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The document outlines a series of experiments aimed at developing entrepreneurial skills, including creating a profile summary of a successful entrepreneur, generating business ideas, and conducting self-assessments. It emphasizes the importance of understanding entrepreneurial traits and gathering information on funding and feasibility for starting a business. Additionally, it includes a case study on Mark Zuckerberg's journey with Facebook, highlighting key milestones and challenges faced in his entrepreneurial path.

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0% found this document useful (0 votes)
2 views

EDE Manual Updated[1] Removed Removed - Copy

The document outlines a series of experiments aimed at developing entrepreneurial skills, including creating a profile summary of a successful entrepreneur, generating business ideas, and conducting self-assessments. It emphasizes the importance of understanding entrepreneurial traits and gathering information on funding and feasibility for starting a business. Additionally, it includes a case study on Mark Zuckerberg's journey with Facebook, highlighting key milestones and challenges faced in his entrepreneurial path.

Uploaded by

samarthspam72
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 26

Dated

Date of Date of Assess Sign of


Sr. Page
Title of Experiment Performa Submissi ment teacher
N No
nce on Marks with
o
Remark
Submit a profile summary about (500 words) of a
1 successful entrepreneur indicating milestone 5
achievements.
Generate business ideas (product/service) for
2
entrepreneurial and entrepreneurial opportunities 10
through brainstorming.
Undertake self-assessment test to discover your
3 entrepreneurial traits. 12
Visit a bank/financial institution to enquire about
4 various funding schemes for small-scale enterprise. 18
Collect loan application forms of nationalise
5 banks/other financial institutions. 21
Compile the information from financial agencies that
6 will help you set up your business enterprise. 24
Compile the information from the government agencies
7 that will help you set up your business enterprise. 27
Prepare technological feasibility report of a chosen
product/service. 32
8

Prepare financial feasibility report of a chosen


9 product/service. 37
Prepare a set of short term, medium and long term goals
10 for starting a chosen small scale enterprise 42
Prepare marketing strategy for your chosen
11 45
product/service
Prepare a business plan for your chosen small-scale
12 enterprise 49
Experiment No.: 1
Title: Submit a profile summary about (500 words) of a successful entrepreneur indicating
milestone achievements.

EQUIPMENTS: Computer system with Microsoft MS - Word

THEORY:

‘I'm just lucky to be alive." Mark Zuckerberg, the 22-year-old founder and CEO of social-
networking site Facebook, is talking about the time he came face-to face with the barrel of a gun. It was
the spring of 2005, and he was driving from Palo Alto to Berkeley. Just a few hours earlier, he had
signed documents that secured a heady $12.7million in venture capital to finance his fledgling business.
It was a coming-of-age moment, and he was on his way to celebrate with friends in the East Bay. But
things turned weird when he pulled off the road for Zuckerberg got out of the car to fill the tank, a man
appeared from the shadows, waving a gun and ranting. "He didn't say what he wanted," Zuckerberg says.
"I figured he was on drugs." Keeping his eyes down, Zuckerberg said nothing, got back into his car, and
drove off, unscathed. Today; it is an episode that he talks about only reluctantly. (A former employee
spilled the beans.) But it fits the road he has taken--an adventure with unexpected, sometimes harrowing,
moments that has turned out better than anyone might have predicted. Zuckerberg's life so far is like a
movie script. A super smart kid invents attach phenomenon while attending an Ivy League school--let's
say, Harvard--and launches it to rave reviews. Big shots circle his dorm to make his acquaintance; he
drops out of college to grow his baby and Change the World as We Know It. Success Stories | 6. Mark
Zuckerberg - CEO, Facebook
42Just three years in, what started as a networking site for college students has become a go-to tool for
19 million registered users, including employee’s government agencies and Fortune 500 companies.
More than half of the user visit every day. When a poorly explained new feature brought howls of
protests from users--some 700,000--the media old and new jumped to cover the backlash. But Facebook
emerged stronger than ever. According to com Score Media Metrix, which tracks Web activity, it is now
the sixth most-trafficked site in the United States -- 1% of all Internet time is spent on Facebook.
Commodore also rates it the number-one photo-sharing site on the Web, with 6 million pictures up daily.
And it is starting to compete with Google and other tech titans as a destination for top young engineering
talent in Silicon Valley. Debra Ahoy Williamson, a senior analyst at marketer, says it is on track to bring
in $100million in revenue this year--serious money indeed. Yet there is an undercurrent of controversy
about whether Mark Zuckerberg is making the right decisions about the juggernaut he has created. Late
last year, a blog called TechCrunch posted documents said to be a part of an internal valuation of
Facebook by Yahoo. The documents projected that Facebook would generate $969 million in revenue,
with 48 million users, by 2010. The New York Times and others reported that Yahoo had made a $1
billion offer to buy Facebook -- and Zuckerberg and his partners had turned it down. This followed an
earlier rumor of a $750 million offer from Viacom. Yahoo, Viacom, and Facebook would not comment
on the deal talk (and they still won't).But Silicon Valley has been abuzz ever since.
"It's all been very interesting," deadpans Zuckerberg, sitting in a conference room in Facebook's
Palo Alto headquarters. He looks every bit the geek in his zippered brown sweatshirt, baggy khakis, and
Adidas sandals. He came into the room eating breakfast cereal from a paper bowl with a plastic spoon.
He slaves in a rented apartment, with a matter chairs and a table for furniture. ("I cooked dinner for a
girlfriend once," he admits at one point. "It didn't work well.") He walks or bikes to the office every day.

