For New BU Syllabus

1. By
Chetan T.R

2. Evolution of Entrepreneurship in
India
 Phase – 1: Entrepreneurship in Pre-Bristish India
 Phase – 2: Decline of Entrepreneurship during the
British Period
 Phase – 3: Entrepreneurship development in
Independent India

3. Phase – 1: Entrepreneurship in Pre-
British India
 Villages – Self-sufficient
 Farmers, Artisans, craftsmen, etc..,
 Value of Labor
 Land of Gold

4. Phase – 2: Decline of
Entrepreneurship during the British
Period
 Competition from British Industries
 Mechanization came into picture
 Raw materials were exported and Machine made goods
flooded in Indian Market.
 Machine made goods were cheap, than handmade. Eg.,
Textiles.
 Value of labor was lost, and citizens took pride in serving in
Administrative services in British offices.
 Blue collar jobs were substituted by white collar jobs
 Risk-bearing ability and confidence were substituted by
obedience to British administration.
 Indian economy was paralyzed

5. Phase – 3: Entrepreneurship
development in Independent India
 Agriculture was concentrated at first
 No skilled labor, shortage of capital etc hinders Industrial
sector’s growth
 Deficit in BOP, Exports of labor intensive products viz.,
agricultural products and Import of scarce Raw materials,
machinery and equipments.
 Infrastructure facilities like electricity, transportation,
postal services, telecommunications, godown facilities etc.,
were not available.
 Economic policy in 1948 published its first Industrial Policy
Resolution

6. Salient features of Economic policy
 Socialistic pattern of society
 Mixed economy was the economic philosophy
 Imbalanced growth concept
 Planned economic development

7. Goals planned to achieve with he
Economic planning
 Removal of Poverty
 Increasing the National income
 Increasing the per capita income
 Agricultural self-sufficiency
 Speedy Industrialization
 Production of capital goods, t create a base for further
industrialization
 Production of consumer goods
 Removal of economic inequalities
 Removal of regional disparities
 Promotion of exports and imports substitution

8. EDP
 Entrepreneurial Development Programme
Is defined as a programme designed to help an
individual in strengthening entrepreneurial motive
and in acquiring skills and capabilities necessary for
playing entrepreneurial role effectively

9. Objectives of EDP
 Economic growth
 Balanced regional development
 To Eliminate Poverty and unemployment
 Optimum utilisation of Resources
 Empower new generation Entrepreneurs
 To develop broad vision of business, passion for
integrity and honesty

10. Curriculum of EDP
 General introduction to Entrepreneurship
 Achievement Motivation Training (AMT)
 Support system and Procedures
 Market Survey and Plant Visit
 Managerial Skill
 Project preparation and Feasibility Study

11. Role of Government in EDP
 Training Support from different institutes
 Marketing Assistance
 Promotional schemes
 Concession on Excise duty
 Credit facility to MSME

12. Steps in Creating and Enhancing an
effective EDP
 Outline the objective and focus on Venture development
 Selecting skilled people who have high entrepreneurial
potential
 Identify local market and search for people with potential.
 Provide support through private sector based organisations
 Provide methodology which supports Entrepreneurs in
Short and Long run as well.
 Implement measures to improve usefulness of Trainers and
facilitators
 Selection of areas for pilot program
 Launch Pilot EDP
 Governement Policies

13. Problems of EDP
 Non availability of competent Faculty
 Over estimation of Trainees
 Duration of EDP’s.
 No policy at the national level.
 Non availability of Infrastructural facilities
 Improper methodology
 Mode of selection
 Poor response

14. Women Entrepreneurship
 Acc to Schumpter, “ Women who innovate, imitate or
adopt a business activity”
 Acc to Govt of India, “An enterprise owned and
controlled by a women having a minimum financial
interest of 51% of the capital and giving at least 51% of
the employment generated in the enterprise to
women”.

