5TH Semester

IEED (IT/DS Dept.)

UNIT-1
Introduction
Concept of creativity, innovation, invention, discovery. Methods for
development of creativity, convergent & divergent thinking etc.
Introduction to Intellectual Property Rights (IPR), Patent and laws related to
patents.
Concept of creativity
Creativity is the characteristic of a person to generate new ideas, alternatives, solutions, and
possibilities in a unique and different way. Creativity is the ability to conceive something unpredictable,
original and unique. It must be expressive, exciting and imaginative.

concept of development of creativity.

In the adolescent stage of development, creativity begins a revolutionary shift that is caused by
the appearance of new powerful mediators, inner speech and abstract thinking. At this stage of
development, creativity changes due to complex inter functional connections between imagination and
abstract thinking.

What are the basic concepts of creativity?

Creativity is the characteristic of a person to generate new ideas, alternatives, solutions, and
possibilities in a unique and different way. Creativity is the ability to conceive something unpredictable,
original and unique. It must be expressive, exciting and imaginative.

How to explain innovation?

Innovation is defined as the process of bringing about new ideas, methods, products, services, or
solutions that have a significant positive impact and value. It involves transforming creative concepts into
tangible outcomes that improve efficiency, and effectiveness, or address unmet needs.

What are the benefits of innovation?

Some of the key practical benefits of innovation are:

• improved productivity.
• reduced costs.
• increased competitiveness.
 • improved brand recognition and value.
• new partnerships and relationships.
• increased turnover and improved profitability.

What is the aim of discovery?

A large part of discovery is to provide a clear purpose and direction to the project and to the team. It's
also about finding the hurdles and pitfalls that might take the project off course, dampen efficiency or cause your
website to depreciate faster.

Project discovery is the initial step of project development (check out other services we offer). It's aimed at collecting
information about the project to identify its Vision, Goals, and Scope. The process of seeing, finding, or gaining
knowledge of something previously unknown, or an instance of this: The university is dedicated to the
discovery, development, communication, and application of knowledge in a wide range of academic and
professional field.
What are the 5 methods of creativity?
The creative process is made up of 5 steps: preparation, incubation, illumination, evaluation, and
implementation.

Which is the best-known method for creativity improvement?

1. Create your own “Three Ifs” Many good innovators take an existing object and ask clever questions to twist
the very concept of it and make it new. ...
2. Practice dreaming. ...
3. Make time for cohesive creative thinking. ...
4. Learn to pitch your ideas (in an elevator) ...
5. Bounce ideas off others.

What are the different types of creativity in entrepreneurship?

What are the four types of creativity?

The four types are deliberate and cognitive, deliberate and emotional, spontaneous and
cognitive, and spontaneous and emotional. These four types are a combination of four components
that are on two spectrums; emotional to cognitive, and deliberate to spontaneous.

convergent &divergent thinking etc.

What is convergence in entrepreneurship?
In business, convergence refers to the trend of businesses moving towards similar goals or
practices. This can be seen in the way that businesses are increasingly using technology to improve
communication and collaboration, as well as the way that they are adopting more globalized approaches
to doing business

What is the diverge and converge technique?

The diverge-and-converge collaboration method has two stages:

1. A diverge stage: Team members work independently to produce individual insights.

2. A converge stage: Team members discuss the results of the diverge phase as a group in order to decide on
some collective output.

Introduction to Intellectual Property Rights (IPR)

What are intellectual property rights in entrepreneurship?

Intellectual Property (IP) systems can be critical in helping new ventures transform their innovation potential and
creativity into market value and competitiveness. Intellectual property rights (IPR) can be used to protect the
technology, brand name, design and creativity behind the concept. Intellectual property rights are the rights given
to persons over the creations of their minds. They usually give the creator an exclusive right over the use of his/her
creation for a certain period of time.

