Bachelor of Business Administration-BBA Semester 6 BB0028 Entrepreneurship Development- 4 Credits Q.1 Write a short note on types of entrepreneurs.?

? Answer Entrepreneurs can be of different types. Some may prefer to go it alone or share the risk in groups with others. They are found in every economic system and every form of economic activity as well as in other social and cultural activities. They are seen from amongst farmers, labourers, fishermen, tribals, artisans, artists, importers, exporters, bankers, professionals, politicians, bureaucrats and so many others. Basing on the above features C. Danhof has broadly classified entrepreneurs into four types. These are discussed below. 1. Innovative Entrepreneur: In the early phases of economic development, entrepreneurs have initiative to start new ventures and find innovative ways to start an enterprise. Thus, innovative entrepreneurs are those who introduces new products, new method of production techniques, or discovers a new market or a new service or reorganises the enterprise. It is the innovative entrepreneurs who built the modern capitalism. They are commonly found in developed countries. They are aggressive in nature who exhibit cleverness in putting attractive possibilities into practice. 2. Imitative Entrepreneur: There is a second group of entrepreneurs generally referred as imitative entrepreneurs. They usually copy or adopt suitable innovations made by innovative entrepreneurs. They are adoptive and more flexible. They are organisers of factors of production rather than creator. The imitative entrepreneurs are also revolutionary and important. They' contribute to the development of underdeveloped economies. 3. Fabian Entrepreneurs: The third type of entrepreneur is Fabian Entrepreneurs. Such type of entrepreneurs are very shy and lazy by nature. They are very cautious people. They do not venture to take risks. They are rigid and fundamental in their approach. Usually, they are second generation entrepreneurs in a family business enterprise. They follow the footsteps of their successors. They imitate only when they are very clear that failure to do so would result in a loss of the relative position in the enterprise. 4. Drone Entrepreneurs: The fourth type of entrepreneur is Drone entrepreneurs who refuse to copy or use opportunities that come on their way. They are conventional in their approach. They are not ready to make changes in their existing production methods even if they suffer losses. They resist changes. They may be termed as laggards. The above types of entrepreneurs is not comprehensive for it aims at highlighting the broad range of entrepreneurs found in business and profession. Following are some more types of entrepreneurs listed according to the type of business, use of technology, motivation, growth and stages of development.

Q.2 Explain the different phases in entrepreneurial development programme Answer 1.Pre-training phase: Pre-training phase consists of all activities and preparation to launch training programme. Pre-training phase of EDP consists of the following activities : Selection of entrepreneurs for the training protgramme. Arrangements of infrastructure are for the programme like selection of place of training. Deciding guest faculty for the programme from education industry and banks. Taking necessary steps for inauguration of programme. Formation of selection committee to select trainees from the programme. Making provision with regard to publicity and campaigning for the programme.

2. Training Phase: The primary objective of training programme is to develop motivation and skill or competency amongst the potential entrepreneurs. Care should be taken to impart both theoretical and practical knowledge to various trainees. The training phase of EDP will be so designed that it will answer the following questions: Whether the attitude of the entrepreneur has been tuned towards the proposed project or no. Whether the trainee has been motivated to accept entrepreneurship as a career. How the trainee behaves like an entrepreneur. Whether the trainee has sufficient knowledge on resources and technology or not. What kind of entrepreneurial traits he lacks and what steps should be taken to set it.

3. Follow-up Phase: Follow up phase of EDP has been termed as post-training phase. The ultimate objective is to develop competent entrepreneurs. So that they can start their project. Post-training phase is a review phase of training programme. It consists of reviewing of work in the following manner: Review of pre-training work Review of actual training programme Review of post training programme so that cost effectiveness of the present programme can be evaluated.

Q.3 What are the basic problems faced by the women entrepreneurs? Answer 1. Shortage of Finance: Women entrepreneurs always suffer from inadequate financial resources and working capital. They are not able to afford external finance due to absence of tangible security and credit in the market.