15. Problems of Women entrepreneurs
 Limited mobility
 Lack of self confidence
 Lack of information
 Severe competition
 Marketing Problems
 Shortage of raw materials
 Financial problems
 Lack of encouragement from family
 Low need for achievement
 Low need for achievement
 Social attitudes
 Work-life imbalance
 Over dependence

16. Role of Entrepreneurship in
Economic development
 Capital formation
 Improvement in per capita income
 Improvement in living standards
 Economic independence
 Backward and forward linkages
 Generation of employment
 Harnessing locally available resources
 Balanced regional growth
 Reducing unrest and social tension amongst youth
 Innovations in enterprises

17. Opportunity Assessment

18. Opportunity Identification and
Selection
 Opportunity is defined as a time or set of
circumstances that makes it possible to do something
or to achieve something.

19. Factors influencing Business
Opportunities
 Accessibility of Industrial Inventory
 Chance of export
 Congregation of information regarding the tentative
industry
 Ease of use of internal resources
 Form of external support
 Height of risk in the business
 Level of demand
 Analysis of existing units performance

20. Business Environment
 Business Environment is an environment in which
business is conducted and encompasses of factors that
affect a Company’s operations including customers,
competitors, suppliers, distributors, industry trends,
substitutes, regulations, government activities,
demographics, social and cultural factors, innovation,
and Technological developments

21. Features of Business Environment
 Totality of external forces
 Specific and general forces
 Dynamic in Nature
 Uncertainty
 Relativity

22. Importance of Business
Environment
 Firm to identify opportunities and getting the first
mover advantage
 Firm to identify threats and early warning signals
 Coping with rapid changes
 Improving performance

23. Environmental Analysis
 Refers to the evaluation of the possible or probable
effects of external forces and conditions on an
organisation’s survival and growth strategies

24. Benefits of Environmental Analysis
 Identification of strength, Weakness, Opportunities
and Threats
 Keeping the Business enterprise alert
 Keeping business flexible and Dynamic
 Understanding future problems and prospects
 Making business Socially acceptable
 Ensures optimum utilisation of resources
 Ensures survival and growth
 Maintaining adaptability to changes

25. Process of Environmental Analysis
Step1:
Identification of relevant environmental variables
Step2:
Collection of Information
Step 3:
Forecasting
Step 4:
Monitoring

26. Limitations of Environmental
Analysis
 Environmental analysis does not predict the future,
nor does it eliminate uncertainty for any organization
 It is not a sufficient guarantor of organisational
effectiveness
 The potential of environmental analysis is often not
realised bcos of how it is practiced
 Not much reliable without secondary facts supporting
it.

28. Steps for New Venture start-ups
Identification
and
evaluation of
the
opportunity
Developing a
business plan
Determining
the resources
required
Project
appraisal and
feasibility plan
Managing the
Venture

29. Challenges of New Venture
StartUps
Start up Funding
Misunderstanding the market for a
startup
Startup Cash flow problems
Creating the right culture in your
startup
Patient protection and affordable care
act

30. PitFalls in selecting New Ventures
Create agile
business
systems
Passion
without a plan
Selling too
cheaply
Ineffective
Marketing and
advertising
Understanding
Capital
Lack of
management
oversight
Lack of
specific skills

31. Critical Factors for New Venture
Development
Use a Contract
Create responsive
business systems
Understand your
payment terms
Know the difference
between employee and
independent contractor
Have legal agreements
handy

32. Why New Venture fails
 No business plan
 Under funded
 Lack of operating goals and objectives
 Failure to measure Goals and Objectives
 Failure to pay attention to Cash flow
 Failure to understand the industry and the target customer
 Poor or no marketing programs
 Underestimating the competition
 Not cost competitive
 Lack of attention to accounts receivables and inventory
 Poor people management skills

33. Sources of Finance for New
Venture
 Equity Financing:
 Exchanging a a portion of ownership of the business for a
financial investment in the business
 Life Insurance policies
 Home equity loans
 Friends and relatives
 Venture capital
 Angel Investors
 Government grants
 Equity offerings
 IPO – Initial public offerings
 Warrants
 Personal Savings

34. Sources of Finance for New
Venture
 Debt Financing
 Friends and relatives
 Commercial Finance companies
 Banks and other commercial Lenders
 Government Programs
 Bonds

35. Sources of Finance for New
Venture
 Lease

36. Module – 3
Feasibility Analysis and Crafting
Business Plan

37. Feasibility Study
 The Feasibility study is an analytical tool used during
the project planning process, shows how a business
would operate under an explicitly stated set of
assumptions.
 The Feasibility study of a project can be ascertained in
terms of technical factors, economic factors or both.
 It is documented with a report showing all the
ramifications of the project viz., inflows, outflows of
fund, technology, market, environment etc.

