Entrepreneurship skills

Unit-1 Introduction
History of Entrepreneurship

The term “entrepreneurship” can be traced back to as early as the Middle Ages, when the
“entrepreneur” was simply someone who carried out tasks, such as buildings and construction
projects by applying all the resources at his disposal. However, it was during the 16th century when
“business” was used as a common term, and the “entrepreneur’’ came into focus, as a person, who
is responsible for undertaking a business venture.

Entrepreneurship as a term can be traced back to the economists of the 18th century, and it
continued to attract the interest of economists in the 19th century. In the twentieth century, the
word became synonymous with free enterprise and capitalism.

During the 20th century, within the last two decades, the concept of entrepreneurship has evolved
from being a single individual to an entire organization or a corporation.

INTRODUCTION:

Entrepreneurs play a vital role in the economic development of a country. Economic development of
a country depends primarily on its entrepreneurs. An entrepreneur is often considers as a person
who sets up his own business or industry. He has initiative, drive, skills & sprit of innovation who
aims at high goals. The entrepreneur is the individual that identifies the opportunity, gathers the
necessary resources and is ultimately responsible for the performance of the organization.
Entrepreneurs are action oriented, highly motivated individuals who take risks to achieve goals.
Entrepreneurship is the purposeful activity of an individual or a group of associated individuals,
undertaken to initiate maintain or aggrandize(grater) profit by production, or distribution of
economic goods and services. it is concerned with making dynamic changes in the process of
production, innovation in production, new usage for materials etc. It is mental attitude to take
calculated risks with a view to attain certain objectives. It also means doing something in a new and
better manner.

ENTREPRENEUR

In the words of J B Say, “An entrepreneur is one who brings together the factors of production and
combines them into a product”.

Joseph A Schumpeter defines an entrepreneur as “one who innovates, raises money, assembles
inputs and sets the organization going with the ability to identify and explore opportunities which
others are not able to fulfill such economic opportunities.”

ENTREPRENUERSHIP

Entrepreneurship is the indivisible process of an entrepreneur. It is the process of identifying

opportunities in the market place, arranging the resources required to pursue these opportunities
and investing the resources to exploit the opportunities for long term gains.

According to Cole, “Entrepreneurship is the purposeful activity of an individual or a group of

associated individuals undertaken to initiate, maintain and gain profit by production or distribution
of economic goods and services.”

ENTREPRISE

Entreprise simply means an economic organization or activity. It may also be called as a place of
business of an entrepreneur or an individual. Here it is considered as a business organization. This
emphasis the boldness and initiative of an entrepreneur who creates a business with innovative
ideas. Therefore enterprise may be considered as “an organization engaged in a business activity.”

Concept of Entrepreneurship

Before proceeding further, let us first understand the concept of entrepreneurship and its
importance to the economy. An entrepreneur is the sole owner and manager of his business.
Actually, the word translates to “the one who undertakes” in French.

From an economics point of view, an entrepreneur is the one who bears all the risk of a business.
And in return, he gets to enjoy all of the profits from the business as well. While understanding the
concept of entrepreneurship we will also learn about the importance of entrepreneurs in the
economy. They bring in new goods, services, technologies, etc. to the market.

An integrative approach

To provide a “big picture” of this research area, an integrative model is proposed around two central
themes: theoretical constructs of institutions that work at different levels and their relationship with
different aspects of entrepreneurship. This integrative model presents an overview of existing
literature, how previous research fit in the model, the gaps in what we know, and the future
directions might be taken by scholars hoping to contribute to this important and growing research
area.

Needs for entrepreneurship

1. Promoting entrepreneurship: In India where over 70% of the people are living below the
poverty line. It is simply impossible for any government to provide means of livelihood to
everyone. Such situations surely demand for continuous effort from the society. Where the
people are encouraged to come up with their entrepreneurial initiative.
2. Encouragement at attitudinal and social level: In the future innovation and
entrepreneurship needs to be encouraged at social levels, governmental levels and
managerial levels. There must be a social attitude that views innovations with positive
attitude and reject an innovation only when it is not acceptable.
3. Encouragement at physical level: At this level the encouragement will refer to two aspects
necessary for entrepreneurship to thrive, one is the provision of venture capital and the
other being infrastructure rural support. For example, is export processing zones which are
performing extremely well when given the support.
4. Entrepreneurship in the future: The transformation of opportunity into performance is
contingent on several factors like industry attractiveness, strategy, execution and required
resources. These factors in effect are again influenced by social and physical factors.
5. Opportunities: There can be various avenues for innovation like education is a sector,
establishing hospital, only 30% of area is irrigate and the rest depends on monsoon, small
entrepreneurship has tremendous potentials like self-help guys, self-employed women
association (SEWA), traditional sectors like handlooms and the unorganised industries will
bring in ways for development of entrepreneurship.
6. Social and economic perspectives on entrepreneurship: Entrepreneurship is reflected in all
the major dimensions of civilization i.e social, political and economic it involves creativity
that is consistent with the healthy edge required to change the basis of competition
CHARACTERISTICS OF A GOOD ENTREPRENEUR:
The major qualities/characteristics of a good entrepreneur are linked below
1. Innovative Thinking Innovation often goes hand-in-hand with entrepreneurship. While
innovation in business can be defined as an idea that’s both novel and useful, it doesn’t
always involve creating an entirely new product or service. Some of the most successful
start-ups have taken existing products or services and drastically improved them to meet
the changing needs of the market.
Although innovation doesn’t come naturally to every entrepreneur, it’s a type of strategic
mind-set that can be cultivated. By developing your problem-solving skills, you’ll be well-
equipped to spot innovative opportunities and position your venture for success.

2. Risk Taker: A risk is an integral part of any new business. But it is an especially important
factor in entrepreneurship because here the entrepreneur bears the entire risk of the
business. So it is necessary that the entrepreneur has an adventurous and risk-taking
personality.

3. Leadership: One of the other important qualities of a successful entrepreneur is leadership.

All good entrepreneur are good leaders. They have the ability to motivate and lead their
employees to success. They also have the knowledge, and skill to pull their businesses from
a tight corner like good leaders.

4. Motivation: It is the need to achieve that motivates a person. Entrepreneurs generally are
highly active. They struggle constantly to achieve something better than what they already
get. They like to be different from others and are ready to work hard to reach their goals.

5. Organisation building: it is the most critical skill required for industrial development. This
skill means the ability to multiply oneself by effectively delegating responsibility to others.
Entrepreneurs need not necessarily be men with ideas or men who try new combinations
of resources but they may simply be good leaders and excellent administrators

Nature of entrepreneurship:

1. Innovation: Entrepreneurs often introduce new products, services, or processes that offer novel
solutions to existing problems or create new market opportunities. Innovation is a driving force in
entrepreneurship and can differentiate a business from its competitors.

2. Risk-Taking: Starting and running a business involves significant risk. Entrepreneurs invest their
time, money, and resources with no guarantee of success. The willingness to take calculated risks is
a hallmark of successful entrepreneurship.

3. Resource Management: Entrepreneurs must effectively manage resources, including capital,

human resources, and materials. Efficient management and allocation of resources are crucial for
the growth and sustainability of a business.

4. Vision and Strategy: Successful entrepreneurs have a clear vision for their business and a
strategic plan to achieve their goals. This involves setting objectives, understanding the market, and
making strategic decisions to drive growth.
5. Adaptability: The entrepreneurial landscape is constantly changing, and entrepreneurs must be
adaptable to shifting market conditions, technological advancements, and other external factors.
Flexibility and the ability to pivot are important traits for long-term success.

6. Leadership and Management: Entrepreneurs often lead small teams or organizations and must
possess strong leadership and management skills. This includes motivating employees, building a
positive company culture, and making effective decisions.

7. Customer Focus: Understanding and meeting the needs of customers is central to

entrepreneurship. Entrepreneurs must be attending to customer feedback and preferences to
ensure their products or services align with market demand.

8. Value Creation: The ultimate goal of entrepreneurship is to create value—whether through

solving a problem, improving efficiency, or providing a unique product or service. Value creation is
essential for attracting customers, investors, and sustaining business growth.

Features Entrepreneurs

1. Visionary Thinking: Entrepreneurs typically have a clear vision of what they want to achieve.
They can see opportunities where others might not and have a long-term perspective on how to
grow their business.

2. Risk Tolerance: They are comfortable with taking calculated risks and are willing to invest time,
money, and resources into ventures with uncertain outcomes. This risk-taking is often balanced
with careful planning and analysis.

3. Innovativeness: Entrepreneurs are often creative and innovative, constantly seeking new ideas,
products, or methods to improve and differentiate their offerings from competitors.

4. Resilience: The path of entrepreneurship is rarely smooth. Successful entrepreneurs demonstrate

resilience, persevering through setbacks, failures, and challenges with a positive attitude and
determination.

5. Adaptability: Being able to pivot (rotate) and adapt to changing market conditions, customer
needs, or technological advancements is crucial. Entrepreneurs are flexible and open to modifying
their strategies as needed.

6. Deciding: Entrepreneurs need to make quick and effective decisions, often with limited
information. They trust their instincts and judgment while being prepared to take action.

7. Leadership Skills: Effective entrepreneurs possess strong leadership abilities. They inspire,
motivate, and guide their team, fostering a collaborative and productive work environment.

8. Customer Focus: Understanding and meeting customer needs is a priority. Entrepreneurs often
engage directly with customers, seeking feedback and adapting their offerings to ensure
satisfaction and loyalty.

9. Self-Motivation: Entrepreneurs are driven by internal motivation and passion for their business.
They set their own goals, work diligently, and stay committed to achieving their vision.

10. Problem-Solving Skills: They excel in identifying problems and finding innovative solutions. This
ability to tackle challenges creatively is essential for navigating the complexities of running a
business.
11. Networking Abilities: Building and maintaining a strong network of contacts is important for
entrepreneurs. They often seek advice, support, and opportunities through their professional and
personal connections.

12. Financial Acumen: A good understanding of financial management is crucial. Entrepreneurs need
to handle budgeting, accounting, and financial planning to ensure the sustainability and growth of
their business.

13. Passion and Enthusiasm: Passion for their work fuels entrepreneurs. Their enthusiasm and
commitment often drive them to go the extra mile and inspire others around them.

14. Goal-Oriented: Entrepreneurs set specific, measurable, achievable, relevant, and time-bound
(SMART) goals. They focus on achieving these goals and use them as benchmarks for success.

15. Perseverance: The journey of entrepreneurship involves ups and downs. Perseverance helps
entrepreneurs push through difficult times and maintain their focus on long-term objectives.

Characteristics of entrepreneurs

1. Vision: They have a clear idea of what they want to achieve and can see opportunities where
others might not.
2. Risk Tolerance: They are willing to take calculated risks and face uncertainty,
understanding that risk is part of innovation and growth.
3. Resilience: They bounce back from failures and setbacks, using challenges as learning
experiences rather than obstacles.
4. Creativity: They think outside the box and come up with novel solutions to problems.
5. Determination: They are persistent and driven, often putting in long hours and working hard
to achieve their goals.
6. Adaptability: They can pivot and adjust their strategies in response to changing
circumstances and market conditions.
7. Decisiveness: They make decisions quickly and confidently, often with limited information.
8. Leadership: They can inspire and lead a team, motivating others to work towards a shared
vision.
9. Passion: They have a deep-seated enthusiasm and commitment to their business idea or
industry.
10. Networking Skills: They build and maintain valuable connections that can offer support,
advice, and opportunities.
11. Self-discipline: They are able to manage their time effectively and stay focused on their
objectives.
12. Customer-Centric Mind-set: They understand and prioritize the needs and preferences of
their customers.
13. Financial Acumen: They have a good grasp of financial management, including budgeting,
investing, and financial planning.
14. Innovativeness: They are always looking for new ways to improve and innovate, staying
ahead of trends and competitors.
15. Emotional Intelligence: They are aware of their own emotions and those of others, which
helps in managing relationships and making informed decisions.

Needs of becoming entrepreneur

1. Desire for Independence: Many people want the freedom to make their own decisions, set
their own schedules, and control their own work environment.

2. Pursuit of Passion: Entrepreneurs often have a strong passion for a particular industry,
product, or service. Starting a business allows them to work on something they are
genuinely interested in.

3. Opportunity for Innovation: Entrepreneurs are frequently motivated by the desire to bring
new ideas to life and create innovative solutions to existing problems.

4. Financial Potential: The prospect of financial rewards can be a significant motivator.

Successful entrepreneurship can lead to substantial income and wealth-building
opportunities.

5. Desire for Impact: Many entrepreneurs are driven by the desire to make a difference in
their community or the world. They aim to solve pressing problems or contribute to social
change.

6. Flexibility: Entrepreneurship can offer greater flexibility in work hours and location
compared to traditional employment, which can be appealing for those seeking a better
work-life balance.

7. Control Over Career: By starting their own business, entrepreneurs have greater control
over their career and are not dependent on external employers for job security.

