FYBCOM Module - 4 Business and Entrepreneurship

Business & Entrepreneurship: Module IV (4.2 & 4.
3)
Module IV: Project Planning and Entrepreneurship

Business Planning Process
It refers to a process of deciding in advance in respect of business activities. It attempts to provide
answers to following questions: -
• What is our present position, in terms of products, market share, etc
• What should be the future?
• What should be done to reach to our future position?
• Are we on course to achieve our targets?
Steps in business planning process
1. Analysis of internal environment
2. Analysis of external environment
3. Setting of corporate objectives
4. Formulation of strategies
5. Analysis of strategies/plans
6. Selection of best strategy
7. Arrangement of resources
8. Allocation of resources
9. Implementation
10. Review
Identification of idea/ generation business ideas/concept for enterprise

Idea generations in the mother of all inventions. No product development can take place
without conceiving an idea. Some of the sources of idea generation includes: -
Customers- can provide suggestions for product improvement
Dealers- can provide vital feedback from customers for product modifications
Competition- observation of competitor’s products can generate new ideas
Research & Development- can generate new ideas
The following are various methods of generating product ideas: -

1. Brainstorming: developed by Alex Osborn. A group of 5-6 persons are selected to generate
ideas. There can be more tha1 group to generate ideas. The group members may belong to
different departments with different levels of experience.
The group is provided with some background information, such as problems faced by
customers. The group is asked to come up with the ideas to solve the problem.
Each person would generate ideas, which would further give boost to additional ideas. All
ideas are discussed and finally 2-3 ideas are short listed for further probing.
The following rules are to be followed for brainstorming sessions: -
• No negative comments or criticisms against any idea.
LECTURE NOTES COMPILED BY STUDENTS’ QUALITY CIRCLE GROUP

(COMMERCE DEPT) FYBCOM 2020-21 BATCH 1
Business & Entrepreneurship: Module IV (4.2 & 4.3)
• Freewheeling is encouraged
• Greater number of ideas to be encouraged
• Improvement and combination of ideas to be encouraged
2. Nominal group technique: variation of brain storming technique. Members of the group do
not meet initially face to face. Each member of the group generates his ideas. When the
group meets, all ideas are discussed and debated and finally the best idea is selected. It is
better than brain storming, as one member may be dominant in brainstorming, whereas in
this all participants have to generate their own ideas
3. Delphi technique: similar to brain storming. But, the members of the group are located at
different location, may be even different countries. They generate ideas and discuss them
through video conferencing
4. Reverse brainstorming: similar to brain storming, except that criticism is allowed. It is a
group method for obtaining new ideas focusing on negative aspects of the product’s idea.
The technique involves: -
a. Generating an idea
b. Identification of everything wrong or negative with the idea
c. Discussion to overcome the negative aspect of the idea
5. Brain writing: it is a form of written brainstorming session. Developed by Bernd Rohrbach
in 1960s. it is silent, written generation of ideas by group of people. The participants write
their ideas on special forms that circulate within the group.
Each member generated and write down 2-3 ideas during an allotted time. The form is then
passed on to the next person, who writes down 2-3 ideas. The process continues till each
form has passed through all participants. The forms can be circulated through e-mails also.
6. Gordon model: In this case, group members initially are unaware of the exact nature of the
problem. They are provided with the general concept associated with the problem. The
group responds be generating a number of ideas. The actual problem is then revealed,
enabling the group to make suggestions for refinement of the final solutions to the relevant
problem.
7. Attribute listing: an individual/group may list out various possible attributes of a
product/service. Each feature/attribute is analyzed. The attributes that require modifications
are analyzed in greater detail. Finally, idea is developed to improve upon the
feature/attribute in the interest of the customers.
8. Collective note book method: A small notebook is provided to a group. The notebook
contains a statement of the problem, and any other relevant background data. It has several
blank pages. Each group member thinks of possible solutions to the problem, and records his
ideas on the notebook. Each person may record as many ideas as possible. At the end of
certain period, a list of best ideas is developed.
This technique can also be used with a group of individuals who record their ideas in the
notebook and then pass on to a coordinator. The coordinator makes summary of all ideas,
which is then discussed by group members.

9. Big dream approach: It enables a person/group to come up with a big idea to provide
solution to a problem. Every possibility is recorded and discussed without regard to all the
negatives/constraints until an idea is developed into a workable form
10. Free association: involves developing an idea through chain of word associations. This
technique would be helpful in developing an entirely new idea into a problem. First, a word
or phrase related to a problem is written down. Later on more words or phrases are written.
Each new word or phrase attempts to add something new to the ongoing thought processes,
thereby creating a chain of ideas ending up with a new product idea emerging.
Challenges
Challenges faced by entrepreneurs: initial stage
• Selecting a service or product
• Financing
• Lack of planning
• Developing a sales strategy
• Effective marketing within a limited budget
• Establishing starting funds
• Maintaining a budget
• Sustaining revenue
• Staffing the organization
• Managing employees
• Threat of competition
• Support from business community
Developing Simple Business Plan

Steps in business plan
1. Define your vision: It should be clear that what one wants to achieve with its business.
Writing down the vision helps in identifying the mission of the organization. This would
help in aligning all the activities of the business with the intended vision and mission. This
should be the first step in developing the business plan.
2. Setting goals and objectives of the business: clearly define short term goals which one
wishes to achieve in a period of 12 months, midterm goals which they wish to achieve
within a period of 2-3 years and long term goals. Consider all the aspects such as the

revenue which one wishes to generate, number of outlets one wants, number of customers
you need in your database, the target population, age-groups as well as the amount of profits
one wants to generate.
3. Define unique selling proposition: it indicates what is different about the business, which
differentiates it from the competitors in the market. USP will make the business more
attractive to the potential customers. It indicates that ‘how your product/service different
from others in the market?’ it can be anything such giving customized or personalized
services, better sales warranty and support. It means highlighting the extras that your
customers would gain by buying the product/service. It makes the business stand out from
others and that is why it is important to include in the business plan.
4. Identify sources of funds required to run/start the business.
5. Know your market: it may happen that one has a brilliant idea, but some else has already started
with business on that idea. This is a very common occurrence and should not stop anyone.
Several businesses can provide same products/services, but still survive as the market place is
huge and can sustain more and more businesses. For this, one needs to have clear idea about its
market through research. For instance, one should know how many competitors are there in the
market? what are the services/products do they offer? What are the current & future trends of
the industry? This would help in knowing business facts such as estimated gross turnover, profit
margins, etc., which are important to be incorporated in business plan for the success of the
business.
6. Know your customer: customers are the most important part of any business. In this era,
customers have thousands of options for every product. So, if one wants to be successful, one
should know what your ideal customer wants. Identification of target population is important
and market research would help in understanding the motivation behind customer’s
actions/buying behavior. One can focus on the areas which would grab customers’ attention.
Simply one can put them in their shoes and then think what would make them chose your
products/services each time. Ideas need to be written and implemented.
7. Research the demand for your business: One needs to find out the demand before investing in a
new business. The basic rule says that demand should be more than supply, if its’s not there, the
business would die out in a short time. Along with primary research, secondary research can
also be conducted to know exact preference and taste of your potential customers.
8. Set marketing goals: After research, business mission & vision has been framed. The next step
is to set the marketing goals. This includes how the product would look like, what would be the
cost, how will distribution take place and the ways in which promotion will take place. It is
important to set up measurable marketing goals such a number of product one intends to sell,
product development strategy, price margins, delivery methods and promotion plan.
9. Define marketing strategy: marketing goals have already been made, next step is to define
marketing strategy. For instance: how many products one need to produce and sell and at what
profit margin so as the get desired revenue? What will be the delivery system and coverage
area? What would be the strategies to promote your business? While designing marketing
strategy, one needs to be very specific. This help one in understanding that where one is right
now and where one needs to reach.

10. Take Action: without action all else is a waste. This is the most important part of the business
plan.
All the above steps would help one to write down the business plan.
• Concept and Importance of Project Planning,

Meaning:
Project planning is the systematic designing of a project with full details without which execution
of a project is impossible. It is essential in the case of every new business project as it gives the
basic data necessary for finding the success or failure of the proposed project. Project planning is
the first step in finalising the project for execution.
Steps in Project Planning:
1. Discovery of Business Opportunities:

The idea here is to develop an effective blueprint i.e., a story for your project. So, outline of a
project goal statement that includes exactly what you want the project to achieve – both for new

clients and for the business. It is meant to find a road map for the project and is an opportunity for
business stakeholders and technology providers to ensure they are working with the same goals in
mind. The most promising business opportunity is selected out of the many discovered during the
project discovery stage. The selected opportunity is exploited for setting up a new business
enterprise.
2. Preliminary Investigation:
Preliminary Investigation basically refers to the collection of information that guides an
organization to evaluate the merits and demerits of the project and make a judgment about the
feasibility/ viability of the proposed project. In this stage an overview of project proposal is
furnished, and it is not required to be detailed. In this, a project may be given up because it is not
fair to spend time and money on the detailed feasibility study of the project which is found useless
in the initial stage itself.
3. Technical requirements study:

Detailed study will be undertaken as regards the basic physical requirements of a proposed project.
Physical resources may encompass a wide variety of specific items and objects depending on the
nature of the project. Such requirements include land, machinery, raw material, fuel, power, waste
material disposal, manpower and transportation. These physical resources require significant
amount of capital and therefore in this step we determine whether we have the amount needed to
purchase these resources and which resources are to be purchased. This study is undertaken as the
preliminary investigation has indicated that the project is reasonably good and suitable for further
investigation.
4. Initial feasibility study:

Before investing in a product, a business may conduct a feasibility study to estimate the technical
and financial requirements and measure the likelihood of success. A feasibility study that links
sound technical projections with solid financial accounting serves as a valuable document for
drawing investors and securing loans. This study tries to determine whether the project is
technically and financially feasible, i.e., is it technically or financially viable? Financially feasible
means whether the project is feasible within the estimated cost. A feasibility study also determines
whether a project makes will be profitable or not. While making the project factors such as whether
local community will support it or not, is it beneficial for various stakeholders of society,
environmental concerns etc should be all kept in mind. The basic purpose here, is to verify the
market standing of the project. The possible profit, market, etc., are studied to find out the
soundness of the project.

5. Final Preparatory steps in Project planning:

If the initial feasibility study gives green signal, the promoters of the Project conclude that the
project is reasonably good, and the Project planning can be taken to its logical end to have project
report. In this stage, the promoters will have to work out certain details for the project which are:
Framing of policies for achieving goals and objectives
Preparing Detailed Programmes
Determining Capital Requirement
Determining Workflow
Preparing designs of structures and processes
While working out these details the time frame of the project should be kept in mind.
IMPORTANCE OF PROJECT PLANNING:

1. Preparation of Project Report:
A Project Report is a written document which provides details on the overall picture of the
proposed business. It is a formal record stating, clarifying and recording various aspects of the
project and keeping them for future reference. Improvement in the existing project is possible only
when the complete blueprint of the project planning is available in the form of project report. It
forms the basis to conduct feasibility study. It helps in actual execution of the project. A report
helps to gather all thoughts, processes and creations together in one place and documents the
project. This stage is the result of project planning done.
2. Reduces Risk:
Project planning helps to prepare alternative plans so that anticipated (insurable) as well as
unanticipated risks (not insurable) can be dealt with easily. It serves as a backup for the project to
survive in all situations. The plans thus created may be relating to plant location, marketing,
product positioning, sales promotion or any other.
3. Attracts Investment:

A well-planned project presented in the form of a project report attracts investments from
prospective investors. The soundness and the viability of the project is evaluated by the investors
which is proved by the initial feasibility study and this arouses willingness in them to invest in the
project. A project cannot be successful and outstand among the others until it is largely funded by
external borrowings.
4. Indicates time frame:

Every project starts with a time frame which is set while making the project plan. The project
should end keeping in mind the time frame because any extension or delay in time will increase
the expenses to be incurred for the project thereby increasing the assigned budget. Since time is of
keen importance in a project plan therefore it is decided while doing the final preparatory steps in
the project plan i.e., before making the project report.
5. Sanctioning of Loans:
Government permissions, loan from financial institutions such as banks etc are available only if
the project planning work is completed and is finalized and submitted to the concerned authorities.
But even after submission of the report, only if the authorities find the project appealing and very
feasible, will they sanction loans for it. They will also look through the market if the project can
attract many investors and if it is worth giving loan to.
6. Ensures Higher Morale:

It is not possible to complete a project unless full co-operation is obtained from the employees.
Where employees enjoy higher morale, they remain motivated towards the success of the project
which can be seen through higher turnover, improved industrial relations, better market share,
higher goodwill and so on. An effective management will ensure higher employee morale thereby
leading to successful execution of project. The management is expected to introduce both financial
and non-financial schemes for motivation of employees that will thereby help the project.
7. Facilitates Feasibility Study:

Project planning is important as it gives basic data for finding out possible success or failure of a
proposed project. Feasibility study can be undertaken only when the project planning process is
completed by preparing the final project report. The initial feasibility done while making of the
project plan is not as detailed and accurate as the one done after the preparation of the project
report. It is created and evaluated by experts in the field.
8. Provides Clearances:
Depending on the nature of the project the management is obligated to get various clearances from
the government authorities for execution of the project plan. Necessary permission is not granted

unless the viability of the project is shown in the form of complete set of documents e.g.,
manufacturing of drugs and cosmetics need clearance from State Drug Controller. The government
authorities carefully review each aspect of the project before giving permission for setting up of
the project.
9. Orderly Execution:
Various details worked out during the project planning process are useful for orderly execution of
the project itself as well as for its smooth functioning. Details (project outline) such as cost of
production, availability of physical resources, means of finance, capital requirement, estimated
costs etc are necessary to execute a project. This suggests the importance of project planning.
10. Procurement of resources:

Projects cannot be completed unless relevant resources are made available. Resources could be
both human and non-human such as the ones studied in the technical requirements study while
making the project plan. Management must keep the option open to buy from the spot market as
well as from futures trading. It is desirable to maintain adequate stocks so that the business is not
adversely affected by unexpected changes in the market.
PROJECT REPORT
Project Report is a written document relating to any investment. A Project Report is a document
which provides details on the overall picture of the proposed business. The project report gives an
account of the project proposal to ascertain the prospects of the proposed plan/activity. A project
report deals with different aspects of a project. It consists of information on economic, technical,
financial, managerial and production aspects. It enables the entrepreneur to know the inputs and
helps him to obtain loans from banks or financial Institutions. It is generally prepared by a team
of experts including engineers, technicians and financial experts. It serves as a base for further
investigation and analysis by the agency conducting feasibility studies or appraisal of the project.
The purpose of the project report is to place all necessary data for the consideration of the expert.
FORMAT
SR. NO. Contents
I Cover page
II Index
III Project at a glance
IV Promoters and management

V Project outline
VI Product and market potential
VII Manufacturing process
VIII Location
IX Factory Building
X Utilities
XI Raw materials
XII Plant and machinery
XIII Term loans and working capital
XIV Cost of the project
XV Means of finance
XVI Notes and statements
I. Cover Page - ‘Project Report' – for manufacturing of 'XYZ' item for 'ABC Company'. The
cover page also states the name and address of the person/consultant that prepared the project
report.
II. Index - the various contents of the project report, with the respective page number(s).
III. Project at a Glance-:
• Name of the firm, which has proposed to set up the project.
• Address of the location of the project.
• Type of product that is proposed to be manufactured.
• Name of the promoters, and the registered office of the company/firm.
• Estimated cost of project
IV. Promoters and Management:

• The name, age, qualifications, experience, and position of each promoter/ director in the
proposed project.
• A brief summary may be given about the associated concerns or firms where the directors/
promoter currently connected/related, with the name of the concern line of activity line of
activity (whether trading or manufacturing) and the annual turnover of each concern.
V. Project outline
• The type of product(s) that the project would be manufacturing.
• The description of basic raw materials that would be required.
• The type of machinery that would be installed, i.e., automatic or semiautomatic, etc.
VI. Product and Market Potential

• The utilization of plant capacity- whether 100% or less in the initial 2 or 3 years. & if
below 100% then what period of time would be required to achieve 100% plant capacity
• The quantity of production on yearly basis, and the value of sales turnover for a couple of
years say about 5 to 10 years
• The type of customer groups that would be buying the product. For example: Corrugated
Boxes would be used by FMCG’s, food processing sector for packaging.
• The names of the major buyers if company is already in business or the names of the
potential major
buyers
• The mode of distributing the product whether direct or indirect.
• The manufacturing & sales projections for at least 2 to 5years. VII. Manufacturing
Process
• The main raw materials and supporting materials or parts that would be required to produce
the product.
• The various processes or stages through which the process would pass during production,
with a flow chart showing the manufacturing processes.
• The procedure of quality control that would be undertaken. The nature of tests that would
be conducted needs to be stated.
• The type of effluents that would arise from the manufacturing process, and the treatment
of such effluents
VIII. Location
• The address where the proposed project would be located.
• The access by road, rail and other means of transport.
• The type of the area (whether backward or developed) in which the project would be
located.
• The concessions or subsidy, which the project would be getting due to such location.
• The availability of skilled and unskilled workforce.
• The proximity to the sources of raw material, if any,
• The proximity to the markets where the product would be supplied, if any.
IX. Factory Building:
• The area of land on which the project would be located.
• The cost of the land including land levelling and development of site
• The area of proposed factory building, and office building (if any).
• The cost of construction along with architect fees and charges both in respect of factory
building as well as of office building. X. Utilities:
• Water: brief details of water supply required for producing the product and the cost of
construction of special tube wells, if any

• Power - source of supply, and whether additional arrangements would be made to have
independent source of power, and the cost of the same.
• Fuel - number of boilers that would be required for production and their cost, whether
operated on diesel or otherwise, and the requirements of other fuels such as coal, oil or gas
coke, oil or gas, and their availability
XI. Raw Materials

• The main raw materials.
• The sources of supply of raw materials.
• The minimum quantity of raw materials to be purchased at a time.
• purchase
• The lead-time for procurement of raw materials
• Difficulties in obtaining raw materials, if any.
XII. Plant and Machinery
• The type of machinery to be used for manufacturing.
• Cost of each item of machinery including transportation and installation charges.
• The origin of machinery indigenous or imported. XIII. Term Loans and Working
Capital
▪ The amount of term loans that would be required, and the repayment period.
▪ The amount of working capital that would be required an its sources.
XIV Cost of the project (Brief summary)
• Cost of freehold land.
• Cost of construction of buildings - factory, warehouses, and office.
• Plant and machinery.
• Furniture and fixtures.
• Deposits with local bodies, utility firms, and others.
• Preliminary expenses.
• Pre-operative expenses.
• Contingency fund.
• Margin money for loans and advances.
XV. Means of Finance
• Share capital.
• Subsidy
• Term Loans.
• Other sources, if any.
• Total amount of financing, which should match with the
• project cost.
XVI. Notes and Statements-in respect of:
• Profitability statement.

