ENTREPRENEURSHIP DEVLOPMENT LAB RECORD

Dept. of Electrical & Electronics Engg.

R.I.E.T Bhankrota jaipur-302026

Submitted to:-

Submitted by:-

Kamal Bishnoi

Utkarsh Sharma
III Yr. Roll No:-74 Batch B-2

CONTENTS
Definition Of Entrepreneur Procedures And Formalities For Starting Own Business Market survey Knowledge Based Enterprises Motivation Leadership A Standard Business Plan Outline

Central Government Policies and Schemes

Definition Of Entrepreneur
Essentially, an entrepreneur is a person who starts a new business venture. However, we tend to think of entrepreneurs as people who have a talent for seeing opportunities and the abilities to develop those opportunities into profit-making businesses. Are entrepreneurs born or made? The debate still rages, but the current consensus is that successful entrepreneurs share a constellation of personality traits. In other words, some people are naturally more entrepreneurial than others. A common misperception about entrepreneurs is that entrepreneurs are wild risk-takers. Entrepreneurs do take risks, but only calculated ones. One of the abiliities successful entrepreneurs share is the ability to evaluate risks. If you're wondering whether or not you have what it takes to be an entrepreneur, you'll find more links to more information about entrepreneurial traits in the sidebar. But remember, you don't need to have all the traits associated with entrepreneurship to be a successful entrepreneur. The main quality you need is a determination to make your business venture succeed. The rest of the qualities necessary to being a successful entrepreneur you can learn. The concept of entrepreneurship has a wide range of meanings. On the one extreme an entrepreneur is a person of very high aptitude who pioneers change, possessing characteristics found in only a very small fraction of the population. On the other extreme of definitions, anyone who wants to work for himself or herself is considered to be an entrepreneur. The word entrepreneur originates from the French word, entreprendre, which means "to undertake." In a business context, it means to start a business. The Merriam-Webster Dictionary presents the definition of an entrepreneur as one who organizes, manages, and assumes the risks of a business or enterprise.

Schumpeter's View of Entrepreneurship Austrian economist Joseph Schumpeter 's definition of entrepreneurship placed an emphasis on innovation, such as:

new products new production methods

new markets new forms of organization

Wealth is created when such innovation results in new demand. From this viewpoint, one can define the function of the entrepreneur as one of combining various input factors in an innovative manner to generate value to the customer with the hope that this value will exceed the cost of the input factors, thus generating superior returns that result in the creation of wealth.

Qualities Of A Successful Entrepreneur:All successful entrepreneurs have the following qualities Be Practical: Being practical is the first quality any entrepreneur must be able to master if they want to be successful. Practicality would give that successful entrepreneur the ability to make decisions on business matters with a clear frame of mind and common sense. This results in them seeing things that others may not. We must remember that not all products sell. A successful entrepreneur would be able to see this and make decisions based on unbiased information, current knowledge and past experience. They must not let external factors affect their judgement and understand that the rise or fall of a business will highly depend on the decision that they make.

Imagination and creativity: A successful entrepreneur must also be imaginative and creative. They must be able to look outside the square and see things others do not. They must be able to offer solutions to difficult problems as well as being able to brainstorm ideas for their products. They must be able to create a business that will set them apart from others. An achiever : Another key quality of a successful entrepreneur is that they are achievers. Getting things done is important. Remember you need to keep driving your business vehicle until you are satisfied with the result and achieved your goal. Those that stop halfway will never see what they can really achieve. Successful entrepreneurs are the ones that are persistent, motivated, independent and hardworking. They have a clear vision of what they want to achieve and set out to form a plan, followed by an action in order to reach their goals. They are proactive and get things

