Bunch of complex decisions an entrepreneur have to gone through to successfully launch an enterprise.

1. MR ZUBAIR AHMED: B.COM(HONS.), M.COM, UGC-
NET(2016,2018)

2.  Promotion of a new business enterprise is like a birth of child.
 Person who has the idea and take steps to launch a business enterprise knowns as entrepreneur.
 He/she has to act both as a mother and a midwife.
 Entrepreneurship is the process of planning, organizing, and operating a business venture and
assuming the risk involved in it.
 BUSINESS UNIT: its a segment of the company operates as a separate part of the whole business.
It can be a department, division, or functional area work as independent unit.

3.  Innovative mind
 Desire to achieve
 Risk taker
 Vision and mission
 Planning and Organizing skills
 Dynamic
 Passion and motivation
 Self belief, hard work and dedicated
 Ability to question themselves
 Interpersonal and analytical skills

4. FUNCTIONS OF AN ENTREPRENEUR
1. Preparation of plan
2. Perceiving market opportunities
3. Selection of site
4. Provision of land , labour , raw material and capital
5. Carrying out innovations
6. Taking calculated risk
7. Supervision
8. Networking
9. Change management
10. Innovation
11. Ideas generation for future growth

5. 1.SELECTION OF LINE OF BUSINESS:
 Industrial, trading, service.
 Types of goods and services produce
 Nature and sources of raw material, technology, source of supply,
 Analyze the profitability of business (expected rate of return)
 Degree of risk involved.
 Line of business must be technologically feasible.
2.SIZE OF THE UNIT:
 Achieve the scale at which average cost is minimum.
 Start with a small size then expand gradually
 Initial size should be based on sales estimates

6. 3.LOCATION OF BUSINESS:
 It influence cost, profitability and growth of enterprise.
 Optimum location reduce per unit cost of production and distribution.
 Three stages process= Region-locality-site .
 Consider access to raw material, availability of labour, transportation and banking facilities.
4.CHOICE OF FORM OF OWNERSHIP:
 It determines division of profit, authority and liability of owner continuity of business, transferability of
interest etc.
 Majorly three forms: Sole Proprietorship, Partnership firm, company.
 Factors to be considered- Size of business, degree of risk, liability, continuity of business, capital
requirement, control of business.
5.FINANCIAL PLANING:
 Acquisition and optimum utilization of funds.
 Determining the total amount of capital required by the business.
 Keeping in view the promotional expenditure of business, fixed capital and working capital.
 Deciding the form and composition of securities which are to be issued to raise the capital.
 Administration of funds.

7. 6.PROVOSION OF PHYSICAL FACILITIES:
 Selection of plant, equipment, machine, building and other physical facilities.
 Nature and quantum of facilities depends upon the size of business.
 Relative cost, repair, skills of workers, maintenance services, spare parts should also be kept in view.
 7. PLANT LAYOUT:
 Arrangement of physical facilities in the plant known as plant layout.
 Good layout leads to efficient and economical operations.
 Optimum utilization of machine equipment, work force and space.
 Should be flexible enough to adapt the changing business conditions.
8.INTERNAL ORGANISATIONS:
 Creation and development of internal structure.
 Function department are created.
 Network of authority responsibility relationship need to be created.
 Defines the official channel of communications.

8. 9. PERSONNEL REQUIREMENT:
 Estimates the numbers and types of employees required.
 Procurement , development and motivation of managers and workers.
 Person with the required skills, experience and attitude should be recruited.
 Continuous motivation of employees and managers.
10. LAUNCHING THE ENTERPRISE:
 Acquisition of land and building, plant and machinery, start of production are the main activities
performed in this stage.

9.  It refers to the arrangement of facilities in a particular work location.
 It implies physical arrangement of machines, equipment's and other industrial
facilities on the factory floor in such a manner so that handled efficiently.
 It is the plan of facilities, utilities, work services of a factory that will provide flow
of material and parts from receipt of raw material to the shipment of finished of
finished product.

10.  To minimize transportation and handling of material.
 To ensure maximum utilization of available floor space.
 To maximize the work in progress inventory by eliminating hurdles.
 To maximize convenience and safety of workers.
 To minimize cost of production.
 To obtain more efficient utilization of machinery, equipment and other facilities.
 To ensure efficient control over various production process.

11.  It refers to the scale of operations.
 Criteria used to judge the size of business is total assets, capital employed, numbers of workers
employed, capacity of plant, quantity of material and power used.
 A business may be carried on small, medium and large scale.
FACTORS EFFECTING THE SIZE OF BUSINESS:
Types of industry
Nature and variety of product
Size of market
Capital requirement
Policy of owners
Cost of transport

12.  Location of plant is an important entrepreneurial decision.
 Long term business decision.
 It influence cost of production and distribution.
 Appropriate location is helpful in efficient operation of plant.
 Most favorable location is that at which cost of gathering material, fabricating and distribution of
finished product will be minimum.

13.  Availability of raw material
 Nearness to market
 Labour supply
 Transportation and communication
 Power and fuel
 Climate and topography
 Supply of capital
 Personal and historical factors
 Government policy
 Strategic considerations.
 Momentum of early start( ancillary industries)