Entreprneurship Development
Entreprneurship Development
Entreprneurship Development
DEVELOPMENT
1 UNIT 1
ENTREPRENEURSHIP
Entrepreneurship is the process of creating something
new with value by devoting the necessary time and
effort, assuming the accompanying financial, psychic
and social risks and receiving the resulting rewards of
monetary and personal satisfaction and independence.
IRRUTUKADAI HALWA
UBM HOTEL
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UBM HOTEL
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UBM HOTEL
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KNOWLEDGE & SKILLS FOR
ENTREPRNEURSHIP
Passion (KPN travels)
Innovation (Sakthi masala)
Persistence (KFC)
The ability to hire effective people
Create more entrepreneur friends
The ability to identify strengths and weaknesses
The ability to focus on your customers (Amazon)
The ability to deal with failure (OPRAH)
Risk taker
The ability to relieve stress
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Knowledge about the business
Under stand the competitors
BENEFITS OF ENTREPRENEURSHIP
• Opportunity to create your own destiny
• Opportunity to make a difference
• Opportunity to reach your full potential
• Opportunity to reach impressive rewards
• Opportunity to contribute to the society and be
recognized for your efforts
• Opportunity to do what you enjoy and have Fun at it
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FACTORS IMPACTING EMERGENCE OF ENTREPRENEURSHIP
Political & Economy factors
Capital
Labour
Raw material
Family Background
Education system
Type A behavior
Market
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ENTREPRENEURIAL PROCESS
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ROLE OF ENTREPRENEURSHIP IN
ECONOMIC DEVELOPMENT
1.Capital Formation: Mobilizes the idle savings of the
public.
2. Backward and Forward Linkages
3. Generation of employment
4. Improve standard of living.
5. Increasing GDP and per capita income
6. Promotes Country’s Export trade.
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Unit IInd
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OPPORTUNITY IDENTIFICATION AND SELECTION
Start from your family
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IDEA GENERATION METHODS
Focus Groups
8 to 20 people
Homogenous people
Few hours
o Brain storming
o Heterogeneous people
o 8 to 14 people
o Moderator control
o No criticism, No feedback
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BUSINESS DYNAMICS AND CHANGES
Political Factors: These factors determine the extent to
which a government may influence an economy or a
certain industry.
Economic factors: These factors are determinants of an
economy’s performance that directly impacts a company
and have resonating long term effects.
Social Factors: These factors scrutinize the social
environment of the market and guage determinants like
cultural trends, demographics etc.
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Technological Factors: These factors pertain to
innovations in technology that may affect the operations of
the industry and the market favourably or unfavourably.
Legal: These factors have both internal and external sides.
There are that affect the business environment of a certain
country.
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BUSINESS OPPORTUNITIES IN
EMERGING ENVIRONMENT
Green Trend
Clean energy trend
Social Trend
Health Trend
https://youtu.be/ZrUwK1QopK8
https://youtu.be/zwIeJimFSt0
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CHALLENGES OF NEW VENTURE START-
UPS
According to ‘Ajaero Tony Martins’, a successful
entrepreneur and investor: "Starting a business is like
building a ship and embarking on a voyage, armed with a
plan, a map and a team. You will have to sail against
storms, unpredictable weather and uncertainty. If your
ship sinks, it's either you quit or you swim back to shore,
build a new ship and sail again. " A start up is simply a
new venture, an organization or a business.
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Below is a list of the most significant challenges with
which startups are currently grappling:
1. Startup Funding. Funding is a major concern for
startups and small businesses. When the economy
tanked, it made it harder to convince investors and
banks alike to part with the cash that’s essential for
growth in the early days of a business.
