Commerce I

Unit 1 - Business

O.P.Wheeler - Business is an institution organized and operated to provide goods and services to
society under the incentive of private gains
L.H.Haney - Business is a human activity directed towards producing and acquiring wealth through
buying and selling activities.

Nature/Features of Business - BuCCED DyGoOPRe RiSoSo

1. Buying and selling - All business activities are directly or indirectly connected with transfers or
buying and selling of goods and services.
2. Creativity - Consumers can’t be satisfied with the same type of goods and services. Hence
business organizations have to be innovative or constantly search new ideas and proposals.
3. Customer satisfaction - Modern business world is a consumer oriented, they give importance not
only to profit earning but also to customer satisfaction.
4. Economic activity - Business is a form of an economic activity.
5. Degree of scale - Business can be carried at varied levels such as small scale, medium scale and
large scale.
6. Dynamic - Business is a dynamic activity due to ever changing internal and external factors.
7. Government control - Business organizations are subject to government control and must abide
by the laws and regulations laid down by government.
8. Organized activity - Business is an organised activity concerned with production and distribution of
goods and services.
9. Profit motives - Business is an income oriented activity. Foremost objective of any business is to
earn profit.
10. Regularity in dealing - Business is not a one time activity or single transaction but continuous and
recurring exchange of goods/services and economic dealings.
11. Risk and uncertainties - Business activities are always risky and uncertain. A business is likely to
suffer huge loss due to a number of possible reasons such as change in fashion, tastes,
preferences, government policies, technology, recession in the economy, natural calamities etc. All
risks cant be insured but can be mitigated with proper foresight and planning.
12. Societal interest / Social orientation - At present, business firms place emphasis on the “societal
concept” of business. Businesses make efforts to preserve and promote customers’ and society’s
well-being.
13. Social responsibility - Professional business firms are conscious of their social responsibility. The
firm tries to fulfill their social responsibility towards various groups such as environment, community,
education, ethical practices, well being, diversity and economic responsibility.

Functions of business - FiMaPeP PuPuReSa

Functions refer to a series of activities or tasks performed to achieve predetermined objectives. For
the smooth conduct of business activities, there is a need to perform certain important functions. These
functions are as follows.
1. Finance function - This function deals with obtaining the right amount of finance, at the right cost
and at the right time and effectively utilizing it for efficient operations. It also deals with long term
and short term investments.
2. Marketing function - It deals with creating and maintaining demand for goods and services
produced by organizations. It constitutes designing products, determining prices, motivating
consumers through personal selling, advertisement, sales promotion, distribution channels, etc.
 3. Personnel function - This function deals with effective utilization of human resources and aims at
selecting the right persons at the right place and motivating them to work through team work and
cooperate to achieve organizational goals.
4. Production - Production means conversion of raw material in to semi finished or finished product.
The production department deals with activities like design of the operations system (product
design, process design, and location of facilities, facilities layout and capacity planning) and
operation and control decisions (routing, loading, scheduling, dispatching and expediting).
5. Purchase and store keeping - Purchases includes purchases of various materials necessary for
operation of business activities such as purchase of raw materials, tangible and intangible assets,
machinery spart parts and components, etc. Store keeping constitutes storing and maintaining
finished goods or inventory. Proper care must be taken while maintaining inventory as overstocking
leads to blocking of capital and understocking leads to blockage of production cycle.
6. Public relations - Public relations is necessary to promote and maintain goodwill and reputation of
an organization. The scope of the public relations department comprises handling public queries,
complaint redressal, interviews, press conferences, meetings influencing public image of the
company.
7. Research and development - Research and Development plays an important role in product
development. It helps to bring out product modifications and product innovations which are
necessary due to increasing competition, changing taste and preference of customers, new
technology, etc.
8. Sales function - The Sales department works in close co-ordination with the marketing department.
The sales department is concerned with the Selling activities of the firm. It books orders from the
customers and then distributes the goods through the distribution channels

Scope of business
Business has a very wide scope. It includes large number of activities. These activities may be
grouped under two broad categories: Industry & Commerce

Industry - PrEx GeMaCoSe

Production, processing or fabrication of goods and services. Raw materials are converted into finished
products. Some industries manufacture consumer goods while others manufacture capital goods.

1. Primary industries - Agriculture, Fishing, etc

2. Extractive industries - Extracting minerals, ores, etc.
3. Genetic industries - breeding and reproduction of plants and animals for the purpose of sale.
Poultry, Plant nurseries, sericulture etc
4. Manufacturing industries - Conversion of raw material into finished goods. They create form utility.
5. Construction industries - Construction work like construction of bridges, dams, canals, roads
harbours, building etc.
6. Service industries - Service industries produce intangible goods i.e. goods which can’t be seen or
touched for example transport, insurance, banking, etc.

Commerce - Trade and Aids to trade

Transfer of ownership and movement of goods. It involves all forms of trade and the services that assist
trading.
A. Trade B. Aids to trade - WABaCo InMeSaTr
Means buying & selling of goods & services Constitutes another component of commerce.
Involves transfer of ownership of goods from Includes various agencies which are useful for
seller to buyer. the conduct of trading activities.
Internal/Domestic/Local External/Foreign/Intl 1. Warehousing - Time gap
1. Wholesale 1. Import 2. Advertising
2. Retail 2. Export 3. Banking
3. Entrepot 4. Communication
 5. Insurance
5. Mercantile agents - Intermediary link
6. Salesmanship - Personal selling
7. Transport - Place gap

Significance of Business to the firms: GROWTH

1. Growth Opportunities: Businesses provide avenues for expansion and scaling operations. A tech
startup launching new products and expanding to international markets.
2. Revenue Generation: The primary source of income for firms, allowing for reinvestment and
sustainability. A retail store earning profits from sales, enabling it to open more branches.
3. Organizational Development: Enhances the structure and capabilities of the firm, promoting
efficiency. Implementing new management systems that streamline operations and improve
productivity.
4. Wealth Creation: Increases the value of the firm, benefiting owners, shareholders, and employees.
A successful business increasing its market valuation, resulting in higher stock prices.
5. Technological Advancement: Encourages innovation and adoption of new technologies within the
firm. A manufacturing company investing in automation to improve production efficiency.
6. Human Resource Development: Promotes employee growth through training and career
advancement opportunities. A firm providing professional development programs to enhance the
skills of its workforce.

