ENVIRONMENT OF BUSINESS-INDUSTRY. INTRODUCTION :. Future of any enterprise is determined on the constant development of the enterprise. Analysis/study of environment is necessary. Various types of opportunities and dangers are included in the environment.
Factors related to Economic, Social, Technological and competition related environment business can be kept in mind in following manner while analysing the external environment:
(a) National income : and capability of a person to create cordial relations with the environment.
(a) Perfect competition : income for research while underdeveloped countries like India, this proportion is less than even ½%.
(b) Monopoly : income for research while underdeveloped countries like India, this proportion is less than even ½%.
Non-price competition is more profitable for an entrepreneur.
- George Stigler
Establishment of New Industrial Unit : political environment and international environment also affects Business Enterprise.
1. Registration of small scale Industry :
- Its registeration is done in the District Industries Centre (DIC)
- Its office is situated in the headquarters of every district.
- Application is sent to the general manager in a prescribed form.
- Certain industries don’t required registeration such as wooden, flour mill, hotel, baby food, etc.
- political environment and international environment also affects Business Enterprise. Registeration of small scale industries is done in two stages :
Provisional registeration is obtained before starting the enterprise, and provisional registeration number is given at that time.
Small scale registeration period is given for 5 years.
This number is necessary to get cash assistance and registeration number.
ii. Permanent political environment and international environment also affects Business Enterprise. Registeration :
Permanent registeration is done only after the industrial enterprise starts production.
They get spared from getting licence regarding priority in raw material, import and paying deposit for government tender.
An enterprise has to present proofs like receipt of possession of industrial shed or house if they own place.
If on rented place than, receipt of rent payment, electricity connection etc.
It is not necessary to register small scale industry, though it is desirable in order to get certain benefits. Benefits are as under :
2. Municipal licence :
- All the debts of the company are distributed in equal, small parts like share capital. This part is called debenture.
- Issued through public issues or private placement by a company.
- Debenture is a debt with fixed interest rate, and they are to be returned after the determined period.
- As debenture is a debt, if enterprise bears loss or has less proportion of profit, it becomes inevitable to pay interest according to decided rate.
- As debenture is a long term debt, they are used to raise fixed assests.
2) Term Loan :- small parts which are called shares.
- In India national and state development banks have been established to provide long term credit to the industrial enterprise.
- Banks give term loans for 7 to 15 years.
- Corporation working under national and state level are following :
PROCESS OF GETTING LOAN : maximum 240
END OF CHAPTER 2 by joint sector, project-advisor, activity for development of entrepreneurship and help regarding the provision of equity finance to the industrial enterprise.