done. Self Discipline: Those who are self disciplined are one step closer to becoming a successful entrepreneur. We all would love to have fun instead of work, or watch TV instead of doing our tax but remember it is this self control that distinguishes those that are successful to those that are not. When you want to succeed in anything, not just business, you must teach yourself time management, stress management and also be able to separate work from play. Independence: Not only do successful entrepreneurs have to possess self discipline but they must also show independence. Being independent means that they are aware of the decisions needed to be made and can make them on their own. They are not afraid of being alone and being different. They understand what is required of the business and are the decision makers. Take Action: Remember business means business and if you keep sitting on the fence you will always be the watcher. To be a successful entrepreneur you must chose which side of the fence you want to jump over to and make the most of it. Do not ponder on all the pros and cons of a problem too much and delay important projects. You must be a quick thinker and act fast. When necessary make a choice, take action and deal with all the obstacles as they come. Be productive. Sitting around and waiting for things to happen is not going to make you a successful entrepreneur. Patience: Patience is the key to success. We all know that a business needs time to build up. Success does not happen overnight (unless extremely lucky). Entrepreneurs understand this and often like to put ideas into actions and wait to see the results. Whatever the results may be they often go back and tweak their ideas to produce better results. This is what differentiates a successful entrepreneur from one that is not so successful. Determination: Another quality that entrepreneur must have in order to succeed is determination. In the business world it comes without saying that competition is everywhere and this can lead people to lack the confidence e and motivation required to succeed. A successful entrepreneur can take failure as it is and then tries again, maybe using a different approach. Point is they believe in their ability to become successful and it is this belief that allows them to stand up again after they fall. Motivation: Motivation is a skill that entrepreneurs cannot lack. In any business venture there is bound to be

both success and failure. A successful entrepreneur must not let failure block their view of what could be a successful business. If they can put aside the disappointment and motivate themselves to try again, they are one step closer to reaching their goal. When all enthusiasm and motivation is lost then this is when the business is also lost.

Procedures And Formalities For Starting Own Business

This information will be useful for those who are looking in a nutshell the steps involved to start a Private Limited company in India 1. First and foremost identify the Directors of the Company. Minimum of two directors need to present and Maximum of 8 is allowed. 2. All Directors should have DIN (Directors Identification Number). If you do not have one you can apply DIN online at www.mca.gov.in. Documents required for DIN A. Identity Proof (Any one of the following) PAN Card Driving License Passport Voter ID Card

Others (to be specified) B. Residence Proof (Any one of the following) Driving License Passport Voter ID Card Telephone Bill Ration Card Electricity Bill Bank Statement Others (to be specified) 3. Once you have got your DIN then you need to apply for Company name. You need to go with 5-6 names in the order which you prefer.If the name is not available then they go to the next one in the order you have provided. 4. You need to apply online for the name availability . You need to Fill in Form 1A. Forms are avilable at this location.http://www2.mca.gov.in/MinistryWebsite/dca/downloadeforms/eformTemplates/1 030-Form1A_help.zip 5. Once you have got your name approved you have to apply for the Incorporation of Company. For this you will have to prepare Memorandum of Association which will detail what the company;s operations the first list of directors who are going the be in the board need to be defined in this document. This should be applied along with Form 1 http://www2.mca.gov.in/MinistryWebsite/dca/downloadeforms/eformTemplates/1022Form1_help.zip. Ocne this has been approved make atleast 10-15 copies of your Certificate of Incorporation and Memorandum of Association and have it in a booklet form. 6. Once your company has been incorporated you can open a Current account in any of the leading banks for carrying out your operations. You will need to submit a copy of Certificate of Incorporation and Memorandum of Association along with Borad resolution to open the bank account.

7. Then you need to apply for TAN and PAN for the Company https://tin.tin.nsdl.com/pan/form49A.html https://tin.tin.nsdl.com/tan/form49B.html 8. If your services are in Software related area you can apply for STPI license which will give you certain benefits like Company need not pay tax for 5 years, there will be no import or expurty duty levied on software/hardware, You will get office spaces at lower rates at STPI units. These are few of the benefits of becoming an STPI member. All this you can do on your own or you can outsource these to professional auditor. We did it through Auditor and it took almost three weeks (Upto Step 7 excluding STPI) and all charges(excluding sTPI) would approximately cost you Rs.25,000.

Financial Support System

State Bank of India provides liberalised credit to Small Scale Industries (SSI ). This is linked to genuine requirements . No collateral is required upto Rs,5 lakhs. Composite term loans including working capital are given upto Rs.25 lakhs. Small Industries Development Bank of India (SIDBI) was established in April 1990 under an Act of Indian Parliament as a wholly-owned subsidiary of Industrial Development Bank of India. SIDBI has since completed 8 years of service to the small scale sector. As at March 31, 1998, SIDBI had a total staff strength of 861 comprising of 685 professionals and 176 support staff. SIDBI's statute provides that it should serve as the principal financial institution for: Promotion Financing and Development of industry in the small scale sector and Co-ordinating the functions of other institutions engaged in similar activities. Financial Assistance to Small Scale Units: Delhi Financial Corporation (DFC). For existing borrowers. Maximum limit upto Rs 150 lakhs over and above the term loan sanctioned by DFC subject to a maximum exposure of Rs. 240 lakhs. In partnership and proprietary units the maximum limit of loan shall be Rs. 90 lakhs including existing exposure of DFC.

