Sam Walton outlined 10 rules for success for entrepreneurs and business owners. The rules include committing fully to your business, sharing profits with employees and treating them as partners, motivating employees through goals and rewards, communicating extensively with employees to empower them, appreciating employees, celebrating successes and learning from failures, listening to employees, exceeding customer expectations, standing behind your products and services, and controlling expenses better than competitors. The document also provides background information on small scale industries in India, including their role in the economy, characteristics of small scale businesses, objectives of small businesses, challenges they face, and government organizations that support small businesses in India.

1. Entrepreneurship Session-9 30/03/07

2. Sam Walton's 10 Rules for Success Commit to your business. Believe in it more than anything else. If you love your work, you’ll be out there every day trying to do the best you can, and pretty soon everybody around will catch the passion from you - like a fever.

3. Sam Walton's 10 Rules for Success Share your profits with all your associates, and treat them as partners. In turn, they will treat you as a partner, and together you will all perform beyond your wildest expectations

4. Sam Walton's 10 Rules for Success Motivate your partners. Money and ownership aren’t enough. Set high goals, encourage competition and then keep score. Make bets with outrageous payoffs.

5. Sam Walton's 10 Rules for Success Communicate everything you possibly can to your partners. The more they know, the more they’ll understand. The more they understand, the more they’ll care. Once they care, there’s no stopping them.

6. Sam Walton's 10 Rules for Success Information is power, and the gain you get from empowering your associates more than offsets the risk of informing your competitors.

7. Sam Walton's 10 Rules for Success Appreciate everything your associates do for the business. Nothing else can quite substitute for a few well-chosen, well-timed, sincere words of praise. They’re absolutely free and worth a fortune.

8. Sam Walton's 10 Rules for Success Celebrate your success and find humor in your failures. Don’t take yourself so seriously. Loosen up and everyone around you will loosen up. Have fun and always show enthusiasm. When all else fails put on a costume and sing a silly song.

9. Sam Walton's 10 Rules for Success Listen to everyone in your company, and figure out ways to get them talking. The folks on the front line - the ones who actually talk to customers - are the only ones who really know what’s going on out there. You’d better find out what they know.

10. Sam Walton's 10 Rules for Success Exceed your customer’s expectations. If you do they’ll come back over and over. Give them what they want - and a little more. Let them know you appreciate them. Make good on all your mistakes, and don't make excuses - apologize.

11. Sam Walton's 10 Rules for Success Stand behind everything you do. ‘Satisfaction guaranteed’ will make all the difference.

12. Sam Walton's 10 Rules for Success Control your expenses better than your competition. This is where you can always find the competitive advantage. You can make a lot of mistakes and still recover if you run an efficient operation. Or you can be brilliant and still go out of business if you’re too inefficient.

13. Sam Walton's 10 Rules for Success Swim upstream. Go the other way. Ignore the conventional wisdom. If everybody is doing it one way, there’s a good chance you can find your niche by going exactly in the opposite direction.

14. Small Scale Business: The Small Scale Sector is the natural habitat of entrepreneurs. Most entrepreneurs start small and then nurture their units into large industries.

15. Economic Indicators: The small-scale industries sector plays a vital role in the growth of the country. It contributes almost 40% of the gross industrial value added in the Indian economy.

16. Economic Indicators: The number of small-scale units has increased from an estimated 0.87 million units in the year 1980-81 to over 3 million in the year 2000.

17. Role of Small Business In Indian Economy Employment: It has been estimated that 100,000 rupees of investment in fixed assets in the small-scale sector generates employment for four persons.

18. Role of Small Business In Indian Economy Export promotion: 45%-50% of the Indian Exports is contributed by SSI Sector. Direct exports from the SSI Sector account for nearly 35% of total exports . It is estimated that small-scale industrial units contribute around 15% to exports indirectly.

19. Role of Small Business In Indian Economy The exports from SSI sector have been clocking excellent growth rates in this decade. It has been mostly fuelled by the performance of garments, leather and gems and jewellery units from this sector.

20. Role of Small Business In Indian Economy SSI sector dominates in exports, are: sports goods, readymade garments, woollen garments and knitwear, plastic products, processed food and leather products.

21. Role of Small Business In Indian Economy Share in Industrial production: Development of Entrepreneurship: Optimization of Capital: Balanced regional development: Mobilisation of local resources: Consumer surplus: Feeder to large scale industries:

22. Business In India Small scale business: Having investment in fixed assets in plants and machinery: not exceeding 65 lakhs. Ancillary Industries: Industrial undertakings having investment in plant and machinery not exceeding 75lakhs. Engaged in manufacture of spare parts, components

23. Business In India Ancillary Industries :tooling Tiny Units: Fixed investments in plants and machinery not exceeding 5 lakhs. Egs: Laundry,xeroxing,repairs and maintainence,hatching,poultry etc. Small scale service Establishments:Enterprise engaged in personal or household services in rural areas and towns.