• Assessment of working capital requirement. • Projected Balance Sheet •

Cash flow statement.
• Other notes and statements
SAMPLE PROJECT REPORT

I. Cover page:
Project Report for a Bank loan for a new business: ABC ENTERPRISES
II. Index:
Project at a glance
Promoters and management
Project outline
Product and market potential
Manufacturing process
Location
Factory Building
Utilities
Raw materials
Plant and Machinery
Term loans and working capital
Cost of project
Means of finance
Notes and Statements
Conclusion
III. Project at a glance:

LAND & BUILDING.
The unit will be set up in a rented building. It is made available on rented basis and the
rent per

month is Rs. 50,000. We have already considered the suitability of the location. The power,
Communication facility etc are available. Hence without doubt one can say that the site
selected is very suitable for these types of units.
PLANT & MACHINERY.
The plant & machinery are enlisted in the economics of the project. They include sewing
machines, embroidery machines, furniture, cutting table etc. The selected machinery can
be made available from authorized suppliers of these items.
RAW MATERIALS.
The raw materials needed include fabrics of different kinds and other sewing materials.
They are easily available and care will be taken on the quality of the same.
STAFF & LABOUR.
The unit will be operated in one shift. The staff and labours needed for the unit will be
selected from locally. The details of staff & labours are enlisted in the economics of the
project.
OTHER EXPENSES.
The probable other experiences are considered in the economics of the project. They
include
rent, electricity charges, transportation, communication, travelling, maintenance, postage
& stationery etc.
POWER.
The total connected load required for running the unit is estimated as 2 H.P. only- single
phase.
MANUFACTURING PROCESS.
The raw materials are taken and cut to required design. Then they are stitched together to
form the
product. The necessary buttons, zips, hooks etc are fixed and it is then taken to ironing and
ready for sale. The embroidery works are carried out if necessary.
MARKETING. The marketing of any product is the most important factor of the existence
of the unit and of the unit and considering that the promoter has taken all the possible ways
for marketing such as direct sales and personal contacts etc. The promoter had made a wide
network of marketing for the last one year and is capable for the forthcoming years also.
The marketing area is concentrated in retail shops of small towns and there are a number
of dealers through which the product can be sold. Most care will be taken in the change of
fashion and trends as they are much affected in the field of ready-made garments.

MODE OF FINANCE
The promoter expects financial assistance from leading nationalized branch. This unit will
be financed under MSME scheme.
IV. Promoter and Management:

Name: XYZ
Address: 101, Dev Chaya, JVPD Road, Vile Parle W, Mumbai
Qualification: B.E
Experience: 5 Years Running a Garment Factory
V. Project outline:
Denim jeans shall be manufactured. Clothes for Jeans, Zip, buttons, threads etc, Packaging
materials shall be the basic raw materials. Stitching machine will be used for
manufacturing.
VI. Product and market potential:

a) Type of product: High Quality jeans would be manufactured by the project.
As per the anticipated demand we expect that 85% to 90% of the plant capacity would be
utilized in the first 1-2 years full plant capacity shall be utilized in 3 to 4 years.
b) In the very first year we expect sales of around 10000 jeans to the retailers in the
country. However, to keep a provision, in the report we have taken into consideration sales
of only 8800 jeans selling @1500. In the coming years we expect sales of 25000 jeans in
and outside the country.
c) India is country with young population with changing fashion trends and ever-
increasing income of the population and consequently there is a rise in demand for more
western clothing and jeans has become very much regular among the youth.
d) The potential major buyers are Wilson pvt ltd, Lock and load ltd, kim fit ltd who have
after seeing the samples given huge orders of 4000, 2500, 1000 jeans, respectively.
e) In the areas of Maharashtra, Goa, Gujrat the product shall be distributed directly via
retailers, however for other regions in India distributorship shall be given to individuals.
f) In the forthcoming years we expect to triple the manufacturing facility and predict
sales to be up by 2.5 times
VII. MANUFACTURING PROCESS.

The clothing is taken and cut to required design. Then they are stitched together to form
the product. The necessary buttons, zips, hooks etc are fixed and it is then taken to ironing
and ready for sale. The embroidery works are carried out if necessary. The unit will be
operated in one shift. The staff and labours needed for the unit will be selected from locally.
The details of staff & labours are enlisted in the economics of the project.
VIII. LOCATION:
The unit will be set up in a rented building. It is made available on rented basis and the
rent per
month is Rs. 50,000. We have already considered the suitability of the location. The power,
Communication facility etc are available. Hence without doubt one can say that the site
selected is very suitable for these types of units. Additionally, Mumbai is also well
connected by road, rail.
IX. FACTORY BUILDING ITEMS:
Sr no Description Qty. Rate Amount (Rs)

1 Working table 2 15,000 30,000
2 Cutting table 2 12,000 24,000
3 Steel Rack 4 4,500 18,000
4 Steel Cupboard 2 7,500 15,000
5 Fibre stool 15 500 7,500
6 Iron box 2 2,500 5,000
Total 99,500
X. Utilities
Sr no Description. Amount (Rs)
1 Power 15,000
2 Water 2,000
3 Repair and maintenance 10,000
4 Transportation 2,500
5 Factory Rent 50,000

6 Miscellaneous 21,000
Total 100,500
XI. Raw materials:
Amount
Sr no Description Qty. Rate (Rs)
1 Clothes for Jeans 1,000 400 400,000
Zip, buttons, threads
2 ETC 1,000 100 100,000
3 Packing materials 1,000 20 20,000
Total 520,000
XII. Plant and machinery
1 Stitching machine 14 7,000 98,000
2 Motor for Stitching machine 14 3,000 42,000
3 Overlock Machine 2 15,000 30,000
4 Scissors 15 600 9,000
Total 179,000
XIII. Working capital (Staff and labour)

1 Manager cum designer 1 15,000 15,000
2 Cutting master 4 9,000 36,000

3 Tailors 10 5,000 50,000
Total 101,000
XIV. Cost of the project

Sr. no Description Amount Rs

1 Total recurring cost 721,500
2 Depreciation on machinery @10% 17,900
3 Depreciation on furniture @20% 19,900
4 Interest on Term Loan @11% 22,000
5 Interest on Working Capital Loan @14% 101,010
Grand total 882,310

XV. Means of finance:
Sr no Description. Amount (Rs)

1 Promoters Contribution 250,000
2 Term loan for machinery 200,000
3 Working Capital Loan 550,000
Grand total 1,000,000
XVI. Notes and Statements:
Profit and Loss Account (per year)
Monthly Descriptio n
Description Amount Rs Amount Rs Amount Rs
Power 15,000 180,000 Sales 13,200,000

Water 2,000 24,000
Repair
and
maintenance 10,000 120,000
Transportation
2,500 30,000
Miscellaneous
21,000 252,000
Factory Rent 50,000 600,000
Clothes for
Jeans 400,000 48,00,000

Other items like

zip,
buttons, threads
100,000 12,00,000
Packing materials
20,000 240,000
Labour 101,000 12,12,000
Depreciation
on machinery
@10% 17,900
Depreciation
on furniture
@20% 19,900
Interest on Term
Loan
@11% 22,000
Interest on
Working
Capital Loan
@14% 101,010
8,818,810
Profit 4,381,190
1,32,00,000 1,32,00,000
Net Profit (per year)

Turnover 132,00,000
Cost of production (-) 88,18,810

Total: 43,81,190
Net Profit Ratio

(Net profit per year/Turnover per year) x100 = 33.19 %

Break-even point
Sr. no Description Amount Rs

1 Rent for one year 600,000
2 Total depreciation 37,800
3 40% salary and wages 484,800
4 40% of utilities and other contingent expenses 242,400
Grand total 1,365,000
B.E.P = (Fixed cost x 100)/ (Fixed cost +Net profit)

= (1365000*100)/ (1365000+43,81,190)
= 24%
XVII. Conclusion
The Project is Economically viable and Technically feasible. The project is submitted for
Approval. On revealing the various aspects of the project and studying the financial & technical
features of the scheme it can easily be noted that the above project will be a great success.
MPORTANCE OF PROJECT REPORT:
1. To Banks and Financial Institutions: At present, banks and other financial institutions insist
on project report along with the loan application for the project. Many banks have their printed
project report forms. Concerned party(borrower) has to supply information in this form and attach
the completed form to the loan application. The completed form acts as a project report. Project
report is an essential for getting a loan to run a business as A new business is full of uncertainty
and banks and financial institutions want certainty that the loan will be paid in full on time.
2. To Entrepreneurs: Project report to an entrepreneur is a complete and comprehensive

document which is very useful at time of execution of the project. Further entrepreneur evaluates
the chances of the success of his project on the basis of project report. Further, entrepreneur has
to submit the project report to the government authorities to obtain relevant clearances.
3. To Government Authorities: The policy of government is to encourage selfemployment. For

this, a number of schemes are there to promote.

• Our government provides tax holiday which means non- payment of taxes for a specified
period or payment of taxes at nominal rates.
• When entrepreneurs cannot purchase separate accommodation, they can get one in industrial
estates on outright purchase or rent.
• Under Credit Linked Subsidy Scheme small entrepreneurs can get loan at concessional rate
of interest.
• Small entrepreneurs can enjoy exemption from excise duty.
• A large number of taxation benefits are offered to the entrepreneurs.
• Small entrepreneurs can get electricity at subsidized rates etc.
4. To Investors: One of the challenges before the entrepreneur is to get financial investors.
Armed with project report entrepreneur can approach potential investors and assess their
willingness to finance the business. Investors will evaluate the abilities of management team,
financial position of the company and commercial viability of the business. Investors are always
worried about their investment in the business. Entrepreneur should keep them well-informed
about new business opportunities, sales and financial targets. Thus, project report becomes the
main document based on which investors will decide their future course of action. Investors find
project report handy to analyze internal and external factors affecting the business.
5. To Suppliers of Equipment: Project report is of great importance to the suppliers of

equipment who provide to the entrepreneurs, equipment either on instalment payment facility or
on rent. These suppliers must be convinced about the financial strength of the company. The
suppliers are interested that credit is repaid regularly and on time. The entrepreneur must prepare
a schedule detailing how the loan will be repaid. On the other hand, suppliers often procure raw
materials supply from other sources. They want to be sure about the ability of the entrepreneur to
clear the liability in time. For this purpose, they desire to go through the project report.
Feasibility Study and its types:

Feasibility literally means whether some idea will work or not. It knows beforehand whether there
exists a sizeable market for the proposed product/ service, what would be the investment
requirements and where to get the funding from, whether and wherefrom thee necessary technical
know- how to convert the idea into a tangible product may be available and so on. If a project is
seen to be feasible from the results of the study, the next logical step is to proceed with it. The
research and information uncovered in the feasibility study will support the detailed planning and
reduce the research time.
Feasibility studies are important to business development. They can allow a business to address
where and how it will operate. They can also identify potential obstacles that may impede its
operations and recognize the amount of funding it will need to get the business up and running.

Types / areas of feasibility study:
1) Technical Feasibility: The technical feasibility refers to the ability of the process to take
advantage of the current state of art technology in pursuing further improvement. The technical
capability of the personnel as well as the capability of the available technology in relation to the
requirements of the proposed project idea should be considered and the extent of compatibility
should be studied.
2) Managerial Feasibility: The managerial feasibility involves the capability of the

infrastructure of a process to achieve and sustain process improvement. Management support,
employee involvement and commitment are the key elements required to ascertain managerial
feasibility. Managerial Feasibility studies is the objectively and rationally uncover the strengths
and weaknesses of an existing business or proposed venture, opportunities and threats which are
presented by the environment, the resources required to carry through, and ultimately the prospects
for success.
3) Economic Feasibility: The economic feasibility analyses, the feasibility of the proposed
project to generate economic benefits. A cost-benefit analysis and a break-even analysis are used
while evaluating the economic feasibility of new industrial projects. Primarily Economic
Feasibilities include the economic environment scanning of business region in local business
industry position and global business position. Also include quantification & identification of
expected economic benefits and cost/ benefits analysis, costs of business establishment and
operations, upfront start-up expenses, market penetration, expected revenues, expected cash flows,
rate of return, net present value and payback period.
4) Venture Feasibility: - Venture capital (VC) is the new trend in the entrepreneurial world.
Venture capital in simple terms mean the external funding provided by the professional venture
capitalist companies. Venture capital is related to equity whereas banks refer to debt (loan). In
venture capital the VC company acquires some stakes in the potential companies. Venture
capitalist companies take high risks, if the company performs well then, the VC company will earn
exponential financial growth but if it fails then it loses the money. as you can see how risky the
nature of it is, therefore, it becomes extremely necessary to do a stringent feasibility analysis.
5) Safety Feasibility: - Another important aspect that must be considered in project planning is
safety feasibility. Safety feasibility involves the analysis of the project in order to ascertain its
capacity to implement & operate safely with the least unfavourable effects on the environment,
employees etc. Every entrepreneur is responsible to provide a hazard free workspace. There is a

statutory liability on them, so it is their moral and legal responsibility to comply with all the rules
and regulations of carrying the projects safely. So, every entrepreneur must conduct a safety
feasibility report so that their employees are well protected. This exercise will enable the
entrepreneur to practice loss-control programme having four elements 1) safety budget 2) safety
records 3) entrepreneur’s personal concern and 4) entrepreneur’s sincerity and honesty.
6) Political Feasibility: Depending on the size of the project and its social and political
implications, a project may gain widespread support from the government or its opposition. This
means that there are unanticipated challenges that will come with this, on the other hand, the
government itself may be against the project because it differs with its political standing. This
makes political feasibility an important factor especially for large projects.
7) Environmental Feasibility: The environmental feasibility is very much important. If the

commissioning of the project results with any kind of pollution, it will be visible to the public,
administrators and politicians. If necessary, corrections and preventive measures are not taken by
the project firm to prevent/curtail pollution, the project will be forced to meet certain problems in
terms of opposition from different circles. As a result, sometime, the project firm may be pushed
to the corner of closure/re-location of the project itself which will cost the organization more.
IMPORTANCE OF FEASIBILITY STUDY

The value of a feasibility analysis is focused on the corporate urge to "get it right" before the
allocation of money, time or expenditure. A feasibility analysis could discover new ideas that
could totally alter the nature of the project. It is best to make these determinations ahead of time,
rather than rush in and find that the idea will not work. Conducting a feasibility study is often
helpful for the project, as it offers project management and other stakeholders a good view of the
planned project. The importance of Feasibility study can be assessed by the following:
• Shows the viability of company's vision- Every creation begins with an idea or a vision.
Once this idea materializes, it must stand the test of the everchanging preferences of the
consumers and the fierce opposition of the competitors. Therefore, it is necessary to gauge
the probability of achieving this idea. In other words, feasibility studies can be a vital
aspect of "rightsizing" the view.
• Help confirm company goals and objectives-Ideas are fantastic, but they are not as great
as their implementation. A feasibility analysis will help to explain the targets that need to
be set to be successful by offering metrics for the sustainability of the project. For eg, if
the community wishes to create an indoor/outdoor sports complex, a feasibility analysis
will consider the costs and risks as mentioned in the project report against its sales
opportunities. This will help in ratifying the target sales and profits set by the entrepreneur.
• Dropping unsound projects- Projects which are technically, financially or economically
not viable can be dropped at the initial stages. Such projects are not executed as they are
likely to fail soon and are not expected to give anticipated results.
• Avoidance of misuse of funds- The study indicates uneconomic projects, and decision is
taken to drop such projects. This ensures avoidance of misuse of funds in such projects.
This gives protection to promoters, investors and the national economy
• Indicates weak areas in the project- If weak areas are indicated in the feasibility study,
promoters can study such areas and find out remedial measures to overcome them and
rectify them before starting with the project.
• Documentary evidence- The feasibility study presents a full set of documents in the form
of a Feasibility Report. This helps to convince the investors that the project under
consideration has been well investigated
• For lending agencies- Banks or other financial institutions may undertake independent
feasibility study based on project report submitted by the sponsors. They would want to
examine the prospects of the project and the repayment of loan by the business
• For Government departments- Before granting permission or license to a project, govt
departments may conduct a feasibility study to avoid giving permission to uneconomic
projects Feasibility Report:
Flowchart:

8)
9) DISTINCTION BETWEEN PROJECT REPORT AND FEASIBILITY REPORT
Basis of Project report Feasibility report
distinction
Meaning The Project Report is a text that A feasibility study is a testimony
provides an outline of the planned that seeks to give rise to some form
company. The project report of motion. Feasibility analyses are
provides an account of the project intended to convince/help policy
proposal to assess the prospects for makers to select between the
the new plan/activity. choices available.
Preparation The Project Report can be prepared The Feasibility Report can be
by the sponsors with the help of prepared by potential developers or
experts, at the initial stage of project contractors who demand
formulation and planning commissions based on the valuation
of the proposal and
how comprehensive the planned
investment opportunity is.

Purpose Project report or business plan also It is prepared to determine whether

helps in taking the right decision, a project is technically workable,
proper coordination, proper usable within
utilization of resources, reducing projected cost and its profitable
costs and wastages, preparing
strategies.
Base Project planning serves as a base for Project report serves as base for
project report. It is prepared prior to feasibility studies. It is prepared
feasibility study. after feasibility studies.
Contents General information, executive Introductions, background,

summary, organization summary, requirements, evaluation of
project description, market various areas of feasibility and
planning, capital structure and conclusions.
operating cost.
Skills It requires limited knowledge and It requires knowledge, skills,

skills for preparation of Project Experience & maturity as it is a
Report as it contains only details of complicated and responsible works
the Project and experts are appointed for it
Entrepreneurship: Concept and importance of entrepreneurship, Factors Contributing to Growth of

Entrepreneurship, Entrepreneur, Manager and Intrapreneur- Comparative analysis, Incentives to
Entrepreneurs in India, Social entrepreneurship, Women Entrepreneurs: Opportunities and
Challenges.
Who is an Entrepreneur?
An entrepreneur is an individual who creates a new business, bearing most of the risks and
enjoying most of the rewards. The entrepreneur is commonly seen as an innovator, a source of
new ideas, goods, services, and business/or procedures. Entrepreneurs play a key role in any
economy, using the skills and initiative necessary to anticipate needs and bring good new ideas
to market. Entrepreneurs who prove to be successful in taking on the risks of a start-up are
rewarded with profits, fame, and continued growth opportunities. Those who fail, suffer losses
and become less prevalent in the markets.
How Entrepreneurs Work?

