G – MRACEXECUTIVE

EXCELLENCE PROGRAM

(EEP)

FROM THE DESK OFPROF. SHYAM VYAS, PH.D..,

LEAD FACULTY

Case #3 THE PRINCE OF PIZZA

GAGRI COLLEGE, NEW DELHI

 

GROUP NO. 4

GROUP NO.(MEMBERS) NAME- BHUMIKA RATAN

 

DATE DUE:14 sep.2011DATE SUBMISSION:13sep.2011

  

SUMMARY

Founding in the 1960s Tom Monaghan, founder of Domino's Pizza, was born

in 1937 near Ann Arbour, Michigan. Following his father's death in 1941, Monaghan lived in a succession of foster homes, including a Catholic orphanage, for much of his childhood. His mother, after finishing nursing school and buying a house, made two attempts to have Tom and his brother live at home with her, but she and Tom failed to get along. During these years Monaghan worked a lot of jobs, many of them on farms. His father's aunt took him in during his senior year of high school, but after that he was once again on his own. A quote from Monaghan in his high school yearbook read: "The harder I try to be good the worse I get; but I may do something sensational yet."

For several years Monaghan worked to try and save money for college; he joined the Marines and saved $2,000, but gave it in several instalments to a fly-by-night "oil man" he met hitchhiking, who took the money and ran. Monaghan returned to Ann Arbour to live with his brother Jim, who worked for the Post Office and did occasional carpentry work at a pizza shop called Dominick's. When Jim Monaghan overheard the pizza shop owner discussing a possible sale, he mentioned buying it as a possibility to Tom. With the aid of a $900 loan from the Post Office credit union, in December 1960 Jim and Tom Monaghan were in business in Ypsilanti, Michigan.

Making PIZZA YUMMYYY

Within eight months, Jim Monaghan took a beat-up Volkswagen as a trade for his half of the partnership. Tom moved in across the street from his shop. The store Monaghan bought had little room for sit-down dining; from the start, delivery was key. The first drivers, laid-off factory workers, agreed to work on commission. After only $99 in sales the first week, profits climbed steadily to $750 a week. Early on, Monaghan made decisions that streamlined work and greatly enhanced profits: on two separate occasions he dropped six-inch pizzas and submarine sandwiches from his menu when he was shorthanded at his shop, reasoning that he and his staff could handle the rush better without making special-sized pizzas or sandwiches in addition to regular pizzas. When he went over the numbers the day after, both times Monaghan found that his volume and profits had increased. Keeping the menu simple made financial sense.

Although his salary rose to $20,000 a year, Monaghan was not satisfied. On the advice of Jim Gilmore, a local chef with some restaurant experience, Monaghan opened a Pizza King store offering free delivery in Mt. Pleasant, near the Central Michigan University campus. Gilmore ran the original Dominick's as a full partner with Monaghan. By early 1962, although the Ypsilanti store was not doing well, Gilmore persuaded Monaghan to open a Pizza King at a new Ann Arbour location, which Gilmore would oversee while Monaghan went and whipped the original .

The key of ENTREPRENEOUR bent of mind that is:-

Believe yourself Trade opinion side or Always values other Time/Opinion Organize yourself MAKE RIGHT DECISION.

QUESTIONS AND ANSWER

Q1. Analyze the information given in the brief write-up above on Tom Monaghan, and do additional research on him as an entrepreneur – and point out what in your personal view makes him a great entrepreneur. What is his current status ? What important character traits make a person a good entrepreneur in your personal opinion ?

