ModelQuest

ionPaper
-1 Wi
thAnswer
s 18cs51
MANAGEMENTANDENTREPRENEURSHI PFORI TI
NDUSTRY

(1a) DEFI NEMANAGEMENT.EXPLAINCHARACTERISTICSOFMANAGEMENT?

Ans. Managementi safuncti
onofgui danceandl eadershi
pcont
rolofef
for
tsofagr
oupori
ndi
vi
dual
sin
ordert
oachi evegoal
sofanorganizat
ion.
Thefollowingaresomeoftheimportantcharacterist
icsofmanagement.
1.Itshoul
dbestabl
e

2.I
tshoul
dbeappl
i
cabl
etoal
lki
ndsofor
gani
zat
ions.

3.I
tshoul
dbet
ranspar
ent
.

4.I
tappr
oachesar
etobecl
earandgoal
ori
ent
ed.

5.I
tshoul
dbesi
mpl
eyetef
fect
ive.

6.I
tshouldberesponsi
blet
omanyext er
nal
elementsli
keeconomi
c,t
echnol
ogi
cal
,soci
al,
pol
it
ical
andethicalf
act
orsthataf
fect
stheareaofoperat
ion.

7.I
tshoul
dhav
egoodpl
anni
ng.

8.I
tshoul
dpr
ovi
deconduci
veat
mospher
eofwor
k.

(1b) EXPLAI
NNATUREOFPLANNI NGANDI TSI
MPORTANCEI NPLANNING ?
Ans.Natur
eofPlanni
ngindicatesessent
ialqual
ityorgeneralchar
acteri
sti
csofPl
anni
ng.
Anypl
anningi
nvolv
esf ouressent
ialquali
ties.
i I
tmustcont ri
butestoaccompl i
shpur poseandobjecti
ves.

i
i I
tmustbeconsi
der
edaspar
entexer
cisei
nal
lpr
ocesses.

i
i
i I
tmustbespr
eadt
hroughal
lmanagementf
unct
ions

i
v Itmustbeeff
ici
entinsuchamannersoast oachievethedesignedgoal
sattheleastcost
.
ImportanceofPl anni
ng
1.Itovercomesuncertai
ntyandmi ni
mizestherisk.
Planni
ngal l
owsmanager sandor gani
zati
ontomi ni
mizeriskanduncert
aint
y .I
nady nami
csociet
y,
planni
nghel psthemanagertocopewi thandprepareforthechangi
ngenv i
ronment.

2.I
tfaci
li
tat
esef
fect
ivecontr
ol
I
nplanni
ng, t
hemanagersetthegoal
sanddevel
opsplanstoaccompli
shthesegoal
s.Thesegoal
sand
pl
ansthenbecomestandar
dsorbenchmarksagai
nstwhichperf
ormancecanbemeasured.

3.Itfocusesatt
enti
onandconcentrat
iononlyontheobjecti
vesofenterpr
ise
Planninghelpsthemanagert
ofocusat t
enti
onontheorganizat
ion’
sgoalsandacti
vit
ies.Thi
smakei
t
easiertoapplyandcoor
dinat
etheresourcesoft
heorganizati
onmor eeconomical
l
y.

4.Itmakeseconomicoperati
onsandleadstosuccess.
Planni
ngleadstosuccessbydoi
ngtheworkaspert heplan.Ther
ewi
l
lbenoconf
usi
ons.Thi
sresul
tsi
n
economicaloper
ati
onsandreducesuncoat
edexpenditur
e.

5.Trai
nexecut
ives:
Planni
ngisanexcel
lentmeansf
ortrai
ningexecut
ives.
Theybecomeinvolv
edintheact
ivi
ti
esoftheorganizat
ion.

6.Itfor
mst hebri
dgebetweenthepresentandthef
uture
Plansbridgegapbet
weenpresentandfuture.
Apr opersyst
emati
cplanfor
mst hebri
dgebetweenthesetwo.

(
2a) EXPLAI
NCONTRI ONOF F
BUTI .
W TAYLORTOTHETHEORYOFMANAGEMENT?

Ans. 1.TimeandMotionStudy:Tay
lorthoughtwasthatnooneknewhowmuchworkitwasreasonabl
e
toexpectamantodo.He,t
herefor
estar
tedtimeandmot ionst
udy,
underwhi
cheachmoti
onofajobwas
tobetimedwit
hthehel
pofast opwatchandshorterandfewermoti
onweret
obedevel
oped.Thusthe
bestwayofdoi
ngajobwasf ound.

Fazi
lShai
khPage1
2.Differ
entialPayment:Taylori
ntr
oducedanewpay mentpl ancal
ledthedif
ferenti
alpi
ecewor k,
inwhich
helinkedincenti
veswithproduct
ion.Underthi
splanawor kerr
ecei
vedlowpr i
cer at
eifheproducedthe
standardnumberofpi ecesandhighrateifhesurpassedthestandard.Tay
lorthoughtthatt
heat t
ract
ionof
hi
ghpi eceratewouldmot i
vateworkerstoincr
easepr oducti
on.

3.Dr ast
icReorganisat
ionofSuper vi
sion:
Tay l
orsuggestedtwonewconcept s:
(i
)separationofplanni
nganddoi ng
(i
i)functi
onalfor
emanshi p.
Tay l
orsuggestedthatthewor kshoul
dbepl annedbyaf oremanandnotbyt
heworker
.Fur
ther
,hesaidthat
thereshouldbeasmanyf or
emenast herearespeci
alfuncti
onsi
nvol
vedindoi
ngajobandeachofthese
foremenshouldgi veorderstotheworkeronhisspecial
ity
.

