

36. Briefly explain the evolution of the term entrepreneurship

The Evolution of Entrepreneurship
Taken from the French entre prendre, means to undertake.

An entrepreneur is an innovator or developer who recognizes and seizes opportunities;

converts those opportunities into workable/marketable ideas; adds value through time,
effort, money, or skills; assumes the risks of the competitive marketplace to implement
these ideas; and realizes the rewards from these efforts.

37. Explain the need to promote women entrepreneurs specialy in rural india
Rural woman constitutes the family, which leads to society and Nation. Social
and economic development of women is necessary for overall economic development of any
society or a country. Entrepreneurship is the state of mind which every woman has in her but has
not been capitalized in India in way in which it should be. Due to change in environment, now
people are more comfortable to accept leading role of women in our society. Our increasing
dependency on service sector has created many entrepreneurial opportunities especially for
women where they can excel their skills with maintaining balance in their life. This study is
intended to find out various Problems, motivating and de-motivating factors of women
entrepreneurship. It is an attempt for real problems and motivational factors with a real Case
study from Andhra Pradesh. It will also suggest the way of eliminating and reducing hurdles of
the women entrepreneurship development in Indian Context.
A woman entrepreneur is an adult who owns and runs an enterprise, especially a commercial
one, often at personal financial risk. The ILO defined the womens enterprise as a small unit
where one or more women entrepreneurs have not less than 50 per cent financial holdings. The
concept of women entrepreneurship is becoming a global phenomenon playing a vital role in the
business community. In India, women have made a comparatively late entry into business
scenario mainly due to the orthodox and traditional socio-cultural environment. Although women
face various problems in the process of establishing, developing and running their enterprises,
nevertheless, their scope of development is very high in India, especially in rural areas with more
women making development oriented programme viz. Development of Women and Children in
Rural Areas (DWCRA) which was launched in 1982-83. In what follows, an attempt is made to
analyse the success of such a scheme in terms of its survival, growth and development of women
entrepreneurs and identify the problems faced by the women entrepreneurs.

38. Define a start up . what is the financial support available to start up ?

Startup capital refers to the money that is required to start a new business, whether
for office space, permits, licenses, inventory, product development and manufacturing, marketing
or any other expense.
Startup capital is also referred to as "seed money."

Types and Sources of Financing for Start-up Businesses

Financing is needed to start a business and ramp it up to protability. There are several sources to
consider when looking for start-up nancing. But rst you need to consider how much money
you need and when you will need it.
The nancial needs of a business will vary according to the type and size of the business. For
example, processing businesses are usually capital intensive, requiring large amounts of capital.
Retail businesses usually require less capital.
Debt and equity are the two major sources of nancing. Government grants to nance certain
aspects of a business may be an option. Also, incentives may be available to locate in certain
communities and/or encourage activities in particular industries.
Equity Financing
Equity nancing means exchanging a portion of the ownership of the business for a financial
investment in the business. The ownership stake resulting from an equity investment allows the
investor to share in the companys prots. Equity involves a permanent investment in a company
and is not repaid by the company at a later date.
Debt Financing
Debt nancing involves borrowing funds from creditors with the stipulation of repaying the
borrowed funds plus interest at a specied future time. For the creditors (those lending the funds
to the business), the reward for providing the debt nancing is the interest on the amount lent to
the borrower.
Debt nancing may be secured or unsecured. Secured debt has collateral (a valuable asset which
the lender can attach to satisfy the loan in case of default by the borrower). Conversely,
unsecured debt does not have collateral and places the lender in a less secure position relative to
repayment in case of default.
Lease
A lease is a method of obtaining the use of assets for the business without using debt or equity
nancing. It is a legal agreement between two parties that species the terms and conditions for
the rental use of a tangible resource such as a building and equipment. Lease payments are often
due annually. The agreement is usually between the company and a leasing or nancing
organization and not directly between the company and the organization providing the assets.
When the lease ends, the asset is returned to the owner, the lease is renewed, or the asset is
purchased.

