Project: definition, types and importance, phases of the project, project identification, sources of idea generation, selection, feasibility studies, formulation and project report, appraisal, implementation, evaluation, and control. Setting up a small business enterprise: identifying the business opportunity- the importance of creativity, opportunities in various sectors, stages for setting up of a small enterprise, Concept of elevator pitch. Business plan: meaning, Objectives, preparation.

1. Project
Unit 4

2.  An entrepreneur has an infinitely wide choice with
respect to his project in different dimensions such as
product/service, market, technology, equipment, scale
of production, time phasing and location.

3. Meaning of Project:
 No two projects are ever exactly alike.
 A project is always a journey into the unknown, fraught
with risk.
 Projects typically demand the use of resources that are
scarce or expensive, but which have to be deployed
over a most complex frame work of tasks.
 Giitinger has defined it as the whole complex of
activities involved in using resources to gain benefits

4. SMART (Objectives of Project)
 Specific
 Measurable
 Achievable
 Relevant (and realistic)
 Trackable

5. Project Classisfication
 Quantifiable projects
(industrial development, power generation etc) and Non-
Quantifiable projects (health, education etc)
 Sectoral Projects
 Techno-economic projects
(1. Factor intensity-oriented classification (capital
intensive or labour intensive),
2. causation-oriented classification (demand based or raw
material based),
3. Magnitude-oriented classification)

6.  Financial Institutions classifications
(New projects, expansion projects, modernisation projects,
diversification projects)
 Services projects (welfare projects, service projects,
research and development projects, educational
projects)

7. Importance of a project
 Become the catalytic agents of economic development
 Initiative the process of development-production,
employment generation and so on
 Also initiate development of basic infrastructure and
environment
 Project commitments cannot be easily reversed
 Accelerate the process of socio-cultural development

8. Project Management:
 The purpose of project management is to minimize,
contain or counter the risks, and organize and direct
the resources so that the project is finished in time,
within budgeted costs and with the functional or other
design objectives fulfilled.

9. Phases of a project
management
 Identification
 Selection
 Formulation
 Appraisal
 Implementation
 Management

10. Project Ideas
 It is the first and foremost task of an entrepreneur to
find out suitable business which is feasible and
promising and which merit further examination and
appraisal.
 Since the good project ideas are elusive, a variety of
sources should be tapped to stimulate the generation of
project ideas.

11. Sources of Project Ideas
 Project ideas could originate from the various sources viz.,
➢ Success story of a friend/relatives
➢ Experience of others in manufacture/sale of product
➢ Examining the inputs and outputs of industries
➢ Plan outlays and government guidelines
➢ Suggestions of financial institutions and developmental agencies
➢ Investigation of local materials and resources
➢ Economic and social trend of the economy
➢ New technological developments
➢ Project profiles and industrial potential surveys
➢ Visits to trade fairs
➢ Unfulfilled psychological needs
➢ Possibility of reviving sick units

12. Purpose and Need for Project
Identification
 The entire economic management planning is based on two
fundamental assumptions. i.e.
a) limited means and
b) unlimited ends.
 A planner has to select few important needs to cut it into
size of his/her means.
 This may be treated as fixing the priority is called
identification of project.
 It helps in elimination process.
 Identification and selection of a project is a scientific
process.
 This process is based on certain essential conditions.
 It may differ from project to project.

13. The essential conditions which should be taken into
consideration for identification and selection of
production projects are as follows:
 Project should be in conformity with the economic
needs of the area.
 The input-output ratio should be optimum.
 The purpose of the project is to increase the production
and employment of the area.
 Thus, the above said conditions will differ due to
resources availability, use pattern and other relevant
conditions of the area.
 Besides that, project should also consider certain
national priorities.

14. Steps in Project Identification
 Project ideas are like other ideas which don’t take
concrete shape immediately.
 An idea is first born, it is under incubation for
sometime and subsequently it begins to take some
definite shape.
 This project identification may be broadly divided
into four stages, viz.,

15.  Conceptual stage - where project ideas are generated
 Screening stage - at which unviable ideas are eliminated
 Identification stage - at which viable projects are
selected
 Pre-feasibility state - at which pre-feasibility studies are
taking up

16. Screening of Project Ideas
 It can be done with the help of testing the following
conditions of the propositions.
 Consistency with governmental priorities
 Availability of inputs
 Adequacy of market
 Reasonableness of cost Acceptability of risk level etc.