Significance of Business to the customers: CHOICE

1. Convenience: Businesses provide products and services that make life easier for consumers.
Online grocery stores allow customers to shop from home and get items delivered to their doorstep.
2. Higher Quality: Competition among businesses drives the improvement of product and service
quality. Smartphone companies continually enhancing features and performance to attract
customers.
3. Options and Variety: Consumers benefit from a wide range of choices in products and services.
Supermarkets offering various brands and types of cereal to cater to different tastes and
preferences.
4. Innovation: Businesses bring new and innovative products to the market, improving consumers'
lifestyles. The introduction of smart home devices that automate daily tasks and improve home
security.
5. Cost Efficiency: Competitive pricing and economies of scale result in lower prices for consumers.
Discount retailers providing quality goods at more affordable prices compared to specialty stores.
6. Enhanced Services: Businesses offer value-added services that improve the consumer
experience. Banks providing online banking and mobile apps for easy and efficient financial
management.

Significance of Business to the society: PROGRESS

1. Provision of Goods and Services: Businesses provide essential goods and services that improve
the quality of life. For example, pharmaceutical companies develop and distribute medicines that
enhance public health and save lives.
2. Revenue Generation: Businesses contribute to the economy by generating revenue, which can be
reinvested in societal development. For example, the profits from local businesses can be used to
fund community projects and infrastructure.
3. Opportunity Creation: Businesses create job opportunities, reducing unemployment and improving
living standards. For example, a new factory in a rural area can provide employment to hundreds of
local residents.
4. Growth and Development: Businesses drive economic growth and development in society. For
example, the tech industry’s innovation leads to advancements that benefit various sectors, from
healthcare to education.
 5. Resource Utilization: Efficient use of resources by businesses leads to better resource
management and sustainability. For example, companies adopting green technologies help in
conserving natural resources and reducing environmental impact.
6. Education and Skill Development: Businesses invest in education and training, enhancing the
skills of the workforce. For example, companies offering internships and apprenticeships help young
people gain valuable experience and skills.
7. Social Responsibility: Businesses engage in corporate social responsibility (CSR) activities,
contributing to societal welfare. For example, a company funding a local school or healthcare clinic
demonstrates its commitment to social causes.
8. Standard of Living Improvement: Businesses contribute to raising the standard of living by
offering better products, services, and employment opportunities. For example, the proliferation of
affordable smartphones has improved communication and access to information worldwide.

Unit 2 - Objectives of Business

D. E. Mc. Farland, “Objectives are the goal, aims or purposes that organizations wish to achieve
over varying periods of time.”

Steps in setting business objectives - IMPROVE

1. Internal Environment: Internal environmental factors include human resources, financial
resources, physical facilities, management structure, internal relationship etc. must be studied. Such
an analysis helps in understanding strengths and weaknesses of the organization.
2. Management philosophy: The philosophy of management plays an important role in setting up
business objectives. They could be either orthodox which uses old fashioned and traditional
approach to carry on its business or modern practices.
3. Past objectives: Past Objectives and achievements of the organization serve as guidelines for
formulating future objectives.
4. Resources of the organization: The proper consideration of various resources such as human
and non-human resources results in optimum utilization of resources, reduction in wastages,
reduction in cost and increase in profitability.
5. Objectives: After analyzing internal and external environments, the firm should set long term and
short term objectives on priority basis.
6. Value system: Value System is a set of consistent ethical values followed by an individual or an
organization which influences the functioning of the business organization. They must be
considered while setting up business objectives.
7. External Environment: Analyzing external environments such as customers, suppliers,
competitors, political, economical, social, technological, natural, etc, reveals the opportunities and
threats which would help an organization to prepare and act accordingly.

Classification of business objectives:

1. Organic Objectives or Threefold Objectives of business: SGR
a. Survival: Survival is the most basic objective of any organization. Other objectives can be
thought of only if the organization survives. Due to LPG, technological advancements,
changing customer behavior, changes in overall market trends, leads to extremely
competitive and complex business environment. Constant monitoring, r & d and strategic
planning are necessary to survival in this competitive business environment.
b. Growth: Growth is the second major organic business Objective. Business should grow in
all directions over period of time. Growth takes place through expansion or diversification.
Expansion involves increase in business by introducing a product which is similar to the
existing product line of the business. While diversification involves introducing a product
which is totally different.
 c. Recognition and Prestige : Every business organization desires to have social recognition
and prestige. This objective is partly economic and partly social. Prestige of an organization
is due to standard quality of its products, regularity in their supply, reasonable prices and
satisfactory service to customers. Recognition indicates public confidence in an organization.
Such recognition is possible only after a long period of useful service to the society.

2. Economic objectives: PRINCING

a. Profit: The primary economic objective of business, essential for survival, growth, prestige,
and as a reward for bearing risks and uncertainties.
b. Resource Utilization: Maximizing the efficient use of available resources, minimizing waste,
and utilizing modern technology to improve production quality and reduce costs.
c. Innovation: Continuously introducing new methods, ideas, and techniques to enhance
quality, reduce costs, and better satisfy customers in a competitive environment.
d. New Product Introduction: Launching new products or brands to increase market share,
effectively face competition, and boost profitability.
e. Customer Creation: Identifying and attracting customers for goods and services, as the
foundation of business and a key to earning profits.
f. Investments: Increasing shareholder wealth through steady business growth, resulting in
higher dividends and appreciation in the market value of shares.
g. New Market Expansion: Entering new domestic and international markets, building a strong
distribution network, and using effective marketing strategies to increase market share and
reputation.
h. Growth of Business: Expanding business activities to increase production and turnover,
gain advantages of large-scale operations, and meet market competition through new
products and modern production techniques.

3. Social objectives: Business is a part of a social System. A social system involves people and their
Organizations in mutual relationship to each other. Business is an integral part of society.
(Mention the importance of component and then explain business’s duties)
a. Towards Customers: Customer satisfaction through good quality of goods & services and
fair pricing.
b. Towards Employees: Treat with respect and provide right compensation, good working
condition, basic facilities and other benefits.
c. Towards Shareholders: Utilize capital efficiently and provide fair returns on investment.
d. Towards Government: Timely payment of duties and taxes, following of rules and
regulations.
e. Towards Suppliers: Timely payment of dues.
f. Towards Dealers: Provide proper commission and remuneration.
g. Towards Society: Sustainable way of conducting business such incorporating renewable
energy source, recycling programs and producing green products, community engagement
such as charitable donations, volunteering for social causes, local development, educational
objectives such as providing scholarships, training programmes, internships,
apprenticeships, other responsibilities such as equal employment opportunities, inclusivity,
health programs, etc.

