PROGRAM ON ENTREPRENEURSHIPCOURSE OUTLINE

• Session 1. INTRODUCTION OF ALL IN MBA CLASS !!! Self Entrepreneurship story !!! Nature and development of Entrepreneurship Entrepreneurship Audit The Value chain patterns The three Key Assets The top ten enterprises in India The top ten global companies • Session 2. ENTREPRENEURSHIP Definition & Structure Entrepreneurial Culture Theories of Entrepreneurship Classification and type of Entrepreneurs Entrepreneurial traits and growth of Entrepreneurs Nature and importance of Entrepreneurs Entrepreneur versus Professional Managers Development of Women Entrepreneurs

SEARCH FOR A BUSINESS IDEA

• PRODUCT PLANNING AND DEVELOPMENT STRATEGY

EXISTING PRODUCT

NEW PRODUCT

EXISTING MARKETS

MARKET PENETRATION

PRODUCT DEVELOPMENT

NEW MARKET DEVELOPMENT

DIVERSIFICATION

PRODUCT PLANNING AND DEVELOPMENT PROCESSCONCEPT

CONCEPT STAGE

EVALUATE

LAB DEVELOP

MENT

PRODUCT DEVELOPMENT

STAGE

EVALUATE

PILOT PRODUCTION RUN

IDEA STAGE

EVALUATE

IDEA

TESTMARKETING STAGE

EVALUATE

SEMICOMMERCIAL PLAN TRIALS

COMMERCIAL STAGE

INTRODUCTION

GROWTH

MATURITY

DEDECLINE

PHASES OF PROJECT FORMULATION

CONCEPTION OF A NEW IDEA

ANALYSIS OF RELATED ASPECTS

FORMULATION OF A PROJECT

DESIGN OF A PROJECT

SEQUENTIAL STAGES OF PROJECT FORMULATION

PRE-INVESTMENT

COST BENEFITSOCIAL FINANCE

PROJECT

DESIGN NETWORK FEASIBILITY TECHNO INPUT

STRATEGY PROJECT DESIGN

SEQUENTIAL NARRATION PROJECT LOGIC

GRAPHIC PRESENTATION NETWORK

RELATIONSHIP BETWEEN PROJECT DESIGN AND NETWORK

BASIC COMPONENTS OF A PROJECT

OBJECTIVE

ORGANISATION

RATE OF RETURN

SOCIAL BENEFITS SIZE OF PROJECT

CONCEPTUALISING THE PROJECT

Does your Product have a Global Market

Have you checked it

out

Have you factored the export duty

Is your viable project viable?Have you set

a global target data

Start Financing

Redesign the Project

Abort the Project

Start the

Project

PHASES OF PROJECT MANAGEMENT

START IDENTIFICATION FORMULATION APPRAISAL

MANAGEMENTSELECTION IMPLEMENTATION

PROJECT DESIGN AND NETWORK ANALYSIS

STRATEGY PROJECT DESIGN

SEQUENTIAL NARRATION PROJECT LOGIC

GRAPHICAL PRESENTATION NETWORK LOGIC

ASPECTS OF PROJECT APPRAISAL

PROJECT APPRAISAL

TECHNICALFINANCIAL COMMERCIAL ECONOMIC MANAGERIAL

LEGAL SOCIAL ECOLOGICAL ORGANISATIONAL

ECONOMIC ASPECTS OF A PROJECT

ECONOMIC

ASPECTS

INCREASED OUTPUT

BETTER SERVICES

INCREASED EMPLOYMENT

HIGHER EARNINGS

INCREASED NATIONAL INCOME

ORGANISATIONAL ASPECTSOF A PROJECT

ORGANISATION

SRTUCTRE ORGANISATION RECRUITMENT TRAINING

FINANCIAL ASPECTS OF PROJECT APPRAISAL

FINANCIALASPECTS

FINANCIAL SOUNDNESS

EFFICIENT OPERTION

COST OF PRODUCTION

RETURN OF INVESTMENT

CHARACTERISTICS OF AN ENTREPRENEUR SESSION 2

ENTREPRENEUR

COMMMUNICATION SKILLS

TECHNICAL KNOWLEDGE

INNOVATION

BUSINESS SECRECY

CLEAR OBJECTIVE

EMOTIONAL STABILITY

CREATIVITY

PUBLIC RELATIONS

ORGANISATION SKILLS

QUALITIES OF A SUCCESSFUL ENTREPRENEUR SESSION 3

INSTINCT VISION KNOWLEDGE RISKTAKING APTITUDE

PRIDE WILL POWER FLEXIBILITY CREATIVITY ORGANISING

TACTFUL VALUESSELF

CONFIDENCE DYNAMISM CHANGE

FLOW CHART OF AN INDUSTRIAL ENTREPRENEUR SESSION 2

GENERATES PROFITS

MARKETING

TECHNICAL KNOW HOW

RISK TAKING

INITIAL CAPITAL & FINANCE

INNOVATION

PROFITABLE INVESTMENT

INDUSTRIAL LICENCE

ENTREPRENEUR

ENTREPRENEURIAL ENVIRONMENTENVIRONMENT

POLITITICAL ECONOMIC CULTURAL LEGAL TECHNOLOGICAL

ATMOSPHERE POLICIES VALUES RULES PRODUCTIVITY

CHARECTERISTICS OF ENTREPRENEURSHIP SESSION 2

ENTREPRENEURSHIP

DECISIONMAKING

RISK TAKING

INNOVATION

ORGANISATION

SKILLFUL L MANAGEMENT

ACCEPTING CHALLENGES

KEY ELEMENTS OF ENTREPRENEUR SESSION 1

RISK – TAKING INNOVATION

ETHICS OPERATIONAL

EXCELLENCE VALUES

CHARACTER VISION ORGANISING SKILL

HOW TO PREPARE A BUSINESS PLAN SESSION 12

• OBJECTIVE: BUSINESS IDEA : WHAT EXACTLY YOU WANT TO DO : BRAIN STORMING SESSION:• DEFINE THE OBJECTIVE AS A SPECIFIC OBJECTIVE IN A WRITTEN DOWN FORM ONLY.• MARKET SEARCH FOR THE PRODUCT AFTER PRODUCT IDENTIFICATION AND SEGMENTATION.• DEVELOP THE MARKETING PLAN BASED ON THE FAVORABLE AND UNFAVORABLE VARIABLES.• DEVELOP THE STRATEGY FOR OBTAINING THE START UP CAPITAL ALSO CALLED SEED CAPITAL• DEVELOP A STRATEGIC PLAN AS TO WHERE YOU WANT TO BE IN 1/2/3/4/5 YEARS !!!• DEVELOP A PLAN AS TO WHEN YOU WANT TO REACH BREAK EVEN STATUS !!!• SPLIT THE COSTING OF THE PRODUCT INTO COMPONENTS TO ARRIVE AT COST/PROFIT• DEVELOP THE FINANCIAL PLAN TO OBTAINING THE NECESSARY FINANCING FOR PROJECT• DECIDE ON THE LOCATION OF YOUR BUSINESS LOCATION !!! LOCATION !!! LOCATION !!!• DEVELOP A PRODUCTION PLAN IF YOU WANT TO PRODUCE YOURSELF OR OUTSOURCE.• DEVELOP A MANPOWER/WOMAN POWER PLAN AS TO THE INITIAL NUMBER OF EMPLOYEES.• DEVELOP A MARKETING AND ADVERTISING STRATEGY FOR INTIAL LAUNCH OF PRODUCT.• PREPARE THE PROJECT REPORT USING ALL THE ABOVE POINTS IN YOUR REPORT• OBTAIN THE FINANCING FROM THE BANK AND THE INSTITUTIONS THAT HELP YOU !!!!• THANK YOU AND GOOD LUCK TO BECOME AN ENTREPRENEUR !!! DONT FORGET ATLEAST• TWO YEARS WORK EXPERIENCE IN THE PRODUCT/SERVICE YOU ARE PLANNING TO START TD !!!

ENTREPRENEURIAL STRUCTURE SESSION 1

STRUCTURE

VALUES EXTERNAL ENVIRONMENT

SKILLS

PEOPLE TECHNOLOGY

BASICS OF AN ENTREPRENEUR SESSION 1

ORGANISATION

MANAGEMENTGROWTH

VISION

SKILL

URGE INNOVATION

RISK

ENTERPRISE

CONCEPT OF ENTREPRENEURSHIP SESSION 1

ENTREPRENEURSHIP ENTERPRISE

OBJECT

ENTREPRENEUR

PERSON PROCESS OF ACTION

FAMILY BUSINESS SESSION 1 0 20 40 60 80 100TATA

RELIANCE

ITC

H.LEVER FAMILY BUSINESS ACCOUNT FOR ABOUT 70% OF THE TOTAL SALES AND NET PROFITS OF THE BIGGEST 250 PRIVATE SECTOR COMPANIES BIRLA SOURCE: CENTRE FOR MONITORING INDIAN ECONOMY

THAPAR

INNOVATION CENTRE SESSION 2

INVENTORS

ENTREPRENEURS

GOVT.EMPLOYEES

STUDENTS&FACULTY

LICENSE TO ANOTHER COMPANY

NEW CO. IN INCUBATION CENTRE

NEW CO. IN WORKPLACE

NEW CO. IN BUSINESS

TECHNOLOGICAL EVALUATION

ENTREPRENEURIAL ASSESMENT

PRODUCT DEVELOPMENTFEASIBILITY STUDIES

METHODS OF MARKETING SESSION 8

• Entrepreneurs cannot compete with a new brand of detergent or soap with HL !!!• Entrepreneurs need to produce a product for the benefit of the consumer with good ASS !!• Marketing by Kotler Marketing is an organization function to market and sell a product to a consumer for a profit for the benefit of the company and its shareholders !!!• SALIENT FEATURES OF MARKETING:1Creative function to promote business & employment. 2.Co-ordinates Finance, Production & HR !!! 3. Emphasis on what the customer needs and wants 4. Process of exchange between Seller & Buyer 5. Social benefits of increasing employment !!• DIRECT MARKETING: 1. Business to Business Marketing Ex Wholesaler to Retailer 2. Retailer to consumer or end user Ex Retail Stores 3. Company directly to consumer-Telemarketing !! 4. Internet Marketing !!! The future of Marketing !!!

METHODS OF MARKETING SESSION 8

TRADITIONAL MARKETINGSELLING AT ANY COST TO THE CONSUMER !!!

PROFIT IS THE ONLY MOTIVE FOR SALES !!!

APPROACH IS PRODUCT ORIENTED !!!!

DOES NOT FIND ANY RELATIONSHIP WITHOTHER MARKETING FUNCTIONS !!!

NO SOCIAL RESPONSIBILITY !!!

NO RESEARCH AND DEVELOPMENT !!!

MODERN MARKETINGSELLING TO SATISFY CUSTOMER NEEDS !!!

PROFIT MOTIVE IS SECOND TO SATISFACTION!!

APPROACH IS CONSUMER ORIENTED !!!

TAKES INTO ACCOUNT RELATIONSHIP WITH ALL FUNCTIONS OF MARKETING !!!!

SATISFACTION OF CONSUMERS AS A SOCIALRESPONSIBILITY AND PAYS TAXES AND TAKESPART IN WELFARE PROGRAMS !!!R&D IS THE BASIS OF MARKETING WITH MR !!

METHODS OF MARKETING SESSION 8

• THE PRINCIPAL MARKETING FUNCTIONS:• MARKET INFORMATION AND RESEARCH : The basis of all Marketing functions !!!

• PRODUCT PLANNING: Determine and develop the product mix to match all specifications of packaging, pricing, service and after sales service !!!

