On National Teacher Day, meet the 2024-25 Kenan Fellows
Setting up a new enterprise
1. Setting up a new
enterprise
What is an enterprise?
Idea
Role Of Innovation
Feasibility Study
Business Size
Factors
Government Policies
2. The word ENTERPRISE describes the actions of
someone who shows some initiative by taking a risk by
setting up, investing in and running a BUSINESS. Look
again at two key words above – initiative and risk. A
person who takes the initiative is someone who "make
things happen".
What is an enterprise?
3. In general sense, the term opportunity implies a
good chance or a favorable situation to do
something offered by circumstances.
In the same vein, business opportunity means a
good or favorable change available to run a
specific business in a given environment at a
given point of time.
Idea Generation And Opportunities
4. Their own or partners’ past experience in that
business line.
The Government’s promotional schemes and facilities
offered to run some specific business enterprises.
The high profitability of products.
The availability of inputs like raw materials, labour,
etc. at cheaper rates.
Factors To Identify Opportunities
5. The ideas for selecting the most promising opportunity to
be pursued by him/her as an enterprise:-
Knowledge of potential customer needs.
Scope for producing substitute product.
Meeting with the Government agencies.
Idea Generation
6. Consumers:-No business enterprise can be
thought of without consumers. An entrepreneur
needs to know what the consumers actually want so
that he/she can offer the product or service
accordingly.
Source of ideas
7. Existing Products and Services:-One way to have
an enterprise idea may be to monitor the existing products
and services already available in the market and make a
competitive analysis of them.
8. Distribution Channels:-
They are called, market
intermediaries, also serves as
a very effective source for
new ideas for entrepreneurs.
10. Research and development:-R&D can be carried out
in-house or outside the organization. R&D activity suggests
what and how a new or modified product can be produced
to meet the customers’ requirements.
11. Focus groups:-A group called ‘focus group’
consisting of 6-12 members belonging to various
socio-economic backgrounds are formed to focus
on some particular matter like new product idea.
Methods Of Generating Ideas
12. There are two principles that underlie brainstorming.
One is differed judgment, by which all ideas are
encouraged without criticism and evaluation.
The second principle is that quantity breeds quality.
The brainstorming session to be effective needs to
work like a fun, free from any type of compulsions and
pressures.
Brainstorming
13. Creativity and innovation are the heart in the
spirit of an enterprise. Creativity is the starting
point for innovation while innovation is the
implantation of creative inspiration.
INNOVATION=CREATIVITY+RISK TAKING
Role Of Innovation And Creativity
14. Perspective of Creativity:-
Ability to create, bring into existence, to
produce through imaginative skills something
new.
Ability to generate new ideas by combining,
changing, or reapplying existing ideas.
Creativity
15. Innovation is the basis of all competition advantages,
the means of anticipating and meeting customers
needs and the method utilization of technology.
Forms of innovation and their necessity:-
It includes changes and improvement to methods
which contributes to increase productivity.
Innovation in products or services these lead to
increase in effective demand which encourages increase
in investment and employment.
Innovation
16. In its simplest terms, the two criteria to judge feasibility
are cost required and value to be attained.
Feasibility Study
17. Outcome:
A well-designed feasibility study should provide a
historical background of the business or project, a
description of the product or service, accounting
statements etc. Generally, feasibility studies precede
technical development and project implementation.
Feasibility Study
18. Technical Feasibility
Economic Feasibility
Legal Feasibility
Operational Feasibility
Schedule Feasibility
Financial Feasibility
Resource Feasibility
Factors Considered For Feasibility Study
19. A business plan is a formal statement of business goals,
reasons they are attainable, and plans for reaching them. It
may also contain background information about the
organization or team attempting to reach those goals.
Business Plan
20. Concept-size of business refers to the scale of
operations and its importance because it affects the
cost operations and input required.
Total Assets
Capital Required
Number of workers employed
Capacity of plants
Quantity of materials.
Concept Size
21. Availability of raw materials
Proximity to the market
Labour supply
Transportation and Communication
Topography and climate
Supply of capital
Government policy
Factors Affecting Location Decisions
22. Factors affecting size of business:-
Type of industry
Nature and variety of product
Size of the market
Capital requirements
Ability and policy of owners
Cost of transport
Size Of Business
23. Balanced Regional Development:-
To reduce regional disparities
To provide employment opportunities
To ensure optimum utilization of local resources
To safe guard industries against external attacks
Need For Government Policy
24. An institutional arrangement for building up basic
infrastructure and common service facilities for
development of industrial units.
Hence, it’s a planned clustering of industrial units
offering standard factory accommodation and
variety of service and facilities to occupants.
Industrial Estates
25. Selection Of Line
Of Business:-
Line of business-specific
products or services to be
offered.
Manufacturing or trading
one.
Decisions will depend upon
the market prospect,
market size, capacity,
ability and level of
expertise of entrepreneur.
Various Factors To Be Considered
26. Size of the firm:-
Economies of scale favor a large size whereas others tend to
restrict the scale of operation.
Location of business enterprise:-
This revolves around factors like availability of raw materials,
skilled labour, concentration of buyers and natural factors,
political factors.
27. Choice of form of ownership:-
With respect to ownership, the business organization
may take the form of a sole proprietorship, partnership,
or joint company.
The choice of the suitable form of ownership will
depend on such factors as the line of business, capital
requirement, liability of owners, division of profit,
transferability of interest and so on. Tax considerations
also pay a major role.
28. Financing venture:-
Providing the necessary capital for starting as well as for
continuing the proposed business.
Capital is required for investment in fixed assets like
land, building, machinery and equipment and in current
assets like raw materials, book debts, stock of finished
goods, etc. Capital is also required for meeting day-to-
day expenses.
29. Physical facilities:-
Machines and equipment, building and supportive services.
The decision relating to this factor will depend on the nature
and size of business, availability of funds and the process of
production.
30. Plant layout and production systems:-
Layout means the physical arrangement of machines
and equipment needed to manufacture a product.
Competent and committed worked force:-
A motivated and dedicated workforce is what every
organization needs to translate its goods and
capabilities into reality.
31. Tax planning:-
Various taxes like income tax, wealth tax, excise
duties, sales tax etc are levied and the tax statues
do offer some concessions in order to further
economic objectives of the state policies.
Launching the enterprise:-
Mobilizing various resources, fulfilling necessary
legal formalities, starting the production process
and initiating the sales promotion campaign.
32. The term Special Economic Zone(SEZ) is an area in which
business and trade laws differs from the rest of the country.
AIMS:-
To develop infrastructure facilities in the country.
To increase employment through SEZ.
To reduce imbalance in financial development.
Relevant Government Policies
33. To improve international trade and get foreign currency.
To attract foreign investment(FDI)
Generation of additional economic activity.
Promotion of exports of goods and services.
Relevant Government Policies
34. Exemption from Central Sales Tax, Service Tax,
Custom/Excise Duties.
100% Income Tax exemption on export-import for SEZ
units under section 10AA of the Income Tax Act for
the first 5 years, 50% for the next 5 years.
Duty free import/domestic procurement of goods.
Incentives And Facilities Offered To The
SEZs
36. India’s Map with the following information:-
Special Economic Zones
Kandla SEZ
Cochin SEZ
Madras SEZ
Visakhapatnam SEZ
Falta SEZ
Noida SEZ
Pictures
37. Micro, Small and Medium enterprises(MSME)
Prime Minister’s Employment Generation
Program(PMEGP)
“Startup India, Stand Up India”.
“Make in India”
Other Government Schemes