4. Human objectives: HEALTH

a. Human Resource Development: Investing in the continuous development and training of
employees to enhance their skills and career growth. For example, a company might offer
regular workshops and courses to help employees stay updated with the latest industry
trends.
b. Employee Welfare: Ensuring the well-being and satisfaction of employees through various
benefits and support programs. For example, providing health insurance, mental health
support, and wellness programs to maintain a healthy workforce.
 c. Adequate Working Conditions: Creating a safe, healthy, and comfortable work
environment for all employees. For example, maintaining ergonomically designed
workspaces and adhering to safety regulations to prevent workplace injuries.
d. Leader Development: Fostering leadership skills and providing opportunities for employees
to take on leadership roles. For example, implementing mentorship programs where
experienced leaders guide and develop emerging talents within the organization.
e. Team Building: Encouraging teamwork and collaboration among employees to enhance
productivity and job satisfaction. For example, organizing team-building activities and
collaborative projects that foster a sense of camaraderie and cooperation.
f. Human Dignity and Respect: Promoting a culture of respect, equality, and non-
discrimination within the workplace. For example, enforcing policies against harassment and
discrimination to ensure every employee is treated with dignity and respect.

5. National objectives: GROWTH N

a. Generation of Employment: Businesses aim to create job opportunities, reducing
unemployment and contributing to national economic stability. For example, a new
manufacturing plant opening in a region can provide hundreds of new jobs for local
residents.
b. Rural Development: Businesses contribute to the development of rural areas by setting up
operations in these regions. For example, a company might establish a factory in a rural
area, bringing infrastructure improvements and boosting the local economy.
c. Optimization of Resources: Efficient use of national resources, including natural, financial,
and human resources, to maximize productivity. For example, a business implementing
sustainable practices to minimize waste and optimize the use of raw materials.
d. Wealth Creation: Businesses generate wealth for the nation through economic activities,
which can be reinvested in public services and infrastructure. For example, profitable
businesses pay taxes that fund government projects like schools and hospitals.
e. Technological Advancement: Businesses drive innovation and the adoption of new
technologies, contributing to national progress. For example, tech companies developing
cutting-edge technologies that can be used across various sectors, enhancing overall
productivity and efficiency.
f. Human Capital Development: Investing in the education and skills of the workforce to
improve the national talent pool. For example, companies providing training and
development programs to enhance the skills and knowledge of their employees, benefiting
the broader economy.
g. National Integration and communal Harmony: Business organisation is referred as
corporate citizens. Therefore, they should work for national integration and communal
harmony. They should not support anti-social elements or communal forces who work
against national integration. This is one of the most important national objectives of
business.

Unit 3 - New Trends in Business

Liberalization & Privatization: Liberalization & Privatization means elimination of state control over
economic activities. It facilitates a free flow of GITPICS goods, information, technology, people, ideas,
capital and services across different countries and societies. It is the transfer of control of ownership of
economic resources from the public sector to the private sector. The public sector had been experiencing
various problems such as: FAILURE
1. Failure to meet deadlines
2. Autonomy lacking
3. Increasing losses
 4. Labor problems
5. Underperformance (Low efficiency)
6. Reduction in profitability
7. Excessive political interference,etc.
To resolve these issues, the government introduced New Industrial Policy, 1991, which aimed at
integrating the country’s economy with the world economy thereby liberalizing / privatizing / globalizing it.
Following are the aspects of Liberalization and Privatization: DAMP FLARE
1. Dereservation of Public sector: No. of industries reserved for public sector reduced from 17 to 8 to 3
which includes Railways, Atomic energy, Specific minerals.
2. Abolition of licensing: Abolished licensing except 6 industries alcohol, cigarettes, explosives,
defense, drugs & pharma and hazardous chemicals.
3. MRTP Act: NIP, 91 restructured the Monopolies and Restrictive Trade Practice Act thereby
abolishing regulations related to concentration of economic power, entry restrictions for new
enterprises, expansions / mergers / acquisitions of businesses.
4. Phased Manufacturing Programmes: Under the New Industrial Policy (NIP) of 1991, India abolished
the requirement for enterprises to substitute imported inputs with domestic ones (PMP) and
established the Foreign Investment Promotion Board (FIPB) to accelerate foreign investment
approvals.
5. Foreign Direct Investment: Prior approval were needed but no more. High priority and high
investment industries were delicensed and could invite upto 100% FDI in sectors such as hotel,
tourism. Software, etc. Use of foreign brand name and trademark were allowed.
6. Liberalization of Foreign technology imports: Automatic licenses were given where imported capital
goods are required. Foreign technicians and foreign testing was allowed.
7. Autonomy to Public Sector : Greater autonomy was granted to nine PSUs referred to as
‘navaratnas’ ( ONGC, HPCL, BPCL, VSNL, BHEL) to make their own decisions.
8. Relaxation of local restrictions: No need for permission from Central govt to set up industries.
9. Export Promotion: Introduced measures to promote exports and integrate Indian industries into the
global market.

Globalization aspects: FACT

1. Foreign Trade Liberalization and Tariff Reductions - Opened domestic markets for inflow of
foreign goods, reduced customs duties on imports. General customs duty reduced to 10% and
import license abolished. Tariff barriers slashed to encourage trade volume.
2. Attraction of Foreign Direct Investment (FDI) - Allowed inflow of fresh foreign capital by allowing
100 % foreign equity in certain projects under the automatic route. MNCs and TNCs were
encouraged to establish themselves in Indian markets and were given a level playing field to
compete with Indian enterprises.
3. Changes in Foreign Exchange Regulations - Foreign Exchange Regulation Act was liberalized
in 1993 and Foreign Exchange Management Act was passed in 1999 to enable foreign currency
transactions.
4. Treaties and Agreements with WTO - Signed many agreements to liberalize trade such as
TRIPs (Trade Related Intellectual Property Rights), TRIMs (Trade Related Investment
Measures) and AOA (Agreement On Agriculture)

Advantages of Globalization - DIFFERENT-BI Disadvantages of Globalization - ISOLATED

Decline in poverty Increase in disparity between rich and poor
Increase in investment Slowed R & D local development
Faster economic progress due to industrialization Overcrowding of cities
Free flow of finance Loss of identities and traditional values
Employment opportunities Additional pressure on local companies due to high
competition
 Reduction in trade barriers Technological dependence on foreign sources
Economic indicators Economic outflow due to dividends and capital flight
Networking opportunities for businesses in global Disruption of local communities
markets
Technological advancements facilitated by global
collaborations
Better quality products due to competition
Increase in MNC’s

Strategy alternatives in the changing scenario

1. Stability strategy - 2(PREMS)
a. Performance level
b. Profits
c. Risk factor
d. Resources
e. Environment
f. Expertise
g. Market share
h. Management philosophy
i. Strategic advantage
j. Scope for functional improvement

2. Growth strategy
a. Internal growth strategies
i. Intensification strategy
1. Market penetration strategy - selling existing products to existing markets
2. Market development strategy - extending existing products to new markets
3. Product development strategy - developing new products for both markets

ii. Diversification strategy - Entering into new product lines

1. Vertical Diversification
a. Forward integration - expanding activities by moving ahead of its
present line-up of business, For ex,. Cloth mfr to ready made
garments mfr to retail outlets. Objective is to get closed to final
customers.
b. Backward integration - expanding activities by moving backwards of
its present line-up of business, For ex,. a retail seller starting
readymade garments manufacturing business and then cloth
manufacturing. Objective is to eliminate or reduce dependency on
suppliers.

