ENTREPRENEURSHIP DEVELOPMENT LAB SM54

1Entrepreneurship Development
Subhash Mahla (M14EE045) s.m.5486956@gmail.com
Baldev Ram Mirdha Institute of
Technology Jaipur
Department of Electrical Engineering
2017
Entrepreneurship Development Lab
Submitted By: Submitted To:
Name : Subhash Mahla XYZ
Collage ID : M14EE045
Year : 3rd
Semester : 6th

Contents
Chapter 1 ……………………………………………………………….……. 1-9
1.1. Definition of Entrepreneur………………….……………………..…….………….. 1
1.2. Qualities of a Successful Entrepreneur ……………….……………………………. 2
1.3. Charms of being an Entrepreneur ..………………………………………………… 4
1.4. Achievement- Motivation ….………………………..…...…………………………. 7
1.5. Leadership and Entrepreneurial Competencies ……………...……………………… 7
Chapter 2 ……………………..................................................................... 10–16
2.1 Decision-Making ...................................................................................................... 10
2.2 Procedures and Formalities for Starting own Business ............................................. 12
2.3 Financial Support System …………………...............................................................14
Chapter 3 ………………………................................................................. 17–28
3.1 Identification and Selection of Business Opportunities …………………………… 17
3.2 Market Survey............................................................................................................ 20
3.3 Business Plan ............................................................................................................. 21
3.4 Implementation and Customer Satisfaction .............................................................. 27
Chapter 4 …………..……………………………..…………..………….... 28-39
4.1 Business Crises ….…………………………………………………………………. 28
4.2 Problem-Solving Attitude ….………………………………………………………. 32
4.3 Communication Skill ...…………………………………………………………….. 36
Chapter 5 ………………………………………………..……………..….. 40-50
5.1 Knowledge Based Enterprises …………………...……………………………….... 40
5.2 Scope of Entrepreneur in Present Context …………………..…………………….. 42
5.3 Area of Future Entrepreneurship ……….………………………………………….. 44
Chapter 6 ………………………..………………………….……………... 51-54
6.1. Marketing & Sales Promotion …………………………………………………….... 51
6.2. Techno-Economic Feasibility Assessment by Preparation of Preliminary & Detailed Project
Report …………………………………………………………………….... 52

Chapter 1:
Introduction of Entrepreneurship
Entrepreneurship has traditionally been defined as the process of
designing, launching and running a new business, which typically begins as
a small business, such as a start up company, offering a product, process or
service for sale or hire, and the people who do so are called 'entrepreneurs'. It has
been defined as the "...capacity and willingness to develop, organize, and manage
a business venture along with any of its risks in order to make a profit." While
definitions of entrepreneurship typically focus on the launching and running of
businesses, due to the high risks involved in launching a start-up, a significant
proportion of businesses have to close, due to a "...lack of funding, bad business
decisions, an economic crisis -- or a combination of all of these" or due to lack of
market demand. In the 2000s, the definition of "entrepreneurship" has been
expanded to explain how and why some individuals (or teams) identify
opportunities, evaluate them as viable, and then decide to exploit them, whereas
others do not, and, in turn, how entrepreneurs use these opportunities to develop
new products or services, launch new firms or even new industries and create
wealth. Recent advances stress the fundamentally uncertain nature of the
entrepreneurial process, because although opportunities exist their existence
cannot be discovered or identified prior to their actualization into profits. What
appears as a real opportunity ex ante might actually be a non-opportunity or one
that cannot be actualized by entrepreneurs lacking the necessary business skills,
financial or social capital.
Traditionally, an entrepreneur has been defined as "a person who starts,
organizes and manages any enterprise, especially a business, usually with
considerable initiative and risk”. “Rather than working as an employee, an
entrepreneur runs a small business and assumes all the risk and reward of a given
business venture, idea, or good or service offered for sale. The entrepreneur is
commonly seen as a business leader and innovator of new ideas and business
processes." Entrepreneurs tend to be good at perceiving new business
opportunities and they often exhibit positive biases in their perception (i.e., a bias
towards finding new possibilities and seeing unmet market needs) and a pro-risk-
taking attitude that makes them more likely to exploit the opportunity.
An entrepreneur is typically in control of a commercial undertaking,
directing the factors of production–the human, financial and material resources–
that are required to exploit a business opportunity. They act as the manager and
oversee the launch and growth of an enterprise. Entrepreneurship is the process
by which an individual (or team) identifies a business opportunity and acquires
and deploys the necessary resources required for its exploitation. The exploitation

of entrepreneurial opportunities may include actions such as developing
a business plan, hiring the human resources, acquiring financial and material
resources, providing leadership, and being responsible for the venture's success
or failure. Economist Joseph Schumpeter (1883–1950) stated that the role of the
entrepreneur in the economy is "creative destruction"–launching innovations that
simultaneously destroy old industries while ushering in new industries and
approaches. For Schumpeter, the changes and "dynamic disequilibrium brought
on by the innovating entrepreneur ... [are] the ‘norm’ of a healthy economy.
Definition of Entrepreneur:
The term entrepreneur is defined as an individual who organizes or operates a
business or businesses. Credit for coining this term generally goes to the French
economist Jean-Baptiste Say. However, the Irish-French economist Richard
Cantillon defined the term first in his Essai sur la Nature du Commerce en
Général, or Essay on the Nature of Trade in General, a book William Stanley
Jevons considered the "cradle of political economy". Cantillon used the term
differently; biographer Anthony Breer noted that Cantillon saw the entrepreneur
as a risk-taker while Say considered the entrepreneur a "planner". Cantillon
defined the term as a person who pays a certain price for a product and resells it
at an uncertain price: "making decisions about obtaining and using the resources
while consequently admitting the risk of enterprise." The word first appeared in
the French dictionary entitled "Dictionnaire Universel de Commerce" compiled
by Jacques des Bruslons and published in 1723.
Qualities of a Successful Entrepreneur:
Successful businesspeople have many traits in common with one another.
They are confident and optimistic. They are disciplined self starters. They are
open to any new ideas which cross their path. Here are ten traits of the successful
entrepreneur.
1. Disciplined
These individuals are focused on making their businesses work, and
eliminate any hindrances or distractions to their goals. They have overarching
strategies and outline the tactics to accomplish them. Successful entrepreneurs
are disciplined enough to take steps every day toward the achievement of their
objectives.

2. Confidence
The entrepreneur does not ask questions about whether they can succeed
or whether they are worthy of success. They are confident with the knowledge
that they will make their businesses succeed. They exude that confidence in
everything they do.
3. Open Minded
Entrepreneurs realize that every event and situation is a business
opportunity. Ideas are constantly being generated about workflows and
efficiency, people skills and potential new businesses. They have the ability to
look at everything around them and focus it toward their goals.
4. Self Starter
Entrepreneurs know that if something needs to be done, they should start
it themselves. They set the parameters and make sure that projects follow that
path. They are proactive, not waiting for someone to give them permission.
5. Competitive
Many companies are formed because an entrepreneur knows that they can
do a job better than another. They need to win at the sports they play and need to
win at the businesses that they create. An entrepreneur will highlight their own
company’s track record of success.
6. Creativity
One facet of creativity is being able to make connections between
seemingly unrelated events or situations. Entrepreneurs often come up with
solutions which are the synthesis of other items. They will repurpose products to
market them to new industries.
7. Determination
Entrepreneurs are not thwarted by their defeats. They look at defeat as an
opportunity for success. They are determined to make all of their endeavors
succeed, so will try and try again until it does. Successful entrepreneurs do not
believe that something cannot be done.
8. Strong people skills
The entrepreneur has strong communication skills to sell the product and
motivate employees. Most successful entrepreneurs know how to motivate their
employees so the business grows overall. They are very good at highlighting the
benefits of any situation and coaching others to their success.