Types of Intellectual Property

IP Protection
Patents Inventions, industrial designs, computer code
Trademarks Unique identifiers for a business or its products or services (e.g., logos, brand names)
Copyrights Works of authorship, including books, poems, films, music, photographs, online content

Small scale industries are very important for the growth of the Indian economy. It has a significant contribution in
the exports, employment generation etc and recorded higher growth than the other industrial units. Therefore, MSME
sector has higher contribution for the development of the economy in the country. Hence, government is making
continuous efforts to exploit the potential of the MSME’s to the fullest but because of the small size these industries
are facing problems in the marketing, production, technology, capital, skilled manpower etc. which leads to the
industrial sickness. Thus, the future of these MSME’s is in dark. It is a matter of concern that how these industries
can be made competitive. The intellectual property rights can be one solution to make these industries competitive
and can help in generating wealth.
3. IPR and MSME’s

Intellectual property is growing out of one’s ideas, thoughts and intellectual creation of the mind. Today Government
is making efforts to increasing its efforts considering its importance for the economy development. IPR means a
number of legal monopolies over creation of the mind, both artistic and commercial, and their use (Raysman, [Link].
1999-2008). In simple words, IPR are the intellects emerged from the human mind and the legal rights on these
human intellects are called as Intellectual Property Rights. These laws are applicable only in the country in which it
is imposed. There is nothing like international patent.

World Intellectual property organization was formed in 1967 as a part of United Nations although it has been in use
since long from 1888. India also has enacted various laws related to Intellectual property from time to time.

In past, only the tangible assets were given importance and there were laws related to the protection of those assets,
but now there are seven forms of IPR, viz. patents, trademarks, copyrights, geographical indications, industrial
designs, trade secrets, integrated circuits, and new plant variety.

Patents

These are the oldest form of the intellectual Property Rights and are enforced to promote technological and
economic development by recognizing the individual’s creativity and intellect. According to the act, patent
is the allowance from the government to the inventors and giving them the exclusive right to make and use
their invention and it is for a limited period of the time. According to the Trade Related Intellectual
Property Rights, this exclusive right is for a period of 20 years and after that Government has the right to
publish it. Government publishes it so that new and better ideas can be generated and the better products
can be made so that old one can be replaced. Intellectuals have the right to commercialise, transfer or to sell
the license of their invention during this time period.

The Indian Patent act, 1970 has classified the patentable inventions as follows:

Process: According to the law, process means new methods of production, research, testing analysis or the
technological process that can be validated as new or unique. These are not the physical objects are in documented
form.

Machines: In the patent law, machines are physical objects. It can be any product, instrument, or any other
physical item that is new or useful.

Manufacture: According to the patent law, manufacture means any physical item has been made up by a new and
unique way or materials.

Composition of matter: Composition of matter in a patent law refers to the mixture of the chemical compounds,
medicines and botanical compositions which are new , unique and are useful and do not exist in the nature in that
particular state.

4.1 The Patent Process

Obtaining patent involves a certain steps as follows:

a. Document Disclosure:
 This is the first step of the process and comes when the inventor discloses his idea in the written. When the idea is
disclose it need to be filed for the patent. This is necessary to protect it and to give it legal recognition so that if
someone steals the idea, there is a written record.

b. Patent Search:

This step involves searching for the validity of the patent whether such patent exists or not. The main objective is
to find that whether the patent to be registered is original or not. Search can be done by the inventor himself/herself
or by the attorney. Patent search includes searching for the resembling patent in the patent room of each office.
This process ends, when it is confirmed that no such patent exists.

c. Patent Application:

Once the patent search is over, inventor fills an application for the registration which includes three parts:

1. First part includes a written document which contains invention, its specification and claim.
2. Second part contains the drawings which need to be clean and clear.
3. Third part includes the declaration and oath by the inventor.

Once the form is completed with all three parts, it is submitted to the Patent office and if they find it complete,
then notification is sent to the inventor.

d. Patent examination:

This step includes the thorough examination by the patent office and informing the inventor about the various
problems of the patent.

e. Patent Grant:

Once the examination is over then after confirmation patent is registered and the letter of the same is sent to the
inventor.

4.2 Types of the Patents:

According to the patent law, patents can be classified as follows:

a. Utility Patents

b. Design Patents

c. Plant Patents

a. Utility Patents: Patents approved for Process, Machines, Manufacture and Composition of matter comes under
this category and is granted for a period of 17 years. This is the most common patent type and excludes botanical
creations related to plants and agricultural use.

b. Design Patents: These are the patents for any new or original ornamental design. When a manufacturer builds a
new ornamental design for any of his product then to avoid its duplicity, he/she applies for design patent. For e.g:
Bicycle manufacturer who manufactures the new design for the bicycles or the shoe companies apply for such
patents. The life of the design patent is very short is from 3.5 to 7 years.

c. Plant Patent: Plant Patent is provided for the plants which are new and unique and do not exist in the nature. It is
also granted for the period of 17 years.
4.3 Who can file for a Patent?

