jike India, they occupy a speciay pl om ses provide better Opportunities for st! courtesy equitable distribution Of nati Ace in the industrial structure. Small business Senerating employment, better utilization of ional income, etc. In view of the contribution a economic development of the country, r asi of Small Business Abusiness which operates ona Small scale and required less capital, less labour and jssmachines is called small business, In small units, goods are produced in small scale. re usiess is operated and managed by the owners themselves, In India, the village and gpl industries sector consists of both traditional sectors like handlooms, handicrafts, att khadi and village industries and modern small scale industries, Several parameters can be used to measure the size of business. These include the umber of persons employed in business, Capital invested in business, volume of output of twsiness and power consumed for the busitiess activities, Role of Small Businesses in India The following points highlight the role of small businesses in the socio-economic development of the country: 1, Employment Generation: Small industries are the second largest employers of human Tesources after agriculture. They are more labour intensive and Senerate more number of employment opportunities per unit of capital investment.Enrreprenew Y "Shinde, Cl ne os account for 9: “in ee Resour, _synll industries for 95% Human 2 commie 1 Ingusilsoir wn ‘ofthe tol industrial pryy * i sso “ “© Mobitiza + reine cour 24 COMTI exports fom Inia, Yn, gy yo MOON ne ose atte required te i pusinesses contribute tres produce an enormous vag, Ube drawn by ie. Re ae ry spate an eae Fa¥bY to orang ay, pro The main resoure - * 7 08 which include: ven as remade BAMENS, tatonery, 5, S| gg ecical resources, tone ae jon items, 8 * Soa ‘ a ae ber good “ (Og be SOUS id gg = ened, such as televisions, electro-medical eny; b. Sophisticated items, rena PENS, dr Mey, conditioning equipments, Af - te, th addin, ey also soppy tao tnd ad er rode, ome T igh expor value ey sonal developmen; Sal indus Can BSE Any Wherein “They use focal resourees, les capital and simple technology. in ‘Low cot of production: Small industries als enjoy the advantage of jp, protucon because they use lca resources in their products, Con 6 Quick and timely decisions: Due 10 the simall size of the organisation, timely decisions canbe taken without consulting many people. Wick ay Development of entrepreneurship: Sl industries Provide opportunity fa ‘men and women to stat their own businesses. 8 Seitable for customised production: Smal industries are best suited for cu producion as goods can be produced according 0 needs of the customers of simple and flexible production technique. 9, Personal Contact: Small industries have inherent strength of adaptability and a touch. Therefore, they are able to maintain good personal relations with both and employees. ™ oma te oy re soeeeSS of an organisation gj ies ome EE POSE a a i pot and Definition of Resource Mota 2 optimal, pesonrce mobilisation in a dyin i inorder secure new and i ange BUSINESS SUCESHUfacgin vin = sof support fOr I Organisation I.can aly nn PES ig ote Ol fr hig alld he present ert fos te 9 EUS esource mobilisation s defined a, « we manne, urees eset 0" te developmen, ingle ing the pre-determined organisational gags obiization of Financial Resource Res tai, Finance Frances regarded asthe if boo abuins exer. Ws vas untaion ofall kinds of economic activities. Finances the maserkey which provides access wall tbe soures for being employed in manufacuring and merchandising activites. thas figly been said that business needs money to make more money. However, itis also tue tat money brings more money, only when itis properly managed. Hence, efficient management of every business enterprise is closely linked with efficient management of iis finances. eee] ee Entrepreneurship De ng of Sal! Business carte "loon, ye 3 0 jonand evelOpMEN! Thertons _,ancing rough Equity Stary . sd iit prio ite for accelerat vig | 1 igy shares are France ite po PON vsnepese rs Me eg! vi Hed hay described peels otis 7 jes Act 2013 “Equity, nay share jescribed as are A com nan SOUTCE OF fi those g cording to Sec of industri] development a mai ANCE 10 ay co ae cee B of we ing through Pre isthe reference shares jn ference g ef in the company . 7 ilable t0 an. Financial Resources ciel ns aval organs, ape cant element 8 smal pg H jpese at ESERIES Which en se arerm cove! Financial rescarceis ate TT for caring cats peraions em ial resources can be obtained i is! rate during the life ofthe oo Prefereniy ee i 7 a 2B pany over the equity shay Bd a5 tothe Payment of dividend at ae Tetum of capil on winding up of js the requirement of financial 7 variety of sures. of Preference Shares Sources of Finance _erey. But for convenience, thes mere ae different types op sources ofitng maybe nay cso of iancing and Meier defined inthe Arie een a ein fong re” af financing 20 shorty | yi Arles of Aor ns Um tems of ss of ance maybe rl cS ney tonorin the Prospectus of the Company. sources of iancing. sora Fens | Gonnate Pere Shae Cone py arty the right 0 cumulative dividends, Tha ence Share are those shares which aividend ina particular year, due ging pc ‘Means, if the company fails to pay the I ‘Shortterm sources aan inuiceny of profs, such dividend eee - even pros, 5, is payable 1 Trade cet Non-Cumulativ Pree 1. Issue of stares , ference Shares: 2, Ise of ebeaues 2. Banke ; carte rihto rete arean ot ‘These are he Preference Shares which do not 3, ise of bonis 3, Pale depos ina particular year that dividend vend. the company fl to declare dividend A 4. iter-corporate deposits ae ‘eed not be pad out of future profits. mas ,, Participating Preference Shares: . 5. Instintonal Finance 5. Advances from customers a° the surplus profits and Preference Shares which have right to participate 6 Sale of fied aes 6, Commercial Peper . Asses ofthe company afer paying the equity shareholders 7. Innovative sources 4 Non paricipaing Preference Shares: These are the shares which have n0 right .0 I. Long Term Sources participate on the surplus profits and assets ofthe company. Long tem sues of nding ae tng the issue of shares detente, bon, | 5 Redeomale Preference Sires: These areas wih company my ison te eine eaings, sled ses Fang though esse oFequty and Pee stipulation that they may be repaid either after a fixed period or even earlier atthe shares, debentures and bons is known as secur financing. company’s option. 6, Irvedeemable Preference Shares: These are shares which are redeemed (epsid) only on winding up of the company.ne saree Oe "ey 56 lt gots wach) gh : fi i Cone Pet a corinne 8 tt sou wtih sey 4 sci eet Oy al ini ses a 1 Fig rag eve 0 oe TC eke snail a - me a ; 2013 a company ioe a only write sla, eave yt _ a a) ued acy se 2" i ws sani Ate visu i east i ra copa), sly ae 08 ing a manne 7 seoring 0 fied re often o inden diese Rind of Debentures nies nce Ont ess of Taste a srs _intelasttecrapy, Bearer Debenturs: »Thennesi } feet 0 canbe loaner Te inthe ‘Regie of Deets of ie compl) _ pi nt diet We? en de at hielo ib oe ol atti ebente, i Ont tas Set aad Mae eet flor vn lant 8° eae wo er sey Sf the cup / omg he re 1 ’ jpn ly ey hg (al sable Debenty tag hn mi m , je lg yon oy ae sal ‘ln ald petal ip ssl retin pepe bled "en entre i em Ota ce as _ Debt " s psec hay gs oe vi in shares of fi fi : gos Mot Dt Tee got saa i ote : ot Meine ete Ta gs ore ers plc sig pot iB tot ia ion, vey On peso ti pastas Toyo ie bide oar for payment of Copa Bonds Bonds: Ln tis typeof : 1 atte Of bond, te amoun i peat gos aie a, peveiedt 1 eaten ais, emp ea stein bei era, vpn bos fe bs Titi sn ped ies pel. Tey eel at ty dc prt reed fn va. Tete te tear be fceae ie int eof ese.zmirepreneurship Developm, rene ponds, we issuing COMPANY r 4, Sinking fund bonds: nthe ease of inking ene on ote ‘sn ‘a fraction of the issue every year. Finally» Soa i on ms eee ie ponds developed in USA. They . ni bonds are high rk 2% Cen peer rae cme me a ty nce ands and 76 HO EES 6. Private placed bonds: Thes? a7 P Tne are usualy issued 0 instionsl investors: ic whe ine ovatest NEON ng host bond 1s are issued with detachaty, normally 410 7 years. Thy provided the SPN are fully pai 8, Secured Premium Notes (SPN): ‘warrants and are redeemable # varrants enable the holders 10 get ea sharesy 5. Retained Earnings Generally, the entire profit shareholders as dividend. Some portion © fer of profit 0 differ not distributed amongst the grt are ree by the COMPANY fr future expansion through tras vt reserves such 26 BeNeTal Teserye, Midna equalisation reserve ee: THE POO lreansfer of profits t0 diferent reseryey jz knownas ploughing back of profits, APS re profits are r-avested ito the Bsns, peration and itis treated asa eal sour srsnancing for modernisation ofthe company, 6. Institutional Finance ‘Commercial banks and specialised Finan snstmtions provide Tong term funds ig corporations. a a vie agile eins fr Deon carer coma 35 DEVIATED The fotowing are he some of te development PANES which provide term finance to the industrial sector. re eee peso FBO Cory 1FCI AS establisheg tO lng 59 Om pdustrial fi in 194g, arg isis IMANCE (mediyyy «Fan 0 oto indienne Ger 0 yoy, 1993 with a view This inst SFE io ng an E basic object of a ing fi © provide i" ¥28 anion