9. Strong work ethic
The successful entrepreneur will often be the first person to arrive at the
office and the last one to leave. They will come in on their days off to make sure
that an outcome meets their expectations. Their mind is constantly on their work,
whether they are in or out of the workplace.
10. Passion
Passion is the most important trait of the successful entrepreneur. They
genuinely love their work. They are willing to put in those extra hours to make
the business succeed because there is a joy their business gives which goes
beyond the money. The successful entrepreneur will always be reading and
researching ways to make the business better.
Successful entrepreneurs want to see what the view is like at the top of the
business mountain. Once they see it, they want to go further. They know how to
talk to their employees, and their businesses soar as a result.
Charms of being an entrepreneur:
1. DEFINITION An individual who, rather than working as an employee,
runs a small business and assumes all the risk and reward of a given
business venture, idea, or good or service offered for sale. The entrepreneur
is commonly seen as a business leader and innovator of new ideas and
business processes. Entrepreneurs play a key role in any economy. These
are the people who have the skills and initiative necessary to take good new
ideas to market and make the right decisions to make the idea profitable.
The reward for the risks taken is the potential economic profits the
entrepreneur could earn.
2. 5 Skills To Be a Successful Entrepreneur • Time Management Skills • Self-
motivation Skills • Administration Skills • Financial Know-how • Sales
And Marketing Skills
3. Independence • One of the reasons for being an entrepreneur is that you get
to work for yourself rather than working for someone else • Freedom to try
new things • You can schedule day’s proceedings according to your
schedule
4. Wealth • Not tied down to fixed income • By working hard and smart, you
can reward yourself with more money • More money can help you in
expanding your business in diverse areas
5. Relationship building • Helps in meeting new people and travel to new
places • Helps to partner with other business owners • Helps to increase
knowledge about outside world

6. Control • You are the owner of your company • You have the rights to take
control over decisions • Freedom, flexibility and social responsibility
drives people to work hard
7. Satisfaction • Your service or product can benefit many customers •
Knowing that your work touches the lives of many other human beings
gives a wonderful feeling at the end of the day
8. Continuous Improvement • To improve your product, service you need to
continuously improve on what you know and how you do things • You will
learn new things • Past business decisions can help in improving future
strategy decisions
9. Work from home • Work from home eliminates hours of commuting •
Time saved can be utilized in doing something valuable for the company •
Freedom to dress in whatever way one feels comfortable in
10.Differences between wage employment and self employment Basis of
Difference Wage Employment Self Employment Nature Self-Saturation
Self-Actualization Scope Limited Unlimited Tendency Routine or Status-
Quo Imaginative, Creative or Innovative Earning Fixed
Generating/Flexible Satisfaction Through compliance of rules/Procedures
Through converting one’s creativity to reality Status Employee Employer
11.Major charms of being an entrepreneur Opportunity to create one’s own
destiny • Owning a business provides entrepreneurs both the independence
and opportunity to do and achieve what is important to them •
Entrepreneurs know that they are the driving forces behind the success of
their business • They believe in Swami Vivekananda’s dictum: “You are
the creator of your own destiny”
12.Opportunity to make a difference • Entrepreneurs start their business
because they see an opportunity before them to make a dent and difference
in the cause that is important to them • It may be providing low-cost houses
to the middle- class families or establishing a recycling programme to
preserve the earth’s limited resources • Example: Mr. Deepak S. Parikh
(pic), CEO of Housing Development and Financing Corporation Limited
(HDFC)
13.Opportunity to reach one’s full potential • Owning a business gives
entrepreneurs a sense of empowerment to do what they can • In his ‘Need
Hierarchy Theory of Motivation,’ Abraham Maslow termed it ‘Self-
Actualization’ • Doing business becomes entrepreneurs’ play. It also
becomes an instrument for entrepreneur’s self-expression and self-
actualization • Example: N. R. Narayana Murthy who left the job of a
System Programmer in the prestigious Indian Institute of Management,
Ahmedabad to start his own business with three other partners, says,
“Starting my own business was a sort of spiritual awakening. I found out
what was important to me-being follow my own interests and harness it to
its fullest extent possible”

14.Opportunity to reap impressive profits • Industrial surveys show that the
entrepreneurs earn much more income than if they work for others, say
some organization • Michael Dell, the owner-entrepreneur of Dell
Computer Corporation is one such example of richness reaching the list of
the wealthiest people in the United States. (Late) Dhiru Bhai Ambani and
N. R. Narayana Murthy, among others, are such examples of rich
entrepreneurs in India
15.Opportunity to contribute to the society • Entrepreneurs by running their
businesses in an honest and transparent manner and serving the customers
faithfully earn recognition and respect in their communities • They
contribute to the well being of the society as well by providing jobs to
unemployed, utilizing idle resources, reducing differences in the levels of
development of different regions, and producing and providing goods and
services to the people in the society • The well-known entrepreneur N. R.
Narayana Murthy started Infosys Foundation to render services in the area
of education and health care. It’s Chairperson, Sudha Murty, the wife of
Narayana Murthy says: “We have a responsibility to give back to the
society. Wealth is only a means to an end and we are just trustees of that
wealth.”
16.Opportunity to do what one enjoys • Entrepreneurial history is replete with
the instances that most of the entrepreneurs entered into business because
they have an interest in that line of work • For such entrepreneurs, Harvey
McKay’s dictum seems worth quoting: “Find a job doing what you love,
and you’ ill never has to work a day in your life. The journey rather than
the destination is the entrepreneur’s greatest reward.”
17.Shri Dhirubhai Ambani Dhirubhai Ambani’s life inspires us to dream and
dare. He went to Mumbai with Rs 15,000/- to start his yarn business and
lived with his family of seven people in a one-room tenement in Mumbai.
He created Reliance Industries Limited, i.e. the India’s biggest private
sector organization. Somefamousentrepreneurs
18.Dr. Karsan Bhai Patel The Nirma man was an ordinary factory chemist in
Gujarat Mineral Development Corporation (GMDC). He started
conducting experiments in his kitchen to offer an affordable detergent to
rural harried housewives struggling to balance to their monthly budgets.
His efforts finally yielded a pale, whitish-yellow detergent powder that he
named ‘Nirma’, after his then one-year old daughter ‘Niranjana.’ Today
Nirma is one of the world’s biggest detergent brands. It sells over 8 lakh
tones of detergent product annually. It holds 40% of the Indian market with
turnover of more than Rs 2,500/- crores.
19.Lakshmi Mittal The son of a scrap dealer today is the world’s largest
producer of steel having plants in 15 countries including India producing
18 times more steel than Tata Steel Co. Also his companies make two and
a half times entire steel production of India.

20.Opportunities available for prospective entrepreneurs • Pottery • Repair of
mobile phones, electronic and electrical goods • Hair Stylist •
Entertainment industry • Taxi Driver • Carpenter • Mason • Plumber •
Armed security guard • Vehicle cleaner and washer
• Gardener • Tractor Operator • Paddy Farmer • Stitcher (Leather
goods and garments) • Hand Embroiderer • Beautician • Rural
tourism
Achievement- Motivation:
Entrepreneurship is a major factor in the national economy; thus, it is
important to understand the motivational characteristics spurring people to
become entrepreneurs and why some are more successful than others. In this
study, we conducted a meta-analysis of the relationship between achievement
motivation and variables associated with entrepreneurial behavior. We found that
achievement motivation was significantly correlated with both choice of an
entrepreneurial career and entrepreneurial performance. Further, we found that
both projective and self-report measures of achievement motivation were valid.
Finally, known group studies yielded a higher validity coefficient than did
individual difference studies.
Achievement depends on how badly one wants to achieve. The need for
achievement, therefore, plays an important role in making an entrepreneur as
successful. It is an inner spirit that activates an entrepreneur to strive for success.
In simple terms, need for achievement is the desire to do well. The empirical
evidences support the hypotheses that need for achievement contributes to
entrepreneurial success. Hence, there is the need for developing achievement
motivation for developing entrepreneurship in an economy.
Leadership:
1. The successful leader has a vision:
Think things through and know where you want to go and how you want
to get there. Work with others to ensure a vision is followed through. Direct the
actions and resources toward making it a reality.
2. The successful leader communicates well:
Articulate a vision clearly to others. Encourage two-way communication
between managers and non-managers and always be available to others. Strive
to be succinct and specific about directions and instructions. Above all, a good
leader avoids generalizations and ambiguities that can lead to misunderstanding,
conflict and poor performance.

3. The successful leader supports and guides the employees:
Start by helping others clarify and achieve goals by identifying and
removing any obstacles. Provide the resources (time, money, people, information
and equipment) needed to complete the task. Don’t reprimand others who make
mistakes when taking a well-calculated risk. Instead, critique and analyze what
went wrong and what went right. Next, work with the employee to correct the
error. Decide whether another attempt at a previous goal is necessary, and offer
encouragement if it is. During the entire process, provide appropriate feedback to
ensure positive attitudes and actions. Serve as a model of good attitude and use
approaches that others can emulate.
4. The successful leader believes in his/herself:
A good leader possesses a strong sense of confidence, built upon years of
learning, experimenting and at times failing — but always growing. Be aware of
personal strengths and limitations, and demonstrate those skills and talents
without boasting. Assume responsibility for faults and personal errors without
hiding them or blaming others, and know that if a mistake occurs, it does not
equate inadequacy. A successful leader believes that he or she can turn around a
negative situation by re-examining the variables and other circumstances — with
input from others, when necessary.
5. The successful leader creates the atmosphere that encourages others to grow
and thrive:
Know that no one individual possesses all of the answers. By appreciating
the role that motivational techniques can play in improving employee
performance, you can work with others to increase organizational productivity
and improve individual job satisfaction. Here are some tips on how to create a
motivationalatmosphere:
• Ask people their opinion rather than telling them yours.
• When people ask you for solutions, have them come up with answers or options
rather than telling them the best way to resolve a situation. Discuss the merits of
their views and how to make them successful.
• Provide positive feedback when employees voice their opinions. Offer
suggestions or try to resolve challenges. Reinforcing behavior on your part will
encourage more spontaneity, thinking and innovation on their part.
• Ask questions, even when you don’t know the answer. Ask employees
challenging questions that encourage them to think, plan and react. Above all,
encourage employees to challenge themselves.
• Encourage employees to take appropriate risks. Support them when they do and
also when the outcome of risk-taking isn’t positive. In those cases, evaluate what
went wrong and encourage other, more appropriate risks.
6. The successful leader manages by walking around:
By getting out of the office and walking around the department, plant or
building to interact with other employees, you get an opportunity to see people

on the line doing daily tasks. Create an opportunity to informally chat with
employees and learn something more about their work challenges and lives.
7. The successful leader acts and reacts in an honest manner:
Authors and creators of The Leadership Challenge program Jim Kouzes
and Barry Posner report that honesty is the No. 1 characteristic of superior
leaders. Honest leaders easily build trust and confidence. Their employees are
more apt to work harder, ask questions and respect leaders who come across as
honest. Employees will also accept critiques, whether positive or negative, from
leaders they trust and believe.
8. The successful leader creates and fosters a learning environment:
Recognize that increased knowledge, more job experience and challenging
different mind-sets increases worker satisfaction, motivation and productivity.
Frequently encourage others to think outside-the-box and see issues from
alternate perspectives.
9. The successful leader perseveres:
Don’t deflect from achieving goals simply because obstacles exist or no
answer is readily available. Continue in your pursuit of excellence despite barriers
and criticism, and encourage the same attitude in others.
10. The successful leader shares successes:
Know that positive outcomes are rarely the result of only one person’s
attempts or input. A self-confident entrepreneur shares the limelight and
accolades with others who contributed to the final product or service.

