ENTREPRENEURSHIP MANAGEMENT

ENTREPRENEURSHIP MANAGEMENT
B.J.HADVALE March 25, 2017 SFIMAR.MMS-IV.EM.BJH

The early history of entrepreneurship in India
Culture, customs and tradition of the Indian people. Vaishyas are considered to venture into business As society grew and various occupational roles interchanged, people from different castes and status also entered into the entrepreneurial role. Britishers for their own ulterior motive destabilized the then self sufficient Indian economy. England flourished & India paid for that. After the Second World War, entrepreneurship received new meaning for attaining economic development within the shortest possible time. But in the process they were seriously handicapped by the rigid institutional setup, political instability, marketing imperfection and traditional value system. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

ENTREPRENEURSHIP • A theory of evolution of economic activities. • A continuous process of economic development. • An ingredient to economic development. • Essentially a creative activity or an innovative function. • A risk taking factor which is responsible for an end result. • Usually understood with reference to individual business. • The name given to the factor of production, which performs the functions of enterprise. • Creates awareness among people about economic activity. • Generates Self-employment and additional employment March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Socio-psychological & Economic Perspective of Entrepreneurship
Sociologists analyze the characteristic of entrepreneurs in terms of caste, family, social value and migration. Psychologists differentiate entrepreneurs from general population on various personality trials such as need for achievement, creativity, propensity to take risk, independence, leadership etc. Economists highlight situational characteristics such as occupational backgrounds, access to capital, business and technological experience and managerial skills with economic gains considered as characteristic of entrepreneur. An entrepreneur by implication is one who ventures out, prefers change as a means of growth and is prepared to take a calculated risk being aware of the possibilities of success as well as the consequence of failure. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

WHY ENTREPRENEURSHIP • To eradicate backwardness of the people. • Economic development of the region. • To analysis resource utilization. • Proper utilization of human potential. • Special attention to take up new activities. • To create self-employment and generation of employment opportunity. • Eradication of regional imbalances. • Better economic gain. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

AN ENTREPRENEURIAL CAREER
Entrepreneurship plays an important role in the economic growth and development of nation. Purposeful activity that includes initiation, promotion and distribution of wealth. An entrepreneur is a critical factor in socio-economic transformation. It involves risky and challenging tasks, needs utmost devotion, total commitment and greater sincerity with fullest involvement. It is not a one day job nor is it is bed of roses. Prosperity and success never come easily. They take time, hard work, systematic planning and business acumen. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

WHO IS AN ENTREPRENUER • Develops and owns his own enterprise • A moderate risk taker who works under uncertainty for achieving the goal. • innovative • Peruses the deviant pursuits • Reflects strong urge to be independent. • Persistently tries to do something better. • Dissatisfied with routine activities. • Prepared to withstand the hard life. • Determined but patient • Exhibits sense of leadership • Exhibits sense of competitiveness • Takes personal responsibility • Oriented towards the future. • Tends to persist in adversity • Converts/creates a situation into opportunity. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Characteristics of an Unique Entrepreneur
- High need for achievement - High need for power - Independence - Propensity to take risk - Personal modernity - Takes and gives support - Business acumen & enterprise - Leadership March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Self Check 1. Are you prepared to put in hard work for achieving your goal ? 2. Do you possess a strong will power to face and overcome the difficulties and setbacks and make the enterprise successful ? 3. Is your family environment congenial to undertake a new venture ? 4. Are you prepared to wait for the results of your efforts ? March 25, 2017 SFIMAR.MMS-IV.EM.BJH

WHAT – Information Needed
Prospects and scope of a particular industry or business Technical details Information about different fields in the particular trade Purpose of the business Responsibilities towards stakeholders Awareness of strength and weakness of product/service Factors affecting market demand Cost and model of distribution Manufacturing process Plant and machinery Availability of new materials Production costs Manpower Finance requirements Assessment of profitability and repayment of term loan. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

HOW - Implementation Plan
- Final selection of product - Prepare project report - Registration : - Apply to Financial Institutions - Provisional Registration - Obtain Licenses - Apply for shed, Land and Power etc. - Arrange capital - Plant Layout - Construct shed - Obtain utilities - Order for NOC - Order for raw materials supply etc. - Recruitment and training of manpower - Arrangements of sales network - Trial run/sales promotion technique - Introduction of product - Commercials production return. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Basic Qualitative Instincts
Basic qualitative instincts to survive in the world of uncertainty are – (1) Will, (2) Zeal, (3) Skill, and (4) Action. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

GENDER ISSUES IN ENTREPRENEURSHIP
First born usually in middle class family Parent in Business College educated Married Early 30’s Previous experience Desires independence Desires job satisfaction Small & young business March 25, 2017 SFIMAR.MMS-IV.EM.BJH

GENDER ISSUES IN ENTREPRENEURSHIP…
Self-confident Moderate risk taker High tolerance for ambiguity High energy level March 25, 2017 SFIMAR.MMS-IV.EM.BJH

PROBLEMS IN START UP Lack of business training
Availability of information Obtaining seed capital Marketing Personnel management Lack of experience in financial planning Weak collaterals Cash flow management Taxation March 25, 2017 SFIMAR.MMS-IV.EM.BJH

PSYCHOSOCIAL BARRIERS
Poor self image Inadequate motivation Discrimination Faulty socialisation Role conflict Cultural values Lack of courage & self-confidence Lack of encouragement Lack of social acceptance March 25, 2017 SFIMAR.MMS-IV.EM.BJH

PSYCHOSOCIAL BARRIERS contd.
Unjust socio-economic & cultural system Lack of freedom of expression Afraid of failute and criticism Susceptible to negative attitudes Non-persistent attitude Low dignity of labour Lack of leadership qualities March 25, 2017 SFIMAR.MMS-IV.EM.BJH

PRODUCT SELECTION BY WOMEN
General % Chemicals 20% Plastics 15% Textiles/hosiery 13% Engineering 12% Electronics 07% Leather 04% March 25, 2017 SFIMAR.MMS-IV.EM.BJH

SERVICES SELECTION BY WOMEN…
Domestic Food House-hold services Educational Beauty & personal care Health & nutrition Child care & old age care March 25, 2017 SFIMAR.MMS-IV.EM.BJH

ROLE OF ENTREPRENEURSHIP..
Introduction Entrepreneurship Current Perspective Scope of entrepreneurship development in India Promoting Entrepreneurship Encouragement at attitudinal and social level Encouragement at physical level What will be the qualities needed to succeed in this new world? Indian Entrepreneurs March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Indian Entrepreneurs Dhirubhai Ambani A proud son of this glorious state of Gujarat, and a man with long ties with this wonderful city of Ahmedabad, was the greatest example of this spirit of entrepreneurship! In a short span of less than 25 years, and without even the benefit of a formal education, Dhirubhai Ambani built Reliance, a first generation enterprise, into one of the world’s 200 most profitable companies! March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Dhirubhai Ambani He started out in life, working as a mere petrol pump attendant in Aden, Yemen. He had no technical knowledge, of any of the businesses he wished to create in India. He had just five hundred rupees in his pocket, a vision of what he wanted to achieve, an intrinsic faith in the latent demand potential of the Indian markets, a belief in the capabilities of Indian people, and a burning desire to succeed! The end result? He created Reliance, a Rs. 75,000 crore enterprise, in a single lifetime! March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Indian Entrepreneurs Azim H. Premji
In a world where integrity purportedly counts for naught, Azim Hasham Premji symbolizes just that. The 55-year-old Wipro chairman made international waves in 2000 ever since his group became a Rs 3,500-crore empire with a market capitalization exceeding Rs 500,000 million! If any stargazer had been foolish enough to predict in 1966 that a 21-year-old Indian at Stanford University would one day achieve all this, he'd have been laughed out of business. At that juncture, Premji was forced to discontinue his engineering studies in the States due to the untimely death of his father. Returning to India to take charge of a cooking oil company, the youth infused new life into the family's traditional mindset and trade. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Azim H. Premji Despite all the success, the media-shy Premji maintained a low profile, letting his work do all the talking. Until early last year the media broke the story that Azim Premji had become the second-richest man in the world… In spite of his billions, however, he still travels economy class and stays in budget hotels. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Indian Entrepreneurs N.R.Narayana Murthy An Indian IT chief who's really made it big without dropping his ethical precepts by the wayside is Nagawara Ramarao Narayana Murthy, Chairman of Infosys. Born in 1946, Murthy's father was a schoolteacher in Kolar district, Karnataka, India. A bright student, Murthy went on to acquire a degree in Electrical Engineering from Mysore University and later studied Computer Science at the IIT, Kanpur, India. The Infosys legend began in 1981 when Narayana Murthy dreamt of forming his own company, along with six friends. There was a minor hitch, though-he didn't have any seed money. Luckily, like many Indian women who save secretly without their husband's knowledge, his wife Sudha-then an engineer with Tatas-had saved Rs 10,000. This was Murthy's first big break. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