17. ➢ No contrary environmental effects to governmental regulations
➢ No difficulty in obtaining license.
➢ Capital requirement within manageable limit
➢ Obtaining technical know-how
 Availability of raw materials at a reasonable cost
➢ Obtaining power supply
➢ Total present domestic market
➢ Competitors and their market shares
➢ Export market
➢ Quality price profile of the product
➢ Barriers to the entry of new units
➢Economic social and demographic trends favourable to increased
consumption
➢ Patent protection
➢ Cost of material inputs, labour costs, factory overheads
➢ General administration expenses, selling and distribution costs.

18. Methodology for Project
Identification
 To make a viable project it should be linked with the
actual circumstances prevailing in the area.
 Without knowing the basic information relating to socio-
economic conditions of the area, it is difficult to draw a
suitable project for the area.
 Most of the project fail because they were not based on
local problems.
 Assumptions based on macro level information may fail
to watch at micro level.
 Survey is a technique to unearth the hidden information
which are vital to identify the basic requisites of
project i.e. need, resources and priorities

19. Project Identification for an
Existing Company
 Existing companies essentially large scale company form
of organisations are continuously developing various
projects for their developmental purposes.
 An existing company which seeks to identify new
project opportunities should undertake a “SWOT”
analysis.

20. A brief summary of the points
required for SWOT analysis is
given below:
➢Availability of internal financial reasons for new projects
➢ Capability of raising external financial resources
➢ Availability of production facilities
➢ Technological capabilities of the company
➢ Availability of different sources of raw materials and its utilisation
➢ Availability of infrastructural facilities
➢ Distribution network of the company
➢ Capability of top management of the company
➢ Likely changes in the governmental policies
➢ Possibility of evolving new technology and its impact on the cost structure of
the company
➢ Existence and severity of competition
➢ Changes in the customers preferences, tastes etc.

21. Project Selection
 Selection of projects is based on:
 Benefits: A measure of the positive outcomes of the project. These are
often described as "the reasons why you are undertaking the project". The
types of benefits of eradication projects include:
 Economic
 Social and cultural
 Fulfilling commitments made as part of national, regional or international plans
and agreements.
 Feasibility: A measure of the likelihood of the project being a success, i.e.
achieving its objectives. Projects vary greatly in complexity and risk.
 By considering feasibility when selecting projects it means the easiest
projects with the greatest benefits are given priority.

22.  The benefits of completing the Project Selection are:
 a transparent and documented record of why a
particular project was selected
 a priority order for projects, that takes into account
their importance and how achievable the project is.

23. Criteria for selecting a
particular project
 After gathering a large number of project profiles, the
entrepreneur should consider the following criteria for
selecting a particular project:
 Investment size
 Location technology
 Equipment
 Marketing

26. Project formulation
 Project formulation is an investigating process which
precedes investment decision.
 Formulation of projects involves scientific procedure.
 The project formulation stage involves the
identification of investment options by the enterprise.

27. Stages in Project Formulation
The different stages in the project formulation process are
briefly described as follows:
A. Feasibility analysis
B. Techno-economic analysis
C. Project design and network analysis
D. Input analysis
E. Financial analysis
F. Social cost-benefit analysis and
G. Pre-Investment Appraisal

28. A. Feasibility Analysis
 Feasibility analysis is the first stage in the process of
project development.
 The purpose of the analysis is to examine the
desirability of investing in pre-investment studies.
 For this purpose it is essential to examine project idea
in the light of the available internal (inputs, resources &
outputs) and external constraints (environment).

29. B. Techno-Economic Analysis
 Techno-economic analysis is primarily concerned with
the identification of project demand potential and the
selection of the optimal technology which can be used
to achieve the project objectives.
 The analysis provides necessary material on which the
project design can be based.
 It also indicates whether the economy is in a position to
absorb the output of the project or not.