4.Sci
entif
icRecr
uit
mentandTrai
ning:Tayl
oremphasizedtheneedf orsci
ent
if
icselecti
onand
devel
opmentoftheworker
.Hesai
dt hatt
hemanagementshoul ddevelopandtrai
nev er
ywor kertobr
ing
outhisbestf
acul
ti
esandtoenabl
ehimt odoahigher
,mor eint
erest
ingandmor eprofit
ableclassofwork
thanhehasdoneinthepast
.

5.Int
imatef r
iendlycooper at
ionbetweentheManagementandWor ker
s:Themanagementandt he
l
abour saretr
yt oincreaseproducti
on,rat
herthanquarr
eloverwhat
everpr
ofi
tst
herewere.Bydoi
ngso,
profi
tswouldbei ncreasedt osuchanextentthatl
abourandmanagementwouldnolongerhavet
o
compet eforthem.Tay lorbeli
evedthatmanagementandlabourhadacommoni nt
eresti
nincr
easing
producti
vi
ty.

(2b) EXPLAI NTYPESOFPLANNING

Ans.St rategicPlans:
Strat
egicpl anni
ngistheprocessofdev elopingandanalyzi
ngt heorgani
zat
ion'smission,
ov eral
lgoal
s,
generalst rategi
es,andall
ocati
ngr esources.Itisgener
all
ydeterminedbyhowf ari
nt hefuturethe
organizationi scommi t
ti
ngitsresources.Topl evelmanager
sengagechi ef
lyinstr
ategicplanningorl
ong
rangepl anni ng.

Tact
icalPlans
Tactical
planningprovi
desthespeci
fi
cideasfori
mpl
ementingthestrat
egicpl
an.Itistheprocessof
maki ngdetai
leddecisi
onsaboutwhattodo,whowil
ldoit
,andhowt odoi t
.
Inordertodev el
optacti
cal
plans,mi
ddlemanagementneedsdetai
lreport
s(fi
nancial,
operati
onal,
market
,
externalenvi
ronment).

Operati
onalPlans
Supervi
sorsimplementoper ationalplansthatareshor t
-ter
m anddeal wi
ththeday-
to-dayworkofthei
r
team.Supervi
sorssetstandar ds,form schedules,secureresources,
andreportpr
ogress.Theyneedvery
detai
l
edr epor
tsaboutoper ations,personnel,
mat eri
als,andequipment.Operat
ionpl
ansar ethe
supervi
sor'
stool
sf orexecutingdai l
y,weekly,andmont hlyacti
vi
t i
es.

(3a) DEFI NELEADERSHIP.EXPLAI

NVARI PSTYLES?
OUSLEADERSHI
Ans. Leadershi
pisdefinedast heprocessofinfl
uenci
ngpeoplesot
hatt
heywi
l
lst
ri
vewi
l
li
ngl
yand
ent
husiast
ical
lyt
owar dstheachievementofgr oupgoal
s.

Ther
ear
ethr
eewi
del
yusedl
eader
shi
pst
ylesorappr
oaches.

(
i)Tr
ait
sappr
oach

(
ii
)Behav
iour
alappr
oach

(
ii
i)
Cont
ingencyappr
oach

Tr
ait
sappr
oach

Tr
aiti
sbasi
cal
l
yachar
act
erandear
lyi
deasaboutl
eader
shi
pdeal
twi
thper
sonal
abi
l
iti
es.

Fazi
lShai
khPage2
 Thet r
ait
sthatassoci
atewit
hleadershipar
eidenti
fi
edas: mental
andphy si
calenergy,
emotionalst
abil
i
ty,
knowledgeofhumanr el
ati
ons,personalmoti
vati
on,communicati
onskil
l
s, t
eachi
ngabili
ty,
social
skil
ls,
techni
calcompetence,f
ri
endli
nessandaf f
ect
ion,i
ntegr
it
yandfait
h,i
ntel
li
genceet c.

Behav
iour
alappr
oach

Sever
al st
udieshavebeenmadedi dnotagreeastowhi
chtrai
tsar
eleadershi
ptr
ait
sorthei
rrel
ati
onshi
pto
act
ualinstancesofl
eadershi
p.I
tisfoundthatmostoft
hesesocall
edtrai
tsarer
eall
ypatt
ernofbehavi
or.

Ther
ear
esev
eral
theor
iesbasedonl
eader
shi
pbehav
iorandst
yles.

(
i)Leader
shi
pbasedont
heuseofaut
hor
it
y

(
ii
)Li
ker
t’
sfoursy
stemsofmanagi
ng

(
ii
i)
Manager
ial
gri
d

(
iv)Leader
shi
pinv
olv
ingav
ari
etyofst
ylesandl
evel
ofuseofpowerandi
nfl
uence

Cont
ingencyappr
oach

Effect
ivel
eader
shipsty
levari
eswithsituation.Theeff
ect
iveleader
sneedtoanalyset
hesituat
ionandf
ind
themostappropri
ateandbestsui
tedst yl
ef oragivenenv
ironment.Cont
ingencyappr
oacheshavemuch
meaningformanageri
altheor
yandpr actice.

(
3b) EXPLAI
NPROCESSOFRECRUI ONPROCESS?
TMENTANDSELECTI

Ans.
1) Re-employi
ngf or
merempl oy ees:laidoffemploy eesorempl oyeesleftduetoper
sonalreasonsmaybe
reempl oyedwhomayr equi
relesst rai
ningcompar edt othestranger softheenter
pri
se.
2)Fr i
endsandr elat
ivesofthepr esentempl oyees:per sonnel
wi t
har ecordofgoodrel
ati
onshipsmaybe
encour agedt
or ecommendt heirfriendsandr el
ati
v esforAppoi ntmenti ntheconcer
nwher etheyar
e
empl oyed.

3)Appl
icantsatthegate:suit
ableunemploy
edemployeeswhocall
atthegatesofthef
act
oriesor
companiesarecall
edareinter
viewedbythefact
oryorcompanyper
sonnelandthosewhoarefound
sui
tabl
efortheexist
ingvacanciesaresel
ect
ed.

