Just For Starters: How To Become A Successful Businessman? (3rd Revised Edition)
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Author: NPCS Board |
Entrepreneurship is one of the critical decisions to be made and it involves number of risk and has its own advantages also. But the charm of being a master of you is always above any other form of work. Setting up a business requires many things. Understanding yourself, understanding market, availing funds are certain basic things that one must mandatorily know before making a business decision. In fact before starting a business also one has to be thorough with the requirements of current line of industry. Above all taking advantage of various schemes provided by government and other financial institutions. Everyone wants to do something that gives them chance to earn more money and it is possible by becoming an entrepreneur. Starting your own business is one of the few remaining paths to wealth. To start you own venture you have to decide on many things. Making a choice of the right project is a difficult decision for an entrepreneur and is an imperative decision. For the reason that rest of the challenges for setting up a business is based on the type of the product and fund to invest. But it is a perception that for owning a business you should have handsome amount of money. Now it is possible with small scale business.
Startup India Stand up
Our Prime Minister unveiled a 19-point action plan for start-up enterprises in India. Highlighting the importance of the Standup India Scheme, Hon’ble Prime minister said that the job seeker has to become a job creator. Prime Minister announced that the initiative envisages loans to at least two aspiring entrepreneurs from the Scheduled Castes, Scheduled Tribes, and Women categories. It was also announced that the loan shall be in the ten lakh to one crore rupee range.
A startup India hub will be created as a single point of contact for the entire startup ecosystem to enable knowledge exchange and access to funding. Startup India campaign is based on an action plan aimed at promoting bank financing for start-up ventures to boost entrepreneurship and encourage startups with jobs creation.
Startup India is a flagship initiative of the Government of India, intended to build a strong ecosystem for nurturing innovation and Startups in the country. This will drive sustainable economic growth and generate large scale employment opportunities. The Government, through this initiative aims to empower Startups to grow through innovation and design.
What is Startup India offering to the Entrepreneurs?
Stand up India backed up by Department of Financial Services (DFS) intents to bring up Women and SC/ST entrepreneurs. They have planned to support 2.5 lakh borrowers with Bank loans (with at least 2 borrowers in both the category per branch) which can be returned up to seven years.
PM announced that “There will be no income tax on startups’ profits for three years”
PM plans to reduce the involvement of state government in the startups so that entrepreneurs can enjoy freedom.
No tax would be charged on any startup up to three years from the day of its establishment once it has been approved by Incubator.
The book is an attempt to provide certain basic knowledge for starters. Starting a small scale enterprise requires understanding steps in setting up an SSI, Registration/Licenses for SSI(Small Scale Industry), Resourcing, Technical Know How and so on the book has chapters on the concerned subject for better understanding of a starter. Various Policies and programmes for rural development, Prime Minister Rozgar Yozna, rural women entrepreneurship in India, bright prospects, industrial innovations by small and medium sized enterprises, Indian small industry, organisation, supporting entrepreneurship, development in India etc are also the subject matter of the book. Every chapter has several other sub chapters making the topic clear and better to understand. In the end of the book a directory section is enclosed containing Industries Department addresses, Service Institutes, Branch Institutes, and Extension Centres in various Indian States.
Startup India Stand up
Our Prime Minister unveiled a 19-point action plan for start-up enterprises in India. Highlighting the importance of the Standup India Scheme, Hon’ble Prime minister said that the job seeker has to become a job creator. Prime Minister announced that the initiative envisages loans to at least two aspiring entrepreneurs from the Scheduled Castes, Scheduled Tribes, and Women categories. It was also announced that the loan shall be in the ten lakh to one crore rupee range.
A startup India hub will be created as a single point of contact for the entire startup ecosystem to enable knowledge exchange and access to funding. Startup India campaign is based on an action plan aimed at promoting bank financing for start-up ventures to boost entrepreneurship and encourage startups with jobs creation.
Startup India is a flagship initiative of the Government of India, intended to build a strong ecosystem for nurturing innovation and Startups in the country. This will drive sustainable economic growth and generate large scale employment opportunities. The Government, through this initiative aims to empower Startups to grow through innovation and design.