• ADVERTISING & PROMOTION: Press, TV, Radio, Hoardings, Posters, Point of Sale & Internet !!

• SALES & DISTRIBUTION: Selling, Distribution, Warehousing, Transportation, Merchandising !!

• The Marketing Mix is a combination of all the above functions to develop an effective Marketing Plan and Strategy for the Entrepreneur to market and sell the product !!!

• The Success of the Marketing in terms of Sales will be a measure of success of the Entrepreneur.

METHODS OF MARKETING SESSION 8

• MARKET SEGMENTATION: Decide which segment of market you want to target !!!!!!• GEOGRAPHIC VARIABLES: Product determines the market as per region, state, nation !!!• DEMOGRAPHIC VARIABLES: Sex, age, family, size, occupation, religion, national origin !!!!• PSYCHOGRAPHIC VARIABLES: These variables depend on social status, life style & personality • BEHAVIORABLE VARIABLES: Consumers differ in knowledge, tastes, attitude and response !!• MARKET POSITIONING: Process of distinguishing a product from competition !!!!• THREE LOGICAL STEPS FOR MARKET POSITIONING:• 1. ANALYZE MARKET OPPORTUNITIES FOR YOUR COMPANY !!!!• 2.SELECT A MARKET AND TARGET A SPECIFIC SUB GROUP !!!!!• 3.DEVISIVE A COMPETITIVE STRATEGY – Basically a SWOT analysis and KITA for competition !!• THE RIGHT TIME APPROACH !!! 1. Product Launch- To be launched after MR & Advertising !!! 2. Promotions- Advertising for Product promotions !!!! 3. Timing between Advertising and launching the product !!! 4. Exit the market with a new product to confuse competition• MARKET RESEARCH: It is the basis of all Marketing activities and don’t do anything without it

MARKETING CHANNELS SESSION 8• CONCEPT OF MARKETING CHANNEL: Organized network of agencies and institutions !!!• PRODUCER- WHOLESALERS-RETAILERS-END CONSUMERS WHO USE THE PRODUCT/SERVICE !• CONNECTING LINK: Movement of Goods between POP !! and POC =Point of Consumption !!• DISTRIBUTION CHANNELS: Route through which goods flow from producer to consumer !!• DIRECT CHANNEL: No Middleman and the goods pass directly from producer to consumer.• INDIRECT CHANNEL: Middleman and Agent involved between Manufacturer and consumer.• IMPORTANCE OF MARKETING CHANNEL: Effective way for goods to reach consumer !!!• DIFFERENT MARKETING CHANNELS: 1. Manufacturer to Consumer-shortest channel !! 2. Mfg-Retailer-Consumer Ex. Supermarket !! 3. Mfg-Wholesaler-Retailer-Consumer Ex drugs !!! 4. Mfg-Agent-Wholesaler-Retailer-Consumer Voltas !! 5. Mfg-Wholesaler- Consumer Ex Hospitals ,Education !!• CONSUMER GOODS: 70% use the traditional wholesale outlets for some of their products !! 21% use wholesalers, 2% directly to consumer 18% through retailers.• INDUSTRIAL GOODS: 75% use wholesalers only 16% use direct selling !!!

MARKETING CHANNELS SESSION 8• CHOICE OF CHANNELS: PRODUCT: 1.Product is perishable so few channels of distribution. 2. Longer channels for standardized goods Ex Automobile 3. Customer made product-direct Ex Computer by Dell !! 4. Technical Product direct to consumer-Cell phone 5. Jewelry sold directly to Retailer /Consumer High Value !!• MARKET: 1. Consumer goods market Retailers are needed but not so for industrial markets 2. Market is large we have many channels and small market for direct selling !! 3. Direct selling for highly concentrated marketing but channels for big markets !! • BROKERS: They bring Buyers and Seller together, negotiate terms of sale and get commision• COMMISSION AGENT: Like a Broker but has possession of the goods& sales commission.• BANKS&INSURANCE COs: Banks provide loans & insurance cos provide insurance for goods.• AUCTIONEERS: Arrange for Auction of goods and work on a percentage of sales !!!• COMMON CARRIERS: Responsible for movement of goods from one place to another !!!!• MARKETING IS THE MOST IMPORTANT FUNCTION FOR A BUSINESS TO SUCCEED !!!!!!!!!!!

MARKETING INSTITUTIONS AND ASSISTANCE SESSION 9

• MARKETING depends on Marketing Assistance from Institutions to be successful !!!!• NATIONAL SMALL INDUSTRIES CORP. & STATE SMALL INDUSTRIES CORP: They assist small scale industries sell their products to the Government • CENTRAL GOVERNMENT STORES PURCHASE PROGRAM: Central Govt. provides an outlet for the production of industrial units in the country with incentives and tax benefits !!!• RESERVATION OF ITEMS FOREXCLUSIVE PURCHASE FROM SMALL SCALE SECTOR:• 16 Products have been reserved to be produced for the Defence Department !!!• Now 40% have been reserved !!! 50% !!! Research has to be done to find the items !!!• TRADE CENTERS: Govt of India has trade centers to meet the marketing needs of SSS !!!• EXPORT PROMOTION COUNCILS: 11 EPCs perform both advisory and executive functions.• IIFT: Training in international trade by research, area surveys, market surveys for FT !!!• COMMODITY BOARDS: 5 for Rubber, Coffee, Tea, Tobacco & Spices for production & export.!!• EXPORT INSPECTION COUNCIL(EIC): Responsible for Q/C of items to be exported !!!• INDIAN INSTITUTE OF PACKAGING(IIP):Research into raw materials for the packaging industry• EXPORT CREDIT GUARANTEE CORP OF INDIA(ECGC): Provides insurance for Exporters/Credit

MARKETING INSTITUTIONS AND ASSISTANCE SESSION 9

• EXPORT PROCESSING ZONES(EPZ): India has 7 EPZ SEEPZ in Mumbai for Gems & jewelry !!• EXPORT ORIENTED UNITS(EOU): Compliments the EPZ !! 502 units are in operation !!!• EXPORT PROMOTION INDUSTRIAL PARK SHEME(EPIP): created for export oriented items !!!• EXPORT HOUSES,TRADING HOUSES, STAR TRADING HOUSES : Export oriented !!!!• JUTE CORP. OF INDIA: Export, import and internal marketing and export of jute products !!!• STATE TRADING CORP OF INDIA(STC): Explore new markets to increase the exports !!!• PROJECTS & EQUIPMENT CORP. OF INDIA(PEC): Taken over the Railway Engg Div from STC !• HANDICRAFT& HANDLOOM EXPORTS CORP OF INDIA(HHEC): new markets for Handicraft !!• CASHEW CORP. OF INDIA(CCI): Subsidiary of STC to stabilize the import of cashew !!!• MMTC : To increase the exports of Indian minerals and import of raw materials for units here.• TEA TRADING CORP. OF INDIA(TTCI): To create a stable export for Indian packet/instant tea !!• THE SPICES TRADING CORP.LTD(STCL): To domestic and international trade in Spices !!!• SMALL INDUSTRIES DEVELOPMENT ORG.(SIDO): Has promotional activities in various areas• WORLD TRADE ORGANIZATION(WTO): is the legal and foundation of multilateral trading !!!• NAFTA: Free trade between US, Canada, Mexico for 15 years from 1989 No taxes !!!!• FREE AMERICAN FREE TRADE AREA OF THE AMERICAS(FTAA): Free trade with all Americas !!!

SETTING QUALITY STANDARDS SESSION 9

• Liberalization of the industrial policy moved the economy into a market driven economy.• Quality Performance and Standards are very important for India to compete in the world.• ISO- Quality is total features of product/service to satisfy the implied needs of customer.• TOTAL QUALITY CONTROL (TQC): Quality Control is an integral part of Management !!! Quality is no accident planned with no short cuts !!! Use problems as sources of improvement in quality !!! Quality is conformance to requirements and specs. Quality is achieved by prevention and not by appraisal Quality is zero defects and measured by non-conformance• STANDARDIZATION: Standardization and Quality Control are vital factors for industry• ADVANTAGES OF STANDARDIZATION: Provides economic and technical good solutions !! Optimum utilization of available raw materials.!!! Defining the quality levels of the product !!!! Providing basis for Quality Control for the product !!!

SETTING QUALITY STANDARDS SESSION 9

• INTERNATIONAL SATISFACTION: ISO 9000 is the International Standard for Quality Systems. IS 14000 – The Indian Standard EN 29000- The European Community Standard BS- 5750 The UK Standard

• ISO 9001- Model for Quality Assurance in Design/development/production/instal/servicing.• ISO 9002- Model for Quality Assurance in Production and installation.• IS0 9003- Model for Quality Assurance in Final Inspection • ISO 9004-1 Quality Management and Quality System Elements• ISO 9004-2 Quality Management and Quality System guidelines for Services• ISO 9004-3 Guidelines for Processed Materials.• ISO 9004-4 Guidelines for Quality Improvement• ISO- 9004-5 Guidelines for Quality Plans• ISO-9004-6 Guidelines for Quality Assurance for Project Management• ISO-9004-7 Guidelines for Configuration Management

SETTING QUALITY STANDARDS SESSION 9

• THE ELEMENTS OF THE QUALITY SYSTEM:• MANAGEMENT RESPONSIBILITY: To have a documented system of quality assurance.• QUALITY SYSTEM: To have a documented Quality System for all aspects of the Business.• CONTRACT REVIEW: To meet Customers stated requirements.• DESIGN CONTROL: To control and verify that the design of the product meets requirements.• DOCUMENT CONTROL: To ensure that the Staff doing the work have the right documents.• PURCHASING & SUB CONTRACTING: To ensure conformity of all quality requirements• PURCHASING SUPPLIES PRODUCT: To store the equipment belonging to customer properly.• PRODUCT IDENTIFICATION & TRACEABILITY: To identify and trace the product at all times.• PROCESS CONTROL: All work must be carried out under controlled conditions.• INSPECTION & TESTING: Product not to be shipped unless final inspection tests done• INSPECTION & TESTING EQUIPMENT: To ensure that the Testing Equipment is proper !!!• CONTROL OF A NON-CONFORMING PRODUCT: Separate defective products from good ones !• QUALITY RECORDS: All Quality records to be maintained for all aspects of the business• TRAINING: To ensure that competent people are trained to carry out the Q/C functions.

SETTING QUALITY STANDARDS SESSION 9

• WHOM DOES ISO-9000 HELP: Companies Marketing & Selling to European Markets !!! Vendors supplying to Companies that demand ISO 9000 Companies whose competitors are seeking this certification. Companies with geographical and global operations Companies whose parental companies need this certification.

• WHOM ISO DOES NOT HELP: Companies that see ISO-9000 certification as an end itself Companies that already have a TQM system in place. Companies that follow other world wide Systems Companies that have quality problems from HR problems Companies that are Struggling to survive in todays market !!!

• STANDARDIZATION IN INDIA: All Large, Medium & Small Industries conform to Standards.