38. Y Feasibility analysis?
 Helps in determining profitability of business
 Helps to gather broad data for members of management to
take decision.
 Helpful for showing out projects which are consistent with
business’s objectives.
 Helps analyze the cost benefit approach, as it considers all
the costs of the projects.
 Helps identify the SWOT and unforeseen circumstances
that might affect the success and sustainability of the
business
 Helps in estimating the financial, human and
technological resources that are required to ensure
successful launching of the business

39. Steps in Feasibility study
 Identify and recognize the people or firms that will be involved
in preparing the various aspects of the study.
 Examine the feasibility factors like., market feasibility, Technical,
Technology and system feasibility, Legal Feasibility, Operational
Feasibility, Economic Feasibility, Resource feasibility, Cultural
feasibility, and Financial feasibility study
 Proceed with Management study
 If it is a government project, social desirability has to be assessed
 Prepare the summary of the feasibility study including brief
description and major assumptions made.

40. Types of Project Feasibility
Types of
Project
Feasibility
Technical
Managerial
Economical
Financial
CulturalSocial
Political
Environmental
Market

41. Technical
Feasibility
Input
Analysis
Throughput
Analysis
Output
Analysis

42. Managerial Feasibility Analysis
 Management Support
 Employee involvement
 Commitment

43. Economic Feasibility Analysis
 Project costs
 Benefit-cost
 Fixed and Variable costs
 Revenue

44. Financial Feasibility
 Expenditures
 Expected Cash Flows
 Rate of return on Investment

45. Cultural Feasibility
 Deals with the compatibility of the project with the
cultural environment of the project
 Laborers/Employees
 Customers
 Stake holders
 Shareholders

46. Social Feasibility
 Eg., Dye units, in Ahmedabad have mushroomed and
are polluting and generate effluents which are not
acceptable to the society. The government has ordered
closure of all dye units unless suitable effluent
treatment in implemented

47. Market Feasibility
 Product, scope of the market and competition
 USP, quality and pricing
 Demand Projections
 Export facilities
 Adequate marketing infrastructure and principal
customers
 Selling arrangements
 Trends in price

48. Product or service feasibility
analysis
 Concept test:-
 Description of the Product/Service
 Intended Target market
 Benefits of the product/service
 Description of how the product will be positioned
 Description of how the product will be sold or
distributed

49. Elements of Technical Feasibility
 System Performance
 System Interface
 Development Processes
 Risk assessment
 Staff qualification
 Failure Immunity
 Customer support
 Security

50. Feasibility Report
 Includes the analysis of various factors and viability of
the project with the assumptions
 FSR – Feasibility Study Report
 Is formally documented output of feasibility study that
summarises results of the analysis and evaluations
conducted to review the proposed solution and
investigate project alternatives for the purpose of
identifying if the project is really feasible, cost-effective
and profitable

51. Steps to write a FSR
Write Project
Description
Describe
possible
solutions
Evaluation
Criteria
Write
conclusion
Propose the
most feasible
Solution

52. Importance of Feasibility Report
 Helps to list all details that are required for your idea
to work
 Identifies the problems and possible solutions
 Develop marketing strategies to convince the investor
that your idea is worth considering an investment
 Serves as a solid foundation for developing the
Business plan