N.R.Narayana Murthy The decade until 1991 was a tough period when the couple lived in a one-room house. The second break came in 1991 when Indian doors to liberalization were flung open… Murthy grabbed the opportunity with both hands and has never looked back ever since. Today, Infosys is the first Indian company to be listed on the US NASDAQ. While working in France in the 1970s, Murthy was strongly influenced by socialism. The bubble was pricked, however, when he was arrested in Bulgaria on espionage charges. Today, he says: "I'm a capitalist in mind, a socialist at heart." It was this belief in the distribution of wealth that made Infosys one of the first Indian companies to offer employees stock-option plans. Infosys now has 400 employees who are dollar millionaires. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

N.R.Narayana Murthy Heading a company with the largest market capitalization hasn't changed Murthy's life-style much. The man still doesn't know how to drive a car! On Saturdays-his driver's weekly off-the Infosys chief is driven to the bus stop by his wife, from where he boards a company bus to work! Incidentally, Sudha Murthy is now chief of the Infosys Foundation, which channels Rs 50 million into charity every year. Simplicity, humility and maintaining a low profile are the hallmarks of this super-rich Bangalorean. And the man is principled to a fault. Murthy's unprecedented wealth has catapulted him into the public glare. After the kidnapping of Dr Rajkumar by forest brigand Veerappan, the Home Ministry has sounded out the local government about providing Z-category security to Murthy and Premji. Both characteristically turned down the offer.In a letter to the police top brass last month, Murthy said he was a simple man who had no intentions of annoying his neighbors and disturbing traffic with an intrusive entourage of security vehicles and personnel. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

PERSONALITY OF AN ENTREPRENEUR…
The 9 Personality Types of Entrepreneurs 1. The Improver: using your company as a means to improve the world. Your overarching motto is: morally correct companies will be rewarded working on a noble cause. Improvers have high integrity and ethics. Personality Alert: Be aware of your tendency to be a perfectionist and over-critical of employees and customers. Entrepreneur example: Anita Roddick, Founder of The Body Shop. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

2. The Advisor: High level of assistance and advice to customers. The advisor's motto is: the customers are right and please them. Companies built by advisors become customer focused. Personality Alert: Totally focused on the needs of their business and customers that they may ignore their own needs and ultimately burn out. Entrepreneur example: John W. Nordstrom, Founder Nordstrom. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

3. The Superstar: Business is centred around the charisma and high energy of the Superstar CEO. This personality often will cause you to build your business around your own personal brand. Personality Alert: Can be too competitive and workaholics. Entrepreneur example: Donald Trump, CEO of Trump Hotels & Casino Resorts. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

4. The Artist: Reserved but highly creative type. Often found in businesses demanding creativity such as web design and ad agencies. As an artist type you’ll tend to build your business around the unique talents and creativities you have. Personality Alert: You may be overly sensitive to your customer’s responses even if the feedback is constructive. Let go the negative self-image. Entrepreneur example: Scott Adams, Creator of Dilbert. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

5. The Visionary: A business built by a Visionary will often be based on the future vision and thoughts of the founder. You will have a high degree of curiosity to understand the world around you and will set-up plans to avoid the landmines. Personality Alert: Visionaries can be too focused on the dream with little focus on reality. Action must proceed vision. Entrepreneurial example: Bill Gates, Founder of MicroSoft Inc. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

6. The Analyst: If you run a business as an Analyst, your company will focus on fixing problems in a systematic way. Often the basis for science, engineering or computer firms, Analyst companies excel at problem solving. Personality Alert: Be aware of analysis paralysis. Work on trusting others. Entrepreneurial example: Intel Founder, Gordon Moore. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

7. The Fireball: A business owned and operated by a Fireball is full of life, energy and optimism. Your company is life-energizing and makes customers feel the company has a get it done attitude in a fun playful manner. Personality Alert: You may over commit your teams and act to impulsively. Balance your impulsiveness with business planning. Entrepreneurial example: Malcolm Forbes, Publisher, Forbes Magazine. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

8. The Hero: You have an incredible will and ability to lead the world and your business through any challenge. You are the essence of entrepreneurship and can assemble great companies. Personality Alert: Over promising and using force full tactics to get your way will not work long term. To be successful, trust your leadership skills to help others find their way. Entrepreneurial example: Jack Welch, CEO GE. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

PERSONALITY OF AN ENTREPRENEUR
9. The Healer: If you are a Healer, you provide nurturing and harmony to your business. You have an uncanny ability to survive and persist with an inner calm. Personality Alert: Because of your caring, healing attitude toward your business, you may avoid outside realities and use wishful thinking. Use scenario planning to prepare for turmoil. Entrepreneurial example: Ben Cohen, Co-Founder Of Ben & Jerry’s Ice Cream. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

KEY BEHAVIOURS FOR AN ENTREPRENEUS…
Are you patient? I started INeedMotivation.com in I can honestly tell you that the website barely made any money the first year. It took forever to get a great search engine ranking and of course for me to figure out all the necessary steps to make a business successful on the internet. If I wasn’t a patient person, I would have given up within that first year, thinking “oh this will never work”. Most people that ask me about becoming an entrepreneur do not have patience in the first place. Believe me, it takes time and thus tons of patience to create something of value that will stand the test of time. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Are you meticulous? When you have a business, there are so many aspects to it, and so many factors to consider, that you need to be thorough, otherwise you will not be successful. I have seen companies make huge mistakes in their advertising with spelling and the likes, that it’s just embarrassing. Every little detail needs to be checked and double-checked. I was always very methodical and meticulous in my work and in my studies, that when I entered the realm of entrepreneurship, I had what it took to make sure that every base was always carefully covered. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Are you thick-skinned? You need a thick skin to succeed in sales, and it’s not that much different as an entrepreneur. No matter what you do, you will always have certain clients that will completely demoralize you with their assessment of your product or service. The quicker you learn not to take it personally (and it’s hard when it’s your business and your creation), the more successful you will be. You will always come across people that will criticize you, no matter how great or valuable your product or service may be. You can bounce back very quickly, and that’s a needed skill in business. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Are you creative? As you manage a business, you will absolutely need to innovate. What makes a success story in business is not actually reinventing the wheel, but taking a current wheel and making it better. For that, you need to be creative. Some of my advertising ideas, some of my promotions, and some of my pricing points ended up being duplicated by my competitors. I take it as a compliment, and it just pushes me even more to make the wheel even better! I see so many people trying to do exactly what others are already doing…this is almost like shooting yourself in the foot. Dare to be different. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Are you flexible? In a business, you have a business plan (hopefully!). This plan is like your “script”. This is what you should follow if everything goes as planned. However, let me tell you that business never ever goes as you anticipated. This is why you need to be ready to go “off the script” and improvise. Being open-minded and flexible comes in handy in such situations. Especially in an internet business, things are always changing, so you need to be ready and willing to make changes at all times to keep up with the flow. You never know if a competitor will come up with something that may make your current product or service obsolete, so you have to be mentally prepared for such things to happen. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Are you a visionary? When you combine my two previous points, being creative and being flexible & open-minded, you have the potential to become a visionary. This is when you are able to assess the “big picture” in your industry and dictate the pace and/or direction it undertakes. Being able to envision what the business and the industry will be like in years to come is a skill that can guarantee that you will be around for the long haul. Right now, I have ideas and projects about things that I will be doing years from now. Being able to visualize your progression over time can become an extremely valuable tool to your enterprise. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

