UNIT 1

1. Diff btw entrepreneur , intrapreneur and management

2. Define an entrepreneur? Explain the sources of new ideas

The word entrepreneur is derived from the French word ‘enterprendre’ it means “to undertake”.
Entrepreneur is an individual who takes risk and starts something new.

Entrepreneur as a person who only provides capital with out taking active part is the leading role is
the enterprise".
3. Describe the techniques of creative problem solving

4. Define entrepreneurship ? Describe the role of entrepreneurship in economic development

The capacity and willingness to develop, organize and manage a business venture along with
any of its risks in order to make a profit. The most obvious example of entrepreneurship is the
starting of new businesses.

Role of E in economic develpoment

 Capital formation.
 Generation of employment.
 Improvement in per capita income.
 Reduces concentration of wealth.
 Balanced regional development.
 Resource mobilization.
 Improvement in standard of living.
 National self-reliance.
 Harnessing natural resources.
 Backward and forward linkages.
 Sense of purpose.

5. Explain the types of entrepreneurs with examples

Types of Entrepreneur

1. ON THE BASIS OF THE TYPE OF BUSINESS

2. ON THE BASIS OF STAGES OF DEVELOPMENT

 3. ON THE BASIS OF MOTIVATION

4. ON THE BASIS OF TECHNOLOGY

5. ON THE BASIS OF CAPITAL OWNERSHIP

6. OTHER CLASSIFICATIONS

 ACCORDING TO GENDER AND AGE

 ACCORDING TO AREA

 ACCORDING TO SCALE

 OTHERS

ON THE BASIS OF THE TYPE OF BUSINESS

• i)Business entrepreneurs:-who start business units after developing ideas for new
products/services.

• ii)Trading entrepreneurs :-who undertake buying & selling of goods, but not engage in
manufacturing.

• iii)corporate entrepreneurs:-who establish and manage corporate form of organization

which have separate legal existence.

• iv)Agricultural entrepreneurs:- who undertake activities like raising and marketing of

crops, fertilizers and other allied activities.

ON THE BASIS OF STAGES OF DEVELOPMENT

• i)First generation entrepreneurs:-who do not possess any entrepreneurial background. They

start industry by their own innovative skills.

• ii)Second generation entrepreneurs:-who inherit the family business and pass to next
generation.

• iii)Classical entrepreneurs:-who aims to maximize his economic returns at a level consistent

with the survival of the unit with or without an element of growth.

ON THE BASIS OF MOTIVATION

• i)Pure entrepreneurs:-who are basically motivated to become entrepreneurs for their

personal satisfaction, ego etc..

• ii)Induced entrepreneurs:- who are induced to take up entrepreneurial role by the assistance
and policy of government including incentives, subsidies etc.

ON THE BASIS OF TECHNOLOGY

• i)Technical entrepreneurs:- who are task oriented and ‘craftsman type’. They prefer doing to
thinking.
 • ii)Non-technical entrepreneurs:- who are not concerned with technical side, but rather with
marketing and promotion.

• iii)Professional entrepreneurs:- who start a business unit, but later sell the running business
and start a new unit later.

ON THE BASIS OF CAPITAL OWNERSHIP

• i)Private entrepreneurs:- individual or group set up enterprise, arrange finance, share risk
etc..

• ii)State entrepreneurs:- means the trading or industrial venture undertaken by the state or the
government itself.

• iii)Joint entrepreneurs:- the combination of private and government entrepreneurs.

OTHER CLASSIFICATIONS

• ACCORDING TO GENDER AND AGE

• i)Man entrepreneurs

• ii)Women entrepreneurs

• iii)Young entrepreneurs

• iv)Old entrepreneurs

• v)Middle-aged entrepreneurs

• ACCORDING TO AREA

• i)Urban entrepreneurs

• ii)Rural entrepreneurs

• ACCORDING TO SCALE

• i)Large scale entrepreneurs

• ii)Medium scale entrepreneurs

iii)Small scale entrepreneurs

• iv)Tiny scale entrepreneurs

OTHERS

• i) Spiritual Entrepreneur

• ii) Social entrepreneurs

• iii) Edupreneurs
 7. Expain the stages in entrepreneurship process?

In the rest of the article it can be found two models that reflect what the entrepreneurial
process is. In this section I will mention the stages of the model of the University of Pretoria,
trying to simplify main points that an entrepreneur should consider.

1. Idea generation
The entrepreneur begins to wonder why there is not available a product or service, why not
improve certain things, how to generate income to cover their expenses, etc. Thousands of
questions might rise, so them will help to identify opportunities to meet the market needs. In
previous years, there where not enough amount of goods and services. It was a little bit easier
to position a business, however now it requires a search for information and market analysis
to see the possibility of success. It is possible that at this point in the entrepreneurial process,
there are many people, since the generation of ideas can be much easier. However, the step
towards a decision making is where many can stop and perhaps even abandon the idea from
the starting a business.

2. Decision making and business planning

A critical point in the entrepreneurial process is deciding to start the project. Be active and
stay motivated are the main factors for the entrepreneur to start landing his idea. Asking what
resources are needed and where he will get them, is vital to generate at least one way forward
for the entrepreneur. The development of the business plan will mark only a guide that can be
used as reference.

3. Project creation
The project is conducted when the entrepreneur decides to seek and obtain resources. Getting
financiation is difficult, and perhaps one of the main obstacles to start a business. When the
entrepreneur begins to invest the resources and and begin operating, it is a point release of
stress, as the entrepreneur will see the first steps of his company.

4. Management and control

After having pass through the first months of operation, the company will see if it decreases,
maintains or increases in sales. The entrepreneur should strive to maintain revenue growth
before worrying about having a nice office. Managing a business is not easy, but the
experience that entrepreneurs acquire over time will surely ease the handling of all resources.
Perhaps one could say that the entrepreneurial process ends here, but I think it is no longer an
entrepreneur, and he becomes a full businessman or businesswoman.
8. Explain innovation process in detail

• Idea Generation:To create an idea through spontaneous creativity and

information processing.

• Initial Experimentation: To establish the idea’s potential value and application.

• Feasibility determination: To identify anticipated costs & benefits.

• Final application: To produce and market a new product or services, or to implement a

new approach to operations
UNIT 2

1. What is business plan? Explain the steps in business plan process

 Business plan is a written document prepared by the entrepreneur that describes all the relevant
external and internal elements involved in starting a new venture.
 Business plan is an integration of functional plans such as marketing , finance, manufacturing
and human resource.
 It’s a document that convincingly demonstrates that your business can sell enough of its
product or service to make a satisfactory profit and be attractive to potential customers.
 It is the game plan or road map- answers the questions, where am I now? Where am I going?
How will I get there?

Overview / process of Business plan

1. Concept development
2. Concept testing
3. Strategy formulation
4. Business plan writing
5. Strategy review and implementation

1. Concept development
• The concept development stage begins with a business idea.
• A business idea is a way to generate profits by satisfying a currently unsatisfied customer
needs.
• Once you have a specific business idea, then continue to develop the concept by conducting
marketing research to determine who your customers are going to be and what criteria they use
to make buying decisions.
2. Concept testing

• In this process, further research is to be carried out to determine whether or not it is viable.
• This research includes industry research, research on competitors, suppliers, distributors,
government regulations , special interest groups , economic conditions, political conditions.
• The research should focus on forecast of business costs and revenues with accuracy.

• If the concept is not viable then again need to go back the drawing board and modify your
business concept to make it more profitable.
 3. Strategy formulation

An effective business strategy begins with an analysis of the internal and external
factors affecting your company. This is known as SWOT analysis.

Strengths Weakness
1. Low costs 1. Lack of skilled staff
2. Innovative products 2. Limited product line
3. Loyal clientele 3. Inexperienced management

Opportunities Threats
1. Untapped market segments 1. Aggressive competitors
2. Poorly managed competitors 2. Economic recession
3. Increased demand of your 3. Changes in regulations
product

• Once internal and external analysis completed , then the effective business strategy must
developed
A business strategy is a long term plan to use your company’s strength to take advantage of
market opportunities and to neutralize competitive threats.

