SETTING UP A SMALL BUSINESS ENTERPRISE

IDENTIFYING THE BUSINESS OPPORTUNITIES

The overriding reason for anyone to think of establishing a Small Scale Industrial Unit can be summarized in one word – opportunity. The opportunity to be your own boss, to provide a product or service, to implement your ideas, which can generate sufficient surplus, is reason to think of starting an SSI Unit. To be successful – to say in business – you need a combination of hard work, skill and perseverance.

Generally, people who start their own business can be grouped into two broad categories. The first group consists of people who know exactly what they want to do and merely looking for the opportunity or resource to do it. The second group consists of people who want to start their business, but do not have any real definite idea about what they would like to do.

BUSINESS OPPORTUNITIES IN VARIOUS SECTORS1. Green Business – The concept of green entrepreneurship stresses upon the prevention of waste at the source rather than treating the waste at the end of the process. One of the important strategies towards green entrepreneurship is waste minimization – a new and creative way of thinking about products and processes that make them less polluting. It is achieved by continuous application of strategies to minimize the generation of waste and emissions. Adopting these strategies results in creation of new market opportunities by way of opening new avenues for by-products, which were earlier banned due to use of non-environment friendly technology.

GREEN PRODUCTS AND ITS CHARACTERISTICSThe products those are manufactured through green technology and that caused no environmental hazards are called green products. Promotion of green technology and green products is necessary for conservation of natural resources and sustainable development. We can define green products by following measures:--Products those are originally grown,--Products those are recyclable, reusable and biodegradable,--Products with natural ingredients,--Products containing recycled contents, non-toxic-chemical,--Products contents under approved chemical,--Products that do not harm or pollute the environment,--Products that will not be tested on animals,--Products that have eco-friendly packaging i.e. reusable, refillable containers etc

India ranks number one in the world in green marketing. The examples of best green business initiated in India are – 1. Green IT @ SBI2. Lead free paints from Nerolac 3. Eco friendly rickshaws (Battery operated)4. Wipro’s Green Computers

2. Biotechnology – It is the industrial use of living organisms to manufacture food, drugs and other products. India’s biotechnology sector has received a huge boost during 2000. As a result of this development more and more investors and entrepreneurs are taking an interest in this sector. It involves the application of biological processes and technologies, such as genetic engineering, in order to produce novel or useful products such as drugs, diagnostic tools, drought resistant crops, or even a whole new class of supercomputers. Also it promises to have a dramatic affect on sectors like pharmaceuticals, health care, agriculture, pollution management and insurance.

3. Mineral Water – We are entering an era when potable bottled water will find place in almost all general stores and it will become an unavoidable expenditure for people at large. Many small scale entrepreneurs can find business opportunities in this fast growing market.

4. Currier Services – An effective door-to-door currier service plays an integral part in the success of many businesses. Providing the vital link between suppliers and consumers, currier services enable cost-effective distribution of time critical goods and documents. The rapid rate of global integration needs a currier that sets the place – especially in a country that is as large, diverse and economically vibrant as India. If recent trends are any indication, currier services both in organized and unorganized sector ensure a promising future.

5. Telecommunications – It continuous to be a weak link in India’s basic infrastructure. There are ambitious plans to enhance the telephone penetration ratio in the country. Companies like Reliance Industries Limited, Bharat Sanchar Nigam Limited and others have plans to expand this sector. Investment by these players will throw open many opportunities for entrepreneurs.

6. Herbal Sector – The old age practices of Ayurveda and other Indian systems of medicine depends heavily on herbal preparations. Such systems are gaining wider acceptance now and scientists should exploit this opportunity. The worldwide herbal market is expanding and India can earn revenues easily by exploring herbal products. This sector provides ample opportunities for entrepreneurs.

7. Tourism Sector – A number of entrepreneurial opportunities are exists in tourism sector. Proper infrastructure has to still develop in this sector to develop this sector. Drinking water, sanitation, hygiene standards and transportation facilities need to be maintained. Qualified, trained and licensed guides are also required. These requirements present ample opportunities for entrepreneurs.

