Orientation To ENTREPRENEURSHIP. Yogesh Misra, Faculty of Engineering & Technology Mody Institute of Technology & Science (Deemed University) Laxmangarh [Raj.]. Contents Occupation (2) Businessman / Business vs Entrepreneur / Entrepreneurship (3) Characteristics of entrepreneur
Yogesh Misra, Faculty of Engineering & Technology
Mody Institute of Technology & Science (Deemed University)
A professional is person who is paid to undertake a highly skilled task. Examples : medicine, nursing, law and
A person in the service of another under any contract
(An activity through which we get income to run our family)
A businessperson is someone involved in a activity for the purpose of generating revenue
An entrepreneur is an owner manager of a business enterprise who makes money through innovation
Most important : INNOVATIVE IN NATURE
government rules and regulations.
Step 1: Get Inspired
Step 2: Do Your Research
Answer these questions in your market research :
Is there a need for your products/services?
Who needs it?
Are there other companies offering similar products/services now?
What is the competition like?
How will your business fit into the market?
Step 3: Make a Plan
“who fails to plan, plans to fail“
It gives clarity about what we want to achieve and how.
It helps in seeking financial support from an investor or financial institution
Step 4: Plan Your Finances
Step 5: Choose a Business Structure
Step 6: Pick and Register Your Business Name
Step 7: Get Licenses and Permits
Step 8: Set Up Your Business Location
Step 9: Choose Your Accounting System
Step 10: Promote Your Small Business
(1) EXECUTIVE SUMMARY
(2) COMPANY DESCRIPTION
(3) PRODUCTS / SERVICES
(4) MARKET ANALYSIS
(5) MARKET STRATEGY
(6) MANAGEMENT SUMMARY
(7) FINANCIAL ANALYSIS
(The company description outlines vital details about your company, such as where you are located, how large the company is, what you do and what you hope to accomplish)
Company name (use Ministry of Corporate Affairs www.mca.gov.in)
Products/services and target market
A clear statement that represents the purpose of your company.
Why are you starting this business?
What are you creating?
What will your business look like in one year, three years, and five years?
OBJECTIVES (Set goals for the business)
Goal should be:
Specific & Measurable
With in reach
(The products or services section of your business plan should clearly describe what products and/or services you\'re selling with emphasis on the value you\'re providing to your customers or clients)
This section can be broken down into following parts:
Brief comparison to similar products or services in the market
ii. List of your price points
This section should include following parts:
Industry Description :
Detailed statistics that define the industry size, growth rate and trends.
Who is your ideal customer? Age, gender, income level and lifestyle of target customers.
How you intend to reach the market.
Who is in your competition?
What are the strengths and weaknesses of the competition?
What are the potential roadblocks preventing you from entering the market?
(This section can be used as a blueprint for all of your marketing activities)
(i) Brand name
(iii) Quality and Warranty
(i) Advertising and Marketing budget
(ii) Promotional strategy, Publicity and public relations
(iii) Sales force and Sales promotion
(i) Pricing flexibility Pricing strategy
(ii) Retail price, Seasonal Price and Wholesale (volume) price
(i) Distribution centers and Distribution channels
(ii) Order processing and Transportation
(This section demonstrates expertise of the team and resources behind your company)
This section should include following parts:
(I) Business Structure
(II) Management Team
(III) Other Personnel
(IV) Personnel Growth Plan : What are the salaries of each person to be involved with the company for the next three years?
(The executive summary is the first section of your small business plan that is typically written last. It provides an overview of all of the other sections in the business plan)
Executive summary should highlight at least one important statement from each of the
other sections in your business plan.
II. If the reader only reads the executive summary, he or she should have a very clear
idea about your business, your goals and your strategic plan for accomplishing your
III. The executive summary should also include basic information about your business
such as your business name and location, description of your business and its
products and/or services, your management team and mission statement.
(Q) What motivates a person to become an entreprenuer?
(Q) Does motivation to become an entreprenuer is different in male and female?
(Q) Does motivation to become an entreprenuer vary with the age?
(Q) Does motivation to become an entreprenuer vary with the experience?
(Q) Which one is most suited finance option for entreprenuers?
(Q) What is the importance of education for an an entreprenuer?
National Knowledge Commission
(in terms of sectors and numbers of people engaged)
Level 1:Agriculture and other activities: Crop production, Plantation, Forestry, Fishing, Mining, etc.
Level 2:Trading services: Wholesale and retail trade.
Level 3:Old economy or traditional sectors: Manufacturing.
Level 4:Emerging sectors :IT, Finance, Insurance and Business services, Construction, Transport-Storage-Communications etc.