Market survey
Market survey is an essential tool in building a successful business strategy; a simple, self-help customer or consumer survey can transform your business. A market survey is an important requirement for initiating any successful business. The objective of a market survey is to collect information on various aspects of the business. This survey is a tool Through which we can minimize risk. After the market survey, the results must be analyzed in order To finalize a business plan. In practice many marketing techniques and practices are no more than applied common sense, and are essential tools in building and running a successful small business. One of the most useful marketing tools is the market survey, or consumer survey. Importance of market survey. A market survey is a useful tool for contact with the market

 The systematic and intelligent use of this tool can reduce risks of decision making under conditions of uncertainty Through a market survey we can obtain information in the following areas: size of market pattern of demand buying habits and motives past and present trends for this or other products A generalized market survey or customer survey can provide the answers to the four central questions which any business needs to ask: Who are our core customers or clients?

What do they want? How can we best provide it? How can we tell them about it? However, market surveys can also be used to answer more specific questions: How is a projected new product likely to be received? How do customers perceive the value of our product? Is our pricing right? Where should we place our advertising? Is our advertising cost effective? How do customers/clients perceive our businesss strengths and weaknesses.

1. 2. 3. 4. 5.

Knowledge Based Enterprises

In our work with business leaders we have found that what they are looking for is an organization that is entrepreneurial. They want both people and total organizations that are innovative, responsive and creative enough to impact decisively the ecology of the society and marketplace they operate in. They want their enterprise to generate new conditions in the market to which others must now respond. What they are after is an "Entrepreneurial Enterprise." An organization that can accomplish this kind of impact is truly an "Intelligent Organization" that is co-evolving in a wider ecology of economic, knowledge and social concerns. As economic success is driven more and more toward reliance on knowledge as the source of commercial and technical advantage it is imperative that firms organize themselves around their capacity to generate, share and use knowledge rapidly and effectively. Organizations will need to "understand" the wider patterns of changing technologies, economic forces and social concerns if they are to respond effectively, and they will need to account for the reflexive nature of their response. Their adjustments to the market will alter the market landscape. In this

environment those strategies that are designed to alter the market will be most powerful. Entrepreneurial action will be the attractor that unites intelligent organizations. The Knowledge Management "movement" is only the first step in this direction, and organizations that embrace the use of technologies and practices designed to enhance the "capture" and "transmission" of knowledge artifacts will definitely have the advantage over those that wait. The real pioneers, however, are now taking a broader perspective that includes exploring the human side of knowledge ecosystems. It is there that the real potential for innovation, agility, and entrepreneurial intelligence lies. What this consortium focuses on is integrating all aspects of a knowledge ecology into new ways of organizing, new management practices, new approaches to worknew ways of doing business.

Scope Of Entrepreneur In Present Context

Risk taking ability, Self-confidence, Decision making ability, Knowledge of cumin growing to harvesting technology, Economic motivation, Market orientation, Risk factors, Soil and firm condition of experiences, Water resources, Water quality and volumes, need to cumin for all technical factors, Ability of co-ordination to cumin related activities, Achievement, Motivation, etc. indicators are behavior of entrepreneurial. Entrepreneurship has gained greater significance at global level under changing economic scenario. Global economy in general and Indian economy in particular is poised for accelerated growth driven by entrepreneurship. Admits environment of super mall culture we find plenty of scope for entrepreneurship in trading and manufacturing. An entrepreneur is a person who is able to look at the environment, identify opportunities to improve the environmental resources and implement action to maximize those opportunities (Robert E. Nelson) it is important to bear in mind the entrepreneurial skills that will be needed to improve the quality of life for individuals, families and communities and to sustain a healthy economy and environment. Taking this into consideration, we will find that each of the traditional definitions has its own weakness (Tyson, Petrin, Rogers, 1994, p. 4). The first definition leaves little room for innovations that are not on the technological or organizational cutting edge, such as, adaptation of older technologies to a developing-country context, or entering into export markets already tapped by other firms. Defining entrepreneurship as risk-taking neglects other major elements of what we usually think of as entrepreneurship, such as a well-developed ability torecognize unexploited market opportunities.