8. Creativity and Self-Expression: Entrepreneurship allows individuals to express their

creativity and ideas in ways that may not be possible in a traditional job.

9. Challenge and Growth: Many people are attracted to the challenge of starting and running
a business. It offers opportunities for personal and professional growth, pushing them to
develop new skills and overcome obstacles.

10. Legacy and Achievement: Entrepreneurs often aim to build something of lasting value that
can be passed down to future generations or leave a legacy that reflects their
achievements.

11. Job Creation: Starting a business can create jobs for others, contributing to economic
growth and helping to reduce unemployment in their community.

12. Learning and Development: The entrepreneurial journey involves continuous learning and
adaptation, which can be intellectually stimulating and fulfilling.
Need of becoming entrepreneur

Being a successful entrepreneur requires a blend of personal attributes, skills, and external factors.
Here are some key aspects to focus on:

Personal Attributes

1. Self-Awareness: Understand your strengths and weaknesses. Knowing where you excel and
where you might need help can guide you in building a balanced team and making
informed decisions.

2. Passion: Genuine enthusiasm for your business idea or industry can drive you through the
inevitable ups and downs of entrepreneurship.

3. Resilience: The ability to recover from setbacks and keep pushing forward is crucial.
Resilience helps you navigate challenges and stay focused on your goals.

4. Risk Tolerance: Be prepared to take calculated risks. Understand that risk is inherent in
entrepreneurship and learn to manage it effectively.
Skills

1. Leadership: Strong leadership skills are essential for motivating and managing a team. This
includes effective communication, decision-making, and the ability to inspire others.

2. Financial Management: Learn to budget, manage cash flow, and understand financial
statements. Sound financial management is critical to sustaining and growing your business.

3. Marketing and Sales: Develop skills to promote your product or service, attract customers,
and drive sales. Understanding your target market and how to reach them is key.

4. Strategic Planning: Ability to set long-term goals, plan for growth, and adjust strategies as
needed. Strategic planning helps you stay focused and make informed decisions.

5. Networking: Build and maintain a network of contacts who can offer advice, support, and
opportunities. Networking is valuable for gaining insights and expanding your business
reach.

6. Problem-Solving: Develop strong analytical and problem-solving skills to address challenges

and find effective solutions.

7. Time Management: Efficiently managing your time is essential for balancing various aspects
of running a business and avoiding burnout.

External Factors

1. Market Research: Conduct thorough research to understand your industry, competitors, and
customer needs. This information is vital for making informed decisions and positioning your
business effectively.

2. Legal and Regulatory Knowledge: Familiarize yourself with the legal requirements and
regulations relevant to your industry and location. Compliance is crucial to avoid legal
issues and penalties.

3. Technology and Tools: Utilize technology and tools that can streamline operations, improve
productivity, and enhance your business's capabilities.

4. Funding: Explore various funding options, such as loans, investors, or grants, to support
your business’s financial needs and growth.

Mind-set and Attitude

1. Growth Mind-set: Embrace a mind-set focused on continuous learning and improvement.

Be open to feedback and willing to adapt your approach based on new insights and
experiences.

2. Customer Focus: Prioritize understanding and meeting the needs of your customers. A
customer-centric approach can drive satisfaction and loyalty, leading to long-term success.

3. Ethical Standards: Maintain high ethical standards in your business practices. Integrity and
honesty build trust with customers, partners, and employees.

4. Work-Life Balance: While entrepreneurship often demands significant time and effort,
striving for a balance between work and personal life can help sustain your motivation and
well-being.
Importance of entrepreneurs

Economic Impact

1. Job Creation: Entrepreneurs create new businesses, which generate employment

opportunities. This helps reduce unemployment and provides diverse job options for the
workforce.

2. Economic Growth: By starting new ventures and expanding existing ones, entrepreneurs
contribute to economic growth. Their activities drive productivity, increase the GDP, and
enhance economic dynamism.

3. Tax Revenue: Successful businesses generate tax revenue for governments, which can be
reinvested in public services, infrastructure, and community development.

4. Market Expansion: Entrepreneurs often enter underserved or niche markets, broadening

the range of products and services available to consumers and stimulating market
competition.

Innovation and Technology

1. Product and Service Innovation: Entrepreneurs drive innovation by developing new

products, services, and technologies. Their creativity leads to advancements that improve
quality of life and address unmet needs.

2. Technological Advancement: Many entrepreneurs are at the forefront of technological

development, contributing to advancements in fields such as IT, biotechnology, and
renewable energy.

3. Efficiency Improvements: Innovations introduced by entrepreneurs can lead to more

efficient business processes, better resource management, and overall improvements in
productivity.

Social Impact

1. Community Development: Entrepreneurs often invest in their local communities,

supporting local initiatives, and fostering economic development. Their businesses can
revitalize neighbourhoods and provide services that enhance community well-being.

2. Social Change: Social entrepreneurs focus on addressing societal challenges, such as

poverty, education, and environmental sustainability. Their efforts can lead to meaningful
social impact and positive change.

3. Empowerment: By providing employment and supporting local economies, entrepreneurs

empower individuals and communities. They create opportunities for personal and
professional growth.

Business Ecosystem

1. Business Ecosystem Growth: Entrepreneurs contribute to the growth of business

ecosystems by collaborating with other businesses, forming partnerships, and
participating in industry networks. This fosters a supportive environment for future
ventures.
2. Competitiveness: The presence of entrepreneurs enhances market competitiveness,
encouraging established businesses to innovate and improve their offerings in response to
new entrants.

3. Resource Allocation: Entrepreneurs often find creative ways to allocate resources

efficiently, making use of existing assets in novel ways and optimizing productivity.

Personal and Professional Development

1. Skill Development: Entrepreneurs develop a diverse set of skills, including leadership,

strategic planning, and financial management. Their journey can inspire others to pursue
similar paths and foster a culture of self-reliance.

2. Role Models: Successful entrepreneurs often serve as role models, demonstrating the
potential of innovation and perseverance. Their stories can motivate others to take risks
and pursue their own entrepreneurial ventures.

Cultural Impact

1. Cultural Influence: Entrepreneurs can shape cultural trends and preferences through their
products, services, and business practices. They often challenge norms and introduce new
ways of thinking.

2. Diversity and Inclusion: Many entrepreneurs champion diversity and inclusion, creating
businesses that reflect a range of perspectives and promote equality.

Ways to become a good entrepreneur

1. Identify a Need: Look for gaps in the market or problems that need solving. A successful
business often starts with a clear understanding of a need and a solution to address it.

2. Develop a Strong Business Plan: A well-thought-out business plan outlines your vision,
mission, target market, competitive analysis, revenue model, and financial projections. It
serves as a roadmap for your business and helps attract investors.

3. Understand Your Market: Conduct thorough market research to understand your target
audience, their needs, and their preferences. This helps in tailoring your product or service
to meet those needs effectively.

4. Build a Solid Network: Connect with other entrepreneurs, industry experts, mentors, and
potential customers. Networking can provide valuable advice, support, and opportunities for
partnerships or collaborations.

5. Embrace Innovation: Stay updated with industry trends and be willing to adapt and
innovate. Continuous improvement and creativity can set you apart from competitors.

6. Focus on Customer Experience: Prioritize delivering exceptional customer service and

building strong relationships with your customers. Happy customers are more likely to
become repeat buyers and advocates for your brand.

7. Manage Finances Wisely: Keep a close eye on your finances, including budgeting, cash flow
management, and financial forecasting. Sound financial management is crucial for sustaining
and growing your business.
8. Be Resilient: Entrepreneurship involves facing setbacks and challenges. Cultivate resilience
and a positive mind-set to navigate obstacles and stay motivated through tough times.

9. Build a Strong Team: Surround yourself with talented and motivated individuals who share
your vision. A strong team can bring diverse skills and perspectives to your business.

10. Focus on Marketing and Sales: Develop effective marketing and sales strategies to promote
your business and attract customers. Understand the best channels to reach your audience
and continuously refine your approach.

11. Stay Organized: Keep track of tasks, deadlines, and responsibilities to ensure smooth
operations. Good organizational skills help in managing day-to-day activities and long-term
projects efficiently.

12. Learn Continuously: Stay curious and invest in your personal and professional development.
Learn from your experiences, seek feedback, and stay informed about new trends and
technologies.

13. Take Calculated Risks: Be willing to take risks, but ensure they are well-considered and
based on research and analysis. Calculated risks can lead to significant rewards.

14. Maintain Work-Life Balance: While dedication is important, it’s also crucial to maintain a
balance between work and personal life to avoid burnout and ensure long-term
sustainability.

By focusing on these areas, you can build a strong foundation for your entrepreneurial journey
and increase your chances of success.

Difference between entrepreneur and entrepreneurship

Functions of an entrepreneur

1. Opportunity Recognition: Identifying and evaluating business opportunities based on

market needs, trends, and gaps. Entrepreneurs constantly look for ways to create value
and solve problems.
2. Business Planning: Crafting a comprehensive business plan that outlines the vision,
goals, strategies, target market, and financial projections. This plan serves as a roadmap
for the business.
3. Resource Acquisition: Securing the necessary resources, including capital, technology,
and human talent, to start and sustain the business. This may involve raising funds,
negotiating with investors, or securing loans.
4. Risk Management: Identifying, assessing, and mitigating risks associated with the
business. This includes financial risks, operational risks, and market risks, among others.
5. Product or Service Development: Designing, developing, and refining products or
services to meet customer needs and preferences. Entrepreneurs oversee the entire
development process, from concept to market launch.
6. Operations Management: Overseeing the day-to-day operations of the business,
including managing supply chains, production processes, and quality control to ensure
smooth and efficient functioning.
7. Financial Management: Handling financial aspects such as budgeting, accounting,
financial forecasting, and managing cash flow. Entrepreneurs ensure that the business
remains financially viable and profitable.
8. Leadership and Team Building: Leading and motivating a team, creating a positive
organizational culture, and fostering collaboration and productivity. Effective leadership
is crucial for employee engagement and retention.
9. Adaptation and Innovation: Continuously seeking ways to improve and innovate within
the business. Entrepreneurs must adapt to changing market conditions, technologies, and
customer preferences to stay competitive.
 10. Compliance and Legal Oversight: Ensuring that the business complies with relevant laws,
regulations, and industry standards. This includes handling legal paperwork, protecting
intellectual property, and adhering to safety and labor regulations.

Entrepreneur-Born or made?

Born: Some people seem to have an innate flair for entrepreneurship. They might be naturally
curious, resilient, and have a high tolerance for risk. Traits like creativity, leadership, and the ability
to think outside the box can come more easily to some people, suggesting that there’s a natural
inclination.

Made: On the flip side, many of the skills necessary for entrepreneurship can be developed over
time. Through education, experience, and mentorship, individuals can learn how to manage a
business, understand market dynamics, and lead a team. Persistent effort, learning from failures,
and a growth mindset can turn someone with potential into a successful entrepreneur.

In reality, it’s often a mix of both. Natural traits can give someone a head start, but the right
environment, education, and experience are crucial in honing those traits into successful
entrepreneurial skills.

Classifications of entrepreneurs

I. Types of business

1. Business Entrepreneur: Anyone who converts their ideas into reality in the form of some
product or service is a Business Entrepreneur. Such entrepreneurs are the most common class of
entrepreneurs. We can also say that maximum business owners are business entrepreneurs.

2. Trading Entrepreneur: This type of entrepreneur only considers trading activities. They promote
their products and try to get a big market share.

3. Industrial Entrepreneur: Industrial entrepreneurs are majorly involved in the manufacturing of

products. They study the market and identify the customer’s needs, and manufacture a suitable
product to meet the same. These entrepreneurs are crucial as they significantly contribute to the
country’s economy. It includes all the entrepreneurs working in the following sectors:

Large Scale Business, Medium Scale Business, Small Scale Business, Tiny Scale Business, Micro-
enterprises
4. Corporate Entrepreneur: These entrepreneurs focus on managing the corporate undertaking
with utmost efficiency. They use intellect in innovative ways to effectively perform the functions of
management.

5. Agriculture Entrepreneur: As their name suggests, these entrepreneurs undertake agricultural

activities. They use traditional and modern methods for production and marketing functions to
make it profitable. Some activities include:

Crops Plantation
Cash Crops
Horticulture
Floriculture
Animal Husbandry

II. Use of technology

1. Technical Entrepreneurs

These entrepreneurs have sufficient knowledge to develop new products using innovation and
craftsmanship. In addition, they try to improve the quality of goods and services.

They focus more on the product’s production rather than marketing and selling.

2. Non-technical Entrepreneurs

Non-technical entrepreneurs are the complete contrast to technical ones. They are concerned about
the product’s promotion part, like marketing and distribution strategies.

3. Professional Entrepreneurs

This type of entrepreneur is more inclined towards establishing an enterprise or developing a new
product. However, they are not interested in managing and organizing it. Thus, they sell off their
business and start working on another one.