4)Coll
egeandtechni
calinst
it
utes:manybi
gcompaniesr
emai
nint
ouchwi
tht
hecol
l
egesandt
echni
cal
i
nsti
tut
ionst
orecrui
tyoungandt al
ent
edpersonnel
.

5)Empl
oymentexchanges:employmentexchangesetupbythegov
ernmentf
orbri
ngi
ngt
ogethert
hose
menwhoareinsearchoftheemploymentandthesewhoareinsear
chofemploy
mentandthosewhoare
l
ooki
ngformen.Employmentexchangesareconsi
deredauseful
sour
cef
ortherecr
uitmentofcl
erks,
accountant
s,t
ypist
s.

6)Adver
ti
singt
hev acancy:canbedonebyadv ert
isi
ngthevacancyi
nleadi
ngnewspaperswhichmaybe
usedwhenthecompanyr equir
esser
vicesofpersonspossessi
ngcert
ainspeci
alski
l
lsorwhenther
eis
acut
eshort
ageoflaborforce.

7)Laboruni
ons:per
sonsar
esomet
imesr
ecommendedf
orappoi
ntmentbyt
hei
rlaboruni
ons

Stepsint hesel
ecti
onpr
ocedure:
1)Jobanal ysi
s:I
sthepr
ocessbymeansofwhi chadescr
ipti
onisdevel
opedofthepr
esentmethodsand
proceduresofdoingaj
ob,phy
sicalcondi
ti
onsi
nwhichthejobisdone,r
elat
ionoft
hej
obtootherjobsand
otherconditi
onsofempl
oyment

2)Jobdescri
ption:Theresult
softhej
obanal
ysisaresetdowninj
obdescr
ipt
ionsf
or
product
ionworkers,cl
eri
calpeopl
eandthef
ir
st-l
inesuperv
isor
sandmanager
salso.

3)Jobspeci
fi
cat
ionAj
obspeci
fi
cat
ioni
sast
atementoft
hemi
nimum accept
abl
ehumanqual
i
ties

Fazi
lShai
khPage3
necessar
ytoper
for
m aj
obsat
isf
act
ori
l
y.

Applicat
ionbank:Fil
li
ngtheappli
cati
onbl ankbyt hecandidateisthefi
rstst
epinwhi chtheappl
i
cantgives
relev
antpersonaldatasuchasqualif
icati
on, exper
ience,f
ir
msi nwhichhehaswor ked.
2)Ini
ti
alint
ervi
ew:Selectedper sonnelbasedont hepart
icul
arsfur
nishedintheappl
icat
ion
blankarecall
edfortheini
ti
ali
nter
v i
ewbyt hecompanywhi chisthemostimportantmeansofev al
uati
ng
thepoiseorappearanceofthecandidate.

3)Employmentt
ests:Areusedfort
hefurt
herassessmentoft
hecandi
dat
eofhi
snat
ureand
abi
l
iti
escer
tai
ntest
sareconductedbythecompany.Theseare:

(i
)Apt it
udet est:isusedi nf indingoutwhet heracandi dateissui
tabl
ef orcleri
calora
mechani caljobwhi chhelpsi nassessi ngbef oretr
ainingashowwel lt
hecandidatewi l
lperfor
mt hejob.
(i
i)I
nter esttest:isusedt of indoutthet ypeofwor kinwhi chthecandidatehasani nterest
.
(
ii
i)Intelli
gentt est:usedt of i
ndoutt hecandidatesintell
igenceandcandi datesment alal
ert
ness,
reasoningabi l
ity,poorofunder standingar ejudged.
(
iv)Tradeorper f
or manceachi evementt est:t
histestisusedt omeasur ethecandidate’sl
ev el
of
knowledgeandski lli
nt hepar t
iculartradeoroccupat ioninwhichal lhewillbeappointed,incasehei s
fi
nall
ysel ected.Int hi
st estthecandi dat eisaskedt odoasi mple
operationoft hepr oposedj ob.Exampl e: Acandidateforadrivermaybeaskedt odr ivetotesthisdri
ving
profi
ciency,at ypistmaybeaskedt oty peoutsomel ett
erstofindouthi sspeedandef f
ici
ency.
(
v)Per sonali
tyt est:isusedt omeasur ethosecharact eri
sti
csofacandi date.

4)Checki
ngreferences:usedtoknowabouttheimport
antpersonal
detai
lsaboutthecandi
dat
e,his
char
acter
,pasthist
oryhisbackgroundver
if
iedf
rom t
hepeoplementionedintheappli
cat
ionaf
tersel
ect
ion
andfoundsati
sfactor
yattheinterv
iew.

5)Physicalormedicalexaminat
ion:isanotherst
epi
nselecti
onprocedure.Theobj
ect
ivesof
thi
sex aminat
ionare
(
i) t
ocheckt hephysi
calfi
tnessoftheappl
i
cantforthejobappli
edfor
(
ii
) t
opr ot
ectthecompanyagai nstt
heunwarr
antedclai
msf orcompensat
ionundercer
tai
n
l
egisl
ati
veenactments.

6)Fi
nali
nter
view:Thisi
nter
viewisconduct
edforthosewhoareul
ti
matel
yselectedf
oremploy
mentand
t
hesel
ect
edcandidatesaregi
v enani
deaabouttheirf
utur
epr
oject
swit
hintheorgani
zat
ion.

(
4a) WHATI NG .
SCONTROLLI EXPLAI
NTHESTEPSINACONTROLPROCESS?
Ans.Contr
oli
scheckingcur r
entper
for
manceagainstpr
edeter
minedstandar
dscont
ainedi
nthe
pl
answithavi
ewt oensureadequateprogr
essandsati
sfact
oryper
for
mance.

St
epsi
ncontr
oll
ing:
i Est
abli
shingst
andar
ds

i
i Measur
ingandcompar
ingact
ual
resul
tsagai
nstst
andar
ds

i
i
i Taki
ngcor
rect
iveact
ion.