Women Entrepreneur:

Women entrepreneurs have been making a significant impact in all segments of the economy in India, Canada, Great Britain, Germany, Australia and the United States. The areas chosen by women are retail trade, restaurants, hotels, education, cultural, cleaning, insurance and manufacturing The New Thrust suggests following two factors pulling or pushing women in an entrepreneurship Factors leading women to be an entrepreneur:Women entrepreneurs choose a Women takes up businessenterprises to Profession as a challenge and an get over financial difficulties and respond- adventure with an urge to do some - sibility is thrust on them due to family -thing new, liking for business and circumstances. to have an independent occupation. With the spread of education and new approaches/awareness, women entrepreneurs are achieving higher level of 3Es, namely: (i) Engineering (ii) Electronics (iii) Energy. Though we should not forget certain Psycho-Social Barriers which hinders the growth of women entrepreneurs. Opportunities : Free entry into world trade. Improved risk taking ability. Governments of nations withdrawn some restrictions Technology and inventions spread into the world. Encouragement to innovations and inventions. Promotion of healthy completions among nations Consideration increase in government assistance for international trade. Establishment of other national and international institutes to support business among nations of the world. Benefits of specialization. Social and cultural development Challenges: Problems of raising equity capital Difficulty in borrowing fund. Thought-cut completions endangered existence of small companies. Problems of availing raw-materials. Problems of obsolescence of indigenous technology Increased pollutions Ecological imbalanced. Problems of TRIPS and TRIMS. Exploitation of small and poor countries, etc.

Suggestions Govt. should provide separate financial fund of womens entrepreneur. We should provide her special infrastructure facilities what ever she deeds. Govt. should arrange special training programmes of women entrepreneurship Govt. should felicitated top ranker womens entrepreneur. Women entrepreneur should more competitive and efficient in the local & international market. Use should invite successful women entrepreneurs from foreign countries.

Present Entrepreneurial Scenario:

Mr. Ratan Tata had clearly articulated to us his vision for Tata Motors. The company has very successfully launched its passenger cars- Indica and Indigo and recently in January 2008 they have set a benchmark in the history of four-wheeler industry all around the globe by offering their masterpiece NANO to be the worlds cheapest car worth 1 Lac rupees only. The company has also taken over the business of Corus, a giant in the steel industry. Vijay Mallya and talk of innovation, to hit the Indian market. Vijay Mallya s mission was to create brand Kingfisher as a generic brand for lifestyle. There happened to be some sort of compatibility between the way he lived his life and the brand image that he was thinking to create. One of the key ingredients of innovation is to simply be yourself. He did the restructuring process of United Breweries without any sense of embarrassment. We are all sometimes stymied, curbed and limited by ourselves. Philips, Sony, Honda, Ford provide the signposts of entrepreneurship today for all to emulate. Some of these have come up only in recent years and from small beginnings. In India, too, one sees glimpses of such entrepreneurship. ICICIs experience tells a great deal about entrepreneurship good as well as not so good. Following Indian firms will keep on dominating the corporate world in the future too

Tata Steel & Motors Indian Oil Corporation Reliance industries Infosys Technologies Moser Baer Bharti Tele-ventures

