ENTREPRENEURSHIP ASSIGNMENT

NAME- VIREN MEHRA

ROLL NO.- 566
SECTION- C
SEMESTER- IV
B.COM(HONS)

Q1: - What is entrepreneurship. Discuss various types of entrepreneurs with

suitable examples and discuss various dimensions of entrepreneurship.

● Entrepreneurship can be defined as a systematic, purposeful and creative activity of

identifying a need, mobilising resources and organising production with a view to
delivering value to the customers, returns for investors and profits for the self in
accordance to the risks and uncertainties concerned with conducting a business.
● Entrepreneurship is considered as the willingness, ability or capacity of an individual
to seek out investment opportunities, to establish and run enterprises successfully. It
is associated with the identification of gaps and business opportunities in one's
immediate environment and bringing together the necessary resources in an
innovative way to fill these gaps bearing the risks involved and in the process gaining
personal rewards.

Four types of entrepreneurs are:

Innovative Entrepreneurs
This type of an entrepreneur is more interested in introducing some new ideas into the
market, organization or in the nation. They are drawn towards innovations and invest a lot
of time and wealth in doing research and development.
Eg.- Steve Jobs, Larry Page of Google and Microsoft founder Bill Gates who were
obsessed with their business.

Imitating Entrepreneurs
Imitators are the types of entrepreneurs who copy certain business ideas and improve upon
them. They are always looking for ways to make a particular product better so as to gain an
upper hand in the market.
Example Walton B.D. has introduced its motorbikes, refrigerators, televisions and other
electronic appliances in Bangladesh not being the original inventor of those products.

Fabian Entrepreneurs
These are entrepreneurs that are very careful in their approaches and cautious in adopting
any changes. They are not prone to sudden decisions and try to shy away from any
innovations or change that doesn’t fit their narrative.

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Example: Kodak, a company that happened to be the market leaders in producing analog
cameras but they did not realize the change and the Introduction of the Digicam, which
made them lose their leadership.
Drone Entrepreneurs
These are entrepreneurs who do not like a change. They are considered ‘old school’. They
want to do business in their own traditional or orthodox methods of production and systems.
Example: There is a “Beeree” (Old fashioned tobacco making process) producer
Cooperative that uses employees to make the tobacco by hand. Even though it is a dying
industry it does not stop them.

b) Following are the various dimensions of entrepreneurship:

1.Strategic orientation. Changes in technology may bring opportunities for an entrepreneur.

Moreover, changes in social trends, economic scenarios, political scenarios etc. can both act
as a source of opportunities as well as threats.
For example, Bajaj was the first company that identified the need for two wheelers among
the low- and middle-income masses of the country.

2. Commitment to opportunity. Entrepreneurs have to move beyond the identification

opportunity. An entrepreneur has to take risks and quickly take the necessary decisions to
ensure that he does not miss an opportunity.

3. Commitment of resources: In a multi-staged commitment of resources with a minimum

commitment at each decision point, he has to analyse the requirement of the amount of
resources needed along with the potential return such as Lack of predictable resource
needs, Lack of long term control, Social needs, Risk reduction, Formal planning system,
Direction of resources.

4. Control of resources. Control of resources is concerned with hiring or owing the

resources. Various factors influence the entrepreneur's resources regarding hiring or owning
the resources. Sources of finance and capital invested by an entrepreneur are major factors.

5. Management structure. Every entrepreneur has to manage people and resources. Span of
control, organisational climate, organisational culture etc all influence the decision of an
entrepreneur regarding management structure.

6. Reward philosophy. Entrepreneurial organisations have different reward philosophy as

compared to administratively managed organisations. The reward philosophy of an
entrepreneurial venture often influenced by:
● Expectations of an individual.
● Competition.
● Stakeholders demands.
● Societal norms.
● Public shareholders.

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Q2: - Define MSME and various schemes available for the development of
Micro, Small and Medium Enterprises. Why Msme is a role Model business in
India.
In accordance with the provision of MSMED Act, 2006 the Micro, Small and Medium
Enterprises (MSME) are classified in two Classes:
1. Manufacturing Enterprises- The enterprises engaged in the manufacture or
production of goods pertaining to any industry.
2. Service Enterprises-The enterprises engaged in providing or rendering of services

The limit for investment in plant and machinery / equipment for manufacturing / service
enterprises as declared by the Finance Minister, Nirmala Sitharaman in 2020 are as follows:

● Micro units
Investments upto Rs 1 crore and turnover of less than Rs 5 crore.
● Small units
Investment limit has been raised from Rs 5 crore to Rs 10 crore with a turnover of
less than 50 crore.
● Medium units
Enterprises with investments up to Rs 20 crore with a turnover of less than Rs 100
crore.