4. Business plan writing

• Once SWOT analysis is done, the next step is writing business plan.
• The business plan formats depends upon the nature and size of the company and the
trained person who writes the plan.
The plan should involve the following
1. Executive Summary
2. Table of contents
3. Description of the business
4. Description of product & services
5. Market Analysis
6. Marketing plan
7. Operational plan
 8. Financial plan
9. Risk analysis
10. Supporting materials

Description of the Business

• Business type
• Mission & goals
• History
• Management
• Company structure

Product and service description

• IPR
 Trade marks
 Industrial designs,
 Copy rights or patents.

Market Analysis
• Industry analysis
• Competitive analysis
• Market research
• Target market

Marketing plan
• Positioning
• Marketing mix (4 p’s)

Operational plan
• Production management
• Inventory management
• HRM

Financial plan
• Historical financial statements
• Break even analysis
• Accounts payable and receivables

Risk analysis
• Competitive reaction
• External risks
• Internals risks

Supporting materials
• Samples of products
• Resumes of owners
• Corporate brochures
• News articles about your company

5. Strategy review and implementation

• Strategy review
 Is it still the best possible strategy given your research and analysis?
 Try a new strategy and do new financial forecasts based on that strategy
• Implementation
 2. Describe Osterwalder business model canvas?

3. Prepare a model project report for starting a new venture

Project Report Format For New Business

The process of establishing a new business is preceded by the resolution to select
entrepreneurship as an occupation. This calls for recognizing lucrative business ideas upon a
meticulous evaluation of the entrepreneurial prospects. Creation of business ideas is not
sufficient, they must be tested on techno-fiscal, economic and authorized viewpoints.
A project report for new business conducts a profound road map for effectual business
venture. It discusses whether the business requires finance or not, the challenging risks,
several problems en route, etc. Hence it becomes vital for every new business to prepare a
project report, to acquaint them on forewarning issues.
Project report for New Business - Format
Below is the sequence of standard format which should be followed while preparing new
business project report:
1. Background of the business
2. Customer's profile
3. Long and short term Corporate Objectives
 To perform a viability assessment of the proposed new business ideas in terms
of marketability, technical feasibility, financing and authorities
  To be able to prepare a relevant business plan
 To recognize fundamentalstartup issues
4. Market Analysis

 Brief discussion on the type of market, chief influencers, players, etc

 Market description
 Reasons for starting business in a particular market
 Target clients
 Advantages of the services offered by the new business
 Market consumption patterns
 Past and existing supply location
 Production prospects and limitations
 Exports and Imports
 Price structure
 Flexibility of demand
 Client behavior, purposes, intentions, impetus, approaches, inclinations and
 needs
 Supply network and marketing rules formulated by the government
 Government and technical limitations imposed on the promotion of the
 product

5. Financial Assessment
 Investment expenditure and value of the entire project
 Methods of investment
 Anticipated productivity
 Money flows of the project report
 Investment value evaluated in context of different points of merit
 Estimated financial ranking
 Marketing Assessment
 Product
 Price
 Place
 Promotion

7. Operational Plan
 Business models
 Production of goods and services
8. Financial Plan
9. Management Structure
10. Business structure (Ownership, staff, etc)
11. SWOT Analysis
 Significant Success aspects depending on Strengths, Weaknesses,
Opportunities and Threats to be faced by the firm in future
12. Appendices
 Break-Even Assessment
  Profit and Loss Synopsis
 Fund Flow Summary

4. What do you mean by feasibility study?

5. What are the characteristics , objectives and registration of small scale industries?

Characteristics of SSI
 Ownership
SSI's generally are under single ownership. So it can either be a sole proprietorship or
sometimes a Partnership.
 Management
Generally, both the management and the control is with the owner/owners. Hence the
owner is actively involved in the day-to-day activities of the business.
 Labor Intensive
SSI's dependence on technology is pretty limited. Hence they tend to use labour and
manpower for their production activities.
 Flexibility
SSI's are more adaptable to their changing business environment. So in case of
amendments or unexpected developments, they are flexible enough to adapt and carry on,
unlike large industries.

 Limited Reach

Small scale industries have a restricted zone of operations. Hence, they can meet their
local and regional Demand.

 Resource utilisation

They use local and readily available resources which helps the economy fully utilise
natural resources with minimum wastage.

Objective of SSI
The objectives of the small scale industries are:
 To create more employment opportunities.
 To help develop the rural and less developed regions of the economy.
 To reduce regional imbalances.
 To ensure optimum utilisation of unexploited resources of the country.
 To improve the standard of living of people.
 To ensure equal distribution of income and wealth.
 To solve the unemployment problem.
 To attain self-reliance.
 To adopt the latest technology aimed at producing better quality products at
lower costs.

Registration of SSI
SSI registration is a registration provided by the Ministry of MSME. A business
should obtain SSI registration in order to be eligible for a number of schemes, subsidies
and other incentives provided by the Government to such SSI’s. SSI registration can be
obtained online too.
 UNIT 4
1. Introduce various Incentives and subsidies

Intro to Various Incentives

This term is directly associated with encouraging productivity. It simply means a thing which
encourages to undertake something. For entrepreneurs, incentives act as a medium of motivation
that helps them in taking appropriate decision and act upon it. Incentives can be both financial
and non-financial in nature and both help the entrepreneur in taking crucial decision and action.

Financial Incentives for SSIs Micro and small enterprises

especially of developing countries, have to struggle much in fulfilling the requirement of finance,
which they need to expand their business. The conventional method of capital generation, i.e.,
issuing equity shares and debentures, is too costly to afford by micro and small enterprises. Tax
rebates, concession in excise duty, exclusion of electricity bills, investment allowance, sales tax
exemption, turnover tax exemption, etc., are some of the financial incentives granted by Central
and State Government. SSIs get following types of financial incentives:
1) Investment Allowance: Investment allowance is defined under Section 31A of the
Income Tax Act, 1961. Yet, it was introduced in 1976 and it replaced an allowance, named as,
depreciation allowance. According to investment allowance, an SSI can avail the discount of
25% on the purchase of new plant and machinery. Provided that, the purchased plant and
machinery is brought into use in the same year it is been purchased or at most in the
immediately following year. Otherwise, the Government can recover the benefit from the
beneficiary.
2) Tax Holidays/Concessions: Section 80J of the Income Tax Act, 1961 states that a newly
established industrial unit need not to pay the income tax on its profit until and unless the profit
exceeds 6 per cent per year of the total capital of the unit. This tax Concession is applicable on
an industrial unit only for first five years of its operation. Government of India recently launched
a campaign to promote entrepreneurship among Indians. The narne of campaign is "Start-up
lndia", which provides exemption from income tax to start ups on their profits, for first three
years of their operation. It also provides exemption from 20 per cent of the income tax to
government approved entrepreneurs. Other than income tax, concessions are also given to small
scale industries on excise duty, turn-over tax, and sales tax.
3) Depreciation: According to Section 32 of the Income Tax Act, 1961 an SSI having a
block of assets at the prescribed rate is entitled to a deduction on depreciation account. A
maximum amount of 20 lac is allowed to be deducted from the actual cost of plant and
machinery. For calculating the depreciation amount, diminishing balance method is been used
by Income Tax department. And if, assets are obtained before the accounting period, then
depreciation is calculated on the written down value.
 4) Investment Allowance: Investment allowance is defined under Section 31A of the
Income Tax Act, 1961. Yet, it was introduced in 1976 and it replaced an allowance, named as,
depreciation allowance. According to investment allowance, an SSI can avail the discount of
25% on the purchase of new plant and machinery. Provided that, the purchased plant and
machinery is brought into use in the same year it is been purchased or at most in the
immediately following year. Otherwise, the Government can recover the benefit from the
beneficiary.
5) Tax Holidays/Concessions: Section 80J of the Income Tax Act, 1961 states that a newly
established industrial unit need not to pay the income tax on its profit until and unless the profit
exceeds 6 per cent per year of the total capital of the unit. This tax Concession is applicable on
an industrial unit only for first five years of its operation. Government of India recently launched
a campaign to promote entrepreneurship among Indians. The narne of campaign is "Start-up
lndia", which provides exemption from income tax to start ups on their profits, for first three
years of their operation. It also provides exemption from 20 per cent of the income tax to
government approved entrepreneurs. Other than income tax, concessions are also given to small
scale industries on excise duty, turn-over tax, and sales tax.
6) Depreciation: According to Section 32 of the Income Tax Act, 1961 an SSI having a
block of assets at the prescribed rate is entitled to a deduction on depreciation account. A
maximum amount of 20 lac is allowed to be deducted from the actual cost of plant and
machinery. For calculating the depreciation amount, diminishing balance method is been used
by Income Tax department. And if, assets are obtained before the accounting period, then
depreciation is calculated on the written down value.
7) International Cooperation (IC) Scheme: The IC scheme covers the activities which
can assist the MSMES to grow such as, upgradation of technology of the firms of MSME
sector, their export promotion, etc. The activities covered under IC scheme are as follows:
A group of representatives of MSME sector is sent to different countries in order to identify
i) potential for collaboration and joint ventures, to tap the market opportunities, to identify
newer scope of improvements, etc.
ii) Partaking in events such as, trade fairs, exhibitions, buyer-seller meetings, taking place
either in India or in any other country; especially in those where participants came from all over
the world.
iii) Organising the seminars and conferences of global level on topics that could be beneficial
 to MSMEs.
8) Credit Linked Capital Subsidy Scheme: CLCSS has been started by Government of
India to assist the MSEs in technological upgradation. According to this scheme, all the
manufacturing associated MSEs are entitled for subsidy of 15 per cent or15 lac (whichever is
less), in the investment on installation of approved plant and machinery costing maximum 1
crore.

