PRESENTATION ON THE DIFFERENT TOPIC OF UNIT III

SUBMITTED BY: GROUP IV

RANJEET KUMAR
SHUDHANSHU SETHI RAVI RAJORIA UMMED SINGH

SOURABH JAIN

NEW VENTURE CREATION

SELECTION OF LOCATION ,ARRANGING AND FACILITIES DIFFERENT NEED BASED RESOURCES BUSINESS OWNERSHIP INFRASTRUCTURE

BUSINESS LOCATION

BUSINESS LOCATION
In

general a business will look to locate its activities where the costs of production are minimised The nature of the business will heavily influence location decisions:

Type and nature of market Type of business production of goods or services, retail, wholesale? Sector primary, secondary, tertiary, quaternary?

QUANTITATIVE FACTORS

QUANTITATIVE FACTORS

Factors that can be measured using quantitative techniques:

Decision trees Investment appraisal Critical Path Analysis, etc.

Generally associated with the costs of production:

COST

Fixed Costs

Site costs Availability of grants/subsidies Cost of loans associated with set up Cost of utilities - gas, water, electricity Cost of hiring fixed salaried staff Cost/availability of technology

Variable Costs
Nearness to market Cost of raw materials Cost of sourcing supplies Transportation costs

Bulk increasing Bulk reducing

Nearness to a supply of skilled/unskilled labour

LOCATION
Some businesses have in little Others may depend choice locate a some where cases they on specific coal mine has tobusy be near a locations in source of coal but city shopping areas, transporting the where for example coal but to could it is needed can be expensive have a virtual location through developments in technology
Image copyright: Joshua Argeliss, http://www.sxc.hu

QUALITATIVE FACTORS

QUALITATIVE FACTORS
Factors that cannot be quantified but which may have a significant impact on the location decision May influence the long term outcome of the location decision Need to consider impact on and response from stakeholders in the business

INTERNATIONAL LOCATION

RESOURCES FOR START-UP VENTURES

Business Formation Team The Business Formation team is group of people, entrepreneurs or investors who are interested to start the new entrepreneurial venture with common goal . Other Funding Resources Several outside resources to assist with funds to ensure a robust development program for new venture concepts. Catalyst Resource Network The functionality of Catalyst Resource Network is to provide a worldwide network of advisors, volunteers, consultants, management candidates and students for the talent needs for technologies and start-up ventures and other assistance.

BUSINESS OWNERSHIP
Legal Forms of Business

Sole Proprietorships

Partnerships

Corporations

General Partnership

Regular Corporation

Limited Partnership

Subchapter S Corporation (S-Corporation)

Master Limited Partnership

SOLE PROPRIETORSHIPS
Business owned (and usually operated) by one person Simplest form of business ownership Most popular form of business organization 72.2% of all Most common in:

Retailing Service Agriculture

SOLE PROPRIETORSHIP -ADVANTAGES

Ease of Startup

Little legal documentation No co-owners to consult

Least expensive to start Pride of Ownership Retention of profits Flexibility No Business Income Tax

SOLE PROPRIETORSHIP -DISADVANTAGES

Unlimited Liability Limited Life Business ends when owner leaves the business Limited Access to Start-up Capital Limited Access to Credit Limited Management Expertise Difficulty in Hiring Employees Proprietor not considered an employee

PARTNERSHIPS
Two or more owners Least numerous form 7.7% of all businesses Partnership Agreement

Specifies rights and obligations of partners If written, called the Articles of Partnership (Articles of Co-partnership)

PARTNERSHIP -- ADVANTAGES
Greater Access to Capital Greater Access to Credit Retention of Profits More Management Expertise No Business Income Tax

PARTNERSHIP -- DISADVANTAGES
Shared Profits Unlimited Liability for General Partners Each partner has Agency power Limited Life

Business ends when any partner withdraws

Management Disagreements Frozen Investment

TYPES OF PARTNERS

General Partner

Unlimited Liability Assumes Management Role

Limited Partner
Liability limited to Investment May not take active managerial role

