INTEGRAL UNIVERSITY

Assignment of Entrepreneurship.

TOPIC: Questions Given.

SUBMITTED BY: SUBMITTED TO:

Kais Ahmed Ansari Dr Noor Alam Khan
COURSE: BB.A.LL. B Law Faculty
COURSE CODE: BM325
ENROLLMENT NO: 2100102767

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 ACKNOWLEDGMENT
I would like to express my special thanks of
gratitude to my teacher Dr Noor Alam Khan Sir,
who gave me the golden opportunity to do this
wonderful assignment. This assignment also
helped me in doing a lot of research and I came to
know about so many new things. I am really
thankful to him.

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Question 1. Write detail note on different steps required for starting an
SSI.
Answer. To start a small-scale industry following stages to be followed.
1. The idea to Setup a Business: This is a first step to start a small-scale industry. The
prospective entrepreneur with his own capacity decides the sized and type of business
like a sole proprietorship, partnership or corporation.
2. Analysis of Business Surrounding: It is necessary to understand different business
surrounding and policies before starting any business. They are competitors, legal,
economical, industrial, technological, etc.
3. Choice of Product: Entrepreneurs has to decide his sector of production i.e.
Manufacturing or Service sector. After doing a market survey and understanding the
advantages and disadvantages one should decide the line of product or services.
4. Location for Business: Entrepreneur has to select a location to start a business. It
plays a very important role in the success of the business while selecting location
many factors are to be taken into consideration like availability of labour, raw
materials, power supply, transportation, etc.
5. Technology Selection: An entrepreneur has to select available and suitable
technology for his business. He should select technology he 1s familiar to use.
6. Project Appraisal: It means the study and assessment of a project. One should study
the project very carefully from the point of view regards to the economy, finance,
marketing and profitability.
7. Capital Requirement: The entrepreneur has to plan for the capital requirement and
sources available for Capital. It can be self-finance, a loan from relatives or banks.
8. Incorporation/Registration: It is compulsory for every small-scale industry to
register with the respective Government Authorities. A printed application form is
available with District Industries Centre (DIC). The entrepreneur has to duly fill the
information with his signature in the form and submit to DIC.
9. Implementation of Resources: After registration of business entrepreneur has to start
with the production process.
a) Financial Resources: The entrepreneur has to collect finance and make
necessary arrangement for capital.
b) Factor Set up: The entrepreneurs have to allocate space for various
operations, purchase of machinery and tools and installation of it.
c) Electric power and water supply: The entrepreneur has to calculate the total
electric power requirement in KW (Kilowatt) and get a connection from the
authority and supply for water connection.
d) Appointment of staff: Small scale industries are labour, intensive. One has to
appoint unskilled and semi-skilled staff as per the requirement to start
production.
10. Manufacturing and Selling of Product: After assembling all financial and physical
resources goods are manufactured and send to market for sale. Advertising and
publicity play a very important role in marketing and selling of product.
11. Customer's Feedback: Customer satisfaction is very important in business. Regular
feedback from customers is helping to make qualitative changes in the product.

