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its about entrepreneurship

1. ENTREPRENEURSHIP DEVELOPMENT

2. EVOLUTION OF ENTREPRENTEURSHIP Entrepreneurship is one of the four mainstream economic factors- land, labor, capital, and entrepreneurship. During the 14 th century, references speak about tax contractors individuals who paid a fixed sum of money to the government for the license to collect taxes in their region. Known as tax contractors they used to take the risk of collecting taxes. If they collected more the than sum paid for their license, they made profits and kept the excess. The concept of entrepreneurship of was existing in the 17 th century and was a common topic in economic essays for much of the 18 th and 19 th centuries.

3. JOHN KAO’S MODEL OF ENTREPRENEURSHIP

4. JOHN KAO’S MODEL OF ENTREPRENEURSHIP Entrepreneurial Personality: The overall success of a new venture largely depends upon the skill, qualities, traits, and determination of the entrepreneur. Entrepreneurial Task: It is a role played by an entrepreneur in an enterprise. The major task of the entrepreneur is to recognize and exploit opportunities. Entrepreneurial Environment: It involves the availability of resources, infrastructure, competitive pressures, social values, rules and regulations, stage of technology, etc. Organizational Context: It is the immediate setting in which creative and entrepreneurial work takes place. It involves the structure, rules, policies, culture, human resource system, and communication system.  Entrepreneurial Environment: It involves the availability of resources, infrastructure, competitive pressures, social values, rules and regulations, stage of technology etc. Entrepreneurial Environment: It involves the availability of resources, infrastructure, competitive pressures, social values, rules and regulations, stage of technology etc.

5. Steps of the idea generation process Step 1 – Gather raw materials In the advertising world, it is the agency’s job to know the client, its products and, most importantly, its customers. Yet most agency people stop too soon in the process of gathering information. If enough research exists, differences between products and consumers appear, leading to relationship individualities that may lead to an idea. In advertising, an idea results from a new combination of specific knowledge about products and people with a general knowledge about life and events. A practical step is to write information down and save it in a systematic way on your computer. Classify and organize information as you gather it. This helps prepare your mind for the idea-producing process.

6. Steps of the idea generation process Step 2 –  Blend your information together The second step, after thorough raw material gathering, is to blend the information together—bringing facts together to see how they fit. Bits of ideas may begin to appear; this can be mentally exhausting but press on and think of it as putting a puzzle together. Step 3 – Drop and forget it Drop the idea completely and turn it over to your unconscious mind: In other words, let it develop while you sleep. Also, do things that you enjoy that stimulate your mind and emotions. Listen to music; go to the movie or theater; read poetry; or get outside your normal routine.

7. Steps of the idea generation process Step 4 – Have your eureka moment If you’ve really done your work during the first three steps, then the fourth happens naturally. Perhaps you’ve experienced this: a “Eureka” or “I’ve got it” moment. You wake up with a great idea or you are taking a shower or driving to work and the idea appears with clarity. Write it down or commit it to memory. Step 5 - Share your idea This is when reality hits. Your bright, shiny idea may lose some of its luster once others are made aware of it. However, the refining and tuning process that happens when you share your ideas with the team can offer enlightening perspective—and generate something better. It’s important not to hold your idea too tightly: allow it to go through a critical-thinking process. If it’s a good idea, you will see that it has self-expanding qualities, and with this, possibilities you did not think of may come to light. This five-step process, as simple as it seems, will allow you to continue down the path of producing relevant and dramatic ideas for your business. However, Young’s method of idea generation is not the only approach.

8. Identification and Evaluation of the Opportunity Opportunity identification and evaluation  is a most difficult task. Entrepreneurship does not always begin with the creative concept for a new product, service, or process. It often begins with the entrepreneur’s alertness to identify an opportunity. Whether the opportunity is identified by using input from consumers, business associates, channel members, or technical experts, the entrepreneur needs to carefully screen and evaluate each opportunity. This evaluation of the opportunity is perhaps the most critical element of the entrepreneurial process as it assesses whether the specific product or service has the needed returns compared to the required resources. Offering a better product, service, ...

