Entrepreneurship as a career option

One frequently referenced definition comes from Harvard Business School professor Howard Stevenson: “Entrepreneurship is the pursuit of opportunity without regard to resources currently controlled.” What this means, according to Dave Valliere, professor of entrepreneurship at Ryerson University, is that you see an opportunity that’s “so compelling,” you have no other choice but to pursue it—even if you don’t have the necessary resources. You simply assume that you’ll find a way to get it done, he says.

If you have graduated from college before 2000 in India and and have said that you are going to pursue Entrepreneurship as a career, chances of people laughing at you is very high. They are not to blame as during that period people got into business if their family is in business.

What changed this perception towards entrepreneurship and why is it so attractive?

• India is growing and people are more demanding this fueled many business opportunity
• Many organisations are promoting entrepreneurship and government is actively wooing people to start new ventures
• Banks and financial institutions are more open to provide loans and there are many agencies available for support
• Attitude and aspirations of the people have changed as the economic growth emboldened people and increased their confidence level
• Indian families have become richer and they are able to bear and support their loved ones in their ventures

This being the change in mentality of people can entrepreneurship really become a career option?

i personally believe that entrepreneurship can be a career option because
- It is an really great time to be in India, people are being exposed to various modern lifestyles and are demanding new and better services and products and there is a general lack of good service providers.
-Increasing urbanisation contributes to a lot of opportunities for more service oriented business.
- The government is encouraging a lot with various subsidy schemes and it is very easy to get loans.
- The new payment gateways and online market places have increased the choices for people to buy and sell

At the end of the day, having that drive and passion will be your most important key to success as an entrepreneur. If you’re doing what you love, and doing it on your own terms, you can achieve what many are striving for: being your own boss. 

Entrepreneurship Development 2 mark questions part 2

1. Define Industrial sickness?

Sick industrial unit is defined as a unit or a company (having been in existence for not less than five years) which is found at the end of any financial year to have incurred accumulated losses equal to or exceeding its entire net worth. The net worth is calculated as sum total of paid up capital and free reserves of a company less the provisions and expenses, as may be prescribed.

2. List the good sources of business ideas?

•  Consumers
• Distribution Channel
• Government policies
• Research and Development
• Existing products and services

3. State the elements involved in job requirement analysis?

Worker characteristics: enduring individual attributes that influence the capacities workers can develop -Abilities, occupational values and interests, and work styles

Worker requirements: general attributes developed through education and experience, thus are more amenable to change than worker characteristics -Knowledge skills and education

Occupational requirements: descriptors of the work itself rather than the worker - Generalized work activities, work context, and organizational context

Experience requirements: types and quantities of experience required for specific occupations - Worker experience in other jobs, related training, on-the-job training, and certification requirements

Individual occupation characteristics: reflects labor demand, supply, and other labor market information.

Occupation-specific requirements: information unique to a particular job Occupation-specific skills and knowledge, tasks and duties, and equipment used

4. State some uses of business plans?

• Evaluating a New Venture
• Informing Suppliers and Customers
•  Monitoring Your Business's Performance
• Understanding pressure points.
• Attracting Good People   
• Back up a business loan application.
• Sell your business.
• Share and explain business objectives with your management team, employees and new hires.

uses of business plans 
need of business plan 

5.  Distinguish between Entrepreneurship and Intrapreneurship

Difference	Entrepreneur	Intrapreneur
1. Dependency	An entrepreneur is independent in his operations.	An intrapreneur is dependent on the owner
2. Raising of funds	An entrepreneur himself raises the funds required for the enterprise	Funds are not raised by the intrapreneur
3. risk	Entrepreneur bears the risks	An intrapreneur does not fully bear the risks
4. Operation	The entrepreneur runs own operations	The intrapreneur operates within the organisation.

6. Define intrapreneur ?

An inside entrepreneur, or an entrepreneur within a large firm, who uses entrepreneurial skills without incurring the risks associated with those activities. Intrapreneurs are usually employees within a company who are assigned a special idea or project, and are instructed to develop the project like an entrepreneur would. Intrapreneurs usually have the resources and capabilities of the firm at their disposal. The intrapreneur's main job is to turn that special idea or project into a profitable venture for the company.
 

Characteristics of small business

here are some interesting characteristics of small businesses ;

Entrepreneurial spirit – The owner/s of small businesses have an incredible amount of motivation, optimism, energy and a desire to succeed. They are not scared of risk and they take calculated, yet high risks. They see things differently. Successful small businesses are run by successful people and not by your average person.

Limited management skills – Management broadly includes planning, leading, organising and controlling across all the major activities of a business. Small business owners generally have one (or a few) strong skill set/s, usually the skill set that prompted the start-up of the business. Skills in important areas of finance, sales and marketing, technical, production, human relations etc are generally lacking.

Have limited funding – Most small businesses are under-funded and constantly need money. They don’t always have enough cash reserves to ride-out trade cycles, to finance growth and to maximise opportunities. The main reason for this is that small business owners don’t have collateral to offer lenders (banks etc) and obtaining ‘unsecured’ finance is near impossible.