Every partnership must have at least one general partner

TYPES OF PARTNERS

General Partnership

All partners are general partners

One or more limited partners

Limited Partnership

Master Limited Partnership

Owned & managed like a corporation Taxed like a partnership Shares may be sold

CORPORATIONS
Generally

larger than other forms (Except for S-Corporation)

20.1% of all U.S. Businesses Account for 87.1% of all U.S. Business Income

Considered

a separate legal entity

Owners called Stockholders or Shareholders

Ownership

evidenced by Stock Certificate Governed by Board of Directors

CORPORATIONS -- ADVANTAGES
Limited Liability Ease of Ownership Transfer Unlimited Life Greater Access to Capital Specialized Management Expertise

CORPORATIONS -- DISADVANTAGES

More difficult & costly to form

Requires a Corporate Charter

Subject to greater governmental scrutiny Diluted earnings Double taxation

ORGANIZATIONAL CHART
Owners/ Stockholders/ Shareholders

Chief Executive Officer (CEO)

Board of Directors

President

Senior Vice President

Vice President Finance

Vice President Production

Vice President Marketing

Vice President Human Resources

TYPES OF CORPORATIONS
Government-Owned

Corporation

aka Public Corporation Owned & operated by government Post office, NASA, FDIC

Quasi-Government

Corporation

Aka Quasi-Public Corporation Privately owned, government controlled monopoly Public utilities, Fannie Mae, Freddie Mac, Sallie Mae

Private

Corporation

Owned by individuals or other companies

TYPES OF CORPORATIONS
Not-For-Profit

Corporation

Organized to provide a social, educational, religious, or other service Habitat for Humanity, Red Cross

For-Profit

Corporation Closed Corporation

Stock owned by relatively few people Stock not sold to general public
Open

Corporation

Stock is bought and sold on security exchanges Can be purchased by any individual

GOVERNMENT
(1)

SUPPORT TO

ENTREPRENEURSHIP
To provide information on regulation standard taxation, customs duties, marketing issues

(2)

To advice on business planning, marketing and accountancy, quality control and assurance
To create incubator units and space for business beginner and innovators To help in looking for partners

(3)

(4)

OTHER ASSISTANCE TO PROMOTE

ENTREPRENEURSHIP Training assistance- government provides technical and non technical training through central and state institutions Marketing assistance- there are governmental and nongovernmental specialised agencies which provides marketing assistance

Promotional schemes- government accords the highest preference to development of MSME by framing and implementing suitable policies and promotional schemes Concession on excise duty- a turn over of 1 crore or less per year has been exempted from payment of excise duty

Credit facility credit to micro, small and medium scale sector has been covered under priority sector leading by bank small industrial development bank of India (SIDBI) has been established as the apex institution for financing the MSME

POLICIES AND SCHEMES FOR PROMOTION OF

ENTREPRENEURSHIP BY STATE GOVERNMENTS
Development and management of industrial estates Suspension/deferment of sales tax Power subsidies Capital investment subsidies for new unit set up in a particular district

Seed capital/margin money assistance schemes Priority in allotment of power connection, water connection Consultancy and technical support

INCENTIVES FOR SETTING UP BUSINESS IN

BACKWARD AREAS

The governments of India as well as several state governments provides several benefits and incentives to promote industrialisation of backward area both the central and state governments share the cost of some of the incentives provided

SOME OF INCENTIVE OFFERED ARE

Transportation subsidies to promote industries in that area which are not easily accessible A subsidy at the rate of 15% of the investment amount in plant machinery A subsidy for interest relief is also provided at a rate of 3% for new industrial units in some areas

PRESENTATION ON LICENSING

Licensing
It is a contractual agreement between two business entities whereby the licensor (selling firm) allows the licensee (the buying firm) to use its Technology - Patents - Trademarks -Designs - Processes - Intellectual property in exchange for a fee or a royalty.