8. Food, Fruits, Vegetables Processing, Refrigeration and Transportation – India has emerged as one of the topmost food processing country in the world. The Indian climate is suitable for growing vast varieties of food grains. India needs to exploit this potential by processing our food grains. Processed food will have good market in India as well as in abroad. Food processing would also earn us much needed foreign exchange.

9. Vermi-culture - Organic farming is becoming popular now-a-days. This change in attitude is mainly due to environment and health conscious people. Farmers today have realized that organic farming can increase yields. Potential entrepreneurs with interest in agriculture based or related activities would find good business opportunities in this area.

10. Event Management – The event management industry is embracing technology and education, which is making event business run smoother. Overall, the event industry is greatly placed with a bright future. In India today the event industry is worth between Rs 300 cr to 350 cr.

Event Management is now emerging as a new growth industry, capable of generating economic benefits and employment. Organizing events also helps to generate investment in building up infrastructure, besides opportunities to access new technology, exchange of ideas, and establish business and professional contacts as well as other social and cultural aspects. Events create maximum employment in the form of event organizers and managers, equipment handling, sound and light technicians, security, transport, catering management, etc.

11. Insurance Sector – Prior to privatization of insurance sector in India, only two government-owned public insurance companies – Life Insurance Corporation of India and General Insurance Corporation – operated in the market to carry out insurance business. Almost twenty insurance companies have now entered the insurance fray. In days to come the insurance industry will provide abundant business opportunities to insurance brokers, agents, salespersons, insurance claim processors, insurance surveyors and many others, who will provide indirect support to the industry.

12. Plastic – Plastic is perhaps the most versatile of all the materials known. They are easier to handle and process with strictest dimensional tolerance and are abundantly available. By virtue of their versatility, plastics are replacing conventional materials such as wood, glass, metals, paper and now in varied segments like packaging, agriculture, house wares, business electronics, engineering, irrigation, automobiles, telecommunications, and white goods industries. Plastics are the lifeline of advanced technology and health care. It is the fastest growing industry in the country. This sector provides tremendous opportunities for entrepreneurs.

13. IT Enabled Services – The information technology (IT) sector has literally taken over the country. There is tremendous potential for IT enabled services within the country and abroad. This sector provides ample opportunities for entrepreneurs.

14. Home Based Business – Today home-based business is becoming popular for various reasons. The advantages & disadvantages of this kind of business are – --Your start up costs will be lower.--Your operating costs will be lower than they would be if you were renting space and paying utilities.--There will be no commuting involved.--You may be less accessible to suppliers.--You may have trouble attracting qualified employees.--You may run out of space at home if the business grows.

HOME BASED BUSINESSESThere are many businesses especially in the service sector, which can be run efficiently from home. A list of some of such industries is given below.--Courier and messenger service--Outdoor catering service--Mail order retailing--Travel agencies--Health clubs--Data processing--Medical clinics--Beauty parlors

What is Micro, Small & Medium IndustriesAccording to the Micro, Small & Medium Enterprises Development Act 2006 & Industries (Development & Regulation) Act 1951, the following conditions are given to define a micro, small and medium enterprises –

In the case of the enterprises engaged in the manufacture or

production of goods

In the case of the enterprises engaged in providing or rendering

of services

MICRO

Where the investment in plant and machinery does

not exceed twenty five lakh rupees

Where the investment in equipment does not exceed

ten lakh rupees

SMALL

Where the investment in plant and machinery is more

than twenty five lakh rupees but does not exceed

five crore rupees

Where the investment in equipment is more than ten

lakh rupees but does not exceed two crore rupees

MEDIUM

Where the investment in plant and machinery is more

than five crore rupees but does not exceed ten crore

rupees

Where the investment in equipment is more than two

crore rupees but does not exceed five crore rupees