Registration of new companies according to nature of economic activity
For female entrepreneurs the most important motivating triggers are:
Independence = 25% & Identification of a marketable idea = 25%
For male entrepreneurs the most important motivating triggers are:
family background = 24% & Independence = 21%
For entrepreneurs less than 35 years age the most important motivating triggers are:
Market opportunity = 27% & Independence & Family background = 22%
For entrepreneurs greater than 35 years age the most important motivating triggers are:
Independence & Family background = 23% & Idea driven = 22%
An angel investor is an rich individual who provides capital for a business start-up, usually in exchange of ownership equity.
Sources of self-finance
Swayambhoo Sharma, Madanlal Kumawat, Chandan Agarwal(Modified hand pump with tap and attachment for filling animal trough) Rajasthan/Delhi
Mr. Narayan Murthy
(1) Started in 1981 by seven people
(2) Start-up investment US$ 250
(3) 65 offices and 59 development centers in India, China, Australia, , Poland,
UK, Canada and Japan
(5) Total employees 127,779 employees as on December 31, 2010.
(1) The organisation started of with a sum of Rs.80.
(2) Founded by 7 sisters in Mumbai.
(3) Now 73 Branches and 27 Divisions in different states all
(4) Sales of over Rs.650 crores with exports itself exceeding
Rs. 29 crores.
(5) Over 42,000 sisters working in organisation .
Mansukhbhai conceived an idea of presenting a substitute of “Pan”
(1) Started in1977 from her house.
(2) Start-up investment of Rs
(3) Presence in over 100 countries
650 salons around the world
(4) Employing about 4200 people.
(5) The net worth of the Group
was $100 million.
(1) Founded SAHARA group 1978
started with three workers
(2) Small deposit para-banking business.
(3) Today having presence in housing,
entertainment, media and aviation.
Started her television software business at the age of 19.
(1) July 4, 1996, first email service by HOTMAIL.
(2) In 1997 Microsoft purchased HOTMAIL in $400million.
(1) Prepare text for advertisements, marketing brochures, press releases, TV and radio commercials, catalogs and packaging labels, etc.
(2) Writing talent.
(3) High demand, as most business owners do not possess the skills and time to prepare highly effective copy.
(4) Alliances with advertising agencies, graphic artists and public relations firms.
The benefits include:
• Less investment capital required to start and operate the business.
• Fewer government regulations, and substantially lower liability insurance premiums.
• Less competition within the industry, and a clear definition of the target market.
• Increased choices in terms of operating location.
(1) Purchase, lease or rent a suitable mode of transportation.
(2) Contact local doctors.
(1) Target customers are individuals seeking to reduce or eliminate stress from their daily lives.
(2) Corporate clients.
(3) Business place – Home, rental office or client\'s business or home location.
(1) Information source for start-up entrepreneurs.
(2) World-class infrastructure.
(3) Public Fund for new entrepreneurs.
(4) Polices to encourage innovation among smaller
institutions and companies.
(5) Recognition and reward for Entrepreneurship.
(Entrepreneurship is treated as an extra-curricular activity, resulting in a narrow impact on limited numbers of students)
(1) Integration of subjects on entrepreneurship in the formal education systems
(2) Case studies of real life situations in the curriculum.
(3) Linking vocational education with mainstream education.
(4) Student-led activities related to entrepreneurship in campus.
(5) Business plan contests.
(6) Industry-Institute interaction.
National Institute of Small Industry Extension and Training (NISIET)
Training, research and consultancy services
Indian Institute of Entrepreneurship
Training, research and consultancy services
National Institute of Entrepreneurship and Small Business Development (NIESBUD)
Coordinating and overseeing activities of various institutes /agencies engaged in entrepreneurship development
Integrated Training Centre (Industries)
Conducts EDP course
Institute for Design of Electrical Measuring Instruments (IDEMI)
Render services to the instrumentation industry
Central Institute of Hand Tools
Aims at rapid growth of the hand tool sector
Hand Tool Design Development and Training Centre
Assistance for improvement in productivity, betterment in quality, high value addition
Central Tool Room
Provides services in the area of consultancy, tool design and manufacture and technical training
Central Tool Room and Training Centre
Training, design and manufacture of complicated precision tools for the telecom industry and other common facility services
Central Institute of Tool Design (CITD)
Training, CAD/CAM centre to train post-graduate trainees, automatic process control unit, and so on
Product-cum-Process Development Centre for Sports Goods
Training, process and product development of sports goods, R & D
Product-cum-Process Development Centre for Essential Oils
Modernise and upgrade technology status for the essential oils and perfumery industry
Product-cum-Process Development Centre
Provide better technology to small-scale foundry and forging units, process and product development, and provision of design for melting equipment, testing facilities
Electronic Service and Training Centre
Training, technical and consultancy services
Centre for the improvement of Glass industry
Development and adoption of new technologies and products
National Small Industries Corporation
Supply of machinery, marketing assistance, training