1.Establi
shingst andards
Thef i
rststepinanycont rolprocessi stoest abl
ishstandardagainstwhi chresult
scanbe
measur ed.Somekeyar easinall businessor ganizati
onsare:profitabi
li
ty,
mar ketposi
t i
on,
productiv
ity,personaldevel
opment ,empl oyeeattit
udeandpubl i
cr esponsibi
li
ty.
Standardmaybequal i
tat
iveorquant i
tati
ve.
Standardsl i
kecost sshouldber educed, communi cat
ionistobef aster
,goodwi l
l,employees
mor al
eet c.aresomeexampl eofqual i
tati
ve.
Numberofuni tsproduced,profitpercentage, st
andar dhour
s,totalcostincurr
ed, et
c.aresome
exampl eofquant it
ati
ve

2.Measuringandcompar ingactualresul
tsagai nststandards
Measurementofper for
mancecanbedonebyper sonalobservat
ionorbyastudyofvarious
summar i
esoff i
gur es,r
eports,
chart
sandst atement s.
Comparisonisv eryeasyifthesyst
em ofcontr oliswelldefi
ned.
Whentheact ualper f
ormanceismat cheswitht hestandards,nocorr
ecti
veacti
onisrequired.
However,ift
hest andardarenotachieved,t
hent hemanagementshoul dini
ti
atenecessary
cor
rect
iveaction.

Fazi
lShai
khPage4
 3.Takingcor r
ecti
v eaction.
Aftercompar i
ngtheact ualperf
ormancewi ththest andardandnot ici
ngthedev i
ati
ons,thenex t
stepist otakecor r
ectiveacti
onsbyt hemanager s.
Thecauseofdev i
ationmaybeduet oi neffecti
vecommuni cati
on, def
ectivesystem ofwages,
wrongt oolsandmachi nes,negli
gencef rom wor ker,l
ackoftraining,i
neffecti
vesuper v
ision,
i
nadequat efaci
li
ti
eset c.
Manager smaycor rectdev i
ati
onsbyr edrawingt heirpl
ans,orbymodi fy
inggoal s,t
heymayuse
theirauthori
tythroughr eassi
gnmentofj obst oothers,orbyput t
ingadditionalstaf
f,orprovi
ding
extratraini
ng,bettertoolsandbybet terleading.

(4b) EXPLAI NTHEIMPORTANCEOFCOORDI NATIONANDITSTECHNIQUES?

Ans.I mportanceofcoordinat
ion:
(i
)Unityindiversi
ty
Therearelargenumberofempl oyeeseachwi thdif
fer
entideas,
viewsoropinionsandi nt
erests.
Thisresul
tsintoadiver
sif
iedacti
vit
yinanyor gani
zati
on.Iti
snecessarytobri
ngt hem together
toaccompl i
shthecommonobj ectives.Hence,coordi
nat
ionistobringuni
tyindiversi
ty.

(i
i
)Speciali
zati
on
I
nt hemodernindustri
alorganizat
ions,t
herei
sahighdegreeofspecial
izat
ion.Thoughspeci
ali
stsar
ewel
l
awareoftheirt
asksandper f
ormt hei
rtasksv
eryef
fect
ivel
y,t
heylacktheknowl edgeofot
hersandthe
i
mpor t
anceofot heract
ivi
ties.Coordi
nati
onplay
simport
antrolei
nbringingthem toget
her
.

(i
i
i)Team wor k
Coordinati
onhelpconver
gingthediv
ersi
fiedef
for
tsofv
ari
ousgr
oupst
oachi
evet
heobj
ect
ives.I
t
promot esteamworkandav oi
dsdupli
cat
ionofwork.

(i
v)Largenumberofempl oyees
Largeorganizat
ionsemploylargenumberofemployees.Theyhavedi
ff
erenthabi
ts,
behav
iorand
approachesinapar t
icul
arsit
uation.Manyti
mestheydonotwor ki
nharmony.
Coordinat
ionisnecessarytobringtheharmonyamongthem.

(v)Functi
onaldif
ferences
Thefuncti
onsofor ganizat
ionaredivi
dedsect
ionwise.Eachsect
ionper
for
msdiff
erentj
obs.Each
departmenttr
iestoper f
ormitsfunct
ionini
sol
ationfr
om other
s.Coordi
nat
ioni
snecessar
ytointegr
atet
he
functi
onsoftherelateddepart
ment .

(vi
)Recogni t
ionofgoal s
Therear egeneral goalsofanor ganizati
on.Inaddit
ion, eachdepart
menthasitsowngoal sandthe
i
ndividualemploy eesal sohavetheirowngoal s.Thei ndivi
dualemployeesgi
vemor eimport
anceforthei
r
owngoal sthant heor ganizati
ongoal s.Eventhedepar tmentheadsgivepri
ori
tyfordepar
tmentgoalsthan
thegoalsofor gani zat
ion.
Coordinati
onpl aysi mportantrol
etor econcil
ebotht heempl oyeesgoalsanddepart
mentalgoal
swi t
h
organizati
onalgoal s.

(v
ii
)Communi cat
ion
Coordi
nat
ionensurest
hesmoot
hfl
owofi
nfor
mat
iononedi
rect
iont
oot
herdi
rect
ion.

(v
ii
i)I
nter
dependency
Theneedforcoordi
nati
oninanor gani
zati
onari
sesofthei
nter
dependenceofvari
ousuni
ts.
Thegreat
ertheint
erdependenceofunit
s,thegr
eatert
heneedforcoor
dinat
ion.

Techni
quesofcoor
dinat
ion:

(i
)Rules,
proceduresandpol i
ces
Thespecif
icat
ionofrules,
proceduresandpol
i
ciesi
sav
erycommondev
icet
ocoor
dinat
esub-
uni
tsi
nthe
perf
ormanceoftheirrepet
it
iveacti
vit
ies.