According to the patent law, only the inventor can file for the patent but there are certain other exceptions as per the
law:

a. If the inventor dies before applying for the patent for the invention then his/her executer or legal administrator can
file the Patent

b. If the inventor has become insane or is not is sound condition, then his/her guardian can file for the patent.

c. If there are two or more inventors then they can jointly file the patent and if any of the inventor disappears, then
the joint inventor can file patent on his/her behalf too.

Any person, who files for the patent and is not an inventor or does not come under any category of rules, is subject
to criminal penalties under the law.
 Unit 2
Concept of entrepreneurship, its relations in economic developments, Eventuation of concept of
entrepreneur, characteristics of an entrepreneur, Types of entrepreneurs, Qualities of entrepreneur, Factors
affecting growth of entrepreneurship.
What is entrepreneurship?
Entrepreneurship development is the means of enhancing the knowledge and skill of entrepreneurs through several classroom
coaching and programs, and training. The main point of the development process is to strengthen and increase the number of
entrepreneurs.

Differences Between Employees and Entrepreneurs

Think Like an Entrepreneur –

Listen to others

Observe what successful businesses do and do well

Think – analyze the problem and what service can solve it.

Why be an Entrepreneur?

Disadvantages

o Business failure – responsibility

o Obstacles

o Loneliness

o Financial insecurity

o Long hours/hard work

Advantages

o Control over time

o Creative fulfilling time

o Opportunity to create great wealth

o Control over compensation

1) Pay yourself a salary

2) Pay yourself a wage
3) Take a dividend
4) Take a commission

o Self-evaluation

o Participation in an international community

o Opportunities to help one’s community

Concept of entrepreneurship:
Entrepreneurship is the ability and readiness to develop, organize and run a business enterprise, along with any of its
uncertainties in order to make a profit. The example of entrepreneurship is the starting of new businesses. The document defines
an entrepreneur as an individual who creates a new business and takes on most of the risk and reward. It describes key entrepreneurial
traits like being an innovator, risk-taker, decision-maker, and leader. The entrepreneurial process refers to the sequence of steps and
activities involved in starting and managing a new venture. It encompasses the identification of opportunities, gathering resources,
creating a business plan, launching the venture, and managing its growth and development.

These four key elements of entrepreneurship include innovation, organization, risk and vision. In the following
section, all these elements have been discussed briefly.
Four Key Elements of Entrepreneurship

• Browse more Topics under Introduction to Entrepreneurship. Traits and Characteristics of an Entrepreneur.
...
• Innovation. An entrepreneur is the key source of innovation and variation in an economy. ...
• Risk-Taking. Entrepreneurship and risk-taking go hand in hand. ...
• Vision. ...
• Organization.

Economic developments:
Entrepreneurship and economic development go hand in hand, with innovation acting as a catalyst for growth. Businesses that
prioritize innovation not only create job opportunities but also enhance productivity, foster healthy competition, and generate wealth
Economic relation refers to the interactions and connections between individuals, groups, or societies in terms of their economic
activities and exchanges of goods and services.

What is the function of entrepreneur in relation to economic development?

1. Raising the Standard of Living. One of the most significant benefits of entrepreneurship in economic development, is
that it raises the standard of living. By creating new businesses and jobs, entrepreneurship improves the quality of life
for both individuals and communities, enabling paths for wealth creation.
2. Entrepreneurship development is the process of enhancing entrepreneurial skills and knowledge through structured training
and institution- building programs.

What is the concept of entrepreneur evaluation?

entrepreneur evaluation is a process used by entrepreneurs to measure their own success in terms of the
achievement of their goals. The evaluation process begins with the entrepreneur setting specific goals and
objectives, and then developing a plan to achieve those goals. These four key elements of entrepreneurship include
innovation, organization, risk and vision.

What is evaluation of business concept?

When you have a business idea, it's important to evaluate it carefully to help you determine its viability. A business idea
evaluation typically involves studying market conditions, establishing a target market and analyzing the projected costs of the
new venture

7 Characteristics of a Successful Entrepreneur

• You have a clear vision. ...

• You believe in yourself and your abilities. ...
• You take calculated risks and aren't afraid to fail. ...
• You are relentless in your pursuit of success. ...
• YOU focus on solutions rather than problems. ...
• You have passion for your work.