ra concers yea FAN ye ge sfomeg a mes ely corporation fom a Meee te ia, i Ye Refon we ets of be sadustrial Credit ang eat Corporation of tndia fo Paine é iciclwasesablished in 935. core devel ea a Sieg ate 2 fae ee “tal assist ‘i ‘enterprig (aban ae eye "y. Ce te ea The main pts of concern, pariner vs ioe hp At company yin, . i a a limit = ee 8 industrial enterprise. ‘ety may approach the ee sci ee A PDEA es promoted Yew enteren fie The Ct ges ~bsen,epasion consideration to Aesire to set ‘thee ventures in back sss Development Bank of na i ndia (DBD) ‘Development Bank with the primary ‘ghe Industrial Development lopment Bank of tna cian een ent joekese Baka, emote Ra 1964 a wholly owned sbsiiary sae oo Oa ce dec from February 16, 1976, IDBI isthe apex red to the Central Government with ad insinuin in the area of development [DBI offers concess on eee ee pbelocated in. areas which ae declare ea te IDBI provides re-financing faites to medium and ean: nie i pcs and Commercial Banks. medium ee ‘The IDBI has been asigned the role of he acivites of the institution principal insiton for. oe it ns engaged in Financing, promoting or developing Industry i ‘oaformity with the national policies. inane meEntreprene1 -UrShip p, ‘evel Bank of India (SDB) en, Pil Tansey, warp te mall Indes Develop = eg = aranent in 0102" 1989 as yy Bag its operations from April 2, pe ow, rey 1990 wit Wi ty simi, emotion, raring an €veopmen of me ratso coordinates the functions of institutions engagey a his purses 1DBI has taken over the responsibility of adn, is elopment Fund. 00 National Equity from IDB) 2s a ep ine en specu of SST SECIOT Inctng is sable schemes to meet the various r ine, _ 7 7 yn, SIDE e i cage uses OSOHEE : : expansion, diversification, modering Hon any 7 sition f0FP and Rural Development (NABARD) that provides al pes of ered 0 Various set ‘small scale industries, tiny and cottage indy sin i str development. Itcame into existence on re 2, National Bank (or Agriculture [NABARD is an oP institution the rral economy such 88 agriculture, handicrafts, in aM integrated way for rural 1982. as taken up the entire refinaneine functions ofthe RBI. Aso ration has been merged with the NABARp, Finance and Development CorPo gricutural Credit (Long-Term Operations) Fund and also the Nationa 1) Fand re astra to NABARD. The funeton of ie and te Rural Planning and Credit Cell have been tay grcultural finance has been handed overt Agricultural Rel ‘The National AS ‘Agricultural Credit (Stabilisatior ‘Agricultura Credit Deparment ver by the NABARD. Thus he SPHETE of the NABARD. 6, Sale of fixed assets Sate of fixed assets like land and building, use form a long term source of finance. lease hold premises, etc. which are notin yy of Sr Bsns yi ve sources 1 echase financing ' Os anew deVelOpment of finance under the hire purchase pa An in inancing enn cs i or iu in slected sectors of Indian a ement ‘ons are able to san aseeent ten by use high value ‘pas 10 Pay only sma * And seer ef all moun a sll of he po HOF he asset yg ee At etme of detivery por ve agreed amount on ‘ op! umber of pero inagen at comm ame He 10 ne 288s Up to the jue o settlement instalments, Ac : Of last installment, tually the seller retains a “s contributic ca PT noter’s COnTIDUON Tovar the prj funding a projet, it should insist 8. But when techzically qualified “? eurs lack financial ca oP sistance them, sbi provide ree. rl 7 contribution, 1DBI provides isin Depository Receipts (IDR) ‘an Indian Depository Receipt (IDR) enables f indian securities market. IDR is an instrument foreign companies to raise funds from i it de be ota desi depo esi a in es Rupees inthe equity of issuing company. iy Baro Hssues ur issues means an isse listed on European Stock Exchange, te subscriptions for eit may come FO ANY par of he word aber tan Indi . ‘pe following are the investnents sued by Indian compares for foreign investor. Global Depository Receipts (GDR): It isa dolar denominated instrunest tradable anstock exchanges in Europe o USor bth, Itrepreseats cen umber of equity pares and are quoted and trade in dollar tems, But the shares are denominated in 1s are issued by the issuing company to intermediary called equity shares are registered inthe name of deposiory who rupees. The share “depository’. The subsequently issues the GDR to the investorsnrrepreneutship Develop me 5.12 struments inthe fo , xo are finan 2, European Deposit Receipts (EDR): wy represented by Ne CQUity shang. cs deposit ou resident in = a a i ro marketed only enon cunt nig ‘ sete GD é is marketed both in Ey 1m serence unt GP mt tresembles GDR, except wit the USA. ‘ ‘these are bonds issued yp a le Ba eee and ae conver vests in foreign cUTenCy nvertible ny ya ied pis TeY have definite mein in this catego" 3. Foreign Currency Convert subscribed by non resident In ordinary shares ofthe issuing cO™mP#” dates. Euro Convertible Bonds aso ys Lease Financing Leasing fs an agreement bel propery. Ie provides a frm wid use ad con Dong hese, 1 one of Ue ways of eH SSS: ner of the property and the user op ween he o¥8 ; rl ver He ass WHLOU Buying ye vi, Venture Capttat Venture capital financing is financing speifically for fondling hig research and development projects in refers the intxtional investors who P! 1s to their managements. regent ogni Inia eapial MCL. isan egy vik an igh reward proj 1880 concent 4 commerce! production It othet WOTUS the teny ‘venture capital rovide equity Financing 19 no, entrepreneurs and render advisory servic II, Shortsterm sources Short-term sources of funding include: 41. Trade Credit Sellers or suppliers of ifferent kinds of products oF raw materials provide credit ir customers, The eredit offered by the seller or supplier is known as trade credit, tig ‘very important source of short-term finance. 2. Bank Credit Banks provide shor-term finance in the form of over drat, cash credit, discounting of trade bis and leters of credit to its customers. Overdraft facilities are allowed s or povin8 CUFFER acco ge nk a grt AE Mee ised DY the Dank. Bangs i ten, | cH may ge len i y pig iby eae = _ fund money wit wo rae ng a ¢ may MODIISE Savings g 5.13 Pa is8 VE Olen pe Ba i PO qpporate deposits * ss mae D A ss 0 BY OT company ig pis an iMPOTLAN Shorty, — = com Of finan q Put ic and nig sys fermed as ‘public any i {oor sine corporate ance. from customers To fms ini ia £ oll solles of producers recive spadvance remains With them gy a Or panto su é ‘aout ly of mercial paper (CP) f eae ‘Of goods in advance formally no interests paid entenpri ses BFOU ‘of human beings and a group of, a the two sources of seis, suning and Definition ‘Human resource is the workforce ofan organisation who help the organisation in una rganisation who help iving its goals through their knowledge, abilities, skills, ia The si , sil, jtudes.gnreprenew ship Deven yoo and nH PAN, ey sid yan 50 any business enterprise sings it "8 of an organisation, TeBardeg P % greatest set of ‘or the magnificent buil a) personne a Human resource is defined age significant asset in terms of sills and abil! . ization Steps in Haman Resource ae sani" she following steps; ' The process of hum cerned with OrECting ey ty aaa i categories of activities over a eg cared, Keeping i mind the pres, e manpower planning tava ies operation determination of both quand a sation requ, 12 Sob analysis: Fr elective pevormen 8 io ei, ee ences ae fications, skills and qualities, loot words, the jobs should ‘match the job holder. Copies re in py ites, skills, qual reqred for aspect j0b. 0b analy qualities, tls, qualifications speci. basa, isa process of collecting and analysing relevant facts cof a job with a View to seen, and place the most suitable person o perform the job. 43. Recruitment: Recruitment meats! discovering applicants forthe jobs in an enterprig, an i i OEE ey in conct wih one anter. Renan! sO proces of searching the candy and encouraging them to apply for obs jnanrgansation The purpose of recrutmen is to provide adequate number of applicants for each job- fter the completion of tie recrutmen 4, Selection: Selection of the candidates begia a! reenig and testing of candidates who have process. Selection involves & careful set anplied for the job. The main purpose of selection js to choose the right type of candidates, Selection divides the candidate into two cate offered job and thse who are ot offered 2 job Selection of wrong Persons may in wi of Small Business en of time 288 mony, 5.15 0 Hy be cated OU With care? S8ion . Ri OF candidates gent: PRENEnole PEtSOn sould be a iain date is Selected for ajop, 8 the for each right job. he ht person pts Me MH he ep a i on the right job. Once a of , cement of employees ae eTployen = ata Speci place. Ao rece ergy toes of ejb. ployee mover, absenteeism and se proPet| pla : zo i ae tothe proces of psig slong me s, ‘know-how’ through sig unl he ‘ot People. Training is wi ape super eats id anes ctine ne i ad eee of waining ont nico lteueaaccmene ain aerpis. perform appraisal: The job performance of employees isu termine wir efficiency level. Feed back is essential fo imp es rovement. Com nsation: The per ‘mount and form of remunerisation payable to every employee 4 js determined on the basis of jb evaluation and performance appraisal. ThE wage and salary structure needs to be far and provide incentives to employees. promotion and