Arrangement of Finance

Funding Requirements

Long Term Short Term

To acquire fixed Assets like Land &
building, Plant & machinery for security
deposits.
Term Loan for Fixed Assets, State
Finance Corps like KFSC and Commercial
Banks
Working capital in form of Key Loan,
Cash, Credit, Bills Discounting
Rate of interest Depends on The amount
of the loan sanctioned.

Concept of Projects and Classification

A project is a very critical aspect in the life of an Entrepreneur rather it is a

important work which he can think of a success in his enterprise. The concept of
project as it is rightly said that it is intensively worn with all Socio-Economic and
cultural activities. The meaning of the project can be termed as

a) speculative Imagination

b) Scheme of something to be done

c) A proposal for undertaking.

Hence innovation and vision for an internal aspect of project proposes ECAFE F
Report by a group of experts.

The smallest unit of investment activity to be considered the case of programming.

World Bank : Project as an approved for a capital investment to develop facilities to

provide goods and services.

Little and Mirles : Any scheme or a part of a scheme for investing resources which
can be reasonably analyzed and evaluated as an independent unit. It may be any
system of investment activity which can separately be evaluated.

Gitinger: the whole complex of activities involved using resources to gain benefits.

In AGRI products we have sub projects concerning a) Land Development b)

Irrigation c) Soil Conservation d) Fertilizers e) Seeds etc…
In such projects we think of an Investment activity we expend resources to create a
producing asset. We realize benefits over an extended period of time. Hence the
project has to be understood and considered in the term of economic behavior. Dr
Albert O. Hirchman “the development of project considers purposefulness same
minimum size. A special location, the introduction of something qualitatively new
and the expectation that a sequence of further development moves will be set in
motion. Development projects are privileged of the Developed process”

“Scientifically evolved work plan derived to achieve a specific objective with a

specified period of time. The 3 basic attributes are 1) Course of action. 2) specific
objectives. 3) defined time perception

A project is a productive activity which can be analyzed, appraised and monitored

independently.

A Multi purpose river valley – A Gitinger

A project has :

• Specific objective in terms of a Geographic location

• Specific starting and ending point

• Most importantly to serve a target population by achieving good returns on

their investments.

• It has an organ to implement its objectives as shown.

Basic Components of a project

Objectiv
e

Size Internal
Rate of
returns

A
scheme

organization Social benefits

Characteristics of a project:

1. Investment Pattern

2. Benefits or gains

3. Time limit &

4. Location

It should be enabled to

1. Planning

2. Financing

3. Implementation as an unit where both cost and returns are accessible /

measurable.

A well plan includes

• A correct consideration of alternatives

• Identification of key issues

• Proper participation

• Compassion and enforcement

Now from resources allocation point of view, a project can be termed as a proposed
involving comparing invest for the purpose of developing a facility to provide goods
and services. A project nay involve establishment of a new plant for manufacture of
steel, in goods it may

a) Involves provision of additional EDU facilities To a particular age company is

a community

b) Aim at developing infrastructure facilities for the MCTG or Agri commodities.

Hence a project involves allocation of resources and generation of resources, goods

and services.