Characteristics of Entrepreneur

1. An eye for opportunity: Many entrepreneurs start by finding a need and quickly satisfying

it. They are always alert to opportunities. They are very much quick to see and grab
 opportunities. They plan intellectually and anticipate carefully how to achieve their goals in

realizing an opportunity.

2. Independence: Even though most entrepreneurs know how to work within the framework

for the sake of profits, they enjoy being their own boss. They like doing things their own way.

[Link]-confidence: Entrepreneurs must demonstrate extreme self confidence in order to cope with all the
risks of operating their own business. Most successful entrepreneurs are confident of achieving realistic
and challenging goals.
4. They get into business or industry with a high
level of self-confidence. This, couples with a sense of effectiveness ultimately contribute to the success of
the venture.
5. Discipline: Successful entrepreneurs resist the temptation to do what is unimportant or the easiest but
have the ability to think through what is the most essential. Entrepreneurs are economically efficient, do
not like to waste time and they like to see work completed.

Types of entrepreneurship

1. Small businesses entrepreneurship: It is a small-cap business that does not turn into a multi-chain
organization or a large conglomerate. Small-scale entrepreneurship is initiated through bootstrapping,
giving the owner a complete right to profits. In such ventures, entrepreneurs take loans to run the business.
2. Scalable startup entrepreneurship: Such a startup is started with high ambitions, including making
profits and achieving high growth. For such types of entrepreneurship, there is a requirement for huge funds
that require large external investments. These startups aim to compete with established and successful
companies.
3. Intrapreneurship: These are the entrepreneurship in an existing organization. Due to the support of a well-
established organization, these ventures already have facilitators who act as a support to the entrepreneur.
Once the business owner is financially ready, they can start on their own.
4. Large company entrepreneurship: This type of entrepreneurship is suitable for those owners that have
experience of sustaining innovation. Often C-level executives opt for this type of venture. This is the new
division created within an established and larger company to offer new variants of its core products. It is an
adaption to environment expansions.
5. Imitative entrepreneurship: These are based on the idea of existing and successful entrepreneurship. Such
entrepreneurs set their businesses in a manner similar to the venture they follow. Here methods, technology,
and processes are imitated.
6. Social entrepreneurship: These are ventures that do not aim to make profits but aim to benefit society, the
community, and the environment. Such social entrepreneurs work at creating a business that builds
environment-friendly products and services. Here, ethical practices such as conscious consumerism,
corporate social responsibility, and impact investing are followed.
7. Buyer entrepreneurship: Such entrepreneurship are bootstrapped by their owners. Such entrepreneurs use
their funds to buy those businesses that they find successful. The aim is to make more profits and grow their
business. Since entrepreneurs are already buying well-established businesses, this type of entrepreneurship
has less risk.

qualities of an entrepreneur.

• Determination. Determination is an important characteristic of successful entrepreneurs.

 • Self-discipline.
• Self-awareness.
• Curiosity.
• Optimism.
• Passion.
• Decision-making.
• Flexibility and adaptability.

Entrepreneurs are leaders willing to take risk and exercise initiative, taking advantage of market opportunities by
planning, organizing and deploying resources, often by innovating to create new or improving existing products or services.
Entrepreneurship is the pursuit of starting, managing, and scaling a business. Entrepreneurs use innovation, skills, and
vision to develop new products, services, or ideas that meet market demand and create value for a target audience.

What are the factors affecting the business?

These may be external business environment factors including social, political, technological or demographic.
They can also be internal, such as new leadership, poor performance, or conflict. The driving factors are the major
underlying drivers of change in the industry and competitive situations.

What are the four important factors of entrepreneurship?

The main factors contributing to entrepreneurial success are motivation, business capital, entrepreneurial
knowledge, and business networks.

Factors affecting growth of entrepreneurship

• Customer Loyalty. When company leaders strategize about sales growth, the focus is often on how to bring
in new customers. ...
• Smart Adoption of Technology. Technology is like fertilizer for the growth of your business. ...
• Commitment to Employee Training. ...
• Social Responsibility. ...
• Leadership
 Unit-3(IEED)
Theory of achievement, motivation, Medelland’s. experiment, Women entrepreneurship,
Role of SSI,it’s advantages & limitations, policies governing small scale industries, Procedure
to set up small scale industrial unit, Advantages and limitations of SSI.
Theory of achievement:
Achievement goal theory holds that, when performing achievement-related tasks, individuals can fluctuate in their
state of involvement directed toward task or ego goals. That is, they can be more or less task- and ego-involved at any point
during task engagement. Both components of situational motivation (importance and effort) were significantly correlated to
the same 3 achievement goal orientations: mastery approach, performance approach, and work avoidance.