30. C. Project Design and
Network Analysis
 Project design is the heart of the project entity.
 It identifies the flow of events which must take place
before a project can start yielding the results for which
it has been set up.
 The inter-relationship between various constituent
activities of a project is most conveniently expressed in
the form of a network diagram

31.  Project design and network analysis make available to
the project formulation team a clear picture of the
work elements of the project and also their sequential
relationship.
 This presentation the way for detailed identification
and quantification of the project inputs, an essential
step in the development of the financial and cost-
benefit profile of the project.

32. D. Input Analysis
 The objective is to identify and quantify the project
inputs and to assess the feasibility of a sustained supply
of these inputs all through the effective life span of the
project.
 Input analysis uses the network plans for developing the
input characteristics of the project.
 If thereafter proceeds to evaluate the availability of the
inputs both in quantitative as well as qualitative terms.
 Resource requirements estimates form the basis of costs
estimates of the project and are, therefore, essential
for developing the financial profile and the cost-benefit
profile of the project.

33. E. Financial Analysis
 The objective of financial analysis is to develop the
project from the financial angle and to identify these
characteristics.
 Financial analysis concerns itself with the estimation of
the project costs, estimation of project funds
requirements.

34. F. Cost Benefit Analysis
 In judging the overall worth of the project, the effect
which the project will have on society as a whole is very
material.
 While financial analysis evaluates a project from the
profitability point of view, social cost benefit analysis
views it from the point of view of rational viability, the
cost-benefit analysis however takes into account not
only the direct costs and benefits which will accrue to
the project implementing body but also total costs
which all entities connected with the project will have
to bear and the benefits which will be enjoyed by all
such entities.

35. G. Pre-Investment Appraisal
 Pre investment appraisal is the process of consolidating
the results of feasibility analysis, the techno-economic
analysis, the design and network analysis, the input
analysis, the financial analysis and the cost benefit
analysis, so as to give the investment proposition a final
and formal shape.
 The sum total of the pre-investment appraisal is to
present the project idea in a form in which the project
sponsoring body, the project implementing body and the
outside agencies can take investment decision regarding
the proposals.

36. Criteria to be Followed
 The main criteria in the project formulation process
are:
 Forecasting - understanding and precisely identifying
the objectives/needs/goals (regional/ state/ national/
international) of the unit/society/economy on a
sustained basis.
 Setting up priorities and choosing the goals that are
more urgent
 Searching for alternations and carrying out feasibility
studies to pick up projects that appear most beneficial
and desirable.
 Carrying out detailed studies of the project so selected.

37.  Estimating the needed resources (human and physical)
and finding the yearly cost and benefit of project.
 Arranging funds -both approval and allocation. The
successful implementation of any project depends upon
the timely availability of the required resources as per
projections.
 Preparing of time schedule for all jobs so that the
physical and financial targets of the projects are phased
appropriately.
 Distributing the works to various departments or
agencies having the appropriate technical expertise.

38. Cont…
 Execution and controlling the project. This requires
frequent reviewing, updating and constant action to
restore the operation to its planned characteristics.
 Evaluating the performance of each project to ensure
the worth of good or service for each rupee to be spent.

39. Project Appraisal – Market,
Technical, Financial,
Commercial, Managerial and
Social Aspects
 The exercise of project appraisal simply means the
assessment of a project in terms of its economic, social
and financial viability.
 This exercise basically aimed at determining the
viability of a project and sometimes also in reshaping
the project so as to upgrade its viability i.e. it aims at
sizing up the quality of projects and their long-term
profitability.

40.  The art of project appraisal puts more emphasis on the
economic and technical soundness of the project.
 Hence, the process of appraisal should require more
dynamic approach as it is linked with a sense of
uncertainty

41. Appraisal Process
 Project appraisal is a scientific tool.
 It follows specific pattern.
 This process usually involves six areas of appraisal such
as
 market appraisal,
 technical appraisal,
 financial appraisal,
 profitability appraisal,
 managerial,
 and social appraisal.