KEY BEHAVIOURS FOR AN ENTREPRENEUS
Are you adventurous? I often compare the business world to a jungle. Perhaps it’s even more dangerous and ruthless than an actual jungle at times! To really enjoy the ride in the world of entrepreneurship, you need to be able to sustain yourself outside of your comfort zone and have a sense of adventure. I mentioned earlier how things never go as planned, so you need to be ready to face the unknown. That can be scary to some, but for the adventurous type, it’s something they can thrive on. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

SUCCESS STORIES….. Mary Kay Ash.
The founder of Mary Kay Inc. started a cosmetics business. While she didn’t have a college education or any training, she successfully created a brand known throughout the world. To date, nearly half a million women have started Mary Kay businesses , selling cosmetics. Their appreciation for Mary Kay Ash is unwavering. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

SUCCESS STORIES….. Richard Branson.
Richard Branson is best known for his thrill seeking spirit and outrageous business tactics. He dropped out at the age of 16 and started his first successful business venture, Student Magazine. He is the owner of the Virgin brand and its 360 companies. His companies include Virgin Megastore and Virgin Atlantic Airway. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

SUCCESS STORIES….. Coco Chanel.
An orphan for many years, Gabrielle Coco Chanel trained as a seamstress. Determined to invent herself, she threw out the ideas that the fashion world deemed feminine, boldly using fabric and styles normally reserved for men. A perfume bearing her name, Chanel No. 5 kept her name famous. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

SUCCESS STORIES….. Simon Cowell.
Simon Cowell started in a mailroom for a music publishing company. He has since become an Artist and Repertoire (A&R) executive for Sony BMG in the UK, and a television producer and judge for major television talent contests including American Idol. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

SUCCESS STORIES….. Michael Dell.
With $1,000, dedication and desire, Michael Dell dropped out of college at age 19 to start PC’s Limited, later named Dell, Inc. Dell became the most profitable PC manufacturer in the world. In 1996, The Michael and Susan Dell Foundation offered a $50 million grant to The University of Texas at Austin to be used for children’s health and education in the city. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

SUCCESS STORIES….. Barry Diller.
Fox Broadcasting Company was started by a college dropout, Barry Diller. Diller is now chairman of Expedia, and CEO of IAC/InterActiveCorp which includes Home Shopping Network and Ticketmaster. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

SUCCESS STORIES….. Walt Disney.
Having dropped out of high school at 16, Walt Disney’s career and accomplishments are astounding. The most influential animator, Disney holds the record for the most awards and nominations. Disney’s imagination included cartoons and theme parks. The Walt Disney Company now has annual revenue of $30 billion. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

SUCCESS STORIES….. Debbi Fields.
As a young, 20 year old housewife with no business experience, Debbi Fields started Mrs. Fields Chocolate Chippery. With a recipe for chocolate chip cookies, this young woman became the most successful cookie company owner. She later renamed, franchised, then sold Mrs. Field’s Cookies. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

SUCCESS STORIES….. Henry Ford.
At 16, Henry Ford left home to apprentice as a machinist. He later started Ford Motor Company to manufacture automobiles. Ford’s first major success, the Model T, allowed Ford to open a large factory and later start the assembly line production, revolutionalizing the auto-making industry. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

SUCCESS STORIES….. Bill Gates.
Ranked as the world’s richest person from , Bill Gates was a college drop out. He started the largest computer software company, Microsoft Corporation. Gates and his wife are philanthropists, starting The Bill & Melinda Gates Foundation with a focus on global health and learning. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

SUCCESS STORIES….. Milton Hershey.
With only a fourth grade education, Milton Hershey started his own chocolate company. Hershey’s Milk Chocolate became the first nationally marketed chocolate. Hershey also focused on building a wonderful community for his workers, known as Hershey, Pennsylvania. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

SUCCESS STORIES….. Steve Jobs.
After attending one semester of college, Steve Jobs worked for Atari before co-founding Apple Computers. Now without the “Computers” in their name, Apple includes innovative products such as the iPod, iTunes, and most recently the iPhone. Steve Jobs was also the CEO and co-founder of Pixar before it merged with Walt Disney. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

SUCCESS STORIES….. Rachael Ray.
Despite having no formal training in culinary arts, Rachel Ray has made a name for herself in the food industry. With numerous shows on the Food Network, a talk show and cookbooks, high-energy Rachael doesn’t slow down. She has also appeared in magazines as well has having her own magazine debut in She knew she was a success when a website dedicated to bashing her was created. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

SUCCESS STORIES….. Ty Warner.
Sole owner, CEO, and Chairman of Ty, Inc., Ty Warner is a savvy, yet private business man. Ty, Inc., made $700 million in a single year with the Beanie Babies craze without spending money on advertising! He has since expanded to include Ty Girlz dolls, directly competing with Bratz dolls. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

SUCCESS STORIES Frank Lloyd Wright.
Having never attended high school, Frank Lloyd Wright surpassed all odds when he became the most influential architect of the twentieth century. Wright designed more than 1,100 projects with about half actually being built. His designs have inspired numerous architects to look at the beauty around them and add to it. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

LESSONS….. 1. Think success. To attain the kind of success that you want, you need to dream big. Every success story starts with big dreams. You need to have big dreams for yourself - which you want to be somebody rich, famous or fulfilled. So if you want more money, say "I will have money" in every step of the stairs. This technique will reinforce your goal and keep it fresh in your consciousness. 2. Be passionate with what you do. You start a business to change any or all part of your life. To attain this change, you need to develop or uncover an intense, personal passion to change the way things are and to live life to the fullest. Success comes easily if you love what you do. Why? Because we are more relentless in our pursuit of goals about things that we love. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

LESSONS….. 3. Focus on your strengths. Let's face it; you cannot be everything to everybody. Each of us has our own strengths and weaknesses. To be effective, you need to identify your strengths and concentrate on it. You will become more successful if you are able to channel your efforts to areas that you do best. 4. Never consider the possibility of failure. Ayn Rand, in her novel The Fountainhead, wrote, "It is not in the nature of man - nor of any living entity, to start out by giving up." As an entrepreneur, you need to fully believe in your goals, and that you can do it. Think that what you are doing will contribute to the betterment of your environment and your personal self. You should have a strong faith in your idea, your capabilities and yourself. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

LESSONS….. 5. Plan accordingly. You have a vision, and you have enough faith in yourself to believe that you can achieve your vision. To achieve your vision, you need to have concrete goals that will provide the stepping-stone towards your ultimate vision. Put your goals in writing; not doing so just makes them as intangible fantasies. You need to plan each day in such a way that your every action contributes to the attainment of your vision. 6. Work hard! Every successful entrepreneur works hard, hard and hard. No one achieves success just by sitting and staring at the wall every single day. Brian Tracy puts it out this way, "You work eight hours per day for survival; everything over eight hours per day is for success." If you are in a start-up phase, you will have to breathe, eat and drink your business until it can stand on its own. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