What is Startup India offering to the Entrepreneurs?
Stand up India backed up by Department of Financial Services (DFS) intents to bring up Women and SC/ST entrepreneurs. They have planned to support 2.5 lakh borrowers with Bank loans (with at least 2 borrowers in both the category per branch) which can be returned up to seven years.
PM announced that “There will be no income tax on startups’ profits for three years”
PM plans to reduce the involvement of state government in the startups so that entrepreneurs can enjoy freedom.
No tax would be charged on any startup up to three years from the day of its establishment once it has been approved by Incubator.
The book is an attempt to provide certain basic knowledge for starters. Starting a small scale enterprise requires understanding steps in setting up an SSI, Registration/Licenses for SSI(Small Scale Industry), Resourcing, Technical Know How and so on the book has chapters on the concerned subject for better understanding of a starter. Various Policies and programmes for rural development, Prime Minister Rozgar Yozna, rural women entrepreneurship in India, bright prospects, industrial innovations by small and medium sized enterprises, Indian small industry, organisation, supporting entrepreneurship, development in India etc are also the subject matter of the book. Every chapter has several other sub chapters making the topic clear and better to understand. In the end of the book a directory section is enclosed containing Industries Department addresses, Service Institutes, Branch Institutes, and Extension Centres in various Indian States.
Contents
1. INTRODUCTION 1
Advantages of Self-Employment
Am I Built to Become an Entrepreneur?
Entrepreneurial Opportunities
Types of Enterprises
Manufacturing Industries
What is Industry?
Size of Industry
Definitions of SSI
(I) Modern Small Scale Industrial Undertaking
(II) Ancillary Industrial Undertaking
(III) Tiny Industrial Units
(IV) Village or Rural Industrial Unit
(V) Artisan Industrial Unit
(VI) Cottage or Household Industry
(VII) Small Scale Service Establishment
Items of Plant & Machinery
2. SMALL SECTOR IN INDIA : STATUS,
GROWTH AND DE-RESERVATION 15
Introduction
Data and Methodology
Impact of De-Reservation
India’s Exports to World Pre and Post De-Reservation
SSI’s in India
Strengthening De-reserved Units
Marketing and Market Information
How do Laws, Rules, Regulations Affect doing Business for SSIs
Setting up a Unit
Conclusion
3. STEPS IN SETTING UP AN SSI 26
Step 1 : Know Yourself
Step 2 : Training
Step 3 : Project Identification Selection
Step 4 : Location of the Enterprise
Premises Owned Vs Hired
Typical Question
Step 5 : Preparation of a Project Report
Typical Questions
Step 6 : Arranging Technical Know How
Step 7 : Constitution of the Firm
Step 8 : Registration
Step 9 : Arranging Finance
Other Sources
Need for Planning
Margin Money
I Needn’t Be Rich
Step 10 : Statutory Licences/Approvals/Clearances
Stpe 11 : Arranging Land & Building
Step 12 : Procuring Plant & Machinery
Step 13 : Utilites : Power Connection/Water Supply
Step 14 : Recruitment of Personnel
Step 15 : Procurement of Raw Materials
Step 16 : Registration with Excise/Sales Tax Authorities
Step 17 : Trial Production
Step 18 : Commercial Production
Step 19 : Marketing
Step 20 : Accounts and Record-Keeping
Step : 21 Market Research
Step 22 : Quality Control
Step 23 : Updating Yourself
Step 24 : Growth
Step 25 : Avoiding Typical Pitfalls
4. REGISTRATION/LICENCES FOR SSI 77
Special Approvals
Pollution Control Board
5. RESOURCING 87
Banks
Composition and Current Scenario
Non-Banking Financial Companies (NBFCs)
Financial Institutions
National Level Institutions
State Level Institutions
Government Funding and Schemes
Capital Market
Regulatory Framework
Policy Measures and Initiatives
Venture Capital
6. STEPS IN STARTING & MANAGING YOUR BUSINESS 121
Managing a Business
Client Relationship Management
Sourcing Process, Raw Materials, Machineries and Equipments
Process Selection
Raw Materials
Machinery and Equipments
Setting up Infrastructure
Naming and Registering a Business
Pricing your Product
Setting the Pricing Objective of the Firm
Determining the Demand for the Product