42. Market and Demand Appraisal
 Appraisal of commercial viability means assessment of
marketability of the end-product.
 Therefore, at the time of assessment of commercial
viability, the following points require careful
consideration:
➢➢ Size and prospective growth of the market which the
unit is required to cater like nature of population, their
purchasing power, their educational background, fashion
etc.
➢➢ Demand and supply position of the product in the
national and international market

43. ➢➢ Nature of competition
➢➢ Pricing policy including prospective prices vis-a-vis
the quality of the product
➢➢ Marketing strategy and selling arrangements made by
the unit adequacy of sales fore:
➢➢ Export potential
➢➢ If the product is an important-substitute, the
position regarding existing imports in the country.

44. Technical Appraisal
 A project is considered to be technically feasible, if it is
found to be ‘sound’ from technical and engineering
point of view.
 It is an attempt to find out how well the technical
requirements of the unit can be met, which location
would be most suitable and what the size of plant and
machinery should be.

45.  The fundamental objective of appraising a project from the technology
point of view is to justify the present choice and provide an insight into
future technological developments. Other objectives are:
 To justify the goal compatibility of a project with the preferred
technology;
 To seek a better available alternative technology which is both cost
effective and efficiently manageable;
 To seek such a technology that can go with existing skill levels of team
members or requires little orientation and training programmes;
 To seek a better technology that is not detrimental to the overall
environment.

46.  The technology that is used in projects can be classified on the basis of:
 Purpose for which it is applied;
 Level at which it is used;
 Nature of skills applied while using the technology.
 On the basis of purpose, the technology can be:
 Manufacturing technology -textile industries, steel industries, etc.,
 Extraction technology-oils, petroleum products, coal and pig iron, etc.,
 Conversion technology -cement, sugar, etc.

47. Appraisal of Managerial
Competence
 This is the most difficult job to evaluate the “ MAN or
MEN” behind the project.
 It has been the practical experience of the bank/
financial institutions that even the most technically
feasible and financially/commercially viable project has
been a total failure because of lack of management
experience.
 Unfortunately, there is no scientific yardstick by which
managerial competence can be judged objectively.
 ‘Principle of three Cs’ i.e. Character, Capacity and
Credit worthiness.

48. Financial Appraisal
Financial appraisal usually examines two
aspects of finance:
 The cost of the project i.e., the amount
required to complete the project and
bring it to normal operation
 The means of financing the cost i.e. the
sources from which the required funds are
to be raised.

49. Profitability Analysis
 The financial projection such as profitability estimates,
cashflow estimates and projected balance sheets are
the basis for assessing the viability of the project.
 Therefore, verification of profitability estimates is
highly important for the proper appraisal of a term loan
proposal.

50. Social Cost Benefit Analysis
(SCBA)
 It is a methodology for evaluating investment projects
from social point of view.
 SCBA seeks to assess the utility of a project to society as
a whole.
 It attempts to separate all the expected changes viz.
economic, social and environmental likely to arise as a
result of implementing the project.

51.  Social cost benefit analysis (SCBA) is a perfect necropsy
where the identification and determination of the best
among project alternatives is made with reference to a
country’s economic and social prerogatives.

52. SCBA focuses on the following
objectives:
 to contribute effectively to GDP of an economy;
 to aid in economic development;
 to justify the utilisation of economy’s scarce of growth;
 to maintain and protect environment from pollution;
 to benefit the rural poor and reduce regional
imbalances

53. Before implementing the action plan,
it is important to ensure that all the
roles and responsibilities are
distributed and understood. Source:
WSP (2009)

55. Objectives of the
Implementation Phase
 The objectives of the implementation phase can be
summarised as follow:
 Putting the action plan into operation (PHILIP et al. 2008).
 Achieving tangible change and improvements (PHILIP et al.
2008).
 Ensuring that new infrastructure, new institutions and new
resources are sustainable in every aspect (MORIARTY et al.
2007).
 Ensuring that any unforeseen conflicts that might arise
during this stage are resolved (MORIARTY et al. 2007).
 Ensuring transparency with regard to finances (MORIARTY
et al. 2007).

56.  Project implementation (or project execution) is the
phase where visions and plans become reality.

58. Technical implementation is one part
of executing a project. Source: WSP
(2000)

60. PERT and CPM
 The program (or project) evaluation and review
technique, commonly abbreviated PERT, is a statistical
tool, used in project management, which was designed
to analyze and represent the tasks involved in
completing a given project.
 First developed by the United States Navy in the 1950s,
it is commonly used in conjunction with the critical path
method (CPM).