Area of future Entrepreneurship

Interest in entrepreneurship has witnessed significant growth these past five years. A simple count of the number of times the word appears in newspapers and magazines and the number of features on successful entrepreneurs verifies this new development. Until this new wave of interest, entrepreneurship was a word few had heard and a topic only a few had real interest in. Previously, individuals felt that the economic well-being of the United States-and indeed the worldrevolved around big business and government support. Large corporations were considered to be the driving force behind an economy, as evidenced in attempts such as those of Ireland and Puerto Rico to attract large multinational firms through the use of tax incentives. The perceived key to economic growth for these cultures was to attract as many large corporations as possible. Some corporations did locate manufacturing facilities (but not research and development and marketing functions) in these "tax havens." Similar incentives were offered by various areas in the United States hoping to attract a plant relocation or expansion as well as the occasional regional or corporate relocation. Each city or county followed the procedure of the less developed countries-offering tax incentives, infrastructure support, and other inducements in an attempt to entice the large corporations' expansion or relocation efforts. Bigger Isn't Always Better When it was recognized that large corporations did not create economic well-being, the government was expected to take up the slack. These areas became "quasi-welfare states," with the government playing a major role in providing desired jobs and income. In some areas, this support eventually accounted for more than 50 percent of total expenditures. Big was beautiful, whether in the form of government or business. Academic institutions, too, were immersed in this trend. Students were prepared to be managers by learning how to mind the store, and to avoid challenging the beliefs and assumptions of the organization. Emphasis was on organizational structure, lines of responsibility and authority, and key management principles--planning, staffing, organizing, directing, and control. Little, if any emphasis was placed on innovation, creativity and "doing your own thing." The few courses which departed from this approach were generally presented as "small business" courses, whether in management, marketing or finance. Most such courses merely attempted to downsize key concepts developed for the larger organization to a smaller one. There was little discussion and even less career counseling, about starting one's own business. Instead, the concern of the college or university was to have more of the large and prestigious firms on the school's recruiting list. Graduates were prepared to successfully interview, survive, and (hopefully) succeed in a corporation, partly by building large organizations underthem.

Catch phrases were: "don't take any risks," "protect your rear," and "follow the mentoring of someone higher up in the organization, riding on their coattails." The media, too, focused on large organizations and growth. A new plant locating in a city was heralded-in a half page of coverage--as a great boost to the area's economic well-being, while a new software company received very limited coverage, if any at all. Little attention was paid to technological breakthroughs such as the creation of new breeds of livestock or strains of grain, or to the dynamic growth of chains of pizza restaurants or convenience stores. GrowingInterest in Entrepreneurship

Motivation
Entrepreneurship to a great extent is a product of motivation. Motivation here refers to the inner drive that ignites and sustains behavior to satisfy needs. Behavior is always caused and it is not spontaneous. In other word, human behavior is goal directed towards satisfaction of needs. Several research studies have been carried out to identify the factors that motivate people to start business enterprise. There are internal and external factors that motivate a person to start up an enterprise. Internal factors are: Educational background, occupational experience, desire to do something pioneering and innovative, desire to be free and independent and family background. On the other hand the external factors are: Assistance from government, financial assistance from institutions, availability of technology or raw material, encouragement from big business units and heavy demand for product.

Internal Factors constitute the personality of the entrepreneur and thereby generate an inclination to adopt entrepreneurial activity. The presence of these factors is essential for entrepreneurial activity to take place. But entrepreneurial ambitions cannot fructify without a supporting environment.External factors providing this environment give a spark to entrepreneurship. Among, the internal motivation the desire to do something creative was important. It means the desire to make contribution to the development of the state and country, to introduce a n entirely new product in the market, to make full use of technology, to provide employment to intelligent men and women in the community etc. External Factors, like assistance from financial and other institutions was rated the strongest motivator. Other factors include availability of surplus funds, sick units available at a cheap rate, success stories of first generation entrepreneurs, support of friends and relatives etc.In some cases there were compelling reasons like loss of job, death of father, dissatisfaction with the job held etc,prompting people to launch their own industries. High need for achievement is essential for a successful entrepreneur.Achievement motivation can be developed through training and experience. Ambition is the level of all motives and nourishes achievement motivation. Lack of ambition or low level of ambition is the major cause of backwardness. Achievement motivation training is essential for entrepreneurship development. In these training laboratories are used for developing achievement motivation. These labs provide experimental learning situations which help the trainees to examine their outlook and attitudes and modify them.

Leadership
Leadership:Leadership is a process of influencing the behaviour of people at work towards the achievement of specified goal. The following elements must be present in the leadership. (a) It is the process of influence; (b) The influence is always for achievement of common goal; (c) There must be minimum two or more persons present, influencing your own behaviour is not leadership.