Estimating the Costs and Profits
Determining the Competition for the Product
Distribution
Considering the Governmental Regulations
Selecting a Suitable Pricing Method/Policy
Financing a Start up Business
Hiring Human Resource
Choosing the Location of the Industry
Creating a Business Plan
The Benefits of Business Planning
Choosing a Form of Business Organization
Taxes
Promotion
Regulatory Requirements
Managing your Intellectual Proficiency
Marketing and Sales
Managing your Finance
Insurance
7. TECHNICAL KNOW-HOW FOREIGN COLLABORATIONS 154
8. MARKETING 157
Size of Market
Competition
Market Segmentation
Products Differentiation
Distribution Channels
Costing & Pricing
Sales Strategy
Advertising/Publicity
After Sales Service
Government Purchases
9. LESSONS FROM EXPERIENCE 162
Profit Generation
Repayment of Loans
Financial Planning
Legal Violations
Copy Cats
Insurance
Ancillarisation
Women
Industrial Sickness
Avoiding Sickness
Incentive and Subsidies
10. POLICIES AND PROGRAMMES FOR RURAL DEVELOPMENT 169
Concept of Rural Development
Goals of Rural Development
Rural Development Schemes
Rural Development Policy
Development and Incidence of Poverty
Evaluation
Need for Human Resources Strategy
11. PRIME MINISTER’S ROZGAR YOJANA (PMRY)
AND SCHEME OF FUND FOR REGENERATION
OF TRADITIONAL INDUSTRIES (SFURTI) 180
Introduction
Prime Minister’s Rozgar Yojana (PMRY)
Contingency Funds for Scheme Administration
Project Profiles
Assistance from States/UTs
Monitoring & Guidance for PMRY
Monitoring and Guidance at District Level
Monitoring and Guidance at State/UT Level
Monitoring and Guidance at Government of India Level
Cumulative Status of Progress Under PMRY during X Plan and 2007-08
Budgetary Assistance
Evaluation Studies of PMRY
Initiatives Taken For Strengthening PMRY
Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
Prime Minister’s Employment Generation Programme
12. WOMEN ENTREPRENEURSHIP IN INDIA 193
Introduction
Categories of Women Entrepreneurs
Categories of Women Entrepreneurs in Practice in India
Supportive Measures for Women’s Economic Activities and Entrepreneurship
Direct & Indirect Financial Support
Yojna Schemes and Programme
Technological Training and Awards
Federations and Associations
Women Entrepreneurship in India
Women Work Participation
Rural & Agricultural Economic Development for Women
Growing Role of Women Entrepreneur in India
Problems of Women Entrepreneurs in India
13. KHADI AND VILLAGE INDUSTRIES
COMMISSION (KVIC) 210
Introduction
Objectives
Functions
Procedure for Implementing R&D Projects in (KVIC)
High Power Committee Recommendations
Who can undertake R&D Projects?
How Proposals are to be Made
Procedure
Implementing Agencies
Mahatma Gandhi Institute for Rural Industrialization (MGIRI)
14. INDUSTRIAL INNOVATIONS BY SMALL AND MEDIUM SIZED ENTERPRISES 226
Introduction
Industrial Innovations
Technological Competence
Competence for Development of the Firm
Systematic Learning
Innovations in Small and Medium Sized Firms
Role of Innovative Small and Medium Sized Firms
15. MICRO, SMALL & MEDIUM ENTERPRISES 238
Micro Finance Programme
Government Policies and Support Measures: Brief History
Present Policy Framework and Focus Areas
Indian MSMES: Areas of Cooperation
Mechanism for Operating the Scheme
Subsidy Scheme for Technology Up Gradation
Quality Up gradation/Environment Management for Small Scale Sector
Features of the Scheme
Cluster Development Programme (MSE-CDP)
Objectives
National Award Scheme in MSME
National Manufacturing Competitiveness Programme (NMCP)
Scheme of Micro Finance Programme
Features of Micro- Finance Programme
Mini Tool Room & Training Centre Scheme
Existing Tool Room & Trainnig Centres
16. POLLUTION CONTROL BOARD (PCB) 263
Introduction
Functions
Functions of the Central Board at the National Level
Functions of the Central Board as State Boards for the Union Territories
Environmental Laboratories with Valid Recognition
17. MICRO SMALL MEDIUM ENTERPRISES (MSME) BRANCH OFFICE & DEVELOPMENT INSTITUTE
IN INDIA 275
Development Institutes
Testing Stations
MSME Technology Development Centres
Testing Centres
Central Tool Room and Tranning Centres
Advantages of Self-Employment
Am I Built to Become an Entrepreneur?
