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Dr. R.A.N.M ARTS AND SCIENCE COLLEGE�Affiliated to Bharathiar University , � Accredited with “ B+” NAAC

Mrs.N.GEETHA M.Com(CA).,

Assistant Professor,

Department of Commerce (CA)

Course Name : Entrepreneurial Development

Welcome You All

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Entrepreneurial Development

Introduction:

Entrepreneurial Development Programme (EDP) refers to a programme which is formulated to assist the individuals in reinforcing their entrepreneurial motives and attaining competencies and skills which is essential for performing an entrepreneurial role successfully.

Definition:

"Entrepreneurship Development Programme is designed to help an individual in strengthening his entrepreneurial motive and in acquiring skills and capabilities necessary for playing his entrepreneurial role effectively. is necessary to promote this understanding of motives and their impact on entrepreneurial values and behavior for this purpose”.

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Objectives

1.To make people learn compliance with law.

2.To develop and fortify entrepreneurial quality, i.e., motivation or need for achievement.

3.To develop small and medium scale enterprises in order to generate employment and widen the scope of industrial ownership.

4.To industrialize rural and backward sections of the society.

5.To understand the merits and demerits of becoming an entrepreneur.

6.To investigate the environmental set-up relating to small industries and small businesses.

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Phases of EDP

1) Pre-Training Phase 

2) Training Phase

3) Post-Training Phase

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Importance

  • Formation of Employment Opportunities
  • Provides Adequate Capital
  • Proper Utilization of Local Resources
  • Increased Per Capital Income
  • Improved Standard of Living
  • Economic Independence
  • Preventing Industrial Slums
  • Reducing Social Tension
  • Facilitating Overall Development

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Women Entrepreneurship

Once the government on its part realized the need for empowerment of women, it started coming out with a number of schemes, to provide for greater access to capital, so that they could startup units. Some institutions like National Alliance of Young Entrepreneurs (NAYE) assess women in starting-up, identifying good investment opportunities and raising capital more easily. Commercial banks also have women entrepreneur sections, where financial assistance is provided.

In fact, schemes under the IDBI bank called ‘Mahila Udhyam Nidhi’ and ‘Mahila Vikas Nidhi’ help women entrepreneurs with equity assistance. Established in the early 1990s, ‘Ashriya Mahila Kosh’ trains and provides orientation programmes for women. With their help, women have been able to triple their income.

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Rural Entrepreneurship

Rural entrepreneurship has arisen as a dynamic concept. It is generally defined as entrepreneurship emerging at village level which can take place in a variety of fields of attempt such as commercial, manufacturing, agriculture and acts as an effective factor for economic development.

“Entrepreneurship development at village level which can take place in a variety of fields of enterprise such as business, industry, agriculture and acts as a powerful factor for economic development can be defined as Rural Entrepreneurship.”

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The Start - Up Process

Project startup is a very short phase of the project management cycle. It is a transition step between project planning and execution. While it is a short step, important events occur, including: Baselining of the project plan with management sign-off.

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Project identification

Project identification is a process in the initiating phase of project life cycle for identifying a need, problem, or opportunity.

Once identified, a project is initially documented objectively defining what was identified. This identification can be the result of an organization's strategic planning, of a company's normal operations, as the response to an unexpected event, or to a need.

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Factors to Consider in Product Selection

  • Supply-gap
  • Fund
  • Availability of and Access to Raw Materials
  • Technical Implications
  • Profitability/Marketability
  • Availability of Qualified Personnel
  • Government Policies
  • Government objectives

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Project Formulation

A process is a collection of interrelated actions and activities that take place in order to achieve a set of previously specified products, results or services. The project team is in charge of executing the formulation, evaluation and project management processes. The processes (tasks and activities) have clear dependencies and are done following the same sequence in each project. They are independent from the area of application approaches. These groups of processes consider the multidimensional nature of formulation, evaluation and project management.

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The Best Project Evaluation Methods

Return on Investment (ROI)

Cost-Benefit Analysis (CBA)

Net Present Value (NPV)

Internal Rate of Return (IRR)

The Payback Period

Benefit-Cost Ratio (BCR)

Risk-Adjusted Discount Rate (RADR)

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Four Factors Included in a Feasibility Analysis

  • Operational feasibility
  • Technical feasibility
  • Schedule Feasibility
  • Economic Feasibility

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Types of Feasibility Analysis

  • Financial feasibility
  • Commercial feasibility
  • Technical feasibility
  • Economic feasibility
  • Social feasibility
  • Environmental feasibility
  • Legal feasibility
  • Operational feasibility
  • Schedule feasibility
  • Market feasibility
  • Resource feasibility

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Institutional service to Entrepreneurs

Services like financing, technical guidance, equipment support, training, marketing and providing subsidy and grants are supported by several institutions. These institutions provide financial support to promote and develop small industries and entrepreneurs.

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Role of District Industries Centres (DICs)

  • Provide assistance for DIC programmes
  • Single window clearance system
  • Promote industries in rural areas
  • Provide employment to people in both rural and urban areas

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Functions of District Industries Centres (DICs)

  • Preparation of industrial profile of the district 
  • Assist entrepreneurs in obtaining licenses
  • Acting as the focal point of industrialization of the district 
  • Opportunity guidance of entrepreneurs
  • Manpower assessment concerning skilled, semi-skilled labour
  • Identify infrastructure facilities
  • Prepare techno-economic feasibility report 

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Functions

The main functions of SIDO are:

  • Co-ordination
  • Industrial development
  • Extension

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Types of NSIC Schemes

Single Point Registration Scheme

The aim of implementing the scheme was to augment government purchases from MSMEs.

Raw material assistance scheme

The raw material assistance scheme is meant to help the industry by financing raw material purchases for products from local and global markets. This also enables the MSMEs to focus their attention on manufacturing products of pristine quality.

MSME Global Mart

A B2B portal under NSIC, this was started to provide not only technology but also financial help at prices that seem reasonable to the industry.

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Major Focus

  • To create a vibrant local innovation ecosystem.
  • Start-up supporting mechanism in HEIs.
  • Prepare institute for Atal Ranking of institutions on innovation achievements framework.
  • Establish function ecosystem for scouting ideas and pre-incubation of ideas.
  • Develop better cognitive ability among students.

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State Finance Corporations (SFCs)

The State Finance Corporations (SFCs) are an integral part of institutional finance structure of a country. Where SEC promotes small and medium industries of the states. Besides, SFC helps in ensuring balanced regional development, higher investment, more employment generation and broad ownership of various industries.

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Functions of ICICI

  • It provides long-term and medium-term loans in rupees and foreign currencies.
  •  It underwrites new issues of shares and debentures.
  • It guarantees loans raised by private concerns from other sources.
  •  It provides technical, managerial and administrative assistance to industrial concerns

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Seed Capital Assisstance

Seed capital is an early-stage investment made to a startup or small business to help it get started. This funding is usually provided by angel investors, venture capitalists, or other investors who are willing to take a risk on a new idea or concept.

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THANK YOU