Non-Financial Incentives for SSIs

The incentives which are started for a purpose of developing infrastructural facilities necessary
for the smooth functioning of small-scale units and overall development of small-scale industries
are known as non-financial incentives.
State Governments develop such facilities and then provide them to the small-scale industries
either for free or on subsidised cost. Some of the important non-financial incentives prevalent in
India for SSI units are as follows
General Incentives:
Restricting certain items to be purchased in public sector only from micro and small-scale units,
giving preference to their prices Over medium scale units and large-scale units, and schemes
such as, Self-Employment to educated Unemployed Youth (SEEUYY) are all come in the
category of general incentives,
2) Special Incentives in Backward Areas:
Financial assistance at concessional rate of interests, subsidy in transport facilities, and rebates in
income tax are some of the special incentives in backward areas prevailing in India.
3) Incentives to Non-Resident Indians (NRIs):
NRIS can avail special facilities and incentives if they want to set-up a small-scale unit in the
state, they belong to State Governments of Uttar Pradesh, Rajasthan, Punjab, and Himachal
Pradesh provide such incentives to promote the development of SSIs.
4) Special Incentives for Women:
Special incentives are provided to those SSl units which are set-up and operated by women and it
is run by at least 80 per cent of women workers as well. Such special incentives include subsidy
for rent and acquisition of plant and machinery up to 50 per cent, paid training programmes,
managerial grant, etc. Government of Kerala and Tripura have the provision of such incentives.
Fiscal and Tax Concessions
Fiscal and tax concessions are one of the major key policies formulated by the government for
helping the small and medium enterprises. The best kind of financial incentives provided by the
government involves tax rebates and tax holidays given on the direct and indirect taxes. tax
structure of India has undergone massive changes. For example, changes such as relaxation in the
rate of corporate taxes and custom duty, simplified tax structures, institution of VAT,
harmonisation of custom duties with the standards set by ASEAN, etc. In India several provisions
have been made in the tax slab in form of rebates and concessions supporting specific sectors. For
example, tax concessions for SSIs, enterprises located in rural areas, sick units, infrastructure
development units, etc. Taxation Policies of the Government for Start-Ups Tax exemptions and
benefits have been formulated for boosting the start-ups in the country. With the proposal of
Union Budget of 2017-18, various changes have made in the taxation policies which favour the
budding entrepreneurs, some of these changes are made been under the 'Start-up India' Policy of
the government highlight of which are as follows
1) Complete Tax Exemption for First Three Years:
Government has proposed 100 per cent exemption of tax imposed on profits and gains of
business for the start-ups involved in development, innovation, distribution or commercialisation
of new products. processes or services driven by technology or intellectual property. This
relaxation has been given for the first three years of the inception of the entrepreneurial venture.
This declaration was made in the Budget Session of the Parliament. The start-ups only need to
pay the MAT (Minimum Alternate Tax) at rate of 18.5 per cent. However, the government has
also given relief from MAT in case the business fails to make any profit during the first five years
of inception. The annual income of the business should not exceed 25 crores in any financial year
up to 31 March 2021 else it will be taxed.
2) Abolition of 'Angel Investment Tax':
Government has also given relief to the start-up firms from 'Angel Investment Tax, which was
introduced in 2012. It stated that the angel investors (like family, friends and domestic funds)
which are not registered as Venture Capital (VC) funds but which earlier raised capital from VC
funds will not be imposed any tax on such investments. These investors enjoy the liberty to issue
shares to investors at higher rates without any tax obligations. However, these tax benefits are
backed by certain conditions which need to be fulfilled. These conditions are imposed by the
Department of Industrial Policy and Promotion (DIPP). For enjoying the benefits of tax
concessions, the start-ups need to attain the certificate which states that they are eligible. This
certificate is provided by the 'Inter-Ministerial Board of Certification.
3) Setting-Up of a Fund of Funds' for Start-Ups: For providing financial support to the
start- ups in their inception stage, the government has decided to arrange for funds with an
initial corpus of 2,500 crore and a total corpus of 10,000 crore over a period of four years. The
fund will come under Fund of Funds (These funds will not be invested directly in start-ups but
through SEBI registered venture funds).
4) Exemptions in Capital Gains Tax:
Provisions have also been made for exempting the tax payers from paying capital gain tax which
is 20 per cent of the profit from capital gains. Capital gains are derived from the proceeds of sale
of capital assets (like bonds, stocks, etc.). Businesses have been demanding for this tax
exemption since long. It is seen as a lucrative opportunity for the start-ups. the investments
made in Indian start-ups were routed through Mauritius since capital gains tax on investment
from that country was waived off due to the policy of Double Tax avoidance.
5)Other Tax Adjustments and Fund Allocations to Encourage Start-Ups:

Other major adjustments and allocations made for encouraging the start-ups are as follows:
i) Provisions have been made for boosting entrepreneurs belonging to Scheduled Caste
and Scheduled Tribes.
ii) Funds up to 500 crores under Start-up India for SC/ST and women entrepreneurs have
been allocated.
ii) Long-term capital gains tax rates have been lowered for firms which are not in the list from
three to two years.
iv) For enabling the entrepreneurs related with road transport sector, amendment in the
Motor Vehicles Act have been made.
v) The eligibility for the probable tax scheme has been raised for supporting the small
businesses. Now, the firms whose turnover is up to 2 crores from the earlier I crore can enjoy
the benefit.
vi) For first three years, provision for 'Employee Provident Fund' has also been made. This will
help the start-ups in saving 12 per cent of the costs incurred by them. It will also provide
security benefits to the employees.
vi) The 80GG deduction has been increased from earlier 24,000 to 60,000 providing relief to
entrepreneurs who are living in rented houses away from their native places.