Entrepreneurial Opportunities
Types of Enterprises
Manufacturing Industries
What is Industry?
Size of Industry
Definitions of SSI
(I) Modern Small Scale Industrial Undertaking
(II) Ancillary Industrial Undertaking
(III) Tiny Industrial Units
(IV) Village or Rural Industrial Unit
(V) Artisan Industrial Unit
(VI) Cottage or Household Industry
(VII) Small Scale Service Establishment
Items of Plant & Machinery
2. SMALL SECTOR IN INDIA : STATUS,
GROWTH AND DE-RESERVATION 15
Introduction
Data and Methodology
Impact of De-Reservation
India’s Exports to World Pre and Post De-Reservation
SSI’s in India
Strengthening De-reserved Units
Marketing and Market Information
How do Laws, Rules, Regulations Affect doing Business for SSIs
Setting up a Unit
Conclusion
3. STEPS IN SETTING UP AN SSI 26
Step 1 : Know Yourself
Step 2 : Training
Step 3 : Project Identification Selection
Step 4 : Location of the Enterprise
Premises Owned Vs Hired
Typical Question
Step 5 : Preparation of a Project Report
Typical Questions
Step 6 : Arranging Technical Know How
Step 7 : Constitution of the Firm
Step 8 : Registration
Step 9 : Arranging Finance
Other Sources
Need for Planning
Margin Money
I Needn’t Be Rich
Step 10 : Statutory Licences/Approvals/Clearances
Stpe 11 : Arranging Land & Building
Step 12 : Procuring Plant & Machinery
Step 13 : Utilites : Power Connection/Water Supply
Step 14 : Recruitment of Personnel
Step 15 : Procurement of Raw Materials
Step 16 : Registration with Excise/Sales Tax Authorities
Step 17 : Trial Production
Step 18 : Commercial Production
Step 19 : Marketing
Step 20 : Accounts and Record-Keeping
Step : 21 Market Research
Step 22 : Quality Control
Step 23 : Updating Yourself
Step 24 : Growth
Step 25 : Avoiding Typical Pitfalls
4. REGISTRATION/LICENCES FOR SSI 77
Special Approvals
Pollution Control Board
5. RESOURCING 87
Banks
Composition and Current Scenario
Non-Banking Financial Companies (NBFCs)
Financial Institutions
National Level Institutions
State Level Institutions
Government Funding and Schemes
Capital Market
Regulatory Framework
Policy Measures and Initiatives
Venture Capital
6. STEPS IN STARTING & MANAGING YOUR BUSINESS 121
Managing a Business
Client Relationship Management
Sourcing Process, Raw Materials, Machineries and Equipments
Process Selection
Raw Materials
Machinery and Equipments
Setting up Infrastructure
Naming and Registering a Business
Pricing your Product
Setting the Pricing Objective of the Firm
Determining the Demand for the Product
Estimating the Costs and Profits
Determining the Competition for the Product
Distribution
Considering the Governmental Regulations
Selecting a Suitable Pricing Method/Policy
Financing a Start up Business
Hiring Human Resource
Choosing the Location of the Industry
Creating a Business Plan
The Benefits of Business Planning
Choosing a Form of Business Organization
Taxes
Promotion
Regulatory Requirements
Managing your Intellectual Proficiency
Marketing and Sales
Managing your Finance
Insurance
7. TECHNICAL KNOW-HOW FOREIGN COLLABORATIONS 154
8. MARKETING 157
Size of Market
Competition
Market Segmentation
Products Differentiation
Distribution Channels
Costing & Pricing
Sales Strategy
Advertising/Publicity
After Sales Service
Government Purchases
9. LESSONS FROM EXPERIENCE 162
Profit Generation
Repayment of Loans
Financial Planning
Legal Violations