2. Horizontal Diversification - Introducing new products / line-up which are

related to certain extent to the current line-up of business. For ex., refrigerator
mfr co. mfrs a/c’s or truck mfr co. mfrs cars.

3. Concentric Diversification - Diversification into products which are indirectly

related to current line-up of products such as car dealer providing loan, or
Microsoft an IT software developing co. initiating gaming, hardware and cloud
computing businesses. Apple initially focused on producing personal
computers started developing smartphones, tablet pcs, music devices, etc.
Pepsico originally a beverage co. expanded into chips and breakfast cereals
& juices businesses.

4. Conglomerate Diversification - Tata Group having 100 companies in 7 sectors

out of which 32 are publicly listed companies.
 b. External growth strategies
i. Collaborations or Joint ventures
ii. Mergers and Amalgamations - After merger, only one co. exists and other ceases to
exists. The assets and liabilities of non-existing co. is taken over by the surviving
company. On the other hand, is a process of combining two or more companies and
a new company is formed.
iii. Takeovers or Acquisitions

3. Retrenchment strategy
a. Divestment strategy
b. Liquidation strategy

4. Combination strategy
a. Horizontal combinations
b. Vertical combinations
c. Allied combinations
d. Service combinations
e. Mixed combinations

5. Restructuring strategies - PARAJuMP OF

Restructuring refers to rebuilding or reorganizing a business firm. It’s a strategy that may be found useful in
all the different phases of the firm’s life cycle, initial period, growth, maturity and decline. It may also be
found useful in postponing the death of the firm i.e. the dissolution or liquidation of the company.
1. Portfolio restructuring: Reallocating or rebalancing the investments or assets within a company's
portfolio to optimize returns or manage risk.
2. Amalgamation: The combination of two or more companies into a single entity, usually to achieve
synergies or market expansion.
3. Rehabilitation schemes: Plans implemented to restore a financially distressed company to a
stable and profitable condition.
4. Acquisitions / Takeover: The process where one company buys a controlling interest in another
company, either amicably or through a hostile bid.
5. Joint ventures: Business arrangements where two or more parties collaborate to achieve a specific
goal, sharing resources, risks, and profits.
6. Merger: The fusion of two companies into one, typically to achieve greater efficiencies and
competitive advantages.
a. Horizontal merger: A merger between companies operating in the same industry and at the
same stage of the production process.
b. Vertical merger: A merger between companies operating at different stages of the
production process within the same industry.
c. Conglomerate: A merger between companies that operate in unrelated business activities,
diversifying the company's business interests.
7. Privatisation: The process of transferring ownership of a business or service from the public sector
(government) to the private sector.
8. Organizational restructuring: Reorganizing the internal structure of a company to improve
efficiency, reduce costs, or adapt to new business environments.
9. Financial restructuring: Reorganizing a company's financial structure, which may involve
renegotiating debt terms, issuing new equity, or other financial strategies to improve financial
stability.

Need for restructuring

Following are important reasons for restructuring the business enterprise.
1. Sickness of the unit
2. Disinvestment
3. Intention to retire
4. To Avoid competition
5. Perceived opportunity
6. Fast growth
 7. Finance
8. Economies of scale

6. Turnaround strategy
Turnaround strategy can be referred as converting a lossmaking unit into a profitable one.

Essentials of a successful Turnaround strategy :: LEADERSHIP

Leadership (Effective Leadership):
● To make a turnaround successful, good leadership at all levels, especially top-level management, is
essential. The CEO needs to be committed, dedicated, and dynamic with creative skills to handle
the situation. If needed, the Board of Directors may change the CEO and appoint a new leader to
handle the situation.
Engagement (Proper Communication):
● The management must take various groups like employees, creditors, shareholders, and others
connected with the sick unit into confidence. This is possible through effective communication. Any
information regarding the turnaround strategy must be quick, clear, and complete to reduce
objections and reluctance.
Assessment (Relevant to the Enterprise):
● The turnaround strategy prepared should be directly related to the problems faced by the enterprise.
A good turnaround strategy should effectively address difficulties. This requires studying the
reasons for the enterprise's sickness in depth to find suitable remedial measures.
Determination (Good Management):
● The turnaround will be successful if handled by determined and motivating managers. Top
managers must be objective-oriented, self-confident, positive in outlook, innovative, and creative in
thinking with a good foresight to foresee whether their strategies would be effective in the future.
Evaluation (Viability of Business):
● The nature of the business needs careful consideration before introducing a turnaround strategy.
Sometimes, the business activity may not have a bright future due to a changed business
environment. Viability of the business activity is an essential requirement for a good turnaround
strategy.
Resource Availability (Availability of Resources):
● There must be availability of the required resources to make the turnaround effective. The strategy
would require proper amounts of cash to meet working capital needs and certain fixed capital
needs. Skilled manpower to handle newly introduced technical jobs may also be required.
Strategic Planning (Proper Planning and Execution):
● A good turnaround strategy should contain a comprehensive remedial plan and arrangements for its
execution. The strategy prepared should have solutions to the basic problems faced by the
enterprise. Necessary funds should be provided to those concerned with executing the strategy to
facilitate its execution within a time frame.
Handoff (Change of Management):
● The present management should accept responsibility for the current state of affairs. A new CEO
with experience and maturity should be appointed to execute the turnaround strategy effectively. A
change in management may bring new and better ideas to help the company recover.
Implementation (Effective Leadership):
● The implementation of the turnaround strategy requires effective leadership, which involves the
CEO and other top-level management to be committed and dedicated to the organization, handling
the turnaround situation with creativity and dynamism.
Planning (A Business Can't be Turned Around Without Proper Planning):
● Proper planning is fundamental to a successful turnaround. The strategy should be well thought out
and meticulously executed to address the underlying issues and guide the organization toward
recovery.
Steps in turnaround strategy
1. Committee - Set up a turnaround committee or a team to deal with turnaround strategy. The
committee includes top management personnel, consultants, employee representative, etc.
2. Identification - Identify and analyze problematic areas such as obsolete tech, under utilization of
resources or capacity, declining sales, etc.
3. Investigation - Make a detailed investigation of the various problems. Undertake various activities
such as discussion with employees, consumer research, dealer’s surveys, etc.
4. Critical areas - Critical
5. Restructuring plan
6. Implementation plan
7. Review

Unit 4 - Business Environment

Definition of Business Environment

The business environment encompasses all external and internal factors that influence a company's
operating conditions. These factors can impact the company's performance, strategy, and decision-making
processes. The business environment is dynamic and complex, comprising economic, social, technological,
political, and legal elements that interact and affect businesses.