ANS. Tom Monaghan Thomas Stephen "Tom" Monaghan (born March 25, 1937 in 

Ann Arbour, Michigan) is an entrepreneur and Catholic philanthropist and activist who founded Domino's Pizza in 1960. He owned the Detroit Tigers from 1983-1992.Monaghan sold Domino's in 1998 and has subsequently dedicated his time and considerable fortune to Catholic philanthropy and political causes. A champion of the pro-life and other conservative causes, Monaghan has spent hundreds of millions of dollars to further this agenda. [

Early lifeAfter his father died when Monaghan was four

years old, Monaghan's mother had difficulties raising him alone, and at age six, in 1943, Monaghan and his younger brother ended up in an orphanage until their mother collected them again in 1949. The orphanage, St. Joseph Home for Children in Jackson, Michigan, was run by the Felicia Sisters of Livonia; the nuns there inspired his devotion to the Catholic faith and he later entered a minor seminary, with the desire to eventually become a priest. Subsequently, he was expelled from the seminary for a series of disciplinary infractions. In 1956 Monaghan enlisted in the United States Marine Corps by mistake; he had meant to join the Army.[3] He received an honourable discharge in 1959.

Domino's PizzaMonaghan returned to Ann Arbour, Michigan in 1959, and enrolled in the 

University of Michigan, intending to become an architect.  While still a student, he and his brother James borrowed $500 to purchase a small pizza store called Dominick's in Ypsilanti, Michigan. This business would, after a lawsuit from Domino's Sugar, grow into Domino's Pizza. Tom, after opening a further three stores, traded his brother James a Volkswagen Beetle for his half of the business. Monaghan dropped sub sandwiches from the menu and focused on delivery to college campuses, inventing a new insulated pizza box to improve delivery. The new box, unlike its chipboard predecessors, could be stacked without squishing the pizzas inside, permitting more pizzas per trip, and keeping them warm until they arrived. Spreading his model to other college towns through a tightly-controlled franchising system, by the mid-1980s there were nearly three new Domino's franchises opening every day.

He sold his controlling stake in Domino's Pizza in 1998 to Bain Capital, an investment firm based in Boston, for an estimated $1 billion. Monaghan returned to Domino's in 2001 after its fortunes worsened and helped the company recover.[citation needed]In 1989, the National Organization for Women (NOW) called for a boycott of Domino's because of his views, but it is unclear what effect, if any, that had on the company's sales.

LeisureThe wealth Monaghan amassed from Domino's

Pizza enabled a lavish lifestyle. However after reading a passage by C. S. Lewis on pride (from Mere Christianity), Monaghan divested himself of most of his more ostentatious possessions, including the Detroit Tigers in 1992. He gave up his lavish office suite at Domino's headquarters, replete with leather-tiled floors and an array of expensive Frank Lloyd Wright furnishings, turning it into a corporate reception room. He also ceased construction on a huge Wright-inspired mansion that was to be his home. (The house remains half-finished.)

Catholic philanthropy and activismMonaghan is a Catholic with a particular interest in pro-

life causes and the appointment of pro-life Justices to the U.S. Supreme Court. He established or helped establish a number of Catholic organizations and Catholic educational establishments. In 1987 Monaghan received Holy Communion from Pope John Paul II in his private papal chapel at the Vatican. The orchestral Ave Maria Mass, by composer Stephen Edwards, was commissioned by Monaghan "to express in music the spiritual commitment behind the founding of Ave Maria College and Ave Maria School of Law." This mass has now been dedicated by the composer to the victims of September 11. Monaghan publicly promotes daily attendance at Mass, daily recitation of the rosary and frequent sacramental confession. He has also committed to spending what remains of his $1 billion fortune on philanthropic endeavours.

Political support Monaghan has been active in 

Republican Party politics, and was one of the key financial backers of Sam Brownback in his 2008 presidential campaign.

ADDITIONAL RESEARCH ON TOM MONAGHAN

CEO of Domino's PizzaThomas Monaghan Business 25-Mar-1937 Domino's Pizza founder, pro-life activist Americans for a Republican Majority ORGANIZATION

Catholic League for Religious and Civil Rights

ORGANIZATION"The Catholic League for Religious and Civil

Rights affirms its existence and role in fighting anti-Catholic bias and Catholic bashing in our civil society by those means which prudence and courage dictate."

Founded in 1973, and not affiliated with the Catholic Church.

In my personal view makes Tom Monaghan a great Enterpreneour An entrepreneur is an individual who owns a firm,

business, or venture, and is responsible for its development. Entrepreneurship is the practice of starting a new business or reviving an existing business, in order to capitalize on new found opportunities.

