Venture Development

Stages in Venture Development

1. Discovery and Selection of business idea/opportunity
2. Business Plan
 Product/Service offering
 Location of Business Venture
 Size of Business
 Ownership of Business
 Functional Plans
3. Financial Resource Mobilisation
4. Resource Acquisition (Non-financial)
 Land & Building
 Utilities/Facilities
 Manpower/Human Resources
5. Registration
6. Government Clearances & Licenses
7. Commencement of Business
ENTREPRENEURSHIP
DEVELOPMENT INSTITUTE OF
INDIA (EDII)
It is a national institute set up by
Public Financial Institutions and
Government of Gujarat. It promotes
research , training and institution
building activities by encouraging
active participation of backward
areas and special target groups in
entrepreneurship.
Its Entrepreneurship development programme consists of

1. Selecting potential entrepreneurs.

2. Achievement motivation training .
3. Product selection and project report
preparation.
4. Business management training.
5. Practical training and work experience.
6. Post training support and follow up.

The programme run by EDII is said to be the oldest, largest,

most comprehensive, best organised and the most successful
entrepreneurship development programme in the country.
 NATIONAL INSTITUTE FOR ENTREPRENEURSHIP AND
SMALL BUSINESS DEVELOPMENT (NIESBUD)

• Highest body, established in 1983 by the Ministry of industry,

Government of India.
• Entrusted the task of coordinating the activities of different
agencies engaged in the task of entrepreneurship development.
• Confines it’s training activities to such areas where no
organisation is coming forward for organising programmes and
which is totally new.
• Aims at creating conducive environment for emergence of
entrepreneurship.
Functions

 Evolving effective training strategies and methodology.

 Formulating scientific selection procedure.
 Developing training aids, manuals and other tools.
 Facilitating and supporting agencies engaged in entrepreneurship
development .
 Conducting such programmes which are not undertaken by other agencies.
 Maximising their benefits and accelerating the process of entrepreneurship
development.
 Organising all those activities that help develop entrepreneurial culture in
society.
 Small Industries Development
Organisation (SIDO)
 Small Industries Development Organization (SIDO) is a subordinate office
of the Department of SSI & Auxiliary and Rural Industry (ARI).
 It is an apex body and nodal agency for formulating, coordinating and
monitoring the policies and programmes for promotion and development
of small-scale industries.
The main functions of the SIDO are classified into:
 (i) Co-ordination,
 (ii) Industrial development, and
 (iii) Extension.
Functions

 Technical Consultancy
 Industrial management training
 Economic information
 Marketing assistance
 Export promotion marketing
 Entrepreneurial development programme
 Modernization
MSME Development Institute/ Small
Industries Services Institute (SISI)

 MSME (Micro, Small and Medium Enterprises) Development

Institute formerly known as Small Industries Services Institute, is an
institute established by the Government of India to promote, educate
and support prospective entrepreneurs to set up and run small scale
industries
Functions

 Promoting entrepreneurship
 Managerial, technical and financial assistance to prospective as well
as existing entrepreneurs
 Conducting courses and training programmes on areas of
management
 Promotes Ancillary units
 Promotion of exports
 Coordination with financial institutions, training institutions and
other Government bodies
District Industries Centre (DIC)
 The government of India has established DIC in every district of the country.
 The main objective for establishing DIC is to promote industrial development
and entrepreneurship at the district level.
Functions:
 Promoting entrepreneurship in respective districts
 Encouraging industrial development in rural areas and small towns
 Providing managerial, technical and financial assistance
 Conducts entrepreneurial development programmes
 Acts as a mediator between financial institutions and the entrepreneur
VENTURE FUNDING
REQUIREMENTS OF CAPITAL (FIXED AND
WORKING)
Fixed Capital

 Fixed capital is the funds required for the acquisition of those assets
that are to be used for a long period – such assets as land, buildings,
machinery, equipment and tools.
Shubin
 Fixed capital is invested in the fixed or long run assets. The amount of
fixed capital need, therefore, varies directly with the amount of fixed
assets owned or used by a business.
Wheeler
Need/Importance of Fixed Capital

 Entrepreneurial set-up
 Purchase of fixed assets
 Modernization

 Expansion/diversification

 Product/process development
Sources of Fixed Capital

 Equity Funding
 Ordinary Shares
 Preference Shares
 Retained Earnings (Reserves & Surplus)
 Venture Capital
 Debt Funding
 Term Loan
 Debentures

 Lease Financing
Working Capital

 Working capital refers to a firm’s investment in short term assets,

such as cash amounts receivables, inventories etc.
Weston & Brigham
 The sum of the current assets is the working capital of a business.
J.S.Mill
Need/Importance of Working Capital

 Uninterrupted Business Activity

 Competitive advantage

 Positive credit profile

 High liquidity

 Favourable relation/goodwill

 Increased business valuation

Sources of Working Capital

 Short term loans

 Bank overdraft

 Cash credit

 Trade credit

 Bill discounting

 Advances

 Asset based financing

New Trends In
Entrepreneurship
E-Commerce Business Models

 Business to Business (B2B)

 Business to Consumer (B2C)

 Consumer to Consumer (C2C)

 Consumer to Business (C2B)

Entrepreneurial Opportunities in E-
Commerce Framework

 Website (E-Commerce)

 Market Place (E-Commerce)

 Mobile application (E-Commerce)