9. 14 steps to building a successful and effective team Set organization goals and start planning  Define the roles within your team Maximize the skills of your team member Embrace diversity Set expectations from day one Allow your team to take risks and experiment Celebrate successes and failures Promote individual development Avoid micromanagement Motivate your team with positivity Establish strong leadership Create a team culture Foster connections within the team Communicate frequently and effectively

10. Business Strategic Planning Business strategic planning is the process of creating a business strategy and an accompanying business strategic plan to implement a company’s vision and achieve its goals over time. The main goal of strategic planning is to take a company from its current state to its desired state through a series of business actions. The business strategic planning process usually consists of defining business goals, doing a SWOT analysis to assess the company’s business environment, and developing a business strategy. The leadership team is in charge of business strategic planning, as it has a very important impact on the overall direction of a company

11. The Strategic Planning Process in 3 Steps 1. Set Business Goals A business goal is simply an accomplishment that a company wants to achieve in the short, medium or long term. Business goals can take many forms such as increasing sales, revenue, customer satisfaction levels and brand positioning, among many other things. 2. Conduct a SWOT Analysis The goal of a business strategy is to leverage the strengths of a business and minimize the impact of its weaknesses. Those two things are internal factors. The strengths of a company can become competitive advantages that can lead to business growth. There are many types of business strengths and weaknesses such as scale, speed, or R&D, just to name a few. Threats and opportunities refer to external factors such as competitors or an untapped market. A successful business strategy considers all of these factors to define how a product or service will be created, marketed and sold, and a  SWOT analysis  is a great starting point. 3. Develop a Business Strategy & Strategic Plan Once you’ve completed your SWOT analysis, you can create a business strategy that’s designed to help position your company in the market. Your business strategy guides how you produce, market and sell your product or service based on internal and external analysis. Then, you’ll need a strategic plan to explain how you plan to execute that business strategy.

12. Common types of ownership Sole proprietorship A sole proprietorship occurs when someone does business activities but doesn’t register as another kind of business. There is no separate business entity, meaning there is no distinction between the business owner’s personal and professional  assets  and liabilities. Sole proprietorships are simple, easy to start, and one of the most common types of business ownership. They are a good option for someone starting a low-risk business on a trial basis. Also, no additional taxation! However, because there is no formal separation, the business owner will become personally liable for any obligation the business might have.

13. Partnership Similar to sole proprietorships, a partnership is the simplest type of business ownership when two or more people are involved. There are two kinds: limited partnerships and limited liability partnerships. A limited partnership has one partner with unlimited liability while everyone else involved has limited liability. With limited liability, comes limited control. Since being a partner with limited liability is less of a risk, they get less say in decision-making processes. Liability : being responsible for something by law Limited liability : a person’s liability is limited to a fixed sum, which usually reflects their investment in the business Unlimited liability : there is no limit to the liability and the owners take full responsibility for the companies’ debts

14. Limited liability company  Not to be confused with a limited liability  partnership , a limited liability  company  (LLC) separates the owner’s personal and professional assets. Meaning if your business gets hit with a lawsuit or goes bankrupt, your house, car, and personal piggy bank are safe. Similar to sole proprietorships and partnerships, LLCs do not pay additional federal income taxes or those associated with being a corporation. However, depending on their location, they might be subject to other state taxes. Also, LLCs fall under the category of self-employment, so those taxes fall on them as well. An LLC is a good choice for a business owner willing to take a little bit of a bigger risk or one looking to protect their personal assets.

15.  Corporations There are actually a few separate types of corporations, and each one has something that makes it a little different. C corporation A C corporation, or just a regular corporation, is its own entity kept separate from its owners. This means they offer the most protection in terms of personal liability. Corporations have an advantage when it comes to funding:  stock . A stock is a partial share in a company, so when people buy stock, they are essentially buying ownership and decision-making responsibilities. However, starting a corporation costs more than any other business structure. Not only are they legally required to do keep more records and release more reports, but they also pay income tax. In some cases, there is even double taxation - once on profits, and then again on the  dividends  distributed to stockholders.

16. S Corporation An S corporation, or S corp , is a type of corporation that is meant to avoid the double taxation that hits normal C corporations. To become an S corp and avoid that taxation, you file a special election. Once the business is officially an S corp , it is no longer taxed on profits. Instead, all profits, and losses, are passed on to the stockholders. However, this is not possible everywhere. There are certain states that tax above a certain limit and some just tax them like a C corp.

17. B corporation Benefit corporations, or B corps, have missions similar to non-profit organizations, but they are, in fact, for-profit corporations. Their stakeholders have the goal of providing a public benefit, but they also want to see a profit. Certain state governments also want to see that public benefit; some require B corps to submit benefit reports that prove they are contributing to the good of the public. Close corporation A close corporation resembles the structure of a B corp. A lot of the rules associated with smaller companies also apply to close corporations. With other types of corporations, anyone can own stock. If there is stock available and they have the money, it’s theirs. This is where close corporations differ: the stocks are owned by people that are closely related to the business.