Theory of High Achievement by McClelland

This theory is regarded as the most important psychological theory. McClelland wanted to find the internal factors
that motivate people to take opportunity of the trade.

According to McClelland, a person attains three types of needs as an outcome of one‟s life knowledge.

Three needs are:

• Need for Achievement: A drive to excel, advance and grow.

• Need for Power: A drive to dominate or influence others and situations.
• Need for Affiliation: A drive for friendly and close inter-personal relationships.
• Political System Theory of Entrepreneurial Growth
•
• This theory states that favourable political environment has an impact on the entrepreneurial growth because
stable political system creates infrastructure, promotes policies and encourage people
towards entrepreneurship. Commitment in the political system creates a favourable business environment and
enhances creative and entrepreneurial ability which leads to the entrepreneurial growth in the country.

Entrepreneurial Motivating Factors

Most of the researchers have classified all the factors motivating entrepreneurs into internal and external factors as
follows:
Internal Factors

These include the following factors:

1. Desire to do something new.

2. Become independent.
3. Achieve what one wants to have in life.
4. Be recognized for one’s contribution.
5. One’s educational background.
6. One’s occupational background and experience in the relevant field.

External Factors

These include:

1. Government assistance and support.

2. Availability of labour and raw material.
3. Encouragement from big business houses.
4. Promising demand for the product.

McClelland experiment:

To demonstrate his point, McClelland set up his famous experiment “Fairway Throw”, which involved a group of
people who were asked to throw rings over a peg. If the ring landed through the peg, then they were supposed to be given
rewards.

1. Need for achievement

2. Need for power
3. Need for affiliation
4. Need for avoidance

Women entrepreneurs:

Women entrepreneurs may be defined as a woman or a group of women who initiate, organise and run a
business concern. Women entrepreneurs are those women who think of a business enterprise, initiate it, organise
and combine factors of production, operate the enterprise and undertake risks and handle economic uncertainty
involved in running it.
 Women entrepreneurs may be defined as a woman or a group of women who initiate, organise and run a
business concern.

Schumpeter – “Women entrepreneurs are those women who innovate, initiate or adopt a business activity”.

Government of India – “A woman entrepreneur is defined as an enterprise owned and controlled by a woman
having a minimum financial interest of 51 percent of the capital and giving at least 51 percent of the employment
generated in the enterprise to women.

What is the role of SSI?

The objectives of the small-scale industries are: To create more employment opportunities. To help develop the
rural and less developed regions of the economy. To reduce regional imbalances.20 Jun 2024

Small-scale industries have the following advantages:

• Possibility of a huge workforce.

• Less capital is required.
• Contribution to the output of the industrial sector. ...
• Obtaining foreign currency.
• Distribution that is fair.
• Make use of local resources.
• Entrepreneurial opportunities.
• Cost-effectiveness.

limitations of Small Scale Industries:

Lack of Economies of Scale: They often cannot take advantage of bulk purchasing, production efficiencies, and
cost savings that larger companies can enjoy. This results in higher production costs, lower profit margins, and reduced
competitiveness in the market. Small scale industries face challenges in achieving economies of scale. They often cannot
take advantage of bulk purchasing, production efficiencies, and cost savings that larger companies can enjoy. This results in
higher production costs, lower profit margins, and reduced competitiveness in the market.

What are the Government Policies of small scale industry?

While the small scale sector (other than 'Tiny Enterprises') would be mainly entitled to one-time benefits
(like preference in land allocation/power connection, access to facilities for skill/technology upgradation),

Procedure to set up small scale industrial unit:

The entrepreneur must receive the specified application from the DIC or Directorate of Industries for provisional
registration.
What is the procedure to start an industry.
Starting a business can seem like a lot, but following these steps will help make sure you're successful:

1. Make a business plan.

2. Secure funding.
3. Surround yourself with the right people.
4. Follow the right legal procedures.
5. Establish a location.
6. Develop a marketing plan.
7. Build your customer base.
8. Plan to change.
financial management and budgeting.
A financial budget offers a strategic overview of how a business manages cash flow, assets, expenses, and income. It
establishes a comprehensive overview of revenue from core operations relative to spending via a comprehensive
documentary picture of a company's financial health.