Features of Business Environment: 2D-DYNAMIC

1. Dynamic in nature : Business environment is flexible and perpetually evolving. It changes
frequently due to various external forces i.e. economic, political, social, international, technological,
and demographic. Business enterprises have to operate under such dynamic environmental
conditions.
2. Direct and Indirect Impact : Business environment may have direct and indirect impact on the
working of a business like competition, government policies, customer, etc. can have a direct and
immediate effect on the working of a business enterprise. The macro-external factors like 55 social,
economic and political factors may have indirect effect on the working of the business enterprise.
3. Diversity: The business environment consists of various factors such as cultural, economic, and
social elements. For example, a multinational company must adapt its marketing strategies to
different cultural norms and preferences in various countries.
4. Yield Potential: It offers opportunities for businesses to generate profits and grow. For example,
emerging markets in developing countries present new avenues for revenue generation and
expansion.
5. Networking: The interconnectedness of businesses, suppliers, customers, and regulators is crucial.
For example, businesses leverage supply chain networks to ensure the efficient delivery of products
and services.
6. Adaptability: Businesses must be flexible and responsive to changes in the environment. For
example, during the COVID-19 pandemic, many restaurants adapted by offering delivery and
takeout services.
7. Market Dynamics: Constant changes in consumer preferences, technology, and competition. For
example, the tech industry experiences rapid shifts due to continuous technological advancements
and changing consumer demands.
8. Innovation: A thriving business environment encourages innovation and the development of new
products and services. For example, tech companies continuously innovate to stay competitive by
introducing cutting-edge gadgets and software.
9. Complexity: The business environment is characterized by numerous interrelated factors that
impact decisions. For example, regulatory changes, economic conditions, and social trends all
simultaneously influence business strategies.

Importance of Business Environment: Identification of SWOT, INSIGHT BUFFOE

1. Identification of Strengths: The analysis of the internal environment helps to identify the strengths
of the firm. Strength is an inherent capacity of an organization which can used to gain strategic
advantage over its competitors. Every organization must strive to maintain and improve on its
strengths.
2. Identification of weaknesses : The analysis of the internal environment also helps to identify
weakness of the firm. A weakness is an inherent limitation of the organization which creates a
strategic disadvantage. Therefore, the firm should identify its weaknesses and correct them as early
as possible.
3. Identification of Opportunities : The analysis of the external environment helps to identify the
opportunities in the market. An opportunity is a favourable condition in the organisation’s
environment, which enables it to strengthen its position as we see how liberalization has brought
global opportunities for Indian business houses.
4. Identification of Threats : Environmental analysis helps to identify threats from the environment. A
threat is an unfavourable condition in the organization’s environment that creates a risk or damage
to the organization like rapid technological changes that have made technologies used by
organizations obsolete. Identification of threat helps to defuse the same.
5. Informed Decision-Making: Understanding the business environment helps managers make better
decisions. For example, knowing about economic trends can guide a company in adjusting its
pricing strategy to remain competitive during inflation.
6. Navigation of Risks: Identifying potential risks in the business environment allows companies to
develop strategies to mitigate them. For example, a company aware of political instability in a region
might diversify its supply chain to avoid disruptions.
7. Strategic Planning: A comprehensive analysis of the business environment is essential for
effective strategic planning. For example, a tech company might analyze market trends to plan the
launch of a new innovative product that meets emerging consumer needs.
8. Identifying Opportunities: Recognizing changes in the business environment can help businesses
identify new opportunities for growth. For example, a rise in environmental awareness can lead a
company to develop eco-friendly products.
9. Gaining Competitive Advantage: Companies that understand their business environment can gain
a competitive edge. For example, by analyzing competitors’ strategies and market conditions, a
company can find ways to differentiate its offerings and attract more customers.
10. Helping Adaptation: Businesses need to adapt to changes in the environment to stay relevant. For
example, during the COVID-19 pandemic, many businesses shifted to online platforms to continue
operations and serve customers remotely.
11. Tracking Performance: Monitoring the business environment helps in evaluating the performance
of business strategies. For example, tracking customer feedback and market trends can help a
company assess the success of its marketing campaigns and make necessary adjustments.
12. Business Expansion : The environment analysis provides opportunities for expansion and
diversification of business activities. Because environment analysis helps to discover and exploit
such opportunities fully when the environment is favourable, new ideas, ventures and schemes may
be put into action.
13. Understand future problems : The study of business environment is needed in order to
understand future problems and prospects of business well in advance. This enables a business
enterprise to face problems boldly and also take the benefit of favourable business situation.
14. Facilitates Organising of Resources : Proper analysis of environment enables a firm to know the
demand potential in the market. Accordingly, the firm can plan and organize the right amount of
resources to handle the activities of the organization.
15. Flexibility in operations : A study of environment enables a firm to adjust its activities depending
upon the changing situation. For example, the environmental analysis may indicate that the nearest
competitor adopts flexible credit policy, depending upon the nature of customers. Therefore, the
business firm may also do the same to win the trust of the customer.
16. Optimum utilization of Resources : The study of business environment is needed as it ensures
optimum use of resources available with the business organization. Such study enables an
enterprise to take full benefits of policies framed by the government.
 17. Effective planning : A business organization should have short term as well as long-term plans.
Proper environmental analysis about the various environmental factors affecting the business
organizations helps such planning effectively.

Components of Business Enviroment

Unit 7 - Business Unit Promotion

Business unit promotion refers to all those activities relating to setting up and promotion of business units.

Stages of Business Unit Promotion: INITIATION

Idea Generation: Identifying and brainstorming potential business ideas.Coming up with an idea to
start a plant-based restaurant in your city.
Needs Assessment: Evaluating the market demand and target audience needs.Conducting
surveys to understand if there's a demand for plant-based dining options in your area.
Investment Planning: Determining the required capital and funding sources. Calculating the costs
to start the restaurant and seeking investments or loans.
Technical Feasibility: Assessing the technical requirements and resources needed.Ensuring you
have the necessary kitchen equipment and technology to run the restaurant efficiently.
Incorporation: Registering the business and completing legal formalities. Registering your
restaurant as a legal entity and obtaining all required licenses and permits.
Advertising and Marketing: Promoting the business to attract customers. Creating a marketing
campaign on social media to generate buzz before the grand opening.
Training and Development: Preparing the team with necessary skills and knowledge. Training
your staff on the menu, customer service, and food safety standards.
Implementation: Launching the business and starting operations. Opening the doors of your
restaurant to customers for the first time.
Operations Management: Overseeing daily activities and ensuring smooth functioning. Managing
inventory, supervising staff, and handling customer feedback on a daily basis.
Networking and Growth: Building connections and expanding the business. Partnering with local
suppliers and exploring opportunities to open additional locations.