DEFINITIONS:

According to Andrew Wakefield the transfer of rights to manufacture or market a particular product to another individual or organization through a legal arrangement or contract. It usually requires that a fee, commission, or royalty is paid to the licensor.

According to pat upon licensing is a practice of allowing a manufacturer to affix the idea ,character , design , or other representation owned by another to his product.

OBJECTIVES:

The major objective of licensing system is to give effect to the industrial policy of the government. To protect and promote small scale sector. To regulate foreign capital and technology. To maintain a proper demand-supply balance. To encourage exports and the substitution of imports. To conserve foreign exchange.

LIST
1. 2. 3. 4. 5. 6.

OF INDUSTRIES IN WHICH LICENSING IS COMPULSORY

Coal and lignite. Petroleum(refined) and its distillation products. Distillation and brewing of alcoholic drinks. Cigars and cigarettes of tobacco and manufactured tobacco substitutes. Electronic aerospace and defence equipment of all types. Industrial explosives including detonating fuse, safety fuse ,gun power ,nitrocellulose and machines.

7. 8.

Hazardous chemicals.
Drugs and pharmaceuticals.

Reasons for Licensing - licensors (sellers) Point of View

1. Lack capital, management resources, market knowledge to exploit directly by export or FDI, so license to a local firm 2. Use licensing as a way to test the market (but is this unfair to local licensee?) 3. We can get money for an invention or technology which is outside our core competence 4. Local market may be too small - problem of economies of scale

5. Possible high rate of obsolescence / short product life cycle for new technology maximize scope for exploitation

The Benefits of Licensing for Licensors

The key benefit for a licensor is the ability to exploit and enhance its brand or property. Licensing can do this by: 1. 2. 3. Increasing its brand presence at retail or distribution outlet Creating further brand awareness to support its core products or services Supporting and enhancing its core values by associations with the licensed products/service or category (e.g. association with a healthy food or with a cutting edge mode of fashion) Entering new markets (consumer or geographical) which were unfeasible with its own resources or capabilities Generating new revenue streams, often with little involvement or additional financial or other resource implications

4. 5.

The Benefits of Licensing for Licensees

The key benefit for a licensee (especially manufacturer or retailer) is the ability to significantly increase consumer interest in and sales of its products or services. Licensing can do this by: 1. 2. 3. Transferring the values and consumer favour towards the property to the licensed product or service Providing added value and differentiation from competitive offerings Providing additional marketing support or momentum from the core propertys activity provided by the licensor

4.Giving credibility for moving into new market sectors through product extension 5. Gaining additional retail space and favour

Major Elements of a License Agreement

1. 2. Covers the financial arrangement between the two parties. Establishes the time frame of the deal.

3.
4. 5.

Address the issue of quality.

Which party maintains control of copyrights, patents, or trademarks. Specify how disputes will be resolved in which court.

DIFFERENT BODIES UNDER ENTREPRENEURE DEVELOPMENT

ESTABLISHED:- 1955 MISSION :- PROMOTING AIDING AND FOSTERING THE GROWTH OF MICRO, SMALL & MEDIUM ENTERPRISES (MSMES) IN THE COUNTRY. SELF-EMPLOYMENT OPPORTUNITIES

OBJECTIVES
Collect and disseminate marketing intelligence Database of Bulk Buyers (Product wise) Buyers in Government / Public Sector Undertakings. Database of Rate Contracts of various Government Department and PSUs. Information on Tenders Floated by Government Department and PSUs. Database of Indian Exporters to various Countries with Products. Database of International Buyers with Products. Database of Technology Suppliers & Projects for MSMEs List of Micro & Small Enterprises registered with NSIC for Government

Up gradation of technology, Quality consciousness, Strengthening linkages. wide network of 123 offices and Technical Centres in the country. 48 Training-cum-Incubation, NSIC operates from its office in Johannesburg, South Africa for african nations.