Contribute little income taxes – Due to low profitability and ‘survivalist’ performances small businesses are not significant contributors to taxes on profits. Their economic contribution is mainly through contributing to payroll related taxes and consumption taxes on the goods and services they buy and sell.

Trade within competitive markets – Competitive markets are generally those that have a high number of participants, prices are under pressure, margins are low, barriers to entry are low and failure is high. Most small businesses don’t have a unique quality or strength that differentiates them from competition.

Low cost per job created – Small businesses collectively employ a lot of people and comparing the amount of money invested in small businesses, the cost per job/s created is way lower than big business. Small businesses work using people, whilst big businesses work using ‘systems’.

High failure rate – Due to the weaknesses and problems mentioned above, the majority of start-up businesses fail and those that do survive don’t always reach full potential. Reasons for failure are usually poor management and/or lack of funding.

Personal rewards – Owning and managing a small business is very rewarding psychologically as owners are responsible for their own successes and there is freedom to make decisions and implement them. The financial rewards are great too.

BA9264 Entrepreneurship development two mark questions

1. Who is an entrepreneur?

A person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk.

                                                                 (OR)

An individual who, rather than working as an employee, runs a small business and assumes all the risk and reward of a given business venture, idea, or good or service offered for sale. The entrepreneur is commonly seen as a business leader and innovator of new ideas and business processes. 

                                                               (OR)

They are the people who have the skills and initiative necessary to take good new ideas to market and make the right decisions to make the idea profitable. The reward for the risks taken is the potential economic profits the entrepreneur could earn.  

2. What is meant by prefeasibility study?

 In large (and usually joint venture or multinational) projects, a preliminary study undertaken to determine if it would be worthwhile to proceed to the feasibility study stage. A prefeasibility study is at a lower confidence level than a feasibility study.  This is an opportunity for you to understand the issues of business development.

3. Write short notes on project plan?

A project plan, according to the Project Management Body of Knowledge, is: "...a formal, approved document used to guide both project execution and project control. The primary uses of the project plan are to document planning assumptions and decisions, facilitate communication among stakeholders, and document approved scope, cost, and schedule baselines. A project plan may be summarized or detailed."  

IT is a statement of how and when a project's objectives are to be achieved, by showing the major products, milestones, activities and resources required on the project. 

4. What is product launching?

 Product launch means introducing a new product into the
market. In other words it is adding a new product in the existing product line of
the company

5. What is channel selection for a small business ?

Small businesses need to find a way to serve their customers, wherever they are located. That's why selecting a distribution channel is an important aspect of building a competitive advantage for businesses of every size. Distribution channels include your own direct sales force, retailers, distributors and the Internet. The right distribution channel ensures that customers in different locations around the country, or around the world, can buy your products and get the right level of service from your company. To select the right distribution channel for your business, you need to consider what a channel can offer, including location and reach, skills and resources, management costs and degree of control.

A Product Launch is a marketing strategy consisting of a carefully planned and scheduled sequence of events with the goal to make a big happening out of the release and, of course, make as much sales as possible in a short time span. - See more at: http://thebusinesssuccessfactory.com/what-is-a-product-launch-why-do-you-need-one/#sthash.fkhN50RI.dpuf

A Product Launch is a marketing strategy consisting of a carefully planned and scheduled sequence of events with the goal to make a big happening out of the release and, of course, make as much sales as possible in a short time span. - See more at: http://thebusinesssuccessfactory.com/what-is-a-product-launch-why-do-you-need-one/#sthash.fkhN50RI.dpuf

A Product Launch is a marketing strategy consisting of a carefully planned and scheduled sequence of events with the goal to make a big happening out of the release and, of course, make as much sales as possible in a short time span. - See more at: http://thebusinesssuccessfactory.com/what-is-a-product-launch-why-do-you-need-one/#sthash.fkhN50RI.dpuf

6. How to prevent  sickness in business?

a) Enforce financial discipline

b) Monitor changes in market share and maintain it

c) Discontinue unprofitable product line

d) Identify areas of inefficiency and improve it

7. What are the characteristics of small business?

a) Entrepreneurial spirit 

b) Limited management skills

c) Have limited funding 

d) Trade within competitive markets 

e)Low cost per job created

f) High failure rate

8.  What are the characteristics of an Entrepreneur?

- Organiser

-Innovative

- Change agent

- Risk taker

- Opportunitist

- Problem solver

- High Achiever

9.  Define entrepreneurship ?

The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of new businesses.
                                                          (OR)

The state, quality, or condition of being an entrepreneur, an organizer or promoter of business ventures.

 10. Give examples of any two industrial policies operating currently in your state
by the state government.

"Industrial Cluster Export Promotion Committee" would be established for each major
export cluster in the State under Chairmanship of a State Level Officer to address various administrative, procedural or infrastructure issues faced by exporters, settle local problems and forward larger policy and macro issues to SLEPC for decisions.

 Public Private Partnerships (PPP)
Public-Private Partnership route to bring in greater flow of investments into industrial
infrastructure is being used by TIDCO to bring in private investment in road, industrial park and SEZ development. SIPCOT will also use this model for water supply projects and development of other infrastructure.