BREAKEVEN ANALYSIS SESSION 5• BREAK EVEN POINT-Establishes level of out put to break evenly cost & revenue for profit.• BEP = Fixed Cost÷ Total contribution X Total amount of Sales• ( Total Sales-Total Variable costs= Total Contribution )• Example: Sales 1000 units Selling price per unit 60 Variable cost per unit 40 Fixed cost 1500• BEP(UNIT VOLUME) 1500÷20 (60-40) = 75 units• BEP in terms of sales 75x 60= 4500• BEP (in terms of capacity utilization)= Total fixed costs divided by TC X Production of units• Example if the unit is to achieve a capital utilization of 40% 45% 60% 80% BEP will be 80%• CALCULATION OF BEP in physical terms BEP= FC ÷ Contribution (SP-VC)• Example FC= 1,000,000 VC= Rs 2 per unit,SP=Rs 4 per unit Max capacity=1,00,000• BEP= 1,00,000 divided by 2(4-2) = 50,000 units= 50 % capacity• NET PROFIT RATIO= NET PROFIT ÷ SALES X 100• CAPITAL TURNOVER RATIO: SALES ÷ Net capital employed X 100• Multiply both to get ROI • Example Sales 5,000 Capital 20,00,000,Profit 5,00,000 5,00,000 ÷ 50,00,000X 50,00,000 divide by 20,00,00 X

100 or 10%x2.5=25%

SETTING UP & LOCATION OF AN ENTERPRISE SESSION 11

• Small Scale industry and Entrepreneurs play an important role in the growth of an economy!!• After 7th Plan SSI accounted for 55% of mfg sector & 40% of total exports employing 245 lakh.• LOCATION ! LOCATION ! LOCATION ! Is very important in the setting up of an enterprise!!• STEPS IN ENTERPRISE LOCATION 1. Selection of the region. 2. Selection of the community 3. Selection of the optimum and exact site.• FACTORS AFFECTING LOCATION 1. Availability of raw materials, power labor & govt. policy 2. Banking and Finance and Research facilities available. 3. Religious and Education institutions in the area. 4. Price of land and disposal of waste and other amenities. 5. Technical know how and State Assistance in all areas.• SELECTING GENERAL AREA 1. Availability of raw materials and skilled/unskilled labor. 2. Nearness to the source of Power and Water. 3. Nuisance problems of noise, odor or smog 4. Suitability of climate. Ex Computers Bangalore.

LOCATION OF AN ENTERPRISE SESSION 11

• SELECTION OF ACTUAL SITE SITE A SITE B SITE C• FIXED CAPITAL• Land Acquisition cost• Building Construction cost• Equipment installation cost

• COST OF PRODUCTION AND DISTRIBUTION• MATERIALS COST• Direct Labor cost & indirect Labor cost

• OVERHEADS:• Factory insurance & taxes• Factory depreciation• Office salaries• Selling overheads• Distribution overheads• TOTAL

LOCATION OF AN ENTERPRISE SESSION 11

• STATE INCENTIVES: Feasibility Study- 75% of cost of preparation of report-max Rs 5000 for small scale industries, 50,000 for medium & large.

• INVESTMENT SUBSIDY: 10% of fixed assets upto 5 lakh for small scale & 10 lakhs for M&L

• DEVELOPMENT LOAN: 25% of fixed assets for small scale and 50 lakhs for M&L

• WORKING CAPITAL LOAN: 25% of fixed assets for small scale and upto 50 Lakhs for M&L

• PROCUREMENT OF KNOW HOW: Full upto Rs 25,000 for SCI and ceiling of I lakh for M&L

• STAMP DUTY EXEMPTION: Exemption of Stamp duty for agreements with KSFC for both !!

• SUBSIDY ON HOUSING: Rs 1500 per house not less than 300 sq ft for both SSI & M&L

METHODS OF TRAINING SESSION 3• INDIVIDUAL INSTRUCTION- A single individual selected to be taught a complicated skill Pilot !! • GROUP INSTRUCTION- This method for a group where general instructions are to be given.

• LECTURE METHOD- Instructor talks on theory followed by practice by the trainees

• DEMONSTRATION METHOD- Instructor performs followed by performance by trainees

• WRITTEN INSTRUCTION METHOD- Training is given with future written reference by trainees.

• CONFERENCE METHOD- Conferences and Workshops are organized to impart training

• MEETINGS METHOD- Meetings for groups to exchange ideas to discuss and get trained.

STAFF TRAINING SESSION 3

STAFF TRAINING

BASIC KNOWLEDGE

SKILLSEFFECTIVE

VISIONPRODUCTIVITY

GERMAN AND JAPANESE APPROACHSESSION 3

• GERMAN EXPERIENCE:• Broad based training followed by specialization resulted in reduction of trades• Development of multi-craft skills and unique training modules .• Industry lead and role of initiative in restructuring and training.• Profile of workforce changed leading to more skilled workers• Retraining programs for skills improvement of the existing work force• Overall personality development of the work force to become entrepreneurs

• JAPANESE APPROACH- Opposite of German approach !!!• Little emphasis on formalized training but more emphasis on the job training !!!• Knowledge required to perform a set of activities efficiently and effectively• Skills refer to the technics required to translate knowledge into action and practice• Ability refers to the qualities required for the performance of the attained skill !!• AMERICAN APPROACH- Use a combination of the above two with initial formalized

theoretical knowledge followed by practical and emphasis on the job training !!!!

ENTREPREUNERSHIP DEVELOPMENT ORGANIZATIONS SESSION 3

• STATE BANK OF INDIA

• IDB- ENTREPREUNEURIAL MOTIVATION TRAINING CENTER IN NORTH EAST REGION

• XAVIER INSTITUTE OF SOCIAL SERVICES- RANCHI

• CENTER FOR ENTREPRENEURSHIP DEVELOPMENT-AHMEDABAD

• STATE FINANCIAL CORPORATIONS

• CENTER FOR ENTREPRENEURSHIP DEVELOPMENT- HUBLI

• SMALL INDUSTRIES EXTENSION TRAINING INSTITUTE- HYDERABAD

INSTITUTIONS TO HELP ENTREPRENEURS SESSION 3

• FOCUS OF EDP: To identify potential Entrepreneurs to train them with the knowledge, skills and attitude required to become a successful entrepreneur !!!

• ENTREPRENEURSHIP DEVELOPMENT PROGRAM ORGANIZATIONS• Entrepreneurship Development Institute of India (EDI)- Ahmedabad-National Resource Ctr.• National Institute for Entrepreneurship and Small Business Development (NIESBUD)-Delhi• Rural Entrepreneurship Development Institute (RED) at Ranchi in 1983• Most States and Management Institutes have organizations and courses for entrepreneurs.• Management Development Institute-Gurgaon Delhi- a premier institute of India• Science and Technology Entrepreneurship Parks(STEPS) with the help for many universities.• Center for Entrepreneurship Development(CED),Ahmedabad by State Government and Cos• Xavier Institute of Social Service-Ranchi conducts Entrepreneurial training programs.• Role of Development Banks-Providing special capital and seed capital to start the project• SBI- 1.Liberalized financing 75%, 2.100% for technically qualified 3. Equity Fund Scheme for interest free loan to meet the equity gap of 1 lakh• Role of NAYE-National Alliance of Young Entrepreneurs-development of Women Entrepreneurs.• AWAKE-Association of Women Entrepreneurs of Karnataka• WIMA-Women Entrepreneurs Association of Maharastra• SWWA-Self employed Women Association

TEACHERS GUIDE TO ENTREPRENEURSHIP SESSION 3

• COMPILED BY THE UNIVERSITY OF MARYLAND• INTRODUCTION TO BUSINESS AND ECONOMICS

Global economy ,wealth distribution and relationship between government and industry• Regulation in a free market economy with tax structure stocks bonds and banks.• BASIC CONCEPTS OF ENTREPRENEURSHIP• Dynamics of change with opportunities and resources• Entrepreneurial view point with risk/reward factors and case histories• VENTURING• Innovation, Objective analysis and creation of a team• FINANCIAL PLANNING FOR NEW VENTURES• Financial Statements and Financial projections to determine funding requirements.• Debt and equity financing for valuation of the company• WINNING BUSINESS PLAN• Business plan objectives with a guide to a preparation of a sound business plan• Presentation of business plan for financing with operations plan from business plan• RAISING CAPITAL• Fundraising tools with Financiers considerations• Sources of funding equity and debt capital to negotiate the deal !!!• ORGANIZATION FOR SUCCESS• Company name with Board of Directors by structuring the company to attract outstanding key employees to create infrastructure without bureaucracy !!!

STRATEGY FOR ENTREPRENEURSHP DEVELOPMENT SESSION 3

• The following strategies of Entrepreneurship is suggested for India• 1. Public Entrepreneurship for those industries that private enterprise is not attracted Ex

Banks, Airlines, R&D wing of PSU to be streamlined to compete with private sector.• 2.All possible efforts required to motivate the individual to become an Entrepreneur EX Tata• 3.Need to develop Management Education to supplement their Entrepreneurship qualities.• 4. Programs and incentives for Entrepreneurs to start business in back ward areas• 5.Develop Entrepreneurial talent in India, In Japan, they come from the underprivileged class• 6. Economic administration by the States to be more effective for the Entrepreneurs.• 7. Greater emphasis on research relating to domestic technics against foreign collaboration.• 8. Financial institutions should lend easily and make financing Entrepreneur friendly• 9. New categories of Entrepreneurs like NRIs, Women, handicapped to be encouraged.• 10 Management Institutes should have a cell for development of Entrepreneurs EX IIMA• 11 Successful Professional Managers to be encouraged to become Entrepreneurs• 12 Workshops and Seminars on Entrepreneurship to be conducted for awareness !!!

A-Z QUALITIES OF AN ENTREPRENEURBY TREVOR DEVAS SESSION 3

A= Ambition B= Believer C= Creative D= Determined E= Enthusiastic F= Fearless G=God fearing H= High Esteem I= Independent J= Just K= Kindness L= Leader M= Motivator N= No politics O=Organizer P=Planner Q= Questioning R= Reliable S= Studious T= Team work U= United V= Voice W= Workalcoholic X= Execution Y= Youthful Z= Zeal

ENTREPRENEURIAL DEVELOPMENTSESSION 3

APPROACHES TO ENTREPRENEURSHIP DEVELOPMENT1. Develop and arrange the course content by analyzing needs and stating outcomes2. Choose the appropriate training methods3. Consider the topics, nature of learning ,trainee population, trainers and the time factor4. Achieve training objectives

TRAINING OF ENTREPRENEURS• Achievement Motivation sessions to induce positive behavior and learning from feedback• Moderate risk taking is taught to take calculated risks based on all factors.• Problem Solving attitude to solve the problems internally only-no consultants !!!!• Develop the ability to define and set goals in life• Train to learn by ones own actions and behavior based on experience• Teach Management skills and technics to deal with the management problems• Overall objective of the training program is to make the entrepreneur more professional

ENTREPRENEUR VS PROFESSIONAL MANAGERS SESSION 3

• Entrepreneurs and Professional Managers are two sides of a coin• PROFESSIONAL MANAGEMENT 1. Body of Knowledge-Management of knowledge to enter the world of entrepreneurship 2. Management Tools- Tools of Management in specific functional areas 3. Specialization- Growing need to appoint specialists in each functional area 4. Separate Discipline-Management Studies is considered a separate discipline 5. Code of Conduct- Business Management is a social institution, responsible to customers, employees and the society. 6. Professional Association- Business Management Associations have been formed to have ethics in business and project a good image of the managerial profession.• ENTREPRENEURIAL MANAGEMENT 1. Creative and innovative instinct from childhood- dare to be different 2. Calculated risk taking attitude- venture into the unknown 3. Work with borrowed or very little capital 4. Pride of ownership of the business 5. No pay check to look forward to every month !!! 6. You are your own boss- you decide whatever you want to do-freedom & independence !!!

PROCESS OF ENTREPRENEURIAL DEVELOPMENT SESSION 3

• ENTREPRENEURIAL DEVELOPMENT PROGRAM EDP-Designed to help a person to strengthen and meet his entrepreneurial motive to acquire skills and capabilities to play his role well.• EDP meant for first generation entrepreneurs who need help to become successful.• MISCONCEPTIONS ABOUT EDP• Joining an EDP is a privilege, many programs give false hopes about entrepreneurship !!• EDP means only training potential entrepreneurs through class room training• Higher the number, better the EDP- Qualitative is better than quantitative !!• EDP Success is the Sole Responsibility of the Trainer-Motivator• Potential Entrepreneurs think that they will be successful by attending one EDP!!• Entrepreneurship is a process of development of an individual only• All cannot become Entrepreneurs since the success rate is low !!!• Professional Managers can become Entrepreneurs and vice versa• Entrepreneurship begins with childhood and can only be developed• EDP has become MDP- Executives have become Management !!!