OPPORTUNITIES

FOR

Bulk buyers in Government / Public & Private Sector Exporters International Buyers Technology Suppliers Units registered with NSIC under Single Point Registration Schemes

UNIQUE FACILITIES
Bank

credit facilitation scheme Performance & credit rating scheme . Techmart India-International Technology Exposition

NSIC TRAINING-CUM- INCUBATION CENTRE (NSIC-TIC)

It

is based on PPP model

Business

plan scrutinize by expert committee

TECH MART 2012 PRAGATI MAIDAN

Machine & Machine Tool Bio Technology Information Technology Textile/Packaging machine Industrial Products Pharmaceutical & Chemicals Low Cost Building Technologies/Materials Leather & Leather products Auto Components Glass & Ceramics Electricals & Electronics Agro & Food Processing

RECOGNITIONS
Icon of the year Award Meri Dilli Award: Small Business Mentor of the Year Award: FSIA V.B. Gulati Award Mini Ratna

Government of India - Ministry of MSME Established in the year 1954

VISION
Enhance the competitiveness of the existing enterprises Contribute towards sustainably establishing more number of potential enterprises Accelerate the employment generation Contribute towards economic growth Provide highly skilled Man Power to industries

STRATEGY

Appropriate adoption of EDP Model Joint screening and selection of candidates Selection of appropriate project Providing hand holding

MENTORING & SERVICES

Financial and marketing support services Entrepreneur Skill Development Programme Entrepreneur Development programme (EDP) Online Provisional SSI Registration Buyer Seller Meet(BSM) Feasibility Reports Industrial Potential Survey Reports Marketing Assistance Seminars, Awareness, Workshop Technical consultancy Preparation of Project Reports Common Facility Workshop - Chennai

ENTREPRENEUR DEVELOPMENT PROGRAMMES (EDP)

MSME DI regularly conducts general and product specific EDPs for prospective entrepreneurs. These programmes are conducted for 4 weeks in the trades of Screen Printing, Manufacture of Leather goods, Chemical and allied products, Electronics, Repair and servicing of electronic and electrical appliances etc,

ENTREPRENEUR SKILL DEVELOPMENT PROGRAMME (ESDP)

In the Entrepreneurship Skill Development Programme we provide Entrepreneurship Skill & Technical Skill inputs for employed and unemployed youth in various sectors.

BUYER SELLER MEET (BSM)

To bring Micro, Small & Medium Enterprises (MSMEs), large industrial houses, Govt. Depts., PSUs and others on a common platform for business promotion. To provide marketing opportunities for MSMEs. To enable large industrial houses to identify competitive vendors. To showcase the strength and competitiveness of MSMEs. To provide an insight into modern technological developments. To showcase the strength and benefits of working in industrial clusters/consortia

MANAGEMENT DEVELOPMENT PROGRAMMES (MDPS

Marketing Management Financial Management Industrial Management Production Management Materials Management Total Cost Management Total Quality Management Export Management

PROCESS
DECISION TO BE SELF EMPLOYED PRODUCT SELECTION PREPARATION OF PRELIMINARY PROJECT REPORT (PPR) DECIDE ON THE FORM OF OWNERSHIP LOCATIONIONAL CONSIDERATIONS PROCUREMENT OF LAND & BUILDINGS

CONTINUE PROCUREMENT OF MACHINERY/EQUIPMENTS PREPARATION OF DETAILED PROJECT REPORT FILING OF ENTREPRENEUR MEMORANDUM PROCESSING FOR FINANCIAL ASSISTANCE OBTAINING STATUTORY LICENSES AND CLEARANCES PROCUREMENT OF BASIC INFRASTRUCTURE REQUIREMENTS

CONTINUE
TRAIL PRODUCTION COMMERCIAL PRODUCTION ESTABLISH YOUR MARKET NETWORK PERFORMANCE REVIEW MODERNISATION AND TECHNOLOGY UPGRADATION AVOIDING SICKNESS

