Introduction to Entrepreneurship

Entrepreneurship is a dynamic activity. This helps the entrepreneur to bring the changes in the process of production, Innovation in the production, new usage of materials, creating of market etc. It is a process of doing something new and in effective manner. It is the most important input in the economic development of a country/ nation. In fact entrepreneurship is the dynamic need of developing the nation.

Definition of Entrepreneurship
It is the purposeful activity of an individual or a group of associate individual understands to initiate, maintain, or aggrandize profits by production or distribution of economic goods and services.
A.H.Cole

Entrepreneurship involves doing things in a better and new way. It calls for decision-making under uncertainty. If there is no significant uncertainty and the action involves applying known and predictable results, then entrepreneurship is not at all involved.
Mc Clelland

By the above definition we come to know that the entrepreneur is a person but entrepreneurship is the activity performed by an entrepreneur individually or by a group. This activity consists of taking the initiative. Maintaining and increasing the profits by producing and distributing the goods and services.

Nature of entrepreneurship
1)Innovation 2)Risk bearing

3)Decision-making 4)Organization and management 5)Accepting challenges 6)Solving problems 7)Systematic planning

Importance of entrepreneurship
The importance of entrepreneurship is defined in three different fields. They are: 1)Individual importance. 2)Social importance. 3)National importance.

Individual importance
a) Provides self employment, income, and livelihood.

b)Provides satisfaction for contributing to society and nation.

c)

Family and next generations financial security ensured.

Social importance
a) Provides better or new utility or convenience. b)Increase quality of life. c) Increase competition and ensures increased efficiency of firms. d)Provides consumers with greater choice. e) Leads to better utilization of resources. f) Income distribution spreads more widely.

1.National importance

a) economy the firms want people who are creative and innovative.

Economic development and growth is more rapid. b)Increase in employment opportunity both direct and indirect. c) Increase tax collection. d)Innovation, creativity, research and development get boosted. e) Increase self reliance of a nation.

These are the some of the importance of entrepreneurship in the context of individual, social and national. Despite these critical importance of entrepreneurs/ entrepreneurship to develop the programme or strategies including any systematic means for stimulating new sources of entrepreneurship programme like financial

institution, numerous management and training programmes. The key point is that most industrial economists are reaching a stage where they need to do something different than they have been doing. Good entrepreneur is usually market focused and market driven. So to form a resilient

Introduction to Human resource:

MEANING:

Human resource refers to a whole consisting of inter related, inter dependent and interacting physiological, sociological, psychological and ethical components. Human resources represent the quantitative and qualitative measurement of work force required in an organization.

Business houses are made or broken in the long run not by markets or capital, patents or equipments but by men. Human resource is the only resource which does not depreciate with the passage of time.

NEED FOR HUMAN RESOURCE:

Human resources are essential (needed) to an organization on account of the following reasons: 1)It manages all Ms i.e. Money , material and machine efficiently and effectively for productive purpose. 2)It is essential for cost reduction, because human resources are capable of effecting savings in the time and labour operation.

3)It controls wastage of resources and activities of economy and productivity. 4)It integrates the activities of the organization for purposeful plan of action and implementation. 5)No organization can function without human resource.

Human Resource Management: Human resource management is everything which is related to management of people, HRM is strategic approach to the acquisition. Motivation, development and management of the organizations human resource. It is a specialized field that attempts to develop programme, policies and activities to promote the satisfaction of the needs of individual and organization, needs, goals and objectivities.

Objectives of HRM :

To maintain high morale and good human relations within the organization.

To create facilities and opportunities for individual or group development. To help the organization to attain its goals by providing well trained and well motivated employees.

To achieve and maintain leadership in people management.

CHART SHOWING FUNCTIONS OF HRM:

Functions of HRM.

Managerial Functions Operative Functions Planning procurement Organizing Directing compensation Controlling integration HRD

Maintena nce

NEED FOR HRM:

Replacement Labour turnover Expansion and diversification

Meeting new demands

Man assessment Human Resource Development :

Human resource development deals with the process of developing people in accordance with their aspirations and to send the organizational needs.HRD primarily seeks to know what individuals seek to have tries to match it with the organizational needs by using by using its strategies to bring forth necessary changes in skills. Capabilities and attitudes of people who are

required to cope with the emerging changes, while training and development are most deceive of HRD.

Human Resources Planning: Human resource planning means to assess or calculate the number of men that is required during the period for a particular organization. Manpower planning is essential because when we prepare plans in other sections like, finance, marketing, production, in the same manner planning is to be made in personnel department.
Man is the key to our problems, not money; competent people can work miracles even with small resources and draw wealth out of barren land.