61.  PERT is used for projects in which activity times are
unknown.
 For example, take a research and development project
(R&D).
 In an R&D project, the amount of time to complete a
given task is unpredictable. In such a case, PERT is the
best choice, since it allows planners to allocate three
estimates for completion times – the most likely, the
most optimistic and the most pessimistic.

62.  The activities involved in a construction project, on the
other hand, are much more predictable, and may not
need three estimated completion times.
 If this is the case, CPM may be more appropriate, since
unlike PERT, CPM also allows for planners to make
trade-offs between the cost of the project and the
amount of time needed to complete it.

63.  Project management can be understood as a systematic
way of planning, scheduling, executing, monitoring,
controlling the different aspects of the project, so as to
attain the goal made at the time of project
formulation.
 PERT and CPM are the two network based project
management techniques, which exhibit the flow and
sequence of the activities and events.
 Program (Project) Management and Review Technique
(PERT) is appropriate for the projects where time
needed to complete different activities are not known.
 On the other hand, Critical Path Method or CPM, is apt
for the projects which are recurring in nature.

64. Key Differences Between
PERT and CPM
 The most important differences between PERT and CPM are provided
below:
 PERT is a project management technique, whereby planning, scheduling,
organising, coordinating and controlling of uncertain activities is done.
CPM is a statistical technique of project management in which planning,
scheduling, organising, coordination and control of well-defined activities
takes place..
 While PERT is evolved as research and development project, CPM evolved
as construction project.
 A deterministic model is used in CPM. Conversely, PERT uses probabilistic
model.
 There are three times estimates in PERT i.e. optimistic time (to), most
likely time ™, pessimistic time (tp). On the other hand, there is only
one estimate in CPM.

65.  PERT technique is best suited for a high precision time estimate, whereas
CPM is appropriate for a reasonable time estimate.
 PERT deals with unpredictable activities, but CPM deals with predictable
activities.
 PERT is used where the nature of the job is non-repetitive. In contrast to,
CPM involves the job of repetitive nature.

68.  A Gantt chart, commonly used in project
management, is one of the most popular
and useful ways of showing activities
(tasks or events) displayed against time.
On the left of the chart is a list of the
activities and along the top is a suitable
time scale. Each activity is represented by
a bar; the position and length of the bar
reflects the start date, duration and end
date of the activity. This allows you to see
at a glance:

69.  What the various activities are
 When each activity begins and ends
 How long each activity is scheduled to last
 Where activities overlap with other activities,
and by how much
 The start and end date of the whole project

73. PROJECT EVALUATION

75.  Design, monitoring and evaluation are all part of
results-based project management.
 The key idea underlying project cycle management, and
specifically monitoring and evaluation, is to help those
responsible for managing the resources and activities of
a project to enhance development results along a
continuum, from short-term to long-term.

77. Project control
 Control is the process of maintaining oversight over the
use of the resources on the project to determine how
well the actual project results are being accomplished
to meet planned project cost, schedule, and technical
performance objectives.

78. ( Source: David I. Cleland, Project
Management: Strategic Design and
Implementation, pp. 325)
Fig: The project control system.

79. SETTING UP A BUSINESS
ENTERPRISE
 Promotion of a business enterprise involves several decisions. Promotion of
a new business enterprise is like the birth of a child.
 The person who has a business idea and takes steps to launch a business
enterprise is known as an entrepreneur.

80. Identifying the
business opportunity

88.  An entrepreneur, he has to select feasible and
rewarding opportunity to choose such goods business
opportunity. For this which purpose he has to evaluate
following idea and understand gap between demand and
supply
 1. Study the government rules and regulations regarding
different business opportunities
 2. Extensive study of promising investment opportunity
 3. SWOT analysis of business potential
 4. market survey

91. Importance of
creativity

96. Innovation and the
entrepreneur
 Innovation is the specific function of entrepreneurship.
 It is the means by which the entrepreneur either creates new
wealth-producing resources or endows existing resources with
enhanced potential for creating wealth.
 Innovation is both conceptual and perceptual and would-be
innovators must go out and look, ask and listen.
 Successful innovators use both the right and left sides of their
brains.
 They look at figures.
 They look at people.
 They analytically work out what the innovation has to be to satisfy
the opportunity.
 Then they go out and look at potential product users to study their
expectations values and needs

97. Inventors and Innovations
 Bill Gates: Microsoft
 Richard Branson: Virgin group
 Henry Ford: Ford Motor Company
 Michael Dell: Dell Inc.