What are the 4 types of financial management explain?

Most financial management plans will break them down into four elements commonly recognised in financial
management. These four elements are planning, controlling, organising & directing, and decision making.
With a structure and plan that follows this, a business may find that it isn't as overwhelming as it seems.
define DIC

DISTRICT INDUSTRIES CENTRES The District Industries Centre is the institution at the District level, which provides all the
services and support facilities to the entrepreneurs for setting up Micro, Small and Medium Enterprises.

Small-scale industries
Small Scale Industries (SSI) are industries that manufacture, produce and render services on a small or micro scale level. In
India, several SSIs exists in various fields such as handicrafts, toys, weaving, pickle making, food products, etc

What are the advantages of SSI?

Small-scale industries have the following advantages:

• Possibility of a huge workforce. ...

• Less capital is required. ...
• Contribution to the output of the industrial sector. ...
• Obtaining foreign currency. ...
• Distribution that is fair. ...
• Make use of local resources. ...
• Entrepreneurial opportunities. ...
• Cost-effectiveness.

What are the 10 advantages of industries?

What are the benefits of industrialization?

• The import-export market. ...

• Availability of goods. ...
• Affordability of goods. ...
• Increased jobs. ...
• Improved medical care. ...
• Global warming and climate change. ...
• Increased income disparity. ...
• Potentially hazardous working conditions.

How do you do small scale industries?

The SSI can be established as a sole proprietorship firm, partnership or company. Next, entrepreneurs
must decide whether the SSI will venture into manufacturing or provide service, the product/product range
that needs to be manufactured and the quantity of production of products or the service that will be
provided

The entrepreneur must receive the specified application from the DIC or Directorate of Industries for provisional
registration. This will allow the entrepreneur to take advantage of numerous government facilities, incentives, and
assistance programmes, such as financial help from NSIC/SFCs/KVIC.

What is registration of small-scale industries?

The Directorate of Industries of the State Government, on behalf of the Ministry of Micro, Small, and
Medium Enterprises, facilitates SSI Registration. Maintaining data and a list of SSI companies in India is the
primary goal of SSI registration, as it enables the provision of support services and incentives.
Some of the Government Policies for development and promotion of Small-Scale Industries in India are: 1. Industrial Policy
Resolution (IPR) 1948, 2. Industrial Policy Resolution (IPR) 1956, 3. Industrial Policy Resolution (IPR).

What is the Government policy of SSIs?

Government policies regarding SSIs include a wide range of topics, including financial assistance, the creation of
infrastructure, the establishment of regulatory frameworks, the improvement of skills, and market access.

What are the benefits of SSIS?

It automates the process of data loading into your data warehouse or operational system. It gives much better
performance in loading and transformation process than hand-coded or manual solutions. The objects in ETL tool
are reusable.
What is the role of SSIS in economic development?
Small scale industries can help maintain regional balance by providing employment opportunities in various
regions, reducing the need for migration. Shorter Production Time: Small scale industries have a quicker
production cycle compared to large scale industries. This can facilitate the flow of money in the economy.
 Unit-4
Factors governing project selection, Market survey, Preparation of project report. Financial, technical &
market analysis of project. Entrepreneurial support systems, Role of consultancy organization like, District
Industrial Centre, State Industrial Development Corporation, Financial institution, Latest SSI schemes
of DIC (to be confirmed from DIC from time to time.
Factors governing project selection:
Project selection criteria are unique to each business and project. Some project selection models include constrained
optimization methods and benefit measurement methods.

When selecting a project, project managers consider many factors, including:

• Budget: The project's costs

• Time: How long it will take to complete the project

• Resources: The availability of people and teams, and the technical skills of the team
• Risk: The potential risks associated with the project
• Benefits: The project's potential benefits or return on investment (ROI)
• Strategic alignment: How well the project fits with the organization's strategy
• Payback period: How long it will take to recoup the project's costs from the savings it generates
• Feasibility: Whether the project is feasible to undertake
• Collaboration: How well the project team works together to achieve the project's goals
Market survey: A market survey is a research method that involves gathering information from a target audience to gain
insights into their preferences, experiences, and opinions. Market surveys are a popular way to collect primary research,
which is data that a business collects itself.

