This document discusses various topics related to entrepreneurship including theories of entrepreneurship, the role of entrepreneurship in economic development, motives for entrepreneurship, knowledge and skills required, characteristics of successful entrepreneurs, importance of entrepreneurship, and factors impacting entrepreneurship emergence. It also covers topics like the need for project reports, components of a business plan, sources of new business ideas, importance of generating new ideas, and role of environment scanning.

1. ENTREPRENEURSHIP
Q1. Viewsonentrepreneurshipanditsfeatures
1. Theoryof religiousbelief- max weber:
I. Spiritof capitalism:
II. Adventurousspirit:
III. Protestantethic:
2. Schumpeterstheoryof innovationaccordingtoSchumpeter:
I. Distinctionbetweeninventionand innovation:
II. Emphasisonentrepreneurial functions:
III. Presentationof disequilibriumsituationthroughentrepreneurial activity:
3. Hoselitzstheory:
4. Theoryof personal resourcefulness:
I. Cognitive function:
II. Hitmanaspectsof psychology:
ROLE OF ENTREPRENEURSHIPIN ECENOMICDEVELOPMENT
1. Createslarge scale employmentopportunities:
2. Balancedregional development:
3. Increase innational income:
4. Promotescountry’sexporttrade:
5. Newproducts,newservicesandnew business:
6. Dispersal of economicpower:
7. Betterstandardsof living:
8. Creatinginnovation:
9. Productionevolutionprocess:
10. Enhancementwelfare amenities:
Q2. MOTIVE FOR ENTREPRENEURSHIP
1. To make money:
2. To secure self-employment/independentliving:
3. To gain social prestige:
4. Desire tobe creative:
KNOWLEDGE REQUIRED FORENTREPRENEURSHIP
1. Academictechnical knowledge:
2. Knowledgeof financial management:
3. Knowledgeof operationsmanagement:
4. Knowledgeof law:
5. Basic computerknowledge:
SKILLSREQUIRED FOR ENTREPRENEURSHIP
1. Administrationskills:

2. 2. Financial knowhow:
3. Visionandleadershipskills:
4. Conflictandconsensusmanagementskills:
I. Emotional/affectiveconflict:
II. Cognitive conflict:
5. Interpersonal skills:
6. Communicationskills:
I. Writingskills:
II. Speakingskills:
III. Listeningskills:
7. Problemsolvingskills:
8. Technical skills:
Q3. CHARACTERISTICSOFSUCCESSFUL ENTREPRENEURS
1. Determinationtosucceed:
2. Independence:
3. Risk- taking:
4. Abilitytocontrol:
5. Perseverance:
6. Analytical abilityof mind:
7. Confrontinguncertainty:
8. Stresstakers:
9. Innovative andcreative:
10. Abilitytomobilise resource:
11. Leadership:
Q4. IMPORTANCEOF ENTREPRENEURSHIP
1. Growth of Entrepreneurship:
2. A Creationof jobopportunities:
3. Innovation:
4. Impact oncommunitydevelopment:
5. Consequence of businessfailure:
6. Political andeconomicintegrationof outsiders:
7. Spawns entrepreneurship:
8. Enhancesstandardof living:
9. Promotesresearchanddevelopment:
Q5. FACTORSIMPACTINGEMERGENCE ENTREPRENEURSHIP
1. Economicfactors:
I. Availabilityof economicresources:
II. Economiccondition:
III. Economicpolicies:
IV. Labour policies:
V. Trade policy:
VI. Tariff policy:
VII. Incentives:

3. VIII. Subsidies:
2. Non-economicfactors:
I. Social factors:
II. Cultural factors:
III. Personalityfactors:
IV. Psychological andsociological factors:
V. Technological factors:
VI. Educational factors:
VII. Motivation:
UNIT-2
Q1. NEED FOR PROJECT REPORT/SIGNIFICANCEOFPROJECTREPORT
The significance of projectreportisexplainedasfollows:
1. Acts like aroad map:
2. Basisfor obtainingloans:
3. Reflectseconomicsoundness:
4. Others
I. Record:
II. Future reference:
III. Registration:
IV. Issue of shares:
COMPONENTS/CONTENTSOFA PROJECTREPORT
The importantcontentsof projectreportinclude-
1. Backgroundto the project:
2. Termsof reference:
3. Existingsystem:
4. Systemrequirements:
5. Proposedsystems:
6. Financial aspects:
7. Alternativesconsidered:
PREPARINGPROJECTREPORT
1. Selectinganidea:
2. Observation:
3. Scanningof businessenvironment:
4. Preparationof projectreport:
Q2. STEP COVERED IN A BUSINESSPLAN
1. Self-Audit:
2. Evaluatingthe businessenvironment:
3. Settingobjectivesandestablishinggoals:

4. 4. Forecastingmarketconditions:
5. Startingactionsand resourcesrequired:
6. Evaluatingproposedplans:
7. Assessingalternative strategicplans:
8. Controllingthe planthroughthe annual budget:
Q3. SOURCES OFIDEAS FORNEW VENTURES/BUSINESS
1. Consumers:
2. Existingproductsandservices:
3. Distributionchannel:
4. Trends:
5. Researchanddevelopment:
6. Government:
7. Strategicchanges:
8. Exhibitions:
METHODS OF CREATIVEPROBLEMSOLVING
1. Brainstorming:
2. Reverse brainstorming:Similartobrainstorming, butcriticismisallowed andencouraged as
a way to bringout possible problemswith the ideas
3. Synectics:
4. Checklistmethod:
5. Heuristics:It is methodof developinga new ideathrough a thoughtprocess progression
6. Value analysis: Value analysisisdevelopinganew ideabyevaluating
the worth of aspectsof ideas.
7. Attribute listing:This isan ideafindingtechnique thatrequires the entrepreneurto listthe
attributesof an itemorproblemand thenlook at each froma varietyof viewpoints.
8. Matrix charting: Matrix chartingis a systematicmethod
of searchingfornew opportunities bylistingimportantelementsfor
the product areaalong twoaxisof chart andthenaskingquestions regardingeachof these e
lements.
Q4. SIGNIFICANCEOFGENERATINGNEW IDEA IN INTERPRENEURSHIP
1. Start with family:Tappingfamilyforgreatbusinessideasmaynotseemlike anobviousfirst
step.Sure,you'll hitthemupfor cash once you've developedyouridea,butwhatcan your
agingfatheror cousinMargaret contribute thisearlyin the process.
2. Get a little helpfromyourfriends:
3. Look at all the thingsthat bugyou:
4. Tap your interests:
5. Travel:
6. Keepyoureyesopen:
7. Examine oldmousetraps--thenbuildabetterone:
8. Take it to the streets:
9. Sleeponit:

5. 10. Checkout the Net:
Q5. ROLE/ IMPORTANCEOF ENVIRONMENTSCANNING
1. Identificationof strength:
2. Identificationof weakness:
3. Identificationof opportunities:
4. Identificationof treats:
5. Optimumuse of resources:
6. Survival andgrowth:
7. To planlongterm businessstrategy:
8. Helpindecisionmaking:
ROLE/IMPORTANCEOFINDUSTRY ANALYSIS
1. Analysisof industryattractiveness:
2. Studiesthe competitive positionof afirm:
3. Analysesthe environmental variables:
4. Helpsinstrategyformulation:
Q6. INFORMATION NEEDSFOR PREPARING/ELEMENTS OF BUSINESSPLAN
1. Introductorypage:
2. Executive summary:
3. Venture description:
4. Market analysis:
5. Feasibilityanalysis:
6. Productionplan:
7. Operationsplan:
8. Technical plan:
9. Marketingplan:
10. Financial plan:
11. Organisationandmanagement:
12. Human resource plan:
13. Social plan:
14. Critical riskand contingencyplan:
15. Schedulingandmilestones:
16. Appendix:
SOURCES OF INFORMATION FORPREPARINGTHE BUSINESSPLAN
1. Businessrecords:
2. Marketingdata:
3. SWOT analysis:

6. UNIT-3
Q1. PROCESSOF A MARKET SURVEY/ MARKETING RESEARCH
1. Problemdefinition:
2. Developmentof an approachto the problem:
3. Researchdesignformulation:
I. Exploratoryresearch:
II. Descriptive research:
III. Causal research:
4. Fieldworkordatacollection:
5. Data preparation,analysisandinterpretation:
6. Reportpreparationandpresentation:
ADVANTAGES/IMPORTANCEOF MARKET SURVEY/MARKETINGRESEARCH
1. Decisionmaking:
2. Managementplanning:
3. Problemsolving:
4. Control technique:
5. Large scale production:
6. Helpsindealingwithcomplexmarket:
7. Patternof consumption:
8. Suitable marketingoperations:
9. Marketingstrategy:
10. Operatingmanagerial functions:
LIMITATIONSOF MARKET SURVEY/ MARKETINGRESEARCH
1. Fragmentary:
2. Superficial andfaulty:
3. Communicationgap:
4. Nota science:
5. Misused:
6. Delayindecision:
Q2. STEPS INVOLVEDIN PREPARINGA MARKETING PLAN FORA NEW BUSINESS
1. Define the marketinggoalsandobjectives:
2. Outline the image:
3. Decide onthe keysellingfeatures:
4. Checkthe products:
5. Decide ona pricingstrategy:
6. Analyse whycustomersbuythe product:
7. Setout a customerprofile:
8. Define the sellingplace:
9. Developamarketingbudget:
10. State the strengthsand weaknessesof the business:

7. 11. Reviewandchoose anappropriate promotionalmethod:
12. Create the advertisingandmake certainthatitfitsthe businessimage:
13. Implementthe plan:
14. Monitorprogressof marketingaction:
CONTINGENCYPLANNINGFORA NEW BUSINESS/ISSUES COVEREDUNDER CONTINGENCYPLAN
1. Crisismanagement:
2. Continuityplan:
3. Assetsecurityplan:
4. Mismanagementplan:
5. Re-organisationplan:
Q3. PROCESSOF MANPOWERPLANNING
1. Environmental scanning:
2. Organisational objectivesandpolicies:
3. Demand forecasting:
4. Supplyforecasting:
5. Estimatingmanpowergaps:
6. Actionplanning:
7. Evaluationandcontrol:
ADVANTAGESOFMANPOWERPLANNING
1. It isuseful bothfororganization andnation.
2. It generates facilitiestoeducate peopleinthe organization.
3. It bringsabout fasteconomicdevelopments.
4. It booststhe geographical mobility of labor.
5. It provides smoothworkingevenafterexpansion of the organization.
6. It openspossibility forworkers forfuture promotions, thusprovidingincentive.
7. It createshealthy atmosphere of encouragementandmotivation intheorganization.
8. Trainingbecomes effective.
9. It provides helpforcareerdevelopmentof the employees.
StepsinManpowerplanning
1. Predictmanpowerplans
2. Designjobdescription andthe jobrequirements
3. Findadequate sourcesof recruitment.
4. Give boostto youngsters byappointmenttohigherposts.
5. Best motivation forinternal promotion.
6. Look afterthe expected lossesdue toretirement, transferandotherissues.
7. See for replacementdue toaccident, death, dismissals andpromotion.
BARRIERSTO MANPOWER PLANNING
1. Identify Crisis: Many human resource specialists and the managers do not understand the
whole manpowerplanningprocess. Because of this,there is generally an identity crisis. Till
the specialists develop a strong sense of purpose, planning cannot be effective.
2. Support of Top Management:
3. Insufficient Initial Efforts:

8. 4. Management Information System:
5. Uncertainties:
6. Expensive and Time Consuming:
7. Coordination with other Managerial functions:
8. Unbalanced Approach:
Q4. PROCESSFO BREAK EVEN ANALYSIS
Here are the stepsto take to determine break-even:
1. Determine Variable UnitCosts: Determine the variable costsof producingone unitof this
product.Variable costsare those costsassociatedwithmakingthe productor buyingit
wholesale.If youare makinga product,youwill needtoknow the cost of all the
componentsthatgo intothat product.
2. Determine FixedCosts:
3. Determine UnitSelling Price:
4. Determine SalesVolume andUnitPrice:
5. Create a Spreadsheet:
UNIT-4
Q1. CAPITALSTRUCTURE
Capital structure or capital frameworkof a companycomprisesof longtermcapital fundsraised byit
fromdifferentsourcesforthe conductof itsbusiness.Variouscomponentsof the capital structure
are raisedfromtime totime to meetthe needsof the companyandgenerallyconsistof:
1. Equityshares.
2. Preference shares.
3. Debtfunds.
4. Fundsborrowedonlongtermbasis
5. Retainedearnings.
IMPORTANCEOF CAPITALSTRUCTURE
1. To reduce the overall riskof a company:
2. To adjustaccordingto businessenvironment:
3. Ideagenerationof newsource of funds:
DETERMINANTSOF CAPITALSTRUCTURE
1. Financial leverage ortradingonequity:
2. Operationleverage:
3. EBIT/EPSanalysis:
4. Cost of capital:
5. Growth andstabilityof sales:
Q2. ADVANTAGESOFDEBT FINANCING
1. Higherrate of return:
2. Quickerexpansion:

9. 3. Maintainscomplete ownership:
4. Tax benefits:
5. Great freedom:
DISADVANTAGESOF DEBT FINANCING
1. Highinterestrates:
2. Impactscreditrating:
3. Cash andcollateral security:
4. Repayment:
ADVANTAGESOFEQUITY FINANCING
1. Relief fromrepaymentobligation:
2. Interestsaving:
3. Reflectsfinancial feasibility:
4. Learn andgain frompartners:
5. Follow-upfunding:
DISADVANTAGESOFEQUITY FINANCING
1. Loss of control:
2. Loss of profits:
3. Transferof votingrights:
4. Personal relationships:
5. Time and money:
Q3. VARIOUSSOURCE OF FINANCE
1. Short-termsources:
I. Trade credit:
II. Accruedexpensesanddeferredincome:
III. Commercial paper:
IV. Certificatesof deposit:
V. Letterof credit:
VI. Instalmentcredit:
VII. Bank finance:
VIII. Factoring:
IX. Bill discounting:
2. Mediumtermsources:
I. Financial institutions:
II. Commercial banks:
III. Publicdeposits:
IV. Hire purchase:
V. Lease financing:
VI. Currencybonds:
VII. Instalmentcredit:
3. Long-termsources:
I. Shares:
II. Debentures:
III. Term loans:

10. IV. Lease financing:
V. Venture capital investing:
FINANCIALSCHEMESOFFERED BY COMMERCIAL BANKS
1. Term loans:
2. Instalmentcredit:
3. Special schemesof assistance:
4. Creditguarantee scheme:
Q4.