III. According to Motivation

1. Pure Entrepreneur: Pure entrepreneurs are individuals who are motivated by psychological and
economic rewards. To achieve personal satisfaction in work, status or ego is the main aim of
undertaking entrepreneurial activities as a pure entrepreneur.

2. Induced Entrepreneur: Induced entrepreneurs refer to those individuals who are attracted to
policy measures of the government and start-up entrepreneurial ventures. The assistance,
incentives, concessions, and necessary overhead assistance by the government induce individuals to
undertake entrepreneurial activities. Eg: solar panel
The force that influences the efforts of entrepreneurs to achieve their objectives is known as
motivation. Entrepreneurs are motivated to achieve or prove their excellence in job performance.
They are also motivated to influence others by demonstrating their power thus satisfying their ego.

3. Motivated Entrepreneur: New entrepreneurs are individuals who are motivated by the desire for
self-fulfillment. They come into existence because of the likelihood of making and marketing some
new products for the use of consumers. As the product is developed to a salable stage, the
entrepreneurs are further motivated by rewards in terms of profit and enlarged customer networks.

4. Spontaneous Entrepreneur: Entrepreneurs who start their business out of their natural talent
and instinct are called spontaneous entrepreneurs. They are individuals who are discoverers and
initiators. Their boldness and confidence motivate them to undertake entrepreneurial activities.

IV. Growth

Growth Entrepreneur

Growth entrepreneurs are individuals who essentially take up a high-growth industry. Such
entrepreneurs choose an industry with substantial growth prospects.

Super-Growth Entrepreneur

Super-growth entrepreneurs are those individuals who make enormous efforts to take their
venture to the enormous growth of performance. Their growth performance is identified by the
liquidity of funds, profitability, and gearing of their venture.

V. According to Stages of Development

First-Generation Entrepreneur: First-generation entrepreneurs are those who start an industrial

unit by means of an innovative skill. They are essentially innovators, who combine different
technologies to produce a marketable product or service.

Modern Entrepreneur: Modern entrepreneurs are those who undertake ventures that go well
along with the changing demand in the market. They are interested in undertaking only those
ventures that suit the current marketing needs.

Classical Entrepreneur: Classical entrepreneurs are those individuals who are concerned with the
customers and marketing needs through the establishment and growth of a self-supporting
venture.
They are conventional types of entrepreneurs who work with the aim of maximizing economic
return. They first aim to earn a minimum level of profit, which is necessary for the survival and
growth of the entrepreneurial venture.
VI. Stages other types
1. Innovative Entrepreneurs

This type of entrepreneur is always on the hunt for opportunities for innovativeness. They prefer to
step into new markets, launch new products and introduce new technologies.

Such entrepreneurs bring a positive transformation in people’s lifestyles. Thus, they are beneficial
for their country and its economy.

2. Imitative Entrepreneurs

They are alternatively known as Adoptive Entrepreneurs. This type of entrepreneur imitates
successful innovative entrepreneurs. Simply put, they copy already established entrepreneurs’
knowledge, methods and technology.

They do not innovate anything new. Rather, they copy and improve the existing innovative methods
and techniques to gain an advantage in the market.

3. Fabian Entrepreneurs

Fabian entrepreneurs are extremely cautious, resistant and doubtful towards changes in their
enterprise. They are less open to innovating and adopting new methods or technology.

4. Drone Entrepreneurs

These entrepreneurs are very stubborn in nature. They possess an orthodox and conservative
outlook and continue to use old-fashioned practices. For this reason, they are also called Laggards.

Such entrepreneurs prefer to keep everything in their enterprise the same. Consequently, they lose
their market and are sometimes even wiped out of the market.

5. Forced Entrepreneurs

Forced entrepreneurs are individuals who unwillingly opt to be entrepreneurs because of some
circumstances. They generally do not have any plan, forward-looking, or business aptitude.

Pros of being an Entrepreneur

1. Independence: You have the freedom to set your own direction, make decisions, and
steer your business according to your vision and values.
2. Flexibility: You can often create your own schedule and work at your own pace,
which can allow for a more balanced lifestyle if managed well.
3. Financial Potential: There’s significant potential for financial rewards if your business
succeeds. Unlike traditional jobs with fixed salaries, your income can scale with the
success of your enterprise.
4. Personal Fulfilment: Building and growing your own business can be deeply
satisfying, especially when it aligns with your passions and interests.
5. Learning Opportunities: Entrepreneurship involves wearing many hats and tackling a
wide range of challenges, which can accelerate personal and professional growth.
6. Creativity and Innovation: You have the opportunity to bring new ideas to life and
make a mark with innovative products or services.
 7. Control Over Work Environment: You can design a work environment that reflects
your values and fosters the kind of culture you want.
8. Networking: Being an entrepreneur often involves connecting with a diverse range
of people, which can expand your professional network and open up new
opportunities.
9. Impact: Your business can have a positive impact on your community or even on a
global scale, depending on the nature of your enterprise.
10. Legacy: You have the chance to create something lasting that can benefit others and
potentially be passed down to future generations or make a significant mark in your
industry.
Cons of being an Entrepreneur
1. Financial Instability: Entrepreneurs often face uncertain and fluctuating income,
particularly in the early stages when the business may not be profitable. Personal
financial security can be at risk.
2. High Stress Levels: The pressure to make critical decisions, manage various
aspects of the business, and ensure its success can be overwhelming and lead to
high levels of stress.
3. Long Hours: Starting and running a business typically demands long hours and
significant time investment, which can affect work-life balance and lead to
burnout.
4. Responsibility Overload: Entrepreneurs bear ultimate responsibility for all facets
of their business, from financial management to marketing and human
resources. This can be exhausting and overwhelming.
5. Isolation: The solitary nature of entrepreneurship can sometimes lead to feelings
of loneliness, as entrepreneurs may not have the same level of social interaction
and support as in traditional workplaces.
6. Unpredictable Income: Unlike a fixed salary, business income can be irregular
and unpredictable, which can complicate personal financial planning and
stability.
7. Risk of Failure: The risk of business failure is significant, and many startups do
not survive beyond the initial years. This can result in financial loss and emotional
strain.
8. Resource Constraints: Entrepreneurs often have limited resources, including
finances, personnel, and time, which can hinder growth and increase pressure.
9. Market and Competitive Pressure: Entrepreneurs must continuously adapt to
changing market conditions and compete with other businesses, which can be
challenging and demanding.
Self discovery:
Self-discovery is a term that refers to the process of learning about oneself, including one’s
strengths, weaknesses, desires, and values. It involves exploring and gaining a deeper
understanding of one’s own thoughts, emotions, and behaviors.
Knowing where you excel and where you can improve means you can make better
decisions about where to focus your energy and resources, which can ultimately lead to
greater success in your business.
1. Self-averseness: This focus on ability to understand yourself, your personality traits,
your habits, your emotions, your needs, your desires and your values. It can help
understand multiple perspectives and build better relationships.
2. Interest awareness: It is about discovering what interested in and what passionate
about in life. This can help reach a full potential as find what motivates in your daily
and work life.
3. Hopes and dreams: This focuses on writing out what hopes and dreams are in life
that want to achieve. The can benefit from understanding hopes and dreams in
depth because it can help from career goals to work toward.
4. Career discovery: It combines self-awareness, interest awareness and hopes and
drams when looking for a hob that can help reach full potential. Its important to find
a career that is right for personality and goals because it can help fee fulfilled at
work.
Benefits of self discovery
1. Develop a strength and weaknesses
2. Find carriers that match a career goals
3. Have more self awareness in life
4. Implement a values into a positions
5. Discover what passion and internets are
6. Say what motivates to do well in career
7. Make better choices for goals and advancements
8. Discover carriers might not have thought of before
9. Decide if want to continue the education or training
Idea generation
Idea generation is described as the process of creating, developing and communicating
abstract concrete or visual ideas. It’s the front end part of the idea management funnel and
it focuses on coming up with possible solutions to perceived or actual problems and
opportunities. As mentioned ideas are the first step towards making improvement.
1. Discovering new opportunities
Utilize the knowledge and ideas of everyone in your firm. Dive into previously unknown
locations filled with potential. Conversations and brainstorming sessions can aid in the
discovery of new consumer segments or unique applications for your present successful
items.
2. Generating fresh ideas
In business, new ideas are like food, fuelling the growth that every manager desires. The
discipline of coming up with fresh ideas propels your organization forward since it
generates innovative answers to age-old problems and discovers unique concerns that
require your attention.
3. Improving old concepts
Examine your own deeply rooted views to shake things up. You want to foster a work
environment where employees feel comfortable challenging traditional problem-solving
methods. This safe setting helps to change existing ideas and transform them into superior
solutions.
4. Updating current practices
In the never-ending search for improvement, new ideas might assist in renewing and
updating how you manage your organization.
5 Steps for Generating Ideas
Idea generation is not compiled in a single approach; it is continuous innovation and
improvement. Companies have recognized the importance of idea generation and are
supporting their employees in this endeavor.
Thomas Edison put forward the following steps:
Enabling: The search for the right field of innovation
Defining: Develop search queries and specify search paths
Inspiring: Search for thoughts and stimuli from other areas
Selecting: Generate and evaluate ideas
Optimizing: From the initial idea to the mature concept
Nurturing: Enrich ideas with various implementation strategies

Idea generation techniques

1. The 5+H Method: An ideal generated idea is the one which must answer, who,
what, where, why, when and how. Which is the more method of 5w and H. These
were the parameters on which, if the ideas are generated, might result in a great
solution which on implementation might prove to be the best one.
2. Social listing: A problems arises when more of the competitors are into the same
product line as yours so to reduce the competition gap this social listening is done.
3. Brainstorming: It is prevalent as well as popular tactic followed by every business. All
the suggestions from the overall group of people are considered; May it be right
May it be wrong all the matters here is the idea. A very quick session on
brainstorming and filtering the final idea is done before the execution step.
4. Role playing: Its working in the same office or with the same colleagues some people
might feel bored. As a result of this all the business persons need to do is switch
places then trying to ask for ideas will help.
5. Mind Mapping: Mind mapping is another successful
method of generating ideas. It can be done by
diagrammatically representing the task of the concept.
 Brain mapping is also a screenplay in which one central character with a leading role
is placed between the map, while the elements that link to it must be centered
around the movie.

6. Think in Reverse: This prevalent method or idea-generating step will help in the long
run. But how can this one be possible? Sometimes, if we know what is not to be
done, we can see where the mistake has occurred if we try thinking this way.

7. Idea Capture: Some people have the same opinion, and their ideas clash about any
problem in the same manner at the same time. Hence, Idea Drop software can be
used to avoid the same situation, such as similar ideas striking off.

8. Questioning Assumptions: In the industry, many times, the work is confined to

getting all the things done. Hence, this might lead to untapped opportunities and
questions, leading to a barrier to generating ideas.
Thus, to avoid the same situation, a creative challenge must be designed, and from
this, a collection of feedback and assumptions might be done. Now, looking for an
idea or assumption that can be utilized for the present problem must be chosen.

9. Collaboration: As the name suggests, two or more people

work together to achieve a particular goal. This method is
again the most popular one. Many people join hands for a
specific project or so; this is done because a team always has
more ideas and innovations than one business person.

10. The Story Boarding Method: It is a method in which the

ideas or concepts are placed to look like that of a cartoon
strip. Then, a story is developed from it. Ideas are taken
from every colleague, and a sticky note is passed aboard.
This makes a story. In this manner, the ideas interact and
establish a connection between them.

11. Sketching as a Group: As we know, if something is drawn as a picture or sketch, our

brain sensors start acting, and the sketch that the eyes have visualized remains in
the memory for a longer time than the discussions being made.
Thus, if a rough sketch of ideas is made on the whiteboard, it could be easier for
others to understand, and if they have innovative ideas, they can come up with
them.

12. Forced relationship: All the ideas are combined in this technique or step, producing
or inventing a new idea.
 13. Visualization and visual prompts: It is the visualization of the issues being first
overlooked, and in the subconscious mind, the ideas are functioning for the problem
occurring.