Factors determining the location for setting up of business: TALENTS

Transportation Access: Proximity to major highways, airports, and public transportation.Choosing

a location near a major highway for a distribution center to ensure easy shipping and delivery.
Availability of Resources: Access to necessary raw materials, utilities, and services. Setting up a
factory near a river for water supply essential to the manufacturing process.
Labor Supply: Availability of a skilled and unskilled workforce. Opening a tech company in a city
with a strong presence of universities and tech talent.
Economic Incentives: Government grants, tax breaks, and subsidies available for businesses.
Locating in a special economic zone (SEZ) to benefit from lower taxes and financial incentives.
Neighborhood Demographics: Characteristics of the local population that match the target
market. Opening a high-end retail store in an affluent neighborhood with high disposable income.
Target Market Proximity: Being close to the primary customer base to reduce distribution costs.
Setting up a coffee shop in a busy downtown area where office workers are likely to visit.
Safety and Security: Ensuring the location is safe for employees and customers. Choosing an area
with low crime rates and good police presence for a retail store to ensure customer safety.

Unit 8 - Entrepreneurship
 Entrepreneurship and Entrepreneur are the two sides of the same coin. The entrepreneur is a
business leader and the function performed by him is entrepreneurship.
According to Robert Hisrich “Entrepreneurship is the process of creating something new and
assuming the risks and rewards”.
According to Peter P. Drucker “Entrepreneurship is neither a science nor an art. It is a practice. It
has a knowledge base. Knowledge in entrepreneurship is a means to an end; that is, by the practice”.

Characteristics of Entrepreneurship: LEADERSHIP

Leadership: The ability to guide and inspire others.

Execution: The capability to implement ideas and strategies effectively.
Adaptability: Flexibility in responding to changes and challenges.
Determination: Persistent effort and resilience to achieve goals.
Enthusiasm: Passion and zeal for the business and its vision.
Risk-taking: Willingness to take calculated risks to achieve success.
Strategic Thinking: Planning and decision-making with long-term goals in mind.
Hard Work: Commitment to putting in the necessary time and effort.
Innovation: Creating new ideas, products, or methods.
Problem-solving: The ability to find solutions to challenges and obstacles

Importance of Entrepreneurship: PROGRESS

Progress: Entrepreneurship drives societal and economic advancement by fostering innovation and
encouraging the development of new technologies and industries. This continuous progress helps improve
living standards and enhances the quality of life.
Resource Utilization: Entrepreneurs efficiently utilize available resources by transforming raw
materials and underutilized assets into valuable products and services. This optimization contributes to
economic efficiency and reduces waste.
Opportunity Creation: By establishing new businesses, entrepreneurs create jobs and
opportunities for individuals, which can reduce unemployment rates and stimulate local economies. This
creation of opportunities also encourages skill development and entrepreneurship among others.
Growth: Entrepreneurship stimulates economic growth by introducing new products and services,
opening new markets, and driving competition. This growth leads to increased productivity, higher GDP,
and overall economic development.
Risk Management: Entrepreneurs are adept at identifying and managing risks, often turning
challenges into opportunities. Their innovative approaches to risk management can lead to more resilient
and adaptable businesses and economies.
Empowerment: Entrepreneurship empowers individuals by providing them with the means to
pursue their ideas and create their own paths. It fosters a sense of ownership, responsibility, and
achievement, which can boost confidence and inspire others.
Sustainability: Many entrepreneurs prioritize sustainable practices, developing eco-friendly
products and services that address environmental concerns. This focus on sustainability helps ensure long-
term economic and environmental health.
Social Impact: Entrepreneurs often address societal issues through their ventures, creating
solutions that improve health, education, and overall well-being. Their efforts can lead to significant social
change and contribute to the betterment of communities.

Factors contributing to the growth of Entrepreneurship: INNOVATE

 Innovation: The development of new ideas, products, and services drives entrepreneurship by
creating new opportunities and markets. Entrepreneurs often thrive on bringing fresh and creative solutions
to the table, fostering a culture of continuous improvement.
Networking: Building and leveraging networks of contacts, mentors, investors, and customers is
crucial for entrepreneurial success. Strong networks provide support, advice, resources, and opportunities
for collaboration and growth.
Necessity: In some cases, entrepreneurship is driven by necessity, such as in times of economic
downturns or job scarcity. Individuals may start their own ventures to create employment for themselves
and others, leading to innovative solutions born out of urgent needs.
Opportunity Recognition: Successful entrepreneurs are adept at identifying gaps in the market
and seizing opportunities. This ability to spot unmet needs and trends is a key factor in launching and
growing a business.
Venture Capital: Access to funding and investment is a critical factor for entrepreneurial growth.
Venture capital provides the necessary financial resources for startups to develop, scale, and compete in
the market.
Access to Technology: The availability of advanced technology enables entrepreneurs to
innovate, streamline operations, and reach broader markets. Technological advancements lower barriers to
entry and open up new possibilities for business models.
Training and Education: Entrepreneurial success is often supported by access to education and
training programs that provide the necessary skills and knowledge. Formal education, workshops, and
mentorship programs help entrepreneurs build their capabilities.
Economic Policies: Supportive economic policies and a favorable business environment, including
tax incentives, grants, and reduced regulatory burdens, encourage entrepreneurship. Government
initiatives can stimulate business creation and growth.

Differences between an Entrepreneur and a Manager: PIONEERS

Purpose:
● Entrepreneur: Creates and initiates a business with a vision and innovative ideas.
● Manager: Manages and maintains the operations of an existing business.
Innovation:
● Entrepreneur: Focuses on creating new products, services, or business models.
● Manager: Focuses on optimizing and improving existing processes and systems.
Orientation:
● Entrepreneur: Future-oriented, looking for opportunities and growth potential.
● Manager: Present-oriented, concentrating on current operations and efficiency.
Nature of Risk:
● Entrepreneur: Willing to take high risks to achieve high rewards.
● Manager: Risk-averse, aiming to minimize risks and maintain stability.
Employee Relationship:
● Entrepreneur: Builds a team from scratch and fosters an entrepreneurial culture.
● Manager: Leads and motivates an established team within a structured environment.
Earnings:
● Entrepreneur: Earns profits based on the success of the business.
● Manager: Receives a fixed salary and may earn bonuses based on performance.
Responsibility:
● Entrepreneur: Responsible for the overall success and direction of the business.
● Manager: Responsible for specific functions or departments within the business.
Strategic Focus:
● Entrepreneur: Develops and implements strategies for business growth and expansion.
● Manager: Implements and executes strategies set by higher authorities.
Intrapreneur Description
An intrapreneur is an employee within a company who is given the freedom and resources to innovate and
develop new products, services, or processes. They operate like an entrepreneur but within the structure
and environment of an established organization. Intrapreneurs drive internal change and innovation,
leveraging the company's resources and capabilities.