SUBSIDIES
Financial assistance or aid provided to an economic sector including businesses, institutions as
well as individuals aiming at promoting economic and social known as subsidy. The subsidies
are generally by the government. These subsidies can be given as a support in the form of tax
reduction or cash.
For example, subsidies provided by the government to the BPL (Below Poverty Line) families.
The motive behind giving subsidies is to lessen the burden. It is meant to the general welfare of
the public. It helps in Promoting economic policy and social welfare.
 Important Government Subsidies for Small Businesses in India
In case of small-scale industry, government subsidies play an important role in supporting small
businesses. Both central and state governments provide various incentives for promoting the
development of small-Scale industries specially MSME. The list of some of the important
government subsidies proposed for small business in various sectors is as follows
1) Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE):
This scheme is launched by the central government for provoking Collateral-free credit to Indian
MSMES the new as well as existing enterprises are eligible for this scheme. A trust named Credit
Guarantee Fund trust for Micro and Small Enterprises (CGTMSE) has been established by SIDBI
for implementation of the scheme. Under this scheme, credit facility is given in the form of
working capital facility and term loans of up to 100 lakh per borrowing unit. This scheme also
provides assistance for rehabilitating the sick units.
2) Government Subsidy for Small Business-Organic Farming: The commercial
production units manufacturing organic fertilizers/bio-fertilizers are given capital investment
subsidy by the government. This scheme falls under National Project on Organic Farming. The
eligible subsidy amount is declared by NABARD/NCDC. The eligible candidate will receive 50
per cent advance subsidy to the participating bank for keeping the same in subsidy reserve fund
account of the concerned Borrower.
3) Technology Upgradation Fund Scheme (TUFS) for Textile Industry:
This scheme is launched by Ministry of Textiles for benefiting the textiles and jute industry. It
provides benefits such as 5 percent exchange fluctuation (interest and repayment) from the base
rate on FCL(Flexi credit loan), 5 percent interest reimbursement of the normal interest charged
by the lending agency on RTL(Rupee term loan) or 15 per cent credit linked capital subsidy for
SSI sector,20 per cent for power loom sector. Besides 5 per cent interest reimbursement and 10
per cent capital subsidy for specified processing machinery is also given.
4) Scheme for Technology Upgradation/ Establishment/Modernisation for Food Processing
Industries:
Activities such as setting or expanding the food processing industries (fruits and vegetable, milk
product, oil seeds, fishery. meat. poultry, etc.) and other Agri-horticultural sectors is covered
under this scheme.
Various other activities like shelf life enhancement of flavours of food, colour of food, spices,
coconut, hops, mushrooms, etc., is also covered. Grant is given to the eligible units, up to 25 per
cent of the plant and machinery and technical civil work subject to a maximum of 50 lakh in
General Areas and 33.33 per cent up to 75 lakhs in Difficult Areas.
5) Integrated Development of Leather Sector Scheme for Leather Industry:
As the name suggests, this scheme is meant for boosting the growth of leather industry. It helps
the existing footwear, tanneries and leather product units expanding, improving the design and
development, reducing the cost of production, enabling right sizing of capacity, and motivating
the entrepreneurs to set up new units in the leather industry.
The new units need to register themselves and provide the copy of the registration for availing
the benefits of the scheme. NOC (No Objection Certificate) is also required to be produced to
show that the area where plan and machinery is set-up is legally permitted.
6) Credit Linked Capital Subsidy Scheme for Technology Up gradation (CLCSS):
In order to maintain the competitiveness in the market and minimise the production cost, up
gradation of the plant and machinery as well as process is important. Ministry of Small-Scale
Industries runs this technology up gradation scheme. Its main objective is to facilitate technology
up gradation by providing the upfront capital subsidy of 15 per cent which is limited to maximum
15 lakh for SSI units. The eligible candidates for this scheme involve private and public limited
companies, sole proprietors, partnership firms, and cooperative firms.
7) Market Development Assistance Scheme for Micro, Small and Medium Enterprises:
This scheme is subjected to offer funds to the manufacturing small and micro enterprises for
participating in the International Trade Fairs and Exhibitions organised under MSME India stall,
Export Promotion Councils, sector-specific market studies by Industry Associations, Federation
of Indian Export Organisation, and reimbursement of 75 per cent of one-time registration and
annual fee which has been paid to GSI by the small enterprises for bar code.
8) Technology and Quality Up gradation Support for MSMEs:
This subsidy has been provided by the government in an effort to enhance the quality standards
adopted by the MSMEs in India. It is mainly launched for obtaining the ISO certifications like
ISO 9000, ISO 14001 and HACCP. This initiative taken under NMCP focuses on enhancing
productivity, technology up gradation, energy conservation, etc., of the manufacturing firms. It
also focuses on the expansion of the MSMEs in both global and domestic markets.
9) Mini Tools Room and Training Centre Scheme:
In order to assist the state, government has set-up training centres and mini tool room. The
government also provides financial support in the form of one-time grant-in-aid. In case new mini
tool room has to be created, 75 per cent of the cost (maximum up to 7.50 crore) is covered, and in
case of setting up of new one, 90 per cent of the cost of machinery equipment (maximum to 29
crore) is covered. The main motive of the government is to develop more tool room facilities
These tool rooms and training centres will help in providing technical support to the MSMEs. It
will also create skilled workforce., designers, engineers and supervisors for MSMEs.
10) Government Subsidy for Small Business from NSIC: Under this scheme, two basic
subsidies namely. marketing assistance and raw material assistance is provided. The main
objective of Raw Material Assistance Scheme is to help the Small-Scale Industries by
providing them financial assistance in purchasing raw material. The raw material purchased can
be both imported and indigenous ones. Such assistance helps the small-scale businesses to
focus on enhancing their product quality standards. National Small Industries Corporation
(NSIC)
provides support to the MSMEs in improving their product's marketability as well as
competitiveness in the market.
11) Government Subsidy for Small Business for Cold Chain: Government also provides
subsidy to the cold chain under its cold chain scheme. Infrastructure facilities and value addition
is provided for having an integrated cold chain. The infrastructure facilities majorly cover pre-
cooling facilities at production sites, mobile cooling units, value addition centres and reefer
vans. Government aims that the centres should have facilities such as single and multi-line
processing and collection centres for cultivated produces, dairy and poultry products, meat,
organic products, etc. Any individual, Farmers Producer Organisations (FPOs), Cooperative
Societies, NGOs, Self Help Groups (SHGs), entrepreneurs, central or state PSUs, etc., are
eligible for setting-up a preservation infrastructure and integrated cold chain. All of them can
enjoy the benefits of the grant provided under this scheme.
12) Under Technology Mission on Coconut (TMOC) for Coconut Producing Units:
Coconut Development Board provides assistance under Technology Mission on Coconut
(TMOC). The government helps those who want to start a coconut-based business. A subsidy
scheme is introduced for the units that employ innovative and value-added coconut producing
techniques. All individuals are eligible to avail the benefits provided by government in setting up
coconut-based business. By paying technology transfer fee, individuals can avail technology for
various coconut derived products, e.g., technology for producing coconut oil, packing of tender
coconut water, coconut milk powder, vinegar, dietary fibre, etc.
13) SAMPADA Scheme for Agro-Marine Produce Processing: This scheme is launched
by the government for the development of Agro entrepreneurship Development and
Government Processing Clusters and Agro-Marine processing
The scheme focusses on integrating ongoing and upcoming schemes related with the food
processing sector. A budget of around 36000 Crores has been created by the government
Minimising the waste of food and enhancing income of farmers are some of the main objectives
of this scheme

14) Government Subsidy for Small Business - Dairy Farming:

The NABARD dairy farming subsidy was Launched with an aim to support the dairy farming
industry in India. It covers all the areas from extracting milk to managing the manure to convert
it Organic fertilizer used in cultivation. The cattle dung can also be used for producing energy
through Gober gas for doing mechanical works like drawing water from well and running
pumps.
15) Government Subsidy for Small Business for horticulture: National Horticulture
Board (NHB) is a government organisation which was established in the year 1984. The main
objectives of National Horticulture Board are to develop modern post-harvest management
infrastructure, develop hi-tech commercial horticulture, develop the market of horticulture
products and also to promote them.
16 Skill Up gradation and Quality Improvement and Mahila Coir Yojana:
Government has provided various subsidies and schemes for empowering the women in our
society, especially the rural women to make them independent. One of these schemes is Mahila
Coir Yojana (MCY), which focuses on empowering women by providing them training in
spinning at subsidised rate. Skill development (training) programmes are conducted to train these
women. Ministry of MSME has launched this scheme and it is applicable in all India states.

2. Write a short note on grants

 The financial assistance given by the government in the way of money without any
expectation of receiving back the fund is known as grant.
 Grants does not include any sort of technical assistance which involves services rather
than money or other types of assistance in way of loans, revenue sharing, guarantees,
subsidies on interest, insurance, etc. Government serves as the best source for grants
even during the times of economic depression. For example, grants to co-fund the
research projects are provided by the government of India. However, the government
first examines and verify the project before sanctioning any grants. Government also
provides grants for conducting research in technology-based project, R & D, and other
such initiatives.
 Small Business Innovation Research (SBIR) is an initiative of Indian government to
provide grants for the development of small businesses that are seeking funds for high-
risk technologies. The SBIR has provided funds to various start-ups, grants in the form of
funds have been given to HealthCare, biotechnology, software, and defence firms. The
communities’ who are Receiving grants have the liberty to develop programmes that helps
in meeting the needs in public works, public services, housing acquisition, economic
development, development of property planning and administration associated with urban
needs.
 However, all these needs should be linked with the national grants provided to
various communities aims at providing benefits to those having low and moderate
income, eliminating poverty, fulfilling basic needs of the BPL families, etc. Sometimes,
these community’s set-up a revolving loan pools which can be availed by the small
businesses and start-ups.