Entrepreneurship is one of the resources economists categorize as integral to production, the other
three being land/natural resources, labor and capital. An entrepreneur combines the first three of
these to manufacture goods or provide services. They typically create a business plan, hire labor,
acquire resources and financing, and provide leadership and management for the business.
Entrepreneurs commonly face many obstacles when building their companies. The three that
many of them cite as the most challenging are as follows:
• Overcoming bureaucracy
• Hiring talent
• Obtaining financing
The Entrepreneur and Financing

Given the riskiness of a new venture, the acquisition of capital funding is particularly challenging,
and many entrepreneurs deal with it via bootstrapping: financing a business using methods such
as using their own money, providing sweat equity to reduce labor costs, minimizing inventory,
and factoring receivables. While some entrepreneurs are lone players struggling to get small
businesses off the ground on a shoestring, others take on partners armed with greater access to
capital and other resources. In these situations, new firms may acquire financing from venture
capitalists, angel investors, hedge funds, crowdsourcing, or through more traditional sources such
as bank loans.
Entrepreneurs Impact the Economy

In economist-speak, an entrepreneur acts as a coordinating agent in a capitalist economy. This
coordination takes the form of resources being diverted toward new potential profit opportunities.
The entrepreneur moves various resources, both tangible and intangible. In a market full of
uncertainty, it is the entrepreneur who can actually help clear up uncertainty, as he makes
judgments or assumes the risk. To the extent that capitalism is a dynamic profit-and-loss system,
entrepreneurs drive efficient discovery and consistently reveal knowledge. Established firms face
increased competition and challenges from entrepreneurs, which often spurs them toward
research and development efforts as well. In technical economic terms, the entrepreneur disrupts
course toward steady-state equilibrium.
Entrepreneurs Help Economies:

Nurturing entrepreneurship can have a positive impact on an economy and a society in several
ways. For starters, entrepreneurs create new business. They invent goods and services, resulting
in employment, and often create a ripple effect, resulting in more and more development. For
example, after a few information technology companies began in India in the 1990s, businesses
in associated industries, like call center operations and hardware providers, began to develop too,
offering support services and products. Entrepreneurs add to the gross national income. Existing

businesses may remain confined to their markets and eventually hit an income ceiling. But new
products or technologies create new markets and new wealth. Increased employment and higher
earnings contribute to a nation’s tax base, enabling greater government spending on public
projects. Entrepreneurs create social change.
They break tradition with unique inventions that reduce dependence on existing methods and
systems, sometimes rendering them obsolete. Smartphones and their apps, for example, have
revolutionized work and play across the globe. Entrepreneurs invest in community projects and
help charities and other non-profit organizations, supporting causes beyond their own. Bill Gates,
for example, has used his considerable wealth for education and public health initiatives.
Importance of Entrepreneurship:
Entrepreneurs are seen as national assets to be motivated, cultivated, and remunerated to the
greatest degree possible. Entrepreneurs develop innovative ideas that provide civilization with a
large number of products and services which change the way we work and live. The importance
of entrepreneurship can be understood by what it does for society. The benefits they offer are by
creating job opportunities, improving standards of living, and contributing to the overall growth
of the economy (GDP).
Today, communities across the country are struggling. Workers are worried about their jobs, and
the youth is unsure of their future with little prospects of growth. There are no clear solutions but
entrepreneurs do come as innovators taking the economy and the society to a state of prosperity
and progress.
Importance of Entrepreneurship
Keeping the above in mind, let us take a look at the seven key importance of entrepreneurship:
1. Entrepreneurs are Innovators
With the rapid growth in technology, many occupations don’t exist anymore. For instance,
remember the elevator attendant or the movie film projectionist?
Entrepreneurs keep a close eye on these changes and take measures to fill the gaps. They
understand the negative impact of technological innovations and the loss of certain occupations
but they also sense newer opportunities that can be derived from this age of technology.
Consequently, they innovate and create new products.

These new products or services need more employees in the various fields of marketing, HR,
finance, operations, etc. Innovators observe consumer problems and find ways to address the
same. Their innovation is what creates employment.
2. Entrepreneurs create jobs
The importance of entrepreneurship can be understood by the number of jobs that are created
once entrepreneurs launch new businesses. These establishments become the source of job
creation. Entrepreneurs start a business in completely new domains and sectors. Take, for
instance, Byju’s – The Learning App. It provides educational content to school students in the
form of videos and online tutoring.
As of 2019, the organization has around 8,000 employees and none of these existed until the idea
of an online mobile application for providing tutoring and educational classes was started.
Think about the development of the internet. It has made tremendous progress but it also came
with its own set of troubles like cyber attacks, where criminals are trying to steal confidential
information and rob users. In response to the consumers’ needs, a software company developed
security applications that can defend and protect against attacks on websites.
To begin with, the idea was new and distinct but with time, competitors have emerged into the
business creating an entirely new industry of cybersecurity. This has resulted in more new jobs
for trained software developers.
Entrepreneurs significantly contribute to economic growth. The employees at their firms are seeds
planted for growth. These employees earn and spend their income on other businesses, thereby
increasing job opportunities in other businesses. This, in turn, enhances the overall quality of life
for employees and the people with them.
3 . Entrepreneurs improve the standard of living
The journey of entrepreneurship is dynamic. As they see a problem in the lives of the consumers,
they use their creative thinking to identify a solution.
They start a new organization and create employment. When new employees are hired, they are
remunerated, and this income is spent in the local economy. This generates an incremental wealth
for the population and results in raising the standard of living for all involved.
When a company launches a better product or service, competitors need to match or withdraw
themselves from the industry. Increasing competition forces everyone to improve their efficiency
and become better at their jobs. They don’t have a choice but to be more productive and live a
higher standard of living.

4. Entrepreneurs are Philanthropists e of the most highlighted importance of entrepreneurship

is the nature to give back to the community. As entrepreneurs earn for themselves and their
employees, they get involved in donations and charities. Infosys is a classic example of
philanthropy. Infosys Foundation supports the underprivileged sections of society in education,
destitute care, healthcare, culture, and rural development. Entrepreneurs donate generously to
veterans’ groups, homeless shelters, health organizations, and libraries. As a result, the entire
economy develops and flourishes. This would not have been possible if entrepreneurs did not
start new businesses and did not offer jobs to employees.
5. Entrepreneurs introduce changes in the community
Entrepreneurship benefits the local community and society. The new company hires employees
who earn an income to spend at local stores. This generates more business for the store owners.
When one business grows, it contributes to the progress of another.
Some business organizations require highly skilled individuals. This creates a demand for
schools, intern programs, and workshops that can provide skill training. The community responds
to the demand by creating training institutes and everyone in the community advances. The
company hires the kind of individuals it requires and the community gets highly educated and
trained individuals.
Entrepreneurs make arrangements for organizing food drives, building houses, funding cleanups,
and giving to local charities. Some may also contribute to the upliftment of infrastructure in
society. This significantly helps in the growth and development of the community.
6. Entrepreneurship leads to economic growth
Entrepreneurship is a process that starts with new businesses making money for civilization. New
industries add economic wealth as entrepreneurs invest funds to create new products and services.
Venture capitalists and angel investors also provide more capital increasing the number of funds
that are put into the growth and success of the organization.
Businesses earn profit and pay taxes; employees pay income tax. The government utilizes this
additional income to stimulate the economy and generate better facilities. It leads to an overall
increase in the country’s gross domestic product (GDP).
7 . Entrepreneurs support other entrepreneurs
Some entrepreneurs move on to also become mentors and consultants. This is because they have
a passion for their business and like to guide aspiring innovators on their path to success.

Seasoned entrepreneurs can share the common mistakes, the obstacles, the usual challenges, and
the methods to overcome the same. This allows a newbie to save on time, which would have
otherwise been spent on making mistakes out of business immaturity. It also helps in saving
money and other crucial resources. Entrepreneurs can advise on ways to arrange funds – like
obtaining loans for entrepreneurship. They establish local groups and communities that can
interact with each other, brainstorm ideas, discuss the hurdles of starting a business, hire
employees, etc.
Conclusion:
Entrepreneurs do a lot apart from just identifying and introducing innovative solutions to
consumer problems. With their work, the society is benefited in several ways such as creating
employment, increasing spending capacity, purchasing supplies from local vendors, raising the
standard of living, volunteering for charities and donations, and contributing to the prosperity of
other organizations. The importance of entrepreneurship is vast since they create engines that
spearhead the economic growth of a country like India.
FACTORS CONTRIBUTING TO THE GROWTH OF ENTREPRENEURSHIP
• What is Entrepreneurship?
Entrepreneurship is the ability and readiness to develop, organize and run a business enterprise,
along with any of its uncertainties in order to make a profit. The most prominent example of
entrepreneurship is the starting of new businesses.
In economics, entrepreneurship connected with land, labour, natural resources and capital can
generate a profit. The entrepreneurial vision is defined by discovery and risk-taking and is an
indispensable part of a nation’s capacity to succeed in an ever-changing and more competitive
global marketplace.

• Factors Contributing to the Growth of Entrepreneurship

The post-independence period in India witnessed the growth of entrepreneurship
development. The factors can be broadly divided into two groups:
a. Economic Factors
b. Non-Economic Factors
A. Economic Factors
1. Bank Credit: The banks of providing credit facilities to entrepreneurs. Small entrepreneurs
come under the priority sector. As per RBI directives, banks must provide funds to the
priority Sector (40% of total lending) at low interest rates. The increase in bank credit to
entrepreneurs is due to:
i.Increase and bank deposits.
ii.Decrease in CRR and SLR since 1991.
iii.RBI guidelines on lending to the priority sector.
2. Competition: The competition in Indian market has been at a greater pace, especially after
1991. The Government of India has liberalised the Indian economy. FDI has increased
across several industries. In 1991, FDI was increased to 51% in certain high priority
industries. At present, FDI is allowed even up to 100% certain sectors such as pharma,
exports, tourism, etc. The government has also started the process of dereservation of public
sector, which has generated competition between the public sector and private sector. The

dereservation of items from the SSI list has further increased competition between the large
sector and the small sector.
To face competition, there is a need for entrepreneurs to come up with:
i. Innovative or new products.
ii.Innovative techniques or methods.
iii.Innovative schemes to promote products, etc.
3. Increase in Demand: The demand in Indian market (urban as well as rural) has increased
especially in the post reform period. The increase in demand is mainly on account increased in
purchasing power of the people (due to employment).
With the increase in purchasing power, people demand new and better type of goods and
services. This has given scope to the development of innovative products and services.
4. Economic Infrastructure: In India, the economic infrastructure facilities have improved,
especially in the post reform period. But power sector is still lagging even in urban areas. The
infrastructure facilities that improved considerably include the transport and the telecom sectors.
With the growth of infrastructure facilities, entrepreneurs are at a better advantage in setting up
new units, especially in small towns and cities.
5. Funding by Venture Capitalists: A number of venture capital funds have come up in India
to provide funds to new enterprises. Venture capital providers invest in firms that have the
potential to develop into successful ventures.
The venture capitalists provide three types of funding:
i.Equity capital
ii.Loans
iii.Mezzanine funding (partly equity and partly debt)
In 1988 ICICI Ventures was set up and soon followed by Gujarat Venture Finance Limited
(GVSL). Due to timely infusion of funds by Venture Capitalists, entrepreneurship gained
momentum in India.
6. Government Incentives: The Central and State Governments provide number of incentives
to entrepreneurs, which have given a boost to entrepreneurship development in India. The
incentives include:
i.Incentives for Research & Development.
ii.Tax holiday for setting up units in backward areas.
iii.Cash subsidy.

iv. Loans at low interest rates.
B. Non-Economic Factors
1. Professionalism in Business: The concept of professionalism in business has entered in the
Indian corporate world. Indian firms, large or small, have realized the importance of
professionalism in business activities. Professionalism implies systematic operation of
business activities - right from the conception stage. The professional firms place emphasis
on market research, research & development, quality control, use of appropriate technology,
training to employees, and so on. The professional attitude is largely responsible for the
entrepreneurship development in India.
2. Personal Factors: The personal factors are also responsible for entrepreneurship
development in India. The younger generation has developed a greater need for independence.
The young entrepreneurs want to do things in their own way as they do not like to work for
someone else. Also, the need for achievement drives young persons to set up new enterprises.
The willingness to assume risks has also increased, especially in the case of talented and
educated youth of today. Therefore, the three factors - need for independence, need for

achievement, and willingness to assume risks - have contributed to the development of

entrepreneurship in India.
3. Quality Consciousness of Customers: Over the years, customer expectations have
increased. They expect quality of goods at lower prices. Also, Indian customers have shown
growing preference for new and better type of goods. Young entrepreneurs are coming up
with innovative products to satisfy customer requirements. Therefore, entrepreneurship in
India has got a boost.
4. Reduction in Bureaucratic Formalities: In the post-reform period, there has been a
reduction of bureaucratic formalities. Reduction in bureaucratic formalities has motivated
young entrepreneurs to venture in business field.
For instance, the Government has abolished licensing for most of the industries. Therefore,
the businessmen can concentrate on productive activities like market research, R & D, training
to employees, etc. They need not waste their time, effort, and money, on procuring licenses.
5. Social Support for New Ventures: There has been increasing social support for new ventures
from family members, relatives and friends. Setting up a good business venture is supported
by family members and others. The support is both emotional and economical. For instance,
in urban areas, the concept of double income families is on the increase. One member may
work for a fixed income or salary and the other member may operate a business venture. Even
if the venture does not perform well, the family may not be badly affected on financial grounds
because of the fixed income earned by one member of the family.
6. Socio-Cultural Factors: The socio-cultural factors have undergone a change in India. The
Indian society has become socially and culturally more advanced, more so if the post reform
period.
The society gives importance to entrepreneurs, and therefore, entrepreneurs enjoy a special
status in the society. As a result of growing importance for entrepreneurs, young talents with
innovative ideas are entering into the field of entrepreneurship.
7. Training Facilities: Nowadays, entrepreneurs are sharpening their knowledge and skills due
to the training support provided by various training institutes. Entrepreneurship Development
Programmes (EDPs) are designed by various institutes such as:
i.Small Industries Development Organisation (SIDO)
ii.Entrepreneurship Development Institute of India (EDII)
iii.National Small Industries Corporation (NSIC) iv.National Institute for
Entrepreneurship and Small Business Development (NIESBUD) v.District Industrial
Centres (DICs).

C. Government Policies
1.Make in India Policy: Make in India is a new national policy designed to transform India into
a global manufacturing hub. It contains a raft of proposals designed to urge companies – local
and foreign – to invest in India and make the country a manufacturing power house. The focus of
make in India policy is on creating jobs and skill enhancement in 25 sectors. It includes major
new initiatives designed to facilitate investment, foster innovation, project intellectual property,
and build best – in – class manufacturing infrastructure.
Since more and more brand will come and start with manufacturing and services in India. This
will not only boost employment but also create a competition between our new brand and foreign
brand. This competition will ensure that our home brand will improve their market against foreign
brand. Not just this youth will come up to take benefit of this situation. And the one with best
business adaption will succeed.
2. Startup India Scheme: Startup India is an initiative of the Government of India. The
campaign was first announced by Indian Prime Minister, Narendra Modi during his speech in 15
August 2015 address from the Red Fort, in New Delhi. Startup India is a flagship initiative of the
Government of India, intended to catalyze startup culture and build a strong and inclusive
ecosystem for innovation and entrepreneurship in India. Since the launch of the initiative on 16th
January, 2016, Startup India has rolled out several programs with the objective of supporting
entrepreneurs, and transforming India into a country of job creators instead of job seekers. The
broad scope of Startup India’s programs is outlined in the Action Plan below, and is managed by
a dedicated Startup India Team, which reports to the Department for Industrial Policy and
Promotion (DPIIT).
3. ASPIRE: The government has made continuous efforts to improve the social and economic
aspects life in rural areas of India. Since 56% of the Indian population lives in the rural areas, the
government is promoting entrepreneurship and innovation in this sector. The ASPIRE scheme
aims at increasing employment, reducing poverty, and improving innovation in rural India.
However, the main idea is to promote the agro-business Industry. The Ministry of Medium and
Small Enterprises has tried to get economic development at the grassroots level. The total budget
plan is of Rs. 62.5 crores for the years 2014-2016.
4. MUDRA Bank: Micro Units Development Refinance Agency (MUDRA) Bank has been
created to enhance credit facility and boost the growth of small business in rural areas. The
government has introduced this scheme to support small business in India. In 2015, the
government allocated 10,000 crores to promote startup culture in the country. The MUDRA banks
provides startup loans for Rs. 10 lakhs to small enterprises, business which are non-corporate,
and non-farm small/micro enterprises. It comes under Pradhan Mantri Mudra Yojana (PMMY)
which was launched on 8 April 2015. The loans have been categorized into Tarun, Kishore, and
Shishu. The assets are created through the bank’s finance and there is no collateral security.