2. One of the founders isn’t delivering. Maybe he was the
only guy around who could design the product we
envisioned, but delivering a scalable, quality product is
another story
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3. The product is behind schedule. Invariably we are in crisis mode by
delivery time, and the common complaint was that “management” always
forced unrealistic schedules on developers. Kaaryah – fashion ecommerce
4. Sales aren’t meeting projections. The team buys its own propaganda, and
fully expects customers to leap tall buildings to get to your product. We
never dream that customers would be slow to accept an unproven product
from an unknown startup in the middle of an economic downturn. Cardback
5. The team is not getting along. Things go wrong. People on the team
haven’t worked together before, and they don’t fully trust any ideas except
their own. As the top executive, we have to make some tough decisions, and
spend much more time than you expected on communication and mediation.
Standout jobs- Ben Yoskoviz, Austin Hill
6. Misunderstanding the Market for Startup. Apps are flooding the
marketplace, new ecommerce sites pop up every day, and everyone, it seems,
has a new business idea these days. And despite the challenges facing new
businesses, in many ways it’s easier than ever to start one. Many new
business owners have a good idea, but greatly overestimate the size of their
potential market. Or perhaps they misunderstand what that market truly
wants. Either way, without a product for which consumers are willing to part 18
with cash to own, entrepreneurs will be going nowhere fast.
7. Requirements changed in the middle of the cycle. While everyone was busy
building the product and business model we detailed in our business plan, early
feedback from the field makes it clear that we were somewhat wrong. Or the
economy has taken a sudden turn for the worse, so our high-end product no
longer has a market. Standout jobs
8. Startup Cash Flow Problems. New business owners often make bad
assumptions about cash. Whether it’s assuming instant profitability, mispricing
their product or getting too purchase happy and spending money on things the
business doesn’t really need, cash flow problems are common. And new lending
regulations mean that this is an even bigger issue than it was a decade ago.
Increases in regulation have made financial institutions less willing to lend
money to small businesses—unless the business is doing well enough not to
need it. InksEdge
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Straight Commercial Loans: A hybrid of the installment
loan is the straight commercial loan, by which funds are
advanced to the company for 30 to 90 days.
Long-Term Loans: When a longer time period for use of
the money is required, long-term loans are used. These
loans (usually available only to strong, mature companies)
can make funds available for up to 10 years.
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BOOTSTRAP FINANCING
One alternative to acquiring outside capital that should be
considered is bootstrap financing. This approach is
particularly important at start-up and in the early years of
the venture when capital from debt financing (i.e., in terms
of higher interest rates) or from equity financing (i.e., in
terms of loss of ownership) is more expensive. Bootstrap
financing involves using any possible method for
conserving cash. While some entrepreneurs can take
advantage of any supplier discounts available. The
entrepreneur should always ask about discounts for
volume, frequent customer discounts, promotional
discounts for featuring the vendor's product.
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Venture Capital
This is a major source of funding for start-ups that have a
strong potential for growth. However, venture investors
insist on retaining part ownership in new businesses that
they fund.
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COMMERCIAL BANKS
Commercial banks are by far the source of short-term
funds most frequently used by the entrepreneur when
collateral is available.
Types of Bank Loans There are several types of bank loans
available. To ensure repayment, these loans are based on
the assets or the cash flow of the venture. The asset base
for loans is usually accounts receivable, inventory,
equipment, or real estate.
a) Accounts Receivable Loans: Accounts receivable
provides a good basis for a loan, especially if the customer
base is well known and creditworthy. For those
creditworthy customers, a bank may finance up to 80 30
percent of the value of their accounts receivable
Inventory Loans:
Inventory is another of the firm's assets that is often a basis
for a loan. Usually, the finished goods inventory can be
financed for up to 50 percent of its value.
Equipment Loans: Equipment can be used to secure
longer-term financing, usually on a 3- to 10-year basis.
Equipment financing can fall into any of several
categories: financing the purchase of new equipment,
financing used equipment already owned by the company
or lease financing
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MODULE 3
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INDUSTRY ANALYSIS
An industry is a group of firms producing a similar
product or service, such as music, fitness drinks, or
electronic games.