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Question 2. Write detail note on various reasons why Entrepreneurs fail?
Answer. Reasons why Entrepreneur fails.
1. Lack of Right Idea: The core of successful entrepreneurship lies in problem-solving.
Most entrepreneurs fail to devise a fresh business idea that aims to solve a unique
problem that really matters to the masses. This is why the business fails to flourish.
2. Unorganized Manpower Resources: Lack of manpower doesn’t harm a startup as
much as unsystematic staffing does. When your SOPs are not in place, it will
adversely affect your business’s efficiency and performance, eventually causing it to
topple.
3. Cash Crunch: Often, people confuse profitability with cash flows. But they’re two
very different aspects of a business. It’s crucial to strike a healthy balance between
these two as no startup can run in the dearth of either. Mostly, it’s the imbalance
between profitability and liquidity that ends up killing a business.
4. The Vision of the Founder: Generally, entrepreneurs spend the most time working
“IN” the business - looking after the operations, day-to-day activities, etc. Amidst
this, they miss out on working “ON” the business which includes future planning for
growth and development. So, after a point, the business saturates and starts declining.
5. Lack of Study of Data: Data is decisive. It reveals important facts and helps to scale
the business rapidly. Yet entrepreneurs neglect its significance and fail to study and
imply its findings correctly. And this costs the business much more than curating and
researching the data would have.
6. Late Realization: Every new business opportunity offers a new chance of making
large profits. But most entrepreneurs don’t seize such opportunities at the earliest.
And by the time they finally do, the idea has already become a regular commodity,
leading to low profits or failures.
7. Not Targeting the Right Market: Sometimes, entrepreneurs do manage to come up
with a fresh, innovative product idea. Yet, the startup suffers as they fail to study and
pinpoint the ideal market for their product. Every product has a right market and
every market needs a tailored product.
8. Delegation Issues: Incorrect execution mechanism also causes a startup to tumble
down. When an entrepreneur fails to delegate the work according to the eligibility and
proficiency of the employees, the output quality is compromised and the business may
fail.
9. Lack of Upgradation: Advancement is a must. From upskilling yourself to
encouraging your team to remain up to date with the latest trends, proactive learning
and constant upgradation is required for any business to grow in the dynamic
environment.
10. Price vs Value: The price of a product is justified by the value it offers. Generally,
entrepreneurs only focus on providing their product at a reasonable price and miss out
on capitalizing on the true value of the product. This is why profits are undermined
and the entrepreneur suffers.

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Question 3. Discuss the importance and role of Entrepreneur in the
development of Indian Economy?
Answer. Entrepreneurs play a crucial role in the Indian economy and have a significant
impact on various aspects of economic development and growth. Here are some of the key
roles played by entrepreneurs in the Indian economy:
1. Job Creation: Entrepreneurs are often the driving force behind the creation of new
businesses and startups. These new ventures, in turn, generate employment
opportunities, helping to reduce unemployment and underemployment in the country.
2. Innovation and Technology: Entrepreneurs are at the forefront of innovation and
technological advancement. They introduce new products, services, and business
models, which can lead to increased productivity and competitiveness in various
industries.
3. Economic Growth: Entrepreneurs contribute to economic growth by driving
investment and capital formation. They also stimulate demand by providing
consumers with new and improved products and services.
4. Increased Productivity: Entrepreneurs often seek to optimize their operations, which
can lead to increased productivity and efficiency in their businesses. This, in turn, can
have a positive impact on the overall economy.
5. Export and International Trade: Many entrepreneurs in India engage in
international trade, helping to expand the country's export capabilities and promote
economic globalization. This is particularly important for a country like India, which
has a significant share of its economy dependent on exports.
6. Rural Development: Entrepreneurship can play a vital role in rural development by
promoting small and micro-enterprises in rural areas. This can help reduce the urban-
rural economic divide and improve the living standards of people in rural
communities.
7. Infrastructure Development: Entrepreneurs often invest in infrastructure projects,
such as transportation, energy, and telecommunications, which are essential for
economic development. These investments can lead to improved connectivity and
accessibility, benefiting various sectors of the economy.
8. Wealth Creation: Successful entrepreneurs create wealth for themselves, but they
also contribute to the overall wealth of the nation. This wealth can be reinvested in
new ventures, further stimulating economic growth.
9. Reducing Dependency on Government: Entrepreneurship reduces the dependency
of the population on government jobs and welfare programs, as individuals can create
their own livelihoods and financial security through entrepreneurial endeavours.
10. Fostering a Culture of Risk-Taking: Entrepreneurs are known for taking calculated
risks, which can lead to the development of a culture that encourages risk-taking and
innovation, ultimately benefitting the entire economy.
11. Social Impact: Some entrepreneurs focus on solving societal challenges through their
businesses, leading to social impact in areas such as education, healthcare, and
environmental sustainability.