53. Project Report
 The Project report is prepared by the entrepreneur or by
the consultants or associates in order to present relevant
facts before the decision makers to enable them to decide
whether the project is worthwhile the investment or not
 The Project report includes
 Preparation of detailed designs, specs, plant layouts, Process
designs, and time schedules for the execution of the project
 Collection of details or a complete work plan for various
processes or the project to be implemented after the proposal
has been finalized by the entrepreneur

54. Objective of a Project report
 Facilitates business planning and planning the future
course of action
 Enables an entrepreneur to compare different
investment proposals and select the most suitable
project
 Provides a SWOT analysis
 In case of public sector projects this report would
enable the concerned authorities to take an objective
decision on the project
 Facilitates the appraisal of the project in regards to
financial, economic and technical feasibility

55. Contents of a Project report
 Sources of Finance (Long term and Short term)
 Availability of machinery
 Technical Know-how
 Market potential
 Overall profitability
 Project schedule

56. Advantages of a Project report
 Helps entrepreneur in establishing techno-economic
viability
 Helps in getting term loans from banks and financial
institutions.
 Helps in getting working capital loan
 Shows feasibility of the project and possibility of
achieving profits

57. Problems faced in preparation of a
Project Report
 Strict conditions of promoter’s contribution may
dampen
 Lending institutions demand a lot of documents
 Assessment of working capital due to unrealistic
assumption
 Time overrun results in cost overrun
 Government rules and regulations

58. Model project report for a new
venture
 Sequence of standard format to be followed in
Preparing New Business Project report
I. Background of the Business
II. Customers profile
III. Long and short term corporate Objectives
I. To perform a viability assessment of the proposed new
business ideas in terms of marketability , technical
feasibility, financing and authorities
II. To be able to prepare a relevant business plan
III. To recognize fundamental start-up issues

59. IV. Market Analysis
I. Brief discussion on the type of market, chief influencers, players
etc.
II. Market description
III. Reasons for starting business in a particular market
IV. Target Clients
V. Advantages of the services offered by the new business
VI. Market consumption patterns
VII. Past and existing supply location
VIII. Production prospects and limitations
IX. Exports and Imports
X. Price structure
XI. Flexibility of demand
XII. Client behaviour, purposes, intentions, impetus, approaches,
inclinations and needs.
XIII. Supply network and marketing rules formulated by the
government
XIV. Government and technical limitations imposed on the promotion
of the product

60. V. Financial Assessment
I. Investment expenditure and value of the entire project
II. Methods of investment
III. Anticipated productivity
IV. Money flows of the project report
V. Investment value evaluated in context of different points of
merit
VI. Estimated financial ranking
VI. Marketing Assessment
I. Product
II. Price
III. Place
IV. Promotion

61. VII. Operational Plan
I. Business models
II. Production of goods and services
VIII.Financial Plan
IX. Management Structure
X. Business Structure(Ownership, staff etc)
XI. SWOT Analysis
XII. Appendices
I. Break-even analysis
II. Profit and Loss synopsis
III. Fund flow summary

62. Business Plan
 A Business Plan is a written statement of what an
entrepreneur hopes to achieve in one’s business and
how is one going to achieve it.
 Set of documents prepared by a firm's management to
summarize its operational and financial objectives for
the near future (usually one to three years) and to
show how they will be achieved.
 It serves as a blueprint to guide the firm's policies and
strategies, and is continually modified as conditions
change and new opportunities and/or threats emerge.

63. Business plan headings
 Owner details
 Description of the business
 Outline of the market
 Evaluation of competition
 How the business will be organised
 Proposed marketing mix
 Premises and equipment
 Sources of capital
 Cash flow forecast
 Future plans

64. Significance of a business plan
 Used for planning out specific details of business
 To define what business is or what the business is or what it intends to
be over time
 Clarifying the purpose and direction of business
 Helps to plan for changes in the market, growing or slowing trends and
new innovations or directions to take as the company grows
 The development of a comprehensive business plan shows whether or
not a business has the potential to make a profit
 Act as sales tool to attract partners, secure supplier accounts and attract
executive level employees into the new venture
 Conveys the organizational structure of a business, including the titles
of directors or officers and their individual duties.
 Also Acts as a management tool that can be referred to regularly to
ensure business is on course with meeting the gals, sales targets or
operational milestones