3. briefly discuss central and state level institutions supporting MSME in India
 4. What are Export oriented units

5. Elucidate start up India scheme

INTRODUCTION
Start-up India is a flagship initiative of the Government of India, intended to build a strong
ecosystem for nurturing innovation and start-ups in the country. This will drive sustainable
economic growth and generate large scale employment opportunities.
The Government, through this initiative aims to empower start-ups to grow through innovation
and design. In order to meet the objectives of the initiative. Government of India announced an
Action Plan that addresses all aspects of the start-up ecosystem. With this Action Plan, the
Government hopes to accelerate spreading of the start-up movement from digital/ technology
sector to a wide array of sectors including agriculture, manufacturing, social sector, healthcare,
education, etc., and from existing Tier-I cities to Tier-Ii and Tier-Il cities including semi-urban
and rural areas.

ACTION PLAN OF THE SCHEME;

The Action Plan is divided across the following areas:
1) Simplification and Handholding
i) Compliance Regime based on Self Certification:
In order to make compliance for start-ups friendly and flexible, simplifications are required in
the regulatory regime. Accordingly, the process of conducting inspections shall be made more
meaningful and simpler.
 Start-ups shall be allowed to self-certify compliance (through the Start-up mobile app) with 9
labour and environment laws. In case of the labour laws, no inspections will be conducted for a
period of 3 years. Start-ups may be inspected on receipt of credible and verifiable complaint of
violation, filed in writing and approved by at least one level senior to the inspecting officer. In
case of environment laws, Start-ups which fall under the white category' (as defined by the
Central Pollution Control Board (CPCB)) would be able to sell certify compliance and only
random checks would be carried out in such cases.

ii)Start-up India Hub:

The objective here is to create a single point of contact for the entire start-up ecosystem and
enable knowledge exchange and access to funding. Young Indians have the conviction to venture
out on their and a conducive ecosystem lets them watch their ideas come to life. In today's
environment, people have more Start-ups and entrepreneurs than ever before and the movement is
at the end of a revolution. However, many Start-ups do not reach their full potential due to limited
guidance and access.
The Government of India has taken various measures to improve the ease of doing business and
is also building an exciting and enabling environment for these start-ups, with the launch of the
"Start-up India" movement.
iii) Rolling-Out of Mobile App and Portal:
The objective here is to serve as the single platform for start-ups for interacting with Government
and Regulatory Institutions for all needs and information exchange among various stakeholders.
Towards these efforts, the Government shall introduce a Mobile App to provide on-the -go
accessibility for
a) Registering start-ups with relevant agencies of the Government. A simple form
shall be made available for the same. The Mobile App shall have backend integration with
Ministry of Corporate Affairs and Registrar of Firms for seamless information exchange and
processing of the registration application.
b) Tracking the status of the registration
application and anytime downloading of the registration certificate. A digital version of the final
registration certificate shall be made available for downloading through the Mobile App.
c) Filing for compliances and obtaining information on various
clearances/ approvals/registrations required for start-up
d) Collaborating with various ecosystem partners. The App shall provide a collaborative
platform with a national network of stakeholders (including venture funds, incubators,
academia, mentors, etc
e) Applying for various schemes being undertaken under the Start-up India Action Plan.
 f) Legal Support and Fast-Tracking Patent Examination at Lower Costs:
The objective here is to promote awareness and adoption of IPRs by start-ups and facilitate them
in protecting and commercialising the IPRs by providing access to high quality Intellectual
Property services and resources, including fast track examination of patent applications and
rebate in fees.

g) Fast-Tracking Applications:
The valuation of any innovation goes up immensely, once it gets the protective cover of a patent.
To this end, the patent application of start-ups shall be fast-tracked for examination and disposal,
so that they can realise the value. Govt should assist in filing, facilitation cost, Rebate on Filing of
Application
v) Relaxed Norms of Public Procurement for Start-ups:
The objective here is to provide an equal platform to start-ups (in the manufacturing
sector) viz. a viz. the experienced entrepreneurs/ companies in public procurement.
Typically, whenever a tender is floated by a Government entity or by a PSU, very often
the eligibility condition specifies either "prior experience" or "prior turnover". At
present, effective April 1, 2015 Central Government. State Government and PSUs have
to mandatorily procure at least 20% from the Micro Small and Medium Enterprise
(MSME) In order to promote start-ups, Government shall exempt start-ups (in the
manufacturing sector) from the criteria of "prior experience/turnover" without any
relaxation in quality standards or technical parameters.
vi) Faster Exit for Start-ups:
The objective here is make it easier for start-ups to wind-up operations. Given the
innovative nature of start-ups, a significant percentage fail to succeed. In the event of
a business failure, it is critical to reallocate capital and resources to more productive
avenues and accordingly a swift and simple process has been proposed for start-ups to
wind-up operations. This will promote entrepreneurs to experiment with new and
innovative ideas, without having the fear of facing a complex and long-drawn exit
process where their capital remains interminably stuck.
2) Funding Support and Incentives
i) Providing Funding Support through a Fund of Funds with a Corpus of
10,000 Crore:
The objective here is to provide funding support for development and growth of innovation
driven enterprises. Key features of the Fund of Funds are highlighted below:
a) The Fund of Funds shall be board with drawn from industry bodies, academia, and
successful start-ups.
 b) Life Insurance Corporation (LIC) shall be a co-investor in the Fund of Funds.
c) The Fund shall ensure support to a broad mix of sectors such as manufacturing,
agriculture, health, education, etc.
ii)Credit Guarantee Fund for Start-ups:
The objective here is to catalyse entrepreneurship providing credit to innovators across all
sections of society. In order to overcome traditional Indian stigma associated with failure of
Start-up enterprises in general and to encourage experimentation among start-up entrepreneurs
ii) Tax Exemption on Capital Gains:
objective here is to promote investment to start-ups by mobilising the capital gains arising from
sale of capital assets. Due to their high-risk nature, start-ups are not able to attain investment in
their initial stage. It is therefore important that suitable incentives are provided to investors for
investing in the star. ecosystem. With this objective, exemption shall be given to persons who
have capital gains during the year, if they have invested such capital gains in the fund of funds
recognised by the Government.

iv) Tax Exemption to Start-ups for 3 Years:

With a view stimulate the development of start-ups in India and provide them a competitive
platform, it is imperative that the profits of start-up initiatives are exempted from income-tax for
a period of 3 years. This fiscal exemption shall facilitate growth of business and meet the
working capital requirements during the initial years of operations. The exemption shall be
available subject to non-distribution of dividend by the start-up.

v) Tax Exemption on Investments above Fair Market Value:

The context of start-ups, where the idea is at a conceptualisation or development stage, it is often
difficult to determine the FMV of such shares. In majority of the cases, FMV is also significantly
lower than the value at which the capital investment is made. This results into the tax being levied
under section 56. Currently investment by venture capital funds in start-ups is exempted from
operations of this provision. The same shall be extended to investment made by incubators in the
start-ups.
3) Industry-Academia Partnership and Incubation

i) Organising Start-up Fests for Showcasing Innovation and

Providing a Collaboration Platform:
To booster the start-up ecosystem in India, the Government is proposing to introduce start-up
fests at national and international stages. These fests would provide a platform to start-ups in
India to showcase their ideas and work with a larger audience comprising of potential investors,
mentors and fellow start-ups.
 ii) Launch of Atal Innovation Mission (AIM) with Self-
Employment and Talent Utilisation (SETU) Programme:
The Atal Innovation Mission (AIM) shall have two core functions:
Entrepreneurship promotion through Self Employment and Talent (SETU), wherein innovators
would be supported and mentored utilisation successful entrepreneurs, and to become Innovation
promotion to provide a platform where innovative ideas are generated.
iii) Harnessing Private Sector Incubator Setup:
Incubation facilities typically Expertise for include physical infrastructure, provision of
mentorship support, access to networks, access to market, etc. Of all these features, physical
infrastructure entails large capital investments which can generally be facilitated by the
Government. However, requisite skills for operating an incubator are pivotal as well, for which
expertise of the private sector needs to be leveraged. Considering this, Government shall
encourage setting up of:
a) 35 new incubators in existing institutions. Funding support of 40% (subject to a
maximum of 10 crore) shall be provided by Central Government for establishment of new
incubators for which 40% funding by the respective State Government and 20% funding by the
private sector has been committed. The incubator shall be managed and operated by the private
sector.
b) 35 new private sector incubators. A grant of 50% (subject to a maximum of 10 crore)
shall be provided by Central Government for incubators established by private sector in existing
institutions. The incubator shall be managed and operated by the private sector.

