Entrepreneur-Entrepreneurship-iti-fitter online note

Entrepreneur:- 

An Entrepreneur is a person who establishes his own enterprise takes risk and earns profit from it. He gives employment to other people for the growth of his enterprise. His works starts before the starting the Business. Where the work of management starts after the formation of enterPrises.

Entrepreneurship: – 

Entrepreneurship has traditionally been defined as the process of designing, launching and running a new business which typically begins as a small business.

Good Qualities of Entrepreneurship: –

Perseverance:- 

The ability to withstand repeated rejection and disappointment is an essential part of an entrepreneur’s make up.  

Flexibility- 

Entrepreneurship is a tough space to play in. Unexpected challenges and problems appear constantly.  

High internal locus of control:- 

Successful entrepreneurs have faith in their ability to determine their own success.  

Learning and iteration:- 

when a problem occurs a successful entrepreneur sees it as a learning opportunity. It brings ideas to develop and refine them 

Curiosity- 

A wide ranging curiosity about how the world works and where things tie together is extremely common among successful entrepreneurs.  

Optimism- 

Despite all the difficulties inherent in the entrepreneurial lifestyle, successful entrepreneurs maintain an optimistic view of life and the world.

Principle of Entrepreneurship –

Principle of Entrepreneurship works on the basis of following.

a. Entrepreneur

b. Entrepreneurship

c. Enterprises

d. Conceptual Issues

Opportunity –

i)- Opportunity implies an offering that is novel in one or more of four ways.

ii)- Pioneering a truly innovative product.

iii)- Devising a new business model.

iv)- Creating a better or cheaper version of an existing product.

v)- Targeting an existing product to new sets of customer.

Project formation

A business plan or project report covers Area of operation, Target customer, Finance required, return expected from business, various other social and legal obligation that a business must fulfill. 

Project feasibility

i)- Economic feasibility

ii)- Technical feasibility

iii)- Project schedule

iv)- Operational feasibility

How to set a business plan?

i)- Write a business plan-: 

The first step in setting up any business is to create a set of steps to follow, the written guide will help you map out how you will start and run your business successfully.

ii)- Get business assistance and training-: 

Take advantage of training and counselling services from preparing a business plan and securing financing, to expanding or relocating a business.

iii)- Choose a business location-: 

select a customer friendly location and comply with laws of the land.

iv)- Finance your business-: 

Find government backed loans., venture capital etc. to help you get started.

v)- Determine the legal structure of your business-: 

Decide which form of ownership is best for your sole proprietorship,partnership, limited liability company(LLC), Corporation, on-profit or cooperative.

vi)- Register a business names-: 

Register your business name with your state government.

vii)- Register for state and local taxes-: 

Register with your state to obtain a tax identification number,worker’s compensation, unemployment and disability insurance

Understanding SWOT Analysis:-

S- Strength

W- Weakness

O- Opportunity

T- Threats

SWOT Analysis

A SWOT analysis or a SWOT matrix is a structured planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture.

i)- Strengths- 

Characteristics of the business or project that give it an advantage over others.

ii)- Weaknesses- 

characteristics that place the business or project at a disadvantage relative to others.

iii)- Opportunities- 

Elements that the project could exploit to its advantage.

iv)- Threats-

a)- Elements in the environment that could cause trouble for the business or project.

b)- Strength and weakness internal to the organization and the opportunity & threat are external factors.

Importance of SWOT:-

i)- Explore Possibilities

ii)- Make Decisions

iii)- Determine Change

iv)- Adjust and Refined Plans.

Concept and Application of PLC

a)- The Product Life Cycle (P LC) is an important concept in marketing.

b)- It consists of 4 stages.

Introduction:- 

i)- When a new product is introduced in market, the innovators may be the only people aware of its existence. 

ii)- Recalling that the innovator represents only a small percent of the population, the sales of the new product will be low.

Growth:- 

i)- In this stage sale begins to grow and profit usually starts to follow. 

ii)- This is the great time for a company introducing a new product because the company still enjoys a monopoly the growth stage. 

iii)- Profit increases in this stage.

Maturity:- 

i)- In this stage market tends to become very competitive and this trend continues into early period of maturity stage. 

ii)- The result is a market saturated  with many manufacturers offering many models of the product.

Decline:- 

i)- The number of companies abandoning the market continues and accelerate in the decline stage. 

ii)- The market may perceive the product old and it may no longer be in demand.

Marketing Method-:

a)- Print Advertising: New papers, Magazines, leaflets

b)- T.v/Radio Advertising

c)- Leaflets

d)- Website

e)- Social Media- Facebook, twitter, Instagram, LinkedIn

Sales and Distribution Management

Sales: 

Sales is marketing idea that is based only on selling goods or services, rather than on whether or not they are actually needed.

Distribution Management: 

This is the management or resources and process used to deliver a product from a production location to the point of sale, including storage at warehousing locations or delivery to retail distribution points.

Market Survey:-

A market survey is the survey research and analysis of the market for a particular product or service which includes the investigation in to customer inclination.

The following are the ten areas for information collection:

a)- Market, b)- buyers/Customers, d)- Raw materials, e)- Machinery, f)- Equipment, g)- Competitors, h)- Furniture, i)- Manpower, j)- Capital and risk, k)- Rules and Regulation, 

l)- Marketing.

7P’s of Marketing

1)- Process

2)- Product

3)- Place

4)- Price 

5)- Promotion

6)- People

7)- Physical environment.

Difference between Small Scale and Large Scale Business

Registration, Ownership, Technology, Location, Management, Specialization wise it can be differentiated.

Classify as a S.S.I or L.S.I

1)- Stationary store, 2)- Photo Studio, 4)- Reliance, 5)- Infosys, 6)- Coaching class,

 7)-Cadbury, 8)- Tiff-in service Provider, 9)- Toy shop, 10)- Big bazar Etc.

Institution Support:-

Government of India has taken various initiatives to ensure that proper assistance is provided to people regarding entrepreneurship.

Some of the main organization:-

i)- District Industries Center D.I.C

ii)- Swedish international development Agency. S.I.D.A

iii)- Small industries service institute. S.I.S.I

iv)- National small industries Corporation Ltd. N.S.I.C

v)- Small industries development organization. S.I.D.O 

Shops and Establishment Act

A commercial Establishment including:-

i)- A commercial or trading or banking or insurance establishment

ii)- An establishment or administrative service in which persons employed or mainly engaged in office work.

iii)- A theatre, Cinema or any other place of public amusement or entertainment.

Regulations Under the Act

i)- Working hours per day and week & leaves

ii)- Guidelines for spread-over, rest interval, opening and closing hours, closed days, national and religious holidays, overtime work.

iii)- Rules for employment of children, young persons and women

iv)- Rules for employment and termination of service

v)- Maintenance of registers and records and display of notices.

vi)- Obligations of employers as well as employees.

Investment Procurement

Estimation and costing- 

i)- How much money to require to start this business?

ii)- How much of your own money do you have for this business?

iii)- Do you already own any of the assets needed to start this business?

iv)- Do you have family, Friends or others who are willing and able to invest in this business?

v)- Do you have a strong personal credit rating or lines of credit available?

Types of Capital:-

Fixed capital:- A fixed capital investment is an investment in the purchase of items needed to operate a business but not the materials to go in to products.

Working Capital:- Working capital is the money that a business has available to work with.

Methods of Rising capital 

a)- Investment of own savings.

b)- Raising loans from friends and relatives

c)- Arranging advances from commercial banks.

d)- Following from finance companies.

Loans from Financial Institution

Long term and medium term loans can be secured from financial institution like the industrial finance corporation of India, Industrial credit and investment corporation of India.

Loans from commercial bank

Medium term loans can be raised by companies from commercial bank against of security of properties and assets.