1.

Wealth Creation and Sharing

2. Create Jobs
3. Balanced Regional
Development
4. GDP and Per Capita Income
5. Standard of Living
6. Exports
7. Community Development
1. Expansion: Expansion is one of the forms of
internal growth of business. It means enlargement
or increase in the same line of activity. There are
three common forms of business expansion.
Types:
a.Expansion through Market Penetration.
b.Expansion through Market Development.
c. Expansion through Product Development
and/or Modification.
 Advantages:
(i) Growth through expansion is natural and gradual.
(ii) Enterprise grows without making major changes in its organizational
structure.
(iii) Expansion makes possible the effective utilization of existing
resources of an enterprise.
(iv) Gradual growth of enterprise becomes easily manageable by the
enterprise.
(v) Expansion results in economies of large-scale operations.
Disadvantages:
(i) Growth being gradual is time consuming.
(ii) Expansion in the same line of product delimits enterprise growth
making enterprise unable to take advantages from new business
opportunities.
(iii) The use of modem technology is limited due to the limited resources
at the disposal of enterprise. It weakens the competitive strength of the
enterprise.
2.Diversification: an approach to growth by adding new
products to the existing product line is called ‘diversification’. In
simple terms, diversification may be defined as a process of
adding more products/markets/services to the existing one.
Types
a. Horizontal Diversification.
b. Vertical Diversification.
c. Concentric Diversification.
d. Conglomerate Diversification.
 Advantages:
(i) Diversification helps an enterprise make more effective use of
its resources.
(ii) Diversification also helps minimize risk involved in the
business.
(iii) Diversification adds to the competitive strength of the
business.
(iv) Diversification also enables an enterprise to tide over
business fluctuations and, thus, ensures smooth running of the
business.
Disadvantages:
(i) Diversification involves business reorganization which
requires additional resources. Thus, diversification becomes a
costly proposition.
(ii) It becomes difficult, is not impossible, to effectively manage
and coordinate the diverse business.
 3. Joint venture: The Reserve Bank of India (RBI) has
defined joint venture in the technical sense as: “a foreign concern
formed, registered or incorporated in accordance with the laws and
regulations of the host country in which the India party makes a direct
investment, whether such investment amounts to a majority or
minority shareholding.”
Types
a. Between two Indian organizations in one industry
b. Between two Indian organizations across different industries
c. Between an Indian organization and a foreign organization in India
d. Between an Indian organization and a foreign organization in a third
foreign country
e. Between an Indian organization and a foreign organization in a third
country
 Advantages:
(i) Joint venture reduces risk involved in business.
(ii) It helps increase competitive strength of the business.
(iii) It makes possible the use of advanced technology and
knowhow not available within a firm.
(iv) Joint venture provides the benefits of economy of scale
by reducing production and marketing costs, on the one hand,
and by increasing sales volumes, on the other.
Disadvantages:
(i) In case of lack of proper understanding between the co-
ventures, the functioning of the business is adversely affected.
(ii) Excessive legal restrictions on foreign investments limit
joining hands with foreign firms.
(iii) Sometimes, more equity participation by one or more co-
ventures creates conflicts between them.
 4.Mergers and Acquisitions (M&A) Merger means a
combination of two or more existing enterprises into one. For the
enterprise which acquires another, it is called ‘acquisition.’ For the
enterprise which is acquired, it is called ‘merger.’
BUYER SELLER
(i) To increase the value of (i) To increase the value of
the enterprise’s stock. the owner’s stock and
investment.
(ii) To increase the growth
(ii) To increase the growth
rate and make a good
rate.
investment.
(iii) To acquire resources to
(iii)To balance, compete or stabilize resources.
diversify its product line. (iv) To benefit from the tax
(iv) To reduce legislation.
competition. (v) To deal with top
(v) To avail tax management succession
concessions and benefits. problem.
 Types of Mergers and Acquisitions:
a. Horizontal M&A
b. Vertical M&A
c. Concentric M&A
d. Conglomerate M&A
Advantages:
(i) Facilitate better use of resources.
(ii) Enable sick enterprises to merger into the healthy ones.
(iii) Promote diversification in product line to take
advantages of opportunities available in the particular
business.
Disadvantages:
(i) Larger scale operations often make co-ordination and
control ineffective.
(ii) Sometimes mergers and acquisitions lead to monopoly
in the particular business.
5.Sub-Contracting
A sub-contracting relationship exists when
a company (called a contractor) places an
order with another company (called the
sub-contractee) for the production of parts,
components, sub-assemblies or assemblies
to be incorporated into a product sold by
the contractor. Such orders may include
the processing transformation, or finishing
of material or part by the sub-contractor at
the request of the contractor.
 Advantages:
 (i) It increases production in the fastest way without
making many efforts,
 (ii) Sub-contracting is particularly suitable to
manufacture goods temporarily.
 (iii) It enables the contractor to make use of technical
and managerial abilities of sub-contractors.
 (iv) Despite leading to dependence, sub-contracting
ensures existence of Subcontractors by providing
them business.
 (v) Last but no means the least; sub-contracting
makes the core firms more flexible in their
production.
 Disadvantages:
 (i) It does not ensure the regular and
uninterrupted supply of goods to the core firms,
i.e. contractors which adversely affect the
functioning of the core firms.
 (ii) Goods produced under Sub-contracting system
are often qualitatively inferior.
 (iii) Sub-contracting also delimits the expansion
and diversification of the core firms.
 (iv) A delay in payments, a common feature, by the
contractor to the subcontractors endangers the
very survival of the latter.
6.Franchising: The buyer is called the ‘Franchisee’ the
company that sells rights to its business concept is called
‘Franchiser.’ Thus, franchising can simply be defined as a
form of contractual arrangement in which a retailer
(franchisee) enters into an agreement with a producer
(franchisor) to sell the producer’s goods or services for a
specified fee or commission.
Types of Franchising:
1. Product :2. Manufacturing :3. Business-format :
Advantages:
(i) Buying a franchisee is so far safer than trying to start a
business.
(ii) It reduces chances for failure.
(iii) A well-established franchisee brings with it the very
important advantage of recognition.
(iv) The franchisee has the protected or privileged
rights to franchise within a given area.
Disadvantages:
(i) Franchisees find no room or scope for enjoying
their creativity. They have to work as per the given
format.
(ii) A number of restrictions are also imposed upon
the franchisees.
(iii) Franchisees usually do not have the right to sell
their business to the highest bidder or to leave it to
a member of their family without approval from
the franchisor. (iv) Though the franchisee can
build up goodwill, goodwill still remains the
property of the franchisor.
KEYS TO SUCCESSFUL NETWORKING FOR
ENTREPRENEURS