(i
i
)Pl anni
ng
Planningensur
escoor
dinat
edef
for
t.

(i
i
i)Hi
erar
chy
Thesi
mplestdev
icef
orachi
evi
ngcoor
dinat
ioni
shi
erar
chyorchai
nofcommand.

Fazi
lShai
khPage5
(i
v)Di
rectcontact
Str
ongcrossfunct
ional
li
nksatmul
ti
plel
evel
smaybeest
abl
i
shedf
ort
hispur
pose.

(v
)Taskf
orce
Thisi
sat
emporarygroupmadeupofrepresentati
vesf
rom t
hosedepar
tment
swhi
char
efaci
ngapr
obl
em.
Whenasol
uti
onisreachedeachpar
ti
cipantr
eturnstohi
snormalt
asks.

(vi
)Committ
ees
Itpr
omotesef
fect
ivecommuni
cati
onandunderst
andi
ngofideas,encour
agest
heaccept
anceof
commitmentt
opolici
esandmakesthei
rimpl
ementat
ionmoreeff
ecti
ve.

(
vii
)Incent
ives
I
tpromotesteam spi
ri
tandbet
tercooper
ati
onbet
weensuper
ior
sandsubor
dinat
es.

(vi
ii
)Wor kfl
ow
Awor kfl
owi sthesequenceofstepsbywhi
chtheorgani
zat
ionacquir
esi
nputsandtransf
ormthem i
nto
outputs.I
tislargel
yshapedbytechnol
ogi
cal,
economicandsocial
consi
derat
ionsandhelpsi
n
coordi
nation.

(
5a) EXPLAI
NTHECHARACTERI CSOFENTREPRENEUR?
STI

Ans.Mot
ivat
ion

Entr
epreneursarebynat uremot iv
ated.Aft
erall,
theyputi nlonghour stogett
heirv
enturesoffofthegr oundandi nvest
l
argesums—somet imesev er
ythi
ngtheyhav e—t opur suethei
rdr eams.Theydoallofthi
sknowingt hatitcouldtake
monthsorev eny earsf orthem t possi
o  bl
y 
reapt hefruitoft
heirlabor.Anddespi
tethei
rhardwork, t
heyknowt hattherei
s
achancet hatt
hei reffort
swon’ tberewardedwi t
hmat eri
alsuccess.Yettheyref
usetogiveintoaf earoffail
ure.So
str
ongmot i
vat
ion, nottoment ionasteelyfocus,isneededt osti
ckwi thvent
uresoverthelonghaul.

Vi
sion

Thebestentrepreneurshav eav i
sionast owhattheywanttoachi
eve,howt heycanaccompl i
shtheirobject
ives,and
whom theyneedont heirsidetoreachtheirgoal
s.Thei
rvi
sionact
slikeacompasst hatpoi
ntsthem inthedirect
ionof
opport
unit
iesthatper hapsnooneel sehasfound.Theyal
sohavetheabil
itytotransl
atethei
rvisi
oninawayt hatstaf
f
andinvest
orscanunder stand.Through 
networki
ngopportuni
ti
es,
entrepr
eneurscanf indpeopl
et heywanttoal i
gnwith.

Passi
on

Passionisanotherchar
acter
ist
icofent
repreneurs.Whi
leagoodpay dayatt
heendofthetunnelisgoodformot i
vation,
entr
epreneurst
endt obemor edri
venbyapassi onfort
heirof
feri
ngaswellasbyadesir
etomakeadi f
ference.This
passi
onordr i
vealsohelpstosustai
nentr
epreneursduri
ngperiodswheredi
scour
agementmi ghtother
wisemani fest
i
tsel
f.

Conf
idence

Withoutconfidenceorself
-bel
ief
,ent
repreneurscannotpossi
blysucceed.Theyhavet obeconfi
dentbothinthemselv
es
andi ntheproductsorserv
icestheysel
l.Ift
heybeli
eveinthemselves,t
heywi l
lhavetheabi
li
tytostaythecourse
regardlessdi
ffi
cult
iesordi
scouragement.get.Theyalsohavethestomacht otakeri
sks—af t
erall
,theybel
ievethatt
hey
willsucceed.

Deci
sionMaki
ng

Beingabletomakedeci sionsqui cklyisanimportantchar acteri

sticf
orentrepr
eneursbecausei tcanbet hedif
ference
betweensuccessandf ailure.Entrepreneur
snotonl yneedt ohav egooddecisi
onmaki ngskill
s,butalsomusthav ethe
capacit
ytomaket hosedeci si
onsqui ckl
yinordertoav oidmi ssingopportuni
ti
es.Thisnecessitatesqui
cklyconsideri
ng
thefactsandthendeciding.Asy oucansee, ther
ear edef i
nitelysomekeychar acter
isti
csofentr epr
eneurshi
p.Asal eader
atyourcompany ,y
oucanuset heset rai
tst
omor ecapabl yandconf i
dentlyper
formy ourduti
es.Whet herentr
epreneurs
arebornormadei s,asitt urnsout,notthekeyconsi derati
on.Whatr eal
l
ymat t
ersisthatleadersacquireordevelopthe
winningcharact
eri
sti
csofanent repreneur.

(5b) DI SCUSSTECHNI
CALANDFINANCIALFEASI
BI TYSTUDY?
LI
Ans.TECHNI CALFEASI BI
LITYSTUDY
I
nt echnicalf
easi
bil
it
ystudy,
thefol
lowingpoint
sarest udi
ed.
Locationoftheproj
ect:
Thedataregardingthel
ocationofproj
ecti
sver
yimpor
tant
.

Fazi
lShai
khPage6
I
tmaybel ocat
edinr ur
al,
urbanorsemi-urbanareas.
Const
ruct
ionoffactory
,buil
dingandi
tssize:Theconstr
uction
det
ail
s,t
henature/t
ypeofbuildi
nganditssizeforthepr
ojectaret
obeanal
yzed.