iv) Building Innovation Centres at National Institutes:

In order to augment the incubation and R&D efforts in the country, the Government will set
up/scale up 3I centres (to provide facilities for over 1,200 new Start-ups) of innovation and
entrepreneurship at national institutes, including:
a) Setting-up 13 Start-up Centres: Annual funding support of `50 lac (shared 50:50 by
DST and MHRD) shall be provided for three years for encouraging student driven Start-ups
from the host institute.
b) Setting-up/Scaling-up I8 Technology Business Incubators (TBIS)
at NITs/ITs/IMs, etc., as per funding model of DST with MHRD providing smooth approvals
for TBI to have separate society and built up space. setting up of 7 New Research Parks
Modelled on the Research Park Setup at IIT Madras:

vii) Promoting Start-ups in the Biotechnology Sector:

The Biotechnology sector in India is on a strong, growth trajectory. department of
Biotechnology endeavours to scale up the number of start-ups in the sector by nurturing
 approximately 300-500 new start-ups each year to have around 2,000 start-ups by 2020.
In order to promote start-ups in the sector. The Department of Biotechnology shall be
implementing the following measures along with its Public Sector Undertaking
Biotechnology Research Assistance Council (BIRAC)
a) Bio-incubators, Seed Fund and Equity Funding, and
b) Encouraging and leveraging global partnerships.
vii) Launching of Innovation Focused Programmes for Students:
In order to promote research and innovation among young students, the Government shall
implement the following measures:
a) Innovation Core: Innovation core programme shall be initiated to target school kids with
an outreach to 10 lac innovations from 5 lac schools. One lac innovation would be targeted and
the top 10,000 innovations would be provided prototyping support. Of these 10,000
innovations, the best 100 would be shortlisted and showcased at the annual festival of
innovations in the Rashtrapati Bhavan.
b) NIDHI: A grand challenge programme ("National Initiative for Developing and
Harnessing Innovations) shall be instituted through Innovation and Entrepreneurship
Development Centres (IEDCs) to support and award 10 lac to 20 student innovations from
IEDCS.

c) Uchhattar Avishkar Yojana: A joint MHRD-DST scheme which has earmarked (250
crore per annum towards fostering "very high quality" research amongst IT students. The
funding towards this research will be 50% contribution from MHRD, 259% from DST and
25% from industry. This format has been devised ensure that the research and funding get
utilised bearing in mind its relevance to the industry. Each project may amount to 25 crores
only. This scheme will initially apply to IITs only.
vii) Annual Incubator Grand Challenge:
The Government is proposing to make forward looking investments towards building world class
incubators. In its first phase, the aim is to establish 10 such incubators. To enable this, Gol shall
identify and select 10 incubators who have the potential to become world class. These incubators
would be given 10 crore each as financial assistance which may be used for ramping up the
quality of service offerings. The incubators shall also become reference models for other
incubators aspiring to offer best-in class services. Video interviews of these incubators would be
showcased on the Start-up India portal. An "Incubator Grand Challenge" exercise shall be carried
out for identification of these incubators. The exercise shall entail:
a) Open invitation of applications from incubators, and
b) Screening and evaluation based on pre-defined Key Performance Indicators (KPls).
 6. Discuss reasons for low women entrepreneurs and strategies to motivate entrepreneurship
among women

Reasons for Low Women Entrepreneurs/Challenges of Women

Entrepreneurs
Following are the various challenges faced by women entrepreneurs:

1) Lack of Confidence:
There are many women entrepreneurs who lack confidence at the initial stage of their
businesses. It mainly occurs due to the restrictions imposed by the traditional society and
orthodox cultures. The confidence level of women entrepreneurs to achieve business goals
further decreases, as the society does not readily accept women as entrepreneurs and doubt
their strengths and abilities.

2) Legal, Statutory and Procedural Formalities:

The process of setting up a business involves various legal, procedural and formalities. Usually,
women entrepreneurs do not have much knowledge about the business formalities and they get
frightened or discouraged listening about them. Without proper guidance continuous assistance,
women get confused in such legislative and administrative procedures. As a result, most of the
women entrepreneurs drop the idea of running an independent business.

2) Problems of Marketing:
It is a difficult task for women entrepreneurs to market their products. This has become a
common problem for all women entrepreneurs. The cost of marketing and advertising is
very high compared to their limited resources. They are inexperienced and untrained to
undertake salesmanship and implement any marketing tool in the market.
3) Decision-making and Problem-Solving:
Women entrepreneurs generally do not possess quick decision-making abilities and
problem-solving skills. They become emotional at the time of solving problems. Also,
whenever problems are evaluated at personal level then the objective analysis is lost and
solutions remain unexplored.
4) Insufficient Professional and Technical Training:
Due to insufficient professional and technical training, women entrepreneurs face many
challenges. Some of its consequences involve improper project selection, non-utilisation of
government schemes and incentives, and unawareness about new and existing opportunities.
5) Operational Problems:
Women entrepreneurs often deal with operational problems while handling the workers.
According to the various psychologies and sociological customs, men do not like to take
orders from a woman and obey them. This causes strikes and conflicts among labours.
6) Lack of Management Inputs:
Most of the women entrepreneurs, who do not have a management domain, lack in
various management-related activities such as business planning, supervision, advertising,
investments, labour laws, fiscal policies, etc. As a result, they are known as 'weak
entrepreneurs'. There is no such support system which can build the required skills and
 competencies of women entrepreneurs

7) Problems of Marketing:
It is a difficult task for women entrepreneurs to market their products. This has become a
common problem for all women entrepreneurs. The cost of marketing and advertising is
very high compared to their limited resources. They are inexperienced and untrained to
undertake salesmanship and implement any marketing tool in the market.
8) Decision-making and Problem-Solving:
Women entrepreneurs generally do not possess quick decision-making abilities and
problem-solving skills. They become emotional at the time of solving problems. Also,
whenever problems are evaluated at personal level then the objective analysis is lost and
solutions remain unexplored.
9) Insufficient Professional and Technical Training:
Due to insufficient professional and technical training, women entrepreneurs face many
challenges. Some of its consequences involve improper project selection, non-utilisation of
government schemes and incentives, and unawareness about new and existing opportunities.
10) Operational Problems:
Women entrepreneurs often deal with operational problems while handling the workers.
According to the various psychologies and sociological customs, men do not like to take
orders from a woman and obey them. This causes strikes and conflicts among labours.
11) Lack of Management Inputs:
Most of the women entrepreneurs, who do not have a management domain, lack in
various management-related activities such as business planning, supervision, advertising,
investments, labour laws, fiscal policies, etc. As a result, they are known as 'weak
entrepreneurs'. There is no such support system which can build the required skills and
competencies of women entrepreneurs
12) Technological Changes:
The rapid advancement in technology has changed the extent and scope of entrepreneurial
activities such as machinery, raw materials, design, packaging. advertising, distribution
network, etc. It is very crucial for women entrepreneur to keep themselves aware of the
technological changes. Otherwise, it may lead to high cost of production and low sales.
13. Government Assistance Problems:
Many government officials do not cooperate and encourage women entrepreneurship. The
government departments related to small industries like electricity, taxation, labour, etc., do
not allot sales tax number, or electricity connection, etc., when they are aware of the fact that
the business is owned by a woman. In addition to this, women entrepreneurs do not have
much knowledge about the laws, legal procedures and complicated government
establishments.
14. Financial Problems: Many women entrepreneurs of small-scale enterprises
face financial problems due to the negligence and mismanagement of the available
funds. This may further lead to financial crisis.
 Factors Motivating Women Entrepreneurship
The factors motivating women entrepreneurship are as follows:
1) Self-satisfaction:
Women in satisfaction make their way into businesses. Most of the women choose to be
entrepreneurs in order to be independent, have greater control over time, utilise their skills
and knowledge, make wealth and prosperity, etc. These all factors motivate them to start or
run a business.

2) Financial Motives:
One of the most important factors that motivate an entrepreneur is money. In thirst of
making more profits, entrepreneurs start new businesses and create innovative products.
However, in comparison to men, women are comparatively less money-oriented. They
concentrate more upon other benefits of entrepreneurship such as time flexibility,
independence, being one's own boss, etc.

