ENTREPRENEURSHIP

SUMANTA SHARMA

BUSINESS AND PROFESSION

BUSINESS

IS AN ECONOMIC
ACTIVITY WHICH INVOLVES
PRODUCTION,DISTRIBUTION AND
EXCHANGE OF GOODS AND
SERVICES FOR A VALUE.
PROFESSION INVOLVES RENDERING
CUSTOMISED SERVICES OF AN
EXPERT NATURE

CHARACTERISTICS OF A
BUSINESS
INVOLVES

SALE,TRANSFER OR
EXCHANGE OF GOODS AND
SERVICES
REGULARITY IN DEALINGS
PROFIT MOTIVE
RISK OR UNCERTAINITY

SETTING UP A SSI
AN

INDUSTRIAL UNDERTAKING
WHERE THE INVESTMENT IN PLANT
AND MACHINERY EXCLUDING LAND
AND BUILDING DOES NOT EXCEED A
CRORE.

UNIT WHICH BY VIRTUE OF AN

ORGANIC GROWTH EXCEEDS THE
INVESTMENT LIMIT BY ONE CRORE
CAN CONTINUE TO REMAIN IN THE
SSI CATEGORY BY OBTAINING A
CARRY ON BUSINESS LISCENSE

SPECIAL CATEGORIES OF SSI

COTTAGE

INDUSTRIES
ANCILLIARY UNITS
EOU
SSSBE

ITEMS RESERVED FOR

EXCLUSIVE PRODUCTION IN SSI
326

ITEMS (SPORTS
GOODS,BYCYCLE PARTS,LEATHER
PRODUCTS ETC..)ARE RESERVED
FOR EXCLUSIVE PRODUCTION IN
SSI.
A MEDIUM OR A HEAVY INDUSTRIES
CAN PRODUCE THESE ITEMS BY
ACQUIRING INDUSTRIAL LISCENSE.

FDI IN SSI
FDI

IN A SMALL SCALE UNIT

ALLOWED IS 24%

REGISTRATION DETAILS
UNIT

REGISTRATION
CERTIFICATE FROM THE
DIRECTORATE OF STATE
INDUSTRIES OR DISTRICT
INDUSTRIES CENTER
OWNERSHIP REGISTRATION
(PROPRIETORSHIP,PARTNERSHIP,
HUF, COOPERATIVE SOCIETY,PRIVATE
AND PUBLIC LIMITED COMPANIES)

REGISTRATION DETAILS
NOC
EXCISE
SALES

TAX
POWER
EXPORT
DIRECTORATE OF PUBLIC HEALTH
INSPECTOR OF FACTORIES

LIST OF INDUSTRIES RESERVED

FOR PUBLIC SECTOR
ATOMIC

ENERGY
RAILWAY TRANSPORT

LIST OF INDUSTRIES FOR

WHICH INDUSTRIAL LICENSING
IS COMPULSORY
DISTILLATION AND BREWING OF
ALCHOHOLIC DRINKS
CIGARS AND CIGARETTES
ELECTRONIC AEROSPACE AND
DEFENCE EQUIPMENTS
INDUSTRIAL EXPLOSIVES
HAZARDOUS CHEMICALS
DRUGS AND PHARMACEUT ICALS

TEST
IF

YOU HAD ONE MATCH STICK AND

ENTERED A DIMLY LIT ROOM WHERE
THERE WAS A KEROSENE LAMP,AN
OIL HEATER ,AND A WOOD
BURNING STOVE ,WHICH WOULD
YOU LIGHT FIRST?
ANSWER THE MATCH

HOW CAN A MAN GO EIGHT DAYS

WITHOUT SLEEP?
ANSWER HE SLEEPS AT NIGHT

HOW CAN YOU LIFT AN ELEPHANT WITH

ONE HAND?

ITS NOT A PROBLEM,SINCE YOU WILL

NEVER FIND AN ELEPHANT WITH ONE
HAND.

 SOME

MONTHS (LIKE OCTOBER)

HAVE 31 DAYS.ONLY FEBRUARY HAS
PRECISELY 28(EXCEPT IN A LEAP
YEAR).HOW MANY MONTHS HAVE 30
DAYS
ANSWER 11 MONTHS

FARMER HAD 18 PIGS,AND ALL

BUT 7 DIED .HOW MANY WERE
LEFT/
ANSWER 7
IN

WHICH STATE IS BAY OF

BENGAL?
ANSWER LIQUID STATE

 TWO

WOMEN PLAY CHECKERS .THEY

PLAY FIVE GAMES WITHOUT A DRAW
GAME ,AND EACH WOMAN WINS THE
SAME NUMBER OF GAMES.HOW CAN
THIS BE?
ANSWER THEY ARENT PLAYING
EACH OTHER.