Entrepreneurship is often associated with uncertainty, particularly when it involves creating something new for which there is no existing market. Even if there is a market, it may not translate into a huge business opportunity for the entrepreneur. A major aspect in entrepreneurship is that entrepreneurs embrace opportunities irrespective of the resources they have access to.

Entrepreneurship involves being resourceful and finding ways to obtain the resources required to achieve the set objectives. Capital is one such resource. Entrepreneurs need to think out-of-the-box to improve their chances of obtaining what they need to succeed. According to management experts, vast majority of entrepreneurs desire to be in control of their own life and they can’t find this beyond entrepreneurship. Studies have demonstrated that people derive great satisfaction from their entrepreneurial work. They often see things that others fail to notice. They endeavour to bring about change and foster growth. They believe in themselves. Entrepreneurship propels them to strive and move forward, to get to where they want to be

The current status of Tom Monaghan that is….

In 30 Minutes Or Less

October 10, 2008 "Always keep your eye on

the operation."-Tom Monaghan

Traits that makes a person a good Enterpreneur

Although the spirit behind a successful entrepreneur is genderless, there are unique character traits within the female psyche that, when fully harnessed, can propel her to heights unattainable by her male contemporaries. Instilled within a woman are natural tendencies toward nurturing, teaching, healing and protecting and all of these tendencies give the female entrepreneur a bit of a step up in business if properly utilized. A self-owned business can easily be compared to a dependant child and the birthing process exhilarating, life-changing, excruciatingly painful and demanding of every ounce of strength. If you are willing to allow it, your passion and tenacity will push you far past any boundaries you may have thought you possessed.

Q2. Is there any entrepreneur in Indian or global context that comes to your mind

that you admire – discuss his / her background, highlight his

accomplishments, and state specifically why you consider him to be an

entrepreneur that is noteworthy and successful ?

ANS. The person who admire me RATAN TATA.

Ratan Tata: Icon of Indian entrepreneurship India completes 62 years of freedom from

British rule on August 15, 2009. On this historic occasion, we take a look at the outstanding persons who contributed their might to building Brand India and its emergence as an economic power. The first in the series profiles Ratan Tata, one of the most well-known and respected industrialists in the country.

Every great entrepreneur have two fundamentals management:

- Hire good people, treat them well and delegated responsible

-when building an enterprise (factories) or whatever

-they all are highly focused -highly observed minded. And have courage to do

something.

India completes 62 years of freedom from British rule on August 15, 2009. On this historic occasion, we take a look at the outstanding persons who contributed their might to building Brand India and its emergence as an economic power. The first in the series profiles Ratan Tata, one of the most well-known and respected industrialists in the country.

After the 26/11 Mumbai attacks, Forbes called Ratan Tata India's most respected business leader and opined that Tata be brought into politics. Forbes' comment was a recognition of how Tata's shrewd business moves raised India's standing in the international business arena. 

71-year-old Ratan Tata took over the Tata Group, India's largest business conglomerate with businesses ranging from software, cars, and steel to phone service, from its legendary chairman J.R.D. Tata, in 1991, ushering in a wide array of reforms. His two acquisitions--Corus Group and Jaguar & Land Rover- made corporate history. What made Ratan Tata a household name in India was his launch of the Rs1 lakh car, Tata Nano, at an auto expo in New Delhi on January 10, 2008. It was under his stewardship that Tata Consultancy Services went public and Tata Motors was listed in the New York Stock Exchange. India's top rated industrialist was recently approached by the Government of India to bail out the airline national carrier Air India. Ratan Tata has reportedly agreed to take up the challenge.

BIOGRAPHY OF RATAN TATA..

Ratan Naval Tata Born on-December 28, 1937 (1937-12-28) (age

72) Bombay, Bombay Presidency, British India Country Of Citizenship-India Occupation-Chairman of Tata Group Industry-Tata Steel, Tata Motors, Tata Power, Tata

Consultancy Services, Tata Tea, Tata Chemicals, The Indian Hotels Company and Tata Teleservices

Famous for-Being a wealthy billionaire Indian businessman and chairman of the Tata Group, one of the largest conglomerate companies in India.