Industry analysis is business research that focuses on the
potential of an industry. Why important? Once it is
determined that a new venture is feasible in regard to the
industry and market in which it will compete, a more in‐
depth analysis is needed to earn the ins‐and‐outs of the
industry the firm plans to enter.
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ENVIRONMENTAL SCANNING -
5 FORCE ANALYSIS (PORTER’S) / INDUSTRY
ANALYSIS
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A well-designed concept test, which is usually called a concept statement, includes the
following:
■ A Description of the Product or Service Being Offered: This section details the
features of the product or service and may include a sketch of it as well. A computer-
generated simulation of the functionality of the product or service is also helpful.
■ The Intended Target Market: This section lists the businesses or people who are
expected to buy the product or service.
■ The Benefits of the Product or Service: This section describes the benefits of the
product or service and includes an account of how the product or service adds value
and/or solves a problem.
■A Description of How the Product will be Positioned Relative to Similar Ones in the
Market: A company’s position describes how its product or service is situated relative
to competitors. (VOLVO 740 TURBO)
■ A Description of How the Product or Service will be Sold and Distributed: This 37
section specifies whether the product will be sold directly by the manufacturer or
through distributors or franchisees.
Market feasibility analysis :is an assessment of the overall
appeal of the market for the product or service being proposed.
For feasibility analysis, there are three primary issues that a
proposed business should consider: industry attractiveness,
market timeliness, and the identification of a niche market.
Industry Attractiveness. Industries vary considerably in terms
of their growth rate. Typically, an industry that is growing is
more attractive because it is more receptive to new entrants
and new product introductions.
In general, the most attractive industries are characterized by
the following:
■ Being large and growing
■ Being important to the customer.
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Not being crowded. A crowded market, with lots of
competitors, is typically characterized by fierce price
competition and low operating margins.
To fully understand the dynamics of the industry a firm
plans to enter, an entrepreneur should conduct both
primary and secondary research.
Primary research is original research and is collected by
the entrepreneur. In assessing the attractiveness of a
market, this typically involves talking to potential
customers and key industry participants.
Secondary research probes data that are already collected.
The sources of secondary research include industry related
publications, government statistics, competitors’ Web sites,
and industry reports from respected research firms 39
Market Timeliness. A second consideration in regard to the
industry/market feasibility of a business idea is the
timeliness of the introduction of a particular product or
service. The factors to consider vary, depending on whether
a prospective business is planning to introduce a
breakthrough new product or service or one that is an
improvement on those currently available.
Identifying a Niche Market. The final step in
industry/market feasibility analysis is identifying a niche
market in which the firm can participate. A niche market is
a place within a larger market segment that represents a
narrower group of customers with similar interests. Most
successful entrepreneurial firms do not start by selling to
broad markets. Instead, most start by identifying an 40
emerging or underserved niche within a larger market.
Financial feasibility analysis: is the final stage of a
comprehensive feasibility analysis. For feasibility
analysis, a quick financial assessment is usually
sufficient. The most important issues to consider at this
stage are total start-up cash needed, financial
performance of similar businesses, and the overall
financial attractiveness of the proposed venture.
Total Start-Up Cash Needed. This first issue refers to the
total cash needed to prepare the business to make its first
sale. An actual budget should be prepared that lists all
the anticipated capital purchases and operating expenses
needed to generate the first $1 in revenues
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Financial Performance of Similar Businesses. The second
component of financial feasibility analysis is estimating a proposed
start-up’s potential financial performance by comparing it to
similar, already established businesses.
Overall Financial Attractiveness of the Proposed Venture:
A. Industry analysis
2. Growth rate
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V. Business Strategy
A. Company goals and objectives
1. Operational 2. Financial 3.
B. SWOT analysis
C. Competitive strategy
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. Company Products and Services
A. Description 1. Product or service features
Description: Our most popular bottle, available in a variety of colors
to help brighten up anybody’s gear. The large opening on our wide-
mouth bottles easily accommodates ice cubes, fits most water purifiers
and filters, and makes hand washing a breeze. The attached loop-top
never gets lost and screws on and off easily. Printed graduations let
keep track of your hydration. Dishwasher safe (Please make sure the
top does not touch the heating element, or it will melt).
