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ENTREPRENEURSHIP DEVELOPMENT
Unit 1,2,3,4,5
Syllabus
Unit-1
Unit 1 Engineering in One Video (EIOV) Watch video on EIOV
Entrepreneurship
and characteristics
Entrepreneurship
Entrepreneurship is the process of developing, organizing, and running a new business to
generate profit while taking on financial risk.
Entrepreneurship means self employment, which comes with the ability to set your own
schedule and work where you want.
Entrepreneurship is the process of designing and running a new business venture for
earning profits.
A person who develops new business and undertakes all risks and challenges associated
with it is termed as Entrepreneur.
Entrepreneurship results in creativity, innovation, employment opportunities and leads to
the overall economic development of the country.
Characteristics
Ability to Take Risk
Visionary
Open Minded
Goal Oriented
Flexible
Confident and Well Informed

Entrepreneur vs
Entrepreneurship
Entrepreneur vs Entrepreneurship
Entrepreneur vs Intrapreneur
Entrepreneur vs Intrapreneur
Small Scale Industries

and its types
Small Scale Industries

Small-scale industries play a significant role in entrepreneurship development.
They contribute to economic growth, job creation, innovation, and regional development.
A small-scale industry refers to a business enterprise that operates on a small scale,

typically with limited capital investment, fewer employees, and localized operations.
SSIs are often characterized by their relatively smaller production capacities and are distinct
from large-scale industries in terms of their scale of operations.
In many countries, including India, small-scale industries are defined based on factors such
as the investment in plant and machinery, the number of employees, and the annual
turnover.
SSI types
Manufacturing
Retail and E-commerce
Services
Agriculture and Farming
Health Care
Environmental Sustainability
Growth and Position of

small scale industries
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Growth and Position of SSI

Job Creation and Poverty Alleviation
Local and Regional Development
Utilization of Local Resources
Technology and Skill Development
Entrepreneurship and Innovation
Social and Environmental Impact

Small and Large Scale

industry
Small and Large Scale industry

Government policy for

small scale industry
Government policy for small scale industry

The industry policy resolution 1948
The industry policy resolution 1948
Industrial policy resolution 1956
The industrial policy statement, 1977
The industrial policy statement, 1980

Stages in starting a
Small scale industry
Stages in starting a SSI

To study the business environment
Implementation and feasibility of the idea
Decision making stage
Planning stage
Plan implementation stage
Controlling stage
Unit-2
Project Identification
Project Identification
Market Research
Idea Generation
Feasibility Analysis
SWOT Analysis
Financial Analysis
Risk Assessment
Project Definition
Project Viability Study
Continuous Evaluation and Adaptation
Project life-cycle
Project life-cycle
Project formulation
Project formulation
Project formulation is the process of developing a detailed plan for an entrepreneurial
project. It involves defining the project objectives, strategies, activities, timelines, resource
requirements, and implementation framework.
Project Objectives.
Market Analysis
Resource Requirements
Financial Projections
Risk Assessment and Mitigation
Implementation Timeline
Sustainability and Scalability
Sources of
Collecting data
EIOV
Sources of Collecting data

There are several sources from which you can collect data for your project or research. The
choice of sources depends on the nature of your project and the specific information you
require.
Here are some common sources of data:

Primary Data: Primary data refers to original data collected firsthand for a specific purpose.
It can be collected through surveys, interviews, observations, experiments, or focus groups.
Primary data is tailored to your specific research needs and provides fresh and direct
insights.
Secondary Data: Secondary data refers to data that has already been collected by someone
else for a different purpose. It includes sources such as books, research papers, government
reports, statistical databases, industry reports, and market research studies. Secondary data
is readily available and can provide valuable background information and context for your
project.
Preparing
project report
Preparing project report

Cover Page
Executive Summary
Introduction
Methodology
Literature Review
Findings and Analysis
Conclusions
References
Cost-benefit analysis
Cost-benefit analysis
Cost-benefit analysis (CBA) is a systematic approach used to evaluate the economic efficiency
of a project, policy, or investment by comparing the costs incurred with the benefits generated.
It involves quantifying and monetizing both the positive and negative impacts of a decision to
determine its overall net benefit.
The stages involved in conducting a cost-benefit analysis are as follows:

Identify and Define the Project
Identify and Quantify Costs
Identify and Quantify Benefits
Time Value of Money
Calculate Net Present Value
Decision-Making
Unit-3
Balance sheet and

explain assets and liabilities
Steps in preparation of balance sheet

A projected balance sheet is also referred to as a pro forma balance sheet. It shows the
estimation of the total assets and total liabilities of any business.
Steps are:
Step 1: Calculate cash in hand and cash at the bank
Step 2: Calculate Fixed Assets
Step 3: Calculate Value of Financial Instruments
Step 4: Calculate your Business Earning
Step 5: Calculate Business’s Liabilities
Step 6: Calculate Business’s Capital
Steps in preparation of balance sheet

Assets and Liabilities

Assets
Assets refer to resources owned or controlled by an individual, organization, or entity that have
economic value and can be used to generate future benefits.
Fixed assets
Current assets
Tangible assets
Intangible assets
Liquid assets.
Liabilities
Liabilities are financial obligations or debts owed by an individual, organization, or entity to
external parties. Liabilities represent the claims that creditors have on the assets of the entity.
Fixed Liabilities
Current Liabilities
Long-Term Liabilities
Contingent Liabilities
Decision making
Decision making
Decision-making is a critical aspect of entrepreneurship development. Entrepreneurs often face
numerous decisions that can significantly impact the success and growth of their ventures.
Effective decision-making involves assessing alternatives, weighing the potential risks and
rewards, and choosing the course of action that aligns with the entrepreneur's goals and
objectives.
Key considerations for decision-making

Define the Problem
Gather Information
Set Clear Goals and Objectives
Generate and Evaluate Alternatives
Consider Risk and Uncertainty
Seek Expert Advice and Feedback
Make Decisions and Take Action
Learn from Outcomes
Production planning
and control
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Production planning and control

Production planning and control is the process of effectively organizing and managing the
resources, activities, and schedules involved in the production of goods or services.
It involves the coordination of various factors, such as materials, equipment, labor, and
information, to ensure efficient and timely production while meeting customer demands.
The main objective of production planning and control is to optimize production processes,
minimize costs, and deliver high-quality products or services.
Key aspects and activities

Demand Forecasting
Master Production Scheduling
Materials Planning
Capacity Planning
Routing and Scheduling
Quality Control
Monitoring and Control
Continuous Improvement
Quality control
Quality control
Quality control (QC) is a set of processes and activities that are implemented to ensure that
products or services meet specified quality requirements.
It involves monitoring and evaluating various aspects of production to identify and correct
any deviations or defects that may impact the final output.
The main objective of quality control is to deliver products or services that consistently meet
customer expectations and comply with quality standards.
Key aspects and activities

Quality Planning
Quality Assurance
Inspection and Testing
Documentation and Record-keeping
Continuous Improvement
Customer Feedback and Satisfaction
Wages and Incentive

Wages
Wages:
Wages refer to the financial compensation employees receive for their work or services.
They are typically calculated based on factors like job roles, skills, experience, and
market conditions.
Wages can be time-based (hourly, daily, or weekly) or piece-rate (based on work
completed).
They can also be in the form of a fixed salary for professional or managerial positions.
Incentives:
Incentives are additional rewards or bonuses given to employees based on their
performance or achievement of specific goals.
They aim to motivate employees, increase engagement, and align efforts with
organizational objectives.
Incentives can be performance-based (individual or team) or non-monetary (recognition,
awards, flexible work arrangements).
They encourage employees to exceed expectations and contribute to organizational
success.
Inventory control
Inventory control
Inventory control refers to the processes and strategies used by businesses to manage and
regulate their inventory levels effectively.
It involves maintaining the right amount of inventory to meet customer demand while
minimizing costs associated with storage, carrying, and stockouts.
Advantages:
Cost Optimization
Efficient Resource Allocation
Improved Cash Flow
Minimized Stockouts and Lost Sales
Enhanced Production Planning
Objectives
Meet Customer Demand
Minimize Stockouts
Optimize Working Capital
Streamline Supply Chain Operations
Improve Operational Efficiency
Preparation of
financial reports
Financial reports
Financial reports are formal documents that provide a summary of an organization's
financial performance and position.
They present key financial information and data in a structured format to help stakeholders,
such as investors, lenders, shareholders, and regulators, assess the financial health and
performance of the business.
Types of financial reports include:

Income Statement
Balance Sheet
Cash Flow Statement
Statement of Changes in Equity
Preparation of financial reports

Gather Financial Data
Organize and Review Data
Adjustments and Reconciliations
Prepare Income Statement
Prepare Balance Sheet
Prepare Cash Flow Statement
Provide Notes and Disclosures
Review and Analyze the Financial Reports
Finalize and Present the Reports

Unit-4
Project planning
Project planning
Project planning refers to the process of defining the project's objectives, scope,
deliverables, timelines, resources, and strategies required to successfully execute a project.
Key steps are:

Defining Project Objectives
Scope Definition
Task Sequencing
Estimating Resources and Durations
Developing the Project Schedule
Risk Assessment
Resource Allocation and Budgeting
Communication and Stakeholder Engagement
Monitoring and Control
Cost capital
EIOV
Cost capital
Cost of capital refers to the cost incurred by a company to finance its operations and
investments.
It represents the required rate of return that investors and creditors expect in exchange for
providing capital to the company.
The cost of capital is a critical concept in finance and is used to evaluate investment
opportunities, determine the value of a company, and make financial decisions.
Key points are:

Components of Cost of Capital
Weighted Average Cost of Capital
Importance of Cost of Capital
Factors Influencing Cost of Capital
Cost of Capital and Financing Decisions
In summary, the cost of capital represents the expense incurred by a company to finance its
operations and investments. It is a critical factor in evaluating investment opportunities,
determining the value of a company, and making financing decisions.
Risk analysis
Risk analysis
Risk analysis refers to the process of assessing and evaluating risks to understand their
nature, likelihood, and potential impact.
It involves identifying potential risks, analyzing their characteristics, estimating their
probability of occurrence, and evaluating their potential consequences.
Analyze risks steps are:

Risk Identification
Risk Assessment
Risk Prioritization
Risk Monitoring and Review
Sources of risk are:

External Factors
Market Factors
Operational Factors
Financial Factors
Capital expenditures
CE policies and practices in public enterprises

Capital expenditures policies and practices in public enterprises refer to the guidelines and
procedures followed by government-owned or public-sector organizations when making
investments in long-term assets, such as infrastructure, equipment, facilities, and
technology.
These policies and practices aim to ensure efficient allocation of resources, effective project
selection, and optimal utilization of capital funds.
Key aspects:
Strategic Alignment
Budgeting and Planning
Project Evaluation and Selection
Approval Process
Funding Mechanisms
Project Management and Monitoring
Reporting and Accountability
Post-project Evaluation
Cash Flow
Cash flow statement

The cash flow statement is an important financial statement that provides information
about the cash inflows and outflows of a business over a specific period of time.
It helps in assessing the liquidity, financial health, and cash management of an organization.
Cash flow statement is needed

Cash Management
Investment and Expansion
Debt Servicing
Cost Control
Working Capital Management
Improvement methods for cash flows:
Revenue Diversification
Cost Reduction Initiatives
Cash Flow Monitoring
Working Capital Optimization
Cash Flow Forecasting
Financing Options
Unit-5
Laws concerning
entrepreneur
Laws concerning entrepreneur

Laws concerning entrepreneurs can vary depending on the country and jurisdiction.
However, there are several common legal aspects that entrepreneurs need to consider.
Some key laws and regulations :

Business Registration and Licensing
Intellectual Property Protection
Employment and Labor Laws
Taxation Laws
Data Protection and Privacy Laws
Competition Laws
Partnership laws
Partnership laws
Partnership laws govern the legal relationship between two or more individuals or entities
who come together to carry on a business for profit.
Key aspects of partnership laws:

Formation
Legal Status
Management and Decision-Making
Sharing of Profits and Losses
Rights and Duties of Partners
Partnership laws
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Business ownership
Business ownership refers to the legal and financial control of a business entity. There are
several types of business ownership structures, each with its own characteristics and
implications.
Some common types:

Sole Proprietorship
Partnership
Corporation
Franchise
Nonprofit Organization
Income tax
Sales tax
Value added tax
Income tax
Income tax is a tax imposed by the government on the income earned by individuals,
businesses, and other entities.
It is typically based on the taxable income, which is the total income minus allowable
deductions and exemptions.
Income tax rates can vary depending on the jurisdiction and the income bracket.
Individuals usually report their income and file income tax returns annually, while
businesses may have different filing requirements based on their legal structure.
Sales tax
Sales tax is a consumption tax imposed by the government on the sale of goods and
services.
It is generally calculated as a percentage of the sale price and is collected by the seller at the
point of sale.
Sales tax rates can vary by jurisdiction and can be applied at the state, county, or local level.
The responsibility of collecting and remitting sales tax typically lies with the seller, who is
required to register with the appropriate tax authority.
Sales tax revenue is used to fund government programs and services.