transfer: From time to time employes are transferred from one place to another to mee the neds of the organisuon and thse of employees. ‘Vacancies ar higher levels are filed by promoting employees working a lower levels. i. Maintenance: Housing, medi, reeaton, ssl sexy and other facilities and services are provided 1 employees in order to maintain ther physical and mental 10. health.wreprencurshlp Deven Mery 5.16 prospeeive ‘employees and Stimutay, es tocating te potential ca "e Recruitment is the process si them pny orobsin hori THSSET canis. I xem 10 apply for jobs ra «prospective job 4 Pog ‘The essential objective is to create @ pool o Recruitment of searchin f0" process. Sources of Recruitment ‘A company may use Int candidates. nal source OF Enteral source OF both to FECT te ‘A. Internal Sources Under Internal source of recruitment the organisation, There are two importants sb vacant ops are ile from wig urces of internal recruitment, They are: i, Transfer: tinvolves shifting ‘of an employee from one. job or department to another ‘without a significant change inthe responsibilities, salary and status of the employee, Shortage of employee in one| ranch or department cal easily met through transfey from othe branch or department Transfer 8 & horizontal movement of employees, re, transfer of clerk from one branch fo another branch. shitng of an employee from a lower position tg se in the responsibilities, pay, and stats, Iis elpsto improve the motivation, loyalty ‘promotion of clerk to Accouns For exampl ii, Promotion: Promotion involves higher position with significant increas a vertical shifting of employees. Tis practice and satisfaction level of employees. For example, officer. vr Ce ig (she commo pitt ONO Hed jy sources csteralSOUTCE free sion. External recrying, nt Posi «OM te filled from onside ona Mit tod inte aoe neta: can a on be Scion Company's nace is semble athe company Unskiled gy ‘Othe spo, This, ‘company's i sled jah, eee . This method is very Work or w hen ome permanent workers ! viet Recruitment: In is esi eto onthe specified dae ang off casual VACONs of oi gesve al td hen tig Vasa vite vi ib Ciemal “eaten al Callers: Sometimes uni ted applica yi ‘Dolio visit ofces in search of jobs. A ovantage of advertising vacancies i that more ip ob con Be given. Is dsaranape i ar ae = . organisation responses and My applicants cou be 08.2 Wt of umnecessory ployment Exchange: Employ Pa at exchanges run by the government can be goed 10 fill unskilled and skied operative jobs. These ex changes help to match demand and supply of personnel by linking job seekers and employers, The records sfemployment exchanges ae on nt wpe and ence canes refered by hem may not be found suitable forthe job, - Placement Agencies and Management consultants: Placement agencies provide ration-wide service of matching demand and suply of wok force. These agencies compile bio-data and records from various job seekers and send suitable names f0 their clients. These agencies charge fees for providing such services. This method is good fill vacancies which ars in echnical and proeson ares.nrepreneship Develo ey mH 5.18 zement and techno] Colleges jsives of ONES eae logy 7 6. Campus Recruitment: Coles echnical, FOS Mange ‘become a popular source of se son wi nese colleges and ing, a on Atany nnain . en ere con 1 ean Brae is type of recruitm is to itten, Magee tesa AC hisis rel eine 1. Recommendations by Empey ne Seheg® 1 Recommendation recruitment. Such app; source ali ° we 1 , ‘ ang ari eel teat pecs ver acreound sufficiently know, are likely to 4, Labour Contractors: Labour cone can provide a a feat 7 7 , wever, if ther Jog ontcts with apourers: HO) fe note because they maintain close tere fa chance of withdrawal fect the smooth running atte organisation. 9, Web Publishing: In internet information regarding job sel cean be visited by job seekers Naukri.com, Monster.com, jobset.cO™, Operations Planning ‘A manager is supposed to operate ina dy challenges pies specifically 890410 prog having vacancies. These Websigg common Websites ay there ae certain Wel ors and companies aswell as companies. The ete. samic economy. Planning isthe inital tg, reated by changes. Successful managers ful managers strugele with unforeseen ive and grow must give emphasis on of every manager who wants to face deal with foreseen challenges whereas unsucces challenges, Every enterprise which strives t0 su ly nine a psi BCLS 5.19 igi i¢ Plannin; Le a 80° 8 SRT ra ; ational planning. 3 7 egy Fepresents ase be gene ad ing is H PPOCES Of deca Atrectiog "7 pe in which the resour the objec tbe orzaisaonl Vi om ees ean io elfons. Sirategic certain environment, Pte, ion and dere en into account the we ans ne (Ob dnloyed io realie as ve eo Tim's siren ale byte ap bjective sh environment. It covers gg ths PP management ofthe firm ‘n the light of internal and. ot ting ‘ato heen oration. perational or Tactical Plannin, Se th 7 petal PN Po proces of Sting sa. Fe ey ay iT pow they willbe TRIE Oeites ofan geese Pom nee ‘accomplish Orgenisatior ro peal ne Sed Opi pase mn and determining in wt aniston forthe nex, establish the activity and Miksa Sy, cae yas Team a sein and Definition sore specifi than a state plan, An operational plan canbe defied a, “a pln prepared bya deparmen of an planning. Planning isa process which involves “hinkng before dong’ It helps in determining the course of action tobe followed for achieving various organisational objectives. Planning | grganisation that clearty defines the short-term actions to be taken o support thé ic how t0 do and who is to do, Ttis te | ghjeerives and plans of upper rae support the strategic ‘means deciding in advance; what todo, when to do, establishment of objectives, policies, programmes, procedures, Salegies, for the achievement of the given objectives. rules and methods : . Operations planning may be categorised as to capacity planning, location planing, yout planning, quality planning and methods planing.enreprenewsi? DELP Mey n 5.20 Importanc ives of ions Plann Importance / Objectives of Operate aries #4 an hig h 1. Provides an outline to be focussed Anoperato panei ibe fosussed ae ynisation to achic each section of a0 FEA iieve the the near FUUFE Iggy ives an outline of what ‘clear plan as to what 0 be done PY paning i l9YS BASE On pag, ghpsin reviewing the Currey in identifying whs ips in identifying what needs jg strategie goal in the short fer™- 2, Helps the organisation fo know whe performance and present position. OP& positiof and operations ofthe organist tionally inthe upeomins Ye" ure as to the target 10 be: achieved: Plannin is Ene 10 achieve planning. It should be achievabjy yiainable. Through operational planning, & clear idea ig ‘operational planning provides chieve the target lear pierre of er twsks and Tesponsiblitg ained in the strategic lan. on chieve the target: After providing eit stands: ations plan jon. Ivalso he! be improved operat 3. Provides a clear pict ‘one and should not be una obtained as to, what to be done 108 the personne! in the organisation with inline with the goals and objectives & “4, Provides direction as to what to be done (0 fi clear picture as to the target 10 be achieves PPE directions should be given ig xthods, plans, procedures and programmes to be 1d be properly provided (othe concerned achieve the target, The various me ied information o people to perform, ‘used for achieving the specific target shou! persons. Operational planning helps to pesent a the day to day tasks. Operational planing is done to improve the performance shoud be clearly measured inorder clear and measurable outcome 5. Helps to measure the progress: performance of each department. The to achieve further progress. Operational plans specify 2 of a business operation. $21 Strate; rational Pla = |Strawgic planing Teo eal Panning level managers alt Hi tie ; oe by Itcove Y middle a sc09e : -OVErS the Whole enter Reece omer vinacy [B88 onorgatisaiony f TER cheys ne Pi f gece [Tear ects | Bsa on ments 7 land allocasi With acquis strategic plans. aosonotae te Opi , ovironent cs, Pans are made outlise pest be worked OU arketing Market isa place where sellers and buyers assemble zy and eo ‘According to tradi ae their products for solved in the flow of goods and services from production to 1g includes activities prac focus on the needs ofthe sellers, wheres, mo consangtion. Tvasiioval ds ofthe DUYETS. , modem approach focuses on the problems of marketing of small businesses 1, Lack of sales promotion 2, Weak bargaining productpnireprencurship Developm, Channels of Distribution lamers. Market peoneae ee sacar for te et ting acti Sous are prosucea by manuf vi ne ubimate target FOF a Marky stares cad ene itn de coneaers, THE OMT eae “The availability of the product i the Tre pcr deponds om we eMiseteY Gistrtion Ghannet which plays a significant rote in ing activites. Meaning and Definition ‘Chonncts of dlectanion arc male CDOSET#S vith the physica! distribution of goog, sad chontoes ts te diserontion necwork rob ‘which a producer puts his Products jn te hands of the actual user. i camel or Mar re A instirutions or interrelated intermediaries who participate distribution of goods ang ‘services 10 the ultimate consumers. LABS = acraring companies require the Well aligneg Sy property planned Marketing Channels 29: he products react 