14. Use online Tools to generate ideas: Ideas can also be identified across the
multidimensional internet. Ideas are available here in great abundance. One of these
platforms is Evernote, which provides well-formatted and helpful solutions. And this
allows one to write thoughts instantly.
Idea evaluation
Ideas always have a lot of uncertainty involved and little data to back them up. Thus,
prioritizing ideas evaluation and making decisions on which ones to implement right away,
which ones to test or pilot and which ones to keep for later will put you in a bit of a pickle.
Idea evaluation definition revolves around one of the most complex and demanding tasks in
idea management and, innovation management. So, let’s discuss how to make idea
evaluation work for you.
Methods of idea evaluation
1. Crowd sourced ideas evaluation: Its highly recommended to use the crowed
sourced approach. When evaluating the feasibility of business ideas related to
existing customer facing processes.
2. Expert group ideas evaluations: It makes sense to ask experts for their opinion if the
ideas are highly technical or complex. So this is usually a good balance between
avoiding individual biases but skill keeping the evaluations relevant.
3. Individual ideas evaluation: Occasionally there will that others might simply not
understand without the kind of insight a single person in the organisation has. In
that case its best to trust in the research or insight of these individuals and proceed
to test these ideas without caring too much about what the evaluation would say.
Process of idea evaluation
Step:1
1. Initial idea exploration, Identification and assessment
a. From a project committee: Creating a good project committee involves bring
together individuals who have the business development skills needed to investing
the idea/concept and carry through with business formation if the concept is viable.

b. Formulate general business idea(s) or concepts: Define business idea or concept

and describe why it has merit your idea may involve Felling an Unmet need in the
marketplace with a new product, providing an existing product in a new form
producing a product cheaper than competitors or other ways in which value can be
handed remember. An idea is only viable if people are willing to pay you for what
it provides. For example, a premium product is only viable if someone is willing to
pay more for it.
 c. Identify alternative business models or scenarios for the ideas: A business model
describes how the business will function in producing the product or service and
providing it to the customers a business scenario is a logical assembling of the
essential business elements starting with the raw materials procurement and ending
with the sale of the final product and all the stages in between.
d. Investigate idea or concept and alternative business scenario: Conduct an initial
informal investigation of the validity of idea Investigate the scenarios or models
early in the process this may be nothing more than a series of telephone calls to
knowledgeable individuals.

e. Formal investigation: They want to conduct a formal assessment such as a pre-

feasibility study or a marketing study of the idea and various scenarios or models
this may involve using consultants to investigate various aspects of the project it may
involve eliminating additional scenario or models or identifying new models.
Step2:
2. Idea or concept and scenario or model deliberation and assessment
a. Further refined the business scenario or model: If we conducted any of the
formal assessments described above information that can be used to further
Scenario or models. So by now should I have refined idea to one or small number of
specific and detailed business scenario or models that want to assess this is a critical
before move to the next step.
b. Conduct a feasibility study: A feasibility study will provide a comprehensive and
detailed assessment of the market, operational Technical managerial and financial
aspect of business project. These factors will feed into the economic assessment of
your project.
c. Analyse the feasibility study: When received the feasibility report The first step is
to begin Deliberations on whether to proceed with the project rather need to
determine the completeness and accuracy of the study.

d. Further refine the idea and scenario or model: However before proceeding may
see the need for further study of various aspects of business project it is not
uncommon for the feasibility study to uncover new issues that need to be
investigated this may create the need for additional negotiations with consultants to
expand on the original scope of the feasibility study.
Step-3
Go/ No Go decision: It determines whether a project is worth all the effort and investment
or should it be halted. The criterion for the decision is set by the organization itself and is
tailored to the needs of the business. The result of the process determines whether a
company will move ahead with the process or not.
Step 4
Business plan preparation and implementation
Business Plan is a blueprint of the step by step procedure that would be followed in order
to convert a business idea into a successful business venture. It involves the following tasks
–prepare and implement a business plan, follow these steps:
 Assemble your team and review the details of your plan.
 Break down big goals into manageable objectives.
 Delegate responsibilities; you don't have to do everything yourself.
 Measure results using numbers.
 Schedule regular business plan reviews

Feasibility Study
A feasibility study—sometimes called a feasibility analysis or feasibility report—is a way to
evaluate whether or not a project plan could be successful. A feasibility study evaluates the
practicality of your project plan in order to judge whether or not you’re able to move
forward with the project.
A feasibility study is simply an assessment of the practicality of a proposed project plan or
method. This is done by analysing technical, economic, legal, operational and time
feasibility factors. Just as the name implies, you’re asking, “Is this feasible?” For example,
do you have or can you create the technology that accomplishes what you propose? Do you
have the people, tools and resources necessary? And, will the project get you the ROI you
expect?

Project feasibility analysis

Project feasibility analysis can be defined as the process of viability of project which
associated with the project such as technical, financial, socio economic managerial and
environmental etc.

Importance of a Feasibility Study

a) Increases the focus of project teams
b) Finds fresh opportunities
c) Gives important information to help make a "go/no-go" choice.
d) Reduces the number of available business options
e) Finds a good cause to start the project
f) Increases the success rate through the assessment of several factors
g) Assists in making project decisions
h) Identifies grounds for not moving forward

steps in feasibility study

1. Identify and recognize the people or firms: that will be involved in preparing in
various aspects of the study.
2. Examine the market feasibility both in terms of ocular(eye) observations and the
actual scientific survey: Determine if there is sample excess demand and a
competitive market position of the project. If not feasible, abandon the idea
immediately and think of another business project.
3. Find out if the project or idea is technically feasible: Determine if the resources to
be used are available on a long term basis and at a reasonable cost, if not feasible
abandon the project or idea.
4. Proceed with the management study: Management study involves in determining if
the organisational set up carry out its function effectively and that qualified persons
under the circumstances are available.
5. If management is feasible determine if it is financially feasible. Financial feasibility
means that the budge or financing shall be available at a reasonable cost and there
is a financial support and is deemed profitable.
6. Lastly prepare the summary of the feasibility study including the brief description of
the project and the major assumptions made such as a market project share and
prices, investment costs, method of financing.

Types of project feasibility

1. Technical Feasibility Study

A technical Feasibility Study aims to verify whether the organisation is eligible to use its
technical in-house resources and expertise to perform successfully. This assessment
involves scrutinising various aspects, including the following:

a) Production capacity: Does the company have the resource base to produce that
number of products and services for the customers?
b) Facility needs: Will today’s facilities fulfil the standards required, or will new facilities
be constructed?
c) Raw materials and supply chain: Are there enough purchases, and have the
organisation maintained a supply chain?
d) Regulatory compliance: Does the Project Execution follow the relevant guidelines
and professionals bear the relevant certifications to meet the requirements and the
industry standards?

2. Economic Feasibility Study

It is a financial Feasibility Study that primarily examines the project's financial viability.
The economic Feasibility Study typically involves several steps:
a) Determining capital requirements: Calculate funding collection, overhead, and other
capital.
b) Cost breakdown: Determining and listing all the project costs including the purchase
of materials, hardware, labour, and overheard costs are too.
c) Funding sources: Trying out a variety of possible solutions like banks, stakes, or
grants.
d) Revenue projection: By using prediction tools such as a cost-benefit analysis or
business forecasting to get the level of income, return on investment and profit margin.
e) Financial analysis: Projecting the performance of the Project based on means that are
related to a financial analysis and are characterised by the utilisation of such things as
cash flow statements, balance sheets and financial projections.
3. Legal Feasibility Study
Legal Feasibility is a type of analysis that seeks to confirm that a Project follows all the
relevant laws and regulations. Key considerations include:
a) Regulatory compliance: Briefing the whole project team about all required laws and
regulations that the project has to comply with.
b) Business structure: Assessing the legal systems (e.g., LLCs vs. corporations) that
would best protect liability, governance, and minimising taxation, if any.

4. Operational Feasibility Study

An operational Feasibility Study looks at how effectively a product will meet its needs.
It also talks about how easy it will be to use and maintain once it is in place. In
addition, this study enumerates the necessity of evaluating a product's utility and the
response and suggestions of application development team.

5. Scheduling Feasibility Study

Proposed project schedules and deadlines are the main subject of a scheduling a
Feasibility Study. This evaluation concerns how long team members will need to
complete the project. It also highly impacts the business because if the programme isn't
finished on time, the planned result might not be realised.

6. Cultural and Political Feasibility

This section deep dives in understanding how the software project aligns with
organizational culture and its impact on the political landscape within an organization.
It helps in considering the acceptance of proposed changes and identifies any internal
resistance that may arise.

7. Market Feasibility
It involves assessing whether the proposed software system meets the demands and
expectations of the target market. This assessment includes understanding factors like
consumer preferences, evaluating potential competitors, and the viability of a product
or service. This helps us to understand the product fit in the market.

8. Resource Feasibility
Access to resource assesses the availability and adequacy of financial, technological,
and human resources required to complete the software project. This process ensures
that sufficient hardware, software, skilled professionals, and funding are accessible to
successfully implement the project. This evaluation is important for determining the
project's feasibility based on available resources.

Feasibility Report
A feasibility report is a report that evaluates a set of proposed project paths or solutions
to determine if they are viable. The person who prepares a feasibility report evaluates
the feasibility of different solutions and then chooses their recommendation for the best
solution. They then present the feasibility report to their company and make their
recommendation.

Finding team
A team becomes more than just a collection of people when a strong sense of mutual
commitment creates synergy(cooperation), thus generating performance greater than
the sum of the performance of its individual members.
One of the many ways for a business to organise employees is in teams. A team is made
up of two or more people who work together to achieve a common goal.

Characteristics of finding team

1. Ideal size and membership: The team should be the minimum size needed to
achieve the team’s goals and include members with the right mix of skills and
talents to get the job done.
2. Fairness in decision making: Ideally teams will make decisions by consensus
(accepted opinion). When consensus is not feasible, teams will use fair decision-
making procedures that everyone agrees on.
3. Creativity: Effective teams value original thinking and will produce new and unique
appropriate to organisation problems.
4. Accountability: Members must be accountable to each other for getting their work
done on schedule and following the groups rules and procedures.
5. Purpose and goals: every team member must clearly understand the purpose and
goals for bringing this particular group of individuals together.
6. Action plans: helps the team determine what advice, assistance, training, materials
and other resources it may be needed.
7. Roles and responsibilities: Teams operate most efficiently if they tap everyone’s
talents. All members understand their own duties and know who is responsible for
what.
8. Information sharing: Effective discussions depend upon how well information is
passed between team members hoarding information cannot be tolerated. A
proliferation(growth) of new technologies has made this easier than it has ever
been.
9. Good data: With information sharing comes the requirement for good data. Teams
that use good data for problem-solving and decision making have a much easier
time arriving at permanent solutions to problems.
10. Decision making: This is really a subset of the skills & practices. There is no on way to
reach a decision, but it must be a recognised path and transparent to all team
members
 Unit-2
Entreprise set-up

SETTING UP AN ENTERPRISE
Now you know what entrepreneurship is all about. It is an act of creating an enterprise or
an opportunity to become an entrepreneur and generate profits. What is an enterprise?
What are the various forms of an enterprise? What is the process of setting up an
enterprise? How can one register an enterprise?

PROCESS OF SETTING UP AN ENTERPRISE

An enterprise is an industrial undertaking or a business concern or any other establishment

which is engaged in production or procurement of goods or services to fulfil the demand
of the customer. Setting up an enterprise is the whole process of converting an innovative
business idea into a realistic project to be able to reap profits in the long run. Setting up an
enterprise may not be as easy as it looks. It involves a lot of commitment, patience, proper
planning and a regressive process to convert what is there in your mind into a realistic
entity.
A determined entrepreneur is the most crucial
aspect of every successful business project. In
order to set up an enterprise, a suitable project has
to be chosen. It involves a systematic feasibility
study, preparation of project profile, strategic
planning, deciding upon the constitution of the
entity, preparation of project report, obtaining
registration and clearance from related
departments, resource mobilisation, obtaining
funds and final implementation of the project.
Based on the selection of product/service to be
offered, a project feasibility
study has to be conducted and a brief product
profile is made on that basis. Depending upon the
type of project, details like a suitable form of
enterprise, location, investment involved are
decided. In this chapter we will discuss various
aspects of setting up of an enterprise in detail
FORMS OF AN ENTERPRISE
To set up an enterprise, an entrepreneur has to decide upon the constitution of the
enterprise at the initial stage of the project. There are various forms of an enterprise which
can be chosen by the entrepreneur based on the selection of the intended project. Selection
of a most conducive form of enterprise is important for the successful execution of the
project. Let us discuss some broad categories of enterprises.

Types of Organisations
1. Sole Proprietorship:
Sole proprietorship is the simplest and oldest form of enterprise. It is also known as a sole
trader or simply proprietorship. It is the type of business entity which is owned and run by
one individual, which means 100 per cent ownership and profits stay with the owner and so
the decision taking authority. In sole proprietorship there is no legal distinction between the
owner and the business. Many businesses starts as a sole proprietorship and get converted
into huge corporation later. Companies like Coca-Cola, Apple, Google, Amazon, and Disney
started as sole proprietorships.
Sole proprietorship is a popular business form due to its simplicity, ease of setup and
comparatively less initial costs involved. A sole proprietor need only register his/her name
to secure local license and can start his/ her business immediately. Taxation formalities for
sole proprietorship is also very easy as the income generated during the course of business
gets taxed only at the owner’s personal income tax rate with no major reporting
requirements.
Salient Features of Sole Proprietorship
a. Single ownership
b. No separate legal entity of the firm
c. Unlimited liability
d. One man control
e. Undivided risk

2. Partnership Firm
As a business entity grows in size and scope of operations, it needs much more funds that
may possibly be beyond the capacity of a single person. A group of persons can join their
hands to form a partnership to fulfil the needs of organisation. Partnership, the form of
enterprise, over comes the limitations of a one- person business such as need of more
capital,
better managerial skills and specialisation.
The Partnership Act, 1932 defines partnership as, “the relation between persons who
have agreed to share the profits of business carried on by all or anyone of them acting for
all.” In other words, a partnership is a form of organisation in which there is two or more
persons share the ownership and thereby profits or losses generated in the business entity.
Persons who enter into a partnership agreement are called the partners.
As per section 464 of the Companies Act 2013, maximum number of partners can be 100
subject to the number prescribed by the government. However as per Rule 10 of the
Companies (miscellaneous) Rules 2014, at present the maximum number of members can
be 50. The partnership may come into existence either as a result of expansion of the sole
proprietorship firm or by means of an agreement between two or more people to join
hands to form a partnership firm.

