Set 1

A3. Concept of Women

Entrepreneurship
Women entrepreneurs may be defined
as the woman or a group of women
who initiates, organizes and operates
a business enterprise. Women are
expected to innovate, initiate or adopt
an economic activity to be called
women entrepreneurs. The
Government of India has defined a
woman entrepreneur as ‘as enterprise
owned and controlled by a woman
having a minimum financial interest of
51% of the capital and giving at least
51% of the employment generated in
the enterprise to women.’
According to Frederick Harbison, like a
male entrepreneur, a woman
entrepreneur has five functions:
1. Explore the prospects of starting
new enterprises.
2. Undertaking of risks and the
handing of economic and non-
economic uncertainties.
3. Introduction of new innovations
or imitation of successful ones in
existence.
4. Co-ordination, administration and
control.
5. Supervision and providing
leadership in all aspects of the
business.
These functions are not of equal
importance. Risk taking and
innovation are of paramount in
improving the efficiency in the
operation of the undertaking.
Generally, it is found that the same
lady is performing all these
functions.

A4. Tips to Conduct a Market

Survey:-
1. Raw Material Availability :(a)
Leading suppliers. (b) Prices and
fluctuations. (c) Time for order
 execution. (d) Local and outside
sources of supply – merits
demerits. (e) Credit facilities,
advance payment, terms and
conditions for supplies.
2. Tooling, Equipment
Installation: (a) Major
manufactures, here and abroad.
(b) Price structure of different
brands. (c) Comparative features
manufacture’s standing,
reputation. (d) Repair and
maintenance facilities. (e) After-
sale service, availability of
spares. (f) Performance
guarantees by suppliers. (g)
Training of technical staff
requirements/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
 competitions, superior design,
import substitute, quality
upgradation, longer
guarantee/warranty,
innovativeness). (d) Market
features and practices – credit
facility, minimum order,
incentives. (e) Business terms,
commission, stocks, warehouse
facilities.
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) Consumer
characteristics of different
regions and devising the sales
message appeal accordingly.
A5. Contents of a Project Report:-
The project report should contain the
following essential details:
1. General Information: Bio-Data
of promoters, Industry/Product
 profiles, Organizational structure,
Product details.
2. Land: Location – locational
advantages, lease or free hold –
actual requirements – value- type
of soil hard or loose or marshy.
3. Building: Plinth area, type of
construction, cost of construction
– separate for administrative
blocks and factories – detailed
plan and estimate along with
plant layout.
4. Plant and Machinery: List of
machinery with full description
and source of supply and cost. A
layout plan of the machinery
according to the process – cost of
miscellaneous asserts.
5. Manufacturing process and
technical know how.
6. Effluent disposal.
7. Utilities: Power-source,
availability, requirements and
cost estimates of electrification
 and contribution of Electricity
Board.
Water-source, availability,
requirements, and cost of arranging
the same.
8. Transport: Mode of transport
cost of internal roads.
9. Communication:
Telecommunication, feasibility of
getting – cost.
10. Raw Materials: List of raw
materials, quality requirements,
sources of supply, controlled or
scarce suppliers – arrangements
made for a continuous supply.
11. Manpower requirements with
annual wage bill.
12. Products: Product mix and
estimated annual sales – local,
through agency – distribution
system – competitors and their
capacities.
13. Working capital: - requirements
– arrangements made with
commercial banks – requirement
 of margin – whether there is need
for collateral security.
14. Cost of production and
profitability.
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 requires
funds could broadly be classified into
two sources. These are:
1. Internal Sources
2. External Sources
Internal sources:
Under this source, funds are raised
from within the enterprise itself. The
internal sources of financing could
be owner’s capital known as equity,
deposits and loans given by the
owner, the partners, the directions,
as the case may be, to the
enterprise. One source for raising
funds internally may be personal
loan taken by the entrepreneurs on
his/her personal asserts like
Provident Fund, Life Insurance
Policy, buildings, investments, etc. In
the addition to these, in case of
running enterprise, funds could also
be raised through the retention of
profits or conservation of some
asserts into funds. The cardinal
principal of financial management
also suggests that an entrepreneur
should religiously plough back a
good portion of his/her profits into
the enterprise itself. However, the
scope for raising funds from internal
sources particularly in the case of
small-scale enterprises remains
highly limited.
External Sources:
In short, funds raised from other
than internal sources are form
external sources. The external
sources usually include the
following:
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 Small
Industries Corporation (NSIC) and
State Small Industries
Corporations (SSICs).
6. Seed/Margin money, subsidies
from the Government and the
financial institutions.
If we now lump both the sources
together, these can broadly be
classified as follows:
1. Personal funds or Equity Capital.
2. Loans from relatives and friends.
3. Mortgage Loans.
4. Term- Loans.
5. Subsidiaries.