10 the end Users iy ‘convenient and effortess manner: In the wonds of Wiliam J. Stanton- route woken by me ttle 10 the goods as they more ‘customer. ‘Distribution system has 10 1. Channels of distributior sone wanaferrd fom we producers fhe ultimate processes through which the produ «a eiribuion Crane for 0 Product ts the irom the producer 10 the wliinare components: sy cbange of striburion we mean intermediaries or sribut Physical distribution: Physical distribution concemed with the ow of Boods to eeiuimate consumers, inctuding transporaons ‘warehousing and inventory ‘management Types of Channels “Marketing channel is the pathway composed of intermediaries or middlemen who perform ibe functions needed to ensure senooth HON, ‘of goods and services from the verpofactarer to the consumers, The following are tie “important types of channels. _abotion channel for pst fe . resumer £00ds. The oo ‘consumers buy, r Troducers prefer to use progucers Prefer 10 USE agents to ane Boods 5.23 te jucer may sell dir = oan OF Consumer cet oy ne epee a _ ‘channel tert sett rel * Fetallers cer > Wholesaler pag ee comumnen. buy goods directly from ce channels are Fe Widely used in tucer to Consumer tucer (0 Retaite proaacet 0 Rete Cons Aanwcurers and sel them > Consumer: ti Is a tadional channel for sn WHOIESAIETS Ad Wholeaar eon OM eller, scer —> ARENE -+ Retailer targe Seale PrOUCETS Use who esalers through agents, potion channels for pis Industrial goods jeer > Industrial user 2 Ws the ete ee ee ‘avipments usually follow direct siting famufacturers of large machineries oF Tce Pdi Drs ire Ut rea ooween pods sneer, hi muy nbc ed ‘pachineries and operating suppl mainly inthe case of small sno Producer —» Agent —» User: Firms without their own masketing dep = for this channel of distribution. For inducing a new product o #9 emer 8 2e™ market this channel is preferred. Producer —» Agent > Industrial Distributor -> User: Tis ca rrnoe feasible wo sell through agents dicey to he wer, Hence, sss SPP ‘producer and the industrial distributor gael is used when it erween the5.04 Factors influencing the choi The following ae the factors aff Product: The selection of eistibul and value of the product. i. Perishable goods: If 8 isuibution with speedy mover” 4. Durables and standardised goo y ve advisable and diversified channels ™ iit, Custom made produ ‘consumers may be desirable in. Technical producs: Fo esi shortest channel is prefered Products of high unit value: sales force. Market: Marke is a place, want-stistying goods meet wit thes dealers affect the distribution channel For consumer market, retailer is 5 climinated, Ihe market size is arg. in. small market direct selling may itis better to have many channels Price of the product: The desired pr impacts the selection of distibuion iswibution strategy affects the price of the seeks to make a profit for his contri channel members are involved, the selling price is likely to the price is o be fixed at a reasonable the minimum. 1 of Chan commodity #5 cas For produls 25 77 SPH Such products ‘where peop! Entrepreneursmp Devel em cis of Dire” e choice OF istrbution channels; ing nel mainly ds on the jon chan depends On NE MARIE, ting erable, fo and COMO Lea esrable- durable and standardised goods, . long, jal orders, direct distribution & at products requiring specialised sling tg, can be sold directly by traveling re with money and willingNesS £0 Purchase res of goods. Buying habits of customers ang | decisions. ena, But for idstrial market retailers canbe ‘advisable to have many channels, whereas, its For highly concentrated markets be profitable. joe at which a marketer seeks to sell his product hannel The inclusion of resellers ina marketer's product. Each member ofthe channel the sale of the product. If too many go very high. Hence, if evel, the number of resellers should be kept at ibution to an yiadlemen: Middlemen + pies and atimmeogy ete 328 gece! MATKELINE Policing ayy ; vie regu va in their in Prog in promot ited marketing ae ne Pementaog, ree foe roman sevies They nt tower UT cSt Wb ey gon el eoufaces and actively hel D Drioriny "ating vely help sparget Market: A di ‘ry. the largest sales vol re ce oe fe Selection of jy, ee only i effectively meet the cusomer em anes ea tem ct aon marttig sate co Peerieae wa oe aseae | S . rae he smc sl posibleina shor timespan. The |e ofa product Iunch is 0 bud sles momentum, Sale mean eae he |e BOW aNd prosper tops for succesful launching of anew product oduct uch is 0 an one-tte amouncemen. I at te race of prodt sus eludes all he work dose during he tee mond toe proc is male oc othe ark, The Main ses fr luncing ne produ ihe moet sive tay are the following:5.32 4. 5 6 7 nreprenewship Develop, m a0 NII hg ap : jade, $0 that, the Preparation of a business Pa rkfte to be mé Produc, be made, A business plan oF Iaunching is made most effet roves of gamerings Analysing or service 10 be offered yy the prodtineluding the potential customers. suppliers, distributors, competitors “Test marketing means ith a view £0 stud} the producti today at marketing, feedback mus 5, rovements needed ca be mag, to provide the manageren ition, expected Sales Volume selected areas, often at different oom ‘Feedback from ‘customers? Before starting for obtained from the focus BTOUPS before releasing the | product for sale. ge idea about the demand for product, extel contact influencers nfuen rienly costomers, prospect OF en logge err elie presence is een thatthe product or Service is mage Sacer influencers. Bffors should be made to eneOUC thse Peo sete os cor service and then make reviews °F posts in social media, Thy pa = excitement about a proguet before iS taunch and to identity agy goal is to gener outstanding issues. so that, any i Feedback helps sf competi ers can be yigorating ‘anew product, it is important to educate 7 ed ie excited about the item. For the purpose, a seavet be produc shoud be discussed with He f= ‘members and ensure tha, er pat se Schedule of launching: Production schedule shoud Be fixed by the entrepreneur to arson thatthe wks ae completed on time and tam EME AY held accountable for their goals. Enrepreneurs also need to select the est mes forthe release of the ‘new product. punching OF Onan Susiness media pages and online retail il sites. They crea te e-mail marketing campaigns, utilise ay-Per-click (PPC) advertising and even contact customer vat Sendin via tet. Sending announcement e-mails: The best way to reach is through their inbox Saar fs es. Send a carefully drafted announcement e-mail to them, so that they can know about the new produc : Arranging sources of finance: Finance is the life blood of a business. So the entrepreneur must take steps to adequately capitalise the business and secure ready sources of capital for growth. To determine the cash requirements, a cash flow statement that estimates the expenses and incomes isto be developed. Principles of successful product launch 1 2 Relating the product capabilities to market needs: Any product or service should meet the needs of its target market. A winning product launch stats with marching the capabilites of the product or service to the needs of the market. A winning product launch cannot happen if the market wants one thing and the organisation delivers another thing. Clear positioning: Positioning pertains tothe activities that the product manager does to place the product clearly inthe minds ofits buyers. Ifthe positioning is not clear, the buyers will be confused and reluctent to buy the product. Hence, effective positioning is « communication process that makes the benefits and capabilites ofthe product clear to the buyers. ‘Setting clear goals for launch: The entreprencur has to set the goals of the launch. ‘The goals set helps the entrepreneur in evaluating the launch tacts. After establishing the goals of the product launch, he has to consider the methods of measuring the goals. Power of leverage: The entrepreneur should know the power of leverage which wil aaximise the launch results. Leverage i referred to as the use ofa small investmentaurererettipDeveony, y ige munch planners i evaluating taunch gous and objectives, g Ne | a ey a0 at esl ROUEN the powee wo gain a Juch ntis tat 1 small concern Wi leverage. Proper tine of inane: THEMEN abe ofthe product, Production sched! ol \ “’ thatthe ass are completed on tie goals. arly start: Even befo and outreach activities s the genet conversation going am0"8 aly: Poorest 7. Making the product a help of fee als is use with product and its use Wi ‘demonstrations. the Dest ties for the 49 © fed bY BE MEEPFENEUE 9 eng ers are beld A€COUNAIe for," as 0 select -nurching of te Product reparayg, ja date of ete offi ing lune SA ETE WEY TOKagy Jrould be initiate al public. 