assignment 6 sem

8/7/2019 assignment 6 sem

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Set 1A3. Concept of WomenEntrepreneurshipWomen entrepreneurs may be definedas the woman or a group of womenwho initiates, organizes and operates

a business enterprise. Women areexpected to innovate, initiate or adoptan economic activity to be calledwomen entrepreneurs. TheGovernment of India has defined awoman entrepreneur as as enterprise

owned and controlled by a womanhaving a minimum financial interest of51% of the capital and giving at least51% of the employment generated inthe enterprise to women.

According to Frederick Harbison, like a

male entrepreneur, a womanentrepreneur has five functions:1. Explore the prospects of starting

new enterprises.


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2. Undertaking of risks and thehanding of economic and non-economic uncertainties.

3. Introduction of new innovationsor imitation of successful ones inexistence.

4. Co-ordination, administration andcontrol.

5. Supervision and providingleadership in all aspects of thebusiness.

These functions are not of equalimportance. Risk taking andinnovation are of paramount inimproving the efficiency in theoperation of the undertaking.Generally, it is found that the samelady is performing all thesefunctions.

A4. Tips to Conduct a MarketSurvey:-1. Raw Material Availability :(a)

Leading suppliers. (b) Prices andfluctuations. (c) Time for order


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execution. (d) Local and outsidesources of supply meritsdemerits. (e) Credit facilities,advance payment, terms andconditions for supplies.

2. Tooling, EquipmentInstallation: (a) Majormanufactures, here and abroad.(b) Price structure of differentbrands. (c) Comparative featuresmanufactures standing,reputation. (d) Repair andmaintenance facilities. (e) After-sale service, availability ofspares. (f) Performanceguarantees by suppliers. (g)Training of technical staffrequirements/facilities. (h)Machinery delivery schedules.

3. Marketing and Distribution:(a) Marketing strategy,distribution cannels. (b)

Advertising and positioning. (c)Outstanding features of

product/service (Advantage over


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competitions, superior design,import substitute, qualityupgradation, longerguarantee/warranty,innovativeness). (d) Marketfeatures and practices creditfacility, minimum order,incentives. (e) Business terms,commission, stocks, warehousefacilities.

4. Consumer Behavior : (a)Existing brand loyalties. (b)Consumption pattern. (c)Motivation to buy new product.(d) Purchasing power. (e)Preference for durability, service,economy. (f) Consumercharacteristics of differentregions and devising the salesmessage appeal accordingly.

A5. Contents of a Project Report:-The project report should contain thefollowing essential details:

1. General Information: Bio-Dataof promoters, Industry/Product


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profiles, Organizational structure,Product details.

2. Land: Location locationaladvantages, lease or free hold actual requirements value- typeof soil hard or loose or marshy.

3. Building: Plinth area, type ofconstruction, cost of construction separate for administrativeblocks and factories detailed

plan and estimate along withplant layout.

4. Plant and Machinery: List ofmachinery with full descriptionand source of supply and cost. Alayout plan of the machineryaccording to the process cost ofmiscellaneous asserts.

5. Manufacturing process andtechnical know how.

6. Effluent disposal.7. Utilities: Power-source,

availability, requirements andcost estimates of electrification


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and contribution of ElectricityBoard.

Water-source, availability,requirements, and cost of arrangingthe same.8. Transport: Mode of transport

cost of internal roads.9. Communication:

Telecommunication, feasibility ofgetting cost.

10. Raw Materials: List of rawmaterials, quality requirements,sources of supply, controlled orscarce suppliers arrangementsmade for a continuous supply.

11. Manpower requirements withannual wage bill.

12. Products: Product mix andestimated annual sales local,through agency distributionsystem competitors and theircapacities.

13. Working capital: - requirements arrangements made withcommercial banks requirement


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of margin whether there is needfor collateral security.

14. Cost of production andprofitability.

15. Break-even analysis.16. Projected balance sheet and

cash flow for ten years.17. Schedule of implementation of

the project.18. Repayment of schedule.

A6. Sources of Finance:An enterprise can raise the requiresfunds could broadly be classified intotwo sources. These are:

1. Internal Sources2. External SourcesInternal sources:Under this source, funds are raisedfrom within the enterprise itself. Theinternal sources of financing couldbe owners capital known as equity,deposits and loans given by theowner, the partners, the directions,as the case may be, to the


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enterprise. One source for raisingfunds internally may be personalloan taken by the entrepreneurs onhis/her personal asserts likeProvident Fund, Life InsurancePolicy, buildings, investments, etc. Inthe addition to these, in case ofrunning enterprise, funds could alsobe raised through the retention of

profits or conservation of someasserts into funds. The cardinal

principal of financial managementalso suggests that an entrepreneurshould religiously plough back agood portion of his/her profits intothe enterprise itself. However, thescope for raising funds from internalsources particularly in the case ofsmall-scale enterprises remainshighly limited.External Sources:In short, funds raised from otherthan internal sources are formexternal sources. The external


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sources usually include thefollowing:1. Deposits or borrowings from

relatives and friends and others.2. Borrowings from the banks for

working capital purposes.3. Credit facilities from the

commercial banks.4. Term-loans from financial

institutions.5. Hire-purchase or leasing facility

from the National SmallIndustries Corporation (NSIC) andState Small IndustriesCorporations (SSICs).

6. Seed/Margin money, subsidiesfrom the Government and thefinancial institutions.

If we now lump both the sourcestogether, these can broadly beclassified as follows:1. Personal funds or Equity Capital.2. Loans from relatives and friends.3. Mortgage Loans.4. Term- Loans.


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5. Subsidiaries.


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assignment 6 sem

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