Value added tax

Value-added tax, also known as goods and services tax (GST) in some countries, is a
consumption tax applied at each stage of the supply chain, from the manufacturer to the
consumer.
Unlike sales tax, which is imposed only on the final sale to the consumer, VAT is levied on
the value added at each stage of production or distribution.
Businesses act as intermediaries and collect VAT on behalf of the government, offsetting
the tax they paid on their inputs.
VAT rates vary by jurisdiction, and some items may be exempt or subject to reduced rates.
VAT is considered a more comprehensive and efficient tax system compared to sales tax.
Workman
compensation act
Workman orkman compensation act

The Workmen's Compensation Act in some jurisdictions, is a legislation that provides
financial protection and benefits to workers who suffer from work-related injuries, illnesses,
or disabilities.
Key features are:

Compensation Coverage
No-Fault System
Medical Benefits
Wage Replacement
Death Benefits
Copyright and Patent

Copyright
Purpose:
Copyright protects original works of authorship, such as literary, artistic, musical, or
dramatic works.
Coverage:
Copyright protection applies automatically upon the creation of the work and generally
lasts for the life of the author plus a certain number of years.
Protection:
Copyright protects the expression of ideas in a fixed form, granting exclusive rights to
reproduce, distribute, display, perform, and create derivative works.
Examples:
Copyright can cover books, music, paintings, sculptures, films, software code, and other
creative works.
Patent
Purpose:
Patents protect inventions, including new and useful processes, machines, compositions
of matter, or improvements thereof.
Coverage:
Patents are granted by a government patent office after a formal application process
and generally provide protection for a limited period, typically 20 years.
Protection:
Patents protect the underlying idea or concept of an invention, granting exclusive rights
to make, use, and sell the invention.
Examples:
Patents can cover technological inventions, such as new devices, manufacturing
processes, pharmaceutical formulations, and innovative technologies.
Role of various
national and state agencies
Role of various national and state agencies

National and state agencies play a crucial role in providing assistance and support to small-
scale industries. These agencies aim to promote the growth, development, and competitiveness
of small businesses.
Key roles and functions:

Ministry/Department of Micro, Small, and Medium Enterprises (MSME):
Formulates policies, programs, and schemes for the development of small-scale
industries.
Conducts research and collects data related to small-scale industries.
State Small Industries Development Corporations (SSIDCs):

Act as nodal agencies at the state level to promote and support small-scale industries.
Offer financial assistance, including loans and subsidies, to small-scale entrepreneurs.
Role of various national and state agencies

Small Industries Development Bank of India (SIDBI):
Offers financial assistance, including loans, venture capital, and equity support, to small-
scale industries.
Promotes entrepreneurship and skill development through training and capacity-
building programs.
National Small Industries Corporation (NSIC):.

Provides marketing support, including participation in trade fairs, exhibitions, and
buyer-seller meets.
Assists in the implementation of government policies and programs for small
businesses.
Entrepreneurship Development Institutes (EDIs):

Provide mentoring, business development services, and access to networks for early-
stage entrepreneurs.
Assist in technology transfer, commercialization, and intellectual property protection.
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Engineering in One Video (EIOV) Watch video on EIOV

Confident and Well Informed

Small Scale Industries

Small Scale Industries

A small-scale industry refers to a business enterprise that operates on a small scale,

Retail and E-commerce

Agriculture and Farming

Growth and Position of

Growth and Position of SSI

Local and Regional Development

Utilization of Local Resources

Technology and Skill Development

Entrepreneurship and Innovation

Social and Environmental Impact

Small and Large Scale

Small and Large Scale industry

Government policy for

Government policy for small scale industry

The industry policy resolution 1948

Industrial policy resolution 1956

The industrial policy statement, 1977

The industrial policy statement, 1980

Stages in starting a SSI

Implementation and feasibility of the idea

Decision making stage

Plan implementation stage

Sources of Collecting data

Here are some common sources of data:

Preparing project report

Findings and Analysis

The stages involved in conducting a cost-benefit analysis are as follows:

Balance sheet and

Steps in preparation of balance sheet

Steps in preparation of balance sheet

Assets and Liabilities

Key considerations for decision-making

Production planning and control

Key aspects and activities

Key aspects and activities

Wages and Incentive

Types of financial reports include:

Preparation of financial reports

Organize and Review Data

Adjustments and Reconciliations

Prepare Income Statement

Prepare Balance Sheet

Prepare Cash Flow Statement

Provide Notes and Disclosures

Review and Analyze the Financial Reports

Finalize and Present the Reports

Key steps are:

Key points are:

Analyze risks steps are:

Sources of risk are:

CE policies and practices in public enterprises

Cash flow statement

Cash flow statement is needed

Laws concerning entrepreneur

Some key laws and regulations :

Key aspects of partnership laws:

Some common types:

Sales tax revenue is used to fund government programs and services.

Value added tax

Workman orkman compensation act