Description: They’ll be thrilled when they receive this handsome
basket chock-full of all the good things the holidays have to offer.
Incredible Navel Oranges, along with plump Ruby Red Grapefruit,
fine Belgian Chocolates, Holiday Candies, Shortbread and Orange
Blossom Honey. The larger Happy Holidays basket also includes a
generous selection of mammoth Mixed Nuts, a jar of HoneyBell
Marmalade and more mouth-watering fruit. All are guaranteed to
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arrive juicy sweet and delivering your warmest “Happy Holidays”
wishes.
2. Customer benefits 3. Warranties and guarantees 4.
Unique selling proposition (USP)
B. Patent or trademark protection
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C. Market size and trends 1. How large is the market? 2. Is it
growing or shrinking? How fast?
D. Personal selling efforts 1. Sales force size, recruitment,
and training 2. Sales force compensation 3. Number of calls
per sale
Advertising and promotion 1. Media used 2. Media costs 3.
Frequency of usage 4. Plans for generating publicity
Pricing
1. Cost structure
a. Fixed
b. Variable
3. Discounts 49
G. Distribution strategy 1. Channels of distribution used
2. incentives for intermediaries
H. Test market results 1. Surveys 2. Customer feedback
on prototypes 3. Focus groups
Competitor Analysis
A. Existing competitors 1. Who are they? 2. Strengths 3.
Weaknesses
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B. Resumes of key managers and employees (suitable for
an appendix).
XII. Financial Forecasts (suitable for an appendix)
A. Key assumptions
B. Financial statements (year 1 by month, years 2 and 3 by
quarter)
1. Income statement
2. 2. Balance sheet
C. Break-even analysis
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Formulation of a business plan
I. Title Page and Table of Contents
II. The Executive Summary
V. Business Strategy
VI. Description of Firm’s Product or Service
X. Location
XI. Pricing
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Distribution
Competitor Analysis
Plan of Operation
Pro Forma (Projected) Financial Statements
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LEGAL FORMS OF ENTREPRENEURIAL
ORGANIZATIONS
Entrepreneurs have a number of legal forms of business to choose
from, such as sole proprietorships, partnership, co-operative, C-
corporations, or Limited Liability Companies (LLCs).
Entrepreneurs should determine which business form is best for
them based on their short and long-term needs.
Sole Trading/Sole Proprietorship
Sole proprietorship is a one-man business. It is the simplest, the
oldest, and in some respects the most natural form of business in
the private sector. In this form of business, a single individual is
solely responsible for providing the capital, for bearing the risks,
and for the control of the enterprise. It is a one-man show. Sole
proprietorship means a business owned, financed, and controlled
by a single person. The owner, called the proprietor, alone is 57
responsible for the profits and losses of the business.
The distinguishing characteristics of sole proprietorship are as
follows:
1. Single Ownership: A sole proprietorship is wholly-owned by one
individual. The individual supplies the total capital from his own
wealth or from borrowed funds.
2. One-Man Control: The proprietor alone takes all the decisions
pertaining to the business. He is not required to consult anybody.
Ownership and management are vested in the same person. Some
persons may be employed to help the owner but ultimate control
lies with him.
3. No Separate Legal Entity: A sole proprietorship has no legal
identity separate from that of its owner. The law makes no
distinction between the proprietor and his business. The business
and the owner exist together. If the owner dies or becomes
insolvent the business is dissolved. The proprietor and his business
are one and the same.
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4. Unlimited Liability: The proprietor is personally liable for all the
debts of the business.
No-Profit Sharing: The sole proprietor alone is entitled
to all the profits and losses of business. He bears the
complete risk and there is nobody to share the profits or
losses.