TATA NANO

TATA TRUCK

Awards Padma Bhushan (2000)

Padma Vibhushan (2008)KBE (2009)

The accomplishment of RATAN NAVAL TATA... Is this the most influential person in India? Not many people can scare automobile manufacturers,

and few would do it in a county where it would take the average person over two decades to buy a car.

But Ratan Tata has achieved just that. In January 2008, after four years of labour and being the joke of the automobile industry, Tata Motors unveiled a car which can sell for less than 100,000 rupees ($2,500).

Today, India finds itself in a far more mobile economy. If the rapid economic impacts linked with affordable automobile developments in North America and Western Europe hold true, Ratan may very well have changed India forever

Tata Group Tata Group is an Indian multinational conglomerate

company headquartered in the Bombay House in Mumbai, India."About us." Tata Group. Retrieved on 20 January 2011. "Contact Bombay House 24, Homi Mody Street Fort, Mumbai 400 001 India." Tata Group is one of the largest companies in India by market capitalization and revenue. It has interests in communications and information technology, engineering, materials, services, energy, consumer products and chemicals. The Tata Group has operations in more than 80 countries across six continents and its companies export products and services to 80 nations. The Tata Group comprises 114 companies and subsidiaries in eight business sectors, 27 of which are publicly listed. 65.8% of the ownership of Tata Group is held in charitable trusts. Companies which form a major part of the group include Tata Steel (including Tata Steel Europe), Tata Motors (including Jaguar and Land Rover), Tata Consultancy Services, Tata Technologies, Tata Tea (including Tetley), Tata Chemicals, Titan Industries, Tata Power, Tata Communications, Tata Sons, Tata Teleservices and the Taj Hotels

What Ratan Tata has been up to recentlySouth Africa's billionaire Patrice Motes in talks with Ratan Tata for JV in ...NEW DELHI: South Africa's first black billionaire, mining

magnate Patrice Motes, is in talks with Ratan Tata for ventures in financial services in India and minerals in his country, where the Tata Group is already one of the biggest foreign investors ...

Small car could be core of Fiat's solo retail driveBusiness Line Still on strong terms: A file photo of Mr Ratan

Tata, Chairman, Tata Group, and Mr Sergio Marchioness', CEO of Fiat group. -- Photo: Kamal Narang Fiat's decision to break away from the joint retail business model with Tata Motors could have ...

Tata Power seeks power projects outside IndiaMUMBAI, Aug 24 (Reuters) - India's Tata Power , part of the

diversified Tata group, is looking for power projects outside the country to sustain its growth, Chairman Ratan Tata said on Wednesday. The overseas investment push by Indian companies, ...

I CONSIDERD HIM TO BE AN ENTERPRENEUR

Ratan Tata Trust is one of the oldest Indian foundations and continues to pursue the goal of being a professionally managed philanthropic organisation. Through its grant making, the Trust supports efforts for the development of society, in areas of Rural Livelihoods and Communities (RLC), Education, Health, Civil Society and Governance (CS&G), and Arts and Culture (A&C). In 2002, as part of its RLC portfolio, the Trust operationalised the 'Reviving the Green Revolution' (RGR) initiative to arrest the stagnation in agriculture in Punjab and for improving the economic status of rural populations especially small and marginal farmers

He is not only an entrepreneur but he is very hard working , struggling .. Besides a best industrial or entrepreneur he is down to earth. The outstanding persons who contributed their might to building Brand India and its emergence as an economic power.

Ratan Tata inaugurates cancer hospital Tata Medical Centre, Kolkata

Tata Sons chairman Ratan Tata on Monday inaugurated Tata Medical Centre, a state-of-the-art facility for the care, treatment and rehabilitation of cancer patients at Raja hat on the outskirts of Kolkata. The centre is modelled on Tata Memorial Hospital (TMH), Mumbai.