LESSONS….. 7. Constantly Look for Ways to Network. In business, you are judged by the company you keep - from your management team, board of directors, and strategic partners. Businesses always need assistance, more so small businesses. 8. Willingness to Learn. You do not need to be a MBA degree holder or PhD graduate to succeed in your own business. In fact, there are a lot of entrepreneurs who did not even finish secondary education. Studies show that most self-made millionaires have average intelligence. Nonetheless, these people reached their full potentials achieved their financial and personal goals in business because they are willing to learn. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

LESSONS….. 9. Persevere and have faith. No one said that the road to success is easy. Despite your good intentions and hard work, sometimes you will fail. Some successful entrepreneurs suffered setbacks and resounding defeats, even bankruptcy, yet managed to quickly stand up to make it big in their fields. Your courage to persist in the face of adversity and ability to bounce back after a temporary disappointment will assure your success. 10. Discipline yourself. Thomas Huxley once said, "Do what you should do, when you should do it, whether you like it or not." Self-discipline is the key to success. The strength of will to force yourself to pay the price of success - doing what others don't like to do, going the extra mile, fighting and winning the lonely battle with yourself. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

KEY TAKE HOMES….. 1. Do what you enjoy. 2. Take what you do seriously.
3. Plan everything. 4. Manage money wisely. 5. Ask for the sale. 6. Remember it's all about the customer. 7. Become a shameless self-promoter (without becoming obnoxious). 8. Project a positive business image. 9. Get to know your customers. 10. Level the playing field with technology. 11. Build a top-notch business team. 12. Become known as an expert. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

KEY TAKE HOMES 13. Create a competitive advantage.
14. Invest in yourself. 15. Be accessible. 16. Build a rock-solid reputation. 17. Sell benefits. 18. Get involved. 19. Grab attention. 20. Master the art of negotiations. 21. Design Your workspace for success. 22. Get and stay organized. 23. Take time off. 24. Limit the number of hats you wear. 25. Follow-up constantly. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Innovation & Entrepreneurship
25 March 2017 SFIMAR.MMS.IV.EM.BJH

Presentation Outline Entrepreneurship and marketing Innovation process
Intellectual Property Rights University research and Technology Transfer Intellectual Property Rights and Development Technology adoption and diffusion Marketing and adoption 25 March 2017 SFIMAR.MMS.IV.EM.BJH

ENTREPRENEURS MAKE THINGS HAPPEN.
Entrepreneurship ENTREPRENEURS MAKE THINGS HAPPEN. They are individuals who take a concept and convert it into a reality. A product, policy or institution. They become the champions of a new process, and they are engines of change. Entrepreneurship occurs in all areas of life. In business, academy, government and NGOs. Entrepreneurs are everywhere. Entrepreneurship can be used for good and evil. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Entrepreneurs Can Be Encouraged and Promoted
Openness to new ideas, freedom from investigation of operation, and promotion and pay based on merit encourage entrepreneurship. Excessive regulation, rigid hierarchy, lack of freedom, and excess control discourage entrepreneurship. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Requirements of Entrepreneurs
Entrepreneurs need a keen eye to understand economic, social, and scientific realities and the capacity to understand evolutionary processes in the future. They need to understand how institutions work, and individuals react in order to introduce activities and products that serve peoples’ need and that are sustainable economically and politically. Entrepreneurs also need dedication and commitment and the capacity to overcome failure. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Entrepreneurship and society
To encourage entrepreneurship, society should tolerate failure and give people a second chance. . Obviously, people need to pay for their mistakes, but if the payment is too high, people will not dare or take risk. Effective legal system is essential for positive entrepreneurship 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Marketing & environmental leadership
A leader may have to sell ideas, promote concepts, raise funds, recruit followers-which requires marketing. Environmental issues are abstract and removed from the daily reality for most people- marketing environmental issues is a challenge. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

What Are Innovations? Innovations are new ways of doing tasks.
It is useful to distinguish between process innovations and product innovations. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

The Innovation Process
An innovation starts as a concept that is refined and developed before application. Innovations may be inspired by reality. The innovation process, which leads to useful technology, requires: Research Development (up-scaling, testing) Production Marketing Use Experience with a product results in feedback and leads to improved innovations. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

The Innovation Process

Technology Adaptation and Appropriateness
Rarely is the same technological solution optimal everywhere. The value of an innovation depends on socio-economic,climatic, and ecological specifics it calls for. Important innovative activities adapt technological solutions to specific conditions. Export of technologies across regions without adaptation may lead to negative environmental side effects and waste. A technology may have several versions to meet needs and capabilities of various users in a region, e.g., large vs. small farmers’ versions of a machinery. The establishment of an innovative capability starts with a buildup of capacity to support and adopt innovations and new technologies. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Induced Innovations Innovations respond to need and economic conditions. Inventors, investors, and researchers put effort into solving problems, and that leads to innovations. Labor shortages led to mechanized equipments. Drought conditions led to improved irrigation. Energy crises led to higher efficiency cars. Farmers’ cooperatives were established during periods of excessive low farm prices. Environmental regulations trigger cleaner technologies. A tax on carbon will lead to improved stoves and power plants. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Various Types of Innovators
In the past most innovations were introduced by practitioners. The scientific discoveries of the late 19th century gave rise to science-based innovations (Edison, Bell, Marconi). Major companies (IBM, Sony, Bell, Kodak, GM) built their own research labs. Public sector labs made important agricultural and environmental discoveries. Universities and start-up companies are becoming major sources of new innovations. The ownership of a technology and leadership in its applications move between organizations over time. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Incentives for Innovations
Patents: Awards monopoly rights for years. Patent protection allows publication of research findings that leads to innovations. Patent rights (for certain applications) can be transferred. Patents are valid only where they are registered. Copyright protection: Pertains to books, brand names, and the media. Trade secrets: Protects against thefts. Plant breeders’ right: Allows exclusive sales of varieties and allows farmers to reuse seeds. Prizes: Awarded to winners of a contest for finding a technical solution to a problem. Indigenous knowledge is poorly protected. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

IPRs and Development Investments in R&D and new products will be much lower without the expected monopoly gains. Local industry and foreign investors benefit from patent protection, as is already the case in India. IPR constraints may inhibit domestic companies’ ability to develop new products. Added IPR knowledge may lead to gains: Production for local markets does not require obtaining rights to patents that are not registered locally. Developing countries can trade access to bio-diversity for access to technology. They can reach special agreements with universities and companies. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Investment in Research: A Key Element of Environmental Policies
Research enables discovery of basic environmental problems. Research provides better monitoring and management equipment to help identify environmental problems and monitor response. Public research enables sustaining development of technologies that may not be economical under existing prices. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Division of Labor Basic research: Gain more comprehensive knowledge or understanding of the subject under study, without specific applications in mind. Conventionally conducted by universities. Applied research: Apply knowledge. Often conducted by industries. Educational-industrial complex: University research has led to the creation of new firms and even industries, brought old ones down, and, in general, profoundly impacted rates of innovation in the larger economy. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Stakeholders in the Innovation Process
Universities, including research scientists, university administrators, and designated officers of technology transfer. Entrepreneurs, including start-up companies and venture capitalists. Incumbent corporations. Potential technology adopters and downstream producers who will use the technology Government regulators. Environmental and other special interest organizations. Consumers. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Uncertainty: Uncertain outcome of basic research.
Why Universities Do Not Do What Companies Do and Why Companies Do Not Do What Universities Do Uncertainty: Uncertain outcome of basic research. 2. Inappropriability or ‘nonmarketability’: Some results from basic research are not appropriable, because they occur at such fundamental levels of scientific analysis. 3. Spillovers: Some results from basic research can easily spill over to competitors in the same line of business that the results may actually help the competitors more than they help the company that conducted the initial research. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Institutional Arrangements: Incentives to University Researchers
Formulas for the allocation of OTT revenues from license royalties: -Most common formula: Equal sharing among the university (33%), the department (33%), and the employee inventor (33%). -Another common formula: 50%-50% sharing between the university and the inventor. -Average net revenue distributions: University (35%), department (25%), and faculty inventor (40%). 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Number of institutions reporting
Trends in Entrepreneurial Start-Ups Based on University Technologies: to 1999 Year(s) Number of institutions reporting Start-ups formed N=154 1,169 1994 N=156 241 1995 N=172 223 1996 N=168 248 1997 N=171 333 1998 N=176 364 1999 N=188 344 Total 2,922 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Adoption and Diffusion
The use of new technologies spreads gradually. There is a significant time lag between the time a new innovation is introduced and when it becomes widely used by producers or consumers. Diffusion is the aggregate process of product penetration. It is measured by the percentage of potential users who actually adopt a technology. Diffusion curves measure aggregate adoption as a function of time. They tend to be S-shaped. Adoption = Decision by a specific individual to use a technology. Diffusion is aggregate adoption. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

