How to become an Entrepreneur
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Transcript of How to become an Entrepreneur
The Unemployed persons having entrepreneurship orientation can decide to start a small scale enterprise .
Instead of subservient role of an employee/worker, a person can enjoy the sovereign status of being owner controlling the affairs of his enterprise.
For economic viability cover following aspects:
Existing demand in the domestic market, Existing demand in the export market, Aggregate existing demand in all markets, Volume of potential demand, The degree of import substitution Degree of substitution of an existing
product, Demand by big units for ancillary
products.
The most commonly chosen forms ofownership for SSI are-
(a) Sole proprietorship, (b) Family ownership, (c) Partnership, and (d) Private Limited Company.
Consider the following factors: The site is situated in one's native place. The site enjoys most or all incentives provided by
the Government. The site is near a market. The site is near the source of labour supply and raw
material. The site has modern infrastructural facilities.
The initial capital of a new venture comes from the following sources:
(a) Own Capital, (b) long term loans from friends
and relatives, and (c) term loans from banks and financial
institutions
Government research laboratories, R & D divisions of industries, individual consultants.
For ancillary units, it is provided by the main unit itself,
By Plant and Machinery Suppliers. Foreign technical collaboration, subject to
Govt. approval. National laboratories, CSIR and RDC.
Prepare project report as per loan format of term lending institution.
Can also take the help of consultant or Technical Consultancy Organization.
Covers Important Items like-sources of finance —long term and short term, availability of machinery and technical know-how, sources of labour and raw materials, market potential and overall profitability.
The project report should provide a "Birds-Eye-view" of the entire spectrum of activity.
Provisional (Temporary) Registration Certificate: Initially issued usually for a period of one year, and
subsequently renewed for two periods of 6 months each.
Provisional Registration entitles the new entrepreneur to apply for : .
Shed/ Developed plot in Industrial Estate/Industrial area.
Corporation/Municipalities for other licenses. power connection. Financial assistance from Banks and other
institutions. Permanent Registration Certificate:
To an industrial unit which has commenced production
Approval of production programmes District industries Centre in the particular district
For units functioning in places other than industrial Estates/approved development plots
Municipal corporation or panchayat
Manufacture of Drugs and cosmetics State Drug controller
Manufacture of fruit & vegetable based products license under FPO (Fruit Product Order)
Deputy Director-Food and vegetable processing, State Ministry of Agriculture.
When units employ 10 workers or more (if power is not used) approval under Factories Act
Chief Inspector of Factories.
Industries using water and involving effluent disposal gaseous waste, etc
The district Health Officer / Director of public Health
Registration under State/ central Sale Tax Act-
Local joint Commercial Tax Officer.
Registration under Central Excise Act
Superintendent of Central Excise
Power Connection Electricity board of state
Payment of Income-tax Assistant Commissioner, Income Tax
Registration of Partnership Firm/Deed
Inspector general of Registration.
For units covered under Explosives & Fire Arms Act
Chief Controller of Ex-plosives
For pollution control clearance- Pollution control Board of state
Registration DIC of respective district, Directorate of Industries
Technical ConsultancySISI (Small Industries service Institute), DIC, TCO
(Technical Consultancy Organization)
Training SISI, TCO
Allotment of developed plot/ shed
SIDCO (State Industries development corporation)
Supply of Machinery on hire or purchase basis
NSIC (National small industries corp.)
Raw Material SIDCO, NSIC through DIC
Finance Finance Institutions, SBI, Director of Industries and Commerce of state
Manufacturing License Local bodies / DIC
Khadi and Village industries setting
Kadhi and Village industries commission
ISI Mark BIS (Bureau of Indian Standards)
Marketing NSIC, SIDCO, SISI
Patents Registration Deputy controller of Patents of the state
Trade Marks Registration Deputy Registrar Trade Marks of State
Licence for special category items
Director General of Technical Development, New Delhi
Partnership Deed Inspector General of Registration
Company Registration Registrar, Company law board, of the state
Registration Under FPO Dy. Director F & VP of State
Central Excise Superintendent of central excise
Pollution control rules clearance Pollution control board, of state
Foreign Collabration Foreign Collaborations cell, Ministry of Industry, New Delhi
Associations Related to Small Scale Industries
FASII (Federation of Association of Small Scale Industries of India), Small Industries and Business Entrepreneurs Association, District Industries Association, Association of Specific Industry Groups.