39. A first time entrepreneur encounters different barriers and has to overcome them to
emerge as a successful entrepreneur. Discuss
1. Age
Age really is just a number. Successful people dont let their age define who they are and what
they are capable of. Just ask Betty White or any young, thriving entrepreneur.
I remember a professor in graduate school who told our class that we were all too young and
inexperienced to do consulting work. He said we had to go work for another company for several
years before we could hope to succeed as independent consultants. I was the youngest person in
the class, and I sat there doing work for my consulting clients while he droned on.
Without fail, people feel compelled to tell you what you should and shouldnt do because of your
age. Dont listen to them. Successful people certainly dont. They follow their heart and allow
their passionnot the body theyre living into be their guide.
They follow their heart and allow their passionnot the body theyre living into be
their guide.
2. What Other People Think
When your sense of pleasure and satisfaction are derived from comparing yourself to others, you
are no longer the master of your own destiny. While its impossible to turn off your reactions to
what others think of you, you dont have to hold up your accomplishments to anyone elses, and
you can always take peoples opinions with a grain of salt. That way, no matter what other people
are thinking or doing, your self-worth comes from within.
Successful people know that caring about what other people think is a waste of time and energy.
When successful people feel good about something that theyve done, they dont let anyones
opinions take that away from them.

No matter what other people think of you at any particular moment, one thing is certain
youre never as good or bad as they say you are.
3. Toxic People
Successful people believe in a simple notion: you are the average of the five people you spend
the most time with.
Just think about itsome of the most successful companies in recent history were founded by
brilliant pairs. Steve Jobs and Steve Wozniak of Apple lived in the same neighborhood, Bill
Gates and Paul Allen of Microsoft met in prep school, and Sergey Brin and Larry Page of Google
met at Stanford.
Just as great people help you to reach your full potential, toxic people drag you right down with
them. Whether it's negativity, cruelty, the victim syndrome, or just plain craziness, toxic people
create stress and strife that should be avoided at all costs.
If youre unhappy with where you are in your life, just take a look around. More often than not,
the people youve surrounded yourself with are the root of your problems.
Youll never reach your peak until you surround yourself with the right people.
4. Fear
Fear is nothing more than a lingering emotion thats fueled by your imagination. Danger is real.
Its the uncomfortable rush of adrenaline you get when you almost step in front of a bus. Fear is a
choice. Successful people know this better than anyone does, so they flip fear on its head. They
are addicted to the euphoric feeling they get from conquering their fears.

Dont ever hold back in life just because you feel scared. I often hear people say, Whats the
worst thing that can happen to you? Will it kill you? Yet, death isnt the worst thing that can
happen to you...
The worst thing that can happen to you is allowing yourself to die inside while youre
still alive.
5. Negativity
Life wont always go the way you want it to, but when it comes down to it, you have the same 24
hours in the day as everyone else does. Successful people make their time count. Instead of
complaining about how things could have been or should have been, they reflect on everything
they have to be grateful for. Then they find the best solution available, tackle the problem, and
move on.
When the negativity comes from someone else, successful people avoid it by setting limits and
distancing themselves from it. Think of it this way:
If the complainer were smoking, would you sit there all afternoon inhaling the secondhand smoke?
Of course not. Youd distance yourself, and you should do the same with all negative people.
A great way to stop complainers in their tracks is to ask them how they intend to fix the problem
theyre complaining about. They will either quiet down or redirect the conversation in a
productive direction.