The S-Shaped Diffusion Curve

Stages of Diffusion We distinguish among:
Early adopters: More educated, innovative individuals who gain from technology. Followers: The majority of adopters who see its success and want to join in. Laggards: Less-advanced individuals who either do not adopt or adopt very late 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Adoption as Imitation Some explain the S-shaped behavior as the outcome of imitation. Contact among individuals is the driving force of diffusion. Profitability of the new technology, ease of use, and quality of technical support are factors that can enhance diffusion. VCRs, wireless communication, Bt cotton were technologies with a fast rate of diffusion, while personal computers had slower adoption rates. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Threshold Model The factors behind diffusion:
Heterogeneity of potential adopters. The individual decision process aimed at improving well-being. Dynamic forces that make technology more attractive. Source of heterogeneity (size, location, and human capital). Decision criteria (profitability, well-being, risk minimization). Dynamic processes that drive adoption (learning by doing, learning by using, network benefits). 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Application of the Threshold Approach
Mechanical innovations: Tractors and cars are adopted by larger farms and richer families. In the case of a tractor, L = size of farm a = saving per acre P = cost of tractor Adopt if P > aL L = P/a critical size. Critical size declines because P declines. As a result of learning by doing, a increases as a result of learning by using. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Other Examples Water-conserving technologies (sprinklers) increase water-use efficiency if: With traditional technology, 50% of applied water is actually consumed. 75% is consumed with sprinklers. It results in higher yield and water saving. Technology adoption occurs: In sandy soils and hills where the traditional technology is especially inefficient. Locations where the price of water is high. With high-value crops. Green Revolution technologies are high-yield varieties that require complementary inputs (fertilizers and sometimes water). They are adopted when: They have high yield and cost effects. Farmers have access to credit. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Adoption and Risk Impacts of technologies are unknown. Risk considerations slow adoption. One approach in assessing a technology: Maximize Expected benefits-a risk where a is a coefficient of risk aversion. Risk may be measured by a variance of profit. Policies that reduce risk include insurance (crop insurance enhances adoption) Diversification. An alternative approach: Select the technology with the highest benefit given that it yields minimum required benefits at the worst case scenario. This approach aims to assure sufficient resource during drought. Good inventories, banking systems, and asset accumulation possibilities reduce the need for protection against risks. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Adoption, Credit, Location, and Education
Lack of credit and high cost of credit are major impediments for adoption. Poorer consumers and farmers may be more constrained by risk and credit constraints. Adoption may be slower at far away locations because of less access to information and sources of technology, higher cost of inputs. In some cases, however, early adopters are at distance locations(if technology reduces transportation costs). Adoption requires a high learning cost -more educated individuals tend to be early adopters. When the technology is simple, sometimes less sophisticated individuals adopt first. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Adoption and Policy The government may enhance adoption through positive incentives such as: Price support of products produced with technologies. Extension and education. Credit subsidies. Insurance schemes. Cost-sharing arrangements. Negative incentives Regulation against existing technologies (pesticide regulation enhances biotechnology). Higher cost of inputs used intensively with existing technologies (water price hikes). Key elements of environmental policy are incentives to Induce innovation of greener products. Induce adoption of cleaner products. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Timing of Adoption Sometimes it is worthwhile to wait and see and not adopt immediately when benefits of technology exceed costs. Cost of technology may decline over time. You should wait if the reduction in technology cost> than the cost of waiting. When a technology has uncertain irreversible outcomes- waiting to learn more is prudent. Waiting prevent the opportunity of learning and improving a technology- the gains from waiting should be compared to the costs. 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Government & adoption Governments and NGOs are promoting and encouraging adoption of technologies Government is using incentives, initiate advertisement and promotional campaigns. Extension is an institution used for education and support of diffusion processes. Extension should complement private sector marketing of new technology -not replace it. In some cases extension’s clientele are mostly technology providers-not users Extension role is to provide balanced assessments of new technologies not advocate them. Extension role is adaptation of technology Extension may initiate and implement institutional innovations 25 March 2017 SFIMAR.MMS.IV.EM.BJH

Govt. Policies for Entrepreneurs
Small Scale and Ancillary Industries Small scale industrial units are those engaged in the manufacture, processing or preservation of goods and whose investment in plant and machinery (original cost) does not exceed Rs.1 crore. The investment limit of Rs. 1 crore for classification as SSI has been enhanced to Rs.5 crore in respect of certain specified items under hosiery, hand tools, drugs & pharmaceuticals, stationery items and sports goods by the Government of India. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Govt. Policies for Entrepreneurs…
1.2. Tiny Enterprises The status of ‘Tiny Enterprises’ may be given to all small scale units whose investment in plant & machinery is up to Rs. 25 lac, irrespective of the location of the unit. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Small Scale Service & Business Enterprises Industry related service and business enterprises with investment up to Rs. 10 lac in fixed assets, excluding land and building will be given benefits of small scale sector. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Indirect finance in the SSI sector will include credit to : Agencies involved in assisting the decentralized sector in the supply of inputs and marketing of outputs of artisans, village and cottage industries. Government sponsored Corporation/ organizations providing funds to the Weaker sections in the priority sector. Advances to handloom co-operatives. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Term finance/loans in the form of lines of credit made available to State Industrial Development Corporation/State Financial Corporations for financing SSIs. Credit provided by banks to Khadi and Village Industries Commission (KVIC) under the scheme for provision of credit to KVIC by consortium of banks for lending to viable Khadi and Village Industrial Units. Funds provided by commercial banks to SIDBI/SFCs will be eligible for inclusion under the priority sector as indirect finance to SSI. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Loans for setting up industrial estates. All advances to KVI sector, irrespective of their size of operations, location and investment in plant and machinery, will be covered under priority sector advances. Manufacture of common salt through any process may be considered as an industrial activity and credit provided by banks to units engaged in the manufacture of common salt which satisfy the norms of SSI Unit may be classified under advances to SSI. 1.10 Water mills (Gharat) has been recognized as an industrial activity and shall be eligible for registration as small scale industry. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Units engaged in ship breaking/dismantling are composite ones which also undertake the processing of scrap thus obtained and hence the entire activity can be covered under processing. Bank loans to bought leaf factories manufacturing tea are to be reckoned as priority Sector lending to small scale industry, provided the investment in plant and machinery (original cost) does not exceed the prescribed limits. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