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In conclusion, entrepreneurs are the driving force behind economic growth, job creation, and
innovation in the Indian economy. Their activities lead to increased productivity, wealth
creation, and improved living standards for many, making them a vital component of India's
economic development.

Question 4. Write detailed note on various problems & prospects of

Women Entrepreneurship.
Answer. Problems of Women Entrepreneurs
 Gender Inequality: India is a male dominated traditional society where women are
not supposed to be equal to men folk. They are treated as subordinate to husbands and
men, physically weak and lesser confident to be able to shoulder the responsibility of
entrepreneur.
 Lack of Education: Women in India are lagging far behind in the field of education.
Most of the women (around sixty per cent of total women) are illiterate. Those who
are educated are provided either less or inadequate education than their male
counterpart partly due to early marriage, partly due to son's higher education and
partly due to poverty. Due to lack of proper education, women entrepreneurs remain
in dark about the development of new technology, new methods of production,
marketing and other governmental support which will encourage them to flourish.
 Problem of Finance: Women entrepreneurs suffer a lot in raising and meeting the
financial needs of the business. Bankers, creditors and financial institutions are not
coming forward to provide financial assistance to women borrowers on the ground of
their less creditworthiness and more chances of failure.
 Skepticism of Financial Institution: Financial Institutions and bankers are skeptical
about the entrepreneurial abilities of women. These institutions consider women
loanees as higher risk than men.
 Obsolescence of technology & resulting increase in cost of production: Women
entrepreneurs face technology obsolescence due to non-adoption or slow adoption to
changing technology which is a major factor of high cost of production.
 Low risk-bearing capacity: Women in India are by nature weak, shy and mild. They
cannot bear the amount of risk which is essential for running an enterprise. Lack of
education, training and financial support from outsides also reduce their ability to bear
the risk involved in an enterprise.
 Lack of entrepreneurial aptitude: Lack of entrepreneurial aptitude is a matter of
concern for women entrepreneurs. They have no entrepreneurial bent of mind. Even
after attending various training programs on entrepreneurship, they fail to tide over
the risks and troubles that may come up in an organizational working.
 Limited managerial ability: Women entrepreneurs are not efficient in managerial
functions like planning, organizing, controlling, coordinating, motivating etc. of an
enterprise. Therefore, less and limited managerial ability of women has become a
problem for them to run the enterprise successfully.
 Legal formalities: Fulfilling the legal formalities required for running an enterprise
becomes an uphill task on the part of an women entrepreneur because of the
prevalence of corrupt practices in government offices and procedural delays for
various licenses, electricity, water and shed allotments. In such situations women
entrepreneurs find it hard to concentrate on the smooth working of the enterprise.

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  Lack of self-confidence: Women entrepreneurs because of their inherent nature, lack
self-confidence which is essentially a motivating factor in running an enterprise
successfully. They have to strive hard to strike a balance between managing a family
and managing an enterprise.
Future Prospects for the Development of Women Entrepreneurs
Throughout the world, it is observed that the ratio of Women entrepreneurs is increasing
tremendously. The emergence as well as development of Women entrepreneurs is quite
visible in India and their over- all contribution to Indian economy is also very significant.
Today the role of Women entrepreneurs in economic development is inevitable because
women are entering not only in selected fields but also in fields like Trade, Industry and
Engineering.
The industrial structure and the enterprises are undergoing a radical change. Information
Technology has transformed the very technique of doing business individually. Business
ownership provides women with the independence they crave and with the economic and
social success they need. Nationally, business ownership has great importance for future
economic prosperity. Globally, women are enhancing, directing and changing the face of how
business is done today. Ultimately, female business owners must be recognized for who they
are, what they do, and how significantly they impact the World’ Global Economy.
Training on professional competence and leadership skills should be extended to Women
entrepreneurs. Activities in which women are trained should focus on their marketability and
profitability. State Finance Corporations and financing institutions should permit by statue to
extend purely trade related finance to Women entrepreneurs. And lastly women Development
Corporation has to gain access to open-ended financing.

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