Copy Cats
Insurance
Ancillarisation
Women
Industrial Sickness
Avoiding Sickness
Incentive and Subsidies
10. POLICIES AND PROGRAMMES FOR RURAL DEVELOPMENT 169
Concept of Rural Development
Goals of Rural Development
Rural Development Schemes
Rural Development Policy
Development and Incidence of Poverty
Evaluation
Need for Human Resources Strategy
11. PRIME MINISTER’S ROZGAR YOJANA (PMRY)
AND SCHEME OF FUND FOR REGENERATION
OF TRADITIONAL INDUSTRIES (SFURTI) 180
Introduction
Prime Minister’s Rozgar Yojana (PMRY)
Contingency Funds for Scheme Administration
Project Profiles
Assistance from States/UTs
Monitoring & Guidance for PMRY
Monitoring and Guidance at District Level
Monitoring and Guidance at State/UT Level
Monitoring and Guidance at Government of India Level
Cumulative Status of Progress Under PMRY during X Plan and 2007-08
Budgetary Assistance
Evaluation Studies of PMRY
Initiatives Taken For Strengthening PMRY
Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
Prime Minister’s Employment Generation Programme
12. WOMEN ENTREPRENEURSHIP IN INDIA 193
Introduction
Categories of Women Entrepreneurs
Categories of Women Entrepreneurs in Practice in India
Supportive Measures for Women’s Economic Activities and Entrepreneurship
Direct & Indirect Financial Support
Yojna Schemes and Programme
Technological Training and Awards
Federations and Associations
Women Entrepreneurship in India
Women Work Participation
Rural & Agricultural Economic Development for Women
Growing Role of Women Entrepreneur in India
Problems of Women Entrepreneurs in India
13. KHADI AND VILLAGE INDUSTRIES
COMMISSION (KVIC) 210
Introduction
Objectives
Functions
Procedure for Implementing R&D Projects in (KVIC)
High Power Committee Recommendations
Who can undertake R&D Projects?
How Proposals are to be Made
Procedure
Implementing Agencies
Mahatma Gandhi Institute for Rural Industrialization (MGIRI)
14. INDUSTRIAL INNOVATIONS BY SMALL AND MEDIUM SIZED ENTERPRISES 226
Introduction
Industrial Innovations
Technological Competence
Competence for Development of the Firm
Systematic Learning
Innovations in Small and Medium Sized Firms
Role of Innovative Small and Medium Sized Firms
15. MICRO, SMALL & MEDIUM ENTERPRISES 238
Micro Finance Programme
Government Policies and Support Measures: Brief History
Present Policy Framework and Focus Areas
Indian MSMES: Areas of Cooperation
Mechanism for Operating the Scheme
Subsidy Scheme for Technology Up Gradation
Quality Up gradation/Environment Management for Small Scale Sector
Features of the Scheme
Cluster Development Programme (MSE-CDP)
Objectives
National Award Scheme in MSME
National Manufacturing Competitiveness Programme (NMCP)
Scheme of Micro Finance Programme
Features of Micro- Finance Programme
Mini Tool Room & Training Centre Scheme
Existing Tool Room & Trainnig Centres
16. POLLUTION CONTROL BOARD (PCB) 263
Introduction
Functions
Functions of the Central Board at the National Level
Functions of the Central Board as State Boards for the Union Territories
Environmental Laboratories with Valid Recognition
17. MICRO SMALL MEDIUM ENTERPRISES (MSME) BRANCH OFFICE & DEVELOPMENT INSTITUTE
IN INDIA 275
Development Institutes
Testing Stations
MSME Technology Development Centres
Testing Centres
Central Tool Room and Tranning Centres
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