5. Atal Innovation Mission: In the budget of 2015, the government established the Atal
Innovation Mission (AIM) with the name coming from the Former Prime Minister of India, Atal
Bihari Vajpayee. The Atal Innovation Mission was established to provide a promotional platform
which will involve academicians and draw upon national and international experiences to foster
a culture of innovation, research, and development. The government allocated AIM about Rs. 150
crores in the year 2015.
6. eBiz Portal: This is the first electronic government-to-business(G2B) portal. The main
purpose of the portal is to transform and develop a conducive business environment in the
country. The eBiz portal was developed by Infosys in a public-private partnership model. It is a
communication center for investors and the business communities in India. The portal has
launched 29 services in 5 states of India, viz., Andhra Pradesh, Delhi, Haryana, Maharashtra, and
Tamil Nadu. The government will add more services to the scheme in the future.
7. And many other such policies which contributes to the growth of entrepreneurship are:
i. Dairy Processing and Infrastructure Development Fund (DIDF)
ii. Ministry Of Skill Development and Entrepreneurship
iii. Support for International Patent Protection in Electronics & Information Technology (SIP-EIT)
iv. Multiplier Grants Scheme (MGS)
v. Credit Guarantee Scheme for Startups (CGSS)
vi. Software Technology Park (STP) Scheme
vii. The Venture Capital Assistance Scheme (VCA)
viii. Loan For Rooftop Solar Pv Power Projects
ix. NewGen Innovation and Entrepreneurship Development Centre (NewGen IEDC)

x. Single Point Registration Scheme

xi. Modified Special Incentive Package Scheme (M-SIPS)
LEGAL PROVISIONS FOR ENTREPRENEURSHIPS.
Every enterprise aims to get success or more profit. That is, they focus mor on growth-oriented
strategies but there should be means to check such growth which takes place. Hence, certain rules
or norms are well established which every enterprise need to follow or adhere to. While it is good
to have a strong focus on customer or on market, but it is equally good to have critical
understanding about the basic laws, rules and regulations that are applicable for the smooth
running of the business. Here are some important legal provisions that every entrepreneur should
be aware of-
1.Formalizing a business structure and a founder’s agreement- Initially, before starting any
business, one should be very clear about the nature, size and the type of the business he is going
to deal with. Founder need to specify the type of businesses like sole proprietorship, private
limited, public limited, partnership, limited liability partnership etc. This is very vital step as each
business type has its own established rules and regulations and accordingly any firm makes its
visions and goals, either short-term or long-term. For example, in sole proprietorship, a proprietor
is taxed as individual, based on his total income whereas partnership profits are taxed as per the
slabs provided under Income Tax Act, 1961 plus surcharge and cess as applicable.
Secondly, it is also advisable to draft a founder’s agreement which is the agreement which
displays the details of the founding team, core members and the business like roles, executives,
responsibilities, operational details, etc. The purpose of such an agreement is to reduce the
possibility of surprises when the company is fully functional.
2.Applying for business licenses- This is another very essential provision for any kind of
business. Depending upon the kind of business set-up one has, licenses has to get issued. The
common license that is applicable for all business is Shop and Establishment Act which is
applicable to all premises where trade, business and profession is carried out. Other licenses like
VAT Registration, Service Tax Registration, Professional Tax etc. are for e-commerce company
while for a restaurant owner, licenses like Food Safety License, Certificate of Environmental
Clearance etc. are applicable. Business licenses are the legal documents that allow a business to
operate while business registration is the official process of listing a business (along with relevant
information) with the official registrar.
3.Understanding Taxation and accounting Laws- As an entrepreneur, one should very well
know the various taxes that are levied during ordinary course of a business. Also, being regular
updated with the new taxation policies that government launches is a prior requirement. For
example, recently Indian government launched ‘start-up India’ under which it introduced many

exemptions and tax holidays for many new businesses. It has laid out certain criteria like the
startup should not be more than 7 years old (or 10 years for biotech) from the date of
incorporation, to avail this drive. As far as business accounting is concerned, it is good hygiene
to maintain proper books of accounts and audit them from time to time in order to ensure that
relevant accounting and taxation rules are adhered to. Given the small size of business, many
start-ups initially do not pay close attention to accounting requirements. However, this situation
cannot be ignored for long as it can lead to serious accounting discrepancies.
4.Adhering to labour laws- Whether it is small-scale business or a large-scale business, if any
firm has hired labours or employees, certain established laws in regards with workers has to be
followed and implemented strictly. Few labour laws are-
The Industrial Disputes Act, 1947- Enacted on 11th March 1947 and It came into force 1 April
1947. It was replaced by the Industrial Relations Code, 2020. The objective of the Industrial
Disputes Act is to secure industrial peace and harmony by providing mechanism and procedure
for the investigation and settlement of industrial disputes by conciliation, arbitration and
adjudication which is provided under the statute.
The Act also lays down:
The provision for payment of compensation to the workman on account of closure or lay off or
retrenchment. The procedure for prior permission of appropriate Government for laying off or
retrenching the workers or closing down industrial establishments. Unfair labour practices on part
of an employer or a trade union or workers.
The Trade Union Act, 1926- The trade Unions Act, 1926 provides for registration of trade unions
with a view to render lawful organisation of labour to enable collective bargaining. It also confers
on a registered trade union certain protection and privileges. The Act extends to the whole of
India and applies to all kinds of unions of workers and associations of employers, which aim at
regularising labour management relations. A Trade Union is a combination whether temporary or
permanent, formed for regulating the relations not only between workmen and employers but also
between workmen and workmen or between employers and employers. This also merged in the
Industrial Relations Code, 2020.
Building and Other Constructions Workers’ (Regulation of Employment and Conditions of

Service) Act, 1996- It is an Act to regulate the employment and conditions of service of building
and other construction workers and to provide for their safety, health and welfare measures and
for other matters connected therewith or incidental thereto.

The Industrial Employment (Standing Orders) Act, 1946- This act also got merged in the
Industrial Relations Code, 2020. In this act employers are required to formally define the
conditions of employment and to make the said conditions known to the workmen employed by
them. The respective states may enact specific rules for effective administration and monitoring
of the act. It extends to the whole of India and applies to every industrial establishment wherein
one hundred or more workmen are employed, or were employed on any day of the preceding
twelve months. The appropriate Government may, after giving not less than two months’ notice
of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act to
any industrial establishment employing such number of number of persons less than one hundred
as may be specified in the notification.
The Payment of Gratuity Act, 1972- In India, gratuity is a type of retirement benefit. It is a
payment made with the intent of monetarily helping an employee after his or her retirement. The
Payment of Gratuity Act, 1972 is an act that provides a scheme for the payment of gratuity to
employees working in railways, ports, factories, oilfields, plantations, mines, shops or other
establishments and for matters connected therewith or incidental thereto.
The Contract Labour (Regulation and Abolition) Act, 1970- The Object of the act is to prevent
exploitation of contract labour and also to introduce better conditions of work. A workman is
deemed to be employed as Contract Labour when he is hired in connection with the work of an
establishment by or through a Contractor. Contract workmen are indirect employees. Contract
Labour differs from Direct Labour in terms of employment relationship with the establishment
and method of wage payment. Contract Labour, by and large is not borne on pay roll nor is paid
directly. The Contract Workmen are hired, supervised and remunerated by the Contractor, who
in turn, is remunerated by the Establishment hiring the services of the Contractor.
5.Ensuring protection of intellectual property- Intellectual property is the secret sauce for most
businesses today, especially for tech centric businesses. Codes, algorithms and research findings
among others are some of the most common intellectual property owned by organizations. Apart
from this, it is also expected to not to disclose or make wrong use of other’s intellectual property.
6.Ensuring effective management contract- Contracts lie at the crux of running any business.
A contract is required to ensure the smooth functioning of work and is a great mechanism to
ensure recourse in case of non-fulfillment of work. Having basic knowledge about various aspects
of contract management can prove to be useful for entrepreneurs. As per the Indian Contract Act,
1872, all agreements are contracts if they are made by the free consent of parties competent to
contract, for a lawful consideration with a lawful object, and are not expressly declared to be void.
Employees contracts are the most crucial contract which discloses about the salary, scope of work,

stock options etc. and this is the most recommendable contract not only for start-ups but also for
big ventures which will reduce risks at later point of time. Many a times, founder of new start-
ups discuss ideas with potential investors, customers or with employees and due to which there
involves risks of theft of ideas. For this it is recommendable to have NDAs- non disclosure
agreements.
7.Details about winding down the business- Closing down of business is a very big and risky
decision and one cannot abruptly decide to shut down its venture. There are stakeholders from
vendors, investors to customers who will be affected with this decision. From the legal standpoint,
there are basically three ways to shut down a start-up:
Fast Track Exit Mode
Court or Tribunal Route
Voluntary Closure
The Fast-Track Exit Mode is the best suited for start-ups as it allows companies to expedite
shutdown at a lower cost and a shorter time period. In order to apply for a fast -track exit, a
company should (a) not have any assets and liabilities (b) not have had any business operation
for the past year. If these two conditions are met, the company can be struck off the registrar of
the Registrar of Companies (RoC). Another quick way for a company to shut down is through
Voluntary Closure; however, this requires the shareholders and/or creditors of the company to be
on the same page with regards to the details of the closure. The traditional mode of closure via
courts or tribunals is not the best suited for start-ups as it involves several meetings with various
stakeholders leading to prolonged court proceedings.
In addition to the above stated means, The Insolvency and Bankruptcy Bill, 2015 is a new closure
tool that entrepreneurs can use. Leveraging this bill requires start-ups to have simple debt
structures, where an insolvency professional is hired to liquidate the assets of the company within
90 days, in accordance to the ‘Start-up India Action Plan’.
If a start-up does not wish to operate but also not shut down, it can apply to be a ‘Dormant
Company’, that allows a company to stay afloat with minimum compliance. However, a company
dormant for a period of 5 years is automatically struck off from the RoC.
Intrapreneur and Entrepreneur
• Who is an intrapreneur?
An employee who is given the financial support and resources to create new products, services,
and systems, is called an Intrapreneur. They are also called as “Intra-corporate entrepreneurs”

• Who is a manager?
Manager is a person responsible for controlling or administering an organization or group of
staff. Comparative Analysis
Entrepreneur and Intrapreneur.

Difference Entrepreneur Intrapreneur
Dependency An Entrepreneur is an independent An Intrapreneur is semi
business man. independent businessman.
Risk An Entrepreneur bears full risk An Intrapreneur does not fully bear
involved in the business. the risk of the business he develops
and operates.
Operations An Entrepreneur operates from
On contrary, an Intrapreneur
outside an organization.
operates from within the
organization itself.
Raising of The Entrepreneur himself raises the
capital from various sources. On the other hand the Intrapreneur
does not raise the capital himself.
Characteristics The entrepreneur is an innovator. Whereas the Intrapreneur is a creator
or inventor.
Entrepreneur and manager.

The main difference between Entrepreneur and Manager is their role in the organization. An
entrepreneur is the owner of the company whereas a Manager is the employee of the company.
Entrepreneur is a risk taker, they take financial risk for their enterprise. The entrepreneur has a
vision and focuses on achievements and profit.
Entrepreneur Manager
Entrepreneur is a visionary and bears all Manager works for salary and
Risk taking financial risk. does not have to bear any risk.
Focused Focuses on starting and expanding business Focuses on daily smooth
ideas. functioning of business.
Motivational Key motivation for entrepreneur is Manager motivation comes from
Factors achievements the power that comes from
position.

Reward Reward for all efforts is profit that comes Remuneration is the salary that
from enterprise. he/she draws from the company.
Approach Entrepreneurs approach can be casual and Managers approach to every

followed informal. problem is very formal.
Comparative analysis, (all three):
Women Entrepreneurship
Women entrepreneurship has emerged as a matter of concern in the recent years. It lays stress on
utilizing women’s leadership skills, decisiveness, and innovative ideas for economic and social
development. Over the past years, there has been a rise in recognition and acceptance of women
in leadership positions in the corporate sector. Leading conglomerates are appointing female
CEOs; today, there are more women running Fortune 500 businesses than at any time in the past.
As per data, there are more than 9 million firms in the USA which are owned by women,
employing around 8 million people, and generating around $1.5 trillion in sales.
However, in spite of all these developments, there are only a few companies where we can see
women in top positions. Moreover, recent data suggest that there is huge gender pay gap in

organizations, and female entrepreneurs are citing imaginary male co-founders for credibility and
recognition. These examples suggest that gender inequality is still a big problem in businesses.
Women are accepting entrepreneurship and are successfully leading businesses, facing and
overcoming various challenges. They are properly utilizing various opportunities and prospects
for accomplishing their own and their organization’s goals and objectives.
Opportunities and Advantages for Women in Entrepreneurship
1.Diverse and Innovative Workforce
Diversity – in gender, culture, age, and race – promotes innovation and creativity. Top companies
across the world aim to prioritize and benefit from a diverse and innovative workforce. Men and
women from different backgrounds bring in varied experiences with them, which shape their
approach to business. Challenging and collaborating with each other helps them in performing
creatively and taking the company forward.
2.Strength in Soft Skills and Emotional Intelligence is an Advantage for Women
Technical skills and knowledge are essential for success. But soft skills and emotional
intelligence are equally important. Emotional intelligence in leadership means self-awareness,
empathy, and the ability to listen. Although these characteristics are difficult to measure, they
can make a major difference. Women can utilize their experiences and soft skill aptitude with
emotional intelligence for properly leading their companies.
3.Ability to Create a Woman-friendly Corporate Environment
The corporate culture of many companies can work against women. But when a woman leads her
own company, she has the ability to establish an environment suitable for other women working
in the company. Being an entrepreneur, a woman can live a more authentic life and can create a
corporate culture more suitable to her own values.
Challenges for Women in Entrepreneurship

1.Socio-cultural challenge
In India, women have to perform the multiple responsibilities towards family and society
irrespective of her career as working woman or an entrepreneur. These complicated
responsibilities become the impediment in the progress of women and handicap them in the world
of work.
2.Marketing challenge
Women is lacking in sales and marketing skills that proves to be a graveyard of many small-scale
women entrepreneurs. It has been found that the small-scale entrepreneurs, owing to their high
achievement of market orientation, generally set higher goals in terms of marketing of their

products/ services but later on find them difficult to achieve because of stiff competition,
incurring huge advertisement cost and many other extraneous factors.
3.Challenge in Occupational Mobility
The challenge of shifting their product line from one line to another is the area where women
entrepreneurs are very weak to establish as a winner and thereby occupational Mobility proves
to be the weakness for women entrepreneurs.
4.Challenge in Government Assistance
The women entrepreneurs were infuriated by the indifferent attitude of government officials of
all the small industry related departments like taxation, labour, power, etc. i.e., when the
authorities come to know that the unit is being run by a woman, they discourage allotting sales
tax number and giving electricity connection. Above all they have ignorance about various
procedures, laws, and complicated bureaucratic set-up while dealing with entrepreneurial support
organizations.
5.Production challenge
The women entrepreneur has lack of management potential and therefore she is not able to control
the overall activities production in a manufacturing enterprise. The improper coordination or
unintended delay in execution of any activity is going to cause production problems in the
industry leads to closure of venture.
6.HR related challenges
The success of any business is based upon the efficient management of people in an organization.
Most of the women entrepreneurs are lacking in management and are also unable to change the
negative attitude of labour force. Moreover, the women entrepreneurs admitted the lack of
experience and self-confidence on their part to deal with personnel working in their organizations.
7.Administrative and Regulatory Challenges
The issues related to administrative and regulatory has been often found among the women
entrepreneurs. Micro enterprises of all types can experience problems in meeting administrative
and regulatory requirements, because of the disproportionate effect of compliance costs on small
companies compared with large firms. As a consequence, it is not surprising that almost half the
support organizations specializing in support for female entrepreneurs identified a problem for
their clients in this respect. At the same time, with a few exceptions, administrative and regulatory
barriers more significant for female owned businesses than for male owned firms of a similar
size.

8.Challenge of Management Skills or Training
Women entrepreneurs lacked management skills to a greater extent than small businesses in
general, perhaps because of their lower propensity to have had previous business experience
Although difficulties in accessing business advice or support appears to be a minor rather than
major problem for women entrepreneurs, a significant minority of specialist organizations felt
than women are particularly disadvantaged in this respect. Difficulties with language caused
problems for their clients or members, with five feeling that women faced specific difficulties in
this respect.
9.Male dominancy challenge
India is known for its male dominance in the field of entrepreneurship. A woman is dominated
by men in her family as well as in business. Often, she has to obtain permission from men for
almost everything. They are not treated as equals. Her freedom is restricted. She always has to
consult and get approval of men.
10.Low risk bearing ability
Indian women found her dependent right from the childhood. Before marriage parents take
decisions for her and after marriage her husband takes over. She is protected throughout and thus
possesses low risk bearing ability.
11.Limited mobility
Due to primary household responsibilities towards her family, her time gets divided between the
two worlds. She has restricted timings for work due to which, she is not in a position to travel
frequently and be away for longer periods. Thus, her mobility is restricted. This also has an
implication on business.
12.Lack of confidence
In India women always remains dependent on family for every decision and thereby becomes
unable bring self-confidence. Due to this reason, even at home, family members do not have
much faith in women possessing the abilities of decision-making. Apart from the above hurdles,
various policies and efforts h
13.Gender Discrimination at Workplace

Most of the industries are male dominated. It is more of a challenge when a woman comes in as
a leader, and gives men directions. While most corporates believe in gender equality, and agree
that the best person, irrespective of gender, should get the job, there have been many instances
where a woman having a gender-neutral name gets the job. This proves that unconscious
organizational gender bias does exist. Women, right from a young age are instructed not to be
‘bossy’, whereas, men are encouraged to be assertive and aggressive.

14.Difficulty in Acquiring Funds
Those start-ups who look for investors to help them start their business know how difficult the
pitching process can be. It can be even more difficult in case of women-owned firms. Many
investors are sceptic about investing on women-led companies because they may think that
women can’t be successful as entrepreneurs. They may feel that women entrepreneurs won’t be
able to lead their company towards success, as a result of which they may incur losses. This may
lead the investors to hesitate in financially supporting women entrepreneurs.
15.Building a Viable Support Network
Another major hurdle and challenge for women entrepreneurs is the lack of efficient advisors and
mentors. As per data, around 48% of female founders say that a lack of able advisors and mentors
limits their professional growth. The majority of the high-level business world is still male
dominated and it is very difficult for women entrepreneurs to create their own path and facilitate
the introductions and connections into some of the top-notch business networks.
Examples of women entrepreneurs: -
RUPA RANI
Confederation of women Entrepreneurs, as the name suggests is an

NGO/social organization engaged within the social and economic upliftment of women through
entrepreneurship. COWE slogan "Gearing women power" stands for the democratic structure of
COWE and stands for "Of the women, for the women, and by the women”. She has organized

many workshops for women in Pulakeshinagar, Sumangali Seva Ashram, Hebbal, and
surrounding areas of RT Nagar. She has also helmed workshops in IT sectors for companies like
GE, Wipro, ANZ Bank, Accenture, etc. She has also participated in international events and trade
fairs in countries like Singapore, Malaysia, Sri Lanka, Poland, Bangkok, and Egypt. COWE has
also opened chapters in Andhra Pradesh, Delhi, Jharkhand, Tamil Nadu, Uttar Pradesh,
Uttarakhand, and West Bengal and is hoping to open more chapters across India. And now the
Karnataka chapter is taking a delegation of girls’ entrepreneurs to Hong Kong to explore
international trends and markets during the style Week. The idea is to seem for ideas to sustain
businesses in India and to seem for innovative products.
Life before: Meanwhile, through organizations like AWAKE and COWE, she travelled with a
lot of delegations and took part in conferences. At COWE's Karnataka chapter, institutions train
women in image consultancy, fashion technology, decorating candles, apparel designing,
chocolate making, and more. Many women from the IT sectors are quitting their jobs and taking
over entrepreneurship because they don’t want to slog for somebody else.
The struggles faced...In her quest to empower women, she has realized that she may try her best
to show the way forward but only a few women try to take the knowledge about the schemes
forward. Now, she is taking these women entrepreneurs to Hong Kong during a delegation to
point out them the planet of opportunities that exist out there. “I attempt to show them that this is
often a golden opportunity for them to seek out new business avenues. Skills are required in the
field of entrepreneurship one should have passion, knowledge about what they are doing, and the
ability to invest”, she says. COWE conduct counselling sessions for ladies to understand their
interests and make them ready for the longer term.
Vandana Luthra
Often women need to face tons of restrictions before and after marriage due to judgmental
societies. But we cannot blame every society because there are tons of societies who have
changed their own old thinking and started respecting women. Here is a woman entrepreneur’s
journey from a young mother to an entrepreneur. Her name is Vandana Luthra who isn't just an

excellent mother or a wife but also a far better entrepreneur. Vandana Luthra is an Indian
inspirational entrepreneur who is the founder of VLCC Health care Ltd. The company sells
beauty products and is a wellness conglomerate. The company is dispensing in the Middle East,
Africa, Asia, and Europe. In 2014 she became chairperson of the Beauty and wellness sector
skills council that is not a profitable organization, the B&WSSC gets financial support from
NSDC which comes under the Ministry of Skill Development and Entrepreneurship.
Early life: Vandana Luthra was born in New Delhi in 1959. Her father was an engineer, and her
mother was an ayurvedic doctor who was running a charitable initiative - Amar Jyoti. This
motivated her to impact people's lives, and hence, after completing her graduation from the
Polytechnic for ladies in New Delhi she visited Europe to realize expertise in beauty, food and
nutrition and skin care.
Challenges faced: VLCC is a renowned brand

with international presence in over 11 countries
having Indian roots and a female founder
Vandana Luthra. She started this within the
times when women were not allowed to travel
out of the house, including something of a
professional capacity, that too, a start-up which
was an idea which was a decade ahead of its
time. Vandana Luthra started this in 1989, a time when people didn’t even care about fitness or
food including nutrition or appearances. Despite the support offered by her husband Vandana
wanted to try to to make it on her own and took a little loan from a bank, thanks to the unique
concept she succeeded in getting people flocking to his company after facing some initial hiccups.
In male-dominated times, she faced a lot of criticism and other people who tried to bring her
down, but it had been her strength to face by her belief within the idea that was unique, unusual
to mention the smallest amount and was never introduced in India before. Inspiration to form
other people’s lives better came to Vandana from her parents, she was an eyewitness in her
childhood of her folks inviting neighbourhood kids to observe TV when they bought their first
one, and it was a rarity to have at that time. Furthermore, her mother ran a trust named Amar
Jyoti which was amongst the primary ones within the field of education and educated kids from
nursery to class VIIth, those with disabilities were also empowered.
Benefits of Business Loans for Women
Business loans help women entrepreneurs streamline business operations, production processes,
eliminate cash-flow disruptions and expand to new markets. It also empowers Indian women to
challenge social norms and become economically independent. And with economic independence
comes social value and financial growth.