Set up at a cost of Rs 350 crore, Tata Medical Centre, Kolkata is a not for profit initiative that is aimed specifically at helping cancer patients from the east and northeast of India and also from Bangladesh, Myanmar and Nepal. The first phase of the project has space for 170 patients, with a provision for extending capacity to a further 150 patients.

About 50 per cent of the beds at Tata Medical Centre are earmarked for the free treatment of those who cannot afford treatment. The remaining 50 per cent of patients will be in the subsidised or paying categories, and the money that accrues will be utilised to support the institution. The rest of the centre’s expenses will be covered by charitable donations.

JRD Tata was the most respected — and probably the most admired — businessman in India . On Thursday, as I watched the TV coverage of Ratan Tata unveiling the Tata Nano in New Delhi , I was struck by a sudden thought: Ratan has finally inherited JRD's title. He is clearly the most respected and admired businessman in India today. years ago, when the Tata's struggled to reinvent themselves in the post-JRD era. I thought of how Ratan was perceived then: awkward, untalented, unworthy of the job, out of his depth and full of vindictive anger against many of the satraps of the JRD regime. It was a time of change. New groups were springing up out of nowhere. The certainties of the old protectionist economy and the license-permit- quota raj had collapsed. Reliance had made the transition from being seen as a parvenu to being regarded as an industrial behemoth. The Infosys legend, personified by Narayan Murthy's personal simplicity and marked by the world-class skills of his high-tech partners, had

Q3. Small businesses are the backbone of Indian and important to

economies and communities across the globe. Do you agree or disagree ? Support your point of view with specific facts please. Also

state how governments have tried to help small business growth in

India.

ANS. Economic development is a broad term that

generally refers to the sustained, concerted effort of policymakers and community to promote the standard of living and economic health in a specific area. Such effort can involve multiple areas including development of human capital, critical infrastructure, regional competitiveness, environmental sustainability, social inclusion, health, safety, literacy, and other initiatives. Economic development differs from economic growth. Whereas economic development is a policy intervention  endeavour with aims of economic and social well-being of people, economic growth is a phenomenon of market productivity and rise in GDP. Consequently, as economist Amartya Sen. points out: “economic growth is one aspect of the process of economic development.” [1]

Growth and Development Dependency theorists argue that poor countries have sometimes

experienced economic growth with little or no economic development initiatives; for instance, in cases where they have functioned mainly as resource-providers to wealthy industrialized countries. There is an opposing argument, however, that growth causes development because some of the increase in income gets spent on human development such as education and health.

According to Rains et al. (2000), economic growth and human development is a two-way relationship. Moreover, the first chain consists of economic growth benefiting human development with GNP. Specifically, GNP increases human development by expenditure from families, government and organizations such as NGOs. With the rise in economic growth, families and individuals will likely increase expenditures with heightened incomes, which in turn leads to growth in human development. Further, with the increased consumption, health and education grow, also contributing to economic growth. [9]

In addition to increasing private incomes, economic growth also generate additional resources that can be used to improve social services (such as healthcare, safe drinking water, etc.). By generating additional resources for social services, unequal income distribution will be mitigated as such social services are distributed equally across each community, thereby benefiting each individual. Thus, increasing living standards for the public.[10]

Concisely, the relationship between human development and economic development can be explained in three ways. First, increase in average income leads to improvement in health and nutrition(known as Capability Expansion through Economic Growth). Second, it is believed that social outcomes can only be improved by reducing income poverty (known as Capability Expansion through Poverty Reduction). Lastly, social outcomes can also be improved with essential services such as education, healthcare, and clean drinking water (known as Capability Expansion through Social Services).

Goals In the United States, Project Socrates outlined competitiveness as the

driving factor for successful economic development in government and industry. By addressing technology directly, to meet customer needs, competitiveness was fostered in the surrounding environment and resulted in greater economic performance and sustained growth. [12]

Economic development typically involves improvements in a variety of indicators such as literacy rates, life expectancy, and poverty rates. GDP does not take into account other aspects such as leisure time, environmental quality, freedom, or social justice; alternative measures of economic well-being have been proposed (more). Essentially, a country's economic development is related to its human development, which encompasses, among other things, health and education. These factors are, however, closely related to economic growth so that development and growth often go together.[13]

[edit]Regional policy Diagram of key components of a strong regional cluster, U.S.