1 be made MOTE aware aby, downloads, Proquet Videos, ea great skein the Suctess of. ors ha keting parte! ease of the product, the chance snvotveds Ma 8, Get partes inves Mart Te launch. If more people are Im ‘geting larger market is hh. Incubation seping soe ing Fh SAVIONTIEN aN nj, Incubation she process e op ks te fusion of providing el environ aetna in told veal te etors required Fs developaey, for gro, For abuses 10 270¥, business incubators. ‘Such factors are provided by i orion iso publiiprivate enreprenenrial economic and soca, Business ina eignd wo murare businesses rm dea generation 10 sary development pro companies ts done through a comprehensive business support programme, which helps carom are often sponsor by pvt comans oF mua entes and public istitutns, such as colleges and universities et aunching of Small Business 5.35 susiness Incubator economic development” «and success of entrepreneurial companies throu, and services that include physical space, capita, connections”. Business incubator i - ator is eines, “an organisation designed o accelerate he groth igh an array of busines suppor resources coaching, common services and neworking Their goal isto help create and grow young businesses by providing them with necessary support and financial and technical services. There are approximately 900 business incubators nationwide, according to the National Business Incubation Association. Incubators provide numerous benefits to owners of startup business. Their office ‘and manufacturing space is offered at below-market rates, and their staf supplied advice and much needed expertise in developing business and marketing plans as well as helping ‘o fund fledgling businesses. Companies typically spend an average of two years in a business incubator, during which time they often share telephone, secretarial office, and Production equipment expenses with other start up companies, in an effort to reduce ‘everyone's overhead and operational cost. Role and Functions of Business Incubators ‘The role of business incubators is to accelerate growth and development of entrepreneurial companies through an array of business support, resources and services 1, Management assistance to start ups: Startups often need guidance on successful completion of projects. Incubators can tap into the network of experienced entrepreneurs who can provide management guidance and operational assistance. Tncubators support the development of statt-ups by providing them with advisory and administrative support servicesemreprencatsMP Develop, referring them toa eeds bY gg nancing wth i a ial rating co investors and venture capitalists ast to save ope! 1B Costs, The mo cites snd sha verbs ipoubatr share cand eens Svcs, it rental inca sSBr UPS create syne, working eons on ad 21NOFSeSAblh an oe oat wp ere CBN Proj lor : through these reaionships st fOF#OT" are ideas On EW APPrOaCes jy 2 another and reece ad cO-OPTaE On rod oi 4, Synergy: The close Even aftr the sat ups lave encouragement 10022 col problems. Startups may Pan development iiiatives on oe i growth: rs assis enced . as ei jobs for ne graduates, experienced person ity. They create long a aa exuives wis me? ae owt va roduce succesful and financially viable firms that cay oat wrture young firms, helping them f0 SUTVive in the survive on theirow”. ener sombining te enrepreneuril drive ofa say carly sage, lncubators create " i resources generally avaiable 02° venture i" tunities: Incubators creale employment opportunities inthe log, 7, Employment oppo! economy and commercialize technologies. 6. Infrastructural support: meeting rooms, ec. They ls provide platform Venture Capital Long term investment io bigh called Venture Capital. Venture capt 8 entrepreneurial lens wit finance and business 8 Incubators provide infastrutualSUPPOTs ie., office space, todo networking riskindustril projects with high eward possibile i ial is «popular method by which investors suppor. ills to exploit market opportunities, aunching of Smal Business Meaning and Definition Venture capital is -f is SEPIA long-term risk opto fiance high technology projets whch imolve risk bt the same tie has iron poem or growth. Venue Capitals pol their resourees including managerial ables toasis new entrepreneurs inthe early years of the project. Once the projet reaches the stge of profitably, they sll her equity holdings ata high premium. ‘Venture Capital is defined as “an investment ina growth oriented small or medium business to enable investors to accomplish corporate objectives in return for minority Shareholding in the business.” AA venture capital company is defined as “a financing institution which joins an entrepreneur as a co-promoter ina project and shares the risks and reward of the enterprise”. Features of Venture Capital 1, Form of participation: Venture capita is usualy inte form of equity participation. Temay also take the form of convertible debtor long term loan. 2, Emphasis on risky projects: Invesunent is made only in high risk projects which promise high growth, 3, Commercialisation of new ideas: Venture capital is available only for commercilisation of new ideas or new technologies 4, Promotes entrepreneurship: Venture capitalist supports entrepreneurial talent with finance and business skills to exploit market opportunites.sreprenesiP Develonn, ey ot in business aller map. sowie May cca . Tews i Continuous involvemet wef pte he ven, aninvestment ures in tbe thet, The by eee at eee 6. Objective of invest vgs ce ont feo isivesth capitalist xiv i ial : ee suis pl nc . py oan it Tete objective — ‘i esi and managing it, marking sud sediumscaleeneprises, ein (rooms | | peNESaS { pacer [meen) (ee stitutions. There are three sy angles [odivdual investors or companies . Venture eee be funds ate disposal are ee s Angel oF W - : et vernal eT reamnetieh Investors. They. peso enue ci _ i 5: These may be promoted jc ercial banks: These it ished by major cont 2, Venture capital establish citer by banks in the public or the private sector. 3, Venture capital promoted by other financi are promoted by both domestic and overseas financt ia} instituions: This includes the ones poo of Small, Business eonture Capital Procyy The process fg o ollowed by venture Capital institution iss follows Receo of Popo * A Drtoposal is plan, A detail posal is eee by the Vc in the form of a business seo fiaions ing ds. A vel pepe ies rps (@) Itinforms the VCI about the: entrepreneurial ideas, ) Itstows: . ® : tate opens dail ne a ope bss and is aware ofall Potential problems 2. Appraisal < Plan: VCl appraise the business plan giving due regard to the credwortines the prone, ema oft practice we vee th marke ob eed cd fancied, VC aco nbn analysis by comparing future expected cash nfows wi present vesment, 4 Tnvestment: Ifthe VC is satisfied withthe fue profitably of the company, it Will take steps to invest its own money in the equity shares ofthe new company ‘known as the assisted company. 4, Provides value added service: Veatue Capital Investor not only invests money but also provides managerial and marketing asitance and operational advioes. It also ‘make efforts to accomplish the set targets which consequenty results in appreciation of their capital. 5. Exit: After some years, when the assisted company bas reached a cenain stage of profitability the VCI sels his shares inthe stock market ata high premium or sells it to the entrepreneur ata negotiated price, thus eaming profits as well as releasing locked up fund for deployment in some other ventures. This is how the cycle continues. Start-Ups The moder business worlds one which gives more importance to start-ups. A tat- up is a young company tat is just begining to develo. Iisa newly emerged businessspurprenersiP Developmen, _ eet # market PIES, Nd op viable bu! venture that aims (0 develop 3 vis ier. m stad sericea 1 108 CUT EMY Bly Meaning and Defi iat ofers 2? oF gery formed BUSINESS wig, ’ mp ny : \ sarap 0 om Oca ——— Sd for sewer the marke! Oe ~ end it, DETTE hich a EWI eMEBEL ong ta rial ey developing 2 Viable busines, particular mome . fined 2s, "an error “ie! in period of7 Yat OM NE dap yearn ne cas FBIOSHDGLgy ifitis period of 10 pany oF 8 registered partnership femoris . rurnover doesnot exceed € 25 corey is ; “ - ah ante of Incorporatontensaton, tn sn years uechnology sects OF exceeds € 25 crores ‘An entity shall cease (0 On completion of seve case of Start-ops i Bi for any previous year years in fi, [fits turnover, panching of Smal Business characteristics of Startuys 1, Should be a new con considered as str-ups, 3. Should be with unlintea . tential ted growth potentat: Companies that have limited growth potential in erms oftheir customer base, eed venue and product are not seen as star- new restaurant, dry cleaner or services likely to be called start-ups, a |. Special cl ' , 3. el los of companies with particular work culture: Though thre is 00 single sandard for defining» startup, te tsiaess community recognizes tat start-ups area special class of young companies witha partcular work culture that exists within in it 4. Commitment o innovation: Inorder tobe a sart-up in eral sens, it should work cowards imovation, development or improvement of products or processes or Services. There should be comment o innovation anda wilingnes to take risks and make desisions quickly. This atmosphere atracts potenial workers who seek out tat environment 5, Leaders and workers working side by side: The start-up culture i considered egalitarian, where the workers and their executives work side by side without any ego in them, They work together with one mindset for achievement of their goals. Government of India Funding and Support for Start-Ups Government created a large pool of fund for helping start-ups. The fund for this is known by the name ‘Funds for Start-ups’ (FES). FFS doesnot rely invest in purpose start-ups, butit participates in the capita of SEBI-Regitered Alteraive lavesment Funds (AIFS).snare Dey new busifless eMterpri esait re st Try, oul cd fa enwepreneuts Csublishing bile appanda website for easy ef “ ing? a statt-up CaN fill yp ‘ ed it egies The entre proces sag its Of facilitators of patents m1 vl also 9? wally jotelectual Property Ri al Reduction incest THEE ge tigh edema. They 22 mew fe, Te sents Services including faxes ei pave to beat only te satiny fes They . and ; bear al faite Fes aoa ane qn eT SL of 10 Easy acces (0 fants capil i tesa eal from Income Tax fg provide finano® aye exemple or 3 Tas olidy for thee yeas: oe ei Board (IMB). fication eas, provide) 2° — ernment tenders. They a exempt be Je for normal companies, ore over rita’ applica earch Patks are set UD DY the + Various 00! liances have been simplified for aps stall be allowed to self-certify the — through the start-UP with 9 labour laws and 3 environment cot laws. Tax saving for investors: People upby government stall exemption mobile apP investing their capital gains in the venture fund set from capital gains. This help the start-ups to attract more investors. 