Financial growth also tends to attract investors and partnerships for a business enterprise, thereby
enabling a future full of exciting opportunities. This infuses confidence to interact with fellow
business owners and work with big clients.
With the right kind of financial help women can:
• Put their plans into action by grabbing opportunities that come their way
• Be their own boss by retaining control of their enterprise and keeping the valuable assets
protected
• Reduce cash-flow risks by bringing order to the working capital fund
• Build credibility and goodwill for business
GOVERNMENT INITIATIVES
Government Schemes for Developing Women Entrepreneurship

A big part of setting up a business is making capital available. And to help aspiring women
entrepreneurs realise their dream, the Government of India offers several schemes. A brief
summary of 7 such schemes is presented below:
1. Shringaar and Annapurna

Bhartiya Mahila Bank (now a part of the State Bank of India) offers several loans namely,
Shringraar (for beauty salons, spas), Annapurna (for food catering business), Parvarish
(for day care centres) and Kitchen Modernisation Loan (for maintaining and upgrading
the kitchen). The more popular ones being Shringaar and Annapurna:
• Women between the age of 20 to 60 years are eligible to apply for collateral-free loan
under these schemes
• For the Shringaar loan scheme, the maximum loan amount offered is up to Rs 10 Lakhs
and for the Annapurna scheme it is up to Rs. 50,000.
• For the Shringaar scheme, the loan tenure is 7 years and for the Annapurna scheme the
tenure is 3 years
• Shringaar scheme partners with Naturals, Cavin Kare and Lakme
2. Stree Shakti
Introduced by the State Bank of India during 2000-01, this scheme caters to women who
own businesses. It offers collateral free loans of up to Rs. 5 lakhs.
• To avail this loan, women need to own at least 51% of the business
• Any woman can avail a loan of up to Rs. 50 lakhs
• The tenure changes basis the loan amount 3. Orient Mahila Vikas Yojana Scheme

Launched by Oriental Bank of Commerce, Orient Mahila Vikas Yojana offers loans to
women for starting a business on their property. This is a collateral-free loan ranging
between Rs. 10 to 25 lakhs.
• This loan is offered to women who hold a 51% share capital of their property • The
loan has to be repaid within 7 years
4. Dena Shakti Scheme

Dena Bank’s Shakti Scheme is for women entrepreneurs who need financial assistance in
the field of agriculture, manufacturing and other small businesses. Herein, loans of up to
Rs. 20 Lakhs are sanctioned for education, housing or retail trading and loans of up to Rs
50,000 are offered under the category of micro credit.
• Women entrepreneurs with more than 50% ownership of a business can apply for the
Dena Shakti Scheme
• The repayment tenure is flexible, lasting up to 10 years
5. Udyogini Scheme
This loan scheme launched by Punjab and Sindh Bank is for women in the field of
agriculture and other small businesses. The maximum loan amount is Rs. 1 lakh
depending upon the family income.
• The loan is available to women between 18 to 45 years of age

• For widowed, destitute or disabled women, and women belonging to the SC/ST category,
a subsidy of 30% of the loan is provided; for women belonging to the general category, a
subsidy of 20% of the loan is provided
• Loan repayment tenure varies based on the loan amount
6. Cent Kalyani Scheme
Launched by Central Bank of India, this loan scheme is ideal for women managing SMEs,
involved in agricultural work or engaged in retail trading. Under this scheme, loans of up
to Rs. 1 crore are sanctioned so as to promote sustainable employment opportunities for
Indian women.
• No collateral or guarantors are required

• Loan repayment tenure is up to 7 years
7. Mahila Udyam Nidhi Scheme
Launched by Punjab National Bank, this scheme helps women set up new projects.
Under this scheme, different plans are offered for the purchase of auto-rickshaws, beauty
parlours, day care centres, etc. Loans of up to Rs. 10 Lakhs are sanctioned. •
Repayment tenure is up to 10 years

OTHER SCHEMES
THE WOMEN ENTREPRENEURSHIP PLATFORM

( WEP )
Niti Aayog
NITI Aayog has launched a Women Entrepreneurship Platform (WEP) for

providing an ecosystem for budding & existing women entrepreneurs across the
country. SIDBI has partnered with NITI Aayog to assist in this initiative. As an
enabling platform, WEP is built on three pillars- Iccha Shakti, Gyaan Shakti &
Karma Shakti.

Scheme Benefits & Highlights

In addition to providing services such as free credit ratings, mentorship, funding
support to women entrepreneurs, apprenticeship and corporate partnerships; WEP will
encourage entrepreneurs to share their entrepreneurial journeys, stories & experiences
to nurture mutual learning.
WEP platform, as a driver of change, will also promote offline initiatives and outreach
programmes to promote entrepreneurial spirit among potential women entrepreneurs,
in collaboration with partner organizations.Also, WEP offers incubation and
acceleration support to women founded / co-founded start-ups through its various
partners who handhold women entrepreneurs registered with WEP and provide them
necessary support to help them start and scale-up.
Besides this, there are other schemes launched by the government for the development
of women entrepreneurs such as Mudra Yojana scheme for Women, Orient Mahila
Vikas Yojana, TREAD (Trade Related Entrepreneurship Assistance and Development)
scheme, etc.
SOCIAL ENTREPRENEURSHIP
Introduction:
Social entrepreneurship is an approach by individuals, groups, start-up companies or

entrepreneurs, in which they develop, fund and implement solutions to social, cultural, or
environmental issues. This concept may be applied to a wide range of organizations, which
vary in size, aims, and beliefs. For-profit entrepreneurs typically measure performance using
business metrics like profit, revenues and increases in stock prices. Social entrepreneurs,
however, are either non-profits, or they blend for-profit goals with generating a positive "return
to society". Therefore, they use different metrics. Social entrepreneurship typically attempts to
further broaden social, cultural, and environmental goals often associated with the voluntary
sector in areas such as poverty alleviation, health care and community development.
Social challenges:
The question is how we harness technology, apply new knowledge, and boost entrepreneurial
approaches in a manner so that they can produce a maximum positive impact on critical social
issues the world is still facing. The problems are serious. Over two billion people continue to
live on just 2 US dollars a day or less. Wars, government atrocities, poor economic conditions,

and environmental changes are creating a massive pattern of migration. In many developing
countries, a large portion of the population lacks primary education and women and girls are
devoid of adequate human rights. Widespread food shortages and acute malnutrition are
affecting a large number of people in many countries which are caused by failing institutes,
dysfunctional systems, internal conflicts, poor governance, and natural disasters.
Definitions:
A social entrepreneur is a person who pursues novel applications that have the potential to
solve community-based problems. These individuals are willing to take on the risk and effort
to create positive changes in society through their initiatives.
“Social entrepreneurs find new methods, business models, and conduits to resolve pressing
social problems through their vision, desire, capability, and zeal. Social entrepreneurship
accentuates on finding solutions to deeply seated social problems that cause human misery” –
Margolis and Walsh
Concept :
Social entrepreneurship is the process of creating social value by establishing a venture which
could be a for-profit, nonprofit, non-governmental organization (NGO) or even a public
institution. The emphasis of a social enterprise can be directly targeted to social value creation
or indirectly through the creation of economic value that later translates into social or
environmental value. Examples of social entrepreneurship include microfinance institutions,
educational programs, providing banking services in underserved areas and helping children
orphaned by epidemic disease. Their efforts are connected to a notion of addressing unmet
needs within communities that have been overlooked or not granted access to services,
products, or base essentials available in more developed communities.
A social entrepreneur might also seek to address imbalances in such availability, the root causes
behind such social problems, or social stigma associated with being a resident of such
communities. The main goal of a social entrepreneur is not to earn a profit, but rather to
implement widespread improvements in society. However, a social entrepreneur must still be
financially savvy to succeed in his or her cause.

Meaning:
Social entrepreneurs are people from the private sector who are dedicated to making changes
in social challenges that are often the domain of the public sector. They are game-changers
with innovative ideas, ethical beliefs, strong problem-solving capabilities, and committed to
finding solutions to pressing social problems. They are the real change agents in the society
who develop creative methods to handle such stubborn social problems as illiteracy, hunger,
persistent diseases, juvenile crime, clean water shortage, sanitation, and drugs dependency
among many others and bring sustainable social values. They adopt social missions and find
innovative ways to pursue them through continuous learning, integrating new information and
realigning limited resources available to them. In the process, they often apply underutilized
resources, find volunteers, and figure out how to get public and private support for the causes
they are fighting for. In their efforts, they learn to do things differently, take stewardship of
investments, and find opportunities to resolve unmet social needs that attracted their attention.
They try to understand the root causes of the problems and find workable solutions to address
them. Social entrepreneurs build organizations, which could be for-profit or non-profit set
missions for both earning profits through the commercialization of innovative products or
services and make a social impact by taking care of a crucial social challenge .
Although entrepreneurship itself is not new, the concept of social entrepreneurship is, and
• addresses social problems or needs that are unmet by private markets or governments; •
is driven by social value creation; and
• is not antinomic of market forces.

SOCIAL & COMMERCIAL ENTREPRENEURSHIP - A COMPARISON

Commercial Social entrepreneurship
entrepreneurship
Focus Economic activity to generate To generate Social value for
value for entrepreneur and recipient of social goods
investors
Interest Profitable opportunities Opportunities and social value
Metric for Effectiveness Profit, shareholder value Social change, meeting social needs,
social impact
NGO V/S SOCIAL ENTREPRENEUR
Social Entrepreneurship is the process of bringing about social change on a major and more
effective scale than a traditional Non-Governmental Organization (NGO). They differ from
NGOs in that they aim to make broad-based, long-term changes, instead of small-scale and
timelimited changes. Furthermore, an NGO raises funds through events, activities and
sometimes products. However, raising money takes time and energy, which could be spent in
direct working and marketing processes. Above all, Social Entrepreneurs consider the affected
people as part of the solution and not as passive beneficiaries.
‘Social entrepreneurs bring about transformative changes in society and economy by
filling gaps and addressing unmet needs. They improve productivity and create value and
wealth’, Madhukar Shukla.Social business is about using creativity to solve human
problems in a sustainable way,” Muhammad Yunus. Features:
1)Healthy Impatience
Cases note that socially minded entrepreneurs want to change things right away, know it can
be done, and are sometimes frustrated that bureaucracy and the lack of political will, among
others, impede on social changes that could benefit the masses.
2)Zeal
Socially oriented entrepreneurs interlock zeal and passion, especially at the initial stages of a
short-term project or long-term initiative. They tend to believe wholeheartedly in their projects,
and therefore it is not unusual for them to log 80-hour weeks.This characteristic is also seen in
business entrepreneurs, who initially work tirelessly on their initiatives.

3)The desire to Change Others
At the core of every social entrepreneur is an unwavering willingness to change others,

especially people with whom he or she works.
That desire to alter mindsets also extends to people in power, as seen, for example, in the case
of Mohammed Yunus, the founder of the Grameen Bank, which did so much to revolutionize
the world of microfinance and enable lending to previously disenfranchised populations.
4)Commitment to Improve Social Welfare
Social entrepreneurs are socially committed first and foremost – that is a no-brainer.
But what differentiates them from, say, a company engaging in CSR, is their ability to fully
devote their time, energy and meager resources to make sure things actually change for the
better.
5)Innovation
Innovation is present in the minds of successful social entrepreneurs. They embrace technology
fully, finding new ways to make things, deliver products and services, heal people, improve
their lives…you name it.
The idea is to use expertise and competence acquired in the business world to change mindsets
and improve or save the lives of millions around the world.
6)Practicality When Solving Problems
Social entrepreneurship has no profit motive, but that does not mean social entrepreneurs don’t
pay attention to budgetary constraints.
The bottom line is that competent social entrepreneurs find smart ways to solve problems
without breaking their bank – which, again, is not really the case because they don’t have that
much money to start with, and therefore there is no real bank.
7)Risk Taking
Risk taking is essential in social entrepreneurship – and in any kind of entrepreneurship, for
that matter.It takes a special mindset to wake up one day and say you want to change things in
this world. The risk becomes even greater if you have no money, don’t have a posh social
background, leave your day job, or embark on a project that could cost you your livelihood…or
even your life.

8)Faith in Team Work
Teamwork is essential for social entrepreneurs. In a sector in which there often is not enough
money, resources or expertise, the only resources available are people – and time, if you can
call it a resource.
Therefore, social entrepreneurship revolves around the concept of crowdsourcing, tapping into
a team of faithful workers along with volunteers scattered around the world to identify worthy
projects, fund them and undertake them.
In a nutshell, patience, passion and perseverance are essential traits in a successful social
entrepreneur. But you also see unselfishness, an ability to take measured and sometimes
reckless risks, and a deep belief in humans. Some well-known Indians became aware of the
potential of
Social Entrepreneurship quite early. Two of them were the Social Entrepreneurs Dr.
Govindappa
Venkataswamy and Thulasiraj D Ravilla who established the Aravind Eye Hospital in 1976.
Since then, they have treated more than 2.4 million patients, often free of charge. Many others
have also contributed to the comparatively high levels of Social Entrepreneurship which have
been reached in India.
India has some of the most advanced and innovative social entrepreneurs. We believe and
already see that many of the models developed in India, for instance rainwater harvesting for
schools pioneered by Barefoot College, are exported around the world.” Thus, India is a key
country in developing social entrepreneurs. Several institutions help people to become
involved with Social Entrepreneurship, such as UnLtd India and the National Social
Entrepreneurship Forum (NSEF). Social entrepreneurs differ in their focus, resources,
approaches, and organisational structure created. They can be classified into local
changemakers (eg. Sebayan, Protsahan), public goods providers (eg. GreenSole, ToyBank,
Pratham, Akshaya Patra Foundation), constructive opportunists (eg. Help Us Green, I Say
Organic), social transformers (eg. RTI movement), and ecosystem builders (eg. Villgro). In
terms of formal structure, such organisations fall into the following categories: NGOs (eg.
CRY, ChildLine, Goonj, Helpage), revenue-generating social ventures (eg. Pratham, Milaap),
hybrid ventures (eg. non-profit Mother Earth and for-profit Industree Crafts), and social
enterprises (eg. Vaatsalya Hospitals). Corporates may also cultivate a sense of social
responsibility through CSR initiatives. In India, the legal entity options for social ventures
include public charitable trust, registered society, cooperative society, producers’ company,
NBFC, and LLP.

Examples:
1] Harish Hande
Handerto Harish Hande is an Indian social entrepreneur, who co-founded SELCO(Solar

Electric
Lighting Company) India in 1995. He was awarded with the Ramon Magsaysay Award for
2011 for his pragmatic efforts to put solar power technology in the hands of the poor, through
his social enterprise SELCO India.
He was born in Handattu, Udupi Taluk, Udupi District, Karnataka, and raised in Rourkela,
Orissa, India.After completing his basic schooling in Orissa in Ispat English Medium School,
he went to IIT Kharagpur for his undergraduate studies in energy engineering and graduated
in 1990. He then went to the U.S. to do his master's degree and later PhD in energy engineering
at the University of Massachusetts Lowell.
Hande co-founded SELCO INDIA (in 1995), to eradicate poverty by promoting sustainable
technologies in rural India. SELCO India is a social enterprise that provides sustainable energy
services to the poor in India. Hande left the active management of SELCO INDIA in 2014 and
became the CEO of SELCO Foundation.
Harish Hande is uplifting underserved populations by selling, servicing, and financing clean
energy that improves their quality of life. The ingenuity of Harish’s approach came from
questioning three assumptions, namely, that the poor cannot afford clean and sustainable
energy; they cannot maintain such systems; and, an organization cannot operate a commercial
venture while trying to meet social objectives.
SELCO India has won innumerous awards including Ashden award for sustainable energy and

Accenture economic development award in 2005. Hande was named entrepreneur of the year
2007 by Schwab foundation for social enterprise and was chosen by business today amongst
young 21 leaders of 21st century.
2] Ajaita Shah
Ajaita Shah is an Indian entrepreneur and social activist. She is the founder and CEO of
Frontier Markets and the President of Frontier Innovations Foundation.
Shah grew up in an Indian community in New York City, getting a B.A. degree in International
Relations from Tufts University. She was an American India Foundation Fellow in 2006. She,
then, started working in various areas of government, research, and mediation. She moved to
India after college to work in microfinance.
Initially, the company took clean and affordable energy products to rural households, supported
by a fantastic network of rural women, or “Saral Jeevan Sahelis – or “easy-life friends”. Sahelis
are trained rural women who convince communities to switch to solar energy. Driven by a
consumer-centric model, the digital solution was both an e-commerce app, and marketing tool
for Sahelis to collect customer data, insights, showcase solutions, and close sales to help
coordinate doorstep deliveries. By February 2020, the company has invested in 3500 Saral
Jeevan Sahelis, facilitated 1 million sales of solutions in 4 states of India. The Sahelis have
become leaders in their community, earning $15 million of income to date, and inspiring young
women to adopt technology, and drive change in their village.
Shah has previously worked with SKS Microfinance, and Ujjivan Financial Services in India
and has worked on numerous development projects in 7 states in India. She has also consulted
with the World Bank about microfinance in South Asia and Latin America. She served on the
Committee of the Social Performance Task Force. She was a Clinton Service Corp, Echoing
Green, and Cordes Fellow.