PREPARATION OF PROJECT REPORT

After the preparation of a business plan by evaluating a business idea, the next step is to garner financial support. For
bringing in financial support an entrepreneur requires to submit a detailed project report which should cover the

following basic aspect.

• Information about the promoters of the enterprise

• Information about the basic objective of the enterprise

• Information about the product and the processes involved

• Location of the enterprise

• Size of investments

• Estimated cost of the project and ability of financing thereof

• Technical arrangements

• Information about environmental concerns

• Profitability projections and cash flows

Entrepreneurial support systems: A strong support system is important for entrepreneurs to turn their ideas into
successful businesses. It's recommended to develop a support system early in the growth of a business, and to make it
developmental rather than just financial.

An entrepreneurial support system is a platform that helps entrepreneurs start and grow their businesses. It can
include:
 • Financial support: Schemes, concessions, and incentives
• Policy initiatives: Programs to generate employment, disperse industries, and earn foreign exchange
• Districts Industries Centers (DICs): Provide credit facilities, machinery, and equipment
• Export promotion facilities:
• Support small businesses
Some other organizations that support entrepreneurs include:

• Small Industrial Development Bank of India (SIDBI)

• National Bank for Agriculture and Rural Development (NABARD)
• National Industrial Development Corporation (NIDC)
• Entrepreneurship Development Institute of India (EDII)

A District Industrial Centre (DIC) is a consultancy organization that helps promote industries in a state and create
employment opportunities:

• Industrial development: DICs help develop and expand industrial clusters, and prepare action plans for
industrial development. They also conduct surveys to assess a district's industrial potential.
• Entrepreneurship: DICs help identify and support new entrepreneurs, and provide guidance on procuring
machinery, equipment, and raw materials. They also organize training programs for artisans.
• Credit facilities: DICs help arrange credit facilities and provide financial support to small units. They also
support loan applications for small and medium-sized enterprises (SMEs).
• Marketing: DICs help entrepreneurs develop marketing strategies.
• Technology: DICs maintain links with research and development institutions to help improve quality and
technology.
• Economic investigation: DICs perform economic investigations.
• Raw materials: DICs provide raw materials.
• Single-window clearance: DICs act as a single-window clearance system.
• Rural areas: DICs help establish industries in rural areas
State Industrial Development Corporations (SIDCs) are state-owned government corporations that promote and
develop medium and large industries. Their main goal is to increase industrialization in India. SIDCs do this by:

• Developing industrial infrastructure, such as industrial parks and estates

• Providing financial assistance
• Setting up industrial projects

Here are some examples of SIDCs:

• Maharashtra Industrial Development Corporation (MIDC)

Established in 1962, MIDC is the state government's nodal investment promotion agency.

• Kerala State Industrial Development Corporation (KSIDC)

KSIDC helps formulate industrial development policies, provides venture capital support, and is involved in
development financing.
• Madhya Pradesh State Industrial Development Corporation Limited (MPSIDC)
MPSIDC is the nodal agency for industrial growth in the state. It coordinates, activates, and ensures
implementation of mega infrastructure projects.
• Rajasthan Financial Corporation (RFC)
Established in 1955 by the Rajasthan government, RFC is a state-owned long-term lending and development
finance company. Small and medium-sized firms can get loans from this institution.

The main objects of the DIC programme are firstly to make available various assistance and clearance required
under one roof and secondly to promote rural industries.

Following are the schemes under District Industries Centre (DIC):

1. Prime Minister’s Employment Generation Program (PMEGP)

The objective of this centrally sponsored scheme of Ministry of Micro, Small & Medium Enterprises,
Government of India being implemented since October, 2008 is to provide gainful employment and self-
employment opportunities to educated unemployed persons through activity of industry, service and
business.

2. Seed Money Scheme

The objective of the scheme is to encourage an unemployed person to take up self-employment ventures
through industry, service and business, by providing soft loans to meet part of the margin money to avail
institutional finance.

3. DIC Loan Scheme

The objective of the scheme is to generate employment opportunities including self-employment to tiny
units located in towns and rural areas having population of less than 1 lakh and with investment in plant &
machinery below ₹ 2 Lakhs. Such identified tiny units falling within the purview of the Small Scale
Industries Board and Village Industries, handicrafts, handlooms, Silk & Coir Industries are covered for
financial assistance in the form of margin/seed money under the Scheme.