18. Nonprofit Corporation Nonprofit corporations work in charity, education, religion, literature, or science. Because they exist to serve the common good, nonprofit corporations do not pay any state or federal taxes on their income. To obtain this tax-exempt status, nonprofit corporations must register with their state, follow similar rules to standard C corporations, and all money must go back into the organization. In other words, profits can’t be distributed to the members of the organization. This does not mean nonprofits do not pay their employees.

19. Cooperative A cooperative is a private business owned and operated by the same people that use its products and or services. The purpose of a cooperative is to fulfill the needs of the people running it. The profits are distributed among the people working within the cooperative, also known as user-owners. There is typically an elected board that runs the cooperative, and members can buy shares to be apart of decision-making processes

20. Franchising – Definition, Advantages, and Disadvantages Definition of Franchising Franchising is a contractual relationship between a licensor (franchisor) and a licensee (franchisee) that allows the business owner to use the licensor's brand and method of doing business to distribute products or services to consumers. Franchising is the arrangement between two parties where the first party (the franchiser) grants the second party (the franchisee) the right to utilize its business processes, produce and market a service or goods or simply use its trademark. The franchiser collects a one-time payable franchise fee and a percentage of sales from the franchisee.

21. Advantages of Franchising Access to Better Talent By franchising your business, you are attracting hard-working people to grow and expand your brand in a number of locations. Talented people choose to take up their own businesses and gain incentives rather than work under a strict payroll as an employee. Easy Expansion of Capital A franchise agreement mandates that the franchisee invests the capital. Therefore, you increase the capital under your business without requiring loans from investors or banks. Minimized Growth Risk Opening an outlet under the franchise model requires little risk from the franchiser. With a low investment, you can target a large number of areas and earn high royalties. The percentage of return is much higher than opening company-owned outlets.

22. Disadvantages of Franchising Less Control Over Managers You cannot have complete hold over the operations of the outlet. The franchisee will run the business as an independent model with different goals. Conflicts between the parties can lead to legal trouble. For example, a franchiser collects a percentage of sales as a royalty. The franchisee earns via profits generated in the outlets. A franchiser may issue promotional coupons to boost sales. However, coupons may boost sales but not boost profits. Thus, the franchisee may object to it. A Weaker Core Community Franchisees try to gather profits from each other’s efforts in generating business. It isn’t easy to get franchisees to work together compared to hired store managers under one brand name. For example, a franchisee may try to avoid investing towards advertisement expenses as he may take for granted that the other franchisees will do it anyway. He may rely on their expenses for his growth and profits. This may lead to no advertisement at all for the brand name. Innovation Challenges Introducing a new idea or concept may prove to be a challenge in the franchise framework. You will have to negotiate with your franchisees and convince them to accept the new introduction instead of your own outlets where you simply put the new idea to use.

23. TYPES OF FRANCHISE ARRANGEMENTS SINGLE-UNIT FRANCHISE Single Unit Franchise (or Direct Unit Franchise) is the most traditional and historically the most common form of franchising. Franchisor grants to an entity (the franchisee) the right and obligation to establish and operate one franchise. The franchisees have to invest their own capital and apply their own management skills (generally hands-on). MULTI UNIT FRANCHISE Franchisor grants to an entity (the multi-unit franchisee) the right and the obligation to establish and operate more than one franchised unit. The multi-unit franchisee agrees up front to open a specific number of locations during a defined period of time. The multi-unit franchisee must have the financial and managerial capability to develop multiple units itself.

24. TYPES OF FRANCHISE ARRANGEMENTS AREA DEVELOPMENT FRANCHISE This type of franchising arrangement is similar to the multi-unit franchise- the franchisor grants to an entity (the area developer) the right and the obligation to establish and operate more than one franchised unit. The area developer agrees up front to open a specific number of locations during a defined period of time  within a defined area. MASTER FRANCHISE Franchisor grants the right to an entity (the master franchisee) for a specific country, region or continent, empowering the master franchisee to provide the full range of products and services of the franchisor through sub-franchising, in just the same way that the franchisor runs its own business. The master franchisee, in addition to having the right and obligation to open and operate a number of locations in a designated area, also has the right (and sometimes- obligation) to recruit other franchisees. In effect, the master franchisee becomes sort of a franchisor to those franchisees who join the system through its master franchise.