Zuckerberg's college-kid style reinforces the doubts of those who see the decision to keep
Facebook independent as a lapse in judgment. In less the reigning Web 2.0 titans have sold out to major
corporations: My Space accepted $580million to join News Corp., and YouTube took $1.5billion from
Google. Surely any smart entrepreneur would jump at a chance to piggyback on those deals. Looming
over the Facebook talk is the specter of Friendster, the first significant social-networking site. It
reportedly turned down a chance to sell out to Google in 2002 for $30 million which if paid in stock,
would be worth about $1billion today. Now Friendster is struggling in the Web-o-sphere, having been
swiftly eclipsed by the next generate of sites. The same thing could happen to Facebook. New social-
networking sites are popping up every day. Cisco

bought Five Across, which sells a software platform for social networking to corporate clients.
Microsoft is beta-testing a site named Wallop. Even Reuters is planning to launch its own online
face book, targeting fund managers and traders. So is Zuckerberg being greedy--holding out for a bigger
money buyout? If so, will that come back to haunt him? If not, what exactly is his game plan?
Zuckerberg’s answer is that he's playing a different kind of game. "I'm here to build something for the
long term," he says. "Anything else is a distraction." Hand his compatriots at the helm of the company-
-cofounder and VP of engineering Dustin Moskovitz, 22, his roommate at Harvard, and chief technology
officer Adam Angelo, 23, whom he met in prep school--are true believers. Their faith: that the openness,
collaboration, and sharing of information epitomized by social networking can make the world work
better. You might think they were naive, except that they're so damn smart and have succeeded in a way
most people never do. From a ragtag operation run out of sublet crash pads in Palo Alto, they now have
two buildings (soon to be three) of cool gray offices and employ 200 people who enjoy competitive
salaries and grown-up benefit packages--not to mention three catered meals a day with free laundry and
dry cleaning thrown in. And they continue to crank out improvements to a Web site that is in every
meaningful way a technological marvel. So how does Facebook make its money? Advertising and
sponsorships, mostly. Apple was an early backer, sponsoring a site for iTunes enthusiasts. JPMorgan
Chase and Southwest, among others, pay for similar programs.
"Flyers," the online version of the paper ads that students use to publicize events, also provide a
very modest source of revenue. And there is a nascent-but growing local advertising business. The big money,
though, comes from an adplacementalliance with Microsoft in which the software giant will place banner ads
on the site through 2011.It mirrors a deal My Space inked with Google last year. (My Space reportedly got
$900 million over three years. Facebook hasn't released the value of its program, and neither party will comment
on the terms.) Facebook also just inked a deal with Comcast to create and Webcast episodic show based on user
generated video content. Called "Facebook Diaries," the series will be shown on both Facebook andZiddio.com,
Comcast's video-uploading site, as well as through Comcast's video on-demand service.

"The people who understand the power are the users. The people who wanted the company
don't understand the power and don't want to pay enough for it. So we’re not going to sell. “He adds, "I
think the My Space sale was a giant mistake. The Flickr sale to Yahoo--a giant mistake." A better idea,
he believes, is to focus on the technology, which he says is the Facebook team's great strength, and
continue to grow the company. He points to a laundry list of benchmarks that they'd all like to see. "Can
we get to 35 million users this year?" Dominating another sector beyond the college crowd would be
key. "If we were to see that in the high school space, that would be very significant. “But Thiel is aware
of a ticking clock of sorts, determined by a Securities and Exchange Commission rule. "Once we get to
500 shareholders, we'll be forced into a situation where you have to give full financial disclosure," he
says. (Facebook employees have shares as part of their compensation packages.) Most companies that’s
where the hacking episode occurred. Harvard didn't offer a student directory with photos and basic
information, known at most schools as a face book. Zuckerberg wanted to build an online version for
Harvard, but the school "kept on saying that there were all these reasons why they couldn't aggregate
this information," he says.
"I just wanted to show that it could be done." So one night early in his sophomore year, he hacked into
Harvard's student records. He then threw up a basic site called Face mash, which randomly paired photos
of undergraduates and invited visitors to determine which one was "hotter" (not unlike the Web site Hot
or Not). Four hours, 450 visitors, and 22,000 photo views later, Harvard yanked Zuckerberg's Internet
connection. After a dressing-down from the administration and uproar on campus

