Entrepreneurship Development and Small Business Enterprise

Cover
About the Author
Preface
Acknowledgements
Contents
Chapter 1: Modern Small Business Enterprises
	Role of Small-scale Industries
		Impact of Globalisation on SSI in India
		Impact of the WTO on SSIs
		WTO: Pros and Cons
	Concepts and Definitions of SSI
		Calculation of the Value of the Plant and Machinery
	Government Policy and Development of the Small-scale Sector in India
		Industrial Policy 1991
		Policy Initiatives Since 1999
	Growth and Performance of Small Scale Industries in India
		Pre-and Post-liberalisation Periods
		Performance of Small-scale Industries in India
		Share of Small-scale Industrial Units in Total Exports
	Third All India Census of SSI Sector
	Small and Medium Enterprises (SME) in Other Countries
		International SME Network (lNSME)-Background
		Composition of INSME Steering Group
		Definitions of SMEs in Various Countries
	Problems for Small-scale Industries
	Prospects of the Small-scale Industries in a Free Economy
		Quality Control
		Marketing Arrangements
		Advertisement
		Recovery of Receivables
		Professionalism in Management
		Inventory Control
		Opportunities
	Summary
	Key Words
	Exercises
	References
	Annexure 1.1
	Annexure 1.2
Chapter 2: Entrepreneurship
	Importance of Entrepreneurship
		Charms of Being an Entrepreneur
		Why Should You Become an Entrepreneur?
	Concepts of Entrepreneurship
		Various Definitions of an Entrepreneur
		Entrepreneurial Development Process
	Characteristics of a Successful Entrepreneur
	Classification of Entrepreneurs
		(a) Based on Functional Characteristics
		(b) Based on the Developmental Angle
		(c) Based on Types of Entrepreneurial Business
		(d) Based on the Nine Personality Types of Entrepreneurs
		(e) Based on Schools of thought on Entrepreneurship
	Myths of Entrepreneurship
	Entrepreneurial Development Models
		(a) Psychological Models
		(b) Sociological Models
		(e) Integrated Models
	Problems Faced by Entrepreneurs and Capacity Building for Entrepreneurship
		Internal Problems of Entrepreneurs
		External Problems of Entrepreneurs
		Specific Management Problems
		Capacity Building for Entrepreneurship
	Profiles of Successful Entrepreneurs
		Rags to Riches-Dhirubhai Ambani
		The Nirma Story-The Saga of Karsanbhai Patel
			Business opportunity identification
		The King of Omega-3-P.J. ). Kunjachan
	Summary
	Key Words
	Case Studies
	Exercises
	References
Chapter 3: Women Entrepreneurs
	Women Entrepreneurship Defined
		Definition
		Importance of Women Entrepreneurs
		Factors Influencing Women Entrepreneurs
		Women Entrepreneurship in Asia
		Women Entrepreneurs in India
	Women Entrepreneurship Environment
		Status of Women Entrepreneurs
	Challenges in the Path of Women Entrepreneurship
		Lack of Confidence
		Problems of Finance and Working Capital
		Socio-cultural Barriers
		Production Problems
		Inefficient Marketing Arrangements
	Strategies for the Development of Women Entrepreneurs
	Empowerment of Women by Entrepreneurship
	Grassroot Entrepreneurship through Self-help Groups (SHGs)
		How do SHGs Work?
		The SHG System
		Various SHG Activities to Promote Entrepreneurship
	Institutions Supporting Women Entrepreneurship in India
		Consortium of Women Entrepreneurs of India (CWEI)
		Federation of Indian Women Entrepreneurs (FIWE)
		Federation of Ladies\' Organisation (FLO)
		Women\'s India Trust (WIT)
		Cent Kalyani of Central Bank of India Credit Schemes
		National Bank for Agriculture and Rural Development (NABARD)
		State Government Schemes for Development of Women and Children in Rural Areas (DWCRA)
		Small Industries Development Bank of India (SIDBI)
		Self-Employed Women Association (SEWA)
		Association of Women Entrepreneurs of Karnataka (AWAKE)
	Women Entrepreneurs in India
	Profiles of Successful Women Entrepreneurs
		Kiran Mazumdar Shaw
		Shahnaz Hussain
		Ritu Kumar
	Women\'s Organisations Supporting Women\'s Entrepreneurship
		Shri Mahila Griha Udyog Lijjal Papad
		Mahila Bunkar Sahakari Samiti
		SABALA: Crafting Exports of Indian Handicrafts
			Importance of the Indian handicraft industry
	Summary
	Key Words
	Case Studies
	References
Chapter 4: Institutions Supporting Small Business Enterprises
	Introduction
	Central Level Institutions
		1. Small·scale Industries Board (SSI Board)
		2. Khadi and Village Industries Commission (KVIC)
		3. Small Industries Development Organisation (SIDO)
			Institutional network
			Services provided by SIDO
			SIDO schemes
		4. National Small Industries Corporation Ltd. (NSIC)
			(a) Machinery and Equipment (Hire-Purchase Scheme)
			(b) Machinery and Equipment (Lease Scheme)
			(c) Financial Assistance Scheme
			(d) Assistance for Procurement of Raw Material
			(e) Marketing Assistance
			(f) Government Store Purchase Programme
			(g) Technology Transfer Centre (TTC)
		5. The National Science and Technology Entrepreneurship Development Board (NSTEDB)
		6. National Productivity Council (NPC)
		7. National Institute for Small Industry Extension and Training (NISIET)
		8. National Institute for Entrepreneurship and Small Business Development (NIESBUD)
		9. Indian Institute of Entrepreneurship (IIE)
			Objectives
		10. Entrepreneurship Development Institute of India (EDII)
	State Level institutions
		1. Directorate of Industries (DIs)
		2. District Industries Centres (DICs)
		3. State Financial Corporations (SFCs)
		4. State Industrial Development/Investment Corporation (SIDCs/SIICs)
		5. State Small Industrial Development Corporations (SSIDCs)
	Other Agencies
		1. National Bank for Agricultural and Rural Development (NABARD)
		2. Housing and Urban Development Corporation Ltd. (HUDCO)
		3. Technical Consultancy Organisations (TCOs)
		4. Non-governmental Organisations (NGOs)
			Sub-contract Exchanges Set up By NGOs
			Launching of Scheme
			Setting up of SCXs by Industrial Associations
			Quantum of Assistance Provided
			Sub-contract Exchanges for Ancillary Development
			Testing Centres Set up by NGOs
		5. Small Industries Development Bank of India (SIDBI)
			Origin and Objectives
			Domain of service
			Channels of assistance
			Development and support services
			EDPs of SIDBI
		6. Scheme of Micro Finance Programme
			Salient features of Micro-Finance programme
		7. Export Promotion Councils (EPCs)
	Industry Associations
		1. Confederation of Indian Industry (CII)
		2. Federation of Indian Chambers of Commerce and Industry (FICCI)
		3. PHD Chamber of Commerce and Industry (PHDCCI)
		4. Associated Chamber of Commerce and Industry of India (ASSOCHAM)
		5. Federation of Indian Exporters Organisation (FIEO)
		6. World Association for Small and Medium Enterprises (WASME)
		7. Federation of Associations of Small Industries of India (FASII)
		8. Laghu Udyog Bharati (LUB)
		9. Indian Council of Small Industries (lCSI)
		10. Council of Scientific and Industrial Research (CSIR)
		11. Venture Capital
	Summary
	Key Words
	Exercises
	References
	Annexure 4.1
Chapter 5: Setting Up a Small Business Enterprise
	Identifying the Business Opportunity
	Business Opportunities in Various Sectors
		Green Business
		Biotechnology
		Events Management
		IT Enabled Services
		Food, Fruits and Vegetables Processing, Refrigeration, and Transportation
		Mineral Water
		Courier Services
		Insurance Sector
		Telecommunication
		Herbal Sector
		Tourism Sector
		Vermiculture
		Plastic
	Fonnalities for Setting Up of a Small Business Enterprise
		1. Selection of a Project
			(a) Product or Service Selection
			(b) Location Selection
			(e) Project Feasibility study
			(d) Business Plan Preparation
			(e) Project profile
		2. Decide on the Constitution
			(a) Sole Proprietorship
			(b) Partnerships
			(c) Corporation/Limited company
			(d) Cooperatives
			(e) Franchising
		3. Registration
			Obtain SSI Registration
			Provisional Reg;stration Certificate (PRC)
			Registration Formalities
			Permanent Registration Certificate (PMT)
			Registration Formalities
			Registering an SSI Unit
			Benefits of Registering
			Objectives of the Registration Scheme
			Features of the Registration Scheme
			Basis of Evaluation
		4. Clearances from Specific Departments
		5. Arrange for Land/Shed
			Industrial shed
			Application formalities
		6. Arrange for Plant and Machinery
			Direct Purchase
			NSIC Hire Purchase Scheme
			Process Selection
			Raw Materials
			Machinery and Equipments
			Value of Machines
			Earnest Money
			Administrative Charge
			Period of Repayment
			Gestation Period
		7. Arrange for Infrastructure
			Land and Construction of Building
			Getting the Utility Connections
		8. Prepare Project Report
		9. Apply and Obtain Finance
			Means of Finance
			Arranging Finance
		10. Implement the Project and Obtain Final Clearances
			Construct Shed
	Environment Pollution Related Clearances
	Summary
	Key Words
	Exercises
	References
	Annexure 5.1: Business Plan
	Annexure 5.2: Project Profile
	Annexure 5.3
	Annexure 5.4
Chapter 6: Family Business
	Importance of Family Business
		Family Business Defined
	Various Types of Family businesses
		The \"3-Circle\" Model of Family Business
		Family Business System Governance
			Family business system governance structures
			Governance of the family business
	History of the Family Business
		Primary Benefits
	Responsibilities and Rights of Family Shareholders of a Family Business
	Succession in Family Business
		Trends in the Growth of Successors in Family Businesses
		First Family Succession Plan, Then Business Succession Plan
		Family-first Business or Business-first Family
		Succession Management
		Business Valuation
		Buy/Sell agreemfents
		Succession Planning Obstacles in Family Businesses
			Fairness equals performance expectations
		Succession-Three Ways to Ease Transition
	Pitfalls of the Family Business
		Sibling Rivalry in Family Bussinesses: Key Issues
		Coping Approaches
			Arbitrary approach
			Managed approach
		Defusing Tensions
	Strategies for Improving the Capability of a Family Business
	Improving Family Business Performance
		Concept of \"Core Business Values\"
		Critical Core Business Values Impacting Family Business Performance
		Training
	How to Overcome Nepotism in Family Businesses
	Management Development Plan in Family Business
		Who Should Create the Plan?
		Typical Agenda Items
		Creating the Plan
	Family Reunion Games Promote Family Values
	How to Save the Family Business
		Rule I: Formulale Policy Framework and Rules
		Rule II: Families Must Serve the Business
		Rule III: Future Outlook
		Rule IV: Accountability
		Rule V: Addressing the Issue
		Rule VI: Creating Shared Vision
	Seasonal Nature of the Business
		Surplus or Non-operating Assets
		Partial Interests and Fractional Interests
		Environmental Problems-Your Worst Nightmare
		Contingency Plan-for an Uncertain Future
	Summary
	Key Words
	Case Studies
	References
Chapter 7: Sickness in Small Business Enterprises
	Definition of Sickness and Status of Sickness of SSIs in India
		Present Status of Sickness of SSIs in India
		Magnitude of Sickness in the SSI Sector in Country
	Highlights of Third All-India Census on Sickness in SSI
	Criteria to Identify Sicknessllncipient Sickness
		Magnitude of Sickness/Incipient Sickness
	Causes for Sicknessllncipient Sickness in SSI
		Exogenous Factors
		Endogenous Factors
		Finance Management
	Symptoms of Sickness
	Cures for SSIs\' Sickness
		Rehabilitation
		Viability of a Sick Unit
		Working Group on Rehabilitation of Sick Units
	Case Studies
	Summary
	Key Words
	Exercises
	References
Chapter 8: Strategic Management in Small Business
	Organisation Life Cycle
		Start-up Stage
		Expansion Stage
		Consolidation Stage
		Revival Stage
		Decline Stage
		Turning the Venture Around
		Organisational Renewal Cycle
	Strategic Management
		Strategic Planning: The Challenge
		Benefits of Strategic Planning
	The Essence of Business Ethics
	Case Study
	Summary
	Key Words
	Exercises
	References
	Worksheet 8.1: Review the Organisation\'s Present Situation
	Worksheet 8.2: History of the Organisation
	Worksheet 8.3: Essence of Founders
	Worksheet 8.4: Assess Your Strengths and Weaknesses
	Worksheet 8.5: Conduct an Environmental Scan
	Worksheet 8.6: Conduct Customer\'s and Competition Analysis
	Worksheet 8.7: Scale for Swot
	Worksheet 8.8: Assess Swot
	Worksheet 8.9: Critical Issues or Choices that You Face Regarding the Future
Chapter 9: Financial Management in Small Business
	Importance of Financial Management
		Functions of Financial Management
	Working Capital Management
		Estimating Working Capital - A Simplified Approach
		Valuation of Stock-in-Trade
		Cost Formulas
		Working Capital Schemes
	Accounting and Book Keeping
		The Accounting Process
		Types of Books of Accounts
		Specimens of Essential Books
			a. Purchase Book
			b. Sales Book
			c. Cash Book
			d. Journal
			E. Ledger
	Financial Statements
		Balance Sheet
			Features of balance sheet
			Various accounts of balance sheet
		Profit and Loss Account
			How does a profit and loss account look
		Cash Flow Statement
	Financial Ratio Analysis
		1. Return on Investment (ROI) Ratios
		2. Solvency Ratios
		3. Liquidity Ratios
		4. Turnover Ratios
		5. Profitability Ratios
		6. Du Pont Analysis
		7. Capital Market Ratios
	Summary
	Key Words
	Exercises
	References
Chapter 10: Marketing Management in Small Business
	Importance of Marketing
		Definition
		Common Marketing Problems Faced by Small-scale Industries
		Marketing Process
	Customer Relationship Management (CRM)
		Market Segmentation
		Market Research
		Marketing Mix
			Product
			Promotion
			Price
			Place
	Marketing of Services
		India\'s Growing Services Sector
		Differences between Goods and Services Marketing
		Key Success Factors in Services Marketing
	Export Marketing
		Foreign Trade (Development and Regulation) Act, 1992
		Foreign Exchange for Export Promotion
		Foreign Industrial and Technology Agreement
			(i) Outright (Sale) exports
			(ii) Consignment exports
		Export Incentive Schemes
		Procedural Simplification
		New Markets
		Sources of Finance
			Prp-shipment finance
			Post-shipment finance
		Market Segmentation
		Market Research
		Product Characteristics
		Export Pricing
		Distribution Channel
		Working Document
			Procedures, Formalities, and Documentation
			Obligations
			Facilities and benefits
			Applications and application forms
			Pre-shipment formalities
			Submission of documents to bank
		Organisational Export Assistance
			1. Policy and service support organisation
			2. Commodity specilisation institutions
			3. Training and rpsearch institutions
			4. Trading/service corporations
			5. Financial institutions
			6. Export promotion zones (EPZs)
		Indian Exporter\'s Directory
	Summary
	Key Words
	Case Studies
	References
	Annexure 10.1: Salient Features of Export-Import Policy for the Small-Scale Sector
Chapter 11: Production Management in Small Business
	Production Management
		Plant Layout
		Production Planning and Control (PPC)
		Phases in PPC Function
			1. Planning phase
			2. Action phase
			3. Control phase
	Materials Management
		Inventory Management
			Inventory Costs
			Inventory Control Techniques
		Benefits of Inventory Control
		Tips for Stock Keeping
	Productivity
		Improving Materials Productivity
		Improving Labour Productivity
			Cutting machine time
			Handling, material on and off machines
		Workplace layout
			Working conditions
		Equipment
			New investment
			Choosing new machines
			Maintenance
	Break-Even Analysis
		Types of Cost
		Break-even Point
			Ways to lower break-even
	Total Quality Management
		\"Quality\" Defined
		Managing for Quality
		Total Quality Management
		Quality Improvement Tools
		Quality Systems
		Quality Management Principles
		Requirements of Quality Management System
			(1) General
			(2) Process Model
			(3) Compatibility with other Management Systems
		Quality Management Systems-Requirements
		Steps to Certification Under
	Environmental Management System
		ISO 14000
		Benefits of Environmental Management System
		ISO 14001
		Environmental Management Systems-Requirements
	Summary
	Key Words
	Exercises
	References
Chapter 12: Human Resource Management in Small Business
	Importance of Human Resource Management
		Functions of Human Resource Development
	Human Resource Development
	Industrial Relations. Labour Laws, and Environmental and Pollution Control Laws
		1. Laws Regulating the Conditions of Work in Factories and Establishments
			The Factoms Act, 1948
			Special Provisions/or Industries involving Hazardous Processes
		2. Laws Relating to Wages
			Minimum Wages Act, 1948
			Payment of Wages Act, 1936
		3. Law Relating to Social Security Measures
			Workmen\'s Compensation Act, 1923
			Employees\' State Insurance Act, 1948
			Employus\' Provident Fund and the Family Pension Act, 1952
		4. Laws Relating to Workers\' Associations and Disputes
			Trade Union Act 1926
			Industrial Disputes Act, 1947
		5. Law Relating to Women and Child Workers
		6. Laws Relating to Environment and Pollution Control
			Water (Prevention and Control of Pollution) Act, 1974
			Air (Prevention and Control of Pollution) Act, 1981
			Environment (Protection) Act, 1986
			Scope and Scheme
	Summary
	Key Words
	Exercises
	Case Studies
	References
Index