25. franchise evaluation checklist Find a franchise that fits you Owning a franchise is a long-term commitment. Hence ask yourself what interests you, what you are good at, your goals, your prior experience. How much time can you commit? Are you comfortable managing employees?  Is owning and operating the franchise going to give you the lifestyle you want?  Imagine what a regular day operating this business will look like. Research about franchisors Obtain direct information or research online . What is their reputation? Do they have any lawsuits or disputes? If the franchisor is publicly held, annual financial statements are published by the Securities and Exchange Commission. The more information you have, the easier it will be to  pick the right franchisor for you . You can also write down a  list of questions for your franchisor before you decide to buy .

26. franchise evaluation checklist Find a franchise that suits your budget Franchisors usually disclose their financial requirements to potential investors. However, start-up payments required can vary significantly from franchise to franchise. Obtain franchisee feedback Talk to the existing franchisee and get their feedback on the support they are receiving from the franchisor. Do they have sufficient training and marketing assistance from the franchisor? Will they be willing to franchise again with the same franchisor?

27. franchise evaluation checklist Examine the Uniform Franchise Offering Circular (UFOC) Many franchisors are reluctant to share this document until the interested investor has applied for the franchise, had his or her background and finances investigated, and interviewed with the franchisor. The UFOC contains a wealth of information that allows potential franchisees and their CPAs or attorneys to evaluate the franchise.  It includes information about audited financial statements, franchise fees and start-up payments required, information regarding any litigation involving the franchisor, required franchise agreement, and any other contracts the franchisee has to sign.  It also includes the franchisor’s claims regarding the earnings of its franchises.  Make sure you receive enough information to evaluate earnings.  Ask for information on the results of franchises in the same geographical area.  If the franchisor is reluctant to provide the information needed for a good evaluation, it’s a red flag.  Federal law requires that franchisors allow at least 10 days for the potential franchisee to review the UFOC.

28. MICRO, SMALL, AND MEDIUM ENTERPRISES(MSME) Micro, Small, Medium Enterprises (MSME’s) are entities that are involved in production, manufacturing and processing of goods and commodities. The concept of MSME was first introduced by the government of India through the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 . Classification of MSME’s Size of the Enterprise Investment and Annual Turnover Micro Investment less than Rs. 1 crore Turnover less than Rs. 5 crore Small Investment less than Rs. 10 crore Turnover up to Rs. 50 crore Medium Investment less than Rs. 20 crore Turnover up to Rs. 100 crore

29. LEGAL REQUIREMENTS IN SETTING UP Legal Framework The conceptual and legal framework for small scale and ancillary industrial undertakings is derived from the Industries Development and Regulation Act, 1951. The Small and Medium Enterprises Development Bill 2005 which was enacted in June 2006 was renamed as “Micro, Small & Medium Enterprises Development Act, 2006” aims at facilitating the promotion and development of small and medium enterprises. MSMEs are governed by Micro, Small & Medium Enterprises Development Act, 2006

30. Salient Feature of the Act Setting up a National Board for MSMEs Classification of Enterprises Advisory committees to support MSMEs Measures for promotion development and enhancement of MSMEs Schemes to control delayed payments to MSMEs Enactment of rules by State Governments to implement the MSME Act, 2006 in their respective states. Thus broadly MSMEs are classified into two categories: Manufacturing Enterprises: The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and Regulation) Act, 1951)9or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use.

31. b) Service Enterprises: The enterprises engaged in providing or rendering service. Section 2(e) of the Act ” enterprise” means an industrial undertaking or business concern or any other establishment, by whatever name called, engaged in the manufacture or production of goods, in any manner, pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 or engaged in providing or the rendering of any service or services.

