Assignment Code: BTMC-134/TMA/2022-23

Course Code: BTMC-134

Assignment Name: Entrepreneurship and Small Business

Year: 2022-2023

Verification Status: Verified by Professor

Assignment A

Answer the following in about 500 words each.

Q1) Discuss the various sources of generating business ideas and the process of scanning, screening and selecting a workable business idea.

Ans) The first step to becoming an entrepreneur is coming up with a business idea.

There are 12 main sources which inspires good ideas for business.

Observations and Personal Experiences: Work experience helps people understand how trends and needs change in their own industries and those that are related to them. It also gives them a unique perspective on a wide range of operational and management issues, from customer problems to competitive resources.

Friends, Family Members, and other Close People: A close friend, family member, or relative who is doing well in his or her own business or is a successful manager at a well-known company could be another source of business ideas. If this person has a big impact on how you think and act, it could help you come up with a good business idea so you can start your own business.

Personal Intention: As a possible entrepreneur, you can use your skills and experiences to come up with business ideas You should also decide what kind of business you want to start. Your determination will show how serious you are about the project.

Professional Consultants and Advisors: Professional advice will help the person do better in that business for sure.

Sales Force and Business Executives: The Sales Force and Business Executives are the people who deal directly with dealers and customers. To stay in the market for a long time, you need to keep coming up with new ideas and making changes.

Channels of Distribution: Distribution channels are just as important to a new business idea as the Sales Force and the Business Executive. Agents, retailers, and dealers all give their thoughts on how much demand there is for the product and what the future holds for it. These are very helpful for coming up with new business ideas.

Consumer feedback: The needs and wants of the customer are another part of a new business. Because of this, business ideas come from what the customer wants and needs. When you get to know your potential customers better through a survey, they are more likely to tell you about their problems and needs, which can give you new business ideas.

The Internet, the Newspaper, Magazines, and Books: Newspapers, magazines, books, and the Internet are all great ways to find out about great business ideas. They give information about how business opportunities have changed in the past and how they are changing now. So, the business owner needs to keep a close eye on these media sources.

Shows and Trade Fairs: Exhibitions and trade fairs are one of the best places to get ideas for new businesses. Here, you can meet a lot of people who have great business ideas and want to start their own business.

Research and Development on Products already on the Market: The business owner can do research and development on the products he or she already sells. Another option is to come up with a product or service that has never been sold before.

Meetings to Come Up with Ideas: Brainstorming is a great way to come up with new ideas for a business. Everyone in the group should be treated the same, and everyone's ideas should be listened to.

Market Trends in the Last Few Years: In the world we live in now, social media is how we find out about the latest trends in the market. This is a big source of business ideas in and of itself. You need to keep up with what's going on in the world and how the market is changing.

Q2) What role do entrepreneurs associations play in the development of entrepreneurship? Discuss the various financial and non-financial entrepreneurial support systems.

Ans) A group of people who have come together to help a common cause is called an association. They have a common goal and a mission that most people agree with. Now, a group of business owners who get together is called an entrepreneur’s association. In reality, these associations for business owners do play an important role in giving their members support.

But most of the time, only business owners who are members of the association can get help. There are a lot of examples of business groups in our towns and cities. Most cities have groups for taxi drivers, truck drivers, street vendors, hotel owners, tourism businesses, and so on. All of them are part of a group for business owners. These groups are very close to the entrepreneurs because they are easy to reach and have answers to the many problems they face. Also, they can work together to fight against rules and regulations made by the government that hurt their growth and progress.

So, entrepreneurs' groups exist because of things like government interference, unfair rules, competition, huge, unfairly priced raw materials, and so on. Overall, they act as a regulatory powerhouse in a competitive business environment, bring awareness to and empower disadvantaged groups, especially women and young people, make it easier for small business owners to get bank loans, spread the word about perfect price competition, and set up good networking between demand and supply (United Nations Report on Entrepreneurship).

Non-governmental organisations also help entrepreneurs by creating local jobs for unemployed youths and women, regulating environmental issues, which affects the business culture of the entrepreneur, helping and helping the genuine entrepreneur who doesn't have enough money, which helps the economically weaker sections, and influencing government policies to help entrepreneurs.

Along with associations and non-governmental organisations, entrepreneurial incubators offer both financial and non-financial support systems for entrepreneurs. The incubators are basically a set and well-defined environment in which new businesses can start, grow, and develop. They have all the amenities that entrepreneurs need to grow their businesses, and entrepreneurs can use these amenities when they first start their businesses.