5B Choose your Investors, Air this pi te Vette Cpe sigs nee nin whe bere Bivng them the ie vestots, " TY 10 choose thei i 0, Bs exits In case of EL, @ Stary cat of apliaton of vind Peano its ines wii 9 dys fom ie f+ Meet ober entrepreneurs: Goverment analy, bot ai as proposed to old two sarap fess Ys bth matical an intra . only to enable te various stakebolders of Sta-ups to meet This provide huge networking opportuni 8 Opportunites. echnopark ‘The policy of liberalisatc ng, _The poly of easton of enny ited by Gove of aad rapid growth of the global software industry necessitated formation and development of ‘Technopark. The technopark was established in Thiuvananthapuram by Goverment of Keon 188 Nene, 1 ste lst formation Tetolgy (1) psi India in terms of developed area, Ttis owned and administered by the Government of Kerala and is headed by a Chief Executive Officer. In addition to this, it has a Governing Council and a Project Implementation Board, consisting of top officials ofthe Government. The aim of establishing technopark was to create infrastructure and provide support required fr the development of high-technology companies Technopark houses domestic firms, joint ventures, subsidiaries of foreign commpantes engaged in a wide varity of activities which inchude ‘Embedded Software Development, Smart Card Technology, Enterprise Resource Planning (EFP), Process Control, Software Design, Engineering and Computer Aided Design Sofware Development, TT Enabled services, Process Re-engineering, Animation, E-business, Accounting and Auditing, et. Functions ‘The important functions performed by technopar are te following: Incubates small businesses: Technopark provides infrastructure, creates business 1. environment and operates various business support programmes t0 incubate small- but-strong businesses.sargrenetP Dl ng igs snes suppor though ides al consulting series, Sppon rk prov! Provides business suppor aan provision of ofce oe HF sont Se ee Jynopatk identifies renowned technology Jus ferand cOMMetCainng Provides technologies! sot i aie mn jgess creat pasiness and suppor in ‘of transferred technologie: ydemy, Fes oe ve etn0lode a co-operation: nn helps it earthy industry-academy ~ through industty Y “sear, Provides industry, iemiing ent proms im os : iy plas cooperation sein ee ey oY Pang 5, Fotsinowbderb sane bot monn @ Industrial Estates vent Eo 20 050 developing counties for their rapid ' eran isn arangenest wer O83 wees wep infrastructure where buildings and inras esrablishment of business ul , Jace where in sho, industrial este mment 10 the er ‘accommodation ded by the 80% are, town by diferent names such as aiid Pak, inurl nish places ion’, ‘Insti Cty’ “fodustrial Area’, Indi ae aa rinses established at Rajkot in Gujrg, ; Ct : cu moti subdivided and developed according 10 @ comprehensive in 1955, tsa large , ; ne plan forte use of a community of industrial enter 7 1 Eonteis dfn s “omanodefsanss housing and servicing industry, oie ring of industrial -enerprises, offeTing standard factory buildings i advance a which provide variety cof services and facilities 10 the erected in occupants.” net wich FOUN een, “I . mon and nse oO BTN, eae © OIE 8 COMON rovided by the government fy, the reuiredJocilites and foray irepreneurst0 establish ig, yi ching OF ee OMNESS- | tes of an Industrial Este a The mai atures ofan day stale are summarised hereunder: subvlvided land Is ; ! //* cast ne tps p, Provision of infrastructure faites: Industrial Estates provide o the occupants eer inesic ls, ada wand overs Uransportation system, aan nne its ies xt, repairs and maintenance 545 tact of land subdivided ‘and developed in to plots for 43, Clustering of industrial units: Iti a planned clustering of industrial units. A cluster 18 group Of enterprises producing and offering the same or similar products and serves located within an identifiable and neighboring area. 4, Balanced regional development: Concentration of industries in specific areas leads to imbalance in regional development, Industrial estate, designed as a tool of indutalistion helps in balanced regional development. ‘Area of development: Industrial estate may be developed in any area which may be spread to urban, semi-urban or rural areas. a 6. Size of business unit: There is no limit to the size of the organisation. It may be a large one or medium or small business unit. 7._Oumership of enterprises: Business enterprise in industrial estate may be setup by the government, cooperatives or ne ‘The main objectives of industrial estates are: 1. Provision of infrastructure: Availabilty of infrasuucture isthe main budle inthe Gsiablishment and development of business units Jodutial Estates provide wo the occupants several infrastructure facilities, such as water and power supply. transportation system, tool room and training facilites, banking facilities, post office, _ sepsis and maimeranos elitist. — 5. Objectives of Industrial Estates v6snreprencntShi Develop, 7 5.46 «by themselves may yoy industri seausuries: mall i Sara 2_ Development of sl ead infrastruc foe. : 2 ese small and me Financially stronger '0 a ed in industrial estates micro, SF Mediun, infrastrucrre facilites are POV businesses can be easly promoted Decentralization esse dat industries aT concent ization of industries: 3. us! fi sy seriaus problem 116248 1 ta, Jeadil jn cities and urban areas i vate pacecabet ‘The problems of ar pliygg, concentration of populaon tan oy, ree eu of concentration of industries wer pian, eu a inde of industries to rural, ba jal estates | specific areas, Industri oI ayesmtesbept develop industrial cur, saeimates ost Deroy mole Stet ‘The term bounty is ‘eoncessionis a grant gi schemes or works Examples ae Cones! yy a cones ion ofthe cOSt cof the project \ Exam a fvancial od gven toa eda etre ENE ap, i se entreprencurs (0 encourage ‘or motivate ther 10; - Fiona pon ; Gili dbase ‘motivational force which makes a6 rod nerves include concessions £ Subsils — nis ? or sum ofroney whl Is Granted to ay iy SO For proc Trangpon subsidy Interest SU! y eo) tidy aah Age Me ath ging Oh tor 0g rprener to ctble HiM 0 cong er and finance and CongeSional ry for land and building. = Need and Importance of Incentives. mporance of incentves ise om following reasons “The need and i 1. To correct regional imbal ‘The development of result of this imbalance, industrially developed scale migration of workmen from villages 10th unhalthy and congested surroundings tum areas, industries in he intl stages ld € reas became overcrowded due to mass nces in development 7 resional imbalances, As a ities, It leads several havocs such as Jack of sanitation etc, in the industria) vy N ssi ation 30m thay ie wt 9 grees DevCon v -_ w Tre a0 Treen Gtype) 4 1 auetin SM Busnes 8. ON OUT and, he ag wilization of resources, emp wher ment a 2, To promate en — “orencurship by removing cenamic natant T repreneurs often face m ‘most important among them are inade, information, lack of ‘raining, incentives offered by various ion Problems in managing their ventures, The i infrastructural iis, inadequate market ‘of technical and ‘Managerial counselling etc, The Governmenta those problems in several means nd nial agencies now hep enreprenur overcome - Industrial estates, industrial complexes, availability of power, concessional finance, capital iy ince, capital investment subsidy, et, are few incent ose problems faced by the entrepreneurs a 3. To provide competitive strength a ‘The Government of provide some of the incentives forthe establishment of industries = Ic others are concemed with the survival and growth of industries. Short term incentives & pro i : Provided for the establishment and long term incentives are meant for increasing competitive suengi,s . : growth, ing in the struggle for survival and also for ataining successive 4, To provide employment opportunites my ‘accelerate industrial development and industrial development, in tur, s re employment and income. Incentives, thus, indirectly generate more employment and help to reduce the problems of unemployment and under employment. The following are the important advantages arising from incentives and subsidies, 1,_Act as a motivational force: Incentives and subsidies act as a motivational force which makes the prospective entrepreneurs to enter into manufacturing linezmirepreneurship Developmen, Launching Of Small Business st ves and subsiieseN¢OUry areas sent to-entceprencurs Incent Age Central Transport Subsiay Sen, 5.53 Snerepreneurs to start industries in backward 0 Central Transport § ae at incentives ana supsdies help to develop more remote and inaccessing yn Sehem was itr 2 le areas. This introduced in 1991 scheme cove and is applicable to 3.