About the author I-5 Preface to Second Edition I-7 Syllabus - B. Com [H] I-9 Syllabus - B.Com [P] I-11 Acknowledgements I-25

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1 Contents About the author I-5 Preface to Second Edition I-7 Syllabus - B. Com [H] I-9 Syllabus - B.Com [P] I-11 Acknowledgements I-25 Unit I Introduction 1 Meaning, elements, determinants and importance of entrepreneurship and creative, behaviour, Entrepreneurship and creative response TO the society problems and at work 1.1 Understanding an Entrepreneur Meaning & Definitions History of the term Entrepreneur Characteristics/Qualities of an Entrepreneur Risk bearing of entrepreneur Functions of an entrepreneur Different type of entrepreneurial risks Methods to control business risks Techniques and safety programmes for managing risks Shifting of risks by entrepreneur Entrepreneurs - Myths Surrounding the Term and Realities Late starters & Early starter Entrepreneurs 18 I-13 16

2 CONTENTS I Difference between corporate manager and entrepreneur Types of Entrepreneurs Entrepreneurship Meaning, nature & concept of entrepreneurship History of Entrepreneurship, world over History of Entrepreneurship in India Functions of Entrepreneurship Other functions of Entrepreneurship Process involved in Entrepreneurship Social Entrepreneurship Meaning & concept of a social entrepreneur Meaning of social entrepreneurship Commercial Entrepreneurship - Concept Characteristics of Commercial Entrepreneurship Comparison between Social and Commercial Entrepreneurship Entrepreneurship and Creative Behaviour Attributes of a Creative Entrepreneur Role of Creativity and Innovation in Entrepreneurial Process Factors that Promote Creativity and Innovation Need for Creativity and Innovation Various creativity stage Entrepreneurship & Creative Response to the Society s Problems and at Work Significant characteristics/uses of creativity Examples of noted persons/companies which gave creative 39 products/services to the society Need for creative response to the society s problems and 40 at work Principles of creativity in responding to society s demands 41 2 Dimensions of entrepreneurship: intrapreneurship, technopreneurship, cultural entrepreneurship, INTERNATIONAL entrepreneurship, netpreneurship, ecopreneurship, and social entrepreneurship, and Idea entrepreneurship 2.1 Dimensions of Entrepreneurship 46

3 I-15 CONTENTS 2.2 Intrapreneurship - Meaning and Concept & Definitions Definitions of intrapreneur History of the term intrapreneur Types of intrapreneurs Companies that Encourage Intrapreneurs Entrepreneur vs. Intrapreneur Technopreneurship History of Technopreneurship Technopreneurship - Meaning & definitions Characteristics of a Technoprenuer Entrepreneurial Process and the Technopreneurial Process Technopreneurship concept vs. Entrepreneurship concept Cultural Entrepreneurship Definitions of cultural Entrepreneurship Cultural entrepreneurship in India Cultural Entrepreneur Definitions of cultural entrepreneurs Cultural Entrepreneurship vs. normal Entrepreneurship International Entrepreneurship Significance of International Entrepreneurship for the 62 Entrepreneur Significance of International Entrepreneurship to the firm Difficulties in international entrepreneurship Methods of carrying out International Entrepreneurship Pre-requisites for a successful International Entrepreneurship Difference between international and domestic entrepreneurship International Entrepreneurship Versus Entrepreneurship Netpreneurship Distinguishing Characteristics of Netpreneurship Essential requirements for a successful Netpreneur Uses of net working sites for the Netpreneur 72

4 CONTENTS I Pre-requisites for Social Media Marketing Different Social Media Marketing platforms Advantages of Netpreneurship Disadvantages of Netpreneurship Netpreneurship vs. Entrepreneurship Ecopreneurship Meaning & Definitions Principles of Ecopreneurship Characteristics of an Ecopreneur Reasons for growth of Ecopreneur Ecopreneurship vs. Entrepreneurship Social Entrepreneurship History of Social Entrepreneurship Definitions of social entrepreneurship Characteristics of social entrepreneurship Role of social entrepreneurship Types of social entrepreneurships Social Entrepreneurship vs. entrepreneurship Idea Entrepreneur Characteristics of Idea Entrepreneurs Concept of Transpreneurship Opportunistic Entrepreneurship Acquisitive Entrepreneurship Incubative Entrepreneurship Scalable startup entrepreneurship 89 Unit II TYPES OF BUSINESS ENTITIES 3 Entrepreneurship - Micro, Small and Medium Enterprises. Concept of business groups and role of business houses and Family Business in India Business Enterprise - Meaning, concept and nature Definitions of Business Enterprises 98

