SMALL BUSINESS

The Micro, Small and Medium Enterprises Development Act (MSMED) of 2006
defines Micro, Small, and Medium Enterprises (MSMEs) based on their
investment and annual turnover:
1.Micro enterprises
Investment in plant and machinery or equipment of up to Rs. 1 crore and a
turnover of up to Rs. 5 crore
2.Small enterprises
Investment in plant and machinery or equipment of up to Rs. 10 crore and a
turnover of up to Rs. 50 crore
3.Medium enterprises
Investment in plant and machinery or equipment of up to Rs. 50 crore and a
turnover of up to Rs. 250 crores
The role of small business in rural India are as follows:
1. Non-farm employment: Traditionally rural households in India were
exclusively engaged in agriculture. But now rural households have varied and
multiple sources of income through non-agricultural activities along with
traditional rural activities.
2. Employment for artisans: Cottage and rural industries play an important role
in providing employment opportunities in the rural areas, especially for the
traditional artisans and weaker sections of society.
3. Prevention of migration: Development of rural and village industries can also
prevent migration of rural population to urban areas in search of employment.as
they get job opportunities around them.
4. Poverty alleviation: Small businesses are addressing the problem of poverty
and unemployment by acting as producer of consumer goods and absorbers of
surplus labour in rural areas.
Government Assistance to small business units- NSIC,DIC, GIDC (National
and Goa state government schemes)
some government assistance schemes for small business units in Goa and India:
1.National Small Industries Corporation (NSIC): Offers marketing assistance
and budgetary support for organizing marketing events and campaigns. The
amount of assistance depends on the class of city and whether the event is in a
rural area.
2.Directorate of Industries, Trade & Commerce (DITC): Gives special
treatment to micro and small enterprises in government tenders. This includes
allowing them to match the lowest tender price of non-small-scale units if their
price is within 15% of the non-micro and small enterprise's price.
3.GIDC: The Goa Industrial Development Corporation (GIDC) is a
government agency in the Indian state of Goa, responsible for the planning,
development, and promotion of industrial estates and infrastructure within the
state. GIDC facilitates the establishment of industries by providing them with
land, water, electricity, and other necessary resources. Its goal is to promote
industrial growth, create employment opportunities, and attract investments to
enhance the state's economy. The GIDC is involved in creating industrial parks
and estates that help businesses set up operations in a well-organized
environment.
4.Goa Invest: Goa Invest is a government initiative designed to promote
investment in the state of Goa, particularly in sectors such as manufacturing,
tourism, infrastructure, and services. The scheme aims to attract both domestic
and international investments by offering various incentives and benefits to
investors. It serves as a platform to support businesses and industries by
facilitating easy access to government resources, providing necessary approvals,
and offering financial assistance, tax breaks, and subsidies to encourage industrial
development in the state.
5.Solar Power Subsidy Scheme: Reimburses 10% of the capital cost of installing
a solar power generation unit for businesses that run entirely on solar energy. The
maximum subsidy is INR 50 lakh.
6.EDC - GOA: Offers a personal loan scheme to provide financial assistance for
personal expenses, social commitments, and purchasing a new vehicle for
personal use.
Entrepreneur
The entrepreneur is defined as anyone who has the will and determination to start
a new company and deals with all the risks that go with it. The entrepreneurs are
a source of new ideas or innovators, and bring new ideas in the market by
replacing old with an invention.
Characteristics of an entrepreneur
1.Ability to take a risk- Starting any new venture involves a great risk.
Therefore, an entrepreneur needs to be courageous and able to evaluate and take
risks, which is an essential part of being an entrepreneur.
2.Innovation- It should be highly innovative to generate new ideas, start a
company and earn profits out of it. Change can be the launching of a new product
that is new to the market or a process that does the same thing but in a more
efficient and economical way.
3.Visionary and Leadership quality- To be successful, the entrepreneur should
have a clear vision of his new venture. However, to turn the idea into reality, a lot
of resources and employees are required.
4.Open-Minded- In a business, every circumstance can be an opportunity and
used for the benefit of a company. For example, Paytm recognised the gravity of
demonetization and acknowledged the need for online transactions would be
more, so it utilised the situation and expanded massively during this time.
Start-up India Scheme & Ways to fund Start up
The Startup India scheme is a government initiative that supports startups in India
through funding and policies. The scheme aims to create an ecosystem that
encourages innovation and entrepreneurship, and to provide opportunities for the
public and private sectors.
The Startup India schemes:
1.Startup India Seed Fund Scheme (SISFS)
Provides financial assistance to startups for various stages of development,
including prototype creation, market entry, and commercialization. Eligible
startups can apply on the Startup India portal.
2.Atal Innovation Mission (AIM)
A government-led initiative that aims to promote innovation and
entrepreneurship. AIM grants up to Rs 10 crore over five years to startups in
sectors like health, education, agriculture, and transportation.
Ways to fund Start up
1.Investments from Close Networks
This is one of the most common and initial sources of funding for many
entrepreneurs. It involves raising capital from family, friends, and acquaintances.
The key features include:
• Advantages: The process is usually quicker and less formal than other
funding options. The investors are often more willing to take risks and may
offer favorable terms.
• Challenges: This could strain personal relationships if the business fails.
Moreover, close network investments may not be sufficient for scaling a
business.
2. Angel Investors
Angel investors are typically high-net-worth individuals who provide capital to
early-stage startups in exchange for equity or convertible debt.
• Advantages: They often bring valuable business expertise, mentorship,
and networking opportunities, in addition to funding. They tend to invest
in the early stages of a business.
• Challenges: In exchange for funding, angel investors generally seek equity
in the company, which dilutes the founder’s control. Their involvement
might also mean greater scrutiny and oversight in business decisions.
3. Venture Capitalists (VCs)
Venture capitalists are professional investors or firms that provide funding to
startups that have high growth potential, typically in exchange for equity and a
stake in company ownership.
• Advantages: VCs can offer substantial funding to scale a business, along
with access to industry expertise, networks, and resources.
• Challenges: In return for the capital, VCs demand significant equity, and
they may influence business decisions to ensure growth and maximize
returns. They typically expect rapid growth and often prefer businesses
with proven traction in the market.
4. Bank Loans
Bank loans involve borrowing funds from traditional banks or financial
institutions, often requiring collateral or a personal guarantee.
• Advantages: Unlike equity-based funding, taking a loan doesn’t require
giving up ownership or control of the business.
 • Challenges: Banks typically have strict lending criteria and may require a
solid credit history or collateral. Startups may find it difficult to secure
loans due to lack of established revenue or assets. The interest burden can
be heavy, and repayment terms are usually rigid.

Make in India

Meaning:
"Make in India" is an initiative launched by the Indian government in 2014 to
encourage domestic and foreign companies to manufacture products in India. The
goal is to boost the country's manufacturing sector, create jobs, and transform
India into a global manufacturing hub. It focuses on improving infrastructure,
ease of doing business, and attracting foreign direct investment (FDI).

Skill India

Meaning:
"Skill India" is a campaign launched by the Indian government in 2015 to
empower the youth of India by providing them with skills training in various
sectors. The initiative aims to enhance employability, bridge the skill gap, and
create a workforce that is equipped to meet industry demands. It involves various
programs like Skill Development Centers and partnerships with industry leaders.