__ Help to develop new entrepreneur Tew entrepreneurs which Tead fo entreprenes! Help to alleviate the Financia! gifieutes: neers ‘he Financial difficulties experience ems of entrepreneurs: preneurs: rial development | rod aie Help Wallevigg | causiee elaa | | oro ie enepreneu® emtves and subsidies he Help to reduce the probl teen oe ——educe the overall problems of small ent No and finished goods whi ih a _ ake out Problems of Incentives and Subsidies frastructural Development Assistance Schem sere calor problems of nenives and susie re a [O17 “ 1. Thee ia pus ate incentives and sts aE = itism and leads t0 cornu rovides assistance to cor a Tie ele i ce ce eae cece ere aias 3. Incentives and subsidies Fave Become the ee or atest ERS _| Mun ites nay ric. ors pers eS of ig a in on the exchequer. growth centre in each of the no industry state. The assistance will a canis F_un to one ofthe acl cst, sb Subject to a maximum of €2 exores per district. This schem 1 Was introduced with th © object of provid ling assistance to those distri Jing highly misused, that have no industries at talsused. 5 at present. Accord ing 10 this scheme, 7 Pano ‘Central Government Subsidies and Incentives ae Incentives and Facilities to Exporters ‘The central Government introduced several subsides and incentives ‘with the intention ‘The following are the incentives and motion of industrialization in the Duty Drawback Cron aes tances and also for the PFO of eliminating regional imbal : ‘Government subsidies and incentiv country. The various Central 1es are as follows. i uty Exemption Scheme Central Investment Subsidy Scheme ae «was introduced in 1971. This scheme wai eros wih te objective of encouraging the seng uP af MANS! centrally nosified inroducd wi pes backward areas re ctgorze a A caleBOr PaCKWATA SASS, B aacrey packward sates and C category backward sates: AOE this scheme, | Sener igs and concesios ae allowed for various indus fOr starung (ez District Industries Centres (DIC) establishment in categorised backward states “Marketing Development Assistance Central Investment Subsidy Scheme Supply of Raw Materials Export Oriented Units/ Export Processing Zone ee Industries Centre (DIC) is the institution at district level which provides ‘all the service and support facilities to the entrepreneurs for setingup Micro, Small and | Medium Emeriss na portctr eee, The Dist Industries Centre was stared by Mulnireprencwship Developrnen, ake avaliable al EEE) Servi expected el ube pact are. Tt cag tries esta 8, Iti smment in 1978 at the district level. ose sy with the ent srnallentTepreNEUtS at One Plagg ts 10 venus ries ee and programmes of Central ang IC provides their ous sl buted. DIC p ming agency OES gt ae coms equal by nent Te DICS 22S PrOMOLony the Central Gove tk and facilites atone place 0" ‘ingle window interacting 3€°%° DIC aims at the acceleration of Objectives of DIC the distri sal growth of 1. To accelerate industrial £7 of a district. picsmake every effort to have balanced regiong ities. They conduct artsa 2. Toderelop rural a " wining programmes 2 for starting new industrial units: Inorde, new industrial units the procedure shoulg ww simplify the procearesreqused OSIM gsi trough DICs. te in appraising the wore’ of various projets 6. To guide the entrepreneurs re be wore 0 YD PS DCS act as te best age) Or TAT ig maters relating 19 selection of ees vaso raw materials, source of SUPPLY SOUTCE of inery, requirement appropriate machinery. funds ex Tomah ava the enlist pvemnet™ ae the benefit of government schemes oa entrepreneurs in marketing het . —— aa industrial potential surveys and prepare 8. To prepare actin an rhe scenes end. DICS aso eps aso plan 1 eesivey Ineo ein varius prisons, cess, minimise the efforts and time required (0 registrations, subsidies ete. schemes: DICs help t0 make available, 1 preneurs. They also assist the Launching Of Small Business 555 unctions of DIC 5. 6. 9. Helps in selection of Proj entrepreneurs ects: DIC offers technical advice the selection of projects suitable to them, = “ Helps ir and Purchase of fixed assets: DICs processes the loan application of small ‘sis and submits them to financial instuions and banks forthe purchase of ‘and and buildings. They also sanction margin money under Rural Industries Project Loan Scheme payable to other financial agencies for the purchase of plant and machinery. ‘Helps in getting clearances from various departments: The Industrial Guidance Bureau functioning in the DIC, facilitates the entrepreneurs in gening clearances from various government departments and takes followup measures to get speedy Power connection, Assistance to raw material supplies: It makes necessary recommendations to the ‘concerned rawmaterial suppliers and issues the required certificates for the import of raw materials and machinery, wherever necessary. Assistance to village artisans and handicrafts: DIC arranges for the financial assistance with the lead bank or nationalised banks of the respective areas. Provides interest-free sales tax loan: SSI units set up in rural areas can get IFST Joan upto a maximum limit of 8% of the total fixed asset from SIDCO. But the sanction order from the same is being issued by DIC. Subsidy schemes: DIC assists SSI units and rural artisans to get subsidies such as power subsidy, interest subsidy for engineers, subsidy under IRDP, ec. from various institutions.nreprencurstip Developmen, ‘ pramimes: DIC gives: raining 10. Develop entreprencurship skills couse ing waning {0 sma 1 to rural entrepreneurs and also assists other axes This scheme Was introduced uth: apie’ ih SSLC qualification, yed ed 11, Sattemployment for unemployed 0 8 ars wt 1983-84 for youths between 18 years & Technocrats and women are given preerenees 12. Providing marketing support: Marketing i eel by way of participation in Industrial ExibI00 , 13. Keep informed of the latest development: ‘Management ne neh aes management, marketing management, qualtY control and Pro ee. ate being provided to the entrepreneurs by DICS- approves be SSUTIY Str and Trade Fairs. of India (SIDBI) ia (SIDBD) was setup by the Government of nia under a speial Act ofthe Parliament in ODE 1989 as wholly owned subsidiary of the IDBL I was established toensre the larger 0" of financial and non-financiay rhe Bank commenced is operations from April 2, Small Industries Development Bank ‘Small Industries Development Bank of I assistance to the small scale sector. 11990 with its head office in Lucknow. . Its the principal institution for promotion, financing and development of Industries ne functions of institutions engaged in similar in the small scale sector. It also coordinates ft a wes For his purpose, SIDBI bas aken over te responsi © administrating Small Scale Industries Development Fund and National Equity from IDBI. Since its inception, SIDBI has been assisting the entire spectrum of ‘SI sector including the tiny, village and cotage industries through suitable schemes 10 mest the various requirements such as seting up of new projects, expansion, diversification modernization and rehabilitation of existing units Functions of SIDBI SIs inthe country through the existing banking and ‘SIDBI provides assistance tothe State Financial Corporations, State Industrial other financial institutions, such 35, aunching of Salt Business evelopment Corporations oa ' Commerc; ). ete. The ° ial banks, a fs ‘Major functions of SIDBI, ae banks, Regional Rural sans 1. Refinancing loans ang 35 follows, advances; the sno 3 : SIDBI xing eating insttion tw he etn kas nares provide 2. Discounts and redise scale units, ‘ Ounts: SIDB; of machines I discounts 1 Pride *Y manufactured by small cae ae bills arising from sae . Provides seed capitals anit I: Seed capita started. It provides se ‘api isthe funding required 0 eta new business 5 igs Providing finance to SSIC: It extends financial support to State's Small Industries Corporation (SSIC) for provid Providing scarce : marketing tis profuc, eat mal sel unis and for 6 Financial support to NSIC: Corporation (NSIC) for pro small scale industries, ‘provides financial support to National Small Industries Widing leasing, hire purchase and marketing help to the 7. Assistance for technolo, ‘upgradation: It provides assist ‘upgradation and modernization of existing small unit, os tees Creation, : ‘ eno enporen ‘opportunities: It helps in promotion of employment oriented industries, especially in semi-urban areas to create more employment it and thereby checking migration to urban areas, _— 9, Expansion of channels of market ting: SIDBI , the products of smal scale sector. expands the channels for marketing5.58 Channels of Assistance dimensions. 