Women have a very less property and bank balance to their name. Male members of the family do not want to invest their capital in the business run by women due to lack of confidence in their ability to run venture successfully. The complicated procedure of bank loans also creates lot of problems in getting the required finance. Women entrepreneurs even face problems in getting requisite working capital financing day-to-day business activities. Women entrepreneurs have to depend upon their personal saving and loans from family friends. Most of the women entrepreneurs fail due to lack of proper financing facilities, because finance is life blood of every business activities. 2. Marketing problems: Women entrepreneurs often depend upon the middlemen for marketing their products who pocket large chunk of profit. The middlemen exploit the women entrepreneurs. Women entrepreneurs also find it difficult to capture the market and make their products popular. A lot of money is needed for advertisement in these days of stiff competition from male entrepreneurs. Women entrepreneurs also lack energy and extra efforts needed to be investing and to win the confidence of customers and popularize the products. 3. Shortage of raw materials: The shortage of required raw materials is also one of the big problems faced by women entrepreneurs. Women entrepreneurs find it difficult to procure the required raw materials and other necessary inputs for production in sufficient quantity and quality. The prices of raw materials are quite high and fluctuate. 4. Stiff competition: Women entrepreneurs have to face severe competition from organized industries and male entrepreneurs having vast experience. 5. Limited managerial ability: Women entrepreneurs may not be expert in each and every function of the enterprise. She will not be able to devote sufficient time for all types of activities. 6. High cost of production: The high cost of production is another problem which undermines the efficiency and restricts development of women entrepreneurs. It is necessary to increase efficiency, expand productive capacity to reduce the cost of production. 7. Lack of entrepreneurial aptitude: One of the biggest problems of women is the lack of entrepreneurial aptitude. They have no entrepreneurial bent of mind. The basic characteristics of an entrepreneur such as innovation, risk bearing etc. are absent in a women

entrepreneur. 8. Low risk taking ability: Women entrepreneurs suffer from the problem of low risk taking ability as compared to their male counterparts, because they have led a protected life. They even face discrimination in the selection of or entrepreneurial development training. Inferiority complex, unplanned growth, lack of infrastructure, hesitation in taking quick decision also increases the rate of risk and chances of loss. 9. Family responsibilities: One of the main duties of women in India is to look after the children and other family members. A very little time and energy is left for business activities. A married woman entrepreneur has to make a perfect balance between domestic activities and business activities. The woman entrepreneur cannot succeed without the support and approval of husband. Their success in this regard also depends upon supporting husband and family. Thus, occupational back grounds of families and education level of husbands have a great influence on the growth of women entrepreneurship. 10. Social attitudes: One of the biggest problems women entrepreneurs is the social attitude in which she has to live and work. There is discrimination against women in India despite constitutional equality. Women do not get equal treatment in male-dominated Indian society and male ego puts barriers in their progress. 11. Lake of Education: The education level among women in India is very low. Majority of women are not aware about the technological developments, marketing knowledge etc. due to lack of education. Illiteracy further creates problems in setting up and smooth running of enterprises. 12. Lack of entrepreneurial training: Large number of women is no proper and sufficient technical and professional training to set-up a new venture. 13. Legal Formalities: Women entrepreneurs find it extremely difficult in complying with various legal formalities in obtaining licenses etc. 14. Travelling: Women entrepreneurs cannot travel from one place to another as freely as men do. Women have some peculiar problems like staying out in the nights at distant places etc.