Human Resource Accounting:

It means accounting for people as the organizational resource .HRD is measurement of the cost and value of people to organizations. So it involves cost incurred on recruiting, selecting, hiring, training and developing employees and judging their economic value to the organization. Systematic human resource accounting will help organizations to

quantify worth of people as organizational assets. Thus people have future usefulness that adds value to an organization.

Introduction to entrepreneur
Name of the Entrepreneur : MAHESH MALU

Fathers Name

:TARACHAND MALU

Family Background

: Ancestral Business

Qualification of Entrepreneur: B.com

Started business in the age : 20

Partners

: NO

Capital invested in business : 25-30lakhs

Dealing in

: Cement Products

Experience as being an entrepreneur: 10 Years

Any previous business

: No

Additional Qualification

: No

Contact NO

: 09448287602

Company Profile
Name of the Industry : Laxmi Cement Products

Year of Commencement : 1969

Types of product produced : Tiles, pavers, Readymade Compound Wall and Benchs

Finance : 20,00,000/- while starting the industry

License : In 1969

Partners : NO

Employee status : 20-40

Branches : Hyderabad and Latur

Location : Industrial Area Gunj Gulbarga

Area Occupied : 32,000 sq.ft.

Area of Operation : Not Specifically

Customer Group : Govt Works and Private

Mahesh Malu (Laxmi Cement Products)

Questionnaire
1) What influenced you to step into this Industry?

In 1967-70 the construction line was at boom as a result it was more beneficial to start up a tiles industry and the other reasons were a) To be self independent b) To produce employment c) To earn money

2) What were the factors considered while estimating the investments needed?

The factors which were considered while calculating the investments were a) Machinery b) Land and building c) Raw material

3)

What was the source of capital or investment?

Initially when they started the business they got loans from nationalized banks and also some amount of personal investment.

4)

Any interest to be paid on securing loans.

Yes up to 6% - 8%

5) Any permission or license required.

Yes in the year (1969 tarachand malu father of Mahesh and shyam malu had to

get permissions from) a) District industry centre (DIC)

b) Small scale industry from Bangalore

6) Machinery suppliers.

As the industry is small scale there is no requirement of huge machineries but as far as production is concerned, production of tiles cannot be done manually so we require some machinery ,

In the company, we needed only two machines to produce a single unit machines required for the purpose are. a) Concrete mixer b) Vibrator Machineries and moulds were bought from Kolkata and the total amount required to purchase these machines was Rs. 15,00,000. The maintenance of these machines is Rs. 2500- 3000/ month on an average.

7) Power consumption of machines.

To run the above mentioned machines for producing the tiles huge electricity is needed so in order to meet that requirement we have to take special permission for KEB or KPTCL The company needs 25HP of power of electricity for its production purpose where 1 HP = 7.5 kw (kilowatt)

8) Source of raw material.

To make the tiles the main raw materials are small size stones, sand, cement , steel, color, pigments and chemicals .

There are no contracts or agreement between the company and raw material suppliers. If any people have the raw material suppliers if any people have the raw materials suppliers if any people have the raw materials and if he is ready to sell to the company they just purchase it from them, if is total free entry and exit policy.

9) Human Resource.

As the company is small scale they are not in need of huge number of working force (workers but as far as the production is concerned the machineries are labour oriented machines for which we need an operators.

So at present the company is hiring 25-30 employees among which few are working as helpers and few as operators.

10)

Working hours and pay role.

The working hours of an employee is 9am to 6pm 1+ 9 hours a day on Sunday the production remains closed.
The pay role system of company is met by paying the weekly salaries and bonus for a year.

11) Recruitment.

We do not follow any process or procedure for recruiting the employees if any person approaches to the company for the job and if any of the jobs is vacant then the company recruits him or her.

No specified eligibility or training is required for an employee. But the employee must be physically fit and must learn to work himself by seeing others.
12)

Facility to workers.

The workers are provided with insurance, medical treatment, public provident fund (P-F) etc.

13)

Finance.

 As the company is small scale industry so we do not need much of finance for day to day expenses. The need of finance will be more in the initial stage as we do not have much of knowledge or group in the companys activity. The needs of finance arise due to the machines. If any machine needs to do oiling or some other repair then we need finance to meet those expenditures. Apart from this, the company does not have any extra financial expenditure and it also does not need any extra finance for its operations.

14) Salary for workers.

Production manager Head manager Helper

Rs. 6000 Rs.8000. Rs. 4000

15) Marketing.

There is no much requirement of marketing in this business the following channel of distribution explains us about the use of marketing in this industry.