SOME INDUSTRIAL POLICIES IN TAMILNADU

• Tamil Nadu Industrial Policy - 2007
• Tamil Nadu MSME Policy - 2008
• ICT Policy - 2008
• Tamil Nadu Biotechnology Policy
• Tamil Nadu Minor Port Policy - 2007
• Draft Granite Policy - 2009
• Fly Ash Utilisation Policy
• Floriculture Policy
• Contract Farming Policy
• Tamil Nadu SEZ Policy - 2003

A Product Launch is a marketing strategy consisting of a carefully planned and scheduled sequence of events with the goal to make a big happening out of the release and, of course, make as much sales as possible in a short time span. - See more at: http://thebusinesssuccessfactory.com/what-is-a-product-launch-why-do-you-need-one/#sthash.fkhN50RI.dpuf

 

Anna University Question Paper BA9264 Entrepreneurship Development May /June 2013

                                           Part A - (10*2 = 20 marks)
1. Who is an entrepreneur?
2. What is entrepreneurial personality?
3. What is an international business for an entrepreneur?
4. List the role of family in entrepreneurship.
5. What is meant by prefeasibility study?
6. Write short notes on project plan.
7. What is product launching.
8. What is channel selection for a small business.
9. How to prevent sickness in business?
10. What are the characteristics of small business in brief?
                              
                   Part B (5*16 = 80)

11. (a) Explain the characteristics of a sucessful Entrepreneur?
                                        Or
     (b) Discuss the knowledge and skills required for an entrepreneur.


12. (a) Explain the State government regulation for entrepreneurship.

                                                Or
     (b) Explain the various training and development programmes given for entrepreneurs.


13. (a) Discuss about the feasibility report preparation and evaluation criteria for business plan.
                                                   Or
      (b)  Explain the sources of product for business and criteria for selection of product.






14. (a) Describe the selection and recruitment process to be adopted in Entrepreneurship.
                                 Or
     (b) Explain about the growth strategies to be followed for launching of small business.

15. (a) Discuss on the rehabilitation of business units with suitable examples
                                               Or
      (b) Explain briefly
              (i) Prevention of sickness in units
              (ii) Monitoring and evaluation of business
              (iii) Effective management of small business.

 

MSME : definition and classification criterias

Definitions of Micro, Small & Medium Enterprises

 In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:

(a) 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) or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use. The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery.

(b) Service Enterprises:  The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.


The limit for investment in plant and machinery / equipment for manufacturing / service enterprises are as below

Manufacturing Sector
Enterprises	Investment in plant & machinery
Micro Enterprises	Does not exceed twenty five lakh rupees
Small Enterprises	More than twenty five lakh rupees but does not exceed five crore rupees
Medium Enterprises	More than five crore rupees but does not exceed ten  crore rupees
Service Sector
Enterprises	Investment in equipments
Micro Enterprises	Does not exceed ten lakh rupees:
Small Enterprises	More than  ten lakh rupees but does not exceed two crore rupees
Medium Enterprises	More than two crore rupees but does not exceed five core rupees

Entrepreneurship what is it?

Entrepreneurship is the capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of new businesses.

Alternate Definition:
Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort; assuming the accompanying financial, psychic, and social risks and uncertainties; and receiving the resulting rewards of monetary and personal satisfaction

We can say from the definitions that it is a process where a person creates a process or idea which he/ she believes will bring profit; and goes on to invest money, resources and  time in pursuing the opportunity.

Pros and Cons of Entrepreneurship

To everything in life there are advantages and disadvantages; entrepreneurship is no exception. As a matter of fact, entrepreneurship involves a lot of risk taking. Yet, it can pay off very nicely as well, with rewards such as profits and the opportunity to be your own boss and make your own decisions.

Here are some pros and cons to consider:

Pros
• Excitement: Due to its high capacity for risk, there is a lot of adventure.
• No Rules and regulations: Work in a current job is difficult to do because of all the consistent administration approval needed.
•  Satisfaction of providing original products
• Independence: Some people wish to be their own boss and make all the important decisions him/herself.
• Rational salary: They are not being paid what they're worth and would rather work on their own and earn the money they should be earning for their efforts.
• Freedom and Flexibility : Entrepreneurs can work whenever they want, wherever they want, and however they want.

Cons
• Salary: Starting your own business means that you must be willing to give up the security of a regular paycheck.
• Benefits: There will undoubtedly be fewer benefits, especially when considering that your business will be just starting off.
• Work schedule: The work schedule of an entrepreneur is never predictable; an emergency can come up in a matter of a second and late hours will have to be put in.
• Administration: All the decisions of the business must be made on your own; there is no one ranked higher than you on the chain of command in YOUR business.
• Incompetent staff: Often times, you will find yourself working with an employee who doesn't know what to do
• Procedures & policies have to be made by you.

Indian government for entrepreneurs
Development commissioner msme
Ministry of Micro, Small and Medium Enterprises

Some organisations helping entrepreneurs:
 http://www.ediindia.org/
indian institute of entrepreneurship
the indus entrepreneurs
 National entrepreneurship network