SIMILARITIES BETWEEN MANAGERS AND ENTREPRENEURS SESSION 3

ENTREPRENEURS• Produce results-Long term• Produce results through people-

deal with people who can conceptualize like them

• Take decisions-strategic involving expansion ,diversification

• To co operate under constraints-import policy, licensing etc.

• Follow sound principles of Management-macro aspects like social responsibilty equal opportunity to government policies

MANAGERS• Short and medium term• Handle people in daily

management tasks• Operational and administrative

decisions only-short & medium term

• Constraints are within the organization, plant, labor etc

• Principles are only related to the company like delegation, accountability etc

DISTINCTIVE FEATURES BETWEEN ENTREPRENEURS AND MANAGERS SESSION 3

ENTREPRENEUR• To see an opportunity• Risk taking• Tactical Planning• Interpersonal communication• Negotiating• Trouble Shooting• Making it a growing concern• Innovator• Motivator• Determined• Idealist• Committed• Visionary• Planner

MANAGERS• Setting of Objectives• Policy formulation• Strategic Planning• Formal communication• Organizing• Motivating• Controlling• Administrator• Skills• Confident• Specialist• Loyal• Planner• Implementer

DISTINCTIVE FEATURES BETWEEN ENTREPRENEURS AND MANAGERS SESSION 3

ENTREPRENEURS• Primary motive-freedom,goal oriented, self reliant, self-

motivated• Time orientation-5-10 years• Action- whatever it takes to get the job done !!!• Skills-Knows business well• Courage-Self confident• Attention-Mainly on technology and market place• Risk-calculated-expects to succeed• Market Research-Creates products that cannot be tested• Status- don’t believe in it• Failure/Mistakes-Learning experience• Decisions-decisive and action oriented• Who they serve-pleases self and customers• Attitude towards the system- rapidly advance• or use own system if frustrated• Problem solving style-Solves problems or starting over• Family history-Small business,agri background• Relationship with parents – absent,poor relations with father• Socio-economic background-lower to middle class• Education-Less educated• Relationship with others- Deal making as basics !!

MANAGERS Wants promotions and rewardsResponds to quotas, weekly,monthly quarterly,Delegates actionProfessional training-MBASees others in charge of his destinyEvents in company onlyCarefulHas MR done before launching productCares about status-corner officeLikes to avoid mistakes,pospones recognizing failuresAgrees with those in power, delays decisions to see what bosses wantPlease bossesSeeks position in nurturing systemWorks out problems within the systemFamily members worked for large companiesIndependent of mother, good relations with father slightly dependentMiddle Class backgroundHighly educatedHierarchy as basic relationship

OWNER VS PROFESSIONAL MANAGER SESSION 3

OWNER MANAGER• SOURCE OF AUTHORITYY-Personal• BASIS OF PHILOSOPHY-no diffusion between

ownership and control, no conflict between personal and company objectives

Integration of work and social values Not a slave of economic goals• CHARECTERISTIC SKILLS

Adoptive,diagnostic,change,tactical,pragmatic, social skills,good independent decision making

• ORGANIZATION-Informal,no difference between planners and doers,rewards on basis of results only,everyone prepared to do whatever it takes !!!

Open system of communication

PROFESSIONAL MANAGER• Expertise• Control without ownership Conflict between individual and organizational goals clear distinction between individual and the position Values of work place different from social values Economic performance is ultimate Predictive,control of change strategic facility, co-ordination and control of specialists. Manipulative skills applied on an impersonal basis event shaping decision making,formal relationship, difference between planning and doing,technical qualifications only basis for promotions, precise definition of rights and duties and responsibilities,structural communication only

CLASSIFICATION AND TYPE OF ENTREPRENEURS SESSION 2

• BUSINESS ENTREPRENEUR: They are individuals who conceive an idea for a new product or service and then create a business to materialize their idea into reality.-small business flourishes when the size is small !!!• TRADING ENTREPRENEUR- He is one who undertakes trading activity and not concerned with manufacturing. He identifies a potential product and develops interest in people in that product and explores domestic and international markets . • INDUSTRIAL ENTREPRENEUR- He is a manufacturer who identifies the potential need of a customer and tailors a product or service to meet that marketing need.• CORPORATE ENTREPRENEUR- He is a person who shows his innovative skill in organizing and managing a corporate undertaking. A Corporate undertaking is a company registered either under the Trust Act or Companies Act .• AGRICULTURAL ENTREPRENEUR- He is a person who undertakes agricultural activities like raising and marketing of crops, fertilizers and other inputs of agriculture. The above all are Entrepreneurs according to classification of Business

CLASSIFICATION OF ENTREPRENEURS SESSION 2

• TECHNICAL ENTREPRENEUR: He is like a craftsman to develop and manufacture a product. He concentrates more on production than marketing since he has the skill in production only.• NON-TECHNICAL ENTREPRENEUR- He is a person who is not connected with the production aspects of the product but only developing the marketing and selling of the product • PROFESSIONAL ENTREPRENEUR- He is a person who is interested in starting a business but does not have interest in managing or operating it once it is established. A professional Entrepreneur sells out his business and starts another venture.• ENTREPRENEURS AND MOTIVATION-Motivation is the driving force that makes the entrepreneur achieve his objectives

and influencing others by showing his business acumen.• PURE ENTREPRENEUR-A pure entrepreneur is a person who is motivated by psychological and economic rewards. He becomes an entrepreneur for his own personal satisfaction in work, ego or status.• INDUCED ENTREPRENEUR- An induced entrepreneur is one who is induced to become an entrepreneur due to the assistance, incentives and rewards provided by the government to start a new venture. A person with a sound project is provided complete assistance in India and in the US !!• MOTIVATED ENTREPRENEUR-A person is a motivated entrepreneur by the desire for self-fulfilment They become entrepreneurs for making and marketing a product for consumers. If the product is successful they are further motivated by reward in terms of profit.• SPONTANEOUS ENTREPRENEUR- A person who starts his own business by his own natural talent. They are persons with drive and the confidence in their own natural abilities, Ex Musicians, Sportsmen

ENTREPRENEURIAL TRAITS SESSION 2

• CHARACTERISTICS OF AN ENTREPRENEUR: A Successful entrepreneur must be a person with technical competence, initiative, good judgment intelligence leadership qualities, self confidence ,energy ,attitude ,creativeness ,fairness , honesty, tactfulness and emotional stability• MENTAL ABILITY: An Entrepreneur should be intelligent and have creative thinking • CLEAR OBJECTIVES: He should be clear about his Objective-MBO !!• BUSINESS SECRECY: He should keep his business secrets confidential –competition• HUMAN RELATIONS : Good relations with customers, employees, suppliers & community• COMMUNICATION : He should have excellent communication skills-verbal & written• TECHNICAL KNOWLEDGE: An Entrepreneur must have technical knowledge of the product.• MOTIVATOR: He should build a team, keep them motivated for their career development.• SELF CONFIDENCE: He must believe in himself to achieve his goals.• LONG TERM INVOLVEMENT: Committed for 5 years – 2 years minimum in India & US• HIGH ENERGY LEVEL: Ability to work long hours- Whatever it takes attitude !!!

CHARACTERISTICS OF SMALL ENTREPRENEURS SESSION 2

• 1. They are young• 2. They are energetic/enthusiastic• 3. They have minimum basic education• 4. They are pleasant mannered• 5. They are hard working• 6. They are determined• 7. They are systematic and follow a planned approach• 8. They are self made• 9. They are self confident• 10. They are disciplined• 11 They are trained/experienced• 12 They have entrepreneurial zeal• 13 They have little capital• 14 Their area of operation is small• 15 They generally deal in one product • 16 They employee a few people• 17 Their turnover is small• 18 They are flexible.

CHARECTERISTICS OF LARGE SCALE ENTERPRISES SESSION 2

• 1. Promoted and professionally managed through employed persons• 2. Large capital• 3. Capital by a large section of shareholders• 4. Shares are registered on the Stock Market• 5. Large Assets• 6. Assets acquired by classified credit• 7. Involved in diverse activities• 8. Promotes the goods in the market• 9. Huge turnover/sales/profit• 10. Easy access to institutional finance• 11. They have greater leverage for development• 12. They are well connected politically• 13. They are trend setters • 14. They can create a demand for their products by powerful advertising• 15. They are great visionaries to see the needs of the country• 16. They are responsible and have a value driven corporate philosophy.

THEORIES OF ENTREPRENEURSHIPSESSION 2

• CAPITALISM: Free market economy, freedom to operate within guidelines EX USA

• SOCIALISM: The private enterprise does not contribute to the economy and is entirely controlled by the government!!! No scope for Entrepreneurship !!!

• MIXED ECONOMY- Private & Public Sector Ex India. • Public Sector Units take care of manufacture and sale of capital goods• Entrepreneurs take care of manufacture of consumer goods• Both are allowed to compete with each other within the rules laid down by each state• Government steps in to control the private sector when prices become too high • They regulate the industry EX Airline industry fares too high during festive season• Mixed economy is good because both Private and Public Sectors compete with each other.• Sick units are the fault of the government and become healthy when Private takes over

THEORIES OF ENTREPREUNERSHIPSESSION 2

• Theories broadly classified into Economic Psychological, Social & Cultural• 1.ECONOMIC THEORY-Mark Casson -The Entrepreneur-emphasized that the demand for

entrepreunership starts with need for change and imagination is an important factor• 2.LIEBENSTEIN X THEORY-Basically X-efficiency is the degree of inefficiency in the use of resources by the company and the Entrepreneur steps in to improve efficiency

• 3. DYNAMICS ENTREPRENEURSHIP THEORY-Introduced by Schumpter His theory considers Entrepreneurs as catalysts to change the stationary flow of the economy to a dynamic one by a) introduction of a new good b) introduction of a new method of production c) opening of a new market d) a new source of supply of raw materials e) carrying out a new organization

• 4. HARVARD SCHOOL THEORY- Harvard School(Cole,1949)- Entrepreneurship is any activity that increases the profit in a business within the guidelines of the economic, political and social setting of the business .