3) Work/Family-related Factors:
Often, the factors related to the family motivate women to become entrepreneurs. Women
with high potential manage between work and family. They earn well by utilising their
skills and abilities, being an entrepreneur. Sometimes, poor family conditions also motivate
women entrepreneurship.

4) Meaning of Work in One's Life:

A woman always wants to be appreciated and respected in the business environment and
avoids work-related problems such as unemployment, lack of job satisfaction,
redundancy, gender-related issues at work, under-employment, etc. Thus, the true
meaning of work, in the life of a woman, also motivates her to become an entrepreneur.

5) Education and Learning:

According to various research studies, it is found that women entrepreneurs tend to acquire
education before starting up their own businesses. In contrast to men, women consider education
as an important resource as well as a critical process of attaining entrepreneurship and business
goals.
6) Experience:
Like education and learning, adequate experience in a particular business field is essential for
establishing a business enterprise. This experience can be achieved from previous jobs, work
cultures, role models, families, etc. For a woman entrepreneur, having a former experience
acts as an ideal motivator to operate the business activities and handle various challenges.

7) Family Influences:
The motivation behind women becoming entrepreneurs is mostly related to family
background and parental role models who are either entrepreneurs or self-employed. Their
attitude towards business, past experiences, independence, risk-taking ability, etc., motivates
 and inspires women to run their existing family businesses or to start a new business.

8) Social Expectations:
Another factor that motivates Women towards entrepreneurship is social expectation.
Socialisation and social expectations combine different roles of women's work and personal
lives which motivates them towards entrepreneurship. These expectations reflect the
importance of a woman in maintaining the welfare of the family, at the cost of her
professional ambitions. Many women reject the opportunity to become an entrepreneur
because of the burden of family responsibilities.

7. Give brief overview of following institutions in India

a) SIDBI b) NABARD C) IDBI d) SIDCO

Industrial Development Bank of India (IDBI):

The Industrial Development Bank of India was established under the Industrial Development
Bank of India Act, 1964, as a wholly owned subsidiary of the Reserve Bank of India. The
ownership of IDBI has since been transferred to Central Government from February 16, 1976.
The main objective of establishing IDBI was to set up an apex institution to co-ordinate the
activities of other financial institutions and to act as a reservoir on which the other financial
institutions can draw. IDBI provides direct financial assistance to industrial units also to bridge
the gap between supply and demand of medium- and long-term finance.
Functions of IDBI
1) To co-ordinate the activities of other institutions providing term finance to industry and to
act as an apex institution.
2) To provide refinance to financial institutions granting medium and long-term
loans to industry.
3) To provide refinance to scheduled banks or cooperative banks.
4) To provide refinance for export credits granted by banks and financial institutions.
5) To provide technical and administrative assistance for promotion, management or
growth of industry.
6) To undertake market surveys and techno-economic studies for the development of industry.
7) To grant direct loans and advances to industrial concerns, IDBI is empowered to finance
all types of industrial concerns engaged or proposed to be engaged in the manufacture,
preservation or processing of goods, mining, hotel, industry, fishing, shipping, transport,
generation or distribution of power etc.
8) To render financial assistance to industrial concerns, IDBI operates various schemes of
assistance, e.g., Direct Assistance Scheme, Soft Loans Scheme, Technical Development Fund
Scheme, Refinance Industrial loans Scheme, Bill Re-discounting Scheme, Seed Capital
Assistance Scheme, Overseas Investment Finance Scheme, Development Assistance Fund,
etc.
Financial Schemes Offered by IDBI
The various schemes of assistance of IDBI can be
mainly classified under two heads:

1) Direct Assistance:
It includes the following:
i) Project Finance Scheme:
Under this scheme, loans, underwriting, direct subscription and guarantees are
provided for setting-up new units as well as for expansion, diversification and
modernisation of existing units.

ii) Textile Modernisation Fund Scheme:

On the basis of the emphasis laid-down by the Government, IDBI set-up a Textile modernisation
Fund in 1986 to modernise the textile industry and to upgrade technology in the areas of spinning,
weaving and processing. For this purpose, IDBI sanctions two types of loans:
a) Modernisation loans, b) Special loans.

iii) Technology Up gradation Scheme:

This scheme was introduced in 1987 for the purpose of upgrading technology in selected capital
goods industries.

iii) Venture Capital Fund Scheme:

It was created by the Government of India in 1987 to be managed by IDBI. Its purpose
was to develop new ventures and promote risky enterprises by new technicians and
new entrepreneurs.
iv) Technical Development Fund Scheme:
This scheme was created by the Government of India in 1976 to provide
foreign exchange for import of machinery to speed-up the technical upgradation
and modernisation programmes of a selected group of industries.

2) Indirect Assistance:
IDBI provides the following indirect assistances:
i) Re-Finance Scheme:
Re-finance facility is made available to state-level institutions and commercial banks
to augment their resources for granting term loans for small scale and other medium
scale industrial units.
ii) Bill Re-Discount Scheme:
This scheme was introduced in 1965, with a view to help the indigenous
manufacturers to push-up sales of their products by offering deferred payment facilities
.
iii) Seed Capital Scheme:
It is created for the purpose of providing initial seed capital in the form of
promoters' contribution to new ventures.
iv) Operating Support Scheme:
Under this scheme, operating support is given by the IDBI to financial
intermediaries such as SIDBI, JFCI, SFCs and other leasing companies.

National Bank for Agriculture and Rural Development (NABARD)

NABARD was set pursuant to the recommendations made by the Committee to Review
Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD). It
was set up on July 12, 1982. The main purpose of NABARD was to promote Investment credit
cohesive rural growth and to ensure the for rural production as well as and agricultural growth.
NABARD is a top development bank and has the mandate to facilitate credit flow for the
Purpose of promoting and developing agriculture, Village and cottage industry and small-scale
industry. It also ensures the growth of handicrafts industry. following are the main tasks
entrusted to NABARD:
It helps in coordinating the activities of several tasks:
1) rural credit institutions Extending support to the Reserve Bank of India,
2) government and other stakeholders in the process of rural growth process.
3) Providing research and training functions for various participants such as banks
and cooperatives working for rural development.
4) Assisting state government in achieving their targets for providing aid to various institutions.
5) Carrying out the role of being a facilitator for banks and Regional Rural Banks.

Objectives of NABARD
1) The National Bank will serve as an apex body for the matters related to the policy and
planning for extending credit for promoting agriculture, cottage industry, small-scale
industries and rural crafts sector.
2) The bank will also have the responsibility to provide refinancing for institutional
credit, ranging from short-term to long-term in diverse sectors.
3) The bank will also be responsible for providing direct lending as directed by the
central government.

4) Aid state governments in meeting their target for extending assistance to various
institutions engaged in rural-sector development.
5) Provide services to regulate co-operative banks and Regional Rural banks and maintain
close links with Reserve Bank of India.
Functions and Working of NABARD
The functions and working of NABARD have been divided into three categories:

1) Credit Distribution:
This bank offers financing solutions to the following institutions:

i) Short-Term Credit: The firm offers short duration credit facilities to various
institutes such as Regional Rural Banks, State Cooperative Banks and other RBI approved
institutions for the following intents:
a) Seasonal agricultural operations.
b) Marketing of various agricultural products
c) Marketing and dispersion of products such as fertilisers and herbicides.
d) Other activities pertaining to rural development or agricultural development.
e) Real commercial activities.
f) Facilitate production and trade of handicrafts, products from small-scale industries
and artisans.
ii) Medium-Term Credit:
The NABARD offers medium-term credit to various approved institutions such as LDBs, RRBs
and SCBSs. Such credit may range from a few months to a couple of years, the bank extends
medium term loans for investment schemes for agricultural and rural development schemes.

iii) Long-Term Credit:

The NABARD offers long term credit facilities to RRBs, SCBs and State Land Development
Banks. It may also extend such services to other approved institutions.

v) Facilities for Changes and Re-Arrangement:

The NABARD extends refinance facilities to various institutes such as RRBs and
SCBs. It can also provide aid in the times of natural calamity. However, such
refinancing facility is only extended for 7 years or less.
vi) Refinancing of Industries in Rural Areas:
The NABARD offers refinancing provisions for small industries, rural industries
and cottage industries.