Differences Between Entrepreneur and Intrapreneur: CREATORS

Let's use the word "CREATORS" to outline the differences between an entrepreneur and an intrapreneur:
1. Control:
○ Entrepreneur: Has full control over the business, including decision-making and direction.
○ Intrapreneur: Operates within the company's framework, with limited control over resources
and decisions.
2. Risk:
○ Entrepreneur: Bears personal financial risk and is responsible for the success or failure of
the venture.
○ Intrapreneur: Faces lower personal financial risk as they are backed by the company's
resources.
3. Earnings:
○ Entrepreneur: Profits directly from the success of the business they create.
○ Intrapreneur: Receives a salary and possibly bonuses or incentives based on innovation
and performance.
4. Autonomy:
○ Entrepreneur: Works independently, creating their own path and strategies.
○ Intrapreneur: Works within the company's structure, adhering to corporate policies and
culture.
5. Timing:
○ Entrepreneur: Determines their own timelines for projects and growth.
○ Intrapreneur: Works within the timelines set by the company, aligning with corporate goals.
6. Opportunity:
○ Entrepreneur: Seeks and exploits external market opportunities.
○ Intrapreneur: Identifies and leverages opportunities within the organization.
7. Resources:
○ Entrepreneur: Must secure their own resources, including funding, talent, and infrastructure.
○ Intrapreneur: Utilizes the company's existing resources and support systems.
8. Scope:
○ Entrepreneur: Focuses on building a new business from the ground up.
○ Intrapreneur: Concentrates on innovating and improving within the existing business.

Unit 9 - Aspects of Entrepreneurship

Types of Entrepreneurs:

A) According to Types of Business

1. Business Entrepreneurs:
○ Description: Business entrepreneurs conceive new ideas for products or services and
establish businesses to bring these ideas to life. They manage both production and
marketing aspects of their ventures.
○ Example: Jeff Bezos, who founded Amazon as an online bookstore and expanded it into a
global e-commerce giant offering a wide range of products.
2. Trading Entrepreneurs:
○ Description: Trading entrepreneurs focus solely on trading activities without involvement in
manufacturing. They identify markets, stimulate demand, and manage distribution channels
domestically or internationally.
 ○ Example: Alibaba's Jack Ma, who built an online marketplace connecting buyers and sellers
globally without manufacturing products but facilitating trade.
3. Industrial Entrepreneurs:
○ Description: Industrial entrepreneurs establish industrial units to produce new products or
services. They identify market needs and innovate to meet those needs effectively.
○ Example: Elon Musk, who founded Tesla to revolutionize the electric vehicle industry by
producing high-performance electric cars and sustainable energy solutions.
4. Corporate Entrepreneurs:
○ Description: Corporate entrepreneurs innovate within established corporations, initiating
new projects or ventures. They navigate corporate structures to introduce new products or
services.
○ Example: Google's Alphabet X (formerly Google X), which operates as a subsidiary of
Alphabet Inc., focuses on developing ambitious projects like Google Glass and self-driving
cars within a corporate framework.
5. Agricultural Entrepreneurs:
○ Description: Agricultural entrepreneurs engage in agricultural activities, leveraging
technology and modern methods to enhance productivity and efficiency in farming.
○ Example: Modern farmers using precision agriculture techniques, such as IoT devices and
data analytics, to optimize crop yields and reduce environmental impact.

B) According to Use of Technology

1. Technical Entrepreneurs:
○ Description: Technical entrepreneurs excel in technical skills and craftsmanship, focusing
on product development and innovation. They innovate in production processes to enhance
product quality.
○ Example: Steve Wozniak, who co-founded Apple and played a key role in designing the first
Apple computers, demonstrating technical prowess in hardware development.
2. Non-Technical Entrepreneurs:
○ Description: Non-technical entrepreneurs focus on marketing, distribution, and business
strategy rather than technical aspects. They innovate in market positioning and customer
engagement.
○ Example: Phil Knight, who founded Nike and focused on branding, marketing strategies,
and global distribution networks to build Nike into a leading sportswear brand.
3. Professional Entrepreneurs:
○ Description: Professional entrepreneurs establish businesses, sell them once established,
and use proceeds to start new ventures. They focus on creating and selling businesses
rather than long-term management.
○ Example: Richard Branson, who started numerous businesses under the Virgin Group
brand, including Virgin Records and Virgin Atlantic, and later diversified into various
industries.

C) According to Motivation

1. Pure Entrepreneurs:
○ Description: Pure entrepreneurs are primarily motivated by monetary rewards and profit.
They are driven by a desire for financial success and recognition.
○ Example: Mark Zuckerberg, who founded Facebook initially as a social networking platform
and grew it into a multibillion-dollar company driven by profit and market dominance.
2. Induced Entrepreneurs:
○ Description: Induced entrepreneurs are prompted to start businesses due to government
incentives, policy measures, or financial assistance aimed at promoting entrepreneurship.
 ○ Example: Entrepreneurs in countries offering tax breaks and grants for startups in specific
industries, encouraging them to launch ventures with government support.
3. Motivated Entrepreneurs:
○ Description: Motivated entrepreneurs are inspired by the desire for self-fulfillment and the
opportunity to innovate and market new products or services.
○ Example: James Dyson, who invented the bagless vacuum cleaner and founded Dyson
Ltd., driven by the challenge of improving household appliances through innovative design.
4. Spontaneous Entrepreneurs:
○ Description: Spontaneous entrepreneurs are naturally inclined to undertake entrepreneurial
activities due to their initiative, confidence, and belief in their abilities.
○ Example: Oprah Winfrey, who built a media empire starting from local TV to a global brand
encompassing television, publishing, and media, driven by her innate talent and
determination.