Small Size: The scale of operations carried-on by a sole
proprietorship is generally small. A sole trader. can
arrange limited funds and managerial ability. Therefore,
the area of operations is generally local and limited.
No Legal Formalities: No legal formalities are required
to start, manage, and dissolve sole trader business
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Advantages of Sole Proprietorship
The system of Sole Proprietorship has the following advantages:
1) Low Cost of Production: Since the business is exclusively his
own, the single entrepreneur works day and night for the success
of his enterprise. He allows no wastage of materials and keeps a
strict, vigil on the 'activities of his workers. All this results in very
low cost of production.
2) Promptness in Decisions: A single entrepreneur does and holds
any consultations with anyone on important issues facing him. He,
therefore, takes decisions promptly on the spur of the moment.
3) Personal Contact: As the sole proprietorship is a very small
form of business organization, its owner, entrepreneur, maintain
close contact with his customers and attempts to provide
maximum satisfaction to them. Since he comes in contact with his
workers daily, there is little possibility of any misunderstanding
arising among them, with the result that the labor management 60
relations remain quite happy and cordial.
4) Easy to Start and Wind-up: The individual
proprietorship is the easiest form of business
organization. For starting it, there are no legal
formalities or government sections to be required. If one
wants to start a hotel or a dairy farm, the only formality
he as to undergo is to take a license from the Health
Department of the Municipal Board or Corporation.
5) Incentive for Hard Work: As the individual proprietor
is the whole sole owner of his business, he works very
hard and with full interest in order to get the best
possible results of his endeavor. He does not care for the
hours of leisure or rest. This kind of hard and sincere
work enables him to earn good results. A shopkeeper or
a hotel owner, for example, works very hard to increase 61
his profit.
6) Flexibility in Business: This type of occupation can be
promptly adjusted to the new circumstances.
7) Independence: Since the sole proprietor is the whole sole
owner of his business, he enjoys full independence in his
business affairs.
Disadvantages of Sole Proprietorship
The sole proprietorship business is also subject to certain
disadvantages. Some of these are as follows:
1) Limited Means of Production
2) Limited Skills
3) No Economies of Large-scale Production
4) No Division of Labor
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5. Small Income
6. Unlimited Liability
Partnership
Partnership is a business relation between two or more
persons who have agreed to share the profits of a
business carried-out by all or any one of them acting for
all.
A partnership venture can be set-up with minimum 2
and maximum 10 members in banking business and 20
in other cases.
This restriction on upper limit is due to the provision
contained under Section 11 of the Indian Companies
Act 1956.
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Features of Partnership.
Two or More Persons: There must be at least two persons
to form a partnership.
Contract or Agreement: A partnership firm is an agreement
between two or more persons for running a business and
earning profits.
Sharing of Profits: In the partnership organization, the
partners share the profits according to the proportion
written in the Agreement. In case the business faces a loss,
even then they will share it proportionately.
Control is shared by All the Partners: In a partnership, the
decisions are taken unanimously. Some partners may be
dormant or sleeping partners and may not take active part
in the management, but they have the right to control the
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functioning of the business. The business is carried on by
all or any of them acting for all.
Unlimited Liability: In the partnership business, the
liability of every partner is unlimited. This means that
every partner is responsible for the acts of all the
partners.
Types of Partnership
Fixed Partnership
Partnership at Will
Particular Partnership
Types of Partners
1. Active Partners
2. Sleeping partners
3. Secret Partners 65
Nominal Partners
Partners by Estoppels
Minor Partners
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TYPES OF JOINT STOCK COMPANY
On the Basis of Mode of Incorporation
i) Chartered Companies: A chartered company is established by
the Royal Charter or special sanction panted by the head of the
state. It is granted certain exclusive privileges and powers. For
example, the British East India Company was created by a
Charter of the Queen of England. The Bank of England, the
Hudson's Bay Company, and the Dutch East India Company
are other examples of chartered companies. This type of
company is rare now due to the decline of monarchies
ii) Statutory Companies: A statutory company is established by
a special Act of the Central or State legislature. Its objectives,
powers, and activities are defined by the special law under
which it is created. The Reserve Bank of India and State Bank 69
of India are some examples of statutory companies in India.
iii) Registered Companies: Company is established by
registering (incorporating) it with the Registrar of
Companies under the Companies Act. The formation,
working and winding-up of such a company are
governed by the provisions of the Act.