chronicled by The Harvard Crimson, Zuckerberg politely apologized to his fellow students. But he
remained convinced he'd done the right thing: "I thought that the information should be available."
(Harvard declined to comment on the episode.)Ultimately, Zuckerberg did an end run around the
administration. He set up the Facebook template and let students fill in their own information. The new
project consumed so much of his time that by the end of the first semester, with just two days to go
before his art-history final, he was in a serious jam: He needed to be able to discuss 500 images from
the Augustan period.

"This isn't the kind of thing where you can just go in and figure out how to do it, like calculus or
math," he says, without a trace of irony. "You actually have to learn these things ahead of time." So he
pulled a Tom Sawyer: He built a Web site with one image per page and a place for comments. Then he
emailed members of his class and invited them to share their notes, like a study group on cyber steroids.
"Within two hours, all the images were populated with notes," he says. "I did very well in that class. We
all did.Thefacebook.com, as it was originally called, launched on February 4, 2004.Within two weeks,
half the Harvard student body had signed up. Before long, it was up to two-third go public at that point.
"But our current bias is not to do it any sooner. “What seems most likely is some version of a publicly
traded Facebook, one that might emulate the quirky Dutch-auction IPO that Google filed in 2004. It
seems like a natural fit; Facebook admires the minimalist sensibilities of Google's design, its focus on
engineering, and the "do no evil" philosophy that, theoretically, at least, informs its business. Best of all,
if handled properly, an IPO keeps the founders firmly at the helm, just like Sergey Bring and Larry Page
at Google. And an IPO would seem to be a good fit for Ameritech Capital Partners, which participated
in the last round of financing for Facebook a year ago.
"Certainly most of our companies go through liquidity in the public markets," says Ameritech
founder Paul Madera. "Public markets seem to want to pay more than acquirers these days. “If Facebook
got a very large offer, they'd have to consider it, he says. "But today, any offer around a billion would
be way low." But Zuckerberg maintains that nothing is happening quickly. "It's a really big change if
you go public--all the regulations and stuff, so it's not something that you do lightly. “For now, the
company is on track to double its engineering team of 50 this year (check out the first step in the
application process atfacebook.com/jobs puzzles) as well as its 50-person customer-service group,
headed by Tom Enable, who ran global service operations for Palm and customer service for
walmart.com and MCI. His reps are mostly from top-shelf universities. (By my estimate, there's $5
million worth of tuition handling customer service at Facebook.)

New users keep flooding on board--100,000 signed on in a single day this past February. The college
markets in Canada and the UK have been growing almost 30% a month (Prince Harry and his girlfriend
are Facebook users, according to breathless reports in the British tabloids), and nearly 28% of all users
are now outside the United States. And slowly but surely, the site is adding older folks: 3 million users
are age 25 to 34, 380,000 are 35 to 44, and a pioneering 100,000 users are currently eligible for Medicare.
With stats like that, you can certainly see public-market investors Thirty-six months ago; Zuckerberg
was a college sophomore cruising out to California on summer break. Now he approves everything from
new hires to the activities of every advertising partner and runs the board meetings of a very-much
established company. Zuckerberg was even invited to speak at Davos this year. How did it go? "It was
great," he says, leaning forward conspiratorially.

Conclusion: We prepared a profile summary (about 500 words) of a successful entrepreneur indicating
milestone achievements.

Marks obtained Dated sign. Of Teacher


Process Related(10) Product Related(15) Total(25)
Experiment No. : 3
Title: Undertake self-assessment test to discover your entrepreneurial traits.

Apparatus: Computer system with Microsoft MS - Word

THEORY:

Entrepreneurial Self-assessment & Development


Step One –
The following list of traits are often found in “model entrepreneurs.” Rate yourself on this scale from
1 to 5 where 1 means the trait is weak for you, and 5 is strong.