Economic Development Administration [3] In its broadest sense, policies of economic development encompass

three major areas: Governments undertaking to meet broad economic objectives such

as price stability, high employment, and sustainable growth. Such efforts include monetary and fiscal policies, regulation of financial institutions, trade, and tax policies.

Organization Economic development has evolved into a professional

industry of highly specialized practitioners. The practitioners have two key roles: one is to provide leadership in policy-making, and the other is to administer policy, programs, and projects. Economic development practitioners generally work in public offices on the state, regional, or municipal level, or in public-private partnerships organizations that may be partially funded by local, regional, state, or federal tax money. These economic development organizations (EDO's) function as individual entities and in some cases as departments of local governments. Their role is to seek out new economic opportunities and retain their existing business wealth.

There are numerous other organizations whose primary function is not economic development work in partnership with economic developers. They include the news media, foundations, utilities, schools, health care providers, faith-based organizations, and colleges, universities, and other education or research institutions.

International Economic Development Council With more than 20,000 professional economic

developers employed world wide in this highly specialized industry, the International Economic Development Council  (IEDC) headquartered in Washington, D.C. is a non-profit organization dedicated to helping economic developers do their job more effectively and raising the profile of the profession. With over 4,500 members across the US and internationally, serving exclusively the economic development community, IEDC membership represents the entire range of the profession ranging from regional, state, local, rural, urban, and international economic development organizations, as well as chambers of commerce, technology development agencies, utility companies, educational institutions, consultants and redevelopment authorities. Many individual states also have associations comprising economic development professionals, who work closely with IEDC.

Yes, I agree with this statement The SBA has an Administrator and a Deputy

Administrator. It has an associate administrator for the following offices:

Capital Access Communications and Public Liaison Congressional and Legislative Affairs Disaster Assistance Entrepreneurial Development Field Operations Government Contracting and Business Development International Trade Investment Management and Administration Native American Affairs Performance Management Small Business Development Centres

Community Competition One unintended consequence of economic development is the

intense competition between communities, states, and nations for new economic development projects in today's globalized world. With the struggle to attract and retain business, competition is further intensified by the use of many variations of economic incentives to the potential business such as: tax incentives, investment capital, donated land, and many others. IEDC places significant attention on the various activities undertaken by economic development organizations to help them compete and sustain vibrant communities.

Additionally, the use of community profiling tools and database templates to measure community assets versus other communities is also an important aspect of economic development. Job creation, economic output, and increase in taxable basis are the most common measurement tools. When considering measurement, too much emphasis has been placed on economic developers for "not creating jobs." However, the reality is that economic developers do not typically create jobs, but facilitate the process for existing businesses and start-ups to do so. Therefore, the economic developer must make sure that there are sufficient economic development programs in place to assist the businesses achieve their goals. Those types of programs are usually policy-created and can be local, regional, state wide and national in nature

Microloan Program The Small Business Jobs Act increased the maximum amount of SBA microloans

from $35,000 to $50,000. These are offered through non-profit microloan financial intermediaries.

Small Business Investment Companies One of the first steps toward a professionally managed private equity and 

venture capital industry was the passage of the Small Business Investment Act of 1958. The 1958 Act officially allowed the SBA to license private "Small Business Investment Companies" (SBICs) to help with financing and managing small entrepreneurial businesses in the United States. Passage of the Act addressed concerns raised in a Federal Reserve Board report to Congress that concluded that a major gap existed in the capital markets for long-term funding for growth-oriented small businesses. Additionally, it was thought that fostering entrepreneurial companies would spur technological advances to compete with the Soviet Union. Facilitating the flow of capital through the economy up to the pioneering small concerns in order to stimulate the U.S. economy was and still is the main goal of the SBIC program today. [10] The passage of the Small Business Investment Act of 1958 by the federal government was an important incentive for would-be venture capital organizations. The act provided venture capital firms structured either as SBICs or Minority Enterprise Small Business Investment Companies (MESBICs) access to federal funds which could be leveraged at a ratio of up to 4:1 against privately raised investment funds. In 2005, in response to extensive losses incurred in connection with tech boom investments, the SBA decided to wind down its "Participating Securities" SBIC program, which had provided equity-like SBA backing for equity-oriented SBIC funds. The SBA's "Debenture" SBIC program, the original SBIC vehicle founded in 1958, is still very much alive and healthy and continues to license and contribute capital to SBIC funds. The SBIC program had it's highest ever year in Fiscal Year 2010