5 I-17 CONTENTS Features/characteristics of Business enterprises Need for Ethical considerations in business enterprises Business enterprises must be ethical towards the following partners Micro Small & Medium Enterprises (MSMEs) Classification of MSMEs Benefits available to MSMEs Challenges faced by MSMEs Opportunities for MSMEs Procedure to be followed to be classified as a MSME Implication of exceeding the limits prescribed for classification 109 MSME Sectors specifically reserved for MSME Measures taken by government to boost MSMEs Concept of Business Groups Business groups or group companies Legal independence Advantages of group business Disadvantages of Group business Examples of Business Groups in India Role of Business Houses & Family Business in India Stages in its development of Family Business Role of Family Business in Managing Challenges before the Family Business Business Families on Forbes List of Richest Asian Dynasties The contemporary role models in Indian business: their values, business philosophy and BEHAVIOURAL orientations. Conflict in FAMILy business and its resolution 4.1 Contemporary Role Models in Indian Business Women Entrepreneurs in India Dalit Entrepreneurs in India Role Models in the Startup Domain 138

6 CONTENTS I Values Generally followed by Ethical Business Entrepreneur Business Philosophies - Meaning Purpose of Corporate Philosophy Modes of Creating a Corporate Philosophy Benefits of Corporate Philosophy Formulation of a Business Philosophy Communicating the Business Philosophy Business Philosophies, adopted by famous and successful entrepreneurs 4.10 General Behavioural Orientations of Role Models of Business Reasons for Conflict in Family Business Methods to Resolve the Conflicts 152 Unit Iii Entrepreneurial Sustainability 5 Public and private system of stimulation, support and SUSTAINABILITy of entrepreneurship, Requirement, AVAILABILITy and access to finance, marketing ASSISTANCE, technology, and industrial accommodation 5.1 Support System for Entrepreneurs Entrepreneurship development/training institutes Levels of institutional support (a) Central Government institutions (i) Small Scale Industries Board (SSIB) (ii) National Bank for Agriculture and Rural Development (NABARD) (iii) Small Industries Development Organisation (SIDO) (iv) National Small Industries Corporation (NSIC) (v) Small Industries Development Bank of India (SIDBI) (vi) National Board for Micro, Small and Medium Enterprises (NBMSME) (vii) Khadi and Village Industries Commission (KVIC) 164

7 I-19 CONTENTS (viii) Mahatma Gandhi Institute for Rural Industrialisation 165 (MGIRI) (ix) Coir Board (x) National Institute for Small Industry Extension Training (NISIET) (b) State Government Institutions (i) State Financial Corporation (SFC) (ii) State Small Industries Development Corporation 167 (SSIDC) (iii) Technical Consultancy Organisations (TCOs) (iv) Khadi and Village Industries Commission (KVIC) (c) Non-Government Institutions (i) Indian Council of Small Industries (ICSI) (ii) Laghu Udyog Bharti (LUB) (iii) India SME Technology Services Ltd (iv) Credit Guarantee Fund Trust for Micro and Small 169 Industries (v) Federation of Associations of Small Industries of 169 India (FASII) (vi) World Association of Small And Medium Enterprises 170 (WASME) (vii) Federation of Indian Chambers of Commerce and 170 Industry (FICCI) (viii) Small and Medium Business Development Chamber 170 of India (SME Chamber of India) (ix) Associated Chambers of Commerce and Industry of 171 India (ASSOCHAM) (x) Confederation of Indian Industry (CII) (xi) Federation of Indian Exporters Organisation (FIEO) (xii) Rural Small Business Development Centre (RSBDC) (xiii) Entrepreneurship Development Institute of India 172 (EDI) (xiv) Indian Investment Centre (IIC) /6 (d) District Industries Centres (DIC) & Industrial Estates /6.1 Objectives of District Industries Centres (DIC) 176