Channels of Distribution

Suppliers of Raw Materials

Laxmi Cement Products

Sellers

The above chart explains how the marketing concept is used in .

The raw material required for the production is purchased from the raw material supplier. Those material is been processed under many stages for the outcome of finished product later, a seller approaches to the industries in order to buy the finished goods (Tiles) the industry sells it in wholesale at a current market price.

16)

Turnover.

The turnover of this industry is around Rs. 9,00,000 / year

First generation entrepreneur/ ancestral / traditional/ family

According to the owner the entrepreneurship is started by his father Mr. Tarachand malu father of Mahesh and shyam malu in the year 1969 In 1960 and 70s the construction line was at boom and it was a right time to start up a tiles industry according to his market survey this influence Mr. Tarachand malu to start up a tiles manufacturing unit. This business gave a favorable result along the year but with an interest to earn more profit son of Mr. Tarachand malu profit son of Mr. Tarachand malu i.e. Mr. Mahesh malu ( The present entrepreneur started manufacturing tiles of different shapes and sizes using latest techniques which gave a better result.

17)

Innovation / copying of existing products.

As the company is small scale we are not independent as other large scale industries. As we do not manufacture machines we are depended on machines we are depended on machinery manufacturers who manufacture the machines and moulds to make the tiles. We just get the information from the suppliers or by manufacturers about the new model of moulds or shapes which are used to prepare tiles and we purchase the new made of moulds from them and start to produce the tiles of that model.

PROBLEM FACED.

Problems are common in each and every type of activity. In an industry also it is very common phenomenon which we have to face. According to the entrepreneur of laxmi cement product - the problem which he faced were lack of knowledge, lack of power and working force etc. But these problems were faced only at the initial stage while starting a company.

In day-to-day routine work also we face problems. Those problems are not so complicated, as they deal with machines and labours etc. the day-to-day problems faced in the industry are:

1) Problems of machinery where some parts in machinery may not work due to wear and tear. 2) Variation in supply of electricity, due to which there will be improper balance of production. 3) Shortage of work force due to leave.
4) Problems due to machinery maintenance etc.

Motivation factor:

In Laxmi Cement Products, there is no existence of any motivation factor. Because the entrepreneur of Laxmi Cement Products says that-We dont run any big industry where we feel shortage of work force. Ours is small scale industry where, the employees are recruited even if they dont have their minimum qualification/education. We recruit those kinds of people who know anything about the work but they learn it, when they get to the work. So there is no much necessity to have Employee retention as we not consider any education qualification. If any worker is performing low then we give him warning and then we remove him from the work and get another worker for the job. As we get another worker easily, so we dont retain them by using any motivation factor.

Starting Hurdles: There were no much starting hurdles while setting up laxmi cement product. It may be due to the experience of entrepreneur in his previous business. But also the entrepreneur faced some of the minor hurdles while starting. They were 1) Getting permission from KIADB (Karnataka Industrial Area Development Board) which took some time to get. 2) Hurdles in electricity: As we consume 35HP of electricity where 1HP= 7.5kw. So we have to get permission from the K.E.B department to get supplied with that volume of electricity. This also we could not get as in early way.
3) Machinery problem: As we were having doll industry previously, so we faced difficulties while procuring machinery, first we have to sell the machinery of

previous doll making industries and then purchase the machinery for pot making. This was somewhat difficult.

Problem solving and decision making systems:

There was no much explanation about this concept by the entrepreneur as laxmi cement product. Because according to him there will be no any major problem where the solution is typical. We just have minor problems where the owner himself can solve it by his experience. In the context of decision making the company still not have come across any situation where a single decision can do a big change. If any such situation comes then there will be some simple decision by which there will be no such changes in regular pattern.

Suggestions:

1) Business can be expanded by opening its branches in other places also. 2) As the production is in large quantity the warehouse facilities must be still improved. 3) Instead of depending on brokers for the labors it will be beneficial if they themselves find and provide employment. 4) Better and new technologies can be used to improve the speed of production.

5) There should be some sales promotion of their products.

Conclusion:

By enlisting the facts & policies & functions of the company, one can conclude that: The company has rendered its valuable service to its customers with whole heartedly. And it has also assisted the customers by providing necessary information about the products & other related forecasts. The company is the most successful company in the field of Tiles & Pavers, as the company is in existence since 4 decades.

The company is able to enlarge its customer base by providing additional customer related services through sellers. Considering the constructive better trading relations of the company with the customers & suppliers, the company is hopeful of achieving newer heights & healthy & prosperous future in the years ahead.