1. Start with a plan

2. Be selective with your efforts
3. Use the “hostess principle”
4. Make a real connection
5. Build and keep your network
current
6. Pay it forward by helping others to
achieve success
THE IMPORTANCE OF BUSINESS
NETWORKING IN ENTREPRENEURSHIP

Shared Knowledge
Opportunities
Connections
Builds Confidence
Raising Your Profile
NICHE MARKET
The market niche defines the product features
aimed at satisfying specific market needs, as well
as the price range, production quality and the
demographics that it is intended to target.

Benefits of Niche Market:

1.Reduced competition
2.Focusing your efforts
3.Gaining expertise
4.Reducing resources
5.Establishing a toehold
WOMEN ENTREPRENEURS
Women entrepreneur may be defined as a
woman or group of women who initiate, organize,
and run a business enterprise. In terms of
Schumpeterian concept of innovative entrepreneurs,
women who innovate, imitate or adopt a business
activity are called “women entrepreneurs”.
The Government of India (GOI2006) has
defined women entrepreneur as “an enterprise
owned and controlled by a women having a
minimum financial interest of 51 per cent of the
capital and giving at least 51 per cent of the
employment generated in the enterprise to women.”
WOMEN ENTREPRENEURS
Problems of Women Entrepreneurs in India/Challenges
faced by Women Entrepreneurs:
1. Family ties. 2. Male dominated society.
3. Lack of education. 4. Social barriers.
5. Shortage of raw materials. 6. Problem of finance.
7. Tough competition. 8. High cost of production.
9. Low risk-bearing capacity. 10. Limited mobility.
11. Lack of entrepreneurial aptitude. 12. Limited
managerial ability. 13. Legal formalities.
14. Exploitation by middle men. 15. Lack of self-
confidence.
WOMEN ENTREPRENEURS
Functions of Women Entrepreneurs:
1. Exploration of the prospects of starting a
new business enterprise.
2. Undertaking of risks and the handling of
economic uncertainties involved in business.
3. Introduction of innovations or imitation
of innovations.
4. Coordination, administration and
control.
5. Supervision and leadership.
WOMEN ENTREPRENEURS
Measures for Development of Women Entrepreneurs
 Consider women as specific target group for all
developmental programmes.
 Better educational facilities and schemes should be
extended to women folk from government part.
 Adequate training programmes on management skills
to be provided to women community.
 Encourage women’s participation in decision-making.
 Vocational training to be extended to women
community that enables them to understand the
production process and production management.
 Continuous monitoring and improvement of training
programmes.
WOMEN ENTREPRENEURS
 Skill development to be done in women’s polytechnics
and industrial training institutes.
 Training on professional competence and leadership
skill to be extended to women entrepreneurs.
 Training and counselling on a large scale of existing
women entrepreneurs to remove psychological causes
 Counselling through the aid of committed NGOs,
psychologists, managerial experts and technical
personnel should be provided to existing and emerging
women entrepreneurs.
 Making provision of marketing and sales assistance
from government part.
WOMEN ENTREPRENEURS
 Activities in which women are trained should focus
on their marketability and profitability.
 To encourage more passive women entrepreneurs
the Women training programmes should be
organized that taught to recognize her own
psychological needs and express them.
 State finance corporations and financing
institutions should permit by statute to extend
purely trade related finance to women
entrepreneurs.
 Women’s development corporations have to gain
access to open-ended financing.
SELF-HELP GROUP (SHG)
Self-Help Group refers to self-governed, peer
controlled, informal group of people with same socio-
economic background and having a desire to collectively
perform common purposes. SHG is a holistic programme
of micro-enterprises covering all aspects of .....
1.self-employment, 2. organization of the rural poor into
self Help groups and their capacity building, 3. technology,
4. planning of activity clusters, 5. infrastructure build up,
6. credit and marketing.
It is an informal association to enhance the