65. Guidelines to prepare a Business
Plan
 Do understand that the planning process is critical to run a
successful business
 Do utilise the business outline to determine what to
include in your plan
 Ensure the plan fits you
 Be clear in your objectives
 Do include market research
 Do include a financial plan and projections
 Explain both Strengths and weaknesses of business idea
 Do reserve and modify your plan as circumstances change

66. Format of a Typical Business Plan
1. The Executive Summary
2. Description of the business
3. Product/Service
4. Management
5. Financial requirements
6. Organisation description
7. Industry
8. Marketing strategy
9. Product/Operations Plan
10. Ownership
11. Key personnel
12. Accounting records
13. Financial information
14. Appendices

67. Objectives of Business Plan
 To give direction to the vision formulated by the entrepreneur
 To Objectively evaluate the prospectus of business
 To monitor the progress after implementing business plan
 To persuade others to join business
 To seek loans from financial institutions
 To visualise concept in terms of market availability, organisational,
operational and financial feasibility
 To guide entrepreneur in actual implementation of plan
 To identify actual strength and weakness of plan
 To identify challenges in terms of opportunities and threats from the
external markets
 To clarify ideas and identify gaps in management information about
their business, competitors and market
 To identify the resources required to implement

68. Business Plan Process
Idea
Generation
Environmental
Scanning
Feasibility
Analysis
Project Report
Preparation
Evaluation,
Control and
Review

69. 1: Idea Generation
 Consumers/Customers
 Existing companies
 Research and Development
 Employees
 Dealers and Retailers

70. 2: Environmental Scanning
 External Environmental Factor
 Political
 Economical
 Social
 Technical
 Natural
 Demographical
 Internal Environment
 Raw material
 Production/Operation
 Finance
 Market
 Human Resource

71. 3: Feasibility Analysis
 Market Analysis
 Technical Analysis
 Material Availability
 Material requirement planning
 Plant location
 Plant capacity
 Machinery and equipment
 Marketing Plan
 Production Plan/Operation Plan
 Organizational Plan
 Financial Plan

72. 4: Project Report preparation
5: Evaluation, control and review
Company has to operate in dynamic environment, it
has monitor ad review the strategies and policies to
stay in line with competition existing in market

73. Marketing Plan
 Refers to plan that describes market condition and
strategy related to how products and services will be
distributed, priced and promoted in market.

74. Marketing aspects of a Business
plan
Marketing
Aspects
Well defined
market
Channel
Strategy
Positioning
statement
Pricing
strategy
Communication
Strategy
Sales Strategy

75. Characteristics of an Effective
Marketing Plan
• Should provide strategy for accomplishing the company mission and goals.
• Should be based on facts and valid assumptions
• Optimum utilization of existing resources
• Should provide for continuity
• Should specify performance criteria that will be monitored and controlled
• Should short and simple
• Should be flexible to adapt for dynamic market

76. Production/Operations Plan
 A Production Plan is that portion of intermediate
business plan that manufacturing/operations
department is responsible for developing
 The plan states in general terms the total amount of
output that the manufacturing department is
responsible to produce for each period in the planning
horizon

77. Operational aspects of Business
Plan
Operational
Aspects
Operations
Strategy

78. Organization Plan
 Is the process f identifying an organization’s
immediate and long-term objectives, formulating and
monitoring specific strategies to achieve them.
 An Organization chart should include:
 Hierarchical structure
 How business is structured
 Legal form of ownership
 The Chain of command

79. Four stages of organizing a
Business
 Establish a list of the tasks using the broadcast of
classifications possible
 Organize these tasks into departments that produce an
efficient line of communication between staff and
management
 Determine the type of personnel required to perform
each task
 Establish the function of each task and how it will
relate to the generation of revenue within the company

80. Financial Plan
 Is a comprehensive evaluation of an investor’s current
and future financial state by using currently known
variables t predict future cash flows, asset values and
withdrawal plans.