State any five qualities of a successful entrepreneur

1. Creativity ( the ability to bring something new into existence)

2. Innovation ( the activity involved in brining new into existence)
3. Leadership
4. Teambuilding
5. Achievement motivation
6. Risk taking and decision making ability
7. Commitment
8. Goal orientation
9. Problem solving

Write a note on project report

• For any new project or venture, proper planning is necessary. a detailed project
report provides such a plan for the project. The report is useful to entrepreneur for
planning and implementing the project. It is essential for obtaining finance and
other clearances for the project. The project report gives a detailed insight of the
project and indicates the techno-economic viability of the project.

• The project report is a document created through systematic recording of all the
details about the project, with an analysis ad validation of data/information. This
is the most important document of any project.

• The project report is generally prepared to cover the following seven broad
segments

 Executive summary
 Existing company details(if any)
 Operational details of the existing company(if existing)
 Project details
 The company related industry
 Conclusion
 Annexure
State the functions of an entrepreneur

An entrepreneur does perform all the functions necessary right from the beginning of an
idea up to the establishment of an enterprise. After the establishment of an enterprise, he
undertakes to perform other functions that are essentially needed for diversification,
expansion, maintenance etc.
1. Primary functions: Primary function start with the generation of idea and end with
starting actual production operations. They can be listed in the best suitable idea.

1. Idea generation and scanning of the best suitable idea.

2. Determining business objectives.
3. Product analysis and market research

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 4. Determination of form of ownership or organization
5. Completion of promotional formalities
6. Raising necessary funds needed
7. Recruitment of staff

2. Managerial functions: After the establishment of an enterprise, an entrepreneur has to

perform the managerial functions also. Managerial functions include the function of
coordination, origination and supervision. He combines the services of all factors to reach
the desire goals. While combining the services of different factors, he performs all
managerial functions.

3. Risk bearing function: An entrepreneur is a risk bearing agent. He should be ready to

bear all those risks arising while carrying on business operations. The other name for
business is the existence of uncertainties. The risks arising due to the happening of
uncertainties cause a greater loss when compared with an ordinary risk. Risk due to
uncertainty cannot be insured and it is incalculable also. For instance, risks due to the
possibility of change in the taste, fashion and preference of customers cause great losses.

4. Function of innovation: innovation is an important function of an entrepreneur.

Innovation implies "doing of new things or doing of things that are already being done in
a new way.” Thus, innovation includes the utilization of the results or invention to bring
out new combination of product. They are has follows:

1. Launching of a new product

2. Introduction of new technology
3. Creation of new market
4. Creation of monopoly

5. Other functions: Beside the functions started above the entrepreneur also perform
many other functions. They are:

1. Diversification of production
2. Expansion of the enterprise to suit changing requirement
3. Maintaining cordial employer-employee relationship
4. Solving problems related to human resources
5. Coordinating with the outside shareholders

What is refinance scheme?

Refinance scheme is introduced for catering to the need of funds of Primary Lending
Institutes for financing small-scale industries. Under this scheme, financial institutions
grants refinance against term loans granted by the eligible PLIs (Performance Linked
Incentives) to industrial concerns for setting up industrial projects in the small scale
sector as also for their expansion / modernisation / diversification.
Term loans granted by the PLIs for other specified eligible activities / purposes are also
eligible for refinance.

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Mention the needs of “provisional registration certificate”
(or)
Write a note on provisional registration certificate

• A Provisional registration certificate (PRC) is the initial registration for starting a

small scale industry. It enables the entrepreneur to initiate necessary steps to bring
the unit into existence. The entrepreneur should apply and obtain a PRC after
selection of the project and deciding on the location of unit. A PRC is necessary
for applying for infrastructure facilities such as land, shed etc

• The initial validity of the PRC is for two years and it can be renewed
subsequently, if needed.

• The benefits of getting PRC is as follows,

• Using PRC , firms can obtain term loans and working capital from
financial institutions/banks
• To obtain various necessary No Objection Certificates and clearances
from regulatory bodies such as Pollution Control Board, Labour
Regulations and so on

Permanent Registration Certificate (PMT)

• An SSI can get PMT when it goes into commercial production. In the initial
stages it would have obtained PRC and it would be converted to PMT when the
unit goes into production.