(d) The influence should be to get the willing co-operation of the employees and not the forceful co-operation. Common Ways of Influence (David Kepvins Seven Influence Strategies The behaviour of the employees can be influenced in the following manner: a) Reasons. By giving the logic the managers can influence the behaviour of employees. b) Friendliness. Some managers use supportive need of friendliness to influence the behaviour of employees. c) Cohesion. Sometimes by working in a group you can influence the behaviour of other members of the group. d) Bargaining. Influencing the behaviour by offering some incentives such as promotion, bonus, increments etc. e) Higher authority. Some managers make use of their position or get the support of higher officials to influence the behaviour of employees. f) Assertiveness. When through strictness and force the managers influence the behavior of subordinates then it is called assertiveness. g) Sanction. Sometimes the managers use punishment and rewards to influence the behaviour of the employees. Generally leaders and managers are considered same by every one. But these two are synonymous of each other. The following points are given to explain the difference between manager and leader.

Difference between Manager and Leader Or Managership and Leadership

Manager 1. A manager is always a leader because he has to influence the behaviour of subordinates working under him. 2. The managers have formal

Leader 1. A leader may not be a manager because the people who are leading informal groups are not managers always.

authority to influence the behavior. That is why they can use assertiveness and sanctions to influence the behaviour of employees. 3. The managers influence the behaviour towards the achievement of organisational goal. 4. A manager exists only in formal organisation.

2. The leaders have informal authority only that is the authority of trust and faith shown by the group members. 3. Leaders influence the behaviour towards the satisfaction of every member of the group and realisation of group goal. 4. A leader may exist in formal as well as informal organisation.

Importance of leadership Leadership is an important element of direction. The significance of leadership can be understood by learning following points : 1. Help in Inspiring and Guiding the Employees. The leaders have direct contact with the subordinates and they always motivate the employees for higher performance and achievement of goal. That is why leadership is considered as an important factor for the success of the organisation. Leaders also act as guides as whenever the employees are in trouble, leaders guide them in the right direction of achievement of organisational goal 2. Securer Co-operation of the Member of organisation. Leaders try to secure the willing cooperation of the employees as they develop feeling of initiative and enthusiasm in the employees. The leaders develop the spirit of teamwork and convince the subordinates that they can achieve their goal only when the team goal or group goal is achieved. 3. Creates Confidence. The leaders try to recognize the hidden talent and qualities of the employees and encourage them to highlight these hidden talents to boost up their confidence level. Generally employees fail to realise or recognize their abilities and capabilities. Leaders recognize their abilities which provides psychological support and confidence in the employee.

4. Improves Productivity. The biggest challenge or problem of every organisation is best utilisation of physical and human resources. It is possible with the effective and efficient utilization of resources and efficiency depends upon the motivation, confidence and cooperation among the employees and leaders develop co-operation, confidence and motivation among the employees which results in maximum utilization of resources. 5. Improves job Satisfaction. The job satisfaction does not depend only on monetary compensation. But it depends upon working conditions and behaviour of managers towards their employees. The behaviour of manager must be supportive and managers are considered good leaders only when they are able to motivate the employees and provide them psychological support. Leadership ensures that managers follow such a pattern which is acceptable to all the subordinates and motivates the employees to consider themselves as a part of organisation. Leadership also helps the employees to take right decision at the time of stressful situation. The guidance at such situation brings job satisfaction to the employee. 6. Improves Team- Spirit or Group Cohesion. The group cohesion or the team spirit depends upon mutual trust, friendliness, co-operation and liking of subordinates for each other. The leadership helps in creating team-spirit by encouraging the employees to share common vision (goal) and work collectively. Leaders always guide the subordinates to give importance to the group goal rather than individual goals. Qualities of a Leader/ingredients of leadership A person must possess the following qualities to be a good and effective leader : 1. Intelligence and Scholarship. A leader must be able to examine every problem in the right perspective or direction. The leader must have superior judgement and abilities to take right decision in right situation. The leader must have complete knowledge about the work performed by his group member. 2. Communication Skill. A leader is the source of information for all the member of his group. Generally all the instructions and information from the superiors are passed to subordinates by the leaders only. So they must have good communication skill so that information reaches each and every member.