Salient Features of Partnership Firm a. Two or more persons enter into the partnership
agreement, known as partners
b. A written or oral agreement
c. Legal aspects are governed by the Indian Partnership Act, 1932
d. Mutual consent to join hands among the partners
e. Unlimited liability of partners
f. No separate legal entity of the firm

3. Limited Liability Partnership Firm

A traditional form of partnership firm suffers the problem of unlimited liability. Liability of
the partnership firms extends right upto their personal assets. This make regular partnership
firms undesirable for most of the entrepreneurs. To settle up these issues a new form of
organisation has been passed in January 2009 by the government of India, the Limited
Liability Partnership to be governed under the Limited Liability Partnership Act, 2008.
Limited Liability Partnership or LLP is a hybrid form of organisation which contains the
features of both, the traditional partnership firm and company. It is an alternative corporate
business form which offers benefits
of limited liability to the partners at lower compliances costs. An LLP is a legal entity, liable
for the full extent of its assets. However, the liabilities of its partners are limited. Further, no
partner shall be liable on account of the independent or unauthorised actions of other
partners in the firm. Thus, LLP allows individual partners to be shielded from liabilities
created by another partner’s wrong business decisions or misconduct.

Salient Features of Limited Liability Partnership Firm

a. It is a corporate body which has its separate legal entity
b. It enjoys the perpetual succession unlike traditional form of partnership
c. It is governed by the Limited Liability Partnership Act, 2008. Also, the Partnership Act,
1932 is not applicable to it.
d. There has to be minimum of two persons for its incorporation. However, unlike
partnership firm, there is no limit of maximum members.
e. Partners assume limited liability.
f. If partners agree, LLP can have a common seal.

4. Joint Stock Company

This form of organisation was evolved to overcome the weaknesses of proprietorship and
partnership forms of businesses. A joint stock company or association is a group of
individuals organised to conduct a business for a common motive of making profits. The
individuals have a joint stock of capital represented by shares owned in the company. These
shares/ stocks are transferable by the members without the consent of the group.
A joint stock company can be formed under the Companies Act 2013. A registered company
is incorporated as a separate legal entity, with a distinct name, common seals, and
perpetual succession with the limited liability of individual share-holders or members. As an
independent legal entity, the joint stock company enjoys the status of an artificial legal
person, which means it can sue some other party or can be sued in its own name.

Types of Joint Stock Company

i. Private Company
A private company is a company which has a paid up capital of one lakh rupees or above,
as prescribed by its Articles of Association. However the Companies Amendment Act (2015)
removes the minimum paid-up requirement. To form a private company, there must be at
least two members. The maximum limit is of 200 members. Also, these members are
restricted in their rights to transfer their shares, if any. A private company cannot invite to
the public to subscribe for the shares or debentures of the company.

ii. Public Company

A public company is any company, which is
a. Not a private company.
b. Has paid up capital of minimum five lakh rupees and higher, as may be prescribed.
c. Is a subsidiary of a company which is not a private company.
The formation of a public company requires at least seven members and can invite
general public to subscribe for its shares and debentures, if required. Members are not
restricted to transfer of their shares

Choice of form of Company

A prospective entrepreneur should properly analyse various form of organisation to identify
the one that suits his/her business idea in the best possible way. The choice has to be made
at the time of setting up the business entity. The choice could be derived by several factors
including:
a. Nature of business
b. Size and scale of operation
c. Capital requirement
d. Degree of control desired by the promoter
e. Degree of risk and uncertainty the owners are ready to bear
f. Life span of the enterprise desired by the owners etc.

Procedure for Set Up an Enterprise

1. Identify a Business Opportunity
When it comes to starting a successful company, having a great idea isn't enough. The
internet is swarming with great ideas that never came to fruition because someone else
capitalized on it first, or the creator was trying to answer a question that nobody asked. The
key is to have an idea that can be leveraged into a profitable business.

2. Write Your Business Plan

The blueprint of a successful enterprise is your business plan. This is the document that will
detail all of your research, how you intend to implement your business and where you will
get the money to do so. You can begin working on your business plan as soon as you have
identified a viable business opportunity, but be prepared to update it as needed, particularly
when you begin to assemble your team and lo
ok for investors or financing.

3. Executive summary: a short description of the plan, including the market opportunity you
identified and how you plan to fill it
Business description: explains the kind of enterprise you plan to start, what the industry is
like now and how it will change in the near future.
Market strategies: identifies your customers and how you can compete against the
weakness of competitors
Development plan: describes your product or service and how you will develop it, including
a budget
Operations and management plan: explains how your enterprise will operate on a daily
basis.
Finance: details from where the money will come, when you will get it and how you will get
it.

4. Assemble Your Team of Experts

It's important to do an honest self-assessment of your skills, your strengths and your
weaknesses and then seek out people who have skills and expertise that will complement
your own.

5. Start Setting Up Financing

If you require financing, which is more likely when starting an enterprise compared to other
small businesses, it will be worthwhile to find investors who also have an interest in working
alongside you, on your corporate board or as an adviser.

6. Enterprise Setup Overview

Once you have identified a business opportunity, researched it, developed a business plan
and found financing, it's time to go into business. You will need to create your company,
select a name and decide on its legal entity not to mention finding a location to begin your
operations and looking at the first staff positions you will need to hire. This is really where
the hard work and the fun begins, but it's not something to rush into until all of your other
preparations are complete.

Steps for establish your enterprise

1. Selection of a Project
Identify and select a viable business project based on thorough market research and
analysis of customer demand, competition, and industry trends.

2. Decide on the Constitution

Choose the legal structure for your business (e.g., sole proprietorship, partnership, LLC,
corporation) considering factors such as liability, taxation, and management style.

3. Obtain Registration
Register your business with relevant local, state, and federal authorities to gain legal
recognition and the rights to operate.

4. Obtain Clearances from Departments as Applicable

Secure all necessary permits and licenses from various government departments to ensure
compliance with regulations. This may include environmental, health, safety, and industry-
specific clearances.

5. Arrange for Land/Shed

Select and acquire an appropriate location or building for your operations, considering
factors like accessibility, cost, and proximity to suppliers and markets.

6. Arrange for Plant and Machinery

Procure the necessary plant and machinery required for manufacturing products or
delivering services, based on the specific needs of your business.

7. Arrange for Infrastructure

Ensure that all necessary infrastructure, including utilities, transportation links, and IT
systems, is in place to support business operations.

8. Prepare Project Report

Develop a detailed project report that outlines the business concept, market potential,
projected financials, and operational plans. This document is crucial for securing financing
and guiding your enterprise's setup.

9. Apply for and Obtain Finance

Secure the required funding to launch and sustain your business operations. This may
involve approaching banks, investors, or other financial institutions with your project report.

10. Implement the Project

Carry out the business plan by setting up production, hiring staff, and starting operations.
Ensure all systems and processes are functioning as planned.

11. Marketing and Sales Strategy

Implement your marketing and sales strategies to promote your business and attract
customers. This is crucial for generating revenue and building market presence.
12. Obtain Final Clearances and Start Operations
After implementing the project, obtain any final clearances required to commence full-scale
operations. Regularly review and adjust operations to optimize performance and
compliance.

By following these 12 steps, you can systematically establish your enterprise, from
conception through to operational launch, ensuring a solid foundation for future growth and
success.

Problems in setting up of a business

The factors that affect the growth of business are explained below in detail:
1. Lack of legal knowledge:
The entrepreneur should have adequate legal knowledge to handle legal affairs efficiently.
Lack of legal knowledge on the part of entrepreneurs may affect smooth conduct of
business. He should have knowledge regarding Factories Act, Wages & Salaries Act, and
Workers
Compensation Act etc.
2. Lack of experience:
An entrepreneur should have enough experience to manage the business efficiently. Lack of
adequate experience may create major problems and adversely affect the experience. The
major hurdles that the new entrepreneurs face are the availability of resources to carry out
such a business. The most important is the allocation of funds that comes in the form of
money to research and development.
3. Lack of finance:
Finance is the life blood of every business. To start up a new venture requires adequate
capital. It is required to meet business expenses like purchase of raw material, payment of
wages and salaries; payment of interest on loans etc. Lack of finance can create hurdles in
setting up of a business unit.
4. Lack of technology:
Technology is never constant, it keeps on changing. Sophisticated technology helps in
increasing the production capacity and quality of the products. Lack of suitable technology
can hamper the reputation of the firm. Adoption of suitable technology can prove
beneficial to the business success and vice versa.
5. Problem of human resource:
Organisation is made up of people and people make an organisation. A firm requires skilled,
qualified and talented employees. Lack of competent staff is another major issue for a
business unit.
6. Problem of data:
Entrepreneurship is based on research work. The Entrepreneur need to conduct a survey
for
gathering information regarding market condition, competition, technology, consumer
etc. the data collected may not be accurate and precise. At times it is incorrect and
outdated. This hampers the survival of a business.
7. Problem of marketing:
The Entrepreneur should have marketing knowledge. This helps to face cut-throat
competition in all sectors. Lack of marketing efforts and knowledge with respect to
product, pricing, distribution and promotion hampers the Entrepreneurial growth.

Different aspects involved in setting up an enterprise

1. Legal Aspects for Setting up an Entreprise
Starting a new business venture in India is not as easy as it might seem. Several legal
formalities are to be complied with, for both new as well as established businesses and
startups. Some of these formalities include financial regulations, tax obligations as well as
employment law regulations, which are central to the functioning of every business
organization in India.
1 Obtain Registration
The sole proprietorship does not have too many legal formalities. MSMEs usually choose to
register with local/district industries centre for obtaining various facilities and incentives.
In case there is more than one person involved, one can opt for setting up a partnership
firm. In these firms, partners’ personal assets are also held responsible as their liabilities are
unlimited. So, it might be risky. However, partnership firms are governed by the Indian
Partnership Act, 1932 and the partnership deed which contains terms and conditions of the
partnership contract. Often, the requirement of huge capital and managerial aspects can
make it convenient to setup a Limited Liability Partnership (LLP) or a joint stock company, as
applicable. The LLPs are governed under the Limited Liability Partnership act, 2008 whereas
companies are registered with the Registrar of the Company (RoC) and the cooperative
entities are registered with the registrar of cooperatives. In India companies are governed
by the Companies Act 2013.
However, irrespective of form of the enterprise chosen, a number of clearances and
approvals are required from concerned authorities.
2 Application Formalities
An application is a prescribed format for registration of an enterprise in which all the
required details have to be duly filled and submitted along with the following documents:
a. A copy of provisional registration certificate (PRC)
b. A detailed project report
c. Certified copies in support of educational qualification, experience, and other information
as applicable to various forms of entity
d. Applicable earnest money deposit

3. Deciding on a business name

Once you decide which business structure fulfills your purpose, you are then required to
choose a business name that reflects your venture’s ideology and make sure it is not
already claimed by some other entity. For this, you will have to choose an entity name that
safeguards your entity at the state level, a trademark that safeguards your entity at the
national level and a domain name that gives life to your venture online.

4. Creation of a founder’s agreement

A Founder’s Agreement is a document that has important details about the founding
members of a venture/business. The document thus acts as an agreement that legally
establishes the rights, ownership, responsibilities, dispute resolution, and other terms
executed between the founders and the company.