• Permanent registration of tiny units should be renewed after five years

• The benefits of getting PMT is as follows,

• Income-tax exemption and sales tax exemption as per state government
policy.
• Incentives and concessions in power tariff and so on

State the objectives of entrepreneurial training

The important objectives of the entrepreneurial training are as follows

1. Develop and strengthen their entrepreneurial quality i.e. motivation or need for
achievement
2. analyise environmental setup relating to small industry and business
3. select product
4. prepare project for the product
5. understand the process and procedure involved in setting up a small enterprise
6. know the sources of help and support available for starting up small-scale
enterprise

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 7. Acquire the necessary managerial skills required to run a small enterprise
8. knows the pros and cons of becoming an entrepreneur
9. appreciate the needed entrepreneurial discipline

Besides, some of the other important objectives of the entrepreneurial training are to:

• let the entrepreneur himself/herself set or reset the objectives for his/her
business
• prepare himself/herself to accept the uncertainty involved in running a
business
• enable him/her to take decisions
• enable to communicate clearly and effectively
• develop a broad vision about the business
• develop a passion for integrity and honesty

Who is an innovative entrepreneur?

An innovating entrepreneur new is one who introduces new products, inaugurates new
method or process of production, discovers new market and reorganises the enterprise.
Generally, the innovative entrepreneur initiates their actions in any one of the following
forms:
• Introduction of new product or introduction of a new quality to a product
already existing.
• Introduction of a new method
• Exporting a new market
• Discovering a new sources of supply of raw materials or other inputs
• Discovering the new line of distribution

Mention the different types of entrepreneurs

Different authors have classified entrepreneurs on different basis. Thus most popular
classifications have given by Clarance Danhof on the basis of his study on the American
agriculture. Thus, according to his view, entrepreneurs are broadly classified into 4 types:

1. Innovative entrepreneurs
2. Adoptive or imitating entrepreneurs
3. Fabian entrepreneurs
4. Drone entrepreneurs

Further more based on the classification by different authors,

5. According to the type of business handled:

• Business entrepreneur
• Trading Entrepreneur

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 • Industrial Entrepreneur
• Corporate Entrepreneur
• Agricultural Entrepreneur

6. According to the use of technology:

• Technical Entrepreneur
• Non Technical Entrepreneur
• Professional Entrepreneurs

7. According to the motivation:

• Pure Entrepreneurs
• Induced Entrepreneurs
• Motivated Entrepreneurs
• Spontaneous Entrepreneurs

8. According to growth:
• Growth Entrepreneurs
• Super growth entrepreneurs

9. According to the stage of development

• First generation entrepreneurs
• Modern Entrepreneurs
• Classical Entrepreneurs

10. Others Entrepreneurs:

• Innovative Entrepreneurs
• Institutional Entrepreneurs
• Inheritance Entrepreneurs
• Technological Entrepreneurs

Write a note on D.IC.

• District Industries center, this programme was started on May 8, 1978 with a view
to provide administrative framework at the district level for promotion of small
scale industries in rural areas.

• The DIC’s role is mainly promotional and developmental

• Services and support to small entrepreneurs are provided under a single roof
through the DIC’s.

• They are the implementing arm of the central and state government of the various
schemes and Programmes.

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 • Registration of small industries is done at the D.I.C.

Write a note on S.I.D.B.I

Small Industries Development Bank Of India was established in April 1990 under the act
of Indian Parliament as the principal financial institution for
• Promotion
• Financing
• Development of Industry in small-scale sector and
• Coordinating the functions of other institutions engaged in similar activities

Since its inception, SIDBI has been assisting the SSI sector including the tiny, village and
cottage industries through suitable schemes to meet the requirements in setting up new
projects, expansion, diversification, modernisation and rehabilitation of the existing units.

Distinguish between entrepreneur and entrepreneurship

The term ‘entrepreneur’ is often interchangeably with ‘entrepreneurship’ but,

conceptually they are quite different. However these two terms exist wherever a mention
is being made toward an enterprise. They are just like the two sides of a coin. The
following have been identified. The following differences have been identified by many
authorities

Entrepreneur Entrepreneurship

It refers to a person It refers to a function

He is a Visualiser It is a vision

He is a Creator It is a creation

He is an Organiser It is an Organisation

He is an Innovator It is an Innovation

He is a Motivator It is a Motivation

He is a Leader It is a Leadership

He is a risk taker It is a process of risk taking

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