THEORIES OF ENTREPRENEURSHIP SESSION 2

5. THEORY OF ACHIEVEMENT -McClelland Doing things in a better way and decisions under uncertainity 6. THEORY OF CHANGE-Young People become entrepreneurs-low status recognition ,denied access to social networks and when they have better resources 7. THEORY OF PROFIT- Knight Entrepreneurs are only identified by the need for profit 8. THEORY OF ADJUSTMENT OF PRICE- Kirzner Kirzner says that the adjustment of price is the only reason people become entrepreneurs

THEORIES OF ENTREPRENEURSHIP SESSION 2

7. THEORY OF MARKET EQUILIBRIUM: Hayeks says that entrepreneurship is due to absence of market equilibrium which is a on going process to develop to the sale of the equilibrium

8. HAGANS THEORY OF SOCIAL CHANGE-He views Entrepreneurs as a creative problem solver interested in things in the practical and technology realm and driven by a duty to achieve.9. THEORY OF ENTREPRENEURSHIP SUPPLY-Behavioristic Model by John Kunkal is concerned with the activities of individuals and their relations to both past and present and surrounding social structures and physical conditions.10 THEORY OF PERSONAL RESOURCEFULNESS- The concept relies mainly on the initiative and innovation of the person who wants to become an Entrepreneur.11 THEORY OF CULTURAL VALUES-Thomas Cochrans theory –cultural values,role expectations and social sanctions-attitude towards work, role held by sanctioning groups and operational requirements of the job

FACTORS INFLUENCING ENTREPRENEURSHIP SESSION 3

• Peter Heydemann,Science Counsellor-US Embassy says as under in the US which should happen in India !!!!• Entrepreneurs and small business is the backbone of the US economy !!!• INCUBATOR CONCEPT- mostly attached to universities to help the entrepreneur translate the results of market research into a product and helped the Entrepreneur with business and financial planning,market development and government regulations.• These organizations help the Entrepreneur cut the red tape to start a business which is very much needed in India !!!• Incubator Technology- 5-6 years old- 600 plus national laboratories could not service 1.5 million

entrepreneurs so the States took over.• Universities in the US play an important role in helping entrepreneurs and it is happening• In India too !! IIMA has a big Entrepreunerial Division and MIT will have it too !!!!• Last year the US government spent more than $2000 million helping small business• Incubators do not provide any decisions for the Entrepreneur, they just give their knowledge,• expertise, resources to help the Entrepreneur take his decision on his project !!!!!• Examples of Entrepreneurs that I like Bill Gates, Warren Buffet, Steve Jobs, Tatas, Narayan

Murthy,!!!

THE ENTREPRENEURIAL CULTURE SESSION 2

ENTRENEPRENEURSHIP CULTURE-vision, values, traits and understanding customer needs

CULTURE: Members regulate their behavior in harmony with other groups in the group

BUSINESS ETHICS- Entrepreneurs should only do what is right in business

PRODUCTIVITY CULTURE- Not only doing things right but doing right things better

TOTAL QUALITY CARE- Introduction of all efforts for totally quality care TOP PROGRAM- Integration of all factors of productivity, innovation, culture ,mobilizatiion of employees and customer satisfaction at the TOP !!!CORPORATE VALUES OF AN ENTREPRENEUR:Be a Leader not just a Manager-Set examples of punctuality, honesty and fairnessBe a Facilitator- Be accessible and listen to all levels of employees in the companyBe Deliberate- Be result oriented and avoid unproductive meetingsBe Explicit- in assigning responsibility both small and big tasksBe Decisive Break the relations if someone is not working out. Indecision is bad for everyone.

•

TOP PROGRAMME SESSION 2

n

TOP

CUSTOMER

PRODUCTIVITY INNOVATION NEW MARKETS

CULTURE CHANGE

CONCEPT OF ENTREPRENEURSHIPSESSION 1

ENTREPRENEURSHIP ENTERPRISE

OBJECT

ENTREPRENEUR

PERSON PROCESS OF ACTION

COMPARISON BETWEEN ENTREPRENEUR AND ADMINISTRATIVE SESSION 3

ENTREPRENEUR STRATEGIC ORIENTATION Driven by perception of opportunityCOMMITMENT TO SEIZE OPPORTUNITIESRevolutionary within short durationCOMMITMENT OF RESOURCES Many stages with immediate decisionsCONTROL OF RESOURCESProper utilization of resourcesMANAGEMENT STRUCTUREFlat with multiple informal networks

ADMINISTRATIVESTRATEGIC ORIENTATIONDriven by controlled resourcesCOMMITMENT TO SEIZE OPPORTUNITIESEvolutionary with long durationCOMMITMENT OF RESOURCESSingle stage with out of decision CONTROL OF RESOURCES Ownership or employment of resources MANAGEMENT STRUCTRE Hierarchy

CREDO OF ENTREPRENEURS SESSION 2

• The world is looking for• Entrepreneurs that are honest !!!• Entrepreneurs that are innovative !!!• Entrepreneurs that are optimistic!!!• Entrepreneurs that stand for the right !!• Entrepreneurs that care for the society !!• Entrepreneurs who stand for values!!• Entrepreneurs with conscience!!• Entrepreneurs that neither brag or run!!• Entrepreneurs that neither flag nor flinch!!• Entrepreneurs who know their place and fill in!!• Entrepreneurs who know their business and attend to it !!• Entrepreneurs who are not too crazy !!!• Entrepreneurs who are not lazy to work !! • Entrepreneurs who will prosper with society• Entrepreneurs who will lead and motivate • Entrepreneurs who always dream for change• Entrepreneurs who live for their principles

DEFINITION AND STRUCTURESESSION 1 & 2

• Definition - derived from the French verb “Entreprende”- to undertake or to start your own enterprise or business

• Peter Drucker “ Innovation is the tool of entrepreneurs by

which they exploit changes as an opportunity for a different . Business or Service”• Entrepreneurship-Innovation ,risktaking ,vision , organizing

skills-all four inter-related. • Structure consists of External Environment, Value skills, People and Technology which are all inter-related

PROJECT REPORT & APPRAISAL SESSION 4

• PROJECT REPORT –Prepared by expert on analysis of all aspects and is the basis for financing.• SCOPE OF REPORT 1.Economic Aspects- should present economic justification for investment 2. Technical Aspects- should give the machinery and technology needed 3. Financial Aspects- Total investment required with entrepreneurs share. 4. Production Aspects- Description of product and reason for selection 5. Managerial Aspects- Entrepreneurs qualification and experience

• CONTENTS OF REPORT: 1.Objective and Product design and features with sample 2. Market position and trends with anticipated demands 3. Supply of raw materials and manufacturing process 4. Details of plant, machinery power and water supply 5. Financial implications of project cost and profitability 6. Manpower planning for the project 7. Social benefits and implications of the project .

ENTREPRENEURSHIP & PROJECT MANAGEMENT COURSE OUTLINE

• Session 3- ENTREPRENEURIAL DEVELOPMENT Entrepreneurial Environment Process of Entrepreneurial Development Entrepreneurial Development Training Institutions to aid Entrepreneurs

Session 4 PROJECTS MANAGEMENT Search for a Business idea and concept of projects & classification Project identification and formulation Project Design and Network Analysis Project Report and Appraisal Factory Design and layout

Session 5 FINANCIAL ANALYSIS An input in financial appraisal Ratio analysis and investment process Break even and profitability analysis Social Cost-Benefit analysis Budget and Planning process Applicability of various Acts of legislation

APPLICABILITY OF VAROUS ACTSSESSION 7

• APPRENTICESHIP ACT 1961: Apprenticeship Advisor to give a notice in writing to employer.• CONTRACT LABOR ACT 1970: License required if 20 or more employees employed in 12 mts.• PROVIDENT FUND ACT 1952: 20 or more employees eligible if wages less than 1000 pm.• ESI ACT 1952: 20 or more employees except seasonal factories.• EMPLOYMENT EXCHANGES ACT: Vacancies to be notified within one week if 25 employed.• EMPLOYMENT OF CHILDREN ACT: Employment of children prohibited where 10 or more!!• EQUAL RENUMERATION ACT 1976: Employer to pay equal salary/wages to men & women• FACTORIES ACT : Permission for 10 or more with power or 20 or more without aid of power.• INDUSTRIAL DISPUTES ACT 1947: Settlement of disputes and compensation for layoff !!• INDUSTRIAL STANDING ORDERS ACT 1961:Standing orders for classification if 100 or more !!• MATERNITY BENEFIT ACT 1961: Women get 6 weeks before and 6 weeks after if worked 160 in prior twelve months • MINIMUM WAGES ACT: Govt has fixed certain minimum wages for all types of employees • PAYMENT OF BONUS ACT 1965: 8.33% of wages with a max of 20% of wages earned• PAYMENT OF GRATUITY ACT 1972: 15 days wages after 5 years service with 20 months max • PAYMENT OF WAGES ACT 1936: Timely payment of Wages to employees earning less than 1000• WORKMEN COMPENSATION ACT 1923: Compensation for workers with wages 1000 or less

BUDGET AND PLANNING PROCESS SESSION 7

• BUDGET is a tool of Management used to plan and control the operations of the business.• BUDGET is more than accounting and helps to prepare the master budget for all functions.• BUDGETORY CONTROL is based on forecasting sales income and accounting for expenses.• CLASSIFICATION OF BUDGETS: 1. Revenue and expense budgets 2. Manpower budgets 3. Capital expenditure budgets 4. Cash Budgets 5. Master operating budgets.• ADVANTAGES OF BUDGETORY CONTROL: 1. Helps the process of planning 2. He can delegate without loosing control 3. Keeps expenditure in check to see performance.• STEPS IN BUDGETTORY CONTROL: 1.Preparation of the Budget 2. Publishing the Budget and measuring the Results. 3. Comparison of actuals with the Budget 4. Converting the variance to meet the Budget.

BUDGET AND PLANNING PROCESS SESSION 7

• STEPS IN PREPARATION OF A BUDGET : 1. Objective or goal of the company in terms of sales 2. Planning to achieve this goal by MBO approach !! 3. Identify alternatives to achieve the objective. 4. Formulating Supporting Plans to achieve objective. 5. Numerize plans to make the Master Budget.• MANAGEMENT PLANNING: 1. Strategic Planning- Long term objectives of the company 2. Action Planning-Done to support the long term objective. 3. Operation Planning for day to day operations of the company• MANAGEMENT BUDGET: 1. Sales forecast and budget for expenses to achieve the target 2. Production budget to manufacture product to meet sales figure. 3. HR Budget for Manpower required to manufacture the product 4. Finance Budget required for funding all the above functions 5. Based on all of the above a Master Management Budget• BUDGETTING is important to work within the budget for the overall profitability !!!!!

SOCIAL COST BENEFIT ANALYSIS SESSION 6

• INDIAN ECONOMY- Major changes since 1991 to reduce govt control for private enterprise.• ERR-Economic Rate of Return, ERP-Effective Rate of Protection, DRC-Domestic Resource cost• These factors help to decide whether a product to be produced domestically or imported?• SOCIAL COSTS- Means all consequences on the society as a result of the production process.• OBJECTIVE OF SOCIAL COST BENEFIT ANALYSIS:• 1. Estimate costs and benefits gained due to the project implementation.• 2. Estimate the costs and benefit to consumers and suppliers related to the project• 3. Estimate the costs and benefits gained by the community.• 4. Estimate the cost and benefits gained by the National Exchequer.• 5. Estimate the costs and benefits over a period of time to see the feasibility of the project.• MAIN FEATURES OF COST BENEFIT ANALYSIS:• 1. Assess the feasibility of the project in the public or private sector enterprise.• 2.Identification and measurement of costs and benefits of implementing the project.• 3. The effect of risk factor in the investment appraisal of the project.• 4. Presentation of results of the cost benefit analysis to implement the project.