Avai
labi
li
tyofr
awmateri
als:Thestudyofavai
labi
li
tyofr
awmat er
ial
s,sosur
cesofsuppl
y,al
ter
nat
e
sour
ces,i
tsqual
it
yandspecif
icat
ionscostet
c.,ar
etobestudi
ed.

Selecti
onofmachinery:Theselect
ionofmachineryr
equir
edtopr
oducedthei
ntendedproducti
st obe
car
riedout
.Thespecif
icati
onsarecapacit
y,costsour
cesofsuppl
y,t
echnol
ogyeval
uati
onofv ar
ious
makesofthemachine.Theirgoodandbadet c.
,arest
udied.

Ut
il
it
ies:Thedet
ail
saboutav
ail
abi
l
ityofut
il
it
iesl
i
kewat
er,
gasel
ect
ri
cit
y,pet
rol
,di
esel
etc.ar
etobe
st
udi
ed.

Product
ioncapaci
ty:Est
abl
i
shmentof
fpr
oduct
ioncapaci
tyandut
il
izat
ionofpr
oduct
ioncapaci
tyar
e
analy
sed.

St
affr
equi
rement
:St
udyandanal
ysi
sofr
equi
rementofwor
ker
s,t
echni
cal
staf
fandof
fi
cer
set
c.i
stobe
made.

Techni
cal
viabi
li
ty:Thet
echni
cal
viabi
l
ityoft
heoppor
tuni
tyi
stobest
udi
ed

FI
NANCI ALFEASI BI
LITYSTUDY
Fi
nancialf
easibi
l
ityi
st hemostimpor
tantaspectofabusi
nessoppor
tuni
ty.Someoft
heaspect
sinv
olv
ed
i
nfinanci
alfeasi
bil
it
yst udyar
e:

Tot
alcapit
alcostofproject:I
tisver
yessenti
altostudythetot
alcostofpr
oject
.
Thi
sincl
udesfixedcapi
tal,worki
ngcapi
talandinter
estfact
or.

Sour
cesofcapi
tal:Thestudyofmai
nsour
cesofcapi
tal
ist
obemade.I
fcapi
tal
isbor
rowed,
int
erest
bur
denist
obest udiedi
ndetail
.

Subsidi
arysour
cesforaddi
ti
onalfi
nance:Af
terst
udyofmai
nsour
cesofcapi
tal
,subsi
diar
ysour
cesof
capi
talaret
obeidenti
fi
edandstudi
ed.

Financi
alf
orfutur
edevelopmentofbusiness:Financialr
equir
ementforf
utur
edevel
opmentofbusi
ness
aretovestudi
ed.Worki
ngcapit
alrequi
rementf oratleastthr
eemonthsrunni
ngofent
erpr
isear
etobe
esti
mated.

Br
eakEvenAnal
ysi
s(BEA)
:BEAistobecarri
edouttoseeatwhatlevelofproducti
on/
sal
eswil
lmakethe
or
gani
zat
ionnol
oss/nopr
ofi
tsi
tuat
ion.BEAisver
yuseful
toident
ifythelev
el ofpr
oduct
iont
hatmakes
pr
ofi
t.

Est
imat
ionofcashandf
undf
low:I
tisv
eryessent
ial
tomakeast
udyofest
imat
ionofcashandf
undf
low
i
nthebusi
ness.

Ret
urnoninvest
ment(
ROI)
:ROIi
stobecal
cul
atedt
oseet
heamountofr
etur
noni
nvest
mentf
ort
he
i
nvest
ors/
sharehol
der
sandhowmuchtheyget
.

Pr
oposedbalancesheet
:Proposedbal
ancesheeti
smadeshowi
ngl
i
abi
l
iti
esandasset
s,depr
eci
ati
on,
i
nter
estbur
den,prof
it
sexpectedet
c.

Costoflabourandtechnol
ogy:Thecostofempl
oyeesistobeest
imat
edandstudi
ed.I
ftechnologyi
snot
avai
l
ablethenithastobepurchasedf
rom anyR&Di nst
it
uti
onorbywayoff
orei
gncoll
aborati
on.

(6a) DI SCUSSDIFFERENTTYPESOFENTREPRENEURS?
Ans.
Ty pesofentr
epreneur s:
Thelit
erat
urehasdistinguishedamonganumberofdiff
erentt
ypesofent
repr
eneur
s,f
ori
nst
ance:

Social
entrepreneur
Asocialentr
epreneuri
smoti
vatedbyadesi retohel
p,i
mproveandtransf
orm soci
al,
environmental
,
educati
onalandeconomiccondit
ions.Keytr
ait
sandcharact
eri
sti
csofhighl
yeffect
ivesocial
entr
epreneursincl
udeambi
ti
onandal ackofaccept
anceoft
hestatusquooracceptingtheworld"asi
tis"
.

Fazi
lShai
khPage7
Thesoci alentrepreneuri
sdr i
venbyanemot ional desiretoaddresssomeoft hebigsocialandeconomi c
conditi
onsi nthewor ld,f
orexampl e,pov er
tyandeducat i
onaldepriv
at i
on, r
atherthanbythedesi r
eforprofi
t.
Socialentrepreneursseektodev elopinnov ati
vesol utionstoglobalpr oblemst hatcanbecopiedbyot hers
toenactchange.
Socialentrepreneursactwithinamar ketai mingt ocr eatesocialval
uet hrought heimprovementofgoods
andser vi
cesof feredtothecommuni ty.Theirmai naimi stohelpofferabet terservi
ceimprovingthe
communi t
yasawhol eandarepr edomi natel
yr unasnonpr of
itschemes.Zahr aetal.(2009:519)saidthat
¯socialentrepreneursmakesi gni
ficantanddi versecont r
ibut
ionstot heircommuni ti
esandsoci eti
es,
adoptingbusi nessmodel st
oof fercreat i
vesolutionst ocompl exandper si
stentsocialpr
oblems