98.  The importance of creativity and innovation in business
Innovation and creativity have become critical skills for achieving success
in business, and the need for creative problem solving has arisen as more
and more management problems require creative insights in order to find
suitable solutions.
 Without creativity there is no innovation
Creativity is the ability to produce new and at times unique ideas, and
innovation is the implementation of that creativity, whether that be a new
idea, solution, process, or product.
 Creativity is the driving force behind innovation and looking at things from
a different perspective.
Creativity involves breaking down and restructuring our knowledge about
a subject in order to gain new insights.
Business creativity is what keeps businesses alive and thriving.
 It is a thinking skill that all workers possess, but few are given the means
and opportunity to use.

99.  Why is creativity important in business?
Creativity and innovation within well-run businesses is a sure path to
success. Stimulating creativity and creative problem solving will:
• lead to improvements in the process of solving problems
• propel innovation forward
• increase the productivity of the business
• give that competitive edge that every business is striving to achieve
 Where does it come from?
Creative ideas and innovative approaches can come from almost anywhere:
• your partners
• customers
• target groups,
• employees • marketing experts, who can bring you fresh perspectives and
ideas.

109. Opportunities in Various
sectors
 The various business opportunities, for example,
available in the environment include but are not
confined to the following only:
 1. Tourism:
 By now, tourism has emerged as number one largest
smokeless and fast growing industry in the world due to
its ample promises and prospects. Presently, it accounts
for 8% of the world trade and around 20 % of service
sector in the world.
 Recognizing the India’s vast tourism potential, the
World Travel and Tourism Council (WTTC) has predicted:
“India has potential to become number one tourist
destination in the world

110.  Automobile:
 India has made much headway in automobile industry and by now has
emerges as a hot spot for automobiles and auto-components. A cost-
effective hub for auto components sourcing for global auto makers, the
automobile sector is by all indications a potential sector for entrepreneurs
in India.
 India being one of the world’s largest manufacturers of small cars with a
strong engineering base and expertise, there are still many segments
untapped and un-served those entrepreneurs can focus on in India’s
automobile and auto components sector in future.
 . Textiles:
 India is famous for its textiles since long time. What is worth mentioning
that the style of apparel is unique from region to state, thus, offering a
diversified market for apparel / textile products in the country? In view of
this, India holds good potential to grow as a preferred location for
manufacturing textiles taking into account the huge demand for garments.
 Places like Tripura and Ludhiana are, for example, now export hubs for
textiles in the country.

111.  4. Social Ventures:
 Like many other developmental activities,
entrepreneurship development is also context-specific.
The recent social issues providing a different
entrepreneurial context has given emergence to yet
another breed of entrepreneurship called’ social
entrepreneurship. With a view to ameliorate the social
fabric of the society, increasing number of
entrepreneurs has started their social ventures.
 SEWA and Lizzat Pappad, for example, are such two
social ventures hardly get missed while mentioning
about social entrepreneurship. Muhammad Yunus’s
‘Gramin Bank’ in Bangladesh is the worldwide known
social venture of the recent times.

112.  5. Software:
 India is known for its largest pool of world class software engineer’s world
over. IT sector has contributed substantially to the Indian economy. With
one of the largest pool of software engineers, Indian entrepreneurs can
set higher targets in hardware and software development.
 6. Engineering Goods:
 India continues to be one of the fastest growing exporters of engineering
goods, growing at a rate of 30.1 per cent. The government has set a
target of $110 billion by 2014 for total engineering exports. Entrepreneurs
must capitalise on the booming demand for products from the engineering
industry.
 7. Franchising:
 As a boon of New Economic Policy 1991 of the Government of India, India
is now well connected with the world economies. Hence, franchising with
leading brands to spread across the country could also offer ample
opportunities for young entrepreneurs especially in services sector like
education and health. With many small towns developing at a fast pace in
India, there is vast scope for spreading franchising business in the
countryside in future.