2) On the Basis of Liability
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Company Limited by Guarantee: In this type of
company, the liability of every member is limited to the
amount which he had undertaken to contribute, if
necessary, to the assets of the company at the time of
winding-up.
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On the Basis of Nationality
i) Indian Company: A company incorporated in India
under the Companies Act, 1956 is known as an Indian
company. However, it may have foreign shareholders
ii) Foreign Company: Foreign Company is any company
incorporated outside India which: a) Had a business in
India prior to the commencement of the Companies Act
1956 and continues to have the same place, or b)
Establishes a place of business in India after the
commencement of the Companies Act 1956.
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4) On the Basis of Membership
i) Government Company: A government company is a
company in which not less than 5 the paid-up share capital is
held by the Central Government, by any, State Government(s)
the Central and State Governments.
Public Company: According to the Companies (Amendment)
Act, .200, a public company means a company which:
a) Has a minimum of seven members and puts no limit on the
number of members;
b) Does not restrict the right of its members to transfer its
shares;
c) Is not prohibited from inviting the general public to
subscribe to its debentures;
e) Has a minimum paid-up capital of five lac rupees, higher 73
Large Funds
Transferability of Shares
Limited Liability
Democratic Organization
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COMPANIES UNDER SECTION 25
Companies which are formed for a non‐profit cause are called
Section 25 Companies. These are so called as they are formed
under section 25 of the Companies Act, 1956. These Companies
are generally those companies which are formed for the sole
purpose of promoting commerce, art, science, religion, charity or
any other useful object and have been granted a license by the
central government recognizing them as such. These types of
companies can be either public company or private company
having a limited liability.
Thus the license is granted on the basis of fulfillment of the
following things:
Its objects should be only to promote commerce, religion, charity
or any other useful object.
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It should intend to apply its profits or other incomes only in
promoting its objects.
Central government should have granted a license to
such a company recognizing them as such..
The Company may not alter its object clause without the
permission of the Central Government.
The Company may not alter its Article without the
permission of the Central Government.
That the company shall not pay remuneration or other
benefit to any of its members.
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PRIVILEGES AND ADVANTAGES AVAILABLE TO A
SECTION 25 COMPANY.
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‘FRANCHISING’
Franchising is an start-up strategy that minimizes this uncertainty
from business venture. Franchising is a special form of licensing
which allows the franchisee to sell a highly publicized product or
service using the franchiser’s brand name or trademark, carefully
developed procedures and marketing strategies
Four Characteristics of Franchising –
(a) A contractual relationship in which franchise licenses the
franchisee to carry out business under the name owned by or
associated with franchiser
(b) Controlled by the franchiser over the way in which franchisee
carries out the business
(c) Assistance to the franchisee by the franchiser in running the
business prior to commitment and throughout the contract period
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(d) Franchisee’s business is a separate entity from that of the
franchiser. The franchisee provides and seeks capital in the venture.
Main types of Franchising:
1. Product Franchising
2. Process Franchising
3. Business format franchising
Advantages to the Entrepreneur
1. Product Acceptance
2. Management Expertise
3. Capital Requirement
4. Operating and Structural Control
Problems in Franchising
1. The problem in franchising usually centres on the inability
of the franchiser to provide service and advertising. When
promises made in the franchise agreement are not kept, the
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franchisee may be left without any support in important areas.