She founded Frontier Markets (FM) in 2011 to create products for rural markets, like solar
lighting and smokeless stoves.
Few of her laurels include SOCAP Scholar, 2012 Echoing Green Fellow, Women
Transforming India Awards 2018 instituted by the United Nations and NITI Aayog .
Even after being far away from the rural mentality and condition in a city like New York, she
never considered the problem of India, not to be hers. She knew that people in the rural
especially women who suffer in the households without electricity needed to be provided with
resources which would aid their quality of life and help them in a lot of ways. it was her love
towards her country, her humility, and generosity and the will to do something for her own
country that turned her into being featured in the Top 30 list for Social Entrepreneurs by Forbes.
3] Muhammad Yunus
Muhammad Yunus (born 28 June 1940) is a Bangladeshi social entrepreneur, banker,

economist, and civil society leader who was awarded the Nobel Peace Prize for founding the
Grameen Bank and pioneering the concepts of microcredit and microfinance. These loans are
given to entrepreneurs too poor to qualify for traditional bank loans. In 2006, Yunus and the
Grameen Bank were jointly awarded the Nobel Peace Prize "for their efforts through
microcredit to create economic and social development from below".
Professor Muhammad Yunus is internationally recognized for his work in poverty alleviation
and the empowerment of poor women. Professor Yunus has successfully melded capitalism
with social responsibility to create the Grameen Bank, a microcredit institution committed to
providing small amounts of working capital to the poor for self-employment
Over the last two decades, Grameen Bank has loaned out over 6.5 billion dollars to the poorest
of the poor, while maintaining a repayment rate consistently above 98%. The innovative
approach to poverty alleviation pioneered by Professor Yunus in a small village in Bangladesh
has inspired a global microcredit movement reaching out to millions of poor women from rural
South Africa to inner city Chicago. His autobiography, “Banker to the Poor: Microlending and
the Battle

Against World Poverty,” has been translated in French, Italian, Spanish, English, Japanese,
Portuguese, Dutch, Gujarati, Chinese, German, Turkish and Arabic.
THE STORY
In 1974, Professor Muhammad Yunus, a Bangladeshi economist from Chittagong University,

led his students on a field trip to a poor village. They interviewed a woman who made bamboo
stools, and knew that she had to borrow the equivalent of 15p to buy raw bamboo for each stool
made. After repaying the middleman, sometimes at rates as high as 10% a week, she was left
with a penny profit margin. Had she been able to borrow at more advantageous rates, she would
have been able to amass an economic cushion and raise herself above subsistence level.
Realizing that there must be something terribly wrong with the economics he was teaching,
Yunus took matters into his own hands, and from his own pocket lent the equivalent of ? 17 to
42 basketweavers. He found that it was possible with this tiny amount not only to help them
survive, but also to create the spark of personal initiative and enterprise necessary to pull
themselves out of poverty.
Against the advice of banks and government, Yunus carried on giving out ‘micro-loans’, and
in 1983 formed the Grameen Bank, meaning ‘village bank’ founded on principles of trust and
solidarity. In Bangladesh today, Grameen has 2,564 branches, with 19,800 staff serving 8.29
million borrowers in 81,367 villages. On any working day Grameen collects an average of $1.5
million in weekly installments. Of the borrowers, 97% are women and over 97% of the loans
are paid back, a recovery rate higher than any other banking system. Grameen methods are
applied in projects in 58 countries, including the US, Canada, France, The Netherlands and
Norway.
Common Challenges Faced:

Because the world of social entrepreneurship is relatively new, there are many challenges
facing those who delve into the field.
Social Entrepreneurs are trying to predict, address, and creatively respond to future problems.
Unlike most business entrepreneurs, who address current market deficiencies, social
entrepreneurs tackle hypothetical, unseen or often less-researched issues, such as
overpopulation, unsustainable energy sources, food shortages. Founding successful social
businesses on merely potential solutions can be nearly impossible as investors are much less
willing to support risky ventures.
The lack of eager investors leads to the second problem in social entrepreneurship: the pay gap.
Elkington and Hartigan note that "the salary gap between commercial and social enterprises
remains the elephant in the room, curtailing the capacity of [social enterprises] to achieve

longterm success and viability." Social entrepreneurs and their employees are often given
diminutive or non-existent salaries, especially at the onset of their ventures. Thus, their
enterprises struggle to maintain qualified, committed employees. Though social entrepreneurs
are tackling the world's most pressing issues, they must also confront scepticism and stinginess
from the very society they seek to serve.
Another reason social entrepreneurs are often unsuccessful is because they typically offer help
to those least able to pay for it. Capitalism is founded upon the exchange of capital (most
obviously, money) for goods and services. However, social entrepreneurs must find new
business models that do not rely on standard exchange of capital in order to make their
organizations sustainable. This self-sustainability is what distinguishes social businesses from
charities, who rely almost entirely on donations and outside funding.
1. Raising funds in times of austerity Across the world, investors and donors are looking for
rapid and larger impact growth. Not something that all social entrepreneurs can promise to
deliver. The overarching reason behind this trend may be a sluggish global economy, but its
ramification on the social sector is huge.
2.Building and following a ground up business plan All enterprises need a strong ground-
up business plan to help achieve milestones. The rigour of building and following a plan that
is based on market realities and customer insight is critical. It ensures adequate focus on both
raising funds and meeting operational targets However, many social entrepreneurs are
visionaries who do not have much experience in running a business. This aspect of planning
and evaluating performance vis-à-vis metrics in a systematic manner may be a new experience
for them.
3. Investing in the right people. Hiring the right people to compliment the skill set of founders
is an essential part of scaling up for every enterprise. The social sector is no different as the
skills required to sell, brand, and manage financials are specialised. A social entrepreneur in
the environment sector once informed me that they were unable to afford the right people. Plus,
expensive resources don’t perform in the short run (as they don’t know the category) and leave
because they don’t meet targets
4.Process Management & Planning for Growth Firms that offer good products and services
quickly grow and reach an inflexion point. In this situation, process management comes into
play and companies who have not planned for growth often end up missing the bus
5. Balancing the vision with business A lot of social entrepreneurs start off as activists. And
over a period of time, create a social enterprise that is in line with their passion. These founders
need to draw a line between volunteering for a cause and running a profitable business. And
it’s difficult.

CASE STUDIES
1.Aravind Eye Hospital &Aurolab, Dr.Govindappa Venkataswamy (Dr. V) & David
Green started trust at Madurai, India with a mission of making medical technology and health
care services accessible, affordable and financially self-sustaining Founded in 1976 by Dr. G.
Venkataswamy, Aravind Eye Care System today is the largest and most productive eye care
facility in the world. From April 2007 to March 2008, about 2.4 million IJESC, August 2019
23622 http://ijesc.org/ persons have received outpatient eye care and over 285,000 have
undergone eye surgeries at the Aravind Eye Hospitals at Madurai, Theni, Tirunelveli,
Coimbatore and Puducherry. Blending traditional hospitality with state-of-the-art ophthalmic
care, Aravind offers comprehensive eye care in the most systematic way attracting patients
from all around the world.
2.Shri Mahila Griha Udyog Lijjat Papad is a Women‘s organization manufacturing various
products from Papad, Khakhra, Appalam, Masala, Vadi, Gehu Atta, Bakery Products, Chapati,
SASA Detergent Powder, SASA Detergent Cake (Tikia), SASA Nilam Detergent Powder,
SASA Liquid Detergent. The organization is wide-spread, with its Central Office at Mumbai
and its 67 Branches and 35 Divisions in different states all over India. The organization started
off with a paltry sum of Rs.80 and has achieved sales of over Rs.300 crores with exports itself
exceeding Rs. 12 crores. Membership has also expanded from an initial number of 7 sisters
from one building to over 40,000 sisters throughout India. The success of the organization
stems from the efforts of its member sisters who have withstood several hardships with
unshakable belief in ‗the strength of a woman‘
3.AMUL (Anand Milk Union Limited) Dr.Verghese Kurien started a Co-operative
organization AMUL. Amul has been a sterling example of a co-operative organization‘s
success in the long term. It is one of the best examples of co-operative achievement in the
developing economy. The Amul Pattern has established itself as a uniquely appropriate model
for rural development. Amul has spurred the White Revolution of India, which has made India
the largest producer of milk and milk products in the world.
Conclusion:
Thus, Social entrepreneurship is all about recognizing the social problems and achieving a
social change by employing entrepreneurial principles, processes and operations. Social
entrepreneurs are those individuals who are associated with non-profit and non-government
organizations that raise funds through community events and activities. The field of social
entrepreneurship is rapidly growing and attracting the attention of numerous volunteers. It has
now become a common term in university campuses. The reason behind the increasing
popularity of this product is that individuals get to do what they have been thinking for long.
The extraordinary people put their brilliant ideas and bring a change in society against all odds.

Start-Ups & Startup EcoSystem

Startups:
Concept
A startup venture can be explained as a new business that is in initial stages of operation,
beginning to grow and is typically financed by an individual or small group of individuals.
It is a drive of young entrepreneurship, scalable business model built on technology and
innovation wherein founders develop a product or service for which they foresee demand
by creating new markets. Startups are nothing but an idea that manifests into a commercial
undertaking.
Key takeaways of a startup company:
• A startup is an entrepreneurial venture in search of enough financial backing to get
off the ground
• The first challenge for a challenge for a startup is to prove the validity of the concept
o potential lenders and investors
• Startups are always risky propositions but potential investors have several
approaches to determining their value.
In the early stages, startup companies have little or no revenue coming in. They have an
idea that they have to develop, test, and market. That takes considerable amount of
investment and the potential to convince the investors. They have certain potential sources
to tap for investment
• Traditional funding sources include small business loans from banks or credit
unions, government-sponsored Small Business Administration loans from local
banks, and grants made by nonprofit organizations and state governments.
• Incubators (a collaborative program designed to help new startups succeed.) often
associated with business schools and other nonprofits, provide mentoring, office
space, and seed funding to startups.
• Venture capitalists and angel investors actively seek out promising startups to
bankroll in return for a stake in the company once it gets off the ground.
Venture capitalists and angel investors actively seek out promising startups to bankroll in
return for a stake in the company once it gets off the ground.
i.The cost to duplicate approach looks at the expenses the company has already incurred to
develop its product or service and purchase physical assets. This valuation method doesn't
consider the company's future potential or intangible assets.

ii.The market approach considers the acquisition costs of similar companies in the recent past.
This approach may be stymied if the startup idea really is unique.
iii.The discounted cash flow approach looks at the company's expected future cash flow. This
approach is highly subjective.
How is start up different from a traditional business venture?

If we are asked to define a start-up and a traditional business, we can definitely give a well-
framed definition of both the terms. But if asked to differentiate between the two, we might
not be able to it instantly point out the differences. The reason is with so many patterns of
business emerging these days, many people often tend to get confused with the concepts
and functionalism.
Traditional Business:
The concept of a traditional business is much wider than that of a start-up. In a traditional
business, the postulations of a company are huge and are ratified with the objective to makes
substantial gains and support. These are basically the small stores, restaurants or agencies
which offers services to the customers in exchange for shekels.
The basic intention of planning the content of an executive summary business is to develop
trust and relation with the investors, customers, business partners and financial institutions.
In this summary, the traditional business encompasses all basic details about the company
such as in what the company deals with, where and when it was founded, what services it
offers and so on and so forth. As every other traditional business also aims at making profits.
But the difference such businesses aim for engendering profits solely for the owners or the
operators only. And so most of the times they land up making more money than what they
have invested. The investment is high in traditional business. It includes the cost of
infrastructures, products, staffs, stocks and other maintenances. A traditional
businessperson is bound to meet these requirements for the smooth running of the enterprise.
One drawback that traditional business suffers is that it has a very low scope of build-out.
Apart from this, it is also time-constrained; such enterprises are to follow a particular time
for operating. But the best thing about this business is that it mints money from the very
first day itself.
Start ups:
We are no new to the concept of start-up. The very word has set up the entire picture of its
existence and functionality. Start-up can be defined as a scion that is nurtured and launched
in the market by an innovative and aspiring mind, with the intention to mark footprints in
the market as an entrepreneur.

The most fascinating fact about a start-up is that it is not subjected to any hard and fast rules
like a traditional business. It enjoys full flexibility in terms of employees, infrastructure,
products and services, etc.
Start-ups do not make money from the very first day of its initiation. The entrepreneur has
to work towards the growth and development of the company in terms of services, users and
clients.
Start-ups usually look for external funds. Since they do not know the exact investment that
they’ll have to underwrite in future, they have to keep someone in confidence to tackle some
financial crunch.
Start-ups are bestowed with technology. Yes, the best thing about a start-up is that it can
incorporate technology to enhance its functionality. This enables the clients and customers
with benefits of technology and innovation.
Startups in India
Start-ups have already flourished into giants in this prosperous environment, though the
boom is only really just beginning. As with anywhere else, the successful companies often
cite similar trends when asked about their success. The main trends are as follows:
1. Being Healthy/Eco-Friendly
Like much of the world, India has been gripped by the urge to go healthy. Education on the
problems of pollution and loss of wildlife strike a chord with everyone. Healthy lifestyles
and organic food have likewise seen increases in popularity. The population is huge and still
growing, with awareness increasing massively.
This isn’t to say people will go wildly out of their way to be eco-friendly. It does suggest
that being eco-friendly and with a healthy theme is the long-term winning strategy here. 2.
Staying Lean
Keeping lean is key to start-ups worldwide though India is a nation where this is applied
more than most. Starting with low costs and from home is common, with many people using
shared accommodation and workspaces to cut expenses. Any income is generally funneled
into the growth of the company, as the increasing levels of competition mean you have to
go hard unless you want to end up going home.
3. Mobile & Social Focus

The mobile market is huge in India and growing at a faster rate than many other nations.
Social media usage is also increasing. That makes it important to target these market
segments specifically and separately from any other area. Making sure your website is

compatible and you have social accounts is only the start. You have to research each area
and target it properly to make the best gains possible.
4. Innovation
Innovation is key to the Indian market. They are no longer so far behind the Western world
on products and services, so coming up with something original or with a unique twist is as
important here as anywhere else. There’s already a stack of great innovations seeing huge
success, such as Let’s Barter and Inspirock.
5. Providing a Service/Subscription
Being either a locally provided service or an easy to access service (online, mobile etc)
means repeat custom. In a country which is projected to be the most populated on Earth by
2024, and with a capital city projected to be the most populous within a few years of that,
it’s obvious why service/subscription models can become massive.
Software as a service, often on a business-to-business basis is also very popular because
there are so many start-ups doing this right now.
Challenges Faced by Startups in India:

1. Indian Founders Lack of Confidence
There are a number of startups doing exceptionally well, however many of their talented
founders lack confidence. While the primary reason why 9 out of 10 startups in India fail in
5 years is that they lack funds, the founders of startups compound their problems because
they don't know how to make the best use of funding. Sadly in India funding still works as
money lending did in the past. Founders are often not confident to engage the services of
professionals who can accurately evaluate their business and provide adequate funding. 2.
Lack of an Innovative Business Model
To be successful a startup must be innovative. Unfortunately, Indian startups are less
innovative than startups elsewhere. Many Indian startups don’t have an original business
idea that is disruptive and by which consumers will be provided with better service; in
reality, most Indian startups are copying what has been successful elsewhere.
3. Inability to Grow
At the helm of every startup is a young person usually in his or her 20s or 30s. A startup is
a young entity and to maximize its chances of growth it must grow fast quickly. Too often
those at the helm of startups are content with single-digit growth in the companies’ early
months, but they shouldn’t be. If a startup has a viable model and a talented team it should
aspire for double-digit growth. Many startups fail to grow at all which is another reason they
fail. A fast-growing startup is likely to attract investors and therefore grow further until it's
successful. 4. India Is a Saturated Market
India is the second most populous country in the world and a major economy; however,
most startups serve the fraction of Indians who live in urban India. The majority of Indians

who live in rural areas and small towns remain untouched by most startups. Too many
startups serving too few consumers are saturating the Indian market. In India, less than 20
online retailers are enough to serve the current market, but there are too many online retailers
chasing too few consumers. Similarly, there are too many startups serving other crowded
industries as well. The increasingly crowded startup ecosystem means there aren’t enough
funds to go around.
Startup India Scheme Initiative by the Government

As per the revised notification (G.S.R. 501 (E)) published on 23rd May 2017, an entity
shall be considered as a Startup:
• If it is incorporated as a private limited company (as defined in the Companies Act,

2013) or registered as a partnership firm (registered under section 59 of the
Partnership Act, 1932) or a limited liability partnership
(under the Limited Liability Partnership Act, 2008) in India; and
• Up to seven years from the date of its incorporation/ registration; however, in the
case of Startups in the biotechnology sector, the period shall be up to ten years from
the date of its incorporation/ registration; and
• If its turnover for any of the financial years since incorporation/ registration has not
exceeded Rupees 25 crores; and If it is working towards innovation, development
or improvement of products or processes or services, or
• If it is a scalable business model with a high potential of employment generation or
wealth creation. Provided that any such entity formed by splitting up or
reconstruction of a business already in existence shall not be considered a ‘Startup’.
Startup India is a flagship initiative of the Government of India, intended to build a strong
ecosystem that is conducive for the growth of startup businesses, to drive sustainable
economic growth and generate large scale employment opportunities. The Government
through this initiative aims to empower startups to grow through innovation and design.
Several programs have been undertaken since the launch of the initiative on 16th of
January, 2016 by Hon’ble Prime Minister, to contribute to his vision of transforming India
into a country of job creators instead of job seekers. These programs have catalyzed the
startup culture, with startups getting recognized through the Startup India initiative and
many entrepreneurs availing the benefits of starting their own business in India.