Governments help small business growth in India…

Microloan Program The Small Business Administration (SBA) is a United States government

 agency that provides support to entrepreneurs and small businesses. The mission of the Small Business Administration is "to maintain and strengthen the nation's economy by enabling the establishment and viability of small businesses and by assisting in the economic recovery of communities after disasters." The agency's activities are often summarized as the "3 Cs" of capital, contracts and counselling.[3]

SBA loans are made through banks, credit unions and other lenders who partner with the SBA. The SBA provides a government-backed guarantee on part of the loan. Under the Recovery Act and the Small Business Jobs Act, SBA loans were enhanced to provide up to a 90 percent guarantee in order to strengthen access to capital for small businesses after credit froze in 2008. The agency had record lending volumes in late 2010.[4]

SBA helps lead the federal government's efforts to deliver 23 percent of prime federal contracts to small businesses. Small business contracting programs include efforts to ensure that certain federal contracts reach woman-owned and service-disabled veteran-owned small businesses as well as businesses participating in programs such as 8(a) and HUB Zone.[

SBA has at least one office in each U.S. state. In addition, the agency provides grants to support counselling partners, including approximately 900 Small Business Development Centres (often located at colleges and universities), 110 Women's Business Centres, and SCORE, a volunteer mentor corps of retired and experienced business leaders with approximately 350 chapters. These counselling services provide services to over 1 million entrepreneurs and small business owners annually.

The SME sector is slowly and steadily emerging as an important sector in our country, according to a study made by the industry body ASSOCHAM.  The small and medium units in the country have contributed 40% towards creation of jobs after the economic slowdown, and 10 lakh jobs each year. The government has taken a lot of initiatives and programs to provide a conducive environment for the growth and development of this sector in the country.

Loan Guarantee Program The 7(a) Loan Guarantee Program is designed to help small

entrepreneurs start or expand their businesses. The program makes capital available to small businesses through bank and non-bank lending institutions. The Small Business Jobs Act of 2010 permanently increased the maximum size of these loans from $2 million to $5 million.

504 Fixed Asset Financing Program The 504 Fixed Asset Financing Program is administered through non-

profit Certified Development Companies throughout the country. This program provides funding for the purchase or construction of real estate and/or the purchase of business equipment/machinery. Of the total project costs, a lender must provide 50% of the financing, a Certified Development Company provides up to 40% of the financing through a 100% SBA-guaranteed debenture, and the applicant provides approximately 10% of the financing. Thorough due diligence of properties purchased through this program is required. Specific SBA Level I Environmental Site Assessment guidelines apply as all properties are treated as "high risk." The Small Business Jobs Act permanently increased the maximum size of these loans from $2 million to $5 million ($5.5 million for manufacturers).

The Small Business Jobs Act increased the maximum amount of SBA microloans from $35,000 to $50,000. These are offered through non-profit microloan financial intermediaries.