Chapter: 2
Decision-making, procedures and formalities for starting
own business, financial support system
2.1 Decision Making
As an entrepreneur, you must make different types of decisions on everyday
basis. You must choose directions. You must solve problems. You must take
actions. The decision making process is one of the most important processes in
your company.
Decision making process is one of the most important processes in your business.
You can see different types of this process in reality, but generally, they all have
the same purpose – effective and efficient decision that will bring results to your
business.
The most common used approaching in decision-making process is according the
following steps:
1.1.Discover the problem – distraction. First things, first. Every decision-
making process starts with the problem or some type of distraction
between the desired and current state.
1.2.Analyse the problem. After you find possible problems that require
solutions, you can start with the analysis of already defined problems.
1.3.Define possible solutions. This is the step when you need to start
brainstorming all possible solutions for a given problem, or problem you
want to solve with that solutions.
1.4.Analyse all possible solutions. Because in the third step you come to
more than one possible solution for a given problem, in this step you need
to analyse all proposed solutions in order to rang them to make a decision
what will be implemented.
1.5.Select the best solution for application. Now is time for real decision.
What will be implemented as a solution for the given problem? Answer of
this question will be the decision you are making.
1.6.Implement the decision. We can’t talk about decision making process
without the implementation sub-process within it. The job is not finished
until you do not implement what you have decided.

2.2 Procedures and formalities for starting own business
Starting a business is exciting—but also demanding. This how to start a
business guide addresses some of the most common start-up steps to ensure that
your company is ready for success.
 Prepare a business plan and materials
1. An important first step is preparing a business plan to define your
business, products and services, and outline your goals, operating
procedures and competition. If your company needs funding from a
traditional loan or venture capitalists, a business plan will be required.
Make sure your plan includes a marketing approach, so people are aware
of what you are selling and how to find you.
2. Create a business logo, cards and stationery. These items establish your
company’s identity and help potential customers find and remember you.
 Meet legal requirements
3. Of course, incorporating your business or forming an LLC with the
state is important because it protects your personal assets from business
debts and liabilities. Other benefits of forming a corporation or LLC
include tax advantages and greater credibility with customers, vendors and
business partners.
4. Select an accountant and attorney. Many small business owners seek
advice from accountants and attorneys. As you search for an accountant
and attorney, get referrals from friends or family, and look for professionals
who have worked with other small business owners or companies in your
specific industry.
5. Get necessary tax identification numbers, licenses and
permits. A federal tax identification number, or employer identification
number (EIN), acts like a social security number and is required for
corporations and LLCs that will have employees. Contact your state's
taxation department to learn if a state tax identification number is required
in your state. Also keep in mind that most businesses need licenses and/or
permits to operate—in your city, municipality, county and/or state.
6. Insure your business and investigate other requirements. Some
industries have specific insurance requirements. Discuss your needs with
your insurance agent to get the right type and amount of insurance.
Remember to look into any other government tax and insurance

requirements that might apply to your business, particularly if you have
employees. For example:
 Unemployment insurance
 Workers' compensation
 OSHA requirements
 Federal tax
 State and local tax
 Self-employment tax
 Payroll tax requirements (such as FICA, federal unemployment tax, and
state unemployment tax)
 Sales and use tax
 Prepare yourself financially
1. It is crucial to separate business finances from personal ones, so open a
business bank account. Most banks require company details, such as
formation date, business type, and owner names and addresses. If your
business is not incorporated, most banks will require a DBA (doing
business as or fictitious business name). Contact your bank about
requirements prior to opening an account.
2. Arrange your business accounting and apply for loans. You may want
to use an accountant, or handle finances yourself with a small business
accounting solution. Either way, properly account for all business
disbursements, payments received, invoices, accounts receivable/accounts
payable, etc. And if you don’t have enough capital to start a business, this
is also the time to seek funding from banks or through Small Business
Administration (SBA) loan programs.
3. Establish a business line of credit. This will help reduce the number of
times your company prepays for purchased products and services. It also
helps establish a strong credit history, which is helpful for vendor and
supplier relationships. Getting a Dun & Bradstreet (D&B) DUNS (or D-U-
N-S) number for your business is advisable, as it is often used to check
business creditworthiness.
4. Ready your workspace. For home-based businesses, ensure you are
meeting city zoning requirements for your area. For non home-based
businesses, you'll likely need to lease office space. Don't forget to purchase
or lease furniture and office equipment to get your business up and running.

2.3 Financial support for setting enterprises: India
The Government of India has issued guidelines to all state governments in India
specifying the policies that states should focus on, to attract private sector
investment and promote commercial projects in the renewable energy sector.
Several states such as Gujarat, Kerala, Madhya Pradesh, Maharashtra and Tamil
Nadu have provided sales tax exemptions/deferment policies for investment in
wind power projects. Other state provisions include fiscal and financial incentives
(e.g. 100 per cent asset depreciation) together with the simplification of
procedures for private investment. Examples of this are: introducing single
window permit procurement, reducing the number of required governmental
authorizations and allowing unrestricted levels of foreign direct investment in the
ownership of renewable energy projects.
Other support mechanisms include:
 Encouraging foreign investors to establish renewable energy-based power
generation projects on the build-own-operate model (BOO)
 Exemptions and reduction in excise duty on the manufacture of renewable
systems and devices such as solar collectors, solar water heaters, solar PV
cells, wind turbines, etc.
 Soft loans on competitive terms to manufacturers and users of commercial
and near market technologies through the Indian Renewable Energy
Development Agency and certain Indian nationalized banks and financial
institutions.
 Government decided to amend the Sugar Development Fund Act, 1982
enabling financial assistance for production of Ethanol and co-generation of
power from bagasse Government are examining various other options to
provide concessions / exemptions to Sugar and Oil industries. State Excise
and Sales Tax relief Simplification of procedures Concessions for new
ethanol production units Facilitate easy inter-state movements of ethanol
Issues relating to State Governments taken up with Maharashtra and Uttar
Pradesh Governments for smooth transportation and delivery
Financial support by other Ministries/Departments/Organizations
 Department of Biotechnology

The Department has a large number of programmers to support innovation
and R&D in the area of biotechnology. It inter-alia provides programmer-
based support to outstanding research groups in Universities and
Institutions for strengthening the ongoing activities by providing
equipment and seed money for undertaking research in various areas of
biodiversity. It also supports basic research in modern biology. Mission
mode programmers in bio-energy, bio-fuels vaccines, drugs and
diagnostics are also supported.
 Ministry of Small Scale Industries
It has a number of schemes of financial support to small-scale units. There
is a Scheme of Credit Linked Capital Subsidy to facilitate technology up
gradation in to these units. Under another Scheme, units are reimbursed
expenditure involved in getting ISO 9000/ISO 14001 Certification
 Ministry of Non-conventional Energy Sources
It supports R&D for technology development and manpower development
in renewable energy areas. R&D projects could be submitted in any one of
the modes (a) an industrial unit registered with the DSIR (b) a consortium
of industry, academic institutions, research laboratories and R&D
institutions etc. may be formed to undertake a R&D project and (c) an
industry may join hands with the Ministry to entrust a R&D project to an
R&D institution /research laboratory or an academic institution.
The thrust areas identified by the Ministry are solar energy, energy from
urban and industrial waste etc. The Ministry supports up to 50% of the
R&D project cost.
 Ministry of Food Processing Industries
For modernization of food processing industry, technology up gradation of
units etc, the Ministry provides financial assistance to the extent of 25% to
33.33% of project cost.
 Department of Industrial Policy and Promotion

It has a comprehensive scheme for modernization and technology up
gradation of all segments of leather industry. Under the scheme, assistance
is available in the form of investment grant up to a maximum of 30% of
the investment to small-scale units and 20% to non-small scale units, with
a specified ceiling in monetary terms.
 Ministry of Steel
Financial assistance is provided to R&D projects for technology up
gradation, innovativeness, improvement in energy efficiency and other
aspects relating to iron and steel industry. It is also providing financial
support to SMEs operating in the steel re-rolling sector. A Technology
Information Resource and Facilitation Center has been planned to provide
long term sustainability to the sector through research, technology
development and demonstration, design and business support facilities.
 National Innovation Foundation
It supports scouting, spawning, sustaining and scaling up of grassroots
green innovations and links innovation, enterprises and investments.
 Small Industries Development Bank of India (SIDBI)
The bank provides finance and other support systems for modernization
and up gradation of small-scale units.
 National Bank For Agriculture and Rural Development (NABARD)
NABARD is established as a development Bank, in terms of the Preamble
of the Act, "for providing and regulating Credit and other facilities for the
promotion and development of agriculture, small scale industries, cottage
and village industries, handicrafts and other rural crafts and other allied
economic activities in rural areas with a view to promoting integrated rural
development and securing prosperity of rural areas and for matters
connected therewith or incidental thereto."