The following items within the food and agro-based processing sector would be eligible for classification as priority sector for lending by banks : Fruit and vegetable processing industry Food grain milling industry Dairy products Processing of poultry and eggs, meat products Fish processing March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Bread, oilseeds, meals (edible), breakfast foods, biscuits, confectionery (including cocoa processing and chocolate), malt extract, protein isolate, high protein food, weaning food and extruded/other ready to eat food products Aerated water/soft drinks and other processed foods Special packaging for food processing industries Technical assistance and advice to food processing industries The food and agro-based processing units of small and medium size with investment in plant and machinery the investment ceiling (up to Rs. 5 crore) has been altogether withdrawn. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Software Industry Loans to software industry with credit limit upto Rs. 1 crore from the banking industry to be included under this item. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

2.2 Venture Capital Investment in Venture Capital will be eligible for inclusion in priority sector, subject to the condition that the venture capital funds/companies are registered with SEBI. However, fresh investments that may be made by Bank on or after July 1, 2005 shall not be eligible for classification under priority sector lending and the investments, which has already been made by Bank up to June 30, 2005, shall not be eligible for classification under priority sector lending with effect from April 1, 2006. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Banks may consider on merit, proposals received from State Industrial Development Corporations (SIDCs) and State Financial Corporations (SFCs) for sanction of term Finance/loans in the form of lines of credit. Such term finance/loans to the extent granted for/to the Small Scale Industrial (SSI) Units, will be treated as priority sector lending, subject to the observation of following Conditions: March 25, 2017 SFIMAR.MMS-IV.EM.BJH

SFC/ SIDC should maintain separate and distinct accounts of fresh disbursements made to SSI units and outstanding amounts there against. Periodical statements to be obtained from SFC/ SIDC to monitor the position. Annually, a certificate issued by SFC/ SIDC statutory auditors certifying that the outstanding borrowings from banks were fully covered by the non-overdue loans outstanding in respect of fresh disbursements made to SSI units from out of term finance/ lines of credit granted by banks. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

The rate of interest to be charged by banks on such term finance/ loans/ lines of credit will be in conformity with the directives on interest rates issued by the Reserve Bank from time to time. 3.3 In order to ensure adequate credit to this sector, the credit requirements of village industries and other SSI units having aggregate fund-based working capital limits upto Rs. 5 crores from the banking system, will be computed on the basis of a minimum of 20 percent of their projected annual turnover for new as well as existing units. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Funds provided by SIDBI to Commercial banks by way of rediscounting of bills of SSIs which are originally discounted by a commercial bank and rediscounted by SIDBI will be eligible for inclusion under the priority sector as indirect finance to SSI. 4.2 Funds provided by commercial banks to State Financial Corporations (SFCs) by way of rediscounting of bills of SSIs earlier discounted by the SFCs will be eligible for inclusion under the priority sector as indirect finance to SSI. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Para-banking activities such as leasing and hire purchase financing undertaken departmentally by bank will be classified as priority sector advances, provided the ultimate beneficiary satisfies the criteria laid down by RBI for treating such advances as advances to priority sector. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

COMMON GUIDELINES/INSTRUCTIONS for LENDING TO SSI sector
Based on the recommendations made by the Working Groups and High Powered Committees, appointed by the Government of India and the Reserve Bank of India, a set of comprehensive guidelines to be followed for advances to all categories of borrowers in the SSI sector were evolved. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Bank should give acknowledgement for loan applications received from the borrowers. All loan applications for SSI up to a credit limit of Rs.25,000/- be disposed of within 2 weeks and those up to Rs.5 lac within 4 weeks and those above Rs.5 lac. within 8 to 9 weeks provided the loan applications are complete in all respects and accompanied by a ‘check list’. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

A register should be maintained at branch wherein the date of receipt, sanction/rejection/ disbursement with reasons therefore etc., should be recorded. The register should be made available to all inspecting agencies. Rejection of applications for fresh limits/ enhan- cement of existing limits should not be done without the approval of the next higher authority. Sanction of reduced limits should be reported to the next higher authority immediately with full details for review and confirmation. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Assessment of working capital Guiding formats for appraisal of SSI loan proposal up to Rs. 25 lac and up to Rs. 2 crore have been shown in Appendix. Margin 15% to 25% as per H.O. guidelines and prevailing schemes of the bank. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Composite loan A composite loan limit of Rs.1 crore can be sanctioned by banks to enable the SSI entrepreneurs to avail of their working capital and term loan requirement through Single Window. 2.8. Delayed payment Under the Amendment Act, 1998 of interest on Delayed Payment to Small Scale and Ancillary Industrial Undertakings, penal provisions have been incorporated to take care of delayed payments to SSI units which inter-alia stipulates a) agreement between seller and buyer shall not exceed more than 120 days, March 25, 2017 SFIMAR.MMS-IV.EM.BJH

b) payment of interest by the buyers at the rate of one and a half times the prime lending rate (PLR) of SBI for any delay beyond the agreed period not exceeding 120 days. Further, Bank has been advised to fix sub-limits within the overall working capital limits to the large borrowers specifically for meeting the payment obligation in respect of purchases from SSI. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Funded Interest Term Loan Interest Free
Revised guidelines on rehabilitation of sick SSI units (based on Kohli Working Group recommendation) Following are broad parameters for grant of relief and concessions for revival of potentially viable sick SSI units. Interest on Working Capital Interest 1.5% below the prevailing fixed/prime lending rate, wherever applicable Funded Interest Term Loan Interest Free Working Capital Term Loan Interest to be charged 1.5% to 3% below the prevailing fixed/prime lending rate, wherever applicable. Term Loan Concessions in the interest to be given not more than 2% (not more than 3% in the case of tiny/decentralized sector units) below the document rate. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Revised guidelines on rehabilitation of sick SSI units
Term Loan Concessions in the interest to be given not more than 2% (not more than 3% in the case of tiny/decentralized sector units) below the document rate. Contingency Loan Assistance The Concessional rate allowed for Working Capital Assistance. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Mode of Disbursement of Loan As far as possible, disbursement of loan amounts sanctioned should be made directly to the suppliers of inputs such as raw materials implements, machinery, etc. However, Bank may continue the practice of obtaining receipts from borrowers. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Repayment programme should be fixed taking into account the sustenance requirements, surplus generating capacity, the break-even point, the life of the asset, etc., and not in an "ad hoc" manner. In respect of composite loan up to Rs.50,000/- to artisans, village and cottage industries, repayment schedule may be fixed for term loan component only (subject to SIDBI’s requirements being fulfilled). In the case of other borrowers affected by natural calamities, banks may convert drawings in excess of the value of security into a term loan repayable over a reason- able period of time and provide further working capital and extend/re-phase the instalements due under term loans. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Interest shall be charged at a rate as prescribed by Head Office from time to time. Interest shall be charged on this outstanding debit balance on working capital and on reducing balance in case of term loan. No penal interest should be charged by banks for loans under priority sector up to Rs.25,000/-. However, the issue of charging penal interests that should be levied for reasons such as default in repayment, non-submission of financial statements etc. have been incorporated in the Lending Policy of the Bank for loans above Rs.25,000/- March 25, 2017 SFIMAR.MMS-IV.EM.BJH

No service charges/inspection charges should be levied on priority sector loans up to Rs.25,000/- For loans above Rs.25,000/ as per H.O. Guidelines. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Table showing insurance exemption for the Category, Risk and the assets is given below: All categories of priority sector advances upto and inclusive of Rs.10,000/- Fire & Other risks Equipment and current assets (b) Advances to SSI sector upto and inclusive of Rs.25,000/- by way of – Composite loans to artisans, village and cottage industries All term loans Working capital where these are against non-hazardous goods Fire Equipment Current Aeests March 25, 2017 SFIMAR.MMS-IV.EM.BJH

9. Photographs of borrowers For the purpose of identification, branch should make arrangements for the photographs and also bear the cost of photographs of borrowers falling in the category of Weaker Sections. These guidelines are subject to any instructions that may be issued by the RBI from time to time. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Annexures A.General Guidelines on SSI Sector Landing—A - I and A - II
B.Check-list for SSI Entrepreneurs C.Check-list for Branch Managers--- SSI Proposals D.The guiding formats for Appraisal of SSI Loan Proposal up to Rs. 25 lac and also above Rs. 25 lac to Rs. 2 crore have been given in Appendix. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