Entrepreneurial incubators also offer entrepreneurs a lot of advice and help with things like marketing, human resources, technology, and so on. When all of these things are put together, they make sure that a business will be a success. In India, Amity Innovation Incubator, Angel Prime, and IAN Incubator are all examples of incubators.

Financial Entrepreneurial Support Systems: The main way to look at the financial side is in terms of the money that was put into the business in the beginning. The next step is to invest more capital as the business grows, based on what it needs and what it wants. Example: NABARD, Commercial Banks, SIDBI, Mudra Loans, Regional rural banks, state financial corporations and cooperative banks.

Non-Financial Entrepreneurial Support System: It's important to remember that money alone can't make a business grow and succeed. Training and learning, motivation, and consultancy.

Assignment B

Answer the following questions in about 250 words each.

Q3) What is the significance of entrepreneurship? Explain the elements of entrepreneurship.

Ans) The significance or importance of entrepreneurship is stated below:

Creating Job Opportunities: Being an entrepreneur helps create job opportunities. It gives low-skilled workers the entry-level jobs they need to learn new skills or get more experience. Small businesses are the only type of business that creates a lot of jobs every year. Also, entrepreneurial businesses train and supply experienced workers to big businesses.

Gives New Ideas a Boost: Entrepreneurship fosters innovation, which brings new businesses, products, technologies, markets, quality of goods, etc. to the economy, which raises the national income and people's standard of living.

Impact on Community Development: Being an entrepreneur makes a community more stable and improves the quality of life there. A community does better when it has many different kinds of jobs.

Entrepreneurship: Entrepreneurship raises the standard of living because it lets people use new ideas to make a lot of different products and services. In the end, entrepreneurship helps the people of a country live better.

Encourages Research and Development: Entrepreneurship gives universities and other research institutions the money they need to do research and development. This is good for the economy as a whole because it helps research and development.

Elements

1. Innovation: Innovation means doing something new or different; turning creative ideas into useful applications.

2. Taking Risks: Entrepreneurship is the willingness to take calculated risks with confidence in order to reach a goal that has already been set. So, taking risks and being an entrepreneur go hand in hand.

3. Vision: One of the most important things that drives an entrepreneur is his or her vision or foresight.

4. Organization: An entrepreneur must be able to keep track of his money, his employees, his resources, and so on. So, being able to organise things is one of the most important parts of being an entrepreneur.

5. Perseverance: The ability to keep going is important because if an entrepreneur gives up, that's the end of the journey.

Q4) Discuss the process and technique of creativity.

Ans) process and technique of creativity as follows:

Stages of Creativity Process

1. Research for Information: Getting enough information or knowledge about the problem and possible solutions. Then, idea/ideas are made.

2. Test and incubate: The second step are to test the idea(s) for its possible results, which is called incubation.

3. Evaluate: In the third step, the idea is checked to see if it can make money.

4. Implementation: Once the business is found to be viable, the idea must be put into action for it to be successful on a large scale.

Techniques of Creativity

Brainstorming: Alex F. Osborn came up with this method in 1957. Brainstorming is when a group of people come up with a lot of different good ideas about a problem without criticising each other. Each idea is then judged on its pros and cons.

Six Thinking Hats is a method created by Edward de Bono that encourages you to look at a problem or opportunity from six different points of view instead of just one. In this method, people are told to put on different coloured hats and think and act based on what each colour means. This helps keep people from different backgrounds from having different ideas about a problem or an opportunity.

Mind-mapping: Tony Buzan came up with this method, which is also called a spider diagram and is used to show ideas and notes in a continuous tree diagram.

Lateral thinking is a term that was made up by Edward de Bono in 1967. He says that problems can be solved in non-traditional ways.

Q5) Explain the financial aspects of Project report appraisal by an external agency.

Ans) The focus of Financial Appraisal is on figuring out if the Project can be paid for. Based on how the project looks from a financial point of view, the following financial aspects of the project are looked at by the financial institutions.