Therefore, having a well-drafted Founders Agreement with all the necessary details forms a
solid foundation for the journey of a business. The agreement can also act as the go-to
guide in the case of any disagreements arise.
5. Acquire all the legal licenses and registrations
Once the Founder’s Agreement is drafted, the authorization to do business is what’s
required next. The authorizations come in the form of legal licenses and registrations. While
some of them are general and are required for all kinds of businesses other are specialized
and are additionally required for certain kinds of businesses. Example Include:
General registrations:
GST registration
Permanent Account Number
Tax Account Number
Bank Account
Shop and Establishments license (License for physical premises to the commercial
establishment)

Specialized registrations:
IEC code (To do import and export business)
FSSAI License (To start a food business)
Kosher Registration (To deal with kosher goods)
Halal Registration (To deal with Halal goods)
Other licenses for other types of businesses

6. Be acquainted with the relevant tax regime and accounting norms

Taxes are an important part of every business and when it comes to India, there are a wide
variety of taxes such as central tax, state tax, and even local taxes that may apply to some
businesses. Since different business and operating sectors attract different taxes, knowing
the relevant text regime well in advance can be quite useful.
7. Be acquaint with labour laws
Labour laws are part of every organization, small or big. When your venture is recognized as
a company that hires people, your organization is subject to several labour laws regardless
of its scale. These laws govern crucial issues such as minimum wages, gratuity, PF
payment, weekly holidays, maternity benefits, sexual harassment, and payment of bonus
among other key areas.
8. Safeguard Intellectual Property
Intellectual property is a vital part of most businesses today, especially for tech-centric
ventures. Be it codes, algorithms or even research findings, all these are some of the
common intellectual property owned by an organization.
The creation and the subsequent protection of these intellectual properties are central to
the effective growth of every innovating venture. Therefore, legal know-how in relation to
IPR laws can come in handy at every stage of a venture’s journey.
9. Creating a proper business policy
Creating a proper business policy is another step that can take a venture towards success. It
is something that keeps the employees as well as the management focused. This way
desired targeted growth can be easily achieved.
10.Get business insurance of your choice
Business insurance can safeguard your venture in cases where the personal liability
protections of your venture aren’t enough. Insurance can protect not just your individual
assets, but your business’s assets too. Some types of insurances such as unemployment
and disability insurance are even compulsory by law.
11.Have a clear idea about the mode of winding up
Winding up a company is a difficult call to make. When a company decides to shut down,
all the stakeholders, from vendors to investors are needed to be informed in advance
making the entire procedure a task that needs to be thoroughly planned and executed.
From the legal standpoint, there are three ways to wind up:
Court or Tribunal Route
Voluntary Closure/ Fast Track Exit Mode

2. Marketing aspects
Setting up a successful enterprise involves several key marketing aspects that can
significantly influence its growth and sustainability. Here are some essential elements to
consider:
1. Market Research
- Identify Your Target Audience: Understand who your customers are, their needs,
preferences, and behaviors.
- Analyze Competitors: Look at competitors’ strengths and weaknesses to identify market
gaps.
2. Brand Development
- Create a Unique Value Proposition (UVP): Clearly articulate what makes your product or
service stand out.
- Establish Brand Identity: Develop a logo, colour scheme, and messaging that resonates
with your target audience.
3. Marketing Strategy
- Choose Marketing Channels: Decide on online (social media, email, SEO) vs. offline (print
ads, events) strategies based on where your audience spends time.
- Content Marketing: Create valuable content that informs or entertains your audience to
build trust and authority.
4. Digital Presence
- Website Development: Ensure your website is user-friendly, mobile-responsive, and
optimized for search engines (SEO).
- Social Media Engagement: Use platforms like Instagram, Facebook, and LinkedIn to
connect with customers and promote your brand.
5. Customer Relationship Management (CRM)
- Build a Database: Collect customer information to personalize communication and
marketing efforts.
- Feedback Mechanism: Implement tools for gathering customer feedback to continuously
improve products and services.
6. Sales and Distribution Strategy
- Determine Pricing Strategy: Set competitive prices while considering costs and perceived
value.
- Distribution Channels: Decide how you will deliver your product or service (online, retail,
etc.).
7. Promotional Strategies
- Launch Promotions: Create special offers or events to generate buzz and attract initial
customers.
- Influencer Partnerships: Collaborate with influencers in your niche to expand your reach.
8. Analytics and Metrics
- Track Performance: Use analytics tools to measure the effectiveness of your marketing
campaigns.
- Adjust Strategies: Be ready to pivot based on what the data shows about customer
preferences and behavior.
9. Networking and Partnerships
- Industry Connections: Build relationships with other businesses that can lead to
collaborations or referrals.
- Community Involvement: Participate in local events or causes to build brand visibility and
goodwill.
10. Adaptability
- Stay Updated: Keep abreast of market trends and changes in consumer behavior to
adjust your marketing strategies accordingly.
- Continuous Learning: Invest in ongoing education about new marketing tools and
strategies to stay competitive.
By integrating these marketing aspects into your business plan, you can create a solid
foundation for attracting and retaining customers, ultimately driving the success of your
enterprise.

3. Managerial aspects
setting up an enterprise involves various managerial aspects that are crucial for effective
operations and long-term success. Here are some key elements to consider:

1. Business Planning
Develop a Business Plan: Outline your mission, vision, objectives, and strategies. This serves
as a roadmap for your enterprise.
Financial Projections: Create detailed financial forecasts, including startup costs, revenue
projections, and break-even analysis.
2. Organizational Structure
Define Roles and Responsibilities: Clearly outline who is responsible for what to enhance
accountability.
Choose an Organizational Model: Decide on a hierarchical, flat, or matrix structure based
on your needs.
3. Leadership and Management Style
Establish Leadership Principles: Determine your leadership style (e.g., transformational,
transactional) to guide team dynamics.
Foster a Positive Culture: Promote values that encourage collaboration, innovation, and
respect within the team.
4. Human Resources Management
Recruitment Strategy: Develop a plan for attracting and hiring the right talent, including job
descriptions and interview processes.
Training and Development: Implement on boarding and ongoing training programs to
enhance employee skills and retention.
5. Operations Management
Set Operational Procedures: Establish processes for daily operations, quality control, and
efficiency.
Resource Management: Ensure effective allocation of resources, including materials,
technology, and human resources.
6. Financial Management
Budgeting: Create a budget that aligns with your business goals and helps track expenses
and revenues.
Accounting Systems: Implement robust accounting practices to monitor financial health and
ensure compliance with regulations.
7. Strategic Planning
Short and Long-Term Goals: Define measurable objectives that guide your enterprise’s
growth and direction.
Risk Management: Identify potential risks and develop strategies to mitigate them.
8. Marketing and Sales Management
Sales Strategy: Develop a comprehensive approach to reach your target market and convert
leads into customers.
Customer Relationship Management (CRM): Use CRM tools to manage interactions and
improve customer satisfaction.
9. Technology and Innovation
Adopt Relevant Technology: Leverage tools and platforms that enhance efficiency and
competitiveness.
Encourage Innovation: Foster an environment where employees feel empowered to
propose new ideas and solutions.
10. Monitoring and Evaluation
Performance Metrics: Establish key performance indicators (KPIs) to measure success and
identify areas for improvement.
Regular Reviews: Conduct periodic evaluations of operations and strategies to ensure
alignment with goals.
11. Networking and Partnerships
Build Relationships: Establish connections with industry peers, mentors, and local
businesses to support growth and opportunities.
Collaborative Ventures: Explore partnerships that can enhance your offerings and expand
your market reach.
By focusing on these managerial aspects, you can create a structured and efficient
enterprise that is well-positioned for growth and adaptability in a competitive environment.
4. Financial aspects
Setting up a business involves several financial aspects that you should carefully consider.
Here are the key components:
1. Startup Costs
Legal Fees: Costs for business registration, licenses, and permits.
Equipment and Supplies: Purchase or lease of necessary tools and inventory.
Office Space: Rent or mortgage costs, along with utilities.
Marketing Expenses: Initial advertising, branding, and website development.
2. Operational Costs
Salaries and Wages: Employee pay, benefits, and taxes.
Ongoing Rent/Lease: Regular payments for your location.
Utilities and Maintenance: Monthly costs for electricity, water, internet, etc.
Insurance: Business insurance to protect against risks.
3. Funding Sources
Personal Savings: Using your own money to finance the business.
Loans: Bank loans or credit lines, along with interest considerations.
Investors: Securing funds from venture capitalists or angel investors.
Grants: Exploring grants available for specific types of businesses.
4. Financial Planning and Projections
Budgeting: Creating a detailed budget for startup and operational costs.
Cash Flow Projections: Estimating income and expenses over time to ensure sustainability.
Use this section to provide a cash flow statement that provides details around the projected cash
inflows and outflows your business generates from operating, financing, and investing activities
during a specific timeframe.

Break-even Analysis: Use this section to include a table and/or chart that provides information on
the number of units your business needs to sell to cover your costs and make a profit. Determining
when the business will start generating profit.
Profit and loss statement: Use this section to provide a pro forma profit and loss statement, also
known as a projected income statement, that details sales, cost of sales, profitability, and other vital
financial information to stakeholders.

BALANCE SHEET: Use this section to add a projected balance sheet statement that provide details on
how your business plans to manage assets, including receivables and inventory.

5. Accounting and Record Keeping

Accounting Software: Investing in tools for tracking income and expenses.
Hiring an Accountant: Professional help for taxes and financial advice.
Bookkeeping: Maintaining accurate records of all transactions.
6. Tax Obligations
Business Structure: Choosing between sole proprietorship, LLC, corporation, etc., as it
effects taxes.
Sales Tax: Understanding if you need to collect sales tax on products/services.
Estimated Taxes: Planning for quarterly tax payments if required.
7. Financial Reserves
Emergency Fund: Setting aside money for unexpected expenses.
Operating Capital: Ensuring you have enough cash flow for day-to-day operations.
8. Regulatory Compliance Costs
Taxes and Licenses: Ongoing costs related to business compliance.
Environmental Regulations: If applicable, costs associated with meeting environmental
standards.
9. Contingency Planning
Risk Management: Allocating funds for potential risks and market fluctuations.
Insurance Policies: Evaluating different types of insurance for protection against losses.
10. Growth Funding
Reinvestment: Planning for using profits for business growth.
Expansion Plans: Budgeting for potential expansion and related costs.

Unit-3
MONITORING AND MAINTAINING OF AN ENTERPRISE
Monitoring: It is standard methodical collection and analysis of information to track the
development of programme accomplishment against predetermined targets and
objectives. It relates to keep a cautious check of project activities over a period of time.
Each project needs advanced proposals and objectives.
Monitoring system should work out to keep watch on all the activities, including finances.
This will let the project staff to know how things are going, as well as giving early warning
of probable problems and difficulties.
Monitoring should be done while a project is being implemented to improving the project
design. It provides information on where a project is at any given time with respect to
targets and outcomes. Moreover, it focuses particularly on efficiency, and the use of
resources. It does help in clarifying the objectives of the programme.
Monitoring converts objectives into performance indicators and sets targets. It regularly
collects data on these indicators and compares actual results with targets. With its help
reports regarding the progress can be passed on to the managers and alert them to about
any forthcoming problem.

Evaluation: It is an objective appraisal of an ongoing or recently finished project,

programme or policy, its design, implementation and results. Evaluation deals with
questions of cause and effect. It assesses the value, worth or impact of an intervention and
is characteristically done on an episodic basis. Generally, it is done annually or at the end of
the phase of a project or programme. An evaluation studies the outcome of a project with
the aim of informing the design of future projects. Evaluation looks at the significance,
efficiency, and sustainability of an intervention. It provides evidence of why targets and
outcomes are or are not being achieved and addresses issues of causality. Evaluation
analyzes why planned results were or were not achieved. It assesses specific casual
contributions of activities to results. Evaluation examines implementation process. It
explores unintentional results. Evaluation provides lessons, highlights significant
accomplishments or programme potential and offers recommendations for expansion.
IMPORTANCE OF MONITORING AND EVALUATION

1. Offer invariable feedback to improve customer’s service.

2. Recognize potential problems as early as possible and propose probable solutions.
3. Observe the user-friendliness of the project to all sectors of the target population.
4. Observe the effectiveness with which the different components of the project are being
implemented and propose steps for improvements.
5. Evaluate possibilities up to which the project is able to achieve its general objectives.
6. Provide guiding principles for the setting up of future projects.
7. Try to improve project design.
8. Consider views of stakeholders.
9. Show necessity for mid-course corrections.
10. Reliable information allows managers to keep track of progress and regulate operations
accordingly.

Introduction to different government schemes supporting entrepreneurship

1.Grameen Banks
The origin of Grameen Bank can be traced back to 1976 when Professor Muhammad Yunus,
Head of the Rural Economics Program at the University of Chittagong, launched an action
research project to examine the possibility of designing a credit delivery system to provide
banking services targeted at the rural poor. In 1983, the pilot project was transformed into a
Grameen Bank has always made it a priority to empower women and involve them in
economic activities. As a result, Grameen Bank can proudly say that 98% of its borrowers
are women. More than two-thirds of these women have moved on to better lives through
poverty alleviation. It provides small loans (known as microcredit or "grameen credit")
The unique feature of Grameen Bank is that no collateral is required to get the credit from
the bank.
It supports hand-powered wells and loans to support the enterprises of Grameen
members' immediate relatives. It has found that seasonal agricultural loans and lease-to-
own agreements for equipment and livestock help the poor establish better agriculture.
The bank has set a new goal: to make each of its branch locations free of poverty, as defined
by benchmarks such as having adequate food and access to clean water and latrines.
It offers education loans, new entrepreneurship loans, and scholarships to borrower
members' children. Grameen Bank's most humanitarian and exceptional program is the
Struggle (Beggar) Members Program.
Grameen Bank now operates in 40 Zonal offices, 40 Zonal Audit offices, 240 Area Offices,
and 2568 Branch offices and the number of employees as of September 2024 stood at
23,319. Grameen Bank is currently present in 81678 (94%) villages in the country and
provides services to nearly 45 million people (including family members) through 10.64
million borrower members.
objectives:
• extend banking facilities to poor men and women;
• eliminate the exploitation of the poor by money lenders;
• create opportunities for self-employment for the vast multitude of unemployed people in
rural Bangladesh;
• bring the disadvantaged, mostly the women from the poorest households, within the fold
of an organizational format which they can understand and manage by themselves.
The 16 decisions of Grameen bank
• To respect the four principles of the Grameen bank
• To provide good living standard for families
• To repair dilapidated houses and work to build new ones
• To cultivate vegetables the whole year round and sell the surplus
• To pick out seedling during the season for planting
• To have small families, reduce expenses to a minimum and take care of health
• To educate children and ensure their earning capability.
• To ensure cleanliness of children and homes.
• To build latrines and use them
• To only drink water drawn from wall if not boil the water or use alum.
• To not accept a marriage dowry for sons and not give one to daughters at their
marriage
• To cause harm to no one and to not tolerate anyone who should do us harm
• To make important investments in common to increase out income.
• To be always ready to help each other.
• To help and restore order if we learn that discipline is not respected in a centre
• To introduce physical culture in all centres and to take part in all social events.

