UNIT – II

Creativity and Entrepreneurial Plan

Idea Generation, Screening and Project Identification:
Idea generation for an entrepreneur means discovering a business idea or developing
an idea into a feasible business concept. Such an idea can be a plan, proposal, suggestion,
opinion or belief. A well informed entrepreneur gets better chances of identifying the upcoming
opportunities.

Idea Generation is the process of creating, developing, and communicating ideas which
are abstract, concrete, or visual. The process includes the process of constructing through the
idea, innovating the concept, developing the process, and bringing the concept to reality.

Generation of Ideas

 SWOT Analysis
 Determination of objectives
 Brainstorming

Project screening means research and analysis of data contained in an investment

project to determine whether the proposed investment project requires initial environmental
examination or environmental impact assessment or not.

A Project Screening is a preliminary assessment or examination of the project

suitability for the selection and application process or development methodology that evaluates
or investigates many project candidates. The Project Screening identifies the opportunities to
obtain an idea of whether the additional time and efforts consuming for further business cases,
and may conducts by different procedures and methods to compare the strengths and
weaknesses.

Project identification is a process in the initiating phase of project life cycle for
identifying a need, problem, or opportunity. Once identified, a project is initially documented
objectively defining what was identified.

Project managers can use several tools to identify risks in a project. They include

 documentation reviews,
 information gathering,
 brainstorming,
  checklist analysis,
 assumption analysis,
 diagramming,
 SWOT analysis and
 expert judgment techniques.

OBJECTIVES

 To increase profits
 To minimize threats of losses
 To become more competitive
 To provide help after a disaster
 To train people in a new area
 To reduce pollution in Delhi
 To become a successful entrepreneur

Feasibility Analysis

A feasibility analysis that considers all of a project's relevant factors—including

economic, technical, legal, and scheduling considerations—to ascertain the likelihood of
completing the project successfully.
A feasibility analysis is also known as feasibility study, it is mainly conducted to
evaluate the cost viability of a new business venture and ascertain the likelihood of its success.
In addition to this, we also assess the practicality of the underlying technical, legal, operational,
and scheduling aspects of the project.
When these areas have all been examined, the feasibility analysis helps identify any
constraints the proposed project may face, including:
Internal Project Constraints: Technical, Technology, Budget, Resource, etc.
Internal Corporate Constraints: Financial, Marketing, Export, etc.
External Constraints: Logistics, Environment, Laws, and Regulations, etc.
There are five types of feasibility analysis:
1. Technical
2. Economical
3. Legal
4. Operational
5. Scheduling

1. Technical Feasibility

This assessment focuses on the technical resources available to the organization. It helps
organizations determine whether the technical resources meet capacity and whether the
technical team is capable of converting the ideas into working systems. Technical feasibility
also involves the evaluation of the hardware, software, and other technical requirements of the
proposed system.

2. Economic Feasibility

This assessment typically involves a cost/ benefits analysis of the project, helping organizations
determine the viability, cost, and benefits associated with a project before financial resources
are allocated. It also serves as an independent project assessment and enhances project
credibility—helping decision-makers determine the positive economic benefits to the
organization that the proposed project will provide.

3. Legal Feasibility

This assessment investigates whether any aspect of the proposed project conflicts with legal
requirements like zoning laws, data protection acts or social media laws. Let’s say an
organization wants to construct a new office building in a specific location. A feasibility study
might reveal the organization’s ideal location isn’t zoned for that type of business. That
organization has just saved considerable time and effort by learning that their project was not
feasible right from the beginning.

4. Operational Feasibility

This assessment involves undertaking a study to analyze and determine whether—and how
well—the organization’s needs can be met by completing the project. Operational feasibility
studies also examine how a project plan satisfies the requirements identified in the
requirements analysis phase of system development.
5. Scheduling Feasibility

This assessment is the most important for project success; after all, a project will fail if not
completed on time. In scheduling feasibility, an organization estimates how much time the
project will take to complete.

Project evaluation, Monitoring and Control:

Monitoring and controlling is essentially required in any project simply because things
don’t always go according to plan no matter how much we prepare and to detect and react
appropriately to deviations and changes to the plan.

Monitoring is concerned with the gathering of information and connecting them with the
project plans and objectives.

Evaluation is interpretation & estimating the collected information.

Control is the corrective action that is undertaken if the desired result is not achieved. They
are three separate actions but go hand in hand as tools for assessing the status and success of a
project.

Project Monitoring

Project Monitoring refers to the method of keeping track of all project-related metrics including
team performance and task duration, identifying possible problems, and taking remedial actions
necessary to ensure that the project is within scope, on budget, and meets the stipulated
deadlines.

Project Evaluation

Evaluation is a systematic and objective assessment of an on-going or completed activity,

project program, strategy, Policy, and its design, implementation, and result. as an essential
part of the policy development process, evaluation provides a timely assessment of the
relevance, efficiency, effectiveness, impact, and sustainability of interventions.

Project Control

Control uses the monitored data and information to bring actual performance into an agreement
with the plan. It Involves comparing actual performance with planned performance and taking
appropriate corrective action that will yield the desired outcome in the project when a
significant difference exists.

Segmentation, Targeting and Positioning of Product

STP marketing is an acronym for Segmentation, Targeting, and Positioning – a three-step

model that examines your products or services as well as the way you communicate their
benefits to specific customer segments.

In a nutshell, the STP marketing model means you segment your market, target select customer
segments with marketing campaigns tailored to their preferences, and adjust your positioning
according to their desires and expectations.