DIFFERENT ARES

AGRICULTURAL TRACTORS SERVICING AUDIO CASSETTE RECORDING CENTRE AUTO TROLLEY RENTALS BATTERY SERVICING BICYCLE SERVICING AND RENTALS CABLE T.V. CEMENT DEALERSHIP COFFEE/TEA VENDING CONCRETE MIXING AND VIBRATING EQUIPMENT RENTAL SER EXERCISE NOTE BOOKS FRUIT JUICE VENDING MAGAZINES AND NOVELS SHOP . AND MANY MORE

BABSON COLLEGE

Established September 3, 1919 Type Private President Leonard A. Schlesinger Students 3,439 Undergraduates 1,851 Location Wellesley, Massachusetts, United States Coordinates: 421753.63N 711540.29W

HISTORY
Roger Babson on September 3, 1919, as the Babson Institute Businessmen made up the majority of the faculty instead of academics

ACADEMICS

Bachelor of science

MBA

RANKINGS
Ranked #1 in entrepreneurship Ranked #39 overall in the Bloomberg Business week 2012 rankings.

Forbes ranked Babson at #44 among US business schools based on return on investment. Bloomberg Businessweek ranked Babson at #11 among US schools based on return on investment

THE ALUMNI DIRECTORY

ALUMNI CAN REACH TO OTHER

Alumni Business Search

NIESBUD

NIESBUD is an apex institute in the area of entrepreneurship and small business development under the Ministry of Micro, Small & Medium Enterprises, Government of India. The basic objects for which the Institute has been established are : promotion and development of micro, small and medium enterprises including enhancement of their competitiveness through different activities. The Institute has conducted a total of 4,360 Training Programmes covering 1,17,781 participants which includes 146 International Training Programmes with 2,208 participants from ,more than 120 countries till date.

ACTIVITIES
ssisting/supporting EDPs A Training for trainers/promoters Creation & capacity building of EDP Institutions. Small business focus National/international forum for exchange of ideas & expressions. Developing entrepreneurial culture. National entrepreneurship development board (NEDB) Services to affiliate members. Sustaining entrepreneurship

OBJECTIVE

Assisting/supporting EDPs Training for trainers/promoters Creation & capacity building of EDP Institutions. Small business focus National/international forum for exchange of ideas & expressions. Developing entrepreneurial culture. National entrepreneurship development board (NEDB) Services to affiliate members. Sustaining entrepreneurship Objectives:To evolve standardized materials and processes for selection, training,support and sustenance of entrepreneurs, potential and existing. To help/support and affiliate institutions/organizations in carrying outtraining and other entrepreneurship development related activities

To serve as an apex national level resource institute for accelerating the process of entrepreneurship development ensuring its impact across the country and among all strata of the society. To provide vital information and support to trainers , promoters and entrepreneurs by organizing research and documentation relevant to entrepreneurship development. To train trainers, promoters and consultants in various areas of entrepreneurship development. To provide national/international forums for interaction and exchangeof experiences helpful for policy formulation and modification atvarious levels.

To offer consultancy nationally/internationally for promotion of entrepreneurship and small business development. To share internationally experience and expertise in entrepreneurship development. To share experience and expertise in entrepreneurship development across National frontiers

FUNCTIONS

NIESBUD also serves as the secretariat for National Entrepreneurship development Board(NEDB) ,the apex body which determines policy for entrepreneurship development in the country. The institute, therefore, performs the task of processing the recommendations made by the Board. To serve as an apex National level resource institute to accelerate the process of entrepreneurship development ensuring its impact throughout the country among all strata of the society To organize and conduct training programes .

To co-ordinate the training activities of various institutions and organizations in the country imparting training.
To identify potential entrepreneurs from among technical and nontechnical personnel.

To train the potential entrepreneurs who are identified. To assist the potential entrepreneurs who are identified and trained. To hold examinations and test and confer certificates and diplomas on the trainers as well as trainees. To undertake documentations and tests and research in the field of entrepreneurship and small business development. To conduct work-shops, seminars and conferences etc for promotion and development