2.Pradhan Mantri Mudra Yojana (PMMY)

Mudra Yojana Government Funding scheme- government schemes for startups in India
Micro Units Development Refinance Agency (MUDRA) banks have been created to enhance
credit facilities and boost the growth of small businesses in rural areas. The government
has introduced this scheme to support small businesses in India. In 2015, the government
allocated INR 10,000 crores to promote startup culture in the country.

The MUDRA banks provide startup loans of up to INR 10 lakhs to small enterprises, and
businesses, which are non-corporate, and non-farm small/micro-enterprises. MUDRA
comes under Pradhan Mantri Mudra Yojana (PMMY) which was launched on 8 April 2015.

The loans have been categorized as— Shishu (up to Rs 50,000), Kishore (between Rs
50,000 and Rs 5 lakh) and Tarun ( Rs 10 lakh)."As of March 24, 2023, about Rs 23.2 lakh
crore has been sanctioned in 40.82 crore loan accounts," stated Finance Minister Nirmala
sitharaman." Additionally, there are various other initiatives and programs that offer startup
support from government.
ELIGIBILITY :
Any Indian citizen with a business plan for a non-farm income-producing activity such as
manufacturing, processing, commerce, or service sector with a credit requirement of up to
10 lakh can approach a Bank, MFI, or NBFC for MUDRA loans under PMMY.

3.ASPIRE
The government has made continuous efforts to improve the social and economic aspects
of life in rural areas of India and one of the most popular schemes that the Indian
government has sanctioned in this regard is ASPIRE. A Scheme for Promotion of Innovation,
Rural Industries and Entrepreneurship (ASPIRE) is a Government of India initiative,
promoted by the Ministry of Micro, Small and Medium Enterprises (MSME).

The mentioned scheme was launched in 2015 to offer proper knowledge to the
entrepreneurs to start with their business and emerge as employers. Since 56% of the
Indian population lives in rural areas, the government has promoted entrepreneurship and
innovation in the rural sector with this scheme. The ASPIRE scheme aims at increasing
employment, reducing poverty, and encouraging innovation in rural India.

However, the main idea is to promote the agro-business industry. The Ministry of Medium
and Small Enterprises has tried to boost economic development at the grassroots level. The
total budget of the scheme initially was INR 200 crores for the period of 2014-2016.

ELIGIBILITY :
Any institution and/or agencies under any state government or the Government of India.
These institutions must be engaged in the field of rural development, business
management, technology and entrepreneurial development.

Support for International Patent Protection in Electronics & Information Technology (SIP-
EIT)
The Department of Electronics and Information Technology (DEITY) has launched a scheme
entitled “Support for International Patent Protection in E&IT (SIP-EIT)”. This scheme
provides financial support to MSMEs and Technology Startups for international patent
filing.

The SIP-EIT scheme offers several features and benefits to applicants in the Information
Communication Technologies and Electronics sector who are seeking financial support for
international patent filing.

Under this scheme, a maximum reimbursement limit of INR 15 lakhs per invention or 50%
of the total charges incurred in filing and processing a patent application, whichever is
lesser, is provided. This can help reduce the financial burden on applicants and encourage
innovation in these industries.
Another advantage of the SEP-EIT scheme is that it can be applied at any stage of
international patent filing, providing flexibility to the applicant.

ELIGIBILITY:
The business's investment limit should be met, and the firm should be registered under the
Government's Companies Act. To reap the benefits of the scheme, the investment limit in
plant and machinery should be met.

Multiplier Grants Scheme (MGS)

Department of Electronics and Information Technology (DeitY) started the Multiplier Grants
Scheme (MGS). This scheme aims to encourage collaborative Research & Development
(R&D) between industry and academics/institutions for the development of products and
packages.

Under the scheme, if the industry supports the R&D of products that can be commercialized
at the institutional level, the government shall provide financial support which will be up to
twice the amount provided by the industry. MGS promotes and expedites the development
of aboriginal products and packages. The government grants would be limited to a
maximum amount of INR 2 crores per project and the duration of each project could
considerably be less than 2 years. It would be INR 4 crores and 3 years for industry
associations.

While the Multiplier Grants Scheme is developed keeping entrepreneurs and start-ups in
mind, various business industries can be eligible based on their intentions.

Credit Guarantee Fund Trust for Micro and Small Entreprises (CGTMSE)

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE ) was set up by
the government of India and had been put into effect from 1st January 2000 onwards to
provide business loans to micro-level businesses, small-scale industries, and startups with
zero collateral.

It allows businesses to avail of loans at highly subsidized interest rates without requiring
security. By working along with SIDBI (Small Industries Development Bank of India), the
government provides a maximum amount of up to INR 100 lakhs under this scheme for
boosting new enterprises as well as rehabilitating the existing ones. Primarily meant for
manufacturing units, this loan can be availed in the form of working capital or a term loan.

On March 30, 2023, the Credit Guarantee Fund Trust for Micro and Small Businesses
(CGTMSE) corpus was injected with a value of Rs. 8,000 crores. The CGTMSE has announced
recommendations for lowering the annual guarantee cost for loans up to Rs. 1 crore from a
maximum of 2% per year to as low as 0.37% per year.

ELIGIBILITY:
All MSME borrowers/entities who are stressed viz. SMA2 and NPA accounts are eligible for
restructuring (as per RBI guidelines) and are commercially viable as per the assessment of
the lending institutions.

Single Point Registration Scheme (SPRS)

The Single Point Registration Scheme (SPRS) was launched in 2003. It is managed by the
National Small Industries Corporation (NSIC). NSIC registers all Micro & Small Enterprises
(MSEs) in India under the Single Point Registration Scheme to enable them to participate
in government purchases.

Enterprises are classified as Micro, Small, or Medium based on the limit of investment. Both
Micro and small businesses have varied criteria and registration requirements under SPRS.
Micro Businesses - Rs 3000 for up to Rs 100 lakh in revenue. Small Businesses - Rs 5000 for a
turnover of up to Rs 100 lakh. Micro Businesses - Rs 3000+ Rs 1500 for every additional Rs
100 lakh in revenue.

ELIGIBILITY:
Eligible MSME units are provided with a Udyog Aadhar registration certificate. All central
ministries, departments, and PSUs shall set an annual goal of a minimum of 20% of the total
annual purchases of products produced or rendered by MSMEs. About 358 items are
reserved for exclusive purchase from MSMEs.
All central ministries, departments, and PSUs shall set an annual goal of a minimum of 20%
of the total annual purchases of products produced or rendered by MSMEs. About 358
items are reserved for exclusive purchase from MSMEs.

Zero Defect Zero Effect (ZED) Certification Scheme

The Zero Defect Zero Effect (ZED) scheme was launched on April 28, 2022, by the
government of India with a vision of creating proper awareness about ZED manufacturing
among the MSMEs and motivating them the assessment of their enterprise for ZED and
support them.

ZED can be summed up as an integrated and holistic certification and handholding scheme
that extends an opportunity to the Micro, Small and Medium Enterprises (MSMEs) to strive
to continuously improve their processes and move up the ZED maturity assessment model.

ELIGIBILITY:
All MSMEs registered with the UDYAM registration portal (of the MoMSME) will be eligible
to participate in MSME Sustainable (ZED) Certification and avail of related
benefits/incentives.

High Risk - High Reward Research

The High Risk and High Reward Research is a scheme launched by the Indian government to
support and invite new proposals and ideas that have the potential to usher a paradigm-
shifting influence on the Science and Technology domains. This funding focuses on the new
proposals, which might be conceptually new and risky but are expected to have a paradigm-
shifting influence on the S&T, in terms of formulating new hypotheses or scientific
breakthroughs, which might help in the emergence of new technologies.

Typically, financing is granted for three years. In rare situations, as determined by the expert
committee, the period might be up to 5 years. This sort of project has no budget constraints.
Besides overhead funds, the research grant covers equipment, consumables, contingencies,
and travel.

ELIGIBILITY:
The applicant must be an Indian citizen who resides in India.
The applicant(s) must be employed in a regular academic/research capacity at a recognised
institution.
Individual investigators or teams of investigators may submit ideas.
Proposals submitted by a group of scientists must name a Principal Investigator, who will
drive the research objectives and oversee the grant administration.

Design Clinic Scheme for Design Expertise

The Design Clinic Scheme for Design Expertise is a scheme declared by the Indian
government to support the MSME manufacturing sector of India. As the government
deems that design and innovation are critical to the growth of a brand and feels that the
MSMEs should develop a design-centric approach to fuel their startups, it aims to infuse
design expertise in them.

Under this scheme, the government of India announced to extend around Rs 60,000 for
attending design seminars and up to Rs 3.75 lakhs or 75% of the cost that would be needed
in conducting the seminar, where the entrepreneurs and their teams can learn about
design theories, interact with design veterans, build a network, and put them into
practice.

ELIGIBILITY:
The unit must be a micro/small/medium enterprise, as defined in the MSMED Act of 2006 or
as revised subsequently.
The Designer in this programme must be chosen from a pool of skilled industrial designers
who have been authorised for this programme.

Startup India Initiative

Launched on 16th January, 2016, the Startup India Initiative has rolled out several programs
with the objective of supporting entrepreneurs, building a robust startup ecosystem and
transforming India into a country of job creators instead of job seekers. These programs
are managed by a dedicated Startup India Team, which reports to the Department for
Industrial Policy and Promotion (DPIIT).
Under the Startup India initiative, eligible companies can get recognised as Startups by
DPIIT, in order to access a host of tax benefits, easier compliance, IPR fast-tracking & more.
Over 96,000 startups are registered with the Department for Promotion of Industry and
Internal Trade (DPIIT) till March 2023.

ELIGIBILITY :
It is incorporated as a private limited company (as defined in the Companies Act, 2013) or
registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or
a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India.
Turnover of the entity for any of the financial years since incorporation/ registration has not
exceeded one hundred crore rupees.
Entity is working towards innovation, development or improvement of products or
processes or services, or if it is a scalable business model with a high potential of
employment generation or wealth creation.
Provided that an entity formed by splitting up or reconstruction of an existing business shall
not be considered a ‘Startup’.

DIC:
The District Industry Center (DIC) under the Directorate of Industries and Commerce offers
a subsidy loan scheme for young professionals under the guidance of the Ministry of
Social Justice and Empowerment. Established in 1978, District Industries Centers’ program
was initiated by the Central Government to promote tiny, cottage, village, and Small Scale
Industries (SSIs) in smaller towns and their particular areas to make them available with
all the basic needs, services, and facilities.
DIC’s primary focus is to generate employment in rural regions of India. District Industries
Centers are managed and operated at the district level to provide all the necessary
support services to entrepreneurs or first-time business owners to start their own Micro
Small and Medium Enterprises (MSMEs). DICs also promote the Registration and
Development of Industrial Cooperatives.

Role of District Industries Centres (DICs)

District Industries Centres (DICs) play a prominent role in developing and promoting
industries in the respective states. They are established by the Department of Commerce
& Industry of the respective state. In addition to DICs, Sub-District Industries Centres
(SDICs) have also been created in various states such as Nagaland. This additional has
helped industrial development to penetrate deeper into the rural areas of the country.
 Provide assistance for DIC programmes
 Single window clearance system
 Promote industries in rural areas
 Provide employment to people in both rural and urban areas

Schemes under the District Industries Centres (DICs)

A number of schemes have been launched which fall under the ambit of District Industries
Centres (DICs). These schemes help in fulfilling the goals of establishing the District
Industries Centres (DICs). These schemes are centrally sponsored schemes as well as central
sector schemes. The following schemes fall under the DIC:

 Prime Minister’s Employment Guarantee Program (PMEGP): This centrally

sponsored scheme under the Ministry of Micro, Small and Medium Enterprises
(MSME) was launched in 2008. The PMEGP aims to generate employment
opportunities for educated unemployed citizens in rural and urban areas.
The nodal agency for the implementation of the scheme is Khadi & Village Industries
Commission (KVIC). Under this scheme, 90-95% of the amount will be given by banks
as loans with 5-10% of the project cost in the industry, service or business sector
being the applicant’s share.
 District Industries Centre (DIC) Loan Scheme
This scheme is for the self-employed as well as the small unit sector in towns and
rural areas with population less than 1 lakh and with capital investment being less
than Rs. 2 lakhs. These small units are identified by the Small Scale Industries Board
and Village industries, handicrafts, handlooms, silk industries.
For entrepreneurs in the general category, 20% of the total investment or Rs. 40,000
shall be the margin money (whichever is lesser). For entrepreneurs in the SC/ST
category, 30% of the total investment or Rs. 60,000 shall be the margin money
(whichever is lesser).