24. Business In India Household Industries:Like artisans, skilled craftsmen and technician with less than 300 sq ft space, less than KW Power, less than 5 workers and no pollution is caused.

25. Small Scale Industries Nature and Characteristics: Personal Character: Owner himself is generally the manager. Owner has first hand information on the business. He is the active participator in decision making

26. Small Scale Industries Nature and Characteristics: Closely Held: A small scale unit is a one man show. It is held by one person or small group of persons

27. Small Scale Industries Nature and Characteristics: Local area of operation: Labour Intensive: Generally labour intensive. Capital investment is limited. Use of simple technology.

28. Small Scale Industries Nature and Characteristics: Indigenous Resources:These units use local resources. Decentralized operations. Simple organization: There are no layers of management. Division of labour is low. Resources are limited.

29. Small Scale Industries Nature and Characteristics: Limited scale of operation: Limited share of a given market. Size of industry is also small. Limited scope for expansion:

30. Objectives of small business: To generate immediate and large scale employment opportunities with relatively low investment. To eradicate unemployment problem from the country. To encourage dispersal of industries to all over the country .

31. Objectives of small business: To bring backward areas too in the mainstream of national development. To promote balanced regional development in the whole country. To ensure more equitable distribution of national income. To improve the level of living of people in the country.

32. Small scale business as a seedbed of Entrepreneurship: It creates more self-employment. Usually based on local resource. These industries can be located anywhere. Quick return. Requires simple technology and low managerial skills. These units help to maintain and retain traditional skills and handicrafts.

33. Small scale business as a seedbed of Entrepreneurship: Small units assist large and medium industries by acting as ancillaries

34. Small Scale Business: The SSI Sector provides an opportunity for them to hone their skills and talents, to experiment, to innovate and transform their ideas into goods and services needed by the society.

35. Problems of Small Scale Industries: Problem of raw material: Problem of Finance: Problem of Under utilization of Capacity: Outdated Technology: Poor project planning: Inadequate infrastructure:

36. Large v/s Small Scale: Small business fosters change through a cycle of birth and death. The large business pattern of change takes place through expansion and contraction. Risk or reward is personal in the case of small business and its calculation is circumscribed by the potential fortunes of a single line of business.

37. Large v/s Small Scale: In large organizations, risk or reward decisions are made by employee managers without livelihood stake. The judgement includes long range welfare of large perpetual organization. Small business is in no position to influence its immediate economic environment but big business does.

38. Large v/s Small Scale: Because of its general competitive inferiority, small business must make greater use of secondary resources whereas business due to superior size has a first call on most of primary resources.

39. Large v/s Small Scale: Small business serves markets which big business doesn't wish or cannot serve.

40. Internal Relationship between large and small business: Competitive: Purchase sub-contracting: Complimentary: Maintenance and repair services: Social benefits of inter-linkages:

41. Profile of SSI Sector in India 95% of Industrial Units in the Country 34.29% of National Exports 6.86% of Gross Domestic Product

42. Profile of SSI Sector in India Employment To 193 Lakh Persons Production of Over 7500 Items in the Industrial Sector 298 Items Reserved for Exclusive Manufacture 358 Items for Exclusive Purchase from This Sector

43. Small Scale Business: 70 percent of the total innovations in the world have come from the Small Scale Sector: Siemens, Ford, Eastman Kodak, Lever Brothers, Reliance, Nirma, Rasna were all started small and then nurtured into big businesses.

44. Small Industries Development Organization (SIDO) It is an apex body for assisting the Ministry in: formulating, coordinating, implementing and monitoring policies and programmes for the promotion and development of small scale industries in the country

45. National Small Industries Corporation (NSIC) Ltd. Was set up with a view to promoting, aiding and fostering the growth of small scale industries in the country with focus on commercial aspects of these functions. NSIC continues to implement its various programmes and projects throughout the country to assist the SSI units.

46. The Corporation has been assisting the sector through the following schemes and activities: Supply of both indigenous and imported machines on easy hire-purchase terms Composite term loan scheme Procurement, supply and distribution, of indigenous and imported raw- materials Marketing of small industries products

47. The Corporation has been assisting the sector through the following schemes and activities: Export of small industries products and developing export-worthiness of small scale units Enlisting competent units and facilitating their participation in Government Stores Purchase Programme

48. The Corporation has been assisting the sector through the following schemes and activities: Sensitizing SSI units on technological up gradation through Software Technology Parks and Technology Transfer Centers Mentoring & advisory services Technology business incubators Setting up small scale industries in other developing countries on turnkey basis