8 CONTENTS I /6.2 Functions of DICs /6.3 The important functions of DICS are discussed as follow Concept & relevance of Finance for the Entrepreneur Steps in managing finance Objectives of Financial Planning for the entrepreneur Financial Policies of the entrepreneur Factors influencing financial planning for an entrepreneur Estimation of Capital Requirements Financial Support by Ministries/Departments/Organizations National Level Financial Institutions State Financial Corporations Offering Specialized SSI Schemes Government and Bank Schemes for Women Entrepreneurs Government Schemes for women entrepreneurs Bank schemes for women entrepreneurs Special Economic Zones (SEZs) Objectives of the SEZs Various sops to SEZs Benefits of SEZ policy Disadvantages of SEZ A glance at the various types of SEZs, objective, activities & Markets Marketing Assistance to Entrepreneurs Types of markets available to an entrepreneur Marketing for entrepreneurs Steps in Marketing of the product by a new Entrepreneur Agencies that provide marketing assistance Technology & Industrial Accommodation Technology - Meaning & Concept Need for technology for entrepreneurs Role of Technology in entrepreneurship Technology management for entrepreneurs (TM) Technology life cycle 200

9 I-21 CONTENTS 6 Role of Industries/Entrepreneur s Associations and Self-help Groups, the concept, role and functions of Business Incubators, Angel Investors, Venture Capital and Private Equity Fund 6.1 Meaning of Trade Associations Need for trade associations Features of Trade associations Objectives/Functions of Trade associations Advantages of Trade associations Entrepreneurship Associations Entrepreneurial development Sustainable entrepreneurship development Ingredients of Entrepreneurial development programmes Entrepreneurship Development Cycle Self-Help Groups (SHG) Need of Self-Help Group (SHG) Objectives of SHG Advantages of SHGs Disadvantages of self help groups Business Incubators Definitions of business incubation Types of incubation services Three stages of business incubation development Types of incubators Incubation centers in India Angel Investors Essential considerations for Angel Investors Types of Angel investors Personality traits of Angel investors Venture capital Definitions History of venture capital 238

10 CONTENTS I Factors to be considered by a Venture Capitalist Important factors for selecting the venture capital by 240 the Entrepreneur Stages in venture capital financing Angel Investors and Venture Capital Firms Private Equity Fund - Meaning & concept Advantages of private equity Disadvantages of private equity Private equity investment process Private Equity Firms in India Private equity firms vs. venture capital firms 246 Unit IV Business Plan preparation 7 Sources of business ideas and tests of feasibility, Significance of writing the business plan/project proposal, Contents of business plan/project proposal, Designing business processes, location, layout, operation, planning & control; preparation of project report (various aspects of the project report such as size of investment, nature of product, market potential may be covered). Project submission/presentation and appraisal thereof by external agencies, such as financial/non-financial institutions 7.1 Innovation, creativity and business ideas Sources of innovation Causes of failure of innovations Innovation Life Cycle Sustaining vs. Disruptive Innovation Creativity Creative process Measures to promote Creativity Business ideas Features of a good business idea Business idea cycle 262

11 I-23 CONTENTS Techniques of finding new business ideas Need for good business ideas Feasibility Analysis - Meaning & Concept Types of Feasibility Analysis Steps involved in Conducting a Feasibility Study Objectives of feasibility analysis Advantages of feasibility analysis Designing a feasibility report Feasibility Study Report (FSR) meaning Importance of FSR Steps in Writing A FSR Contents of a Feasibility Report Business plans and project report 8.1 Business Plan-meaning & concept Contents of a good Business Plan Logical questions before making a business plan Advantages of making a Business Plan Essentials ingredients for Business Plan for e-business Project report-meaning Specific sections of the project report Contents of a project report Guidelines for structuring good Project Report Benefits of Project Reporting 306 Unit V Small Business Management 9 Mobilizing resources for start-up, Accommodation and utilities, Preliminary contracts with the vendors, suppliers, bankers, principal customers; Contract management: Basic start-up problems 9.1 Resource Mobilization for Startups Types of Resource Mobilization for Startups 314

12 CONTENTS I Preliminary contracts with the vendors, suppliers, bankers, principal customers; Contract management Basic Requirements for a Contract General Principles for Entering into Contracts Ending a contract by consumer Basic start-up problems Methods to solve startup problems 325 APPENDIX Success Stories of some Entrepreneurs of India 333

INSTITUTIONAL SUPPORT FOR MSMEs

CHAPTER-IV INSTITUTIONAL SUPPORT FOR MSMEs In the previous chapter regulatory framework for MSMEs, the evolution of industrial policies was studied. It started from general policies relating to industries,