Objective of Startup India Scheme:

The objective of the Startup India Scheme is to build a strong ecosystem for promoting
innovation and startups in the country. Further, such a drive would encourage sustainable
economic growth and create large scale employment opportunities. To reduce the regulatory
burden on Startups, thereby allowing them to focus on their core business and keep
compliance costs low.
Benefits of Startup India Scheme:
Tax Exemption under 80IAC
Easy winding up of company
Startups shall be allowed to be self-certify compliance for 6 Labour Laws and

Environmental Laws through a simple online procedure.
Startups can also meet with various other startups through this platform.
Helps in getting Fund from investors.
Can easily apply for Government tenders.
Startups will be exempted from income tax for 3 years provided they get a certification from
Inter-Ministerial Board (IMB).
Easier public procurement norms.
Patent Application & IPR Protection- Fast track and up to 80% rebate in filing patents.
Eligibility criteria for registration under Startup India:
1. An entity shall be considered as a Startup:

2. If it is incorporated as a private limited company or registered as a partnership firm
or a limited liability partnership in India.
3. Not older than 10 years from the date of its incorporation/registration.
4. Its turnover for any of the financial years since incorporation/registration has not
exceeded INR 100 crores.
Note: An entity formed by splitting up or reconstruction of a business already in existence
shall not be considered a ‘Startup’.

Registration process:
It is an online procedure, after filling all the details required in the registration form, the
profile goes under moderation for 24- 48 hours. An OTP will be sent to your registered
email address, post submitting which your profile will get created.
And after that, Startups can apply for DPIIT (Department for Promotion of Industry and
Internal Trade) recognition.
Aatmanirbhar Sena is all set to play a prominent role in boosting the Startup Ecosystem.
As the startup ecosystem in India expands, Aatmanirbhar Sena is witnessing startups rising
thick and fast across the nation. It is bringing the less known startups to the fore and helping
the new entrepreneurs develop their startups by directing as well as aiding them in the
process. They are all set to maintain the early-stage startups in getting funding at the initial
level from VCs and angel networks.
Our honorable prime minister, Narendra Modi, furnished the example of the startup
ecosystem in India as the beacon of desire and innovation. Also, he added that India's startup
sector is a perfect example of how tenderness, desire, and innovation can eliminate the
sufferings of one and all.
Aatmanirbhar Sena have realized the disruptive potential that new startups hold, and thus,
it is wholeheartedly making the wise result-oriented investment in them. Aatmanirbhar Sena
is planning to empower entrepreneurs to make resources accessible and sort out the
prevailing issues in their local areas. Also, they are heading towards bringing the reduction
in the regulatory burden on startups so that they can keep their primary focus on their core
business.
Startup Ecosystem
A start-up is a “young company founded by one or more entrepreneurs to develop a unique
product or service and bring it to market”. Startups cover a wide range of industries and
sectors but are marked by the birth of a new idea or solution that can create impactful change
in the world. Thus, in common parlance “A startup is any new business that applies an
innovative solution. The innovation can be either technological or a unique business
model.”
A startup ecosystem is made by people, startups in their various stages and various sorts of
organizations during a location (physical or virtual), interacting as a system to make and
scale new startup companies. These organizations can be further divided into categories
such as universities, funding organizations, support organizations (like incubators,
accelerators, co-working spaces etc.), research organizations, service provider organizations
(like legal, financial services etc.) and large corporations. Local Governments and

Government organizations like Commerce / Industry / Trade departments also play a crucial
role in startup ecosystem.
Startup ecosystems are controlled by both external and internal factors. External factors,
such as financial climate, big market disruptions and significant transitions, control the
overall structure of an ecosystem and the way things work within it.
Startup ecosystems in similar environments but located in different parts of the world can
end up doing things differently simply because they have a different entrepreneurial culture
and resource pool. The introduction of non-native peoples' knowledge and skills can also
cause substantial shifts in the ecosystem's functions.
Internal factors act as feedback loops inside any startup ecosystem. They not only control
ecosystem processes but are also controlled by them. While some of the resource inputs are
generally controlled by external processes like financial climate and market disruptions, the
availability of resources within the ecosystem are controlled by every organization's ability
to contribute towards the ecosystem.
There are several independent studies made to evaluate start-up ecosystems to better
understand and compare various start-up ecosystems and to offer valuable insights of the
strengths and weaknesses of different start-up ecosystems. Startup ecosystems can be
studied through a variety of approaches - theoretical studies, studies monitoring specific
start-up ecosystems over long periods of time and those that look at differences between
start-up ecosystems to elucidate how they work.
Components of Startup Ecosystem:

There is no recipe for exactly what should go into the pot when building a startup ecosystem.
However, there are a few key ingredients that each local ecosystem needs to thrive.
1. Startups
Startups themselves, of course, are an indispensable part of any startup ecosystem. They are
the nuclei of innovation, disruption, and progress. They determine the face of the local
ecosystem and play an important role in economic growth, too.
Startups create more jobs than large corporations, boosting local economic development.
Once a startup is acquired or goes public, it makes money for its shareholders, which can
then be pumped back into the ecosystem. This furthers its maturation, which ultimately
leads to economic growth.
A high concentration of startups can also make an impact on the cities where they set up
shop. In Barcelona, for example, startups moving into 22@, the innovation district of
Poblano have completely transformed the neighbourhood, bringing life more life to it than
the abandoned industrial area had ever seen. Restaurants, coffee shops and gyms have

experienced unprecedented growth, and new businesses are being set up every day, looking
to take advantage of the opportunities presented by the up-and-coming neighbourhood.
Here are some other components of a startup ecosystem:
2. Colleges, Universities and other education programs.

It would be hard to argue with the stance that schools provide one of the most important
resources for startup ecosystems around the world: talent. Colleges, universities and other
education institutions – such as coding schools – play a fundamental role in nurturing talent
and setting the next generation of entrepreneurs and startup employees on their paths.
Silicon Valley itself benefits enormously from the talent from the local Ivy League schools.
Higher education institutions that offer entrepreneurship studies, courses on management

and innovation, digital marketing programs, etc., are paving the way for bright minds to turn
their ideas into reality by starting their own businesses or joining existing ones. In 2015, for
example, university research resulted in the creation of 1,012 startups in the US, according
to Engine.
In the age of accelerated technological development, environmental threats and tumultuous
global politics, it is more important than ever before for institutions to be forward-thinking
and equip their students for the challenges of the modern world. Startups will take on many
of those challenges – and they will be launched by students studying at these institutions
today.
As it happens, universities are not always able to keep up with the demands of the fast-
changing job market, especially in sectors like technology where completely new roles are
created every year. Fortunately, we have coding bootcamps and other intensive courses to
make up for the gap and train professionals in sought-after skills like AI, Machine Learning
and Data Science. These programs often have agreements with startups and large tech
companies and organise hiring days to provide jobs for their students, directly fueling the
local startup ecosystem with talent.
3. Funding providers
If talent is the most important resource for startups, money is a close second. Few startups
survive for long without an investor or a financial institution to back them – which is why
they are an essential pillar of every startup ecosystem. Angel investors, venture capital
firms, crowdfunding websites, loans and grants (private and government) and other funding
providers all have their place within an ecosystem.
4. Incubators and Accelerators

Incubators and accelerators are programs that help startups succeed by providing them with
mentorship, guidance, training, strategy, partnerships, R&D and funding. They are

instrumental in getting startups, especially early-stage ones, off the ground. Having access
to an accelerator’s resources and network can make or break a startup that has not cemented
itself within the ecosystem. Incubators and accelerators often offer a physical space where
startups can establish their offices. The programs (often) end with a Demo Day where
entrepreneurs can show off their pitching skills to investors and start playing on the big
field.
The Leading Startup Incubators in India are as follows:
Nasscom’s 10,000 Startups Warehouse
Kerala Startup Mission
Society for Innovation and Entrepreneurship (SINE) IIT Bombay
DLabs, Indian School of Business (ISB)

T-Hub (Technology Hub)
CIIE IIMA - Centre for Innovation Incubation and Entrepreneurship was setup by IIM
Ahmedabad with support from the Government of India and Gujarat Government
AngelPrime - Location: BengaluruAngelPrime is focused on startups in the middle that need
seed capital, it invests in not more than 3-4 companies a year.
IAN Incubator - Established from the support of National Science and Technology
Entrepreneurship Development Board (NSTEDB), Department of Science & Technology
(DST), Govt. of India.
5. Coworking spaces
Startups – especially in the bootstrapping stage – often do not have the funds to afford their
own office space. Enter coworking spaces: shared offices where startups can rent hot desks
or private offices for a fraction of the price, and with no long-term commitment.
Saving on rent is not the only reason why startups choose to join coworking spaces. Most
coworking companies offer a long list of perks, like unlimited free coffee, discounts on gym
memberships and lunch deliveries.
Most importantly, coworking spaces have their own communities and often organise events
where entrepreneurs can expand their network and explore potential collaborations with
other companies. Startups based in a coworking space often have just the freelancer they
need in arms’ reach – and if not, there is someone who knows someone who knows
someone.

Coworking is becoming more popular by the minute: there are an estimated 35,000 flexible
workspaces in the world, with the global market value estimated at $26 billion.
6. Agencies, consultants and freelancers

Agencies, consultants and freelancers often do not get the credit they deserve, even though
they are crucial to the functioning of startups – and ecosystems.Lean startup teams tend to
ask for outside help with challenges that they cannot solve in-house because they do not
have the know-how, the skills, the tools or the time. That is when consultants come in. They
are experts in their own fields – having previously worked with other startups. They bring
invaluable knowledge and experience to the table, helping early-stage startup teams get
ahead. By partnering with freelancers and agencies, startups can cut costs and get high-
quality work on short deadlines. They can also hire talent for short-term projects and work
with outstanding professionals who are not bound by geography.
7. Service providers
There is no business without legal and financial providers to back it. All startups, no matter
how small or early-stage, need at least a bookkeeper and a banking provider. Founders need
to focus on business fundamentals: getting bogged down in bureaucracy is not an option.
8. Advisory organisations and mentors

It is a fact: startups with mentors are more likely to succeed.
Advisory organisations and mentors can help founders during their entrepreneurial journeys
in many ways. For one, experienced, successful mentors help you stay accountable and true
to your vision. Their own experience in business is often critical to your success. They can
help you prepare from the future and offer unbiased opinions on critical situations. The best
mentors are people that have done it before. Many are serial entrepreneurs giving back to
the ecosystem by sharing their knowledge and experience with others.
9. Events
You can find the heart and soul of every startup ecosystem in its community of people. And
people must be brought together to form a community. Conferences, workshops, meetups,
networking events and parties are all key to building and maintaining a startup ecosystem.
Without events no ecosystem can survive for long.
10. Media and blogs

How do you know when a startup is starting to take off? Journalists pick up the scent and
its name start turning up in the press. PR can be an excellent way for startups to raise
awareness about their brand and their latest projects. Appearing in publications with high

authority and a wide reach can get startups on the radar of potential customers, business
partners and investors.
Print publications, online magazines, blogs and their respective social media accounts play
a role in spreading industry news. This helps elevate local ecosystems to an international
level.
11. Corporations
We imagine corporates and startups as being on two ends of a spectrum: suits and ties versus
trainers and jeans. However, the role of corporations in supporting startups and innovation
is striking. Large corporations have started to see the appeal of startups and the opportunities
they can create. Companies like Nike, Microsoft, American Express, Reliance, Mahindra
and PepsiCo have created accelerators, investment funds, and other programs.
Knowledge exchange between startups and corporates is part of a powerful symbiosis,

which strengthens the ecosystem instead of fragmenting it.
12. Supportive Government agencies

In every country of the world, government agencies regulate business. Commerce, industry
and trade departments all have a say in how startups can operate. In some jurisdictions,
government policies are favourable for startups: new businesses can take advantage of tax
incentives, grants and awards and seek the help of government organisations that support
entrepreneurs, like startup India in INDIA. In others, startup and innovation-friendly
policies have yet to be implemented – or they work against innovation.
13. Research Organisations

Research organisations contribute to startup ecosystem in many ways. For startups in
industries like biotech and robotics, they can be their most important partners. But research
organisations can also affect the startup ecosystem itself by providing the insight needed to
spot trends, address challenges and focus on strengths. 14. Talent
Startup ecosystems are incredible talent magnets. As startup hubs mature, they bring the
best and the brightest business minds, developers, designers, investors and so on. Cities
benefit enormously from this influx: highly skilled workers soon change projects, cross-
pollinate organisations, and startup up their own companies. It becomes a virtuous circle –
innovation and the economy booms.
Startup Eco System in India

The Indian government has launched the streaming initiative of startup India in 2016 with
a purposeful goal to escalate the startup culture in India and form an environment in which
people having entrepreneurial capabilities would leave their comfort zone and gear up to
become entrepreneurs of the country. Matching pace with the visionary thoughts of our
Prime Minister Narendra Modi concerning entrepreneurship, Aatmanirbhar Sena is working
on the projects that will eventually help in the advancement of the startup ecosystem in
India.
As per a survey report by Innoven Capital (survey of 140 founders); leading factors that
make India appealing as a startup nation are:
1. Cost of doing business

2. Proximity to customers/vendors
3. Size of domestic market.
Facts about Startup Ecosystem in India

India has emerged as the second largest Startup Ecosystem all over the world. The rate at
which the Startup ecosystem culture in India is attaining growth is between 12 And 15%.
As of 1 Feb 2020, the department of the promotion of Industry & Internal Trade (Commonly
Known As DPIIT), which belongs to The Ministry of Industry and Commerce, has
identified that the number of Startups has reached around 27,916 Startups.
As per the sources, the Startups in India rose around $11 bn across 736 deals in 2019, while
in 2018; Indian Startups had risen over $9.57 billion across 717 deals.
Everyday 2-3 Tech Startups join the league of Startups in India. 7 million college graduates
per year; 55% of the youth prefer working in startups over corporates (as per a youth of the
nation survey of 150K young Indians). Median age of founders is 31 years.
Latest Trends in Aviation Industry in Indian Economy Post Covid

1. Opportunities
The civil aviation industry in India has emerged as one of the fastest growing industries in the
country during the last three years and can be broadly classified into scheduled air transport
service which includes domestic and international airlines, non-scheduled air transport
service which consists of charter operators and air taxi operators, air cargo service, which
includes air transportation of cargo and mail. The Indian aviation industry has recovered fully
from the covid-19 pandemic shock as indicated by the air traffic movement which stood at
613,566 in the first quarter of FY 2022-23 compared to 300,405 in the same period last year,
an increase of 104.24%.

India is currently the 7th largest civil aviation market in the world and is expected to become
the third-largest civil aviation market within the next 10 years. Indigo is the largest airline
company in India with the highest market share. India has become the third largest domestic
aviation market in the world and is expected to overtake UK to become the third largest air
passenger* market by 2024.
The government has allowed 100% FDI under the automatic route in scheduled air transport
service, regional air transport service and domestic scheduled passenger airline. However,
FDI over 49% would require government approval.
2. Development of Airport Infrastructure: The GoI aims to develop 100 airports by
2024 (under the UDAN scheme) and expects to invest 1.83 billion in the development
of airport infrastructure by 2026.
3. Public Private Partnership: Six of the PPP airports have been leased out to Adani
Enterprises Limited (“AEL”) for 50 years under this scheme. The acquisition of
Mumbai International Airport by AEL from the GVK Group can also be seen as a
prime example of the growth in India’s airport infrastructure.
4. The National Air Sports Policy, 2022 (“NASP”) has been formulated by the GoI
with one key objective being the promotion of air sports culture in India. The NASP
aims to include air sports such as drones, parachuting, paragliding, etc.
5. Latest Foreign Direct Investment Regulations
The GoI has revised the position as regards foreign direct investment (“FDI”) in civil aviation
as follows:
Airports
For both greenfield projects and existing projects – 100% FDI has been permitted under the
automatic route.
Air transport services
For Scheduled Air Transport Services/Domestic Scheduled Passenger Airlines – 100% FDI
has been permitted. However, the automatic route is permitted only up to 49%, with an
exception made for a Non-Resident Indian, who is permitted up to 100% under the automatic
route.
Other services within the civil aviation sector
For ground-handling services (which are subject to sectoral regulations and security
clearance), MROs, flying training institutes and technical training institutions- 100% FDI is
permitted under the automatic route.
6. Introduction of IFSC – Gift City
India’s first International Financial Services Centre (“IFSC”), situated in Gandhinagar,
Gujarat, is steadily aiming to become a market for aircraft leasing and financing. The Gujarat
International Finance Tec-City (“GIFT City”) is a GoI initiative to provide a platform to set

up Indian companies whose businesses, inter alia, include banking, insurance, aircraft
financing and leasing activities in the IFSC. The objective is to attract aviation companies
from countries such as Ireland, Singapore, USA, etc, which are considered aircraft leasing
hubs, to set up bases in India.
7. Recent Developments in Aviation in India Economy Post Covid

As of May 2022, the DGCA has reissued the air operating certificate of Jet Airways, which is
preparing for its relaunch as Jet 2.0 following the its Corporate Insolvency Resolution
Process which was initiated in 2019.
Air India, India’s national carrier, which was a government-owned commercial airline, could
not keep pace with the competition, in October 2021, the Tata Group emerged victorious in
its bid in the divestment process of Air India. The Tata Group currently holds 26.6% market
share in the Indian aviation market. This major acquisition is expected to provide a boost to
the aviation sector, due to its strong hold in both the domestic and international markets.
The recent launch of Akasa Air through the aviation venture SNV Aviation also seems to be
promising for the Indian aviation sector since it is expected to follow the “low-cost carrier”
model. This will enable it to charge lower fares for air travel, thus making it more affordable
for the general public.
8. Trends
Given the recent trends and developments in the Indian aviation sector, the future prospects
for the airline industry in India appear promising due to the industry-friendly policies and
regulations formulated by the GoI that are catalysing its growth.
Latest Trends In Healthcare Industry in Indian Economy post Covid
Healthcare has become one of India’s largest sectors, both in terms of revenue and
employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing,
telemedicine, medical tourism, health insurance and medical equipment. The Indian
healthcare sector is growing at a brisk pace due to its strengthening coverage, services, and
increasing expenditure by public as well private players.
India's competitive advantage lies in its large pool of well-trained medical professionals.
Telemedicine: Telemedicine is the use of electronic information to communicate
technologies to provide and support healthcare when distance separates the participants. It
enables video or phone appointments between a patient and their health care practitioner,
benefits both health and convenience. COVID-19 has undoubtedly accelerated the delivery of
telemedicine. Covid norms like social distancing and stay-at-home orders made many
healthcare providers adopt telemedicine and virtual patient monitoring.
1. Strategic alliances in healthcare: In September 2021, Biocon Biologics Limited, a
subsidiary of Biocon, announced a strategic alliance with Serum Institute Life