1 2 Entrepreneurs eet sor is channelised through three major ec SIDBI’s assistance 10 small seale § 1 salret assistance i SUPP ing the gap in the existing eve this objective SIDR of SIDBI pLis) by identi s, To achi Direct Assistance: The major Obie the efforts of Primary Lending Insiutlons credit delivery mechanism for small sale industries provides direc assistance in differen inne Inver Assistance: Toe indie sisaNee EN ions (Pl channelized through a large network of PHAN Lending eas scree be country. These primary leeing ston eae el Beer Sate Industrial Development Corporations ‘Commercial Ee ome al Banks, The assistance is provided by Way of refinance bills i ee wgand resource support in the frm of short tr fans! Line of Credits and s0 07. sa Sences: sIDBI extends development and support services ‘grants to different agencies working for the promotion ang ver the years, the iniatives of SIDBy rytalized imo following areas, 3 siDBr co small scale industries i Development and Suppor jn the form of loans and and tiny industries. syelopmental activities have development of SSIs ‘under promotional and de with emphasis on rural indus needs a. Eaterprise promotir trialisation +. Human resource development to suit SS sector ¢, Technology upgradation 4. Quality and environmental management , Marketing and promotion {. Information dissemination ‘Small Industries Service Institutes (SISIs) vp to provide consultancy and training 0 ‘The activities of SISIs are coordinated b} the Development Commissioner Small Scale Industries service Institutes (SISIs) was established in 1956. SISIs are set mall entrepreneurs- both existing and prospective, yy the Industrial ‘Management Training Division of (DCSSIs) office. ‘The Small Industries S unations of SISIs rea Te flowing are the major ang ji ions It provides technical Consultancy g Of SISis, service to the prospective small industries, It provides techni one Provides technical support service wo small en It provides common facility services tke — of workshop facilities etc. to SSI unis Ie conducts Entrepreneurship Development Supply of designs and drawings, provision 5. Teprovides testing faites to Stunts for testing the quay of tir produc the testing laboratories and workshops ef IS OES HEA 6. Itoffers export promotion, services and marketing assistance to small industria 7. Itunderiakes market survey for specific products of small enterprises, “ 8. It also conducts economic surveys of particular area to ascertain their industrial Khadi and Village Industry Commission (KVIC) he and Village Industries Commission (KVIC) is a statutory body created by an tiament. Is establi ss a Wi E established with the objective of planning, promotion, organization ion ofthe programmes forthe devel be ins eat of khad g irunlarsincontantn iter pin cpgn nin cece Functions , 1, Storing and supply of rawmaterials: KVIC helps khadi and village industries to build up a reserve of raw materials and implements for supply to producers. 2, Helps in processing of raw materials: KVIC provides facilities for processing of raw materials supplied to khadi and village industries. 3, Marketing assistance: Marketing of product is avery serious problem faced by Ikhadi and village industries. KVIC helps to solve the marketing problems of such industries.-praining asistanes sor skill develo sinancial assistance: KVIC Managerial information oe Pe excl and sige indus: ‘Kerala Khadi 10. u. ‘To san, encourage, To conduct To arrange To arange Toarange Entrepreneurship Developm ut 1 Arti ra, KVIC helps them BY provides financial ‘and operation of Khai ausistance: KVIC provides managerial sons and institutions ens and Village Indus assist and run Kbadi and eines and co arange for raisin fox plc and polarising of BOSS for ine soply of raw mate {or we sale of their finished products “To carry om trading activities ‘To grant loans ander sssanee for ‘To provide chacal assisance to the upcoming wis industries and units. “To encourage and promote research the development of Vilage Industry. To promote ais for studying the problems elated in xhau and village industries Of TeQute rin, ms providing training Programmes, 1 assistance to institutions or pe i and village industries, 8 and technical guidance en the develoPmED! Md oper n tries Board (KVIB) poard is a siasory BOGY CONSE by he “tne Board is vested Wit IME FESPOnSiliy, ge Industries in the State Village Industries jals to Khadi and Village Industries he development of Khadi and Village Industrie se orm an implement fsus PrBamines and schemes for the revival of sick in the techniques of production of Khai and in Khadi and Village Industries, spuncine f Small Business 12, To maintain oF assist inthe, 13, To Provide grading cerineates to prod cer Recently, the following schemes are implemented by the Board. Consortium Bank Credit Sch Ba jeme: The scheme was introduced by the KVIC during » 88 per the recommendations of the High Power Committee the Government of India with Chairms nore ay te eo ian as the Hon'ble Prime Minister to study the Pr adi and Village Industries Sector. Funds for assistance are being extended to the Board as loan from the 1000 crores of consortium fund of the Nationalised Banks on guarantee of the State Government. ‘The Board, inturn disburses the funds as loan directly to the beneficiaries based on the projects submitted by them, ‘Under this scheme, 2,011 co-operative societies, 2,161 charitable instimations, 15,813 ‘individuals and 437 departmental units got Financial assistance during the year 2014. Margin Money Scheme: This Scheme was launched by the KVIC during 1996-97 ‘with a view to generate two million jobs among unemployed rural people under the KVI sector. Under this programme, the beneficiaries are ented to get Margin Money assistance as grant for the loans availed of from various financial institutions and ‘banks, for establishing village industries in rural areas as approved by the KVIC. ‘During the year 2013-14 a margin money grant of € 820.13 lakhs was réccived from KVIB and this was distributed to 399 entrepreneurs. 43, State Plan Schemes: The Board is implementing departmental schemes mainly under the State Plan Schemes. One major scheme for employment generation under the plan scheme is the Interest Subsidy Scheme.HEC 502 i mnt 1 Me Densities Imeret Subsidy Scheme ots ‘hes . ee hm ‘ilo For evblishing ville industigg . fini ther ans availed fom vt smal Business al Institute for enerprenuratP a National Insttu Development (NIESBUD) gy Sl Basis pny at instate foe teP nasties, Govt of India, The Nata 1983 19 0 Na institions/ agen (380) wash nT of ah can vere apex body for coordinating Shi engaged in Entrepreneurs! mall business. NIESBUD was rest Societies Act and started functioning (Fm july i a area of Sal industry ang ra oa ale te COVETITEE Of Ig say uly 1983. THe main jective oF NTESByp, aining progranmes for ensrepreneurshin ord ee The poley 2 i a rious instil ‘ “ty is Governing couell, WHOS Chairman i he is to organize, conduct ant development in collaboration vi guidance to the Insiue is provided ‘minister of MSMES. 1 Functions : ane for Enzereessp and Smal Busivess Development (NTESBUD, National Instn for aims at: ; ‘Carrying out training { NIESBUD provides help and suppor, other programmes: . nn = in carrying out training and other to affiliated institutions or organizations entrepreneurship development related activities. 2. Organising research and documentation: NIESBUD provides vital information and suppot to trainers, promoters and entrepreneurs by organizing research and documentation relevant to entrepreneurship development. 3. Accolerating the process of entrepreneurship: It serves as an apex national level resource insite for accelerating the process of entrepreneurship. 4. Providing training provides training othe trainers, promoters and consultants in various areas of entrepreneurship development. Single Window System The single window system sa scheme inroduced by the ean mnecin of SmI ng the rocedurencommesion wih te reiatin of small businesses for geting fnancal assistance, raw maeria, et. Under tis scheme, an extepreneut needs to submit all applications relating to power connection, loan, rawy ee one place, the DIC. As the DIC sorts ou the applications and sends them to the appropriate offices, the entrepreneur is relieved from going to several offices. This helps to save his valuable ime, Thus the Single Window Scheme aims at expediting clearances and simplifying Procedural formalities, This has been made a staruiory requirement under the Kerala Industrial Single Window Clearance Boards and Industrial Township Area Development ‘Act, 1999. Asper this Act, a State Level Board chaired by Chief Secretary to Government and the Managing Director, Kerala State Industrial Development Corporation as convenor has been constituted tissue clearances within 45 days. The Board has stamtory powers to enforce its decisions. In the same way a District Level Board with District Collector as chairman and the General Manager of District Industries Centre as convenor has been constituted with a stipulated time frame of 60 days. Industrial Area Boards have also been setup inthe various industrial areas of the State for the clearance ofthe projects being set up in these areas, An officer not below the rank of District Collector isthe Chairman in each Board, withthe Designated Authoriy of the Industrial Area as Convenor, to issue clearances with in a period of 30 days. The State Board also acts as the Appellate Body over the other two boards.