4. Entrepreneurship Development Training Program

This scheme was introduced with the objective of training educated unemployed persons to take up self-
employment ventures or skilled wage employment. Entrepreneurs are given guidance related to
industry/service/business activities & skill upgradation. Entrepreneurs are also guided in respect of choice
of activity, necessities of land, project report, obtaining various no objection certificates, licences and
marketing strategy.

5. District Award Schemes

In order to encourage entrepreneurs establishing small scale ventures and also to acknowledge them for
their success and achievements, the State Government has started honouring such entrepreneurs with
District Award Scheme at the district level. Proprietors / Partner’s / Directors of enterprises who have
obtained EM registration with the concerned District Industries Centre at least three years earlier and in
production for two continuous years are eligible for the award.
 Unit-5
Sources of funding for startups (e.g., bootstrapping, angel investors, venture capital), Financial
management and budgeting, Pitching to investors and raising capital, Grants and government support programs

Sources of funding for startups:

The Best Startup Funding Options by Stage

• Bootstrapping.
• Friends, family and fools.
• Loans and Government Grants.
• Angel investors.
• Incubators and Accelerators.

How To Get Funding To Start a Business: Equity Financing

• Crowdfunding for Start-Up Business Funding. Crowdfunding is a relative newcomer to the start-up scene
• Angel Investors.
• Venture Capital.
• Banks and Commercial Lenders.
• Government Grants and Loans.
• Friends and Family as a Source of Funding.
• Bonds

Financial management and budgeting:

Financial budgeting is the process of planning company expenses and revenues for a time period. Budgets set forth the
plans of management in financial terms. This includes allocating financial resources and identifying available cash flows for
required spending.

With a financial plan, you typically track your progress on a quarterly or semi-annual basis. With a budget, you record
your income and expenses on a weekly or monthly basis. Generally, the closer you stick to your budget, the more progress
you will make on your financial plan.

What are the 4 types of financial management explain.

Most financial management plans will break them down into four elements commonly recognised in financial
management. These four elements are planning, controlling, organising & directing, and decision making.
With a structure and plan that follows this, a business may find that it isn't as overwhelming as it seems.

Pitching to investors is a way to present a company or product to potential investors to convince them to fund the
business. Here are some tips for pitching to investors:

• Prepare a pitch deck

o A pitch deck is a presentation that gives an overview of the company and its business plan. It's a
crucial tool for any business seeking funding.
• Tailor your pitch
• Tailor your pitch to resonate with the specific interests and goals of each investor.
• Have a clear value proposition
• Your value proposition is what makes your business unique and enticing to investors.
• Emphasize the benefits
• Investors want to make a profit out of the business, so emphasize the benefits.
• Include a market analysis
• A market analysis is an essential part of your pitch deck. It's helpful to have all relevant information
structured and ready for the fundraising process.
• Calculate your financial needs
 • Determine how much money you actually need and set a target funding amount.
• Larn about the investors
• Before meeting with an investor, learn as much as possible about them and prepare 3-5 key points to
convey.
• Ask for their opinion
• Ask the investors for their opinion.

How to make a pitch to investors

• Deliver your elevator pitch.

• Tell your story.
• Show your market research.
• Introduce and demonstrate your product or service.
• Explain the revenue and business model.
• Clarify how you will attract business.
• Pitch your team.
• Explain your financial projections.

How to prepare a pitch for investors?

1. Give a Detailed Introduction. As they say, 'first impression is the last impression. ...
2. Keep Your Emphasis on the Benefits. Investors put their money into a business for the ultimate reason –
they want to make a profit out of it.
3. Let the Figures Speak.
4. Talk about the Dream Team.
5. Ask for Their Opinion.

Grants and government support programs:

Government grants are assistance by government in the form of transfers of resources to an entity in
return for past or future compliance with certain conditions relating to the operating activities of the entity.

Examples of different types include government grants for housing and dental implants. Grants applications require
extensive planning and work, and they are very competitive. Law or governing agencies determine the amount of funding
for each grant, the types of projects that require funding, and the terms of the grant.

Startup India Seed Fund Scheme (SISFS) provides financial assistance to startups for proof of concept, prototype
development, product trials, market-entry, and commercialization. Eligible startups can apply for the scheme on the
Startup India portal.