 Seed Money Scheme: This scheme is targeted towards the self-employed who
engage in skilled wage employment or self-employment ventures. Institutional
financial assistance in the form of soft loans. Project cost to avail loan facility under
the seed money scheme has been increased to Rs. 25 lakhs. For projects up to Rs.
10 lakhs, seed money assistance of up to 15% of the project cost is offered. For
SC/ST/OBC, the assistance provided will be 20% of the project cost; the limit of
assistance provided is Rs. 3.75 lakhs with 75% of the project cost being in the form of
a bank loan.

 District Awards Scheme: To boost entrepreneurs’ spirits and celebrate their

achievements and successes, the state governments have started honoring such
entrepreneurs with awards at the district level. The District Advisory Committee
formed at the district level shall select the entrepreneurs to be awarded. The District
Awards Function is held on Vishwakarma Jayanti Day which falls on varying dates
every year. The award function includes the display of the products by the
entrepreneur for sale and exhibition along with workshops and discussion about
the same.
 Entrepreneurship Development Training Programme
This scheme was launched to impart training to the educated unemployed people
and encourage them to self-employment ventures or engage in skilled wage
employment. Training programmes under the Entrepreneurship Development
Training Programme are:
I. Entreprenership Introductory Programme (Udyojakata Parichay Karyakram)
 II. Entrepreneurship Development Training Programme (12 Day residential)
III. Technical Training Programme (12 Days to 2 Months non-residential)

Women Entrepreneurship
Women entrepreneurship Women entrepreneurship is the process in which women initiate
a business, gather all resources, undertake risks, face challenges, provides employment to
others and manages the business independently. Approximately 1/3rd of the
entrepreneurs in the world are women entrepreneurs.

According to definition given by Government of India – “A women entrepreneur is defined

as an enterprise owned and controlled by woman having a minimum financial interest of
51% of the capital and giving at least 51% employment generated to women”

Women Entrepreneurship refers to business or organization started by a woman or group of

women. There has been a change in role of women due to growth in education,
urbanization, industrialization and awareness of democratic values.

According to APJ Abdul Kalam "Empowering women is a prerequisite for creating a good
nation, when women are empowered, society with stability is assured. Empowerment of
women is essential as their thoughts and their value systems lead to the development of a
good family, good society and ultimately a good nation."

Characteristics of Successful Women Entrepreneurs

1. 2Hard-working
Women entrepreneurs understand that hard work is the key to success. Women often put
in extra hours and effort to make sure their businesses succeed. This characteristic helps
them stay ahead of the competition, strive for excellence, and achieve success.

2. Accept challenges
Women entrepreneurs are not afraid to accept challenges and take risks. They understand
that these two things will help them grow as an individual and as a business person. Women
entrepreneurs embrace change, learn from mistakes, and look for ways to improve their
businesses.

3. Motivator
Women entrepreneurs are also excellent motivators who can inspire others to perform
better or reach greater heights. Women entrepreneurs have a passion for what they do and
use this passion to motivate employees or colleagues around them. Women understand the
importance of motivating those around them and use this to reach their goals.

4. Ambitious
Women entrepreneurs are ambitious and have strong visions for the future. Women
understand that ambition is a crucial factor in achieving success. Women entrepreneurs set
high standards for themselves, strive to exceed expectations, and look for ways to
improve their businesses.

5. Patience
Women entrepreneurs do not give up easily, but rather stay focused on the goal at hand.
Women understand that there will be difficult times along the way, but they stay patient
and persevere until they get what they want. Women entrepreneurs often take calculated
risks and learn from their mistakes to move forward with success.

6. Adventurous
Women entrepreneurs also know how to take calculated risks and explore new
opportunities. Women entrepreneurs are willing to try new things and take risks that can
potentially put their businesses in a better position. Women entrepreneurs understand the
importance of trying something different and embracing change for their businesses to
excel.

7. Conscious
Women entrepreneurs are conscious of the decisions they make, both for themselves and
for their businesses. Women understand the importance of making wise decisions when it
comes to running a successful business. Women entrepreneurs take into consideration all
the factors involved before making any major decisions.

8. Educated
Women entrepreneurs know that education is important when it comes to achieving
success. Women often invest in learning new skills or gaining additional knowledge so
they can stay ahead of the competition and succeed in their respective fields. Women also
pursue higher degrees so they can have an edge over their competitors.

9. Intelligent
Women entrepreneurs are always looking for ways to improve and innovate. Women use
their intelligence to solve problems and come up with solutions that can benefit their
businesses in the long run. Women understand that knowledge is power and use this to
become successful women entrepreneurs.

Problems of Women Entrepreneurs

Basic problem of a woman entrepreneur is that she is a woman. Women entrepreneurs face
two sets of problems specific to women entrepreneurs. These are summarized as follows.

1. Shortage of Finance
Women and small entrepreneurs always suffer from inadequate fixed and working capital.
Owing to lack of confidence in women’s ability, male members in the family do not like to
risk their capital in ventures run by women. Banks have also taken negative attitude while
lending to women entrepreneurs. Thus women entrepreneurs rely often on personal saving
and loans from family and friends.

2. Shortage of Raw Material

Women entrepreneurs find it difficult to procure material and other necessary inputs. The
prices of many raw materials are quite high.

3. Inadequate Marketing Facilities

Most of the women entrepreneurs depend on intermediaries for marketing their products.
It is very difficult for the women entrepreneurs to explore the market and to make their
product popular. For women, market is a ‘chakravyuh’.

4. Keen Competition
Women entrepreneurs face tough competition from male entrepreneurs and also from
organized industries. They cannot afford to spend large sums of advertisement.

5. High Cost of Production

High prices of material, low productivity. Underutilisation of capacity etc. account for high
cost of production. The government assistance and subsidies would not be sufficient for the
survival.

6. Family Responsibilities
Management of family may be more complicated than the management of the business.
Hence she cannot put her full involvement in the business. Occupational backgrounds of the
family and education level of husband has a direct impact on the development of women
entrepreneurship.

7. Low Mobility
One of the biggest handicaps for women entrepreneur is her inability to travel from one
place to another for business purposes. A single women asking for room is looked upon with
suspicion. Sometimes licensing authorities, labour officials and sales tax officials may harass
them.

8. Lack of Education
About 60% of women are still illiterate in India. There exists a belief that investing in
woman’s education is a liability, not an asset. Lack of knowledge and experience creates
further problems in the setting up and operation of business.

9. Low Capacity to Bear Risks

Women lead a protected life dominated by the family members. She is not economically
independent. She may not have confidence to bear the risk alone. If she cannot bear risks,
she can never be an entrepreneur.
 10. Social Attitudes
Women do not get equal treatment in a male-dominated society. Wherever she goes, she
faces discrimination. The male ego stands in the way of success of women entrepreneurs.
Thus, the rigid social attitudes prevent a woman from becoming a successful entrepreneur.

11. Low Need for Achievement

Generally, a woman will not have strong need for achievement. Every women suffers from
the painful feeling that she is forced to depend on others in her life. Her preconceived
notions about her role in life inhibit achievement and independence.

12. Lack of Training

A women entrepreneur from middle class starts her first entrepreneurial venture in her late
thirties or early forties due to her commitments towards children. Her biggest problem is
the lack of sufficient business training.

13. Lack of Information

Women entrepreneurs sometimes are not aware of technological developments and other
information on subsidies and concessions available to them. They may not know how to get
loans, industrial estates, raw materials, etc.

Ways to Overcome the Challenges of Women Entrepreneurs

Women are no longer viewed as traditional resources confined to the household, however,
despite being educated, knowledgeable and capable of contributing towards transforming
economies, women face fundamental challenges trying to enter the entrepreneurial sector.
They are constrained by gender values, norms and stereotypes in the environment in which
they operate. Some of the fundamental challenges faced by women are:

1. Overcoming Financial Bias

Kauffmann research indicates that women on average start companies with half as much
capital as men. Five years ago, even federal programs designed to give entrepreneurs a leg
up were skewed by gender; women only received 15 percent of the U.S. Small Business
Administration’s Small Business Innovation Research awards.

Finding Work-Life Balance:

In addition to the challenges faced by many women in the working world, they still usually
bear the larger share of the household management functions. Providing true work-life
balance is a challenge, particularly for women who feel they need to be perfect both at work
and at home.

Overcoming Entrepreneurial Obstacles

Share the stories: Provide more exposure for successful women entrepreneurs to shine.
This storytelling also serves as inspiration and opens up networks for women to connect and
mentor.
Create support networks: Leverage personal and professional networks to find support,
both in terms of sound advisors and for other women leaders, whether those women have
started their own companies or are leaders in other organizations.

Forgive yourself: When it comes to work-life balance, no leader should feel obligated to be
Wonder Woman. Create realistic expectations and make peace with the fact that no one has
to “do it all.”
Address failure: Everyone, male or female, experiences failure in business. Sharpen the
coping strategies to react well to missteps and missed opportunities and move forward.
Ask for help: Find the courage to ask for help, whether it is with a particular business issue,
specific expertise, or securing funding.
Find the right funding: With challenges abundant in seeking small business loans for women,
creative financing options are needed.

Gender Disparity- Lack of Access to Education and Training:

Due to the inherent gender bias in the society, women lack access to knowledge about
business development, maintaining accounts, understanding money matters and even day
to day activities of the company. Lack of such skills and the difficulty in access to such
information and necessary resources can make running a business very difficult and the
chances of turning a business into a success even more minimal.

Lack of Access to Markets and Networking: Four things primarily required to be a successful
entrepreneur are knowledge, expertise, practice and contacts. A lot of women
entrepreneurs are forced to operate on a small scale due to mobility restrictions and find it
harder to be a member of professional organisations and other networks.
Furthermore, such places are inundated with male colleagues who are sometimes
unwelcoming to women and not inclusive, therefore, it makes it harder for women to have
access to markets. A lot of these networking activities also take place after working hours
and it makes it harder for women to attend them due to familial constraints. Women also
have a high fear of sexual harassment and may find themselves restricted in their ability to
travel.

A constructive solution to this could be establishing more women only or women majority
networks, a safe space, where a woman could enter, gain confidence and move further.
Support networks should be created where they can leverage both their professional and
personal lives. A good network could provide women with more access to role models to
look up to. Women entrepreneurs around the world should be encouraged to share their
stories, to inspire women who aspire to start up their own business.

Lack of Mobility: Women are looked down upon in society when they try to run a business.
As such, renting a room or property or buying land gets looked at as suspicious. Its even
more challenging for single women who have their own businesses. Limited mobility also
refers to the act of owning motorized vehicles and many financially independent women
cannot travel alone as there are issues with safely traveling solo. This is one of the many
problems faced by women entrepreneurs in the country who try to meet up with
prospective clients.

High Competition
The modern economy has made it difficult to start new ideas from scratch and scale up.
There is always someone with the latest innovations out there and women entrepreneurs
have to prove themselves in order to stand out. Colleagues and investors aren’t willing to
commit either due to the hardships and long roads that await them. Women have to use
limited resources to operate their business and grow it. Until they build a solid reputation in
the industry and generate enough profits, there is no credibility in their words.

No backup plans
Some women entrepreneurs who invest everything into their business can lose big time.
Due to the lack of education, social status, work experience, and male support, women
entrepreneurs are seen as having no exposure or industry support. They are not taken by
peers seriously, and those who invest their all into the business, they cannot afford to fail or
have a backup plan.
Digital literacy is important in this era, and women entrepreneurs who do not develop an
online presence cannot gain new clients. Most women entrepreneurs lack education in
STEM disciplines such as Science, Technology, Engineering, and Math. They don’t have
access to the tools and techniques needed to empower them and run a good business.

Low-Risk Appetite
Women business owners are not as financially independent as male businessmen and are
prone to many risks when running an enterprise. As such, they cannot take a high degree of
risk when running their business. Socioeconomic constants force them to hold back from
executing various ideas and making them a reality. The low-risk appetite is due to the rising
costs of product development and production, marketing, lack of credibility and strong
backing in the business, etc.
Meaning – Establishment of Startups – Procedure for Startups – Benefits of growing startups to the
Indian Economy, Emerging trends in startups-Domains that are ruling in the startup space in India.