Chapter: 3
3.1. Identification and selection of business opportunities:
Identification and evaluation of the business opportunities (basic ideas,
inspiration) is one of the most important elements of the decision-making process
on a business start.
What is an opportunity?
Opportunity begins as an initial idea that entrepreneurs develop further.
Developing of the opportunities requires initiative, effort and creativity.
Most business opportunities do not occur suddenly but they are results
of the entrepreneur‘s attention which he/she devotes to these opportunities.
Often a coincidence can help. The decision-making on in which area a business
shall be carried on usually requires careful consideration. Entrepreneurs can
pursue the opportunities in any field because the opportunities are arising from
the complex of the changing conditions of economic, legal, social, demographic
and even from the changing conditions in the area of technology. Interaction of
factors produces business opportunity at given time.
Therefore it is important that the entrepreneur knows which factor creates
opportunity because regardless of the source of origin every opportunity shall be
carefully examined and evaluated. Opportunity must also match the personal
qualities and goals of entrepreneur. It is critical if the entrepreneur is able to
expend necessary time and effort for implementation of its plan, if he/she believes
in the opportunity so much that he/she is able to sacrifice anything for the success
of the project.
Valuation of the opportunities
Business opportunity valuation means that the resources will be spent on further
refinement and development of the opportunity. Valuation of market
opportunities and the necessary resources lead then to a sorting of the original
business ideas out and their reduction. Entrepreneur shall try while he/she is
evaluating the opportunities to estimate the most exactly whether his/her idea has
a real potential to bring the desired profit. Most important criterion for valuation
of a new opportunity is a market demand. Demand valuation shall take into
account the attitudes of the customers, size of potential market expressed
financially and also in the units, market development and market share which new
product could get.

The purpose of opportunities’ valuation is isolation of inappropriate
opportunities. However, it shall be noted that while for one early entrepreneur the
opportunity may be attractive, the other one may find this opportunity as
inconvenient. In this case, the opportunity shall be reevaluated or rejected.
Willingness to monitor and evaluate business opportunities also depends on the
amount of funds available for a business start. A person, who does not have the
necessary capital and is satisfied in employment, will not pay so much attention
to the business opportunities as persons who are very unhappy at work and have
enough capital to start a business activity.
Sources of new ideas and opportunities
Where shall a person look for ideas, inspiration for a business? How shall
a person found a good business idea out? To make a business opportunity’s
identification possible many different resources, that can be distinguished
between formal and informal, can be used.
Formal sources of business ideas and opportunities
These resources are used usually in an already established company. Inspiration
generally comes from monitoring of market environment and its factors – such as
demand for the certain products, export possibilities. The idea may also come
from a new discovery of important commodity’s sources, the discovery of new
products and technologies. It is also possible to find and use the results of various
studies such as studies of production and consumption in the country, market
studies, analysis of import and its substitution by domestic products, studies
valuating effects of development of technique and technology on the
environment, science and development, government regulation and policy etc.
Informal sources of business ideas and opportunities
When they are starting a business and establishing of own companies most of the
entrepreneurs start rather from informal intellectual resources. This means that
ideas and inspiration are taken from life situations and surroundings. During the
searching of a business idea a person can start from a variety of options, such as:
 Business based on own skills, hobbies and interests
Inspiration or business opportunity arises sometimes in the context of
hobby or sport. In such a situation, it is essential that the entrepreneur had
considerable experience and passion for the activity because it involves the
risk that the company will be established rather from the love to the hobby
than with the goal to satisfy market needs.

 Business based on improvement of foreign successful idea
It is quite a common mistake to assume that own business must be based
only on an original idea if it has to be successful. In fact it may be just the
opposite. Every new idea is not tested very much and that is why it is risky.
On the other hand it is understandable that not everything that celebrates
success elsewhere will be equally successful in the given environment. In
this respect the market research, advertising and promotion are crucial.
 Business based on separation from the parent company
Numbers of companies are being established by ex-employees who choose
to do alone what had previously done in employment (for example right on
the basis of job dissatisfaction).
 Source of ideas – family members and friends
It is advantageous if the person who decides to start a business has people
who are already carrying on a business in its nearby area. Research has
shown that other entrepreneurs are the second largest group to which the
early entrepreneurs turn to obtain information.
 Business based on the discovery of loopholes in the market
Many of today's successful entrepreneurs become successful because of
the discovery and use of space in the market offer. To perceive a gap
however is not always easy and it is not possible to make large conclusions
from the limited information they need to further investigate. If it is
established that there is a gap (niche, window) it is necessary to identify
the common, national and local trends and those that are interesting to try
to transform the business plan that would meet the needs arising from these
trends.
It is possible to learn any business. If they have, however, competitors an
edge in knowledge you will be at disadvantage. In principle, it should have
a business relationship to something you already know.
Processing of a business idea
If it should be possible to implement an initial idea – opportunity, this initial idea
shall be further developed. Therefore, it is necessary to further define what shall
be offered, to whom the product shall be offered and how the product will be
delivered to the market.
The business opportunity shall be transformed into a business plan. At this stage
of the idea implementation the market needs are further identified as well as the
necessary amount of needed resources. The idea therefore takes more complex

form, the form of a business plan. Further elaboration of a business plan shall
include also processing of financial section. This will be handled by estimating
the future created value and estimate of income, it is also necessary to estimate
the cash-flow. After processing of this section the comprehensive business plan
is at disposal.
3.2. Market Survey:
Definition: The study of the spending characteristics and purchasing power of
the consumer who are within your business's geographic area of operation; a
research method for defining the market parameters of a business.
Market Survey Basics
Market research describes the gathering and analysis of market data, such as
consumer preferences, trends in market prices and the presence of competing
products. A market survey can describe any study that gathers information
directly from consumers by asking them questions about their preferences, habits
and experiences. The purpose of a market survey is to provide business managers
with insight about their target customers, such as how much money they spend
on certain types of products, whether they use competing products and the interest
level for new products.
Types of Market Surveys
Market surveys can be administered in several ways. Paper surveys or
questionnaires that businesses hand out in public or mail to consumers are
common forms of market surveys. Businesses such as restaurants and service
companies often use questionnaires to gather feedback about consumer
experience. Some businesses conduct oral market surveys over the phone, while
others conduct surveys electronically via email, on official websites or through
third-party websites dedicated to market surveys.
Benefits of Surveys
Market surveys help businesses make better decisions about the types of products
and services they offer, prices, how to deal with competitors and whether to enter
or exit markets. Analysis of market surveys can prevent a business from making
a costly mistake such as launching a new product or service that doesn't fulfill a
need in the market, getting into a market that is saturated with competitors and
setting prices too high or too low. Surveys can help entrepreneurs assess the
viability of new ideas.

Limitations of Surveys
The effectiveness of market surveys can be limited by a variety of underlying
factors. The manner in which market researchers phrase survey questions can
have a large impact on the way consumers respond, so researchers that pose
leading questions can get skewed results. In addition, consumers may not always
answer truthfully, and they may feel pressured to answer in a certain way to please
researchers.
3.3. Business Plan:
A business plan is a written description of your business's future. That's all there
is to it--a document that describes what you plan to do and how you plan to do it.
If you jot down a paragraph on the back of an envelope describing your business
strategy, you've written a plan, or at least the germ of a plan.
Business plans can help perform a number of tasks for those who write and read
them. They're used by investment-seeking entrepreneurs to convey their vision to
potential investors. They may also be used by firms that are trying to attract key
employees, prospect for new business, deal with suppliers or simply to understand
how to manage their companies better.
So what's included in a business plan, and how do you put one together? Simply
stated, a business plan conveys your business goals, the strategies you'll use to
meet them, potential problems that may confront your business and ways to solve
them, the organizational structure of your business (including titles and
responsibilities), and finally, the amount of capital required to finance your
venture and keep it going until it breaks even.
Sound impressive? It can be, if put together properly. A good business plan
follows generally accepted guidelines for both form and content. There are three
primary parts to a business plan:
 The first is the business concept, where you discuss the industry, your
business structure, your particular product or service, and how you plan to
make your business a success.
 The second is the marketplace section, in which you describe and analyze
potential customers: who and where they are, what makes them buy and so on.
Here, you also describe the competition and how you'll position yourself to
beat it.