3. Listening Skill. The leader must give chance to his subordinates to talk and speak freely with him. He must take the response of subordinates. 4. Ability to Inspire people. The leader must be able to convince the employees that their willingness to do work will bring best result in their performance. The leader should not force the subordinates but develop voluntary contribution from the subordinate side. 5. Self-confidence and Sense of Responsibility. A leader can develop confidence in his subordinates only when he is having faith and confidence in his own abilities. He must be confident that he will be able to tackle every situation successfully. A confident leader only can create confidence in his subordinates. 6. Empathy. Empathy means ability of a person to look at a thing from others point of view. Every person looks at a situation or problem from his/her point of view but we expect the leader to look at the situation from other members point of view. Importance of leadership Helps in Inspiring & Guiding the Employees. Secures Co-operation of the Members of organisation. Creates Confidence. Improves productivity. Improves Job satisfaction. Improves Team-sprit OR Group Cohesion.

TYPES OF LEADERS 1. Intellectual Leaders. Intellectual leaders are those who win the confidence of their followers by their superior intellect or knowledge. Nearly in all big organisation, there are experts whose advice is sought on matters in which they are experts.. 2. Democratic Leaders. A democratic leader is one who acts according to the wishes of his followers. He does what the group wants. He follows the majority opinion as expressed by his group. He holds his leadership position because he is loyal to his group, is always

concerned with their interests, is friendly and helpful to them, and is always ready to defend them them, individually and collectively. 3. Autocratic Leaders. Such a leader dominates and drives his group through coercion, command and the instilling of fear in his followers. Such leaders prefer the use of power in promoting their own ends. They never like to delegate their power for the fear that they may lose their authority in this way. 4. Persuasive leaders. The persuasive leader possesses magnetic personality that enables him to influence his followers to join him in doing things. He is the type who can say, Let go, guys and the whole group responds because they love and respect him, have confidence in him. 5. Creative Leaders. The creative leader uses the technique of circular response so ably described by Follett to encourage ideas to flow from the group to him as well as from him to the group. He draws out the best in his followers without exerting an undue personal influence on the people. 6. Institutional Leaders. An institutional leader holds his position because of force of prestige attached to his office. The position he holds enables him to influence his followers, sometimes because of the habits of obedience that certain followers have, sometimes, because of respect for the position and because of the dependence of the subordinate upon his superior for certain benefits. Features of leadership o o o o o o o o o Influencing process The followers Reciprocal relationship Common goal Situation bound Power based Satisfaction bound Satisfaction of members Scope of leadership

A Standard Business Plan Outline

What information needs to be in your business plan? What is the order of information that will make the most sense to lenders and investors? You can answer these questions with the business plan outlines provided below. What are the standard elements of a business plan? If you do need a standard business plan to seek funding as opposed to a plan-as-you-go approach for running your business, which I describe below there are predictable contents of a standard business plan outline. For example, a business plan normally starts with an Executive Summary, which should be concise and interesting.Is the order important? If you have the main components, the order doesnt matter that much, but heres the sequence I suggest for a business plan. I have provided two outlines, one simple and the other more detailed.

Simple business plan outline 1. 2. 3. 4. 5. 6. 7. 8. Executive Summary: Write this last. Its just a page or two of highlights. Company Description: Legal establishment, history, start-up plans, etc. Product or Service: Describe what youre selling. Focus on customer benefits. Market Analysis: You need to know your market, customer needs, where they are, how to reach them, etc. Strategy and Implementation: Be specific. Include management responsibilities with dates and budgets. Make sure you can track results. Web Plan Summary: For e-commerce, include discussion of website, development costs, operations, sales and marketing strategies. Management Team: Describe the organization and the key management team members. Financial Analysis: Make sure to include at the very least your projected Profit and Loss and Cash Flow tables.

Build your plan, then organize it. I dont recommend developing the plan in the same order you present it as a finished document. For example, although the Executive Summary obviously comes as the first section of a business plan, I recommend writing it after everything else is done. It will appear first, but you write it last. Standard tables and charts There are also some business tables and charts that are normally expected in a standard business plan. Cash flow is the single most important numerical analysis in a plan, and should never be missing. Most plans will also have Sales Forecast and Profit and Loss statements. I believe they should also have separate Personnel listings, projected Balance Sheet, projected Business Ratios, and Market Analysis tables. I also believe that every plan should include bar charts and pie charts to illustrate the numbers. Expanded business plan outline Heres an expanded full business plan outline, with details you might want to include in your own business plan. 1.0 Executive Summary 1.1 Objectives 1.2 Mission 1.3 Keys to Success