32. Classification of Enterprises For Manufacturing Enterprises investment in plant and machinery Micro Enterprises investment in plant and machinery or equipment: not more than INR 10cr and Annual Turnover, not more than INR 5cr Small Enterprises investment in P & M: not more than INR 10cr and annual turnover, not more than INR 50cr Medium Enterprises investment in P & M: not more than INR 50cr and annual turnover, not more than INR 250cr For Service Providers investment in plant and machinery Micro Enterprises Does not exceed Rs. 10 lacs Small Enterprises More than Rs. 10 lacs but does not exceed Rs. 2 crore Medium Enterprises More than Rs. 2 Core but does not exceed Rs. 5 crore

33. Governmental Policies for SMEs 1. Atal Incubation Centre (AIC) Atal Incubation Centre is a funding scheme that Started in the year 2016. Envisioned by the NITI Aayog, this aims at supporting entrepreneurs by covering their operating costs of capital. The approved business ventures can avail up to Rs. 10 crores over a five-year term. Atal Incubation Centre allows researchers, students, and startup owners to apply for the scheme across different verticals and sectors. The entrepreneurs can set their company as a Public-private partnership, Public organization, or as a completely private organization. The entrepreneur needs to set up space of around 10,000 sq. ft. and should set up the physical infrastructure within six months of the disbursement of financial assistance. 2. MSME Business Loans in 59 Minutes Right now, the MSME Business Loans in 59 Minutes is undoubtedly the most discussed business loan scheme. This program was introduced in the year 2018 by the Government of India. This scheme is introduced to provide financial assistance to micro, small, and medium enterprises. The entrepreneurs can avail of loans of up to one crore under this scheme. This scheme is very quick and, within 59 minutes, you will know about your eligibility. Disbursement of the financial assistance happens within 1-2 weeks. A majority of the public sector banks are a part of this scheme

34. Governmental Policies for SMEs 3. National Small Industries Corporation Subsidy NSIC subsidy offers two forms of financial benefits for small businesses: Raw Material Assistance and Marketing Assistance. Raw Material Assistance helps to purchase raw materials from abroad and from India. Marketing Assistance, on the other hand, helps to improve the sales of products and services with an efficient marketing process. The program is introduced to provide loans to SMEs who are looking for growth or rapid expansion. 4. MSME Market Development Program This development program is designed to provide market expansion assistance to micro, small, and medium enterprises using international events, trade fairs, and roadshows. This system helps in the growth of the business by providing them assistance in terms of expansion into international markets. Any startup organization registered under District Industries Centre can apply for this program under which the to and fro traveling expenses will be borne by the government for participating in international exhibitions. Not only that, it bears half of the accommodation charges and ¾ the amount of the participation charges.

35. Governmental Policies for SMEs 5. MUDRA Loans The Government of India initiates MUDRA loans for providing business finance for micro-business units. This program was launched with the single motive of ‘paying the unfunded’. Since most of the time, the small-medium enterprises suffer from lack of funds, the government launches this program to encourage participation and growth of the startups across different sectors like trading, manufacturing, services, etc. 6. Swarojgar Credit Card Swarojgar Credit Card was initiated to provide loans to small-time businessmen like fishers, homemakers, travel operators, shopkeepers, etc. Under this scheme, the small-time business owners can take a loan of Rs. 25000 in terms of credit card facilities. A passbook is also provided to keep track of the financial transactions. The card will be valid for five years and can be renewed upon satisfactory results from the initial investments. 7. Coir Udyami Yojana The primary objective of this scheme is to build coir units throughout India. This Coir Board oversees this system which provides financial assistance up to Rs. 10 lakh to eligible units. However, the credit term should not exceed one-quarter of the project value. Individual entrepreneurs, joint ventures, private institutions, the public-private enterprises can avail of benefits under this scheme.

36. Governmental Policies for SMEs 8. Refinancing by NABARD This program launched by NABARD focuses on providing refinancing to lending institutions in agricultural areas. This aims to provide growth to rural enterprises based in diverse areas. Various handicraft manufacturing industries, rural institutions, and agricultural setups have taken part in this scheme and made rapid growth. 9. The Women Entrepreneurship Platform The Government of India introduced the Woman Entrepreneurship Platform to promote women’s entrepreneurship. The NITI Aayog is the primary driver behind this program and aims to boost the morale of young and dynamic women entrepreneurs. This scheme has got three divisions: Gyaan , Iccha , and Karma Shakti. Iccha Shakti aims to empower women to start a company. Gyaan Shakti offers a favorable environment for setting up a business. 10. Stree Shakti Package The Stree Shakti Package is provided in India by most branches of the State Bank of India (SBI) and focuses on providing women in business with a business loan. The biggest benefit of this startup business loan for women is that loans up to Rs. 5 lakh need no protection. In addition, some concessions are made by the bank, such as having a reduced interest rate in the event of the loan exceeds Rs. 2 lakh. But the main downside of this loan is that it is only open to women who hold a 51% or greater share in the business.