 Finally, the financial section contains your income and cash flow statement,
balance sheet and other financial ratios, such as break-even analyses. This part
may require help from your accountant and a good spreadsheet software
program.
Breaking these three major sections down even further, a business plan consists
of seven key components:
1. Executive summary
2. Business description
3. Market strategies
4. Competitive analysis
5. Design and development plan
6. Operations and management plan
7. Financial factors
In addition to these sections, a business plan should also have a cover, title page
and table of contents.
How Long Should Your Business Plan Be?
Depending on what you're using it for, a useful business plan can be any length,
from a scrawl on the back of an envelope to, in the case of an especially detailed
plan describing a complex enterprise, more than 100 pages. A typical business
plan runs 15 to 20 pages, but there's room for wide variation from that norm.
Much will depend on the nature of your business. If you have a simple concept,
you may be able to express it in very few words. On the other hand, if you're
proposing a new kind of business or even a new industry, it may require quite a
bit of explanation to get the message across.
The purpose of your plan also determines its length. If you want to use your plan
to seek millions of dollars in seed capital to start a risky venture, you may have
to do a lot of explaining and convincing. If you're just going to use your plan for
internal purposes to manage an ongoing business, a much more abbreviated
version should be fine.
Who Needs a Business Plan?

About the only person who doesn't need a business plan is one who's not going
into business. You don't need a plan to start a hobby or to moonlight from your
regular job. But anybody beginning or extending a venture that will consume
significant resources of money, energy or time, and that is expected to return a
profit, should take the time to draft some kind of plan.
Startups. The classic business plan writer is an entrepreneur seeking funds to help
start a new venture. Many, many great companies had their starts on paper, in the
form of a plan that was used to convince investors to put up the capital necessary
to get them under way.
Most books on business planning seem to be aimed at these startup business
owners. There's one good reason for that: As the least experienced of the potential
plan writers, they're probably most appreciative of the guidance. However, it's a
mistake to think that only cash-starved startups need business plans. Business
owners find plans useful at all stages of their companies' existence, whether
they're seeking financing or trying to figure out how to invest a surplus.
Established firms seeking help. Not all business plans are written by starry-eyed
entrepreneurs. Many are written by and for companies that are long past the
startup stage. WalkerGroup/Designs, for instance, was already well-established
as a designer of stores for major retailers when founder Ken Walker got the idea
of trademarking and licensing to apparel makers and others the symbols 01-01-
00 as a sort of numeric shorthand for the approaching millennium. Before
beginning the arduous and costly task of trademarking it worldwide, Walker used
a business plan complete with sales forecasts to convince big retailers it would be
a good idea to promise to carry the 01-01-00 goods. It helped make the new
venture a winner long before the big day arrived. "As a result of the retail support
up front," Walker says, "we had over 45 licensees running the gamut of product
lines almost from the beginning."
These middle-stage enterprises may draft plans to help them find funding for
growth just as the startups do, although the amounts they seek may be larger and
the investors more willing. They may feel the need for a written plan to help
manage an already rapidly growing business. Or a plan may be seen as a valuable
tool to be used to convey the mission and prospects of the business to customers,
suppliers or others.
Plan an Updating Checklist
Here are seven reasons to think about updating your business plan. If even just
one applies to you, it's time for an update.
1. A new financial period is about to begin. You may update your plan annually,
quarterly or even monthly if your industry is a fast-changing one.

2. You need financing, or additional financing. Lenders and other financiers need
an updated plan to help them make financing decisions.
3. There's been a significant market change. Shifting client tastes, consolidation
trends among customers and altered regulatory climates can trigger a need for
plan updates.
4. Your firm develops or is about to develop a new product, technology, service
or skill. If your business has changed a lot since you wrote your plan the first
time around, it's time for an update.
5. You have had a change in management. New managers should get fresh
information about your business and your goals.
6. Your company has crossed a threshold, such as moving out of your home
office, crossing the $1 million sales mark or employing your 100th employee.
7. Your old plan doesn't seem to reflect reality any more. Maybe you did a poor
job last time; maybe things have just changed faster than you expected. But if
your plan seems irrelevant, redo it.
Finding the Right Plan for You
Business plans tend to have a lot of elements in common, like cash flow
projections and marketing plans. And many of them share certain objectives as
well, such as raising money or persuading a partner to join the firm. But business
plans are not all the same any more than all businesses are.
Depending on your business and what you intend to use your plan for, you may
need a very different type of business plan from another entrepreneur. Plans differ
widely in their length, their appearance, the detail of their contents, and the
varying emphases they place on different aspects of the business.
The reason that plan selection is so important is that it has a powerful effect on
the overall impact of your plan. You want your plan to present you and your
business in the best, most accurate light. That's true no matter what you intend to
use your plan for, whether it's destined for presentation at a venture capital
conference, or will never leave your own office or be seen outside internal
strategy sessions.
When you select clothing for an important occasion, odds are you try to pick items
that will play up your best features. Think about your plan the same way. You
want to reveal any positives that your business may have and make sure they
receive due consideration.

Types of Plans
Business plans can be divided roughly into four separate types. There are very
short plans, or minilabs. There are working plans, presentation plans and even
electronic plans. They require very different amounts of labour and not always
with proportionately different results. That is to say, a more elaborate plan is not
guaranteed to be superior to an abbreviated one, depending on what you want to
use it for.
 The Miniplan. A miniplan may consist of one to 10 pages and should include
at least cursory attention to such key matters as business concept, financing
needs, marketing plan and financial statements, especially cash flow, income
projection and balance sheet. It's a great way to quickly test a business concept
or measure the interest of a potential partner or minor investor. It can also serve
as a valuable prelude to a full-length plan later on.
Be careful about misusing a miniplan. It's not intended to substitute for a full-
length plan. If you send a miniplan to an investor who's looking for a
comprehensive one, you're only going to look foolish.
 The Working Plan. A working plan is a tool to be used to operate your
business. It has to be long on detail but may be short on presentation. As with
a miniplan, you can probably afford a somewhat higher degree of candor and
informality when preparing a working plan.
A plan intended strictly for internal use may also omit some elements that would
be important in one aimed at someone outside the firm. You probably don't need
to include an appendix with resumes of key executives, for example. Nor would
a working plan especially benefit from, say, product photos.
Fit and finish are liable to be quite different in a working plan. It's not essential
that a working plan be printed on high-quality paper and enclosed in a fancy
binder. An old three-ring binder with "Plan" scrawled across it with a felt-tip
marker will serve quite well.
Internal consistency of facts and figures is just as crucial with a working plan as
with one aimed at outsiders. You don't have to be as careful, however, about such
things as typos in the text, perfectly conforming to business style, being consistent
with date formats and so on. This document is like an old pair of khakis you wear
into the office on Saturdays or that one ancient delivery truck that never seems to
break down. It's there to be used, not admired.
 The Presentation Plan. If you take a working plan, with its low stress on
cosmetics and impression, and twist the knob to boost the amount of attention
paid to its looks, you'll wind up with a presentation plan. This plan is suitable
for showing to bankers, investors and others outside the company.

Almost all the information in a presentation plan is going to be the same as your
working plan, although it may be styled somewhat differently. For instance, you
should use standard business vocabulary, omitting the informal jargon, slang and
shorthand that's so useful in the workplace and is appropriate in a working plan.
Remember, these readers won't be familiar with your operation. Unlike the
working plan, this plan isn't being used as a reminder but as an introduction.
You'll also have to include some added elements. Among investors' requirements
for due diligence is information on all competitive threats and risks. Even if you
consider some of only peripheral significance, you need to address these concerns
by providing the information.
The big difference between the presentation and working plans is in the details of
appearance and polish. A working plan may be run off on the office printer and
stapled together at one corner. A presentation plan should be printed by a high-
quality printer, probably using color. It must be bound expertly into a booklet that
is durable and easy to read. It should include graphics such as charts, graphs,
tables and illustrations.
It's essential that a presentation plan be accurate and internally consistent. A
mistake here could be construed as a misrepresentation by an unsympathetic
outsider. At best, it will make you look less than careful. If the plan's summary
describes a need for $40,000 in financing, but the cash flow projection shows
$50,000 in financing coming in during the first year, you might think, "Oops!
Forgot to update that summary to show the new numbers." The investor you're
asking to pony up the cash, however, is unlikely to be so charitable.
 The Electronic Plan. The majority of business plans are composed on a
computer of some kind, then printed out and presented in hard copy. But more
and more business information that once was transferred between parties only
on paper is now sent electronically. So you may find it appropriate to have an
electronic version of your plan available. An electronic plan can be handy for
presentations to a group using a computer-driven overhead projector, for
example, or for satisfying the demands of a discriminating investor who wants
to be able to delve deeply into the underpinnings of complex spreadsheets.