6. The Past or the Future

Like fear, the past and the future are products of your mind. No amount of guilt can change the
past, and no amount of anxiety can change the future. Successful people know this, and they
focus on living in the present moment. Its impossible to reach your full potential if youre
constantly somewhere else, unable to fully embrace the reality (good or bad) of this very
moment.
To live in the moment, you must do two things:
1) Accept your past. If you dont make peace with your past, it will never leave you and it will
create your future. Successful people know the only good time to look at the past is to see how
far youve come.
2) Accept the uncertainty of the future, and dont place unnecessary expectations upon yourself.
Worry has no place in the here and now. As Mark Twain once said,
Worrying is like paying a debt you dont owe.
7. The State of the World
Keep your eyes on the news for any length of time and youll see its just one endless cycle of
war, violent attacks, fragile economies, failing companies, and environmental disasters. Its easy
to think the world is headed downhill fast.
And who knows? Maybe it is. But successful people dont worry about that because they dont
get caught up in things they cant control. Instead, they focus their energy on directing the two
things that are completely within their powertheir attention and their effort. They focus their
attention on all the things theyre grateful for, and they look for the good thats happening in the
world. They focus their effort on doing what they can every single day to improve their own

lives and the world around them, because these small steps are all it takes to make the world a
better place.
They focus their effort on doing what they can every single day to improve their own
lives and the world around them...
Bringing It All Together
Your success is driven by your mindset. With discipline and focus, you can ensure that these
seven obstacles never hold you back from reaching your full potential.

40. What is the importance of market intelligence for entrepreneurs? Briefly describe
the key components ?
Market intelligence, as its name implies, is simply the intelligence or
information about a businesss particular market. For example, the geographic location
of a business, the particular demographics of a consumer base, or any other information
thats relevant to a companys market is market intelligence.

Collaboration
Teamwork is essential to getting things done. In today's global and digital 24/7 world,
challenges are more complex; it's becoming increasingly important to bring more, diverse
minds to the table and to break down silos.
Collaboration is one type of group activity familiar to community development. There is no
shortage of initiatives intended to be collaborative. Collaboration has never been easy, mostly
because conflict and competition within and among groups dominates the landscape. As
everyone tends to avoid tension, what we actually may be left with in communities is peaceful
(or less than peaceful) coexistence, and not collaboration. It may be a good time for re-thinking
collaboration.
The conference encouraged re-thinking approaches to strategy. How could new approaches to
collaboration influence economic transformation of a community, state or nation? To begin,

collaboration involves three basic aspects: relationships, process and outcomes. Collaboration
means to work together (relationships) toward (process) something in common (outcomes).
Ideation
Fresh, new ideas help your organization stand out. With intense competition for resources,
organizations must differentiate in order to survive.
Mark Lange, executive director of the Edward Lowe Foundation, was the presenter for the
breakout session "Accelerating Entrepreneurship and Its Impact on Community and Economic
Development."
The Edward Lowe Foundation is using ideation to make the case for entrepreneurship as an
economic development strategy. Lange says:

Local businesses have much more influence on job creation than companies
headquartered out of the state.

Second-stage businesses are critically important to job growth and need to be nurtured
more effectively.

Business expansion has a much larger impact on job creation compared to business
relocation.

Implementation
What good are new ideas if they are not put to use? Organizations must engage the best people
to champion their ideas and keep those great ideas moving forward.
There is no shortage of conversations on how technology is changing lives and how
technological innovations are being implemented at lightning speed. In the world of community
development, one example is the work being done at Social Compact.
Technology and innovation are the fundamental underpinnings of John Talmage's projects at
Social Compact. Talmage is president of the nonprofit organization, which is working to bring
private investment to inner-city neighborhoods.

Under his leadership, Social Compact uses technology and innovation to document market
strengths of communities throughout the United States. Collaborating with local leaders,
community-based organizations and financial institutions, Social Compact uses new tools and
innovation to conduct market analytics that "drill down" and extract important data often lost by
high-level data-collection processes.
Value Creation
You don't have innovation if your new ideas aren't creating value. Organizations must implement
ideas and programs identified as most effective in delivering value
to stakeholders.
The failure rate of established companies has skyrocketed during the past year. However, there
are companies still experiencing monumental success despite the economic downturn. These
companies are thriving because they effectively deliver products valued by consumers.
The purpose of innovation is to create business value. Value can be defined in many ways, such
as incremental improvements to existing products, the creation of entirely new products and
services, or reducing cost. Businesses seek to create value because their survival, growth and
ability to compete in a rapidly changing market depend on whether they innovate effectively.