Ser ialent r
epr eneur
Aser ial entrepr eneuri sonewhocont inuousl ycomesupwi t hnewi deasandst artsnewbusi nesses.[ 4]In
themedi a,theser ial ent repr eneurisr epresent edaspossessi ngahi gherpr opensi tyf orr isk,innov ationand
Achi ev ement
Lifest yleent r
epr eneur
Al i
f est yl
eent r epr eneurpl acespassi onbef orepr ofitwhenl aunchi ngabusi nessi nor dert ocombi ne
per sonal interest sandt al entwi ththeabi li
tyt oear nal iving.Manyent repr eneur smaybepr i
mar ily
mot iv
at edbyt hei nt entiont omaket hei rbusi nesspr ofitablei nor dertosel ltoshar ehol der s.
[exampl es
needed]I ncont rast ,al ifest yleentrepreneuri ntent i
onal lychoosesabusi nessmodel intendedt odev el
op
andgr owt hei
rbusi nessi nor dertomakeal ong- term, sust ainabl eandv i
abl el i
v i
ngwor kingi naf i
eldwher e
theyhav eapar ticulari nter est ,
passion, tal ent ,knowl edgeorhi ghdegr eeofexper tise.[6]Al i
festy l
e
entr epr eneurmaydeci det obecomesel fempl oyedi nor dert oachi evegr eat erper sonal f r
eedom, mor e
fami l
yt imeandmor et imewor kingonpr oject sorbusi nessgoal sthatinspi ret hem.Al ifestyl
eent repr eneur
maycombi neahobbywi thapr ofessionort heymayspeci fi
cal lydecidenott oexpandt heirbusi nessi n
ordert or emai ni ncont rol oft heirvent ure.Commongoal shel dbyt helifest yleent repr eneuri ncludeear ni
ng
aliv i
ngdoi ngsomet hingt hatt heylov e,ear ningal ivingi nawayt hatfacilitatessel f-empl oy ment ,achi ev i
ng
agoodwor k/lifebal anceandowni ngabusi nesswi thoutshar eholders.Manyl ifesty l
eent repreneur sar e
verydedi catedt ot hei rbusi nessandmaywor kwi t
hint hecr eat iveindustriesort our ism i ndust ry
,[7]wher ea
passi onbef orepr ofitappr oacht oent repr eneur shipof tenpr evails.Whi l
emanyent repr eneur smayl aunch
theirbusi ness
withacl earexi tstrat egy , al i
festyl
eent r
epr eneurmaydel iber atelyandconsci ousl ychooset okeept heir
vent uref ull
ywi thint hei rowncont rol.Lifest y l
eent repreneur shi pisbecomi ngi ncreasi ngpopul aras
technol ogypr ov idessmal l businessowner swi tht hedi gitalpl atformsneededt or eachal argegl obal
mar ket .Youngerl if
est yl
eent r
epreneur s,t ypi callythosebet ween25and40y ear sol d, aresomet i
mes
refer r
edt oasTr eps.

Cooper
ativ
eentrepreneur
Acooperat
iveentr
epreneurdoesn'tj
ustworkalone,butrat
hercol
laborat
eswithothercooper
ati
ve
ent
repr
eneurstodevelopproject
s,part
icul
arl
ycooperati
veproj
ects.Eachcooper
ative
ent
repr
eneurmightbringdif
ferentski
ll
setstothetable,
butcoll
ecti
velyt
heyshareintheri
skandsuccess
oft
heventure.

(
6b) LI
STOUTTHECOMMONREASONSFORLACKOFENTREPRENEURSHI
PINI A?
NDI

Ans.Someoft hemostcommonl yat tr

ibutedr easonsf orthelackofentrepreneurshi
pinIndi
a:
Lackoff unding:
I
sl ackoffundingthatmuchofabi gdeal r
eal l
y?Thecostt odoat echnologystartuphasgonedown
drasti
call
y.Reducedhar dwarecosts,bandwi dthcost shavedropped,cloudcomput i
ngandopensour
ce
technol
ogiesmakei tr
eallycheaptolaunchat echnologystart
up.Unlessy ouarelaunchi
ngacapit
al
i
ntensivebusiness,whyshoul dyoureall
yneedout sidefundingfordoingast art
up?
Lookatt heYcombi natormodel –$5k–$10Kperst art
up,whichisli
teral
lypeanutsifyouneedtosur
viv
ein
Sil
iconValley
.WhycantI ndi
anentrepreneursbecheapi nasi mil
arway?Whynotboot st
rap?

NoEcosy st
em:
Ifyouwoul dhavemadet hi
sargument5y ear
sback,I‘
dprobabl
yhaveagreed.Butoverthelastfewy ear
s,
thestartupecosyst
em hasimprovedbyleapsandbounds.VC‘shaveenteredt
heIndianmar ket,ev
entsand
conferencesarehelpi
ngthestar
tupcommuni t
ytonetworkandconverge,B-pl
ancompet i
ti
onsonv ari
ous
campusesar eraisi
ngawareness,anact
iveandvibr
antcommuni t
yisformingar
oundent r
epr eneur
ship.

Bur
eaucrati
cred-t
ape:
Whil
eIagreethatsomet hi
ngsi
nthisaspectar
enotassmoot hasinothercount
ri
es.Howev er,
mostofthe
ent
repr
eneursItal
kedt odi
dnotci
tethisasamajorhi
ndranceaspartofthei
rentr
epreneuri
alj
ourney.Hi
re
achart
eredaccountantandhewil
ltakecar
eofmajori
tyoftheini
ti
alpr
ocessofincor
por at
ion,
taxat
ionand

Fazi
lShai
khPage8
ot
herl
egal
i
ties.