3.4. Implementation and customer satisfaction:
Customer satisfaction is a strong prerequisite for successful business, and
measuring it is important, with a customer satisfaction survey being the prime
tool. It is often pointed out that retaining customers costs nine times less than
winning new ones. That is why customer satisfaction, which is paramount for
their retention, is in the focus to implement a customer satisfaction survey by a
host of companies on a regular basis.
The modern environment in which companies implement their business abounds
in cutting edge products. The bar against which customers measure contemporary
products is getting higher, with intense competition among companies to win new
customers. That should be borne in mind when it comes to implement a customer
satisfaction survey. It is a tool for maintaining direct contacts with customers, to
judge the extent of success and areas which need improvements.
To implement a customer satisfaction survey starts with the preparation of a
programme that includes, first and foremost, the planning stage. At it, the goals
of the customer satisfaction survey should be identified. They
comprise identifying the target group to be surveyed, the indexes that should be
measured, the measurement of customer satisfaction, and afterwards interpreting
and using the results to achieve the greatest beneficial business effect possible.
The determination of the target group is naturally the paramount decision prior to
survey implementation. Asking the right questions to the right persons is the basis
for success. Implementing the surveying process should be considered in
connection both with customers that are contacted directly and those that are
reached through intermediaries selling the specific company’s products.
Including the wholesalers and the final consumers alike should be implemented.
The building of good sample frames, i.e. lists from which the respondents sample
is chosen, is a process that takes up a lot of time, but it means laying a solid
foundation for a rewarding customer satisfaction survey.
In the research of customer satisfaction, companies should strive to learn how
they are performing in the eyes of their customers, and how these customers think
their activity and products can be improved. These factors should be measured in
a customer satisfaction survey. High level and specific level satisfaction should
be gauged, asking customers about their overall satisfaction, how likely they are

to consider purchasing from the specific company again, and if they would
recommend that company to friends, colleagues and acquaintances.
To implement a customer satisfaction survey means seeing the specific company
and its products from the viewpoint of its customers. Online surveys should
include verbal or numeric scales which customers can use to describe companies;
surveys should also determine customers’ expectations, although they are more
difficult to measure.
The final stage to implement a customer satisfaction survey should include the
creation of CSI, or customer satisfaction index, formed using only overall
performance satisfaction, or by combining it with intentions to re-purchase, or
even using a wider basket of components. The results should be plotted against
importance scores in tables of strengths and weaknesses that can be beneficial for
business analysis and improvement.

Chapter: 4
4.1 Business crises:
Unplanned events can have a devastating effect on small businesses. Crises
such as fire, damage to stock, illness of key staff or IT system failure could all
make it difficult or even impossible to carry out your normal day-to-day activities.
At worst, this could see you losing important customers - and even going out of
business altogether. But with good planning you can take steps to minimise the
potential impact of a disaster - and ideally prevent it happening in the first place.
Why you need to plan for possible crises that could affect your business
assess the possible impact of risks on your business Minimise the potential impact
of crises Plan how you will deal with an emergency Test your business continuity
plan.
Why you need to plan for possible crises:
It's essential to plan thoroughly to protect yourself from the impact of
potential crises - from fire, flood or theft to IT system failure, restricted access to
premises or illness of key staff. This planning is very important for small
businesses since they often lack the resources to cope easily in a crisis.
Failure to plan could be disastrous. At best you risk losing customers while
you're getting your business back on its feet. At worst your business may never
recover and may ultimately cease trading.
As part of the planning process you should identify potential crises that might
affect you determine how you intend to minimise the risks of these disasters
occurring set out how you'll react if a disaster occurs in a business continuity plan
test the plan regularly. For example, if you're reliant on computer information,

you should put a back-up system in place so you have a copy of key data in the
event of a system failure.
Benefits of a business continuity plan:
A carefully thought-out business continuity plan will make coping in a
crisis easier and enable you to minimise disruption to the business and its
customers.
It will also prove to customers, insurers and investors that your business is
robust enough to cope with anything that might be thrown at you - possibly giving
you the edge over your competitors.
Crises that could affect your business:
Depending on your business' specific circumstances, there are many possible
events that might constitute a crisis:
1. Natural disasters - for example, flooding caused by burst water pipes or
heavy rain, or wind damage following storms.
2. Theft or vandalism - theft of computer equipment, for instance, could prove
devastating. Similarly, vandalism of machinery or vehicles could not only be
costly but also pose health and safety risks.
3. Fire - few other situations have such potential to physically destroy a business.
4. Power cut - loss of power could have serious consequences. What would you
do if you couldn't use IT or telecoms systems or operate other key machinery
or equipment?
5. IT system failure - computer viruses, attacks by hackers or system failures
could affect employees' ability to work effectively.
6. Restricted access to premises - how would your business function if you
couldn't access your workplace - for example, due to a gas leak?
7. Loss or illness of key staff - if any of your staff is central to the running of
your business, consider how you would cope if they were to leave or be
incapacitated by illness.

8. Outbreak of disease or infection - depending on your type of business an
outbreak of an infectious disease among your staff, in your premises or among
livestock could present serious health and safety risks.
9. Terrorist attack - consider the risks to your employees and your business
operations if there is a terrorist strike, either where your business is based or
in locations to which you and your employees travel. Also consider whether
an attack may have a longer-term effect on your particular market or sector.
Assess the possible impact of risks on your business:
You need to analyse the probability and consequences of crises that could
affect your business. This involves assessing the likelihood of a particular crisis
occurring and its possible frequency determining its possible impact on your
operations.
This kind of analysis should help you to identify which business functions
are essential to day-to-day business operations. You're likely to conclude that
certain roles within the business while necessary in normal circumstances aren't
absolutely critical in a disaster scenario.
Likelihood of risks occurring:
It can help to grade the probability of a particular crisis occurring, perhaps
on a numerical scale or as high, medium or low. This will help you to decide your
business' attitude towards each risk. You may decide to do nothing about a low-
probability crisis - although remember that it could still be highly damaging to
your business if it occurred, e.g. a terrorist attack.
Potential impact of a crisis:
To determine the possible impact of a crisis on your business, it can be
helpful to think of some of the worst possible scenarios and how they might prove
debilitating for the business. For instance, how could you access data on your
customers and suppliers if computer equipment was stolen or damaged by a
flood? Where would the business operate from if your premises were destroyed
by fire?
It's essential to look at risks from the perspective of your customers.
Consider how they'd be affected by each potential crisis. Would they be likely to
look for alternative suppliers? Consider whether you would be able to keep
to service-level agreements (SLAs) if a particular crisis occurred - and what the
consequences might be if you couldn't.

Minimise the potential impact of crises:
Once you've identified the key risks your business faces, you need to take
steps to protect your business functions against them.
Premises: Good electrical and gas safety could help protect premises against fire.
Installing fire and burglar alarms also makes sense.
Think what you would do in an emergency if your premises couldn't be
used. For example, you might suggest an arrangement with another local business
to share premises temporarily if a crisis affected either of you.
Equipment/machinery: If you use vital pieces of equipment, you may want to
cover them with maintenance plans guaranteeing a fast emergency call-out.
IT and communications: Installing anti-virus software, backing up data and
ensuring the right maintenance agreements are in place can all help protect your
IT systems. You might also consider paying an IT company to regularly back up
your data offsite on a secure server. Printing out copies of your customer database
can be a good way of ensuring you can still contact customers if your IT system
fails.
People: Try to ensure you're not dependent on a few staff for key skills by getting
them to train other people. Consider whether you could get temporary cover from
a recruitment agency if illness left you without several key members of staff. And
take health and safety seriously to reduce the risk of staff injuries.
Insurance: Insurance forms a central part of an effective risk-management
strategy.
Plan how you'll deal with an emergency:
You should draw up a business continuity plan setting out in writing how
you will cope if a crisis does occur. It should detail the key business functions
you need to get operating as quickly as possible and the resources you'll need to
do so the roles of individuals in the emergency Making the most of the first
hour after an emergency occurs is essential in minimising the impact. As a result,
your plan needs to explain the immediate actions to be taken.
Consider whether you'll need to give staff specific training to enable them
to fulfil their responsibilities in an emergency situation. Ensure all employees are
aware of what they have to do. Arranging the plan in the form of checklists can
be a good way to make sure that key steps are followed. Include contact details for

those you're likely to have to notify in an emergency such as the emergency
services, insurers, municipal services, customers, suppliers, utility companies and
neighbouring businesses.
It's also worth including details of service-providers such as glaziers,
locksmiths, plumbers, electricians, and IT specialists. Include maps of your
premises' layout to help emergency services, showing fire escapes, sprinklers and
other safety equipment. Set out how you'll deal with possible media interest in an
incident. Appoint a single company spokesperson to handle questions and try to
be positive in any statements you issue. Ensure staff, customers and suppliers are
informed before they find out in the media.
Finally, make sure hard copies of your business continuity plan are lodged at your
home and at with your bank and at the homes of other key members of staff.
Test your business continuity plan:
Once your plan is in place, you'll need to test how well it's likely to perform
in the event of an emergency. Although by their nature crises are hard to simulate
in a rehearsal, you can assess your plan against a number of possible scenarios in
a paper-based exercise. Think about the things that would cause most disruption
and that are most likely to happen to your business. Then make sure that your
plan covers each of the risks. Ask yourself the following key questions:
Does it set out each employee's role in the event of each emergency? Have
you set out the right steps to take? Is the order of the plan correct so that priority
actions to minimise damage will take place immediately after the incident? Make
some telephone calls to check that the key contacts and phone numbers that you
have given are correct. Having to find the right number after a crisis could use up
valuable time.
4.2 Problem Solving Attitude:
Social Entrepreneurs need to be innovative problem-solvers to identify and
apply practical solutions to problems, combining innovation, resourcefulness and
opportunity. They identify major social problems and so, as such, need to find
creative solutions and generate new ideas.
Often the desired criteria for a job advertisement is “Good problem solving
skills”. Any successful business or life activity demands the ability to problem
solve. Good problem solving skills are identified in the workplace as highly
valued skills and employees who boldly face daily problems and challenges are