March 25, 2017 SFIMAR.MMS-IV.EM.BJH

India's automotive industry
A key contributor to growth at 4.2% of GDP Industry’s turnover to touch USD 155 bn by 2016 World’s seventh largest automobile market now World's third largest by 2030, just behind China and the US. The global automotive sector is currently experiencing a significant downturn. Rapidly declining demand, frozen credit markets and depressed market confidence are forcing automotive companies to re-think their business strategies and operational tactics. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

ASSET MANAGEMENT INDUSTRY IN INDIA
With the Indian capital markets becoming increasingly active, backed by strong technology setups, the asset management industry has seen unprecedented growth rates. Comprehensive set of needs including actuarial, risk management, regulatory, transaction advisory, assurance and tax advice. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

GLOBAL BANKING CHALLENGES
In today’s highly regulated environment, banks and securities firms are facing increasingly complex challenges. Every day brings new demands to manage risk, achieve operational excellence and satisfy the divergent interests of stakeholders. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

CONSUMER PRODUCTS BUSINESSES
Whether it’s squeezed margins, brand erosion or new regulatory requirements, you need to think differently if your consumer products business is to prosper. Driving down costs while improving productivity, Manage risks , opportunities in emerging markets. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Government and PSUs Increasing demand for transparency and accountability on public policies. World’s governments to address challenges such as security and border controls, climate change, realignment in the global economy and ever-aging populations. Implement policy and drive benefits and growth through financial effectiveness, operational performance efficiencies and delivery of major programs, both on time and to budget. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

INSURANCE INDUSTRY Opened this sector for private players
Increasing foreign equity stake ‘Bancassurance’ in 2000, banks are entering Some recent developments in reforms for Pension & De-tariffing and liberalisation of FDI will boost the industry to grow and assist players to increase penetration in the market. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Life Sciences Life sciences companies — from emerging to multinational — are facing challenging times as stakeholder expectations are changing, development pipelines are declining and access to healthcare takes on new importance. Success requires flexible strategies and innovative business models. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Biotechnology Biotech companies are delivering new levels of health, prosperity and sustainability across the world. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Pharmaceutical Key drivers are reshaping the pharmaceutical marketplace, including the growing power of healthcare payers, providers and evolving customer needs. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Medical technology Fundamental drivers in the global healthcare economy suggest demand for medical technology products should be robust for years to come. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

India’s entertainment economy
The media and entertainment industry is undergoing rapid change at a very high speed. Constant pressure to embrace new technology, develop new distribution models, comply with new regulations and satisfy the demanding new consumer-turned-competitor. Entry strategy, private equity placement, IT security review, organization structure and performance management March 25, 2017 SFIMAR.MMS-IV.EM.BJH

INDIAN OIL & GAS INDUSTRY
Pegged at US 110 bn - which is about 15% of India’s gross domestic product - is one of the focus areas in the county’s rapidly growing economy. Energy demand grew at a CAGR of 4.57% between 1996 and 2006 as compared to the global average of 2.07% In the future, the demand supply gap is projected to increase even further, due to the high demand growth projected at 6.41% and 7.41%, respectively, from to While the challenges are immense, this rapidly industry also offers significant opportunities. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

NELP-VIII and CBM-IV Roadshows
The New Exploration Licensing Policy (NELP) VIII and Coal Bed Methane (CBM) IV rounds of bidding launched by the Government of India brings forth tremendous opportunities for the Oil & Gas industry, offering 70 blocks under NELP-VIII and 10 blocks under CBM-IV for bidding. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

INDIAN UTILITIES INDUSTRY
The key players in the sector are required to adapt to the dynamic environment while maintaining their focus on providing competitive electricity, gas and water services to customers. Generation companies are planning rapid capacity expansions. However, fuel linkages remain a key concern. Transmission companies are trying their best to deal with the evacuation of electricity but are faced with interconnection and capacity constraints. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

The distribution companies on the other hand are trying to reduce their losses and devise a secure revenue assurance model. Other challenges which the industry faces are regulations,e nvironment, technology, safety and performance concerns. This scenario offers a daunting task for various industry players to provide quality and reliable supply which is of paramount importance to the growing Indian economy. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

REAL ESTATE organizations and investors need to meet changing regulatory requirements and reduce financial risks to achieve sustainable growth. Exit strategies, vendor diligence, background research, corporate restructuring, fund raising and investor search. Buy-strategies, financial due diligence, contracting and negotiations, financing and closing. Feasibility studies, preparing business plans, conducting joint venture negotiations, commercial due diligence and hotel-operator tie ups. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Technology Industry driven by relentless innovation
Business advisory for growth; operational efficiencies; improve IT security profiles and compliances; fraud management and investigation; attain higher levels of corporate governance and financial control; manage complexities arising out of cross-border transactions; mergers and integrations; human capital management; and outsourcing advisory Consistent, high-quality, seamless service — wherever you are in the world March 25, 2017 SFIMAR.MMS-IV.EM.BJH

DOMESTIC BPO MARKET Five areas: Service-line demand evolution, Sector-wise demand evolution, Buyers’ and Suppliers’ landscape and Key future trends. India’s domestic BPO industry is favourably positioned to benefit from its established delivery capabilities, which exert a considerable influence on buyers’ decision to opt for outsourcing. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Telecommunications Challenges of growth, convergence, business transformation, technological change and increasing regulation Today, there are about 500 million telecom subscribers with a net addition of more than 11 million new mobile subscribers per month. There exists enormous business potential for telecom companies on account of country’s low teledensity, which currently stands a bit above 42%. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Telecommunications Government would auction spectrum for 3G and Broadband Wireless Access (BWA) services and Mobile Number Portability (MNP) would come in to action. The entry of Mobile Virtual Network Operators (MVNOs) also adds to the list. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

RETAIL MARKET The world’s largest unexploited RETAIL MARKET, recognised as the leading destination for retail investment in the 2006 Global Retail Development Index Organised retail still only accounts for less than 4% of the overall sector. Rapid development of real estate FDI of up to 51% is now permitted in an Indian company operating in the retail sector under a single brand. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

RETAIL MARKET Overseas retailers are also able to operate via franchise and strategic licensing agreements as well as wholesale operators. One quarter of the world’s youth live in India. More than 50% of the Indian population is below 25 years of age. By 2050, India will have overtaken China as the world’s most populous nation. Growing consumer class and rising disposable incomes March 25, 2017 SFIMAR.MMS-IV.EM.BJH

RETAIL MARKET 209 million households across the country. Although only six million of these are classified as rich, a further 22% are regarded as the consuming classes. This figure is expected to rise to 32% by 2010 Disposable incomes are expected to rise at an average of 8.5% per annum until 2015 Availability of cheap credit is increasing One of the world’s fastest growing economies; 3rd largest country in the world in PPP terms GDP has more than doubled in the last ten years March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Rising disposable incomes, cheap consumer credit, highly attractive demographics, a booming economy and an increasingly liberal regulatory environment. No wonder, retailers globally are getting serious about India. Though the prize may be great the road is still a tough one. From understanding local tastes and tailoring the product offering, to securing access to the right real estate, entrants to the world's largest untapped retail market face some difficult challenges. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Opportunities waiting…..RUSH!!!
Beauty Salons & Supplies Business Services Clothing Computer & Internet Consultancy Consumer Services Dealers and Distributors Education & Training March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Financial Florists Food and Beverages Health Care & Fitness Home Based Businesses Hotels Immigration Interior March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Jewellery MLM Businesses Others Play School & Activity Centre Retail Travel Schools March 25, 2017 SFIMAR.MMS-IV.EM.BJH