member’s financial security as primary focus and other
common interest of members such as area development,
awareness, motivation, leadership, training and
associating in other social inter-mediation programmes for
SELF-HELP GROUP (SHG)
the benefit of the entire community.
SHGs have been able to mobilize small savings
either on weekly or monthly basis from persons who
were not expected to have any savings. They have been
able to effectively recycle the resources generated among
the members for meeting the emergent credit needs of
members of the group.
SHG is a group formed by the community women,
which has specific number of members like 15 or 20. In
such a group the poorest women would come together
for emergency, disaster, social reasons, economic support
to each other have ease of conversation, social
interaction and economic interaction.
SELF-HELP GROUP (SHG)
Objectives of SHG:
1. To inculcate the savings and banking habits among
members.
2. To secure them from financial, technical and moral
strengths.
3. To enable availing of loan for productive purposes.
4. To gain economic prosperity through loan/credit.
5. To gain from collective wisdom in organising and
managing their own finance and distributing the
benefits among themselves.
6. To sensitize women of target area for the need of SHG
and its relevance in their empowerment.
7. To create group feeling among women.
SELF-HELP GROUP (SHG)
8. To enhance the confidence and capabilities of women.
9. To develop collective decision making among women.
10. To encourage habit of saving among women and
facilitate the accumulation of their own capital resource
base.
11. To motivate women taking up social responsibilities
particularly related to women development.
12. It acts as the forum for members to provide space
and support to each other.
The SHGs three stages of evolution such as:
I. Group formation. II. Capital formation (through the
revolving fund). iii. Skill development and taking up of
economic activity for income generation.
WOMEN EMPOWERMENT
Women empowerment means
emancipation of women from the vicious grips
of social, economical, political, caste and
gender-based discrimination. It means granting
women the freedom to make life choices.
Empowering women to participate fully in
economic life across all sectors is essential to
building stronger economies, achieve
internationally agreed goals for development
and sustainability, and improve the quality of
life for women, men, families, and communities.
WOMEN EMPOWERMENT
Characteristics of women empowerment.
It is giving power to women. It is making women better
off.
It is a process of acquiring power for women in order
to understand their rights and to perform her
responsibilities towards oneself and others in a most
effective way.
It enables women to organize themselves increase their
self-reliance and it provides greater autonomy.
It means women’s control over material assets
intellectual resources and ideology .
It abolishes all gender base discrimination in all
institutions and structures of society .
WOMEN EMPOWERMENT
It means exposing the oppressive powers of existing
gender social relations.
It enables women to realize their full identity and
powers in all spheres of life.
It provides greater access to knowledge and
resources.
It occurs within sociology , psychological , political
cultural , familial and economic spheres and at
various levels such as individual, group and
community.
It is a process of creating awareness and capacity
building .
 The promotional schemes to develop
women entrepreneurship
1) Mahila Nidhi.
2) Mahila vikas Nidhi
3) WIT ( women India trust).
4) Priyadarshini yojana .
5)Trade-related entrepreneurship assistance and
development ( TREAD).
6)Special programs conducted by the SIDO
( small industries development organization)
7) CWEI ( the consortium of women
entrepreneurs of India)
 The promotional schemes to develop
women entrepreneurship
8) SWEA ( self-employed women association) .
SHG’s ( self-help group)
9) FTWE ( federation of women entrepreneurs)
10) Income generating schemes by Department
of women and child development.
11) KVIC ( khadi villages industries
commission)
12) DIC ( District industrial center )
13) Women cell
14) Women industries fund schemes.