worth more to an organisation than those who passively rely on their supervisors.
Even in my own experience, it was the staff with good problem solving skills that
I gave more responsibility to. I have qualifications as an Early Childhood
Educator and one of the main areas of development that we would focus on was
developing a child’s problem solving skills because of the importance of these
skills. In my years of education, business and leadership, I have identified 5 types
of problem solvers.
Types of Problem Solvers:
1. The Blinker – This is the person who doesn’t even see that there is a problem,
it is like they have horse blinkers on. They are too concerned with their own little
world to even notice that there is something wrong.
2. The Avoider – This person actually sees the problem but avoids it. They
couldn’t be bothered finding a solution.
3. The Identifier – Identifiers see the problem but instead of finding a solution
themselves they find someone else to give the solution. In business, this would

be the staff member who constantly goes to the supervisor rather than taking
initiative to find the solution themselves.
4. The Changer – These are the problem solvers who identify a problem and
implement a solution.
5. The Impactor – These problem solvers are experts at getting others to support
their cause, and they excel at finding solutions to social or people problems that
involve change. Impactors are great at getting people to “buy in”. The are great
thinkers and innovative solutions finders but the key is that they involve others in
the problem solving.
Problem Solving Practices That See Start-ups to Success:
If you find problem-solving to be energizing, you could be the next great
entrepreneur. On the other hand, if facing unforeseen problems annoys you and
causes ongoing stress, don’t quit your day job. Creating an innovative new
business is guaranteed to test your skills, patience and determination, and you
need to derive satisfaction from the journey, as well as the destination.
Contrary to a popular myth, problem-solving is a talent that can be
developed. To do it well requires a focus on several key activities and practices,
including the following:
1. Maintain a positive attitude, since startup problems are normal.
If you feel angry or exhibit a negative attitude to the team about problems, you
will jeopardize the potential success of your startup. Successful problem solving
is often more a state of mind than any particular skill or process.
2. Remember that learning requires listening more than talking.
The first challenge for many aspiring entrepreneurs is to put aside their passionate
advocacy long enough to acknowledge an existing problem. That means

practicing non-defensive listening to key advisors, team members and customers.
You can’t solve a problem if you don’t see one.
3. Openly communicate about each problem and commit to fix it.
Entrepreneurs who solve problems well don’t hide them from their teams or make
excuses and publicly take responsibility for a timely resolution. It’s smart to
outline initial actions, but not so smart to promise any specific solution until you
have had time to investigate the source.
4. Don’t hesitate to call in an experienced advisor or mentor to help.
Very few startup problems are unique. An experienced advisor, board member or
investor has seen them all. You can save yourself countless hours of frustration
and failed efforts by swallowing your pride, asking for help and following expert
suggestions.
5. Follow a disciplined analysis before jumping to conclusions.
Make sure you have all the facts, as well as insights from relevant sources and
outside experts. Don’t let your passions and emotions drive you to a quick
judgment, and remember that there are always at least two sides to every question.
Practice active listening to get all input.
6. Track every problem.
Problems become crises when affected people hear nothing or sense that no
attention is being paid to the issue. Thus a visible system is required for reporting
to all relevant parties, which also keeps your focus on the problem until it is
resolved.

7. Set deadlines and measure and pay for performance.
Remember the old adage that you get what you pay for. If everyone is incented
to find new customers, there will be little focus on resolving problems with
current ones. Make sure there are metrics for problem counts, resolution time and
revenue impact.
8. Analyse issues to prevent similar problems.
Usually it pays to dig deeper on lost sales opportunities and negative customer
reviews to resolve a deep-seated product deficiency or delivery channel issue.
Make sure processes are updated, training is improved or priorities are
communicated as required.
4.3 Communication Skill:
Contrary to their portrayal in pop culture, entrepreneurs aren’t purely “idea
people,” dreaming up revolutionary new concepts and introspectively coming to
profound conclusions about their industry -- though they are that, at times.
Instead, entrepreneurs spend most of their days in the trenches, working hard with

others to make those ideas a reality. How entrepreneurs communicate tends even
great ideas can flounder if a leader isn’t communicating effectively.
That said, there’s more to communication than just “communication” there
are actually several distinct skills within the subject that you’ll have to master,
sometimes independently.
1. Conversing
Conversation is one of the most basic forms of communication, but don’t
underestimate it. A simple, friendly conversation with your employees can build
trust and expose issues before they become serious. An innocuous bit of small
talk with a stranger can turn into a sales opportunity. Learn to speak in an
approachable, friendly way that you can apply to any situation.
2. Body Language
Much of communication is nonverbal, so mastering your body language
presentation is a must. In any situation, posture matters -- sit or stand up straight
with your shoulders back and your head high and straight. Look people in the eye.
Don’t fidget. Keep your hands out of your pockets. And these are just the basics!
Mastering body language can allow you to command a room.
3. Writing
You don’t have to be a perfect writer, but you do need to learn to be direct
and concise in written forms. You’ll be emailing and texting people within and
outside your organization regularly, and it’s important that you communicate
your ideas clearly in this medium, with minimal opportunities for
misinterpretation.
4. Presenting

You’ll be presenting in a few different formats as an entrepreneur, but they
can be collectively grouped into one skill. You may be presenting company
financials to your top employees or investors. You may present your
business’ services to an interested buyer. You may even give a speech about
entrepreneurship at a speaking event. In all these cases, clarity, conciseness,
confidence and poise are all key.
5. Negotiating
You have to negotiate for almost everything in a business, so the better you
are at negotiating, the more successful your business will be. You’ll be able to
secure better terms for your office’s lease, more reasonable salaries for your most
talented employees and even more lucrative options for your top
clients. Negotiating effectively is more than just using the right words; it
employs timing, a knowledge of the right facts and the ability to remain confident
throughout the process.
6. Mediating
Though your role as a mediator will be less often necessary than your role
as a converser, for example, there will be times when you have to step up and
resolve a conflict. It might be between two employees with differing opinions
about whose responsibility something is. Or it might be between two competing
vendors who suffered a lapse in communication. In any case, you’ll have to
acknowledge both sides and help them work out their own problems.
7. Debating
Debating here doesn’t necessitate arguing. It can be a healthy discussion of
two or more alternative options in a productive, respectful setting. Your job in a
debate isn’t to win against the enemy -- it’s to present your case and opinions

clearly. Doing so, whether you're dealing with investors, partners or employees,
can help you elucidate your ideas with greater strength and clarity.
8. Leading
Your responsibilities as a leader are multifaceted, but from a
communications perspective, your biggest responsibilities are instilling
confidence, trust and passion in your team. You’ll be inspiring people through
everyday messages, public and private, and retaining your poise as a leader
throughout those situations is key to achieving and maintaining a powerful image.
9. Cross-platforming
Today’s field of communication is much wider than the fields available
to generations past. Phone calls, texts, emails, video chats, instant messages and
other mediums are all commonplace, and you’ll need to know which ones are
appropriate for which applications. Choosing the right medium and implementing
it properly is key.
10. Listening
Listening might be the most important communication skill of all, since it
ties into so many applications and situations. Active listening can help you
converse, debate, lead, negotiate and mediate, and it makes you seem more
thoughtful, empathetic and invested in the people around you.

Chapter: 5
5.1 Knowledge Based Enterprises:
Knowledge entrepreneurship describes the
ability to recognize or create an opportunity
and take action aimed at realizing
an innovative knowledge practice or product.
Knowledge entrepreneurship is different from
'traditional' economic entrepreneurship in that it does not aim at the realization of
monetary profit, but focuses on opportunities with the goal to improve the
production (research) and throughput of knowledge (as in personal
transformation[1]
), rather than to maximize monetary profit. It has been argued
that knowledge entrepreneurship is the most suitable form of entrepreneurship
for not-for-profit educators, researchers and educational institutions.