Q.4 What are the sources from which an entrepreneur can obtain business ideas. Answer 1. Market Charac: The supply and demand of vari Q.5 Write a note on marketing strategy Answer Q.1 Write a note on new small enterprise policy 1991. Answer Q.2 What is SIDO? Explain its functions. Answer SIDO is created for development of various small scale units in different areas. SIDO is a subordinate office of department of SSI and ARI. It is a nodal agency for identifying the needs of SSI units coordinating and monitoring the policies and programmes for promotion of the small industries. It undertakes various programmes of training,consultancy, evaluation for needs of SSI and development of industrial estates. All these functions are taken care with 27 offices, 31 SISI (Small Industries Service Institute) 31 extension centers of SISI and 7 centers related to production and process development The activities of SIDO are divided into three categories as follows: (a) Coordination activities of SIDO: (1) To coordinate various programmes and policies of various state governments pertaining to small industries. (2) To maintain relation with central industry ministry, planning commission,state level industries ministry and financial institutions. (3) Implement and coordinate in the development of industrial estates. (b) Industrial development activities of SIDO: (1) Develop import substitutions for components and products based on the data available for various volumeswise and value-wise imports. (2) To give essential support and guidance for the development of ancillary units. (3) To provide guidance to SSI units in terms of costing market competition and to encourage them to participate in the government stores and purchase tenders. (4) To recommend the central government for reserving certain items to produce at SSI level only. (c) Management activities of SIDO: (1) To provide training, development and consultancy services to SSI to develop their competitive strength. (2) To provide marketing assistance to various SSI units. (3) To assist SSI units in selection of plant and machinery, location, layout design and appropriate process. (4) To help them get updated in various information related to the small-scale industries activities. Q.3 Discuss MODVAT in detail . Answer Modvat stands for "Modified Value Added Tax". It is a scheme for allowing relief to final manufacturers on the excise duty borne by their suppliers in respect of goods manufactured by them. eg ABC Ltd is a manufacturer and it purchases certain components from PQR Ltd for use in manufacture. POR Ltd would have paid excise duty on components manufactured by it and it would have recovered that excise duty in its sales price from ABC Ltd. Now, ABC Ltd has to pay excise duty on toys manufactured by it as well as bear the excise duty paid by its supplier, PQR Ltd. This amounts to multiple taxation. Modvat is a scheme where ABC Ltd can take credit for excise duty paid by PQR Ltd so that lower excise duty is payable by ABC Ltd. The scheme was first introduced with effect from 1 March 1986. Under this scheme, a manufacturer can take credit

of excise duty paid on raw materials and components used by him in his manufacture. Accordingly, every intermediate manufacturer can take credit for the excise element on raw materials and components used by him in his manufacture. Since it amounts to excise duty only on additions in value by each manufacturer at each stage, it is called value-added-tax (VAT) The modvat credit can be utilized towards payment of excise duty on the final product. When the scheme was first introduced, it covered only some excisable goods. Gradually, the scope of the modvat scheme has been enlarged from time to time under various notifications. From 16 March 1995, all excisable goods can take the benefit of the scheme except those mentioned below:In case of inputs Tobacco and Manufactured Tobacco Products Matches other than pyrotechnics articles of heading number 36.04 of CETA Cinematograph Films Motor Spirits, Special Boiling Spirits, High Speed Diesel In case of final products Tobacco and Manufactured Tobacco Products Matches other than pyrotechnics articles of heading number 36.04 of CETA Cinematograph Films Woven fabrics classified under chapter 52,54 & 55 of CETA other than cotton fabrics, man made fibre fabrics and filament yarn fabrics Advantages of Modvat It reduces the effects of taxation at multiple stages of manufacture. It facilitates duty free exports. It increases the tax base. Disadvantages of Modvat It increases paper work and leads to multiplicity of records. It leads to corruption. It leads to litigation. Q.4 Ms Latha G. wants to set up her own garment manufacturing unit. She needs to submit a report about the project,in order to get the loan. What all essential details she should mention in the project report. [10] Q.5 Elaborate the TQM Process in Small Scale Enterprises. Answer Total quality management or TQM is an integrative philosophy of management for continuously improving the quality of products and processes. Q.6 Explain expansion with advantages and disadvantages. Answer The advantage of expansion are: Growth through expansion is natural and gradual. Enterprise grows with making major changes in its organisational structure. Expansion makes possible the effective utilization of existing resources of an enterprise. Gradual growth of enterprise become easily manageable by the enterprise.

Expansion results in economies of large-scale operations. The disadvantage of expansion are: Growth being gradual is time consuming. Expansion in the same line of product delimits enterprise growth making enterprise unable to take advantages from new business opportunities. The use of modern technology is limited due to the limited resources at the disposal of enterprise. It weakens the competitive strength of the enterprise.