Capital Cost of the Project:

1. Land & site development.

2. Buildings.

3. Plant and equipment.

4. Fees for engineering and consulting.

5. Misc. Stable assets.

6. Costs before and before the surgery.

7. Plan for the unexpected.

8. Working capital is money from the margin.

Sources of Funds

1. Contribution to equity.

2. Venture capital participation as equity.

3. Long-term loans from the public that are paid back over time.

4. Long-term loans come from a bank or other institution.

5. Borrowings from friends, family, and other people.

6. Government help in the form of subsidies, seed money, etc.

Production/ Sales Estimation

1. Survey of Consumers.

2. The sales force's view.

3. The Delphi method/expert opinion.

4. Numbers and time series.

5. Smoothing by a power law.

Production Cost

1. Raw Material & discount available on bulk purchasing

2. Overhead & Margin

3. Freight Expenses

4. Tools & Techniques adopted

5. Cost of quality

6. Suppliers compliance

7. Labour Cost

Working Capital Requirements and Sources of Working Capital

1. Nature of the business

2. Production policy and industrial seasonality

3. Competition level in the industry

4. Credit policy of the enterprise

5. Growth & expansion policy of the enterprise

6. Supply condition of Raw Material

7. Tax rate

8. Dividend policy & retention policy

Assignment C

Answer the following in about 100 words each.

Q6) What are the barriers to effective communication?

Ans) Semantic Barriers: These are problems and roadblocks in the process of putting a message into words or impressions and taking it back out again. Most of the time, these barriers are caused by using the wrong words, bad translations, different ways of looking at things, etc.

Psychological Barriers: Both the person who sends and the person who receives a message are affected by their state of mind. When someone is worried, they can't communicate well, and when someone is angry, they can't understand the message well.

Organizational Barriers: The structure of an organisation, rules and regulations that are hard to bend, and complicated procedures can sometimes make it hard to communicate effectively. People might not be encouraged to talk freely in an organisation with a lot of centralised power.

Personal Barriers: Both the sender and the receiver may have things that get in the way of good communication.

Q7) What is a Business Plan? What is its significance?

Ans) A business plan is a written document that shows an entrepreneur step-by-step how to turn a business idea into a successful business venture or enterprise. In simple terms, it's a written explanation of what a business owner wants to do, what he or she hopes to get out of it, and how they plan to get there. A business plan is a very important thing for an entrepreneur to make. The main reason to write a business plan is to reduce worries and stress while running a business. The business plan mainly does two things. First, and most importantly, the business plan is like a map. It shows the direction of a business. It also talks about the organization's goals, where it wants to be, and how the goals will be reached. The second purpose of a business plan is to show it to different people in order to get their approval.

Q8) How are conflicts in family business resolved?

Ans) The Family Business Review says that there are five ways to solve any kind of conflict. These are: Competition strategy imposes or forces solutions by using power, so it probably won't solve many business and family problems completely. The accommodation strategy is based on caring a lot about other people and not caring much about yourself. This method can help family businesses work out their differences. But it isn't used very often. Collaboration is an approach that tries to consider the needs of everyone involved. It can make a big difference for both the family and the business. In a compromise, each side gives up something so that everyone is happy with the end result. In this case, though, no one is fully happy. Avoidance is not dealing with a problem, either by denying it or putting it out of your mind. It keeps people from fighting right away, but over time, it makes people angry, which usually has bad results.

Q9) Briefly state the various sources of finance available to an entrepreneurial start-up?

Ans) Money is what keeps a business going. Every business needs money to keep going. Every new business needs access to capital, whether it's to pay for product development, the initial launch, buying inventory, or that first employee. No matter how the economy is doing, it can be hard to get money. Funding depends a lot on what kind of business it is and what it does. There are many other things to do, but none of them are easy. For every other source of funding, start-ups have to sell themselves more than they have to sell their product.

Self-funding/bootstrapping, crowd funding, angel investment, venture capital, commercial banks,SIDBI Loans, Microfinance providers or NBFCs and government programs are the sources of finance for start-ups.

Q10) What is the importance of management in small businesses?

Ans) The most important part of running a business is making sure everyone works together. the resources, especially the people, so that the goal can be reached (s) could be done. Putting together different teams and making sure they work well together is the most important thing for a small business to do well. Management tries to use resources as well as possible so that the best of it is possible to get the resources. A good cost-benefit analysis is a sign of good management. It hopes at cutting costs and making the organisation more profitable. Management makes it possible to hire the right people to work in and for organisation. With careful planning and organisation, they not only get the customers, but they also get the job done. but also get more customers, which will lead to success in the long run. and success in the business world. Good management helps people get along well with each other. organisation. This boosts the morale of the people, which makes them more likely to their level of work.