NoPr oductCompani es:

Iforonedontr eall
ybuyi nt
othisargument.WhileIagreethatproductcompaniesmayofferlongter
m
sustai
nencev alue(whilecurr
entoutsourci
ngfocusedservicescompaniesaresimplybenefi
tingf
rom t
he
costadvantage) ,
butthenentrepreneur
shipissti
llentr
epr
eneurship–bei taserv
icesoraproductcompany
.
Belowaresomeoft hereasonsthatIpersonal
lythinkhav
east rongimpactonentrepr
eneurshipi
nIndi
a:

Rev ampi ngEducat i

on:
Ifyoul ookatt hesuccessofSi l
iconVal ley,oneoft hekeyf actorsthatwasi nstrument al i
nshapi ngitwas
Stanf ord&UCBer kel
ey .Di t
toist hecasewi thI srael‘sTechni on.Istronglybeli
ev ethateducat ion,
i
nnov ati
onandent repreneur shipgohandi nhand–especi allytechnologyinnov ati
on.Whi l
etheI IT‘
shav e
i
mmensel ysuccessf ul alumni ,theI I
T‘shav enotbeenabl et ocreateaf erti
lehotbedofi nnovation&
entrepreneur shipinthei rownbacky ard.
Atthesamet i
me, weneedt oencour ageoutoft heboxt hi nkingaspar tofoureducat ionsy stem.Rot e
l
ear ningcanonl ygetussof ar.Weneedt or ampupcour sewor ksot hatstudentski l
lsremai ninsy ncwi t
h
ther estoft hemar ket.WhenSt anf ordandot heruni versit
iesar eteachingiPhoneandFacebookappr elated
cour ses,teachingCobol &For trant oIndianst udent swoul dbest upi
di ntoday‘sage.St udent sshouldbe
encour agedt oconsi derent repr eneurshipasav iablecareeropt ion.Ibelievethi
st obet hesi nglebiggest
factorthatcoul df osterent repreneur shi
pi nIndi a.Youngcol l
egegr aduat esareatanagewhent hei
r
i
nher entr i
ski satthel eastt obecomi nganent r
epr eneur.Educat ingthem earlyenoughwoul dal sogiv
e
them ampl etimet oshapeupt heirskill
sandexper iencet hatcanpr eparethem f ortheirentrepreneuri
al
j
our ney .Weal soshoul dmakei teasyandaccept abl eforst udent stotakesabbat icalsfrom theirdegree
cour sewor k.Currentl
y ,thisiffrowneduponi nI ndiansoci et y—weshoul dtrytomakepeopl emor e
accept ingofi t
.

LackofGoodMent or s:
Indi
adoesnothav eal ar
gepool ofsuccessf
ul entr
epreneurswhohav ebuiltgloball
evelcompaniesandar
e
keenonment ori
ngt henextgener at
ionofentrepreneurs.From alotofentr
epreneursthatI‘
vet
alkedto—
theyweremor edesper atel
yseekinggoodment or
sasopposedt ofunding.
Wepr obabl
yneedsomeonet olead&pav et
hewayj ustl
ikewhatYossi Var
di didtoIsr
aelandwhatNR
Murthydidtotheout sourci
ngmar ketinIndi
a.

LackofM&Aact i
vity:
ThisIsayj ustf r
om thet echnol ogymar ket.M&Ai sjustnothappeningintheI ndi
anmar ket.Consequentl
y,
theal r
eadyexi sti
ngpor t
als,newssi t
esgetachancet olaunchthei
rownser v
iceswithoutanystrong
startupget t
inganoppor tunitytoest ablishitsel
f.
Thesear et hethreet hingst hatIthinkhav ethebiggestimpact—butt hen,there‘
sagoodchancet hatyou
mi ghtdisagree.Thisi sahi ghlysubj ecti
v etopicandev er
yonehast hei
rownconv i
cti
onabouti t
.Ithi
nk
wheni tcomest otechnol ogyentrepr eneurship,weshouldt r
yanddoadet ail
edcasest udyofIsr
ael.The
count r
yhasj ustapopul at i
onof7mi l
li
on, hosti
leneighborsandhightaxes.Yetitboastsofthe2ndhi ghest
concent rat
ionofst artupsj ustafterthe
US.They ‘
redefini
telydoi ngsomet hingr i
ght.Andt hat‘
swhatweshoul dtry&emul at
e.

(7a) LI STTHEPROCESSOFPROJECTI DENTI

FICATION ?
Ans.Proj
ectidenti
fi
cati
onThef ivemaj orst
agesoft heprojectcycl
ear eidentifi
cati
on,pr epar
at i
on,
apprai
sal
,implementati
onandev aluat
ion.Thef i
rsttwost agesar el
argelyther esponsibili
tyofgov er
nment,
whichmayi nt
endtofinanceaprojectfrom i
tsownr esourcesort oseekext ernalassistance,thoughdonor
agenci
esmaypl ayaninfluent
ial
role.Viewedasat echnicalprocessidentif
icati
oninv ol
v es,i
nt hefol
lowi
ng
sequence

•Pr
eli
minar
yst
akehol
deranal
ysi
s

•Pr
obl
em anal
ysi
s

•Set
ti
ngofobj
ect
ives

•Anal
ysi
sofal
ter
nat
ives

Fazi
lShai
khPage9
•Account
abi
l
ityanal
ysi
s

•Logi
cal
framewor
kthi
nki
ng

•Anal
ysi
sofassumpt
ionsandassoci
atedr
isks

•Pr
ogr
essi
ndi
cat
ordef
ini
ti
on

•St
akehol
derr
evi
ew

(7b) EXPLAI
NMARKETI NMANAGEMENT?
NGANDSUPPLYCHAI
Ans.The mar
keti
ngsuppl
ychain 
i
sthechainofsuppl
iersthatanorