The enterprise is the basic unit for economic organization. It transacts with other unit in the economy, it produces a product worth more than the resources used.
2. Define Entrepreneur.
According to Noah Webster, Entrepreneur is “one who assumes the risk and management of business”
3. What is Intrapreneurship?
Intrapreneurship is the process by which other new ventures are born within the confines of an existing corporation. It involves expansion by exploring new opportunities through new combinations of existing resources.
2.Willingness to hard work
3.Vision and foresightedness
4.Creative and imaginative thinking
5.Innovative and willingness to change
ü Energetic, hard working
ü Interested in expanding the scale of operations ü Visualize changes
ü Firm believer in planning & systematic work.
According to McClelland achievement motivation can be developed through training and experience. Ambition is the lever of all motives and nourishes achievement motive.
· Inner Drive to Succeed
· Strong Belief in themselves
· Search for New Ideas and Innovation · Openness to Change
ENTERPRENEURSHIP DEVELOPMENT
4.‟Entrepreneurship as a Career‟- comment this statement.
UNIT-2
2-MARKS
1. What is Business Environment?
Business environment is the sum total of all external and internal factors that influence a business. You should keep in mind that external factors and intern.al factors can influence each other and work together to affect a business.
Entrepreneurial Development Programme means the programme designed to help a person in strengthening his entrepreneurial motive and in acquiring skills & capabilities necessary for playing his Entrepreneurial role effectively.
Setting Training objectives
Training objectives
Developing course content
Assistance:
Training may be defined as any procedure initiated by an enterprise which intends to foster and enhance learning among the employees working in the enterprise. So far as the training in small-scale units is concerned, the owner himself takes the responsibility for developing and conducting the training programmes.
The oldest and most commonly used training techniques in the small scale units is the on the job training. It consists of the employees receiving training form their supervisors or other departmental members while they perform their regular jobs.
17. What is Job Rotation?
In this training programmed, employees are moved from job to job for a few hours a day, a few days at several weeks. Thus if one employee is absent, another employee can be well fill in the absence.
18. What is Apprenticeship training?
It combines both formal classroom learning and on the job experience. This kind of training programmed is provided mainly in the technical cadres. Plumbers, electricians and bankers are example or such training.
19. How training is given in the small scale industries?
The training opportunities for both skilled and unskilled employees.
20. What is Development?
Development is concerned with the growth of an employee in all respects. The term development is generally used for employees working in the managerial ladder.
21. Write any four financial institution names.
· Industrial Development Bank of India(IDBI) · Industrial Finance Corporation of India (IFCI)
16 MARKS
UNIT-3
2-MARKS
1. What is project identification?
It is the process of identifying opportunities for new business ventures.
2. What is selection of product?
It is the first major step in the setting up of a business enterprise. Choice of the right product is to be produced is the first essential of success in entrepreneurship.
3. What is project formulated?
Project formulated is the systematic development of a project idea for the eventual purpose of arriving at an investment decision. It involves a step by step investigation and development of project idea.
4. What is Technical feasibility?
Identifying the technical specification of the product in terms of its functional design, adaptability of new customer demand, durability, and reliability of performance, acceptable level of obsoleSNSCEnce, safety and standardization.
o Economic Viability o Financial Feasibility
o Managerial Competence o Implementation Scheme
Financial planning is the process of formulating policies and strategy relating to the procurement, investment and administration of funds for an enterprise.
7. What is debt equity consideration?
Optimum capital structure implies the most economical and safe ratio between debt and equity. It is the ideal mix of ownership funds and borrowed funds. From a strictly financial point of view, the optimum capital structure is achieved by balancing the financial so as to achieve the lowest average cost of long term funds.
8. What is IFCI?
Industrial Finance Corporation of India is to make medium and long term credits more readily available to industrial concerns in India, particularly in circumstances where normal banking accommodation is inappropriate or recourse to capital issue methods is impracticable.
To assist in the promotion expansion and modernization of industrial enterprise
ENTERPRENEURSHIP DEVELOPMENT
Encourage and promote the participation of private capital both Indian and foreign
Promote private ownership of industrial investment and expansion of investment markets
It is a form of equity financing of projects with high risk and return. It is meant for financing high technology projects.
11. What is export finance?
In order to encourage export from small scale sector, export credit is provided to small scale exporters. State Bank of India and other public sector banks provided export finance. The RBI and the IDBI provide refinance facility.
12. What is IDBI?
Industrial Development Bank of India was set up on July 1, 1964 as an apex institution in the field of industrial finance. It provides assistance to small scale units indirectly through its refinance and bills rediscounting schemes.
13. What is the assistance by commercial bank?
Term loan, Installment credit, Special schemes of assistance and credit guarantee scheme.
Rules and regulation
Risk in transit Physical Distance Credit worthiness of dealers Difference in language Currency
Under section 80 IA of the Income tax Act, 1961, deduction is allowed in computing the taxable income in respect of profits derived from a new industrial undertaking or a ship or the business of a hotel.
International / Foreign collaboration implies a business partnership/joint venture between an Indian entrepreneur and a foreign entrepreneur. It may be a technical collaboration where in the participant provides advanced technology and technical know-how to the Indian partner.
21. What is Project?
It is defined as a typically has a distinct mission that it is designed to achieve and a clear termination point, the achievement of the mission.
22. What is Project Appraisal?
It means the assessment of a project. Project appraisal is made both proposed and executed projects.
16 MARKS
UNIT-4
2-MARKS
1. What is Market survey?
Before the production actually starts, the entrepreneur needs to anticipate the possible market for the product. He has to anticipate who will be the possible customer for his product.
2. What is market assessment?
Different customer requires different types or qualities of a product. A small scale unit cannot meet the requirement of all types of customers. Therefore, it has to choose a target market or group of customers. After identifying the target market it should estimate the total demand.
3. What is market segmentation?
A market consists of heterogeneous customers who differ in terms of their needs, preference and buying capacity. A different marketing approach is necessary for every customer group.
4. What is pricing policy?
Price is an important element of marketing mix as it influences the profit margin and the sales volume. Pricing involves not only fixing the base price but also deciding the discount structure mode of payment, currency to be used, etc.
5. Define co-operative organization.
It is an association of person, usually of limited means who have voluntarily joined together to achieve a common economic end through the formation of a democratically controlled business organization, making equitable contributions of the capital required and accepting a fair share of risk and benefits of the undertaking.
It is no longer possible for a firm to expand in the basic product market. Therefore the firm must add new products or markets to its existing business line this approach towards the growth is called as diversification.
9. What is Joint Stock Company?
It is a voluntary association of individuals for profit having a capital divided in to transferable
shares.
10. What is marketing mix?
The entrepreneur always tries to choose a mix of alternatives/decisions amongst the alternatives that may yield the maximum returns for him/her. There are usually four main decision areas. Viz. products, price, promotion and place which constitute a mix of decisions.
11. Define Branding.
“A brand is a name, term, sign, symbol or design or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
12. What is Packaging?
Packaging is considered as an important element of product mix. Some marketers even consider it as a fifth „p‟ along with product, price, promotion and physical distribution. Packaging has been variously defined.
13. What is distribution channel?
A channel of distribution or marketing channel is the structure of intra company organization units and extra-company agents and dealers, wholesale and retail through which a commodity, product or service is marketed.
14. How to select a suitable channel?
The success or failure of an enterprise inter alia depends upon to a great extent, the selection of a suitable channel of distribution. There are a number of factors that must be considered when a channel of distribution is to be selected.
15. What is Man power planning?
Under Man power planning the management needs to ask itself two basic questio9ns of
UNIT-5
2-MARKS
1. State the Schumpeter’s view of entrepreneur.
An entrepreneur is an innovator who brings economic development through new combinations of factors of production.
2. Define Sickness.
According to Reserve Bank of India, a sick unit is one which incurs cash losses for one year and is likely to continue to incur cash losses for the current year as well as the following year.
Financial loss, loss of employment, industrial unrest, harms to invest, wastage of scarce resources and loss of public revenue.
5. What is an industrial estate?
It is a method of organizing, housing and servicing industry, a planned clustering of industrial enterprises offering standard factory buildings erected in advance of demand and a variety of service and facilities to the occupants.
6. What is self-sufficiency?
Some firms grow to become independent in terms of marketing of raw material or marketing of products. They integrate the various stages of industry or acquire other firms to gain control over the supply of materials and marketing of finished goods.
7. What are the major causes of sickness?
Internal causes mainly relate to the poor quality of top management External causes relate to external factors arising outside the organization.
9. What are the roles of government in preventing the sick units?
The number of industrial units in the country has increased enormously after the independence we have diversified industrial structure with widespread entrepreneurship. Government is responsible for this with its effort at creating infrastructure facilities, specialized industrial and packaging of incentives for entrepreneur.
10. What are the institutions supporting the entrepreneurs?
District Industrial center, Small Industries Development Organization, National Small Industries Corporation, National Industrial Development Corporation Ltd., Small Industries Extension Training Institute Hyderabad and State Trading Corporation of India.
11. What are the roles of financial institution in preventing sickness?
Apex financial institution like IDBI, IFCI, ICICI and nationalized commercial banks are in a favorable position to prevent industrial sickness. These are to remain in constant touch with the units with market conditions as well as the funded units are in an excellent position for receiving early warning of sickness.
Plant layout is referred to the arrangements and location of different departments and of the machinery with in a department so that an optimum utilization of space available can be made with a view to enabling plant to function in an effective manner.
14. What is working capital?
It is the amount of funds which an SSI must have to finance its day to day operation.
15. How project report prepared?
A project report is prepared by the entrepreneur himself or by his consultants or associates in order to present relevant facts before the decision makers to enable them to decide whether the project is worthwhile for the investment or not.
16. What is feasibility report?
A feasibility report or a project report of a new enterprise or of an expansion of the existing unit provides in general, primary economic information, financial data and technical data which serve a quite number of discrete economic processes or cost structure of the industry concerned.
17. What is financial ratio analysis?
It is a quantitative technique for assessing the financial health of a unit from the accounting data and helps to describe the significant relationship between two comparable figures in the financial statement.
18. What is Fabian Entrepreneur?
These are traditionally bounded entrepreneurs who would always be cautious and they neither introduce new changes and they neither introduce new changes, nor adopt new methods innovated by the most enterprising entrepreneurs. They are lazy, follow old customs, tradition, sentiments .etc.
19. What is Drone Entrepreneur?
These entrepreneurs never allow any change in their production and the style of functioning. They never explore opportunities and neither prepares to take any risk. They may even meet losses due to obsolete methods of production, but do not change their production methods and continue to adopt traditional ways in production processes.
It is defined as the time gap between the date of incorporation and the date of commencement of commercial production.
22. What are tiny Units?
These refer to undertakings having fixed investment in plant and machinery not exceeding of Rs.5lakhs. These also include undertakings providing services of laundry, repairs etc.
Small scale units that use the local resources. Therefore, they have decentralized or dispersed location.
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Sometimes people are more willing to speak to insiders than to outsiders. |
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An internal evaluation is very clearly a management tool, a way of self-correcting, and |
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much less threatening than an external evaluation. This may make it easier for those |
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involved to accept findings and criticisms. |
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An internal evaluation will cost less than an external evaluation. |
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