Entrepreneurship Training and Development Centers in India

1. District Industrial Centers (DICs) established in 8th May, 1978 are government-operated or
supported entities that serve as focal points for industrial development within specific districts or
regions. Their primary objective is to promote and facilitate industrial growth by providing a range of
services and support to entrepreneurs and businesses. Here's an explanation of their functions and
roles:
a. Identification and development of new entrepreneurs.
b. Conducts training programmes.
c. Offer technical advice to new entrepreneurs.
d. Conducts industrial potential surveys.
e. Evaluates the proposals received from entrepreneurs.
f. Assists entrepreneurs in marketing their products.
g. Assists export promotion of products.
h. Undertakes product development for small industries.

2. The Small Industries Development Organization (SIDO) was established in 1954. It focuses on
training entrepreneurs and conducts entrepreneurship development programs through Small
Industries Service Centers. SIDO also supports small industries by providing assistance in credit,
marketing, technology adoption, and infrastructure development.
a. Quality control and testing.
b. Training for entrepreneurship development.
c. Preparation of project and product profiles.
d. Technical and managerial consultancy.
e. Assistance for exports.
f. Pollution and energy audits.
g. Economic and market survey.

3. The Small Industries Service Institutes (SISIs) are field offices of SIDO, established in the early
1950s. They provide on-the-spot technical assistance and guidance to small-scale units, helping
them solve technical problems and adopt new production techniques. SISIs also advise small units
on the use of modern machinery and equipment. There are 28 SISIs spread across all states,
forming a network to support small industries effectively.
a. Technical advisory services.
b. Management consultancy services.
c. Economic advisory services.
d. Managerial services.
e. Marketing Entrepreneurial Development Programme.
 4. The Entrepreneurship Development Institute of India (EDII) was established in 1983 in
Ahmedabad to build the institutional framework for entrepreneurship development. Sponsored by
key financial institutions such as the Industrial Development Bank of India, the Industrial Finance
Corporation of India, the Industrial Credit and Investment Corporation of India, and the State Bank
of India, EDII focuses on entrepreneurship education, training, and research. It emphasizes
innovative training methods, expert faculty support, consultancy services, and high-quality teaching
and training materials to foster entrepreneurial skills and development.
5. National small Industries Corporation (NSIC) was established in February 1955 to promote the
growth of small scale industries and industry - related small scale services in the country. The main
functions of the corporation are -
a. Higher purchase of machinery
b. Marketing.
c. Industrial Estates.
d. Exhibitions.
e. Production cum training.
6. National Institute for Entrepreneurship and Small Business Development (NIESBUD) located
at Ahmedabad was set up in 1983 for co-ordinating activities related to entrepreneurship and small
business development. The following are the major activities of the NIESBUD.
a. Developing model syllabus for training.
b. Facilitating and supporting central and state governments.
c. Conducting programmes.
d. Helps other entrepreneurs develop.
7. The Centre for Entrepreneurship Education and Development (CEED) was launched in
December 1995 as an innovation center focused on assisting governments, organizations, and
communities in promoting entrepreneurship. Its mission is to help individuals reach their potential by
fostering entrepreneurial skills and initiatives. The following are the services of CEED.
a. Technical assistance.
b. Entrepreneurship consulting.
c. Entrepreneurship training courses.
d. Micro-finance systems.
e. Resources publications.
f. National Institute of Small Industry Extension Training (NISIET).
g. Federation of Indian chamber of commerce and industry (FICCI).
h. Rural Entrepreneurship Development Institute (REDI).

Challenges / Problems faced by women entrepreneurs: CHALLENGES

Cultural Constraints:
● Cultural norms and societal expectations often limit women's access to resources, networks, and
opportunities for entrepreneurship.
Hurdles in Financing:
● Difficulty in accessing adequate financial resources, including loans and venture capital, due to
gender biases and lack of collateral.
Access to Markets:
● Challenges in accessing markets and distribution channels, particularly in male-dominated sectors
or traditional industries.
Limited Support Networks:
● Insufficient support networks and mentorship opportunities tailored to women entrepreneurs,
hindering their professional growth and business success.
Limited Mobility:
● The women entrepreneurs have limited mobility as compared to male entrepreneurs. Business
women need a good deal of traveling for conferences, meetings, negotiations, etc. However, the
attitude towards women is a bit reserved in India.
Economic Empowerment:
 ● Economic empowerment barriers, including unequal pay and limited access to business training and
skill development programs.
Navigating Legal Frameworks:
● Complexity and ambiguity in legal and regulatory frameworks, affecting business registration,
licensing, and compliance for women entrepreneurs.
Gender Bias:
● Gender discrimination and bias in business dealings, negotiations, and interactions with
stakeholders and investors.
Education and Training Gaps:
● Disparities in access to quality education and vocational training programs that equip women with
necessary entrepreneurial skills.
Stereotypes and Stigma:
● Social stereotypes and stigma associated with women in leadership roles and entrepreneurship,
affecting credibility and business opportunities.

Promotion of women entrepreneurs: PROMOT MAVIM SEWA

Prime Minister's Employment Generation Programme (PMEGP): This scheme aims to generate
employment opportunities in rural as well as urban areas by providing financial assistance for setting up
micro-enterprises.
Rashtriya Mahila Kosh (RMK): RMK provides micro-credit to poor women for various livelihood
activities, encouraging entrepreneurship among women from marginalized sections of society.
Oriented Self Employment Scheme for Women (NOS-SESW): This scheme provides training
and financial assistance to women entrepreneurs for setting up and running viable businesses.
Mahila Coir Yojana (MCY): MCY promotes the use of coir as a sustainable material in various
industries, offering support to women engaged in coir-related businesses.
Other Ministry of Micro, Small and Medium Enterprises (MoMSME): This ministry offers various
schemes and programs aimed at empowering women entrepreneurs in the micro, small, and medium
enterprise sector.
TREAD Scheme (TREAD): The Trade-Related Entrepreneurship Assistance and Development
(TREAD) scheme supports women entrepreneurs by providing training, counseling, and financial
assistance for starting businesses in non-farm sectors.
Mahila Arthik Vikas Mahamandal (MAVIM) : focuses on enhancing the economic and personal
development of underprivileged women in Maharashtra. It provides essential training and employment
opportunities to enable women to achieve self-sufficiency. MAVIM serves as a pivotal institution for the
economic advancement of women, dedicating all its activities to making women economically empowered
and independent. The corporation actively seeks out self-employment and group industry opportunities for
women, aiming to strengthen their economic standing. MAVIM plays a leading role in establishing women's
institutes throughout Maharashtra, fostering a robust organizational framework dedicated to women's
empowerment across the state.
Self - Employed Women Association (SEWA) : registered in 1972. Main objective of SEWA is to
organize women workers for full employment where by workers can obtain job security, income security,
food security and social security. SEWA is both an organization and a movement. It is a combination of
three movements labor movement, co-operative movement and women’s movement.