SOCIAL COST BENEFIT ANALYSIS SESSION 6

• LM TECHNIQUE : Most widely used methods of Social/Cost Benefit Analysis.• Uses hypothetical instead of actual prices when evaluating a project.• Shadow prices are used since they reflect better than actual prices for benefit to society.• LM technique assumes a country can buy and sell any quantity of a product at a world price.• ELEMENTS OF COST 1. Materials – Direct or Indirect to manufacture the product 2. Labor- Direct & Indirect- Wages of carpenters, sweepers are indirect. 3. Expenses –Factory overheads, Administrative, Selling expenses.• CLASSIFICATION OF COST: 1 Direct and Indirect cost Ex Materials & Labor are direct 2. Fixed & Variable costs Fixed not affected by level of production. Variable depends on cost of raw materials which fluctuates.• STANDARD COST= Standard Material Cost + Standard Labor Cost + Standard Overheads Cost = Standard Quality x Price + Standard Wages and Time Overheads Volume of Production X Standard Man hours.• AVERAGE & MARGINAL COST: Average cost is dividing total cost of production by no of units. Marginal cost is the cost of marginal unit produced over lot.EXAMPLE: Co produces 100 units at a cost of 2000, average cost is 2000 ÷100=20 units

PROFITABILITY ANALYSIS SESSION 5• PROFIT- Reward for Entrepreneurship and main motive for running a business• FACTORS AFFECTING PROFIT: 1. Mix of product changes upon profits if a good system is in use 2. Volume of sales plays an important role for profit 3. A change in variable and selling prices affects the profit. 4. Marginal profit is after break even which is affected. 5.When both fixed and variable cost change it affects profit.• PROFIT PLANNING: Profit Planning is a role finance plays in the overall planning process• STEPS IN PREPARING APROFIT PLAN 1. Sales Budget showing revenue and projected sales 2. Production budget showing sales into units made 3. Direct Materials budget showing cost of materials 4. Purchase budget showing number of units purchased 5.Labor budget showing cost of labor in man hours. 6. Overhead budget is prepared for each department 7. The profit plan is put into operation

PROFIT PLANNING AND CONTROL SESSION 5

• PROBE INTO THE FUTURE: Profit Planning indicates what the future holds for the company.• FLEXIBILITY: Attitude of flexibility and capacity to adjust to changes• SENSITIVITY: Sensitivity to change for an excellent profit performance• EXCELLENT DIRECTION & CONTROL: It requires both centralized/decentralized

direction/control• SUPPORT: Top Management must support or else profit planning will be a flop • ORGANIZATION: Profit Planning depends on clear cut lines of authority/responsibility• CONFIDENCE: Management should make sure all are putting their best for this planning.• TIMELINESS: There should be a Time limit specified for the Profit Planning Program• ADVANTAGES OF PROFIT MAXIMISATION:• 1. Profit is the main reason for business No profit no Business !!!!• 2. Profit maximization helps social and economic welfare.• 3. Investors expect a positive return on their investment only by profit.• 4. Profits help to create additional resources for expansion and diversification• 5. Profit !! Profit !! Profit !! Is the main motive to be in Business !!!!

FIANCIAL ANALYSIS SESSION 4• FINANCE: It is the most important component once your project is approved to start up !!!• SEED CAPITAL: Money borrowed from financial institutions or other sources to start !!• FIANCIAL ANALYSIS: Process of finding economic facts about a project by using financial data. Helps to look at capital, operations cost and operating revenue for profit.• IMPORTANCE OF FA: Helps to evaluate the feasibility of investing in a project with risk factor.• USE OF FINANCIAL STATEMENTS 1. Govt regulations require maintaining financial records. 2. Income tax accounting to maintain all books of accounts 3. Executives decisions based on financial information 4. Bankers require accurate financial records for loans. 5. Investors and Shareholders need to know their money. 6. Credit from Suppliers and other agencies.• FIANCIAL TOOLS: 1. Trend Analysis 2. Variable Analysis 3. Ratio Analysis 4. Fund Flow Analysis

RATIO ANALYSIS SESSION 5• RATIO ANALYSIS: Relationship between Profit and Loss according to the Balance Sheet. 50,000 profit over 500,000 investment gives a ratio of 10%• ADVANTAGES : 1.Produces financial ratios to give a financial picture of the company. 2. Ratio analysis helps to analyze company performance and failures.• LIMITATIONS: Financial Statements do not take the current economic conditions, inflation.• TYPES OF RATIOS 1.Liquidity Ratios –Cash to Sales ratio acid test for any business !!! 2. Profitability Ratio- Profit-Cost= Net operating profit !!! 3. Debt equity ratio- Amount of debt to be less than equity !! 4. Operating ratio-Net sales to net profit 5. Turnover ratio-Turnover of capital investment. 6. Miscellaneous-Receivables to working capital.• LIQUIDITY RATIOS: 1.Current Ratio – Current assets divided by current liabilities. 2. Acid test ratio- Quick assets divided by current liabilities.• LEVERAGE RATIOS: 1.Debt Equity ratio- lower the ratio the better 2: 1 is acceptable 2. Asset Coverage- Cost of fixed assets against borrowed funds. 3. Debt service coverage- Profit after tax(PAT) + Deprc+ Loan payments.• ACTIVITY RATIOS: Inventory turnover/net sales inventory-shows inventory efficiency management Debtor-Velocity= ReceivablesX360 days –Higher the ratio higher the efficiency Creditor/Velocity=CreditorsX360divide by Purchases-Ratio increases shows short term liquidity problem or indicates that the company may get more credit from the market. Fixed Asset-turnover rate-= Net Sales divided by Fixed Assets Gross profit ratio percent= Gross Profit X 100 divided by Gross sales- Profit after mfg costs

F

RATIO ANALYSIS SESSION 5• LIQUIDITY RATIOS: Current Assets Divided by Current Liabilities- Favorite for Bankers !!! 2:1 is an acceptable ratio and accepted by Banks and RBI guidelines.

• PROFITABILITY : Gross Profit Ratio(GDR)= Gross Profit X 100 Net Sales Oldest and widely used to compare with similar industries to be favorable Lower ratio indicates that the production expenses are on the high side. Net Profit Ratio (NPR)= Net profit ÷by sales X 100-Net profit after deducting expenses NPR used GPR gives the banks a good financials.• RETURN ON EQUITY: Net Profit divided by Shareholders Funds X 100 Important ratio for Shareholders because it covers all factors.• DEBT/EQUITY RATIO (DER)- Proportions of Debt and the Equity Capital in the investment DER measures investor leverage, smaller the equity capital,higher the income per unit share. Equity owners want high ratios to allow equity owners to control projects with small amount of capital Financial Institutions need a sound DER not less than 50% of total capital investment.• DEBT SERVICE COVERAGE RATIO: (DSCR)= Net profit+ depreciation + interest on term loan divided Amount repayable on loan+ interest on loan This ratio shows the safety availability for the company to pay back the installment loans. Banks accept a ratio of 2:1, not lower than 1.33:1

PROJECT DESIGN & NETWORK ANALYSIS SESSION 4

• PROJECT DESIGN- heart of the project involves planning scheduling and controlling.• IMPORTANCE OF NETWORK ANALYSIS:• 1. Whole project is considered a sequence of activities and events• 2. Each activity is different but all are inter-related in the overall project.• 3.Whole project on network with separate networks to make up the overall network• 4. Time estimates projected for new and based on past experience for old projects• 5. Cost estimates depend on the time estimate & changes in all factors in production.• 6. Physical progress of the project to take corrective action in time for the project.• PERT/CPM- Technics developed in the US and the main differences are as under• CPM-Critical Path method-activities only and the costs of each activity for completion.• PERT-Performance Evaluation Review Technic emphasizes events for completion of project.• STEPS IN PERT 1.Establishment of Objective and development of project network 2. Schedule work breakdown and time estimation for each task 3. Determination of critical path with event slacks and activity floats 4.Calculation of completion of the project in a specified time.• PERT- Time based- Optimistic time, pessimistic time and most likely time for completion

ADVANTAGES/LIMITATION OF PERT/CPM SESSION 4

• PERT ADVANTAGES: 1.Best possible use of resources to achieve goals within the time 2. Helps to handle the concept where no time data is available 3. Right action, at the right point and at the right time !!!

• LIMITATIONS : 1. Hinders time estimates when activities are non repetitive 2. It does not consider resources required at various stages. 3. Frequent revision of PERT calculations which becomes costly

• CRITICAL PATH METHOD: 1. Helps to get the time schedule 2. Control by Management is good with CPM 3. Better and detailed planning 4. Standard method for communicating projects schedules 5. Helps to pay more attention to critical events.• LIMITATIONS: 1. Fails to use statistical analysis to determine time schedule 2. Assumes that there is a precise time for each activity but not true in reality 3. Difficult to use due to repeating entire evaluation when changes are made.

PROJECT FORMULATION SESSION 4• PROJECT FORMULATION: Taking a first look carefully and critically at a project idea for the its feasibility after weighing all the components of the project.• PHASES OF PROJECT FORMULATION: 1. Conception of an idea 2.Analysis of all aspects 3. Formulation of a project 4. Design of a project.• STEPS IN PROJECT FORMULATION:• 1. General Objective- States in broad terms the achievements expected from the project.• 2. Operational Objective- Specific results expected from implementation of the project• STAGES OF PROJECT FORMULATION: • 1.Feasibility Analysis-First stage to see if the project idea is feasible or not to continue.• 2.Techno-Economic Analysis-Estimation of project demand and optimal technology is made.• 3. Project Design & Network Analysis-Defines activities of the project and their interationship• 4. Input Analysis-Step to know the inputs for the construction & operation of the project.• 5. Financial Analysis- Estimates the project costs from funding to operation of the project.• 6.Cost-Benefit Analysis-Overall worth of the project and project design is basis of evaluation.• 7. Pre-investment Analysis-All previous stages are used to get a final form for approval• PROJECT IMPLEMENTATION- In preparing project implementation PERT & CPM technics used.• LEGAL ASPECTS-All land acquisitions, bank loans, licences to be done according to the laws..

CHECK LIST FOR FEASIBILITY REPORTSESSION 4

• 1. Examine public policy with respect to the industry• 2.Specify outputs and alternate technics of production• 3. List and describe alternate alternative location for operation of the enterprise.• 4. Estimate sales revenue, capital and operating costs and profitability.• 5. Market analysis and specify product pattern and prices.• 6. Identify main source of supply of raw materials with alternative sources.• 7.List major equipment and auxiliary equipment to be used for the project.• 8. Specify sources of supply for equipment and process know how• 9. Specify site and complete necessary investigations about the land and property.• 10. Specify supply sources and connection costs for water supply, power & transportation.• 11. Prepare layout and estimate working capital requirements• 12. Phasing activities and expenditure during construction• 13. Analysis of projected profitability based on a cost benefit analysis• 14 . Determine measures for combating environmental problems• 15. Be prepared to implement the project immediately.

PLANNING COMMISSION GUIDELINES FOR PROJECT FEASIBILITY SESSION 4

1. GENERAL INFORMATION-information about the type of industry and past performance.2. PRELIMINARY ANALYSIS-present data on the gap between demand and supply for the output. - data on the capacity utilization of existing units in the industry - Location of the project and implications on community. - profitability and rate of return should be mentioned in the report.3. PROJECT DESCRIPTION- Mention the technology to be used in the project - Mention environmental issues arising from projects pollution - Capital equipment used and operational requirements of the plant - Manpower requirement and organization structure planned - Mention the requirements of power and water to be used.4. MARKETING PLAN- Demand and prospective supply and analysis of past trend in prices.5. CAPITAL REQUIREMENT & COSTS- Information on all costs involved in the project.6. OPERATING REQUIREMENTS & COSTS-Costs incurred after commercial production7. FINANCIAL ANALYSIS-Present some data to gauge the financial viability of the project8. ECONOMIC ANALYSIS- To be done if exports to reflect the true value of foreign exchange.

PROJECT INDETIFICATION SESSION 4

• PROJECT INDENTIFICATION : It is the first step in a new venture.• CRITERIA FOR SELECTING A PROJECT:• 1. Investment size: 3-5 crores to get relatively easy financing from national institutions.• 2. Location: New Entrepreneurs should choose a location near the States Capital• 3. Technology: Use domestic technology without any foreign collaboration• 4. Equipment: Entrepreneur should select the best technical advice for equipment• 5. Marketing: Not advisable to get into a business with cut throat competition to consumer.• IMPORTANCE OF PROJECT IDENTIFICATION:• Development in terms of income and employment generation• Projects provide for the framework which involve finance for a long term nature.• Projects brings about changes in the society in due course of time.• ENTERPRISE DEVELOPMENT CENTER:• 1.intrapreneurship center- provides research ,skills ,environment to set up the enterprise• 2.Venture Capital Exchange – provides the necessary seed capital for the enterprise• 3.Innovation Center- provides all assistance to the entrepreneur in planning, evaluation etc.• 4. Incubation Center-provides the needed stimulus for the enterprises to succeed and grow.• FEASIBILITY REPORT: It is mandatory for new Entrepreneurs to consult the Director of Industries Service Institute (SISI) in ones State who will guide the new Entrepreneur in all aspects.