Small Business Investment Companies One of the first steps toward a professionally managed private equity and 

venture capital industry was the passage of the Small Business Investment Act of 1958. The 1958 Act officially allowed the SBA to license private "Small Business Investment Companies" (SBICs) to help with financing and managing small entrepreneurial businesses in the United States. Passage of the Act addressed concerns raised in a Federal Reserve Board report to Congress that concluded that a major gap existed in the capital markets for long-term funding for growth-oriented small businesses. Additionally, it was thought that fostering entrepreneurial companies would spur technological advances to compete with the Soviet Union. Facilitating the flow of capital through the economy up to the pioneering small concerns in order to stimulate the U.S. economy was and still is the main goal of the SBIC program today.[10]

 The passage of the Small Business Investment Act of 1958 by the federal government was an important incentive for would-be venture capital organizations. The act provided venture capital firms structured either as SBICs or Minority Enterprise Small Business Investment Companies (MESBICs) access to federal funds which could be leveraged at a ratio of up to 4:1 against privately raised investment funds. In 2005, in response to extensive losses incurred in connection with tech boom investments, the SBA decided to wind down its "Participating Securities" SBIC program, which had provided equity-like SBA backing for equity-oriented SBIC funds. The SBA's "Debenture" SBIC program, the original SBIC vehicle founded in 1958, is still very much alive and healthy and continues to license and contribute capital to SBIC funds. The SBIC program had it's highest ever year in Fiscal Year 2010

INDIAN SMEs AND THEIR UNIQUENESS IN THE COUNTRY

The singular contribution of SMEs is on account of their unique

characteristics .Their role in economic activity is manifest in both tangible

and intangible ways. If this contribution is to be sustained, then their

uniqueness needs to be nurtured in an overt and explicit manner. The Indian

experience has shown that it is possible to design targeted interventions, be

they area specific like in clusters or be they sector/Sub- sector or product

specific. Other countries, be they Asian or OCED, also have policies which

aim at similar support. The need of the hour is for us to learn from each

other , drawing upon experiences and identify “best practice policies”.

These in turn have to meet local conditions and circumstance. A “one size

fits all” approach will not work. Nevertheless , there can be no two

opinions about the priority that SME policies deserve for achieving the

socio justice, along with the individual’s aspirations. The Country has been witnessing the transformation from a centrally planned and highly directed economy to a market friendly economy and in pockets to e- economy .But the growth – oriented structural changes engineered through the economic reform agenda are yet to cover the small and medium enterprises (SME). Although Small and

Medium Enterprises (SMEs) are today recognized as a priority in almost all countries.

It is estimated that half to two -third of businesses , all over the world are SMEs .

They comprise a widely divergent spectrum of establishments, engaged in economic

activities ranging from engaged in economic from micro and rural enterprise to

modern industrial units using sophisticated technologies. Such enterprises exist in the

form of factories , workshops, trading and service organizations. Ownership patterns range from proprietorship and partnership to companies and co-operatives. Due to their contribution to their respective national economies, the importance nad emphasis on SMEs has been accentuated in the minds of policy makers. Planners

and the industry in the recent past . This is a consequence of the recognition that the

shift from agrarian to industrial and to post industrial knowledge based societies shall not be through the large industrial houses but through individual and small initiatives by visionaries the SMEs. SMEs may be defined in different ways by different countries .Most countries have adopted the benchmarks of employment . Some define them in terms of assets, a

few in terms of sales and yet others, in terms of shareholders fund. In a few countries , a hybrid definition is used such as employment as well as assets. In India , the term

SSI (Small Scale Industries) is used far more often than SME and is based upon investment in assets . Although definition differ across countries, they have one

thing in common ; the vast majority of SMEs are relatively small and over 95% of SMEs in Asia employ less than 100 people . Based on this , broad comparisons of the nature and role of SMEs is still possible even with differing definitions.

Characteristics of SMEs Born out of individual

initiatives &skills Greater operational

flexibility Low cost of production High propensity to adapt

technology High capacity to innovate

& export High employment

orientation Utilization of locally

available human & material resources

Reduction of regional imbalances

RELATIONSHIP TO CONCEPT

In this case the relationship between TOM MANAGHAN(PIZZA) and Entrepreneur. He is very hardworking men. Who faces lots of problems in his childhood, kept on custody. Who reach achieve the target and in entrepreneurship we need manage ownership. Small Business are the back bone of India and Global the big money. Tom traded his Volkswagen for his brother’s share. Tom has the idea to sell ( pizza) to channel members and become successful operator of the country’s largest home delivery pizza chain. Its a big established BRAND DOMINOS PIZZA.

THANK YOU…