2.0 Company Summary 2.1 Company Ownership 2.2 Company History (for ongoing companies) or Start-up Plan (for new companies) 2.3 Company Locations and Facilities 3.0 Products and Services 3.1 Product and Service Description 3.2 Competitive Comparison 3.3 Sales Literature 3.4 Sourcing and Fulfillment 3.5 Technology 3.6 Future Products and Services 4.0 Market Analysis Summary 4.1 Market Segmentation 4.2 Target Market Segment Strategy 4.2.1 Market Needs 4.2.2 Market Trends 4.2.3 Market Growth 4.3 Industry Analysis 4.3.1 Industry Participants 4.3.2 Distribution Patterns 4.3.3 Competition and Buying Patterns 4.3.4 Main Competitors 5.0 Strategy and Implementation Summary 5.1 Strategy Pyramids 5.2 Value Proposition 5.3 Competitive Edge 5.4 Marketing Strategy 5.4.1 Positioning Statements 5.4.2 Pricing Strategy 5.4.3 Promotion Strategy 5.4.4 Distribution Patterns 5.4.5 Marketing Programs 5.5 Sales Strategy 5.5.1 Sales Forecast 5.5.2 Sales Programs

5.6 Strategic Alliances 5.7 Milestones 6.0 Web Plan Summary 6.1 Website Marketing Strategy 6.2 Development Requirements 7.0 Management Summary 7.1 Organizational Structure 7.2 Management Team 7.3 Management Team Gaps 7.4 Personnel Plan 8.0 Financial Plan 8.1 Important Assumptions 8.2 Key Financial Indicators 8.3 Break-even Analysis 8.4 Projected Profit and Loss 8.5 Projected Cash Flow 8.6 Projected Balance Sheet 8.7 Business Ratios 8.8 Long-term Plan

Central Government Policies and Schemes

Genral policies Policy of Reservation Price & Purchase Preference Reservation of Items Licensing Trade Policy Foreign Direct Investment Approval

 NRI Investment Approval Foreign Investment Regulations Labour Policies Industrial policies

Priority Sector Policy for Tiny Sector, Cottage & Village Industries, Handicrafts, Khadi & Handlooms Development of Backward Areas North Eastern Policy Women Entrepreneur

FUNDING & FINANCE Taxation-Excise Duty Credit Policy MODERNISATION & TRAINING Quality Standard Policy

ENERGY & ENVIRONMENT Pollution Control Measures Environmental Control

RESERVATION POLICY Items Reserved for MSEs Purchase | Items Reserved for MSEs Manufacture

Reservation of products for exclusive manufacture in the small scale sector was introduced for the first time in 1967 with the reservation of 47 items. This number increased progressively as under: February, 1970 - 55 February, 1971 - 128 November, 1971 - 124 February, 1974 - 177 June, 1976 - 180 April, 1978 - 504

After the introduction of National Industrial Classification (NIC) code the list was recast. As a result, the list of reserved items expanded from 504 to 807 in 1978 and was 836 in 1989. Out of this, 39 items were dereserved in four phases viz., 15 items on 3.4.1997, 9 items on 3.2.1999, 1 item on 1.1.2001 and 14 items on 29.6.2001. Subsequently, 51 items were dereserved in May 2002, 75 items in May 2003 and 85 items in October, 2004,108 items in March 2005, 180 items in May 2006, 87 items in January 2007, 125 items in March 2007. As of March, 2007, 114 items are reserved for exclusive manufacture in the small scale sector (see complete list). Reservation affords support to SSIs against competition from medium/large/ multinational companies. The policy received statutory backing in 1984 under Section 29B of Industries (Development & Regulation) Act, 1951. Reservation/dereservation is a continuous process. The Advisory Committee on Reservation constituted under the Industries (Development & Regulation) Act, 1951 recommends items to be added and deleted from the reserved list including bringing

changes in nomenclature. The Advisory Committee on Reservation consists of the following:Secretary (MSME). Chairman Secretary (IP&P) - Member Secretary (Commerce) - Member Adviser (VSI), Planning Commission - Member Additional Secretary & DC (MSME) - Member Secretary Non-SSI units (i.e. medium/large units including multi-nationals) can manufacture reserved items if they have obtained a carry on business license or accept an export obligation of 50% of their production. As only manufacturing of items is reserved, trading in these items is not a violation of the reservation policy.