CONCEPT OF PROJECTS & CLASSIFICATION SESSION 4

• WORLD BANKS DEFINITION: Approval of capital investment to develop facilities to provide goods and services.• ATTRIBUTES OF A PROJECT: 1.Objective 2. Course of Action 3. Definite time perspective.• CHARECTERISTICS OF A PROJECT: 1.Investment 2.Benefit 3. Time limit 4. Location.• PROJECT LEVELS: 1.National Level 2. Sector level Ex Hotel 3. Individual project level.• PROJECT CLASSIFICATION: Sector Projects-Agriculture ,Irrigation ,Power ,Industry,Transport,SS• TECHNO-ECONOMIC :1.Factor Intensity Oriented-capital intensive or labor intensive. 2. Causation Oriented-Demand for certain goods and services. 3. Magnitude- Large scale, medium scale and small scale.• FINANCIAL INSTITUTION CLASSIFICATION: 1.New Projects 2.Expansion 3.Modernization 4. Diversification• SERVICES PROJECTS: 1. Welfare 2. Service Projects 3.R&D 4. Educational projects• ASPECTS OF A PROJECT: 1.Product,marketing,technical,financial and economic aspects 2 Feasibility of the project based on the above factors.• PROJECT CYCLE: 1.Project Objective 2. Project Identification 3. Project Preparation 4. Project Implementation 5.Post Evaluation of the project as productive.• PROJECT PLANNING MATRIX: 1. Overall Goal 2.Project purpose 3.Results project must achieve 4. Activities necessary to achieve those results/outputs.• PROJECT MANAGEMENT: It is combination of all the above factors in developing a suitable project

PROJECTS MANAGEMENT SESSION 4

• PROJECT- Plan to achieve a specific objective and uses and authority to implement it.• PROJECT- Three attributes 1. input characteristics 2. output characteristics 3 social benefit• INPUT- Raw materials, energy, manpower, financial resources and an organization set up• OUTPUT-Production of goods, services, and quantitative, qualitative and financial aspects• SOCIAL BENEFIT- Input and output will determine the social benefit to the community. SEARCH FOR A BUSINESS IDEA CHOOSING AN IDEA- Choose many ideas and narrow down to one idea which is feasible on the basis of your market research and the liking of the entrepreneur. PRODUCT IDEA – Mansukhbai Patel man behind Paan Parag and Paan masala !!! SANITARY NAPKIN/DIAPERS- Concept in the 80s- 30 crore and has potential for 840 crore Market Leader is Johnson & Johnson, Huggies, Pampers DATE SUPARI- Good profit for export to the US but banned item so dropped the project FINAL SELECTION OF A PRODUCT- Depends on 1. Profitability 2. Not banned item 3. Import and export restriction, 4. experience in making the product and 5. Market research and competition.

PROJECTS MANAGEMENT SESSION 4

• THE ADOPTION PROCESS:• 1.AWARENESS : Learns about a new idea , product or practice but has limited knowledge.• 2. INTEREST: Interested in the product so gets more information about the product or idea.• 3. EVALUATION: Evaluates the cost benefit analysis and feasibility of product/idea to work.• 4. TRIAL: The Entrepreneur is ready to put the idea into practice and test market the product.• 5.ADOPTION: Based on results of test marketing he decides about the product /idea• PRODUCT INNOVATION: Drucker To create a customer only marketing and innovation !!!• METHODS OF OBTAINING PRODUCTS:• INTERNAL DEVELOPMENT: Best method to develop the product on your own• LICENSING: Getting the right to produce from patent holder, fees and royalty involved.• ACQUSITION: Buying the company that makes the product which is a costly project.• PRODUCT PLANNING AND DEVELOPMENT STATEGY:• 1.MARKET PENETRATION- Selling more to existing and new customers to increase market• 2.MARKET DEVELOPMENT-Creation of new markets for sale of existing products.• 3.PRODUCT DEVELOPMENT- Introduction of a new product in existing established market• 4.DIVERSIFICATION- A company enters a new market with a completely new product

PROJECT MANAGEMENT SESSION 4• PRODUCT PLANNING AND DEVELOPMENT PROCESS:• 1. NEW PRODUCT IDEA- Visualize new ideas to create and develop a new product-R&D• 2. IDEA SCREENING- Poor or bad ideas are dropped and the best idea is evaluated and taken• 3. CONCEPT TESTING- An idea screened studied in detail to develop mature product concepts• 4. BUSINESS ANALYSIS-MR,C/B analysis, competition and most important profit from product.• 5. PRODUCT DEVELOPMENT PROGRAM-1.Prototype2.Consumer testing 3. Branding/labelling.• 6. TEST MARKETING-Test marketing for feasibility of a full national marketing program.• 7. COMMERCIALIZATION- After test marketing launch national mass marketing program.

• Examples of ideas which have become multi million $ companies !!!• 1. Microsoft 2. Warren Buffet-62 companies 3. Apple 4. Dell 5. Federal Express 6 Tennis bracelet 7.

Expandable ring/bracelet 8. Google 9 email 10 Cell phones 11 GPS system• 12 Tiffin carrier deliver in Mumbai 13. Tatas Nano 14 Automatic transmission and cruise control in

cars. 15. Bathroom Tissue-Wipe him out-Saadam Hussein 16 Drive thru fast food,• and banking 17. ATM machines 18. Mall concept 19.Wedding Planners 20 Comedy clubs• 21 Real Estate business-Donald Trump 22.Lease/buy option for cars 23 Discounted airfares• and free travel and benefits for gamblers to Vegas !!!!

CHECK LIST FOR CHOOSING IDEASSESSION 4

• FIT YOUR SKILLS AND EXPERIENCE:• Do you believe in the product or service?• Does the need it fits means something to you personally?• Do you like and understand the potential customer?• Do you have experience in this type of business?• Does your skills fit the basic success factors of this business?• Are the tasks of the business you will enjoy doing yourself?• Do you enjoy working and supervising the people employed?• Has the idea begun to take over your imagination and spare time?• Does your idea have any social benefit?• Are you expecting a good profit and return on investment?• FIT WITH THE MARKET:• Is there a real customer need?• Can you get a price that gives you a good profit?• Will customers believe in the product coming from your company?• Does your product satisfy the need of the customer over competing products?• Is there a cost effective way to get the message and the product to the customer?• FIT WITH THE ENTERPRISE:• Is there reason to believe your enterprise could be a very good business?• Does it fit the enterprise culture?• Can you imagine who will sponsor it?• IF YOUR IDEA IS REJECTED:• Give up and select a new idea• Try and improve your idea , listen to others and try to get a sponsor for your idea so that your financial risk is low !!!

ENTREPRENEURIAL TRAININGSESSION 3

• IMPORTANCE OF TRAINING• Availability of skilled workers at all levels of management and improves their performance.• Enables workers to perform more efficiently and reduces defective products in production.• Minimizes accidents between unskilled and semi-skilled workers and reduces fatigue.• Training increases the efficiency of the employee who earns more to avoid overtime• Training improves relations between employees and management to reduce turnover.• Standardization and new technics can be adopted in a factory with trained employees• Team Spirit and team work is promoted and trained need less or no supervision.• OBJECTIVES OF TRAINING:• Basic knowledge of the industry to build necessary skills for new entrepreneurs.• Assist the Entrepreneur to function more effectively and have a second line of workers• Expose the Entrepreneur to the latest developments with a vision for the future.• Training to be given systematically by trained instructors to develop the required skills• Training to include induction training, job training, promotion training and refresher training.• Training should not only be theory and to be supplemented by practical training !!!

ENTREPRENEURSHIP DEVELOPMENT PROGRAM SESSION 3

• OBJECTIVES OF THE PROGRAM: To promote and develop small and medium industries in India with the help of Industrial Service Institute(ISI), and the Department of Industrial Promotion (DIP)• EDP launched as part of the industrial development policy under the 5 year Economic plan.

• Promote the development of small/medium enterprises to encourage entrepreneurs• Provide special programs in rural areas to stimulate new ventures and existing expansions.• Generate employment potential for processing raw materials for domestic and export use.• Develop opportunities for potential entrepreneurs and upgrade existing managerial skills.• NINESBUD- expert group to select potential entrepreneurs as under• Develop and strengthen their entrepreneurial quality/motivation• Analyze environment related to small business and industry• Select product/project and formulate projects• Understand the process and procedure of setting up a small enterprise• Know and influence the source of help/support needed to launch the enterprise• Acquire basic management skills and to know the pros and cons of being an entrepreneur• Know the need of social responsibility of becoming an entrepreneur• To let the entrepreneur set the objectives of his business and work independently• To prepare him for unforeseen risks and help him take strategic decisions• To help him build and work with a team to meet the needs of tomorrow• To communicate fast, clearly and effectively.• To develop to a vision to integrate his function and see business as a whole applicable with honesty, integrity in the

environment and accept industrial democracy.

ENTREPRENEURIAL CYCLE SESSION 2

• Entrepreneurial education and publicity for entrepreneurial opportunities• Identification, motivation and training of potential new Entrepreneurs• Help in selecting products and projects based on techno-economic information.• Entrepreneurial counseling to create entrepreneurial skills and developing a forum

• Registration ,Arranging finance to provide land, power, water and other resources• Guidance for obtaining machinery and supply of raw materials for the enterprise.• Getting licenses and obtaining tax benefits and other subsidies from the State Government.• Management Consultancy for market research to market and sell the product

• Help modernization with diversification and expansion of the business• Additional financing for full capacity utilization and deferring repayment/interest• Diagnostic industrial extension for production units to create new avenues for marketing, quality control in compliance with the current legislation applicable for the enterprise

PROGRAM ON ENTREPRENEURSHIP COURSE OUTLINE

• Session 6 SOURCES OF FINANCE• Sources of Development Finance• Project Financing• Institutional Finance to Entrepreneurs• Financial Institutions• Role of Consultancy organizations

• Session 7 MARKETING CHANNEL• Methods of Marketing• Marketing Channels• Marketing Institutions and Assistance• Setting Quality Standards

• Session 8 SETTING UP A SMALL INDUSTRY• Location of an enterprise and steps to start a small industry• Selection of Types of organization• Incentives and subsidies• Exploring exporting possibilities

• Session 9 Problems of Entrepreneurship and Remedies & Case studies

• Session 10 PROJECT WORK •

METHODS OF MARKETING SESSION 8

• ELEMENTS OF THE MARKETING MIX :• MARKET RESEARCH: Field Surveys, Sales Analysis and use of outside agencies !!

• GENERAL PLANNING: Determine the size and extent of the market and the costs involved !!

• PRODUCT PLANNING: Determine the product features with service and ASS !!!!

• PRICING: Pricing of the product with suitable margin to break even and make a profit !!!

• ADVERISING & SALES PROMOTION: The program designed according to the needs !!!