 WHAT

WORD WAS MISPELLED IN

THIS TEST?
ANSWER MISPELLED IS
MISSPELLED

ENTREPRENEURIAL
JOURNEY

DECISION

Myths about great ideas

Great ideas just appear out of nowhere .

The reality is that the best ideas are outcome of a

structured, systematic research

There are no stupid ideas .

Sometimes, the most powerful ideas come from what, at

first glance might seem as stupid or illogical .

Customers will tell you what to do if you will only

listen.

The only problem with this belief is that although customers

can help identify unmet needs, theres much more involved
with making a great idea workable than simply listening to
customers.

Myths about great ideas

We can generate all the ideas well ever need if we just sit
down at a meeting

Getting people together for a meeting to discuss ideas seems like a great
thing to do, however, great ideas are best shaped through an ongoing
dialogue, not simply relegated to a specific place and time.

Getting ideas isnt a problem; implementing them is

There is a misconception that generating ideas is the easy
part of the process and that putting those ideas into action
is the difficult part. However, the reality is that problems
with implementation arise from not screening carefully
enough the ideas that are generated. If this was done, a lot
of frustration could be minimized as ill thought ideas could
be screened out before even being implemented.

source: S Greco, Where great ideas come from,)

POTENTIAL SOURCES OF IDEA

GENERATION
PERSONAL INTEREST OR HOBBIES
BRAINSTORMING
WORK EXPERIENCE/KNOWLEDGE/SKILLS
INTERVIEW PEOPLE TO DETERMINE
UNFILLED NEEDS AND GAPS IN THE
MARKET
AN EVENT IS AN OPPORTUNITY
A PROBLEM IS AN OPPORTUNITY
WASTE IS AN OPPORTUNITY

POTENTIAL SOURCES OF IDEA

GENERATION

REVIEW THAT WHICH HAS FAILED

BUY AN IDEA
CONSIDER IMPORT REPLACEMENT/TECHNOLOGY
REVIEW TRADE MAGAZINES/INTERNET
CHECK OUT FOREIGN SUPPLIERS,CONSULATES
ETC
ADD VALUE
BREAK BULK
SUBSTITUTE,MODIFY,REARRANGE AND
SYNERGISE EXISTING PRODUCTS /SERVICES
CREATE OPPORTUNITY

IDEA EVALUATION
To

minimize risk and maximize

return
To identify strengths and weaknesses
of ideas
To make best use of limited
resources

IDEA EVALUATION TECHNIQUES

FEASIBILTY STUDY

A. Introduction, description of product or

service.

Brief description of the proposed entrepreneurial

venture.
Brief history of the industry.
Information about the economy and important
trends. (FDI, Reservations etc...)
Complete list of goods or services to be provided.
Strengths and weaknesses of the business.
Ease of entry into the industry including
competitor analysis.
A brief about the production process.

IDEA EVALUATION TECHNIQUES

FEASIBILTY STUDY

B. Management considerations
Personal expertise strengths and
weaknesses.
Proposed organizational design.
Potential staffing requirement.
Inventory management methods

- Equipment needs.

IDEA EVALUATION TECHNIQUES

FEASIBILTY STUDY C.Marketing

considerations

Target market identification (Who, Where)

Price determination (competition, price lists
etc...)

Promotion plans

IDEA EVALUATION TECHNIQUES

FEASIBILTY STUDY

D.Financial considerations

Start up costs.
Working capital requirements
Loans/equity
Collateral
Break even analysis.

Equipment and building financing.

IDEA EVALUATION TECHNIQUES

FEASIBILTY STUDY Legal

considerations

Proposed business structure / ownership

Contracts,liscences and other legal
documents
Buyout and succession issues.

Tax considerations

DRIVERS OF THE NEW ECONOMY

ROLE

OF INFORMATION
TECHNOLOGICAL TRENDS
GLOBALIZATION
CHANGING DEMOGRAPHICS

Worlds largest market by 2015

Country
China
India
United states
Russia
Indonesia
Nigeria
Pakistan
Brazil
Bangladesh
Mexico
Japan
Ethiopia
Vietnam
Philippines
Zaire

Population in millions)
1,513
1442
300
300
286
281
267
246
235
150
127
127
117
112
99

IMPLICATIONS OF THESE
DRIVING FORCES
Continual

turbulence and change

Reduced need for physical asset
Vanishing distance
Compressed time