Sources of Knowledge
A knowledge-based enterprise derives knowledge from various sources that
include:
 Customer knowledge: customer needs, perceptions, and motivations,
who to contact, customer buying power, what differentiation strategy
and customer services need to be developed to win and retain customers,
etc.
 Competitor knowledge: what competitors are selling now and what they
are planning to sell in the future, what is their strategic intent,
what competitive strategies they use to win in the marketplace.
 Product knowledge: the products in the marketplace, who is buying them
and why, what prices they are selling at, and how much money is spent on
such products now and may be spent in future.
 Process knowledge: best practices, technology intelligence and
forecasting, systemic innovation, cross-functional synergy opportunities,
etc.
 Financial knowledge: capital resources, where and how to acquire
venture capital and at what cost, and the integrating in financial practices.
 People knowledge: knowing people and what motivates employees,
obtaining feedback, the expertise available, and how to go about finding
experts.
Managing Knowledge Enterprise
Within a rapidly changing environment of the new knowledge economy,
the latest information and knowledge is the key to sustained success and
competitive. In today's e-learning and e-business accelerated world,
information quickly converted into knowledge at the point of highest business
impact is a matter or survival. Switching to leadership approaches, employee
empowerment, establishing a continuously learning organization, knowledge
management and management of knowledge workers become very important
manager's tasks. Knowledgeable workers seek service that support their
knowledge. Unused knowledge depreciates very fast. On the opposite, using
knowledge creates new opportunities which in turn create new knowledge.
Managing Knowledge
While most managers agree that managing knowledge is important, few
of the can articulate what the value is or how to become a learning, teaching,
or coaching organization. The majority of companies have their knowledge
embedded in people and organizations. It is often intuitive, tacit, rather than
explicit, and is rarely detailed enough to be especially valuable. Such
knowledge often gets lost when someone leaves the company. "All too often,
knowledge exists with multiple points of view instead of the collective best

thinking. It is occasional but not integral to the business. And, most important,
it is available but not used very much.
Organizing Knowledge Communities
Use entrepreneurial approaches to organize communities within your
organization to give it what it needs most radical innovation. Knowledge
communities organized around the principles of entrepreneurship have the best
chance at success. Members of these communities exciting, entrepreneurial,
and highly profitable would emulate entrepreneurs acting less like followers
and more like empowered founders and builders of new organizational value.
5.2 Scope of Entrepreneur in Present Context:
The Spirit and Morality of Entrepreneurship
There is no king or general, prophet or philosopher standing at the gate of
our contemporary civilization. Instead, we find the towering figures of
the entrepreneur and his spiritual cousin the innovator. They have brought all
continents, races, cities, and villages together into a global network of trade and
communications. They have taught recent generations a more thorough use of the
resources on this earth. Together they have reshaped life on this planet and made
it possible for millions of ordinary men and women to live as affluently as old-
time lords make. After a reluctant beginning, they have accepted the role as
provider to the welfare state. There is no doubt that the entrepreneurial stance is
the moral force, not only behind successful corporations, but also behind the
general expansion of the civilization of the West.
Both liberal and Marxist economists tend to ignore the entrepreneur and
innovator and speak of capital and labour as “the only two major elements in
production”, as did Mr. A. M. Krusro in 1977 at the Amsterdam Conference of
the International Chamber of Commerce. But Dr. G. Tacke quickly joined the
discussion on that occasion and added the entrepreneur as “an indispensable
factor of production independent of, and between labour and capital, with its own
profile and structure”.
The spirit of entrepreneurship brings labour and capital together in the
productive enterprise. It is a catalyst without which both labour and capital would
be idle.

Scope of Entrepreneurship Development in India
In India there is a dearth of quality people in industry, which demands high level
ofentrepreneurship development programme through out the country for the growth of
Indian economy. The scope of entrepreneurship development in country like India is
tremendous.EspeciallysincethereiswidespreadconcernthattheaccelerationinGDPgrowth
in the post reforms period has not been accompanied by a commensurate expansion in
employment.Resultsofthe57throundoftheNationalSampleSurvey.
Organization(NSSO)showthatunemploymentfiguresin2003-04wereashighas8.9
million. Incidentally, one million more Indian joined the rank of the unemployed between
2005-06 & 2007-08. The rising unemployment rate (9.2%2008 est.) In India has resulted in
growing frustration among the youth. In addition there is always problem of
underemployment. As a result, increasing the entrepreneurial activities in the country is the
only solace. Incidentally, both the reports prepared by Planning Commission to generate
employment opportunities for 10 crore people over the next ten years have strongly
recommended self-employment as a way-out for teaming unemployed youth. We have all
the requisite technical and knowledge base to take up the entrepreneurial challenge. The
success of Indian entrepreneurs in Silicon Valley is evident as proof. The only thing that is
lackingisconfidenceandmentalpreparation.Wearemoreofareactivekindofapeople.We
needtogetoutofthisandbecome moreproactive.Whatismoreimportantthantheskilland
knowledgebaseisthecouragetotaketheplunge.Ourproblemiswedonotstretchourselves.
However, it is appreciative that the current generations of youth do not have hang-ups about
thepreviouslegacyandarewillingtoexperiment.Thesesarethepeoplewhowillbringabout
entrepreneurship in India. At present, there are various organizations at the country level &
state level offering support to entrepreneurs in various ways. The Govt. Of India & various
state Govts. Have been implementing various schemes & programmes aimed at nurturing
entrepreneurship over last four decades. For example, MCED in Maharashtra provides
systematic training, dissemination of the information & data regarding all aspects of
entrepreneurship & conducting research in entrepreneurship. Then there are various Govt.
Sponsored scheme for the budding entrepreneurs. Recognizing the importance of the
entrepreneur development in economic growth& employment generation, Maharashtra
Economic Development Council (MEDC)has identified entrepreneurial development as the
one of the focus area for Council activities two years ago. Various Chambers of Commerce

& apex institutions have started organizing seminars & workshops to promote
entrepreneurship. Incidentally, various management colleges have incorporated
entrepreneurship as part of theircurriculum. This is indeed a good development. This shows
thecommitmentofthegovt.&thevariousorganizationstowardsdevelopingentrepreneurial
qualitiesintheindividuals.
5.3 Area of Future Entrepreneurship:
We live in a day and age in which empowerment and individuality are
embraced, and this mind-set is only gaining momentum. The future without a
doubt belongs to entrepreneurs and this is something to be really excited about.
Long gone will be the days in which our commerce was dominated and
monopolized by big box corporations and in will come heart-cantered businesses
in which people will be offering services and products full of passion. As a
generation that values happiness over 9-5 cubicle pay checks envelops upon us,
we begin to understand the bold transformation of the business world.
Currently, statistics show that amazingly five out of seven job holders in
the U.S. will become entrepreneurs in the future, and the reasons behind this are
hard to argue with. When you become an entrepreneur, you are your biggest and
loudest critic, which brings forth some of the best, highest quality work in the
world. Consumers are definitely privy to this fact, and more and more, they are
taking their business to a thriving entrepreneur over a corporate entity. If the basic
idea of being your own boss isn’t appealing enough, all of the other perks that
come along with building a brand that belongs all to your blood, sweat, and tears
should seriously make you reconsider your career path. The future of
entrepreneurship is headed in a direction we’ve never seen before, and the
changes are vastly innovative and fast-approaching. So what changes can you

expect in the entrepreneurship world? Here are just a few of the momentous shifts
happening.
1. Digital Nomads: This is the embodiment of what it means to be an
entrepreneur within the paradigm of the small business. These types of
entrepreneurs have been gaining tremendous propulsion as of late, and will
only continue to dominate the small business sector. What is a digital nomad?
This is someone who offers intangible services through the Internet. They can
work from anywhere, at any time, and for any client anywhere in the world.
Being a digital nomad means being in a business that virtually has no limits
and here, someone can do what they are most passionate about on their own
terms. It’s intellectual property that these entrepreneurs are selling, so there
are no investments generally for inventory goods or staffing. There is a
precious quality of life and empowerment that comes along with choosing this
route, but there are also challenges. Not everyone has the self-motivation to
work on their own schedule. There is nothing wrong with this, but it is a reality
that some digital nomads face. The dedication and discipline it takes to work
under absolutely no rules or regulations is hard to come by and it’s definitely
not always easy to uphold. And, like for any entrepreneur, there is no
guarantee of work from one month to the next, so being savvy with finances
is crucial. But on the flipside of this, clients can view digital nomads as
extremely valuable to do business with. Consumers have the impression that
digital nomads will do good work, as it is their livelihood that depends on
repeat business and word of mouth. Digital nomads will take the reins in the
years ahead as the type of entrepreneur that paves the way.
2. Aggression Dissolves: In the future of entrepreneurship, we say goodbye to
aggressive sales people. We say goodbye to pushy marketing ploys and
invasive selling techniques. Entrepreneurs are in touch with a certain type of
business value that focuses on the relationships with their customers rather
than just the monetary side of things. This flips the script on age old marketing
strategies and allows the entrepreneur to sell to their customers in a way that
is catered to the business relationship. This further gives entrepreneurs the
upper hand over larger corporations that have staunch systems in place for
marketing, making the small business owner more appealing to the consumer.
3. Personal Brands: One of the best parts of being your own boss is that you
have the power to stay true to your personal brand. The integrity of what you
build, what you represent, and the passion that you have to offer people
doesn’t have to be sacrificed when you’re the one in charge. For instance, if
you’re an entrepreneurial writer, you want to stay true to your written word
and there is no traditional publishing company or third party that stands in

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