STP marketing is effective because it focuses on breaking your customer base into smaller
groups, allowing you to develop very specific marketing strategies to reach and engage each
target audience.

STP marketing represents a shift from product-focused marketing to customer-focused

marketing. This shift gives businesses a chance to gain a better understanding of who their
ideal customers are and how to reach them. In short, the more personalized and targeted your
marketing efforts, the more successful you will be.
Segmentation

The first step of the STP marketing model is the segmentation stage. The main goal
here is to create various customer segments based on specific criteria and traits that you
choose. The four main types of audience segmentation include:

1. Geographic segmentation: Diving your audience based on country, region, state,

province, etc.
2. Demographic segmentation: Dividing your audience based on age, gender,
education level, occupation, gender, etc.
3. Behavioral segmentation: Dividing your audience based on how they interact with
your business: What they buy, how often they buy, what they browse, etc.
4. Psychographic segmentation: Dividing your audience based on “who” your
potential customer is: Lifestyle, hobbies, activities, opinions, etc.

Targeting

Step two of the STP marketing model is targeting. Your main goal here is to look at the
segments you have created before and determine which of those segments are most likely
to generate desired conversions.

1. Size: Consider how large your segment is as well as its future growth potential.
2. Profitability: Consider which of your segments are willing to spend the most
money on your product or service. Determine the lifetime value of customers in
each segment and compare.
3. Reachability: Consider how easy or difficult it will be for you to reach each
segment with your marketing efforts. Consider customer acquisition costs (CACs)
for each segment. Higher CAC means lower profitability.

Positioning

The final step in this framework is positioning, which allows you to set your product
or services apart from the competition in the minds of your target audience. There are a lot
of businesses that do something similar to you, so you need to find what it is that makes you
stand out.

All the different factors that you considered in the first two steps should have made it easy for
you to identify your niche. There are three positioning factors that can help you gain a
competitive edge:

1. Symbolic positioning: Enhance the self-image, belongingness, or even ego of your

customers. The luxury car industry is a great example of this – they serve the same
purpose as any other car but they also boost their customer’s self-esteem and image.
 2. Functional positioning: Solve your customer’s problem and provide them with
genuine benefits.
3. Experiential positioning: Focus on the emotional connection that your customers
have with your product, service, or brand.

Role of SIDBI in Project Management:

The SIDBI (Small Industries Development Bank of India) is a wholly-owned subsidiary

of IDBI (Industrial Development Bank of India), established under the special Act of the
Parliament 1988 which became operative from April 2, 1990.

SIDBI was made responsible for administering Small Industries Development Fund
and National Equity Fund that were administered by IDBI before. SIDBI is the Primary
Financial Institution for promoting, developing and financing MSME (Micro, Small and
Medium Enterprise) sector. Besides focussing on the development of the Micro, Small and
Medium Enterprise sector, SIDBI also promotes cleaner production and energy efficiency.

SIDBI helps MSMEs in acquiring the funds they require to grow, market, develop and
commercialize their technologies and innovative products. Finance Facilities Offered by SIDBI
Small Industries Development Bank of India, offers the following facilities to its customers:

Direct Finance

SIDBI offers Working Capital Assistance, Term Loan Assistance, Foreign Currency

Loan, Support against Receivables, equity support, Energy Saving scheme for the

MSME sector, etc. under its various direct finance loan schemes.

Indirect Finance

SIDBI offers indirect assistance by providing Refinance to PLIs (Primary Lending

Institutions), comprising of banks, State Level Financial Institutions, etc. with an extensive
branch network across the country.

Micro Finance

Small Industries Development Bank of India offers microfinance to small businessmen and
entrepreneurs for establishing their business.

Functions of SIDBI
Small Industries Development Bank of India refinances loans that are extended by the PLIs to
the small-scale industrial units and also offers resources assistance to them.

 It discounts and rediscounts bills.

 It also helps in expanding marketing channels for the products of SSI (Small Scale
 Industries) sector both in the domestic as well as international markets.
 It offers services like factoring, leasing etc. to the industrial concerns in the small-scale
sector.
 It also initiates steps for modernisation and technological up-gradation of current units.
 It also enables the timely flow of credit for working capital as well as term loans to
Small Scale Industries in cooperation with commercial banks.
 It also co-promotes state-level venture funds.

Benefits of SIDBI

Custom-made

SIDBI policies loans as per the requirements of your businesses. If your requirement doesn’t
fall into the ordinary and usual category, Small Industries Development Bank of India would
assist in funding you in the right way.

Dedicated Size

Credit and loans are modified as per the size of the business. So, MSMEs could avail different
types of loans custom-made for suiting their business requirement.

Attractive Interest Rates

It has a tie-up with several banks and financial institutions over the world and could offer
concessional interest rates. The SIDBI has tie-ups with World Bank and the Japan International
Cooperation Agency.

Assistance

It does not just provide a loan, it also offers assistance and much-required advice. Its
relationship managers assist entrepreneurs in making the right decisions and offering assistance
till the loan process ends.

Security Free

Businesspersons could get up to Rs.100 lakhs without providing security.

Capital Growth

Without tempering the ownership of a company, the entrepreneurs could acquire adequate
capital for meeting their growth requirements.

Equity and Venture Funding

It has a subsidiary known as SIDBI Venture Capital Limited which is wholly owned that offers
growth capital as equity through venture capital funds that focusses on MSMEs.

Subsidies

SIDBI offers various schemes which have concessional interest rates and comfortable terms.
SIDBI has in-depth knowledge and a wider understanding of schemes and loans available and
could help enterprises in making the best decision for their businesses.