• SALES FORCE/CHANNELS OF DISTRIBUTION: Salesmen/Wholesalers/Retailers/

• PHYSICAL HANDLING: Transportation/Warehousing/Inventory

ROLE OF CONSULTANTS SESSION 8• Consultants help Entrepreneurs in all aspects of the Business for a Consultancy fee !!!• STRATEGIC PLAN: Identifying vision to determine Business portfolios and goals !!!• ORGANIZATIONAL STRUCTURE: Diagnosis of the Organization structure and functions !!!• PEOPLES SYSTEMS AND SYNERGIES: Evaluating peoples potential to achieve company goals !!• FRANCHISING: Franchiser provides privilege to conduct business for a fee from Franchisee !!• TYPES OF FRANCHISING: Product Franchising- Ex- Dealers from car manfacturers Trade Name franchising-Use of name without using a product Ex Marks & Spencers.• PRODUCTION: 1. Product Research-Study all aspects of the product for production process. 2. Equipment Research-Study all aspects for the equipment for production.• ROLE OF STATE: All States are encouraging by Small Industries Service Institute.• ROLE OF NID: National Institute of Design Ahmedabad has played a key role in consultancy.• ROLE OF TCO: Technical Consultancy Organizations set up in 70/80s to meet the need.• STEP: Science& Technology Entrepreneurship Parks developed by IDBI for consultancy.• CONSULTANTS are very useful for Entrepreneurs for information they need in areas where they feel expertise is needed to supplement their Business Idea and goals !!!.

MARKETING CHANNEL SESSION 8• MARKETING is the main function after the product is developed and to be launched.• TEST MARKETING: to perceived customers to find out acceptability of the product• MARKET SEGMENTATION: Customers in that market are chosen to market & Sell !!• MARKET PENETRATION: Once the market is found it has to be penetrated for profit !!!• BRAND LOYALITY: After Market Penetration, Brand loyality to be established !!!• CUSTOMER RELATIONSHIP: Very important for repeat business and referrals.• ASSESS THE COMPETITION : Keep your friends close and your enemies closer !!!• FEED BACK : Feed back from customers very important to improve in any way !!!• CUSTOMER IS THE KING !!! The customer is the King even if wrong !!!• AFTER SALES SERVICE: Very important to call customer for satisfaction/disatisfaction• MARKET POTENTIAL: Assess the market potential of your product in the market !!• NEW CUSTOMERS: Always keep adding new customers and drop bad customers !!!• SALES &PROFIT: Always analyze sales against profit for Financial Analysis of the company !!

SOURCES OF FINANCE SESSION 7• FINANCE is the basic requirement of the

project which includes short term and long term.

• SOURCES OF FINANCE: Commercial Banks, Financial Institutions and Venture capital states.

• SHORT TERM FINANCE: Funds required by the Entrepreneur for less than one year.

• MID TERM FINANCE: one to five years to be used mainly for working capital of the project

• LONG TERM FINACE: 5 years and above for fixed assets, expansion, diversification.

• SHORT TERM: Bank /Trade Credit Installment credit/advances

• MEDIUM TERM: Shares/Debentures Loans from Banks. Public Deposits for existing enterprises. Putting back profits. for existing enterprises.

LONG TERM: Issue of Shares/Debentures Loans from Finance companies. Putting back profitsMID TERM & LONG TERM basically the same except for the 1-5 years and 5 years & above

NATURE AND DEVELOPMENT OF ENTREPRENEURSHIP SESSION 1

Entrepreneurship- enterprendre-to undertake venture out on your own!!! Contributing factors-labor, technology, capital, resources and entrepreneurship!! All big companies started as entrepreneurs-Tata Birla Reliance UB group Ranbaxy Microsoft, Hathaway Berkshire-Warren Buffet-62 companies-simplicity Entrepreneurship is the life blood of the economy especially in the US !! Entrepreneurs don’t like to work in a job !!! JOB=Just over Broke !!! The economy in India and in the US depends a lot on small companies that grow into

big companies Entrepreneurship is an Art and not a Science !!! No two entrepreneurs style are the same Entrepreneurs are born to think differently and not follow others Entrepreneurs always question why and want to do the same thing differently Entrepreneurs like to work smart and not only hard !!! Entrepreneurs- When the going gets tough the tough gets going !!! Entrepreneurs never take NO for an answer and always question why !!!

SOURCES OF FINANCE SESSION 7• TECHNICAL SCHEME: Technically qualified or experienced professionals- 7.50 lakhs.• SPECIAL CAPITAL SCHEME: 4 lakhs on soft terms for technically/qualified persons.• SEED CAPITAL SCEME: 15 lakhs for technically qualified or experienced people.• COMPOSITE LOAN SHEME: Equipment finance and working capital -50,000 for artisians• DISABLED ENTREPRENEURS: 100% financing for disabled entrepreneurs • MODERNIZATION: 90 lakhs for replacement of equipment for units that are 5 years old• ELECTRO-MEDICAL EQUIPMENT: 90 Lakhs for qualified Doctors/Private Nursing Homes !!• NURSING HOMES/HOSPITALS: 90 Lakhs for full fledged Nursing Home/Hospitals• EQUIPMENT FINANCE: 90 Lakhs for purchase of new machinery for existing units.• QUALITY CONTROL EQUIPMENT: 7.50 Lakhs for quality control assistance for existing units.• ASSISTANCE TO EX SERVICEMEN: 9 Lakhs for Seed Capital and 1.80 Lakhs for self employment• SINGLE WINDOW SCHEME: 7.50 lakhs toward term loan and 3.75 Lakhs towards W Capital• TOURISIM RELATED: 90 Lakhs available for Tourism related Business Ventures • MAHILA UDYAM NIDHI SCHEME: Set up new projects in SSI sector by women entrepreneur• NATIONAL EQUITY FUND SCHEME: 75,000 assistance towards equity for new projects• ASSISTANCE FOR MARKETING: 3 Lakhs per sales van not more than 6 vehicles per borrower 7.50 lakhs for setting up new sales outlets.

SOURCES OF FINANCE SESSION 7• SCIENTIFIC APPROACH TO WORKING CAPITAL:• Terms offered by the Suppliers and the terms offered to the customers 30/60/90/120• Average lead time needed to order the raw materials to complete the finished product.• The Production Cycle and level of Stock to be maintained for marketing & Selling.• Working Capital Model is used for effective financial analysis of the company.• EFFECTIVE FINANCIAL MANAGEMENT: 1. Analysis of past performance 2. Planning for future activities 3. Control of current activity• WORKING CAPITAL MANAGEMENT: Understanding cash requirements at design,development Production and Marketing of the product of the co.• SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI): provides support to small companies in the area of finance.• FINANCE is the basis for funding a project and on the basis of funding alone can the the Entrepreneur plan for the development of his idea into the design, production and marketing of his product.

ENTREPRENEURSHIP AUDIT SESSION 1• Do you enjoy taking calculated risks ? Y/N• Do you plan ahead on the things you do? Y/N• Do you have a head for numbers/finance? Y/N• Do you complete what you start ? Y/N• Can you survive a drop in living standards? Y/N• Can you take decisions without wavering? Y/N• Are you free of financial commitments? Y/N• Can you get along with different people? Y/N• Is your career path ending in your job? Y/N• Do you enjoy travelling on work ? Y/N• Are you capable of leading people? Y/N• Do you have a clear vision of your dreams ? Y/N• Do you have innovative ideas about projects? Y/N• Do you have acquired skills to run the new venture? Y/N• Do you plan to work methodically? Y/N• Are you adaptable and flexible? Y/N• Do you prefer to work alone or in teams ? Y/N• Do you find yourself envying entrepreneurs ? Y/N• Are you able to meet deadlines ? Y/N• Does your spouse support your plans? Y/N

THE VALUE CHAIN PATTERNSESSION 1

Value is everything-Enterprises that create value win !!Those that cannot loose !!! Profit is part of value which should be sustained Entrepreneurs should always strive to improve their market share-higher than the competition Key-spot and benefit from factors for profit Change according to customers preferences Entrepreneurs have to change according to the business environment Prior to mid 1980s, the product was the main source of competitive power and

profit The concept of profit and value have changed to brands and solutions Knowledge is a form of energy-can be disorganized ,dissipated and squandered or

organized and profited from by supplier and customer Organizational System can have a huge impact on the profitability Value patterns are not rigid-each has variants but all lead to profit which is the basis

of business and entrepreneurship !!!!

TOP 10 ENTERPRISES IN INDIA1998-1999 SESSION 1

Market value Sales Revenue Hind Lever (1) 34,210 10,448 ONGC (2) 27,157 15,005 ITC (2) 17998 7,739 IOC(2) 17077 61,086 Reliance (3) 13022 15,174 MTNL (3) 12353 4,768 WIPRO (4) 9724 1,853 SBI (4) 9328 18,698 GAS Authority (5) 7268 6,398 BAJAJ AUTO (5) 6898 3,845 All figures are in crores

TOP TEN GLOBAL COMPANIESSESSION 1

Revenue in US Billion GM US 161 Daimler Germany 154 Ford US 144 Walmart US 139 Mitsui Japan 109 Itochu Japan 108 Mitsubishi Japan 107 Exxon US 100 Gen Electric US 100 Toyota Japan 99

DEVELOPMENT OF WOMEN ENTREPRENEURS SESSION 2

• In the US, women own 25% of all business• In Canada they own 1/3 of all business• In France they own 1/5 of all business• AREAS OF BUSINESS-Retail,restaurants,hotels, education, cultural, cleaning, insurance and manufacturing• REASONS FOR STARTING THEIR OWN BUSINESS- 1. New challenges and opportunities for self

fulfilment 2.Prove themselves in innovative jobs 3. Change the control the balance between• family responsibility and business lives- micro business fits their life style to control

everything.• Rita Singh: Woman Entrepreneur who made it big !!-founder of Mescos-Mid East Shipping

company-1500 crore turnover employs more than 7000 employees• Jewelry Business in the US has many women owners who run their stores well• Women entrepreneurs account for only 4.5 % of the population of India• Motivation is the key for Women Entrepreneurs and are in all industries today• Success stories of Women Entrepreneurs-Roman Malkani, Jayalakshmi Devaraj,Kathy

Inamdar, Rupa Manhaty

PROFILE OF A WOMAN ENTREPRENEUR SESSION 2

• First born child of middle class parents• Father and or Mother in independent business• College educated• Married• Early 30s for first venture• Previous experience in new venture• Desires freedom and independence• Motivated by desire for independence and job satisfaction• Small and young business• Self confident• Moderate risk taker• High tolerance for ambiguity• High energy level• Biggest problem in start up• Some negative points which I will delete and the women can decide !!!

LEADERSHIP QUALITIES OF WOMEN ENTREPRENEURS SESSION 2

• Accept Challenges• Ambitious• Drive• Enthusiastic• Hard Work• Patience• Industrious• Motivator• Skillful• Unquenchable optimism• Adventurous• Conscious• Educated• Determined to excel• Keen to learn new ideas• Experienced • Intelligent• Perseverance• Studious

PSYCHO-SOCIAL BARRIERS FOR WOMEN ENTREPRENEURS SESSION 2

• Poor self image of women• Inadequate motivation• Discrimination• Faulty socialization• Role conflict between family and business• Cultural values• Lack of courage and self confidence• Inadequate encouragement• Lack of social acceptance• Unjust social-economic and cultural system• Lack of freedom of expression• Afraid of failures and criticism• Susceptible to negative attitudes• Non-persistent attitudes• Low dignity of labor• Lack in leadership qualities-Planning, organizing, directing, controlling and motivating

• All above points debatable and will be points for group discussion and conclusion !!!

THE THREE KEY ASSETSSESSION 1

Concept driven communities search for new ideas ,and have a knowledge intensive workforce

Competence driven-develop centers of quality for manufacturing using a combination of good infrastructure ,customized job training and commitment to world class standards

Connection-driven combine their cultural knowledge of the world with a healthy infrastructure to make deals

A combination of each of these assets creates the basis of an economy that attracts jobs, capital and customers

An Entrepreneur needs to have these assets !!!