If you have answered honestly1, and if your score is higher than 60 you are probably similar in many
ways to the “model entrepreneur.” A score lower than 60 does not mean that you should not attempt
to start a business. Many people who do not score high on assessments such as this are able to start
very successful businesses. One key to such success (regardless) of your score, is identifying “weakest
traits” (those traits listed above which have the lowest scores) and then implementing an improvement
approach2. However, before an improvement approach can be implemented it must be developed.
Congratulations on completing step one. Now, steps two through five will help you identify
improvement
approaches.
However, you may want to be aware from the start that if your lowest scores are towards the top of
the columns (above), then achieving significant improvement or finding an adequate compensation
approach may be very difficult – even more so if the traits happen to be towards the top of the left
column.
EIGHT STEPS
Entrepreneurial Self-assessment & Development
Here, steps two through five are addressed. Step two is simply a matter of listing the three traits
that you scored lowest on – these are the traits you will focus on either improving or finding a way to
compensate for. The means by which this is done is what we will term the Improvement
(compensation) approach and is written in step five. However, before going to step five take a moment
to write a goal (step two) and think of any constraining factors that must be taken into consideration (step four).
The goals you list in step three are simply a way of putting what you would like to achieve in
words. For example, if your listed trait is “patience,” you may write as your goal, “I will work on
improving my ability to exercise patience until my children notice a difference.” Well thought out
goals should incorporate some kind of assessment. Thus, simply writing, “I will improve patience”
would not be as effective because it is difficult to measure or know when you have done it. This
example is carried through steps four and five below.

Step Six –
Being accountable to another person will help you achieve your goal for improvement or
compensation of the selected traits. An informal, yet effective means of employing this principle of
accountability is simply to share what you plan to do with another person, and then update them on it
occasionally. (This concept is termed, ‘voluntary accountability.’) The more they know about your
goals (even your action steps) the better. They may even be willing to follow-up with you regularly.
The first requirement here is selecting someone with whom you have a close enough
relationship that they talk to you openly and frequently. Below list the names of a few such individuals,
then place a check in the applicable columns to the right of their names to determine who may be of
most help (those with more checks should be asked first). While only one confidant is necessary, the
more the better.
Step Seven –
For each of the weak traits, make a list of action steps that will lead you in your improvement
or compensation approach to achieve your goal. For each step “who” and “when” should be specified.
The first action step for each approach will probably be to talk with the person(s) listed in step six to
share your goals and plans!
These action steps should be listed directly on the scheduling tool you currently use. A
scheduling tool is a calendar, day-planner, etc. If you do not have your scheduling tool with you (or if
the only “tool” you currently, use is your memory) then these steps may be listed on a separate piece
of paper. They may later be transferred to your scheduling tool. The table below will help you list
action steps.
Step Eight –
The eighth step is critical. Can
you guess what it is? Simply
apply your action steps to
achieve your goals – in a word,
IMPLEMENT!

Conclusion: Studied self-assessment


test to discover your entrepreneurial
traits.

Marks obtained Dated sign. Of Teacher

Process Related(10) Product Related(15) Total(25)

Downloaded by mantasha Haque ([email protected])


Experiment No. : 4
Title: Visit a bank/financial institution to enquire about various funding schemes for small-scale
enterprise.

Apparatus: Computer system with Microsoft MS - Word

Theory:
India was recently termed as the only, truly emerging market in the world at the moment. A part
of this growth is fueled by the micro, small and medium enterprises of the country. The SME sector
contributes over 40% of the total GDP and remains a critical source of employment for the India’s
growing population. Recognizing the importance of SME growth in the post-demonetization era, the
government has started some new business loan schemes and boosted other existing ones. Here are the
top five business loan schemes from the government of India that you can avail for small business
finance.
MSME Business Loans in 59 Minutes
Perhaps the most talked about business loan scheme right now is the ‘MSME Business Loans
in 59 Minutes’, a scheme first announced in September 2018. The loans under this scheme are given
for financial assistance and encouragement of MSME growth in the country. Both new and existing
business can utilize the scheme for a financial assistance up to ₹ 1 crore. The actual process takes 8-12
days to complete, while the approval or disapproval is granted within the first 59 minutes of application.
It is a refinancing scheme, wherein five authorized public sector banks will grant the funds. The interest
rate depends on the nature of your business and credit rating. No information has been given on
subsidizing the principal amount or interest subvention.
To apply for business loan under this scheme, you need GST verifications, Income Tax verifications,
bank account statements for the last 6-months, ownership related documentation, and KYC details.
More information on application and approvals can be sought by visiting the SIDBI portal for this
business loan.
MUDRA Loans
Micro-units Development and Refinance Agency (MUDRA) is an organisation established by the
government of India to provide business finance to micro-business units. The loans under the scheme
are given on the pretext of ‘funding the unfunded’. Since small companies and startups are often left to
their own devices for financing their venture, the government has created the concept of low-cost credit
to such undertakings. MUDRA Loans are also a refinanced business loans, approved and disbursed
through public sector banks, private sector banks, co-operative societies, small banks, scheduled
commercial banks and rural banks that come under the scheme. The loans are generally given to micro
or small businesses operating in the manufacturing, trading and services sector. The MUDRA
Loans are structured as under,