Government schemes to promote MSMEs

● Promulgation of MSMED Act 2006. Government has passed a MSMED Act, 2006. It
aims at promoting and developing the competitiveness of MSMES.
● Khadi and Village Industries Commission Act, 1956- Provisions were produced that
aimed at providing formal and structured consultation to MSMES
● Procurement Policy for MSE. The approach conceives that each central ministry PSU
will be a yearly objective for obtainment from the MSE area with the target of
accomplishing at least 20% of the aggregate buys from MSEs in a time span of three
years.
● Credit guarantee scheme. This scheme provided upto 75% of the credit facility upto
750 lakh with a uniform guarantee of 50% of the credit disclosure.
● National Manufacturing Competitiveness Programme. It is necessary for the growth
of MSMEs so that the MSME sector develops at a sound rate In order to achieve this
objective, it is essential that the small scale sector becomes more competitive.
● Technology Centre Systems Programme (TCSP). The Ministry of MSME
Government of India has set up 18 technology centres throughout the country for the
development of MSME.
● Employment Generation Programme. Prime Minister Employment Generation
Programme (PMEGP) The resistance is given as an endowment upto 25% of the
project count in rural regions, while it is 15% for urban regions.
● A Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship
(ASPIRE). The scheme aimed at speeding up business enterprise and moreover to
advance new businesses for development and business in the country and
agriculture-based industry.

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MSME- A Role Model Business in India

SMEs ARE THE BACKBONE OF INDIAN ECONOMY - MSME sector in India plays a
dominant role in attaining:
● balanced and sustainable industrial and economic development
● employment generation
● development of entrepreneurial skills among the people of the country
● increasing the export earnings of the country.
● second-largest employment provider
In India, at present, there are nearly 56 million such enterprises in various industries,
employing close to 124 million people. Due to this, the MSME sector is called the growth
engine of the nation and following reasons further strengthen the stand

The Gamut Of Employment Creation

● It leverages exports and bolsters economic stability through market growth.
● Today, multinational companies are purchasing semi-finished products and auxiliary
items from small businesses.
● Eg- automobile companies are buying brakes, rubber and clutch parts from this
sector. It creates a strong link between big companies and MSME.

Propelling inclusive growth

For MSME, A very big advantage is minimum overhead and cheap labour. MSME’s
organizations don’t need a highly skilled and certified labour. Hence, the owner incurs much
lesser indirect expenses.

Simplifying The Management Structure

● MSMEs don’t necessitate a massive capital to form. While the owner can control the
limited, available resources, decision-making is a lot more efficient and easier.
● The pivotal role MSME plays in concretizing ‘Make in India’. Thus, the government
has implored the financial institution to provide more credit to companies in the
MSME fold.
● It also plays a prominent role in nation development. Its operational flexibility, low-
intensive imports, location-specific mobility, capacities and bandwidth to develop
proper indigenous technology, and defence production and import substitution are a
driving force.
● It displays sheer competitiveness in export and domestic markets and has generated
a league of new entrepreneurs.

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Q3: - (a) What is entrepreneurial Sustainability. Explain with case study.

(b) What is the role of industries and self-help groups in economic

growth.

a) Entrepreneurial Sustainability.

● Sustainable entrepreneurship is a combination of two words sustainability and

entrepreneurship. It implies the use of business organisations to solve problems
related to social and environmental sustainability.
● Sustainability entrepreneurship refers to the creation of new ventures based on
understanding the ways social, financial and ecological systems interact.
● Sustainable entrepreneurs create profit enterprises but also achieve environmental
and social objectives. Social, environmental and sustainable entrepreneurs start and
run activities that initially may look like projects but actually have many of the same
attributes as small businesses. These are triple bottom line enterprises that aim at
seeking social, environmental and financial sustainability also called ‘People, Planet
and Profit’.(PPP). Thus, it can be concluded that PPP are the main elements or
dimensional sustainable entrepreneurship.