113.  . Education and Training:
 Knowledge being power, on the one hand, and Government’s increasing
emphasis on spreading education, on the other, there is a good demand for
education and online tutorial services in the country. With good facilities at
competitive rates, India can attract more students from abroad in coming
years signs of which have already started. Need-based educational
programmes with innovative teaching methods can help in a big way make
education develop and flourish as an industry in the country.
 9. Food Processing:
 Broadly, food processing industries include meat packing plant, sugar industry,
vegetable packing plants, etc. India’s mainstay is agriculture. Entrepreneurs
can explore many options in the food-grain cultivation and marketing
segments. Inefficient management, lack of infrastructure, proper storage
facilities leads to huge losses of food grains and fresh produce in India.
 10. Ayurveda and Traditional Medicine:
 India is well known for its herbal and Ayurvedic products. With increasing
awareness about the ill-effects of allopathic medicines, there will be a huge
demand for cosmetics, natural medicines and remedies in coming time.
 11. Organic Farming:
 Organic farming has been in practice in India for long time. That the
importance of organic farming will assume increasing importance in the
country is evident by the fact that increasing number of consumers especially
foreigners have been preferring to only organic products.

114.  12. Media:
 The media industry has also huge opportunities to offer to young entrepreneurs. With the
huge growth of this segment, any business in this field will help entrepreneurs reap huge
benefits. Television, advertising, print and digital media have seen a boom in business in
the recent times and is likely to grow more in coming times.
 According to a report prepared by the Federation of Indian Chamber of Commerce and
Industry (FICCI), digitisation, regionalisation, competition, innovation, process,
marketing and distribution will drive the growth of India’s media and entertainment
sector furthermore in coming times.
 13. Packaging:
 With China invading the markets with cheap plastic goods and packaging materials, there
is a good opportunity to develop good packaging materials to meet domestic and foreign
demand. There is a huge demand from various sectors like agriculture, automotive,
consumer goods, healthcare infrastructure and packaging sectors for plastics.
 14. Floriculture:
 India’s floriculture segment is small and unorganized. There is a lot to be done in this
lucrative sector. This is a huge market to be tapped considering the rising demand for
fresh flowers. More awareness and better farming and infrastructure can boost exports of
flowers in coming times.
 15. Toys:
 Another evergreen industry is toy manufacturing. India has potential to manufacture
cost-effective and safe toys for the world. With Chinese toys being pulled up for toxins,
the market for safe and good quality, toys beckons Indian entrepreneurs.

115.  16. Healthcare Sector:
 India’s healthcare sector dismal till the other day has now good prospects to
develop in future. The private sector, that is, individual entrepreneurs can
play a vital role in developing this sector. With medical tourism also gaining
momentum, the sector can attract foreigners who are looking for cost-
effective treatment in countries like India.
 17. Biotechnology:
 After the software sector, biotechnology opens a huge potential for
entrepreneurs in India. Global evidences confirm that agricultural bio-
technology has a major impact on agricultural productivity.
 18. Energy Solutions:
 In a power starved nation like ours, the need to develop cost-effective and
power-saving devices is gaining ever increasing significance. There is a huge
demand for low-cost sustainable energy saving devices as well.
 . These solar valleys can become hubs for solar science, solar engineering and
solar research, fabrication and manufacturing. So there is a big opportunity for
entrepreneurs in this sector as well in our country.
 19. Recycling Business:
 E-waste will rise to alarming proportions in the developing world within a
decade, with computer waste in India alone to grow by 500 per cent from 2007
levels by 2020, according to a UN study. Therefore, this sector also opens new
vistas of viable business opportunity for entrepreneurs in terms of e-waste
management and disposal activities in large size.

116. STAGES OF SETTING UP A
BUSINESS ENTERPRISE
 The major steps involved in the process of setting up a
new business enterprise include the following.
 Identification of business opportunity
 Generation of business idea
 Feasibility study
 Preparation of business plan
 Launching the enterprise

135. A business plan identifies the
key factor for the success