LO, DO BUSINESS…..1 BUSINESS OPPORTUNITIES BY INVESTING Rs. 30,000/-
Setup Small Scale Industry, Install Machine of Making paper Cona/ Plate, C.F.L. Bulb & Candle in Rs.30,000/- We provide Raw material & 100% Buy/ Back Finished Goods with Training+ Transport... Online Entrance Tests Packages Golden Business Opportunity: Master Franchise invited to open franchise for selling online entrance test packages of CAT/MAT/IIT-JEE/AIEEE etc. Latest News for related business: CAT & MAT 2009, ETC. Franchise like Mcdonald's, Dominos or Pizza Hut ?? Greetings !! Franchising is really rewarding for both the Franchisor & Franchisee and India happens to be a hot destination for companies outside of India given the fact that India has a huge pop... March 25, 2017 SFIMAR.MMS-IV.EM.BJH

LO, DO BUSINESS…..2 Money making oppurtuniities
Earn upto Rs.1 Lakh per month by mail order business.. Get paid for receiving letters and mails at your doorsteps. Trusted Tickets UK Description: Trusted Tickets is an event ticket website specializing in hard-to-find seats in the UK and worldwide. As an affiliate, you’ll get huge payouts simply for advertising the ... CitySights We offer hop-on hop-off double-decker bus tours in Manhattan and Brooklyn as well as night ... March 25, 2017 SFIMAR.MMS-IV.EM.BJH

LO, DO BUSINESS…..3 Body Candy Business (15-Feb-2010)
Description: Now you have the opportunity to work with the largest internet retailer of body jewellery in the world. You can earn money for each new sale that you refer to our site! BUSINESS PROPOSALS WANTED We have two offices in Central Kolkata (Park Street and Prince Street). Offices available on Day and Night basis. Earn an income for living through PTC (Paid to click) Following are few trusted PTC (Paid to click sites) which pays you for clicking on the advertisement. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

LO, DO BUSINESS…..4 Home based business opportunity
Online ad posting job a really paying company, offer franchisee for home based part time work. The best online income opportunity. Operate your own ebusiness WANTED PARTNERS We seeks PARTNERS for the newly establishing international residential school. The school embodies the essential ingredients of a GLOBAL SCHOOL. March 25, 2017 SFIMAR.MMS-IV.EM.BJH

LO, DO BUSINESS…..5 START THREADS COMPANY WITH SMALL INVESTMENT
Set up own Threads small company Earn Rs1000 to 2000 per day Lowest Investment Raw material+ Training fees +court agreement) Return prepared goods to parent company No risk involved. START EXPORT BUSINESS WITHOUT INVESTMENT Start Export business without investment. Earn in lakhs per month March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Lo, further opportunities…1
Agriculture, Food & Marine Bakery Products, Barcodes, Cattle Feed, Dry Fruits, Dyes, Edible Oils, Fertilizer, Flavours, Dried Flowers Apparel & Clothing Badges, Barcodes, Bed Linen, Cotton Bags, EAS Products, Embroidered Apparel Arts & Crafts Antique Weapons, Antiques & Replicas, Aqua Culture, Badges, Barcodes, Bed Linen Automotive & Automobile Abrasives, Adhesives, Refrigeration Equipment, Auto Electrical Parts, Garage Equipment March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Bicycle & Rickshaw Abrasives, Bearings, Bicycle, Bicycle Parts, Castings, Hand Tools Chemicals & Dyes Abrasives, Adhesives, Chemical Plants, Dyes, Fertilizer, Flavours, Industrial Chemicals, Leather Chemicals Construction Materials Adhesives, Refrigeration Equipment, Aluminum Products, Bathroom Fittings, Brushes, Cement Cosmetics Herbal Products, Cosmetics, Tatoos, Brushes, Lenses, Health Care Products, Henna, Fashion Jewelry March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Electrical & Electronic Adhesives, Refrigeration Equipment, Aviation Safety, Audio Video Prducts, Batteries, Computers Gems & Jewelry Bone Crafts, Clock & Watches, Diamonds, Beads, Fashion Jewelry, Jewelry Tools Hand & Machine Tools Adhesives, Agriculture machinery, Air Tools, Cutting Tools, Castings, Garden Tools, Hand Tools Hardware & Software Computer Hardware, Networking Products, Software, Computer Stationery, Computers, Telecom Cables, Electronic Spares March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Herbal & Ayurvedic Animal Health Products, Herbal Products, Cosmetics, Ayurvedic Medicines, Health Care Products Home Textile & Furnishings Barcodes, Bed Linen, Carpets & Rugs, Cotton Bags, Embroidered Apparel, Fabrics & Textiles Household & Home Supplies Adhesives, Refrigeration Equipment, Antiques & Replicas, Aqua Culture, Audio Video Prducts, Bathroom Fittings, Batteries, Bed Linen, Buckets & Bins, Candle Holders Industrial Goods & Products Abrasives, Adhesives, Agriculture machinery, Refrigeration Equipment, Air Tools, Aircraft Engine Components Leather & Leather Products Adhesives, Barcodes, Fashion Bags, Finished Leather, Footwears, Animal Clothings March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Medical & Pharmaceutical Products Animal Health Products, Herbal Products, Ayurvedic Medicines, Corks, Dental Products Metals, Minerals & Ores Minerals & Ores, Cement, Coal, Copper & Brass, Castings, Extraction Machinery, Fiber Glass Products Musical Equipments Natural Stones Garden Landscaping Products, Natural Stones, Stone Crafts, Merchant Exporters, Paintings & Sculptures Office & Commercial Supplies Adhesives, Refrigeration Equipment, Audio Video Prducts, Barcodes, Clock & Watches, Computer Hardware March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Packing Materials & Equipment Adhesives, Corks, Sacks, Holograms, Industrial Containers, Jute Products, Merchant Exporters Paper & Paper Products Barcodes, Cards, Handmade Paper, Merchant Exporters, Stationery Products Plant & Machinery Abrasives, Adhesives, Agriculture machinery, Refrigeration Equipment, Air Tools, Aircraft Engine Components, Aluminum Products Plastic & Plastic Products Adhesives, Brushes, Buckets & Bins, Sacks, Mannequins, Merchant Exporters, Plastic & Rubber Products Printing & Publishing Barcodes, Trade Books, Childeren Books, Educational Books, Cards, Arts & History Books, Merchant Exporters, Stationery Products March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Rubber & Rubber Products Adhesives, Garage Equipment, Belts & Conveyors, Industrial Clothing, Merchant Exporters, Plastic & Rubber Products Scientific & Laboratory Instruments Control Equipments, Laboratory Equipments, Measuring Instruments, Merchant Exporters, Survey Instruments, Pollution Control Equipments Shipping & Aviation Aircraft Engine Components, Aviation Safety, Bearings, Body Parts, Belts & Conveyors, Motors Sports Goods Barcodes, Fishing Equipment, Footwears, Hammocks, Merchant Exporters, Musical Instruments, Sports Apparel, Toys March 25, 2017 SFIMAR.MMS-IV.EM.BJH

Telecommunication Products Motors, Wires & Cables, Telecom Cables, Control Equipments, Insulators, Merchant Exporters, Office Automation Equipments Textile, Fabrics & Yarns Badges, Bed Linen, Carpets & Rugs, Embroidered Apparel, Knitting Products, Fabrics & Textiles, Jute Products, Child Clothing, Hosiery Products March 25, 2017 SFIMAR.MMS-IV.EM.BJH

March 25, 2017 SFIMAR.MMS-IV.EM.BJH

ENTREPRENEURSHIP MANAGEMENT

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ENTREPRENEURSHIP MANAGEMENT

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