Case study
There are various examples of successful social entrepreneurs in India Bindeshwar Pathak
can be considered as one of the most successful social entrepreneurs in India. He is the
founder of the Sulabh Toilet movement. He came up with an idea for a toilet design that did
not require sewer lines but converted the waste into fertiliser. The entrepreneurial venture of
Bindeshwar Pathak is one of the best examples of combination of technical innovation and
humanitarian principles. The organisation has more than 50,000 volunteers and has been
working to promote human rights, environmental sanitation, non-conventional sources of
energy, waste management and social reform through education
Bindeshwar Pathak received Padma Bhushan from the Government of India in the year
2003 for his immense social contribution. The social entrepreneurial venture of Mr. Pathak
has provided jobs directly to 35,000 people and has an annual turnover of 2300 crore.

b) Industry is viewed as the leading sector to economic development. We can have

economies of scale by applying advanced technology and division of labour and scientific
management. So, production and employment will increase rapidly. This will bring:

● Development of Science and Technology

● Self-reliance in Defence Production
● Importance in International Trade
● Alleviation of Poverty and Unemployment
● Fast Growth of National and Per Capita Income
● Sign of Higher Standard of Living and Social Change
● Better utilization of Natural Resources
● Economic growth and capital formation

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 ● Self- help groups (SHGs) play today a major role in poverty alleviation in rural India.
A Growing number of poor people (mostly women) in various parts of India are
members of SHGs and actively engage in savings and credit (S/C), as well as in
other activities (income generation, natural resources management, literacy, child
care and nutrition, etc.).
● Self-help groups play an important role in the economic growth and development of
India. Sustainable development is a remote key of rural and semi urban areas, and
they start economic activities in the development of the society. In India, SHGs are
supported by the National Bank for Agricultural Rural Development (NABARD)
through non-government organizations, Regional rural banks, etc to promote and
facilitate credit linkage of these groups with banks.
● These groups are spread across the country and 85.77 lakhs SHGs present in the
country as in march 31, 2017.SHGs are for holistic development of the poor and
building the social capital on the pillars of affinity, trust and mutual support will be the
key for its success.
● Empowerment is a significant development foundation of the country, it is not only for
society it is also continuous processes of economic, social and political development.
It provides a greater access to knowledge and resources, more autonomy in decision
making, greater ability to plan lives and freedom from customs, beliefs and practices.
It is a multidimensional approach in income increase and poverty elimination in socio
economic aspect.
● The Self-help groups provide economic benefits to the women by providing income
generating activities. Economic independence facilitates in bringing about sexual
equality and increase in women’s income translates more directly into family
wellbeing.

Q4: - (a) What is the business plan. How to write a business plan with an
example?

(b) How to prepare a project report

a)
● A business plan is a written document that describes in detail how a business,
usually a new one or a new project, is going to achieve its goals. A business plan
lays out a written plan from a marketing, financial and operational viewpoint. It serves
as a blueprint to guide the firm's policies and strategies and is continually modified as
and when opportunities or threats occur.
● It gives a detail regarding the past, present and forecasted performance of the
enterprise. It describes the nature of the business, the sales and marketing strategy
and the financial background of an enterprise. It is a road map.A well prepared
attractive business plan is an essential document in the quest for either debt or equity
financing.

Guidelines that should be followed while preparing business plan:

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1. Conduct Market Research. First of all, scope the markets one’s planning to enter and
see if there is some headspace to accommodate the idea. By comparing ideas to
those already in motion, one can quickly assess where their plan excels and fall
short.
2. Identify audiences. Another major element to writing a top tier plan altering it for
specific readers and telling them exactly what they need to know. One should focus
on highlighting the aspects of the idea that are relevant.
3. Keep it short. Once the relevant Information without running long winded is
conveyed, the audience will be less likely to stop reading after going through the
initial lines. This will also indicate that one has a solid grasp of the plan.
4. Follow a Standardized Business Template. Audiences will be expecting certain
industry jargon, headlines and categories that follow each other in a precise manner.
5. Seek out Expert Advice and Ask for Help. At this point, one has considered the
financial risks, identified the audience and knows exactly what one aims to
accomplish. Now is the time to seek out Expert Advice for better presentation.
6. Take Action. A smart idea and an excellent business plan would not get you far
without taking action.
EXAMPLE OF A BUSINESS PLAN-

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b) Project Report
Writing a report is a useful opportunity to evaluate the project, document lessons learned,
and add to one’s organization’s knowledge base for future projects.