Sciences, a subsidiary of Serum Institute of India (SII). The alliance is expected to

strengthen India's position as a global vaccine and biologics manufacturing
powerhouse. The healthcare and pharmaceutical sector in India had M&A activity
worth US$ 4.32 billion in the first half of 2022. Also, In August 2022, Edelweiss
General Insurance partnered with the Ministry of Health, Government of India, to
help Indians generate their Ayushman Bharat Health Account (ABHA) number.
2. Recent developments for Covid vaccine: In March 2022, Hyderabad-based
pharmaceutical company Biological E applied for emergency use authorisation (EUA)
for its Covid-19 vaccine Corbevax for the 5-12 year age group. In January 2022,
Phase 3 trials commenced of India's first intranasal vaccine against COVID-19 that is
being developed by Bharat Biotech, in conjunction with the Washington University
School of Medicine in St Louis, the US. In September 2021, Russian-made COVID-
19 vaccine, Sputnik Light received permission for Phase 3 trials in India. In
December 2021, Eka Care became the first CoWIN-approved organization in India,
through which users could book their vaccination slot, download their certificate and
even create their Health IDs.
3. Startups & ‘Digital India’ Initiative in Healthcare sector: As of November 18,
2021, 638 e-Hospitals are established across India as part of the central government's
‘Digital India’ initiative. Startup HealthifyMe, with a total user base of 30 million
people, is adding half a million new users every month and crossed US$ 40 million
ARR in January 2022
4. Digital prescriptions and health records: E-Rx is a digital version of a prescription
created by healthcare practitioners (HCPs) using digital software. Also, it helps create
digital health records of patients which improves the chances of better patient
outcomes by reducing the human error to interpreting wrong medicines.
5. Health Cloud: Healthcare systems across the country will accelerate the journey of
digitization. They would work with never ending data records that too in a secure
manner. Unique patient records can be made and maintained within Rise.
6. Digital health to rescue: Digital health is gradually occupying a significant position
in our daily lives, making it a worthy tool in medical device trends for 2022.
Wearables and smart devices can keep track of patients’ every movement such as the
sleep pattern, heart rate, calorie intake, or period of exercise. This can help caregivers
to get a clear picture of the patient's status and modify them accordingly. They have
enabled a systematic advancement of personalized healthcare and will continue to be
a major tool in the medical device trends of 2022.
7. Internet of Medical Things: The adoption of the Internet of Medical Things (IoMT)
is also transforming public health significantly. It has created a foundation for tech-
enabled healthcare, increasing service efficiencies. This technology can alter the
healthcare industry by bringing services to individuals who do not have access to full-
time facilities.
8. Rise in medical tourism in India: India is also cost competitive compared to its
peers in Asia and western countries. The cost of surgery in India is about one-tenth of
that in the US or Western Europe. The low cost of medical services has resulted in a

rise in the country’s medical tourism, attracting patients from across the world.
Moreover, India has emerged as a hub for R&D activities for international players due
to its relatively low cost of clinical research.
Recent trends in Fin-tech sector in Indian economy post covid
Indian Prime Minister Narendra called for a “Fintech revolution” in India primarily to be
driven by income, investments, insurance, and institutional credit. The statement comes at
a time when India has the highest Fintech adoption rate in the world – at 87 percent – and
significantly higher than the global average rate of 64 percent. Enabling factors here
include the Digital India initiative, a conducive policy environment, and the presence of a
sizeable talent pool.
1. Digital and Mobile based payments/transactions: The Covid-19 pandemic in 2020

has dramatically accelerated the adoption of digital payments in India, pushing
companies to improve automated service. Owing to the pandemic, online banking
advanced. UPI became one of the most preferred payment modes for online and
offline purchases and transactions amid social distancing during the lockdowns.
Mobile-based payments has shown a significant growth of 43%.
2. Supported by Huge funding: The fintech industry is the second-highest funded
industry in India after e-commerce. And it will take the top rank in the coming years.
India's Fintech adoption rate is at 87%, which is significantly higher than the global
average rate of 64%.
3. Increase in Fintech startups and companies: -
4. Digital banking: Based on the study by Global Market Insight in 2019, the fintech
evolution of digital banking has considerably reduced physical visits to bank branches
by around 36%. People now have the luxury of MasterCard with free transaction fees,
zero paperwork without physically going to a bank branch to make local or global
transactions.
5. Scaling of Neo banking: A neo bank exists solely online without any physical
branches functioning independently or in partnership with traditional banks.
Neobanks provide multiple advantages for traditional banks for MSMEs (Micro,
Small & Medium Enterprises) such as -
Personalized customer experience, Automated services, transparency via real time
notifications, Easy-to-use APIs, Rich insights to boost revenue.
Some of the examples of Neobank in India include: Digibank, Jupiter, Mahila Money,
Onecard, Mool, FI Money, etc.
6. Use of Artificial Intelligence: - A.I. is used to predict consumer behavior and enable
effective buying of targeted and personalized products. This will offer multiple
opportunities to marketers of financial services. Digitization and decentralization
enabled by A.I. It powers the fintech revolution. The pandemic has further hastened
the pace of A.I. adoption in fintech. Razorpay (using A.I. to address fraud issues),

INDmoney, Mswipe, Lending Cart, and CogNext are some of the leading Indian
fintech companies using A.I.
7. Use of Blockchain: It is a public distributed ledger with encryption and traceability.
Unlike a typical database, a blockchain is a type of database that stores data in blocks
linked together via cryptography and can be managed in a decentralized manner. The
most common use of blockchain is to store cryptocurrency transaction history. It can
also be used for storing other things like legal contracts.
By integrating blockchain into banks, consumers can see their transactions processed
in very little time. No other sector can benefit from blockchain as the banking sector
and is especially useful in supply chain management.
8. Payment Innovations: There are multiple components of payment innovations in
fintech such as - mobile payments, contactless payments, e-wallets, identity
verification technology, A.I., and machine learning for security. digital wallets and
mobile payments will drive fintech payment innovations.
Mobile payments also cover in-store transactions apart from online purchasing.
According to Payvision (2020), in-store transactions are projected to rise to more than
$2.7 billion by 2022. This will automatically push global e-commerce transaction
value to $5.4 trillion by 2025.
Recent trends in Tourism & hospitality sector in Indian Economy post covid
India being one the most popular travel destinations across the globe has resulted in
the Indian tourism and hospitality industry to emerge as one of the key drivers of
growth among the services sector in India.
Tourism industry in India has significant potential considering the Tourism is an
important source of foreign exchange in India similar to many other countries.
The consistent efforts of the central and the state governments has helped the tourism
industry to recover from the covid-19 pandemic shock and operate at the pre
pandemic level.
1. Bleisure travel is a growing tourism trend where people extend their business
travel to leisure activities. Experts predict it will continue to grow in the mobile
workforce. Although business travel has started to make its comeback in 2021,
bleisure is believed to be its future.
2. Bookings through mobiles and internet: India is the most digitally advanced
traveller nation in terms of digital tools being used for planning, booking, and
experiencing a journey. India’s rising middle class and increasing disposable
income has supported the growth of domestic and outbound tourism.
3. Major trends in tourism are of bookings through mobile and internet bookings
showing a wide range of tariffs and options for accommodation. E.g. Yatra.com;
Booking.com etc. In this industry there are many competitors and, modern
technology and hotel marketing trends etc.
4. Travelling less (staycations): Travel restrictions in 2020 and 2021 have facilitated
the rise of the staycation. Even with international travel opening back up, between

airline price hikes, Covid testing requirements and the complicated bureaucracy
involved in going abroad now, many deem foreign travel either too expensive for
a big family vacation or not worth the hassle for the weekend breaks of the past.
Hence, opting in favor of the staycation trend instead, or simply travelling much
less than pre-pandemic levels.
5. Virtual & augmented reality: Augmented reality uses graphical or informational
overlays to enhance in-situ environments. Once they have downloaded the
respective app, guests can use this tool to access restaurant opening times, reviews
or interactive tourist information maps or even create user-generated content.
Videos providing 360-degree views of restaurant ambiance, café terraces
enveloped in greenery or hotel beachfront locations are common.
6. Sustainabilty: Simple eco-friendly switches include replacing miniature toiletries
with larger, locally sourced dispensers, choosing ethically produced bedsheets
made from organic materials and reducing energy consumption with smart bulbs,
etc. Vegetarian and vegan options also harbor well-known environmental
advantages. A natural extension of avoiding disposable plastics, eliminating
unnecessary paper consumption thanks to opt-in receipts and reducing food waste,
more far-reaching ethical and environmental considerations are shaping decisions
made at the hospitality management level.
7. Digitalized guest experiences: Needless to say, the trend towards digital and
contactless services has gained new momentum since 2020. Traditionally,
customer-facing services are being given an overhaul thanks to the more
widespread use of technology-assisted options, such as mobile check-in,
contactless payments, voice control and biometrics.
8. Increased medical tourism: The medical tourism sector is predicted to increase at a
CAGR of 21.1% from 2020-2027
9. Constant govt. initiatives: Govt of India is providing free loans to MSMEs to help
them deal with the crisis and revive the economy. Govt plans to tap into regional
tourism by opening doors for South Asian country tourists.
Recent Trends in Education Industry in Indian Economy post covid

India has the largest population in the world in the age bracket of 5-24 years with 580 million
people, presenting a huge opportunity in the education sector.
1. Virtual learning: With the onset of COVID-19 and work from home settings, the
professionals have shown curiosity for learning new things. Growing awareness
about technology is steadily and gradually making online education, including
online training courses and exams, a commonplace. The learning that can be
augmented using the virtual world is gradually being stressed by programs and
organisations.
2. Concept-Based learning anytime and anywhere: The transition to digital encourages
concept-based learning that helps students to develop key skills and be prepared for

careers in the future. The trend in learning shifts and transfers from machines to cell
phones. The even more cell phone penetration in the world, more so in India and the
fast rise in digitalisation in urban and rural areas fuel the pattern of learning
everywhere. STEM edtech players such as Tinkerly are providing the STEM kits for
kids to imbibe learning by doing.
3. Student Assessment using Artificial Intelligence (AI): For students using online test
systems powered by AI, they experience personalised evaluations. AI-based programs
offer valuable insights into the performance of students and the group for each
topic/subject. During the traditional manual evaluation of the tests, there are chances
of biases creeping in. Since online resources and methods are used to assess the
student, it will remove biases of manual evaluation.
4. Shift towards non-conventional courses: India has long been described as an economy
in which graduates concentrate on becoming doctors, lawyers, accountants, and
engineer. Today, students are looking to explore further skills and vocational courses
in areas such as Video Editing, Design thinking, Fashion, Communications, and other
niche fields such as e-commerce, Hospitality, Food & Catering, Data Science,
Machine Learning, Artificial Intelligence, even specialisation in Edu-Tech programs.
One such initiative to inculcate the new skills is dream career’s idx.education
initiative.
5. Gamification and Self Analysis: Gamification has changed the attitude of learning. It
helps students in their learning processes to learn to use computer game design and
game elements. It enhances attendance by catching students’ attention and increasing
engagement. It allows students to test their results with intuition and decreases the risk
of partiality by different data analysis algorithms.
6. Online courses by higher education institutions: mostly all the higher education
institutions, including the top notch in the country which include in IIMs , IITs have
started with various online courses and virtual classes. demand for e-learning has
increased post covid in the country. The online education market in India is expected
to grow by US$ 2.28 billion during 2021-2025, growing at a CAGR of almost 20%.
The market grew by 19.02% in India in 2021.
7. Startups in education sector: Indian edtech startups have received total investment of
US$ 3.94 billion across 155 deals in FY22. In June 2022, edtech platform
PhysicsWallah became India’s 101st unicorn by raising US$ 100 million in a Series-A
funding round from WestBridge Capital and GSV Ventures, valuing the company at
US$ 1.1 billion.
8. Constant Government initiatives: The National Education Policy (NEP) 2020
emphasis on early childhood care and education. The 10+2 structure of school
curricula is to be replaced by a 5+3+3+4 curricular structure corresponding to ages 3-
8, 8-11, 11-14, and 14-18 year, respectively. In February 2022, the Central
Government approved the “New India Literacy Programme” for the period FY22-27
to cover all the aspects of adult education to align with the National Education Policy
2020 and Budget Announcements 2022-23.

Recent trends in Entertainment Industry in Indian Economy in post covid
The Indian Media and Entertainment (M&E) industry is a sunrise sector for the
economy and is making significant strides. The increasing availability of fast and
cheap internet, rising incomes, and increasing purchases of consumer durables have
significantly aided the industry. India’s media and entertainment industry are unique
as compared to other markets. The industry is well known for its extremely high
volumes and rising Average Revenue Per User (ARPU).
1. Barriers free content & OTT platforms: Despite the fact that overseas shows and
films have been quietly gaining traction in India, they have mostly stayed as urban
entertainment phenomenon. In February 2021, the digital entertainment committee
of the Internet and Mobile Association of India (IAMAI) finalised a code of
conduct to form the basis for self-regulation code for OTT content. The code has
been endorsed by 17 OTT platforms including Netflix, Amazon Prime Video,
Disney+ Hotstar, ZEE5 and Voot.
2. Cloud Gaming: an advanced approach: newer products are being introduced in the
market to give gamers unique experiences. As per Statista, there are
approximately 3.4 billion gamers at the global level. However, not everyone has
the hardware to support high-end graphic games. Cloud gaming will resolve this
issue as this technology allows gamers to play remotely through data centers. The
only prerequisites are a nominal PC and an internet connection to establish an
interaction.
3. Podcasting for a worldwide reach: This new-age tool helps to spread the
information through the power of audio content in the form of interviews and that
too with minimum requisites. Modern customers want to access ad-free
entertainment content. They also prefer audio based format due to screen fatigue.
The reason why podcasts are becoming popular in media is the flexibility of
access and ease of download on the user devices they offer while bearing a
minimal cost.
4. Digital revolution paving the way for the growth of the Indian M&E market: The
media and entertainment industry is moving closer into the rooms of their
audience. Gone are the days when platforms used to control the content of the
creators. Technology has given a fair chance to the influencers so that they can
function independently, get recognized, and interact meticulously with their
followers.
5. Improvement of Creator economy: Influencer culture is hitting the media and
entertainment industry on a wide scale. Platforms are becoming more niche-based
and community-driven. In general, influencers connect on a closer level with their
subscribers or followers with the help of community-friendly content.
Until now, content creators were heavily relying on sponsorship, views, and
premium subscriptions. However, now audiences are now ready to bypass these
platforms and want to connect directly with the creators. It is an amazing sign that

creators are more comfortable with sharing their personal lives and viewers are
also keen to know what their influencers are up to.
6. Rise in music apps and internet music lovers: The music industry is expected to
reach US$ 366 million by 2024 from US$ 199 million in 2019. According to a
study, Gaana, the streaming service owned by Times Internet Ltd., had 30%
market share, followed by JioSaavn (24%), Wynk Music (15%), Spotify (15%),
Google Play Music (10%), and others (6%) in 2020.
7. More opportunities in domestic and international markets: The rapid growth of
OTT channels, increased emphasis on animated intellectual property (IP) content
and larger investments in VFX by studios has provided animation and VFX
studios with opportunities in both domestic and international markets.
8. Government initiatives and support: The Government of India has increased the
FDI limit from 74% to 100%. Within the M&E sector, Animation, Visual Effects,
Gaming and Comic (AVGC) sector is growing at a rate of ~29%, while the audio-
visual sector and services is rising at the rate ~25%; is recognized as of one of the
champion sectors by the Government of India. In November 2021, the
government announced that it is working towards creating a National Centre of
Excellence for AVGC (animation, visual effects, gaming and comics).
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Entrepreneurship in Sunrise Sectors: Fin-Tech, Healthcare, Tourism and Hospitality, Aviation,
Education, Entertainment Sector


FYBCOM Module - 4 Business and Entrepreneurship

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Business & Entrepreneurship: Module IV (4.2 & 4.

Module IV: Project Planning and Entrepreneurship

Identification of idea/ generation business ideas/concept for enterprise

The following are various methods of generating product ideas: -

LECTURE NOTES COMPILED BY STUDENTS’ QUALITY CIRCLE GROUP

LECTURE NOTES COMPILED BY STUDENTS’ QUALITY CIRCLE GROUP

Developing Simple Business Plan

LECTURE NOTES COMPILED BY STUDENTS’ QUALITY CIRCLE GROUP

LECTURE NOTES COMPILED BY STUDENTS’ QUALITY CIRCLE GROUP

• Concept and Importance of Project Planning,

Steps in Project Planning:

1. Discovery of Business Opportunities:

LECTURE NOTES COMPILED BY STUDENTS’ QUALITY CIRCLE GROUP

3. Technical requirements study:

4. Initial feasibility study:

LECTURE NOTES COMPILED BY STUDENTS’ QUALITY CIRCLE GROUP

5. Final Preparatory steps in Project planning:

Framing of policies for achieving goals and objectives

Preparing Detailed Programmes

Determining Capital Requirement

Preparing designs of structures and processes

IMPORTANCE OF PROJECT PLANNING:

LECTURE NOTES COMPILED BY STUDENTS’ QUALITY CIRCLE GROUP

4. Indicates time frame:

6. Ensures Higher Morale:

7. Facilitates Feasibility Study:

LECTURE NOTES COMPILED BY STUDENTS’ QUALITY CIRCLE GROUP

10. Procurement of resources:

LECTURE NOTES COMPILED BY STUDENTS’ QUALITY CIRCLE GROUP

IV. Promoters and Management:

LECTURE NOTES COMPILED BY STUDENTS’ QUALITY CIRCLE GROUP

LECTURE NOTES COMPILED BY STUDENTS’ QUALITY CIRCLE GROUP

XI. Raw Materials

LECTURE NOTES COMPILED BY STUDENTS’ QUALITY CIRCLE GROUP

• Assessment of working capital requirement. • Projected Balance Sheet •

SAMPLE PROJECT REPORT

Promoters and management

Product and market potential

Plant and Machinery

Term loans and working capital

Notes and Statements

III. Project at a glance:

LECTURE NOTES COMPILED BY STUDENTS’ QUALITY CIRCLE GROUP

LECTURE NOTES COMPILED BY STUDENTS’ QUALITY CIRCLE GROUP

IV. Promoter and Management:

VI. Product and market potential:

VII. MANUFACTURING PROCESS.

LECTURE NOTES COMPILED BY STUDENTS’ QUALITY CIRCLE GROUP

IX. FACTORY BUILDING ITEMS:

Sr no Description Qty. Rate Amount (Rs)

LECTURE NOTES COMPILED BY STUDENTS’ QUALITY CIRCLE GROUP

XI. Raw materials:

XII. Plant and machinery

Sr no Description Qty. Rate Amount (Rs)

1 Stitching machine 14 7,000 98,000

2 Motor for Stitching machine 14 3,000 42,000

3 Overlock Machine 2 15,000 30,000

4 Scissors 15 600 9,000

XIII. Working capital (Staff and labour)

2 Cutting master 4 9,000 36,000

XIV. Cost of the project

LECTURE NOTES COMPILED BY STUDENTS’ QUALITY CIRCLE GROUP

Sr. no Description Amount Rs