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 Sishu Loans up to Rs. 50,000/-
 Kishor Loans up to Rs. 5,00,000/-
 Tarun Loans up to Rs. 10,00,000/-

Credit Guarantee Fund Scheme for Micro and Small Enterprises


The CGMSE was first launched in the year 2000 as a monetary support scheme for micro and small
enterprises. It offers collateral-free credit for both new and existing business units that satisfy its
eligibility criteria. The scheme provides working capital loans up to ₹ 10 lakhs without any collateral.
However, for all credit facilities above ₹ 10 lakhs and up to ₹ 1 crore only primary security or mortgage
of land and building associated with the building is obtained and such eligible accounts are covered
under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Asset created through
the credit facility which are associated with the business unit are also considered as security when the
loan amount exceeds ₹ 10 lakhs.
The business loans under this scheme are financed by various public and private sector banks covered
under the scheme.
National Small Industries Corporation Subsidy
The NSIC subsidy for small businesses offers two kinds of financial benefits – Raw Material Assistance
and Marketing Assistance. Under the raw material assistance scheme of NSIC, both indigenous and
imported raw materials are covered. Under the marketing support, funds are given to SMEs for
enhancing their competitiveness and the market value of their products and services. The NSIC is
mainly focused on funding small and medium enterprises who wish to improve / grow their
manufacturing quality and quantity.

Conclusion: Collected information about various funding schemes for small-scale enterprise.

Marks obtained Dated sign. Of Teacher

Process Related(10) Product Related(15) Total(25)

Downloaded by mantasha Haque ([email protected])


Experiment No. : 5
Title: Collect loan application forms of nationalize banks/other financial institutions.

Apparatus: Computer system with Microsoft MS - Word

Theory:
Visited different nationalize banks/other financial institutions to Collect loan application forms

Downloaded by mantasha Haque ([email protected])


Conclusion: Visited different nationalize banks/other financial institutions to Collect loan
application forms

Marks obtained Dated sign. Of Teacher

Process Related(10) Product Related(15) Total(25)

Downloaded by mantasha Haque ([email protected])


Experiment No. : 6

Title: Compile the information from financial agencies that will help you set up your business
enterprise.

Apparatus: Computer system with Microsoft MS - Word

Theory:

Small Business loans offered by financial Banks


Listed below are several financial lenders offering business loans and the key details of the small
business loans:

HDFC Bank Small Business Loan


Listed below are the key highlights of the HDFC Bank Small Business Loan:
 Loan amount up to Rs.40 lakh generally and Rs.50 lakh in select areas.
 Processing fee for the loan as low as 0.99% of the loan amount.
 Overdraft facility up to Rs.15 lakh.
 No requirement for a guarantor or collateral.
 Added bonus of a free life insurance policy.

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Bajaj Finserv Small Business Loan
Listed below are the key details of the Bajaj Finserv Small Business Loan:
 Attractive interest rate for loans up to Rs.30 lakh.
 Flexi-loan facility for payment of the interest and the principal amount.
 No requirement for a collateral.
 Loan approval within 24 hours.
 Online business loan statements.

Capital Float Small Business Loan


Listed below are the key details of the Capital Float Business Loan:
 Attractive interest rate for loans up to Rs.50 lakh.
 Flexible repayment tenures up to 36 months.
 No hidden costs
 Loan amount disbursal within 2-3 working days following approval.
 Online application process.

RBL Bank Small Business Loan


Listed below are the key details of the RBL Small Business Loan:
 Flexible loan tenures up to 84 months.
 Choice of secured and unsecured business loans.
 Quick and hassle-free documentation process.
 Attractive interest rates for loans up to 20 lakh.
 Residential or commercial properties can be used as collateral.



Eligibility for Small Business Loan
 Listed below are the general conditions for eligibility for a Small Business Loan set by
financial lenders”
 The applicant should be a resident of India.
 The applicant should be a self-employed individual with at least 3 years business experience.
 Should be a minimum of 21 years.
 Should provide proof of business turnover and IT returns of the last 2-3 financial years.
 Balance sheet of the business should show profitability.

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Documents Required for Small Business Loan
Listed below are the documents that Small Business loan applicants will have to submit for
verification:
 Proof of identity – Aadhaar card, Passport, Voter ID Card, etc.
 Proof of address – Passport, Utility bill, Voter ID card, etc.
 6 months’ bank statements.
 Business Income Tax Certificate, Balance sheet showing profits and loss of the last 2 years that
has been certified by a Chartered Accountant.
 Proof of business – establishment license, trade license, etc.
 Sole proprietor deed, partnership deed, etc.
 House property or commercial property documents – for secured business loans.

Conclusion: Compiled the information from financial agencies that will help to set up business
enterprise.