Steps to Write an Effective Project Report

1. Decide the Objective
Having a clear purpose from the outset ensures that one stays focused, which makes
it easier to engage the reader.
2. Understand Audience
Writing a formal annual report for the stakeholders is very different to a financial
review. Tailoring language, use of data and supporting graphics to the audience.
3. Report Format and Type
Before starting, check the report format and type. One should also confirm if any
templates are available within the organization.
4. Gather the Facts and Data
Including engaging facts and data will solidify the argument. Start with the
collaborative project site and work out as needed. Citing sources such as articles,
case studies, and interviews is beneficial

5. Structure the Report

A report typically has four elements:
● Executive Summary. The report will begin with the summary, which is written
once the report is finished.
● Introduction: Provide a context for the report and outline the structure of the
contents. Identify the scope of the report and any particular methodologies used
● Body: This is the longest section of the report - background details, analysis,
discussions, and recommendations for consideration. Draw upon data and
supporting graphics to support your position
● Conclusion: Bring together the various elements of the report in a clear and
concise manner. Identify next steps and any actions that your reader needs to
take.
6. Readability
Spend some time making the report accessible and enjoyable to read. Use formatting,
visuals, and lists to break up long sections of text
7. Edit
The first draft of the report is rarely perfect so one will need to edit and revise the content. If
possible, set the document aside for a few days before reviewing or ask a colleague to
review.

Q5: - (a) Basic problems Faced by Start-up. Explain with the help of suitable
examples.

(b) discuss various sources of finance for start-up .

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 a) Some of the major factors creating problems in commencement of business
discussed below:
● Bureaucracy Since new entrepreneurs have limited resources hence they find it
extremely difficult to divert time and attention to such time taking procedural issues of
taking large number of clearances before commencing the business
● Corruption. Often corruption hampers the growth of business within the entry as an
entrepreneur to pay vibes to you the required licenses and clearances.
● Labour- There is a shortage of skilled and semi-skilled labour in the country due to
lack of training and vocational educational programmes. Law Related to labour in the
country has to be followed by an entrepreneur.
● Regional sentiments- Entrepreneurs need to consider the sentiments of the
community. Often Starting up a business can pose a threat for existing local
entrepreneurs.
● Grey market and counterfeit goods- A new entrepreneur who wishes to create a
brand image of his products needs to tackle the problem of fake products and grey
market.
● Capital- Money is the biggest challenge faced by an entrepreneur who intends to
start up a new enterprise.
● Hiring right people- An entrepreneur has to build a strong team that can serve him for
a long time. It is important for an entrepreneur to get the right people in his team.
● Effective marketing on limited budget- An entrepreneur needs to reach his target
market by using effective marketing techniques and strategies within a prescribed
budget.
● Facing failure- Facing uncertainties and failure is another challenge for an
entrepreneur.
● Dealing with stress- An entrepreneur has to go through many stresses especially
related to business.

Example- Various Indian start-ups who faced problems and thus failed due to their inability
to identify these problems and tackle them beforehand:

Turant Delivery
This B2B based start-up was an intra-city logistics-provider initiated in 2015 with the aim of
bringing a new flavour in the Indian logistics industry.

Reason for failure: The company did not have the funds to sustain itself in the long run. A
logistics service provider needs intensive cash flow to run, which new start-ups fail to cope-
up with.

Roomstonite
Last minute hotel bookings usually end up in a mess and disappointment. To deal with this
issue, RoomsTonite was launched.

Reason for failure: Having very strong rivals like Makemytrip and OYO became one reason
for the failure. Another big reason for the failure of Roomstonite was credit crunch.

b) Various sources of finance for Start-ups are as follows:-

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Internal sources
Personal sources- savings, borrowings from friends and family, credit cards, etc.
Retained profits- This is the cash that is generated by the business when it trades profitably.
Share capital – The founding entrepreneur may decide to invest in the share capital of a
company, founded for the purpose of forming the start-up.

External Sources

● Share capital- Share capital consists of all external funds raised by a company in
exchange for shares of either common (equity) or preferred shares
● Term loans- This Facility offered by commercial banks and financial institutions. Such
a source of finance is often used for the purpose of growth and expansion of
business.
● Debenture capital- It is a vital tool for raising long term debt capital. Debentures can
either be secured or unsecured.
● Deferred credit- It is the facility that is provided by the suppliers of plant and
machinery under which payment for the purchase of P&M can be made over a period
of time as agreed upon by the buyer and seller at the time of purchase
● Business angels- Main kind of external investor in a start-up company. Business
angels are professional investors.
● Venture Capital - Venture capital is a specific kind of share investment that is made
by funds managed by professional investors.
● Incentives- The government may provide financial support as incentive to promoters
of certain industrial projects. Such incentives can be in the form of tax holidays, tax
exemptions and capital assistance
● Miscellaneous sources. A small portion of project finance can be arranged from
miscellaneous sources like public deposits, unsecured loans, leasing and hire
purchase finance

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