2) Development Functions:

The NABARD carries out the following development functions:

i) Coordinating the institutions offering rural credit.
ii) Work towards improving the capacity and efficiency of credit delivery system.
iii) Work towards developing solutions for problems faced by villages and
agricultural system.
iv) Offering help to government, RBI and other such organizations for improving their rural
improvement programs.

v) Represent the government as well as RBI for keeping a watch on agricultural sector.
vi) Offer research and training to the human resources of various institutions such as
RRBS. LDBs and SCBs. It also works towards enhancing research activities in different
areas.

vii) It also provides training facilities through its banker rural development institute and
national bank staff colleges at Lucknow, Bolpur and Mangalore, and College of
Agriculture Banking (CAB) at Pune. The training is imparted to people working in
the field of rural banking and development sector.
 viii) Represent the government as well as RBI for keeping a watch on agricultural sector.
ix) Offer research and training to the human resources of various institutions such as
RRBS. LDBs and SCBs. It also works towards enhancing research activities in different
areas.

x) It also provides training facilities through its banker rural development institute and
national bank staff colleges at Lucknow, Bolpur and Mangalore, and College of
Agriculture Banking (CAB) at Pune. The training is imparted to people working in
the field of rural banking and development sector.
xi) vii)) Disseminating information related to rural development and banking.
xii) Aid state governments in subscribing to the shares of state cooperative banks.
xiii) Offering direct credit for agricultural and rural development upon getting approval from
the central government.
xiv) Create a credit fund for the purpose of providing funds to the entrepreneurs engaged in
rural and agricultural sector.
Such aid is provided on interest-free basis and it recovered through yearly instalments after the
repayment of the loan.

3) Regulatory Functions:
Following are the main functions of NABARD
i) The Banking Regulation Act, 1949 allows NABARD to carry out inspection of
RRBs and banks and other cooperative banks are required
ii) to get NABARD approval for seeking RBI permission for the purpose of opening
new branches.
iüi) RRBs and other cooperative banks are bound to file returns and other documents with
NABARD as well as to RBI, pursuant to the provisions of the Banking Regulation Act, 1949.

Small Industries Development Corporation (SIDCO)

Small/State Industrial Development Corporations (SIDCO) are the state corporations
incorporated under Companies Act, 1956 which are responsible for encouraging and developing
large and medium size enterprises in their own states. With the varying business environment,
SIDCOs attempt to expand their actions in order to include a number of schemes and services. It
has also taken stride towards the arena of procuring machineries, venture capital, mutual funds,
etc.
Objectives of SIDCO
For accelerating the pace of industrialisation and its growth, State Industrial Development
Corporations have been set-up in several states. However, there is variation in the goals of state
corporations depending upon the level of industrialisation of the state. A few of its vital goals are
listed below:
1) To facilitate the development of underdeveloped areas of the state.
2) To establish and manage industrial institutions.
3) To provide facilities of training for workers and entrepreneurs.
Role of SIDCO
1. Recognising project ideas by carrying out industrial surveys for possibilities.
2.Preparing project feasibility reports.
3. Supporting the potential entrepreneurs regarding proper selection of project
proposals, process/technical expertise, collaborating with the providing foreign
investors, etc.
4. Promoting business projects in different public/joint sectors.

5. Giving guidance for services in accordance with rules and regulations like capital goods
clearance, secure DGTD registration/licences, pollution/water/ sewerage board requirements
drainage, and acquiring land in an industrial area, power, water., telex/telephone/ connection,
etc.
6. Providing risk capital to entrepreneurs through seed capital, equity participation, etc.

7. Providing term loans and assurance for deferred payments; recently, lease finance is
also provided by some organisations.
8. Providing merchant banking services for registering a company, guaranteeing and
controlling public concerns related to bonds, shares, debentures, and collaborating other
monetary provisions.
9. Developing industrial estates/areas.

10. Carrying out investment incentive schemes and other organisational operations supported
by State/Central Governments.
 11. Organising and sponsoring entrepreneurial development programmes,
and taking responsibility of other promotional actions in accordance with their
goals.

8. Discuss about IIE

9. Discuss DIC and explain Single window scheme
10. Discuss latest industrial policy of Government of India

Four Stages of Start Up:

 Idea stage

The first startup stage is evaluating your idea and finding the problem/solution fit. During this
time, it is imperative to expand upon your idea and test the market to learn how prospects will
perceive your idea. You can reach out to professionals in your area of interest and conduct
problem/solution fit interviews or focus groups. You can speak with people you believe to be
your target audience. Ask them questions to learn how they view the problem you are trying
to solve and what they are currently doing to address that problem (as your solution is not yet
available!!). You can also bring in consultants and subject matter experts to help. Partnering
with the right experts during the ideation phase of your startup has several benefits—they
know the industry, market trends, and can help you assess your idea fit.

 Launch Stage

The next stage in the lifecycle of your business is the Launch Stage. This is where you turn
your idea into reality and launch it to the market. You will need to use your best judgment
combined with the research you did in the idea stage to decide what your product or service
looks like. You can conduct some research to see how it will be received in the market. If you
have a physical product, you can also measure the reaction of some initial consumers actually
using your product.
  Growth Stage

In the growth stage, your business should be focused on generating a consistent source of
funds while also striving to reach new customers. Here, the biggest hurdle is dividing time
between various demands that require your attention, such as identifying and pursuing new
customers, managing increasing revenue, helping customers, evolving the product or service,
administration of the business, outsmarting the competition, etc.

 Maturity Stage

The last stage of the business lifecycle is Maturity. This is when you should be looking for
new opportunities to expand. This might entail building more localized teams to adapt the
product experience to each unique region, looking for acquisition opportunities that align
with your product or mission, and lastly, investing in your team and hunting for new growth
channels.

Types of Intellectual Property

The term intellectual property is usually thought of as comprising four separate legal fields:

1. Trademarks

2. Copyrights

3. Patents

4. Trade secrets
1. Trademarks and Service Marks: A trademark or service mark is a word, name, symbol, or
device used to indicate the source, quality and ownership of a product or service. A
trademark is used in the marketing is recognizable sign, design or expression which identifies
products or service of a particular source from those of others. The trademark owner can be
an individual, business organization, or any legal entity. A trademark may be located on a
package, a label, a voucher or on the product itself. For the sake of corporate identity
trademarks are also being.
2. Copyrights: A copyright is a type of intellectual property that gives its owner the exclusive
right to copy, distribute, adapt, display, and perform a creative work, usually for a limited
time. The creative work may be in a literary, artistic, educational, or musical form. Copyright
is intended to protect the original expression of an idea in the form of a creative work, but not
the idea itself.
3. Patent:
A patent is a type of intellectual property that gives its owner the legal right to exclude others
from making, using, or selling an invention for a limited period of time in exchange for
publishing an enabling disclosure of the invention.
There are three types of patents:

1. Utility patents may be granted to anyone who invents or discovers any new and useful
process, machine, article of manufacture, or composition of matter, or any new and
useful improvement thereof;
 2. Design patents may be granted to anyone who invents a new, original, and ornamental
design for an article of manufacture;
3. Plant patents may be granted to anyone who invents or discovers and asexually
reproduces any distinct and new variety of plant.
4. Trade Secrets:

A trade secret consists of any valuable business information. The business secrets are not to
be known by the competitor. There is no limit to the type of information that can be protected
as trade secrets; For Example: Recipes, Marketing plans, financial projections, and methods
of conducting business can all constitute trade secrets. There is no requirement that a trade
secret be unique or complex; thus, even something as simple and nontechnical as a list of
customers can qualify as a trade secret as long as it affords its owner a competitive advantage
and is not common knowledge.
Geographical Indications:
A geographical indication (GI) is a sign used on products that have a specific geographical
origin and possess qualities or a reputation that are due to that origin. In order to function as a
GI, a sign must identify a product as originating in a given place.
An effective protection for GIs was of considerable importance for a country like India,
which was richly endowed with natural and agricultural products and which already had in its
possession renowned geographical names such as 'Darjeeling'(tea), 'Alphonso' (mango),
'Basmati' (rice), etc., there was no separate legislation on GIs until the enactment of 'The
Geographical Indications of Goods (Registration and Protection) Act, 1999' (henceforth the
GI Act).
1. Nanjanagud Banana -Horticulture Product –Karnataka.
2. Mysore Sandalwood Oil-Essential Oil-Karnataka
3. Mysore Sandal Soap-Soap-Karnataka
4. Bidriware-Handicrafts-Karnataka
5. Channapatna Toys & Dolls- Handicrafts-Karnataka