Marks obtained Dated sign. Of Teacher

Process Related(10) Product Related(15) Total(25)

Downloaded by mantasha Haque ([email protected])


Experiment No. :7
Title: Compile the information from the government agencies that will help you set up your
business enterprise.

Apparatus: Computer system with Microsoft MS - Word

Theory:

The Venture Capital Assistance Scheme


Ministry of Agriculture and Farmers Welfare
Venture Capital Assistance is financial support in the form of an interest free loan provided by SFAC
to qualifying projects to meet shortfall in the capital requirement for implementation of the project.
Benefits
Help in assisting agripreneurs to make investments in setting up agribusiness projects through
financial participation
Provides financial support for preparation of bankable Detailed Project Reports (DPRs) through
Project Development Facility (PDF).
Eligibility
 Farmers
 Producer Groups
 Partnership/Proprietary Firms
 Self Help Groups
 Companies
 Agripreneurs
 units in agriexport zones
 Agriculture graduates Individually or in groups for setting up agribusiness projects.

Application Procedure
One can only apply online, offline application forms will not be accepted. Also, below are the checklist
before applying for the scheme.

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Sno. Checklist

Promoter’s request letter addressed to the Managing


Director SFAC, New Delhi on original letterhead of
1 firm/company

Sanction letter of Sanctioning authority addressed to


2 recommending branch

Bank’s approved Appraisal/Process note bearing signature


of sanctioning authority with terms of sanction of term
3 loan

Up-to-date statement of account of Term loan and Cash


4 Credit (if sanctioned)

Equity Certificate:
a) C.A. certificate in case of Partnership or Proprietorship
firms.
b) Form-2(PAS-3), FORM-5(SH-7) and other documents in
5 lieu of FORM-23 filed with ROC for

Farmer’s list/backward linkage duly supported by


6 agreement

Affidavit of promoters that they have not availed VCA in


7 the past

Unsecured loans raised by the promoters (If any). CA


8 Certificate to be enclosed

9 Copy of last Bank's inspection report

Bank’s confirmation that they will not release primary &


10 collateral security without SFAC consent

Justification for margin on working capital taken in the


11 project cost

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List of Enclosures to be submitted along with the form

Sno. Enclosures

Promoter’s request letter addressed to the Managing


Director SFAC, New Delhi on original letterhead of
1 firm/company

Sanction letter of Sanctioning authority addressed to


2 recommending branch

Bank’s approved Appraisal/Process note bearing signature


of sanctioning authority with terms of sanction of term
3 loan

Up-to-date statement of account of Term loan and Cash


4 Credit (if sanctioned)

Equity Certificate: a)C.A. certificate in case of Partnership


or Proprietorship firms. b)Form-2(PAS-3), FORM-5(SH-7)
and other documents in lieu of FORM-23 filed with ROC
5 for Company

Farmer’s list/backward linkage duly supported by


6 agreement

Affidavit of promoters that they have not availed VCA in


7 the past

Unsecured loans raised by the promoters (If any). CA


8 Certificate to be enclosed

9 Copy of last Bank's inspection report

Bank’s confirmation that they will not release primary &


10 collateral security without SFAC consent

Justification for margin on working capital taken in the


11 project cost

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*Please keep scanned copies of the following documents ready (except for Point 3)

Support for International Patent Protection in Electronics and & Information Technology (SIP-EIT)
Ministry Of Electronics & Information Technology
SIP-EIT is a scheme to provide financial support to MSMEs and Technology Startup units for
international patent filing to encourage innovation and recognize the value and capabilities of global
IP along with capturing growth opportunities in ICTE sector.

Eligibility Criteria
1. The Applicant should be registered under the MSME Development Act 2006 of Government of
India as amended from time to time as a MSME unit as per the criteria for such registration(the
applicant would be required to furnish the proof of such registration).

2. The applicant should be a registered company under the Companies Act of Government of India
and should fulfill the investment limits in plant and machinery or equipment as defined in the MSME
Development Act 2006 of Government of India as amended from time to time(this criteria will be
ascertained from the proof of such registration and last audited balance sheet of the applicant)

3. The applicant should be a registered STP Unit and should fulfill the investment limits in plant
and machinery or equipment as defined in the MSME Development Act 2006 of Government of India
as amended from time to time(this criteria will be ascertained from the proof of such registration and
last audited balance sheet of the
applicant).
4. The applicant should be a technology incubation enterprise or a startup located in an incubation
centre/ park and registered as a company (a certification from the incubation centre/ park in this case
is mandatory) and should fulfill the investment limits in plant and machinery or equipment as defined
in the MSME Development Act 2006 of Government of India as amended from time to time(this
criteria will be ascertained from the proof of such registration and last audited balance sheet of the
applicant).