2. The franchisee may also face a problem when a
franchiser fails or is brought out by another company. In
some case, the franchiser finds it difficult to find quality
franchisee. Poor management can cause individual
franchise failure.
Legal issues that entrepreneurs face
Intellectual Property Rights
Registration of the Unit in DIC
Statutory License or Clearance
No Objection Certificate (NOC)
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INTELLECTUAL PROPERTY RIGHTS
Intellectual property rights are a bundle of exclusive rights
over creations of the mind, both artistic and commercial.
The former is covered by copyright laws, which protect
creative works, such as books, movies, music, paintings,
photographs, and software, and give the copyright holder
exclusive right to control re-production or adaptation of
such works for a certain period of time
Types of Intellectual Property Rights Intellectual property
rights are of following types:
1) Patents,
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2) Trademarks
3) Copyright
4) Trade Secrets.
Patent: is a government license that gives the holder
exclusive rights to a process, design or new invention for a
designated period of time. Patents are legal instruments
intended to encourage innovation by providing a limited
"monopoly" to the inventor (or their assignee) in return for
the publication of the details of the invention protected by
the patent.
What can be Patented
What cannot be Patented
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Aims of Patent
The main aims of patents are as follows:
1) To encourage technology innovation. 2) To protect
inventors and investments made to get the invention by
rewarding for the intellectual activity. 3) Patents protect
inventions in all technological fields as long as they have
industrial applicability.
Applying for a Patent Right In India
1) Filing Application
2) Publication of the Application
3) First Examination Report
4) Grant
5) Post-Grant Opposition 85
Patent Infringement
It is important for the entrepreneur to be sensitive about
whether he or she is infringing on someone else's patent.
The fact that someone else already has a patent does not
mean the end of any illusions of starting a business. Many
businesses, inventions, or innovations are the result of
improvements on, or modifications of, existing products.
Trademarks
Trademark is a sign that distinguishes someone's goods or
services from others (usually competitors) goods or
services in the market place. Trademark is a property of a
single person, company or even institute that registers it.
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Registration
1. Trademark Search
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Aims of Copyright
The aims of the copyright are as follows:
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Works Protected by Copyrights
The following are some types of works that are protected
by copyright laws:
1) Literary works
2) Musical works.
3) Sound recordings and songs.
4) Movies-, plays and TV programs.
5) Architectural works.
6) Paintings
Rights of Copyright Holder
1) Reproduction of the copyright holder
2) Performance Right
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3) Translation and Adoption Rights
MODULE V
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SOCIAL ENTREPRENEURSHIP
Social Entrepreneurship
Social entrepreneurship involves the promotion and building of
enterprises or organizations that create wealth, with the
intention of benefiting not just a person or family, but a defined
constituency, sector or community, usually involving the public
at large or the marginalized sectors of society.
Private Versus Social Enterprise
The research defined at least three key elements that
differentiated a social from a private or traditional business
enterprise
(1) their primary stakeholders or beneficiaries;
(2) their primary objectives; and 91
(3) their enterprise philosophy.
Perspectives of social entrepreneurship
Social enterprise consists of obligations a business has to
society. These obligations extend to many different areas:
1. Environment
Restoration or protection of environment Conservation
of natural resources . (Alasdair Harris, founder, Blue
Ventures, London)
Recycling efforts (Wecyclers, Jyoti)
2. Energy
Conservation of energy in production
Efforts to increase the energy efficiency of products Other
energy-saving programs 92
Fair Business Practices
Employment and advancement of women and minorities
Employment and advancement of disadvantaged individuals.
Human Resources
Employee training and development
Career counseling
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2. For-profit with mission-driven strategies
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SOCIAL ENTREPRENEURSHIP IN PRACTICE AND
MENTION A FEW POPULAR EXPERIMENTS
Social entrepreneurship in Practice and mention a few
popular experiments.
Typical sectors of investment of social enterprises
1. Affordable Healthcare – Bempu, Embrace
Innovations, Operation Asha.
2. Water and Sanitation .