Module-I Basic Concepts Entrepreneurial Resource Management

Development of Industries in Rural areas Self-employment

Income generation

Employment for Others

Entrepreneurship

More goods & Services available Promotion of the Use of Modern Technology

Development of Entrepreneurial Qualities & Attitudes

Encourage more researches Studies

Kinds of Enrepreneurs
Inovative Imitative Faabian- cautious, skeptik to change change on imminent threat only Drone die hard conservative, prepared to bare losses

Role of Entrepreneur in Economic development

New product in market

Money circulation
Creation of employment

New technology Discover new source of material

Better Standard of living New ideas bring huge changes Develop new market Mobilize capital resources

Institutional Support Structure for MSMEs in India

At Federal Level
1. Ministry of MSMEs

At State Level
1. Directorate of Industries 2. District Industries Centres

2. Small Industries Development Organisation (SIDO)

3. National Small Industries Corporation(NSIC) 4. Khadi & Village Industries Commission(KVIC)

MSME s Others
1. Industry Associations 2. NGOs 3. Banks/Financial Institutions

3. State Finance Corporation 4. State Industrial Development Corporation 5. Technical Consultancy Organisations 6. Entrepreneurship Development Institutions (EDIs)

5. Coir Board
6. Entrepreneurship Development Institutions (EDIs)

Problems and Challenges faced by Entrepreneurs

Internal Problems of Entrepreneurs 1 Planning a. Technical feasibility b. Economic viability 2 Implementation 3 Production a. Production mgt b. Labour mgt c. Marketing mgt d. Financial mgt e. Administrative mgt

Problems and Challenges faced by Entrepreneurs

External Problems of Entrepreneurs Infrastructural( Location, power, water, communication) Financial (capital, long term funds, recovery, ) Marketing Taxation Raw material Industrial and financial regulations Inspections Technology Govt. policy Administrative hurdles Corruption Lack of direction Competitive and volatile environment

 Ten Deadly Mistakes of Entrepreneurship:

Business entrepreneurship fail because: Management Mistakes Lack of Experience Poor financial control Weak marketing efforts Failure to develop a strategic and effective plan Uncontrolled Growth Poor location Improper inventory control Incorrect or unsuitable pricing The inability of to move into entrepreneurial thinking mindset from the previous secured permanent managerial position held.

 How to avoid failure in a Entrepreneurial business.

Know your business in depth. Develop a good, effective and solid Business Plan. Manage your financial resources effectively. Have a thorough and complete financial statement. Learn hire and manage people effectively.

New-Product Development Process

Source of Idea generation

Analyze market, customers and environment; Analyze your existing business

Sources for innovative idea

Evaluation level

Implementation

Results

Check your idea; Check yourself

Generation of ideas
Family, Friends & Relatives Market Research Firms Industry Brain storming Focus groups Problem inventory analysis Reverse brainstorming Brain writing

Idea analysis

Preliminary screening

Compatibility with the promoter Consistency with governmental priorities Availability of inputs Adequacy of market Reasonableness of cost Acceptability of risk level

Steps in setting up a new enterprise

Step 1: Write a Business Plan
Use various tools and resources to create a Business Plan

Step 2: Get Business Assistance and Training

Prepare a business plan and secure finances to expand or relocate a business Take advantages of trainings and counseling services for business plan
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Steps in setting up a new enterprise

Step 3: Choose a right business location
Select a customer-friendly location and comply with zoning laws

Step 4: Finance your Business

First try to get government loans Try to get venture capital and research grants to help in starting the business

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Steps in setting up a new enterprise

Step 5: Determine the Legal Structure of your Business
Decide which firm of ownership is best suited for the business:
Sole proprietorship Partnership Limited Liability Company (LLC) Corporation Nonprofit or Cooperative

Step 6: Register a Business Name

Register business name with state government 15 - 18

Steps in setting up a new enterprise

Step 7: Get a Tax Identification Number
Learn which tax identification number is required for the business

Step 8: Register for State and Local Taxes

Register with the state tax identifier for
Workers compensation Unemployment and disability insurance

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Steps in setting up a new enterprise

Step 9: Obtain Business Licenses and Permits
Get permits which is required for the business

Step 10: Understand Employer Responsibilities

Learn the legal steps which is required while hiring the employees

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