Procedure to Apply Online


The procedure to apply online under the scheme is as follows:
Step I) First of all, go through the brochure thoroughly, and make sure that you fall under the eligibility
criteria.
Step II) In order to apply, you need to create a Login ID, which would be used in further
communications.
Step III) After you have created your user account, you can Login and Apply Online for the Scheme.
Before proceeding to apply online, kindly make sure that you have read the Guidelines thoroughly and
also checked the List of documents to be uploaded during filling up of the online application form.

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List of Important Documents to Be Uploaded
1. Proof of registrations as per eligibility
criteria.

2. Scanned copy of Last Audited Balance


Sheet.
3. If applied for Waiver under Section 39 for international filing, then Scanned copy of
Official filing with Indian Patent office.
4. If international application already filed, then Proof of PCT/Paris convention or direct
international
filing.

5. If Applicant is an Employee or Member of Board of Directors, then it has to be substantiated


by a scanned copy of the Documentary proof.
6. Technical write up of Present Invention has to be given in *.pdf format filled as per the format.
Download format of technical write up.
7. Patent Search
Report

8. Scanned copy in*.pdf format of The Details for Transfer of e-Payments have to be duly filled
up as per the format. Download format of details for e-transfer of
payments
9. Scanned copy in *.pdf format of Declaration Form dully signed and sealed.
(Download Declaration Form).

Conclusion: Compiled the information from the government agencies that will help to set up
business enterprise.

Marks Obtained Dated Sign. of Teacher

Process Related (10) Product Related (15) Total (25)

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Experiment No. : 9
Title: Prepare financial feasibility report of a chosen product/service.

EQUIPMENTS: Computer system with Microsoft MS - Word

Theory:
What is a feasibility study? As the name implies, a feasibility study is used to determine the viability
of an idea, such as ensuring a project is legally and technically feasible as well as economically
justifiable. It tells us whether a project is worth the investment in some cases, a project may not be
doable. There can be many reasons for this, including requiring too many resources, which not only
prevents those resources from performing other tasks b ut also may cost more than an organization
would earn back by taking on a project that isn’t profitable.

A well-designed study should offer a historical background of the business or project, such as a
description of the product or service, accounting statements, details of operations and management,
marketing research and policies, financial data, legal requirements, and tax obligations. Generally,
such studies precede technical development and project implementation.

Five Areas of Project Feasibility

A feasibility study evaluates the project’s potential for success; therefore, perceived objectivity
is an important factor in the credibility of the study for potential investors and lending institutions.
There are five types of feasibility study separate areas that a feasibility study examines, described
below.

1. Technical Feasibility - this assessment focuses on the technical resources available to the
organization. It helps organizations determine whether the technical resources meet capacity and
whether the technical team is capable of converting the ideas into working systems. Technical
feasibility also involves evaluation of the hardware, software, and other technology requirements of
the proposed system. As an exaggerated example, an organization wouldn’ t want to try to put
Star Trek’s transporters in their building currently, this project is not technically feasible.

2. Economic Feasibility - this assessment typically involves a cost/ benefits analysis of the
project, helping organizations determine the viability, cost, and benefits associated with a

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project before financial resources are allocated. It also serves as an independent project assessment
and enhances project credibility helping decision makers determine the positive economic benefits to
the organization that the proposed project will provide.

3. Legal Feasibility - this assessment investigates whether any aspect of the proposed project conflicts
with legal requirements like zoning laws, data protection acts, or social media laws. Let’s say an
organization wants to construct a new office building in a specific location. A feasibility study might
reveal the organization’s ideal location isn’t zoned for that type of business. That organization
has just saved considerable time and effort by learning that their project was not feasible right
from the beginning.

4. Operational Feasibility - this assessment involves undertaking a study to analyze and


determine whether and how well the organization’s needs can be met by completing the project.
Operational feasibility studies also analyze how a project plan satisfies the requirements identified
in the requirements analysis phase of system development.

5. Scheduling Feasibility - this assessment is the most important for project success; after all, a
project will fail if not completed on time. In scheduling feasibility, an organization estimates
how much time the project will take to complete.

When these areas have all been examined, the feasibility study helps identify any constraints the
proposed project may face, including:

• Internal Project Constraints: Technical, Technology, Budget, Resource, etc.

• Internal Corporate Constraints: Financial, Marketing, Export, etc.

• External Constraints: Logistics, Environment, Laws and Regulations, etc.

Benefits of Conducting a Feasibility Study

The importance of a feasibility study is based on organizational desire to “get it right” before
committing resources, time, or budget. A feasibility study might uncover new ideas that could
completely change a project’s scope. It’s best to make these determinations in advance, rather
than to jump in and learning that the project just won’t work. Conducting a feasibility study is always
beneficial to the project as it gives you and other stakeholders a clear picture of the proposed
project.

Below are some key benefits of conducting a feasibility s

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• Improves project teams’ focus

• Identifies new opportunities

• Provides valuable information for a “go/no-go” decision

• Narrows the business alternatives

• Identifies a valid reason to undertake the project

• Enhances the success rate by evaluating multiple parameters

• Aids decision-making on the project

• Identifies reasons not to proceed

Overview

A feasibility study aims to objectively and rationally uncover the strengths and weaknesses of an
existing business or proposed venture, opportunities and threats present in the natural environment,
the resources required to carry through, and ultimately the prospects for success. In its simplest terms,
the two criteria to judge feasibility are cost required and value to be attained.
A well-designed feasibility study should provide a historical background of the business or project, a
description of the product or service, accounting statements, details of the
operations and management, marketing research and policies, financial data, legal requirements and
tax obligations. Generally, feasibility studies precede technical development and project
implementation.
A feasibility study evaluates the project's potential for success; therefore, perceived objectivity is an
important factor in the credibility of the study for potential investors and lending institutions. It must
therefore be conducted with an objective, unbiased approach to provide information upon which
decisions can be based

Formal definition
A project feasibility study is a comprehensive report that examines in detail the five frames of analysis
of a given project. It also takes into consideration its four Ps, its risks and POVs, and its constraints
(calendar, costs, and norms of quality). The goal is to determine whether the project should go ahead,
be redesigned, or else abandoned altogether
The five frames of analysis are: The frame of definition; the frame of contextual risks; the frame of
potentiality; the parametric frame; the frame of dominant and contingency strategies.
The four Ps are traditionally defined as Plan, Processes, People, and Power. The risks are considered
to be external to the project (e.g., weather conditions) and are divided in eight categories: (Plan)
financial and organizational (e.g., government structure for a private project); (Processes)
environmental and technological; (People) marketing and sociocultural; and (Power) legal and
political. POVs are Points of Vulnerability: they differ from risks in the sense that they are internal to
the project and can be controlled or else eliminated.

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objectively determined and measured along the entire project lifecycle. Depending on projects,
portions of the study may suffice to produce a feasibility study; smaller projects, for example, may not
require an exhaustive environmental assessment.

Feasibility factors
Resource feasibility
This involves questions such as how much time is available to build the new system, when it can be
built, whether it interferes with normal business operations, type and amount of resources required,
dependencies, and developmental procedures with company revenue prospectus.
Financial feasibility
In case of a new project, financial viability can be judged on the following parameters:
• Total estimated cost of the project
• Financing of the project in terms of its capital structure, debt to equity ratio and promoter's share
of total cost
• Existing investment by the promoter in any other business
• Projected cash flow and profitability
The financial viability of a project should provide the following information:
• Full details of the assets to be financed and how liquid those assets are.
• Rate of conversion to cash-liquidity (i.e., how easily the various assets can be converted to cash).
• Project's funding potential and repayment terms.
• Sensitivity in the repayments capability to the following factors:
• Mild slowing of sales.
• Acute reduction/slowing of sales.
• Small increase in cost.
• Large increase in cost.
• Adverse economic conditions.
In 1983 the first generation of the Computer Model for Feasibility Analysis and Reporting
(COMFAR), a computation tool for financial analysis of investments, was released. Since then, this
United Nations Industrial Development Organization (UNIDO) software has been developed to also
support the economic appraisal of projects. The COMFAR III Expert is intended as an aid in the
analysis of investment projects. The main module of the program accepts financial and economic data,
produces financial and economic statements and graphical displays and calculates measures of
performance. Supplementary modules assist in the analytical process. Cost-benefit and value-added
methods of economic analysis developed by UNIDO are included in the program and the methods of
major international development institutions are accommodated. The program is applicable for the
analysis of investment in new projects and expansion or rehabilitation of existing enterprises as, e.g.,
in the case of reprivatisation projects. For joint ventures, the financial perspective of each partner or
class of shareholder can be developed. Analysis can be performed under a variety of assumptions
concerning inflation, currency revaluation and price escalations.[

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Market research studies
This is one of the most important sections of the feasibility study as it examines the marketability of
the product or services and convinces readers that there is a potential market for the product or services
If a significant market for the product or services cannot be established, then there is no project.
Typically, market studies will assess the potential sales of the product, absorption and market capture
rates and the project's timing.
The feasibility study outputs the feasibility study report, a report detailing the evaluation criteria, the
study findings, and the recommendations.

Conclusion: Studied to Prepare financial feasibility report of a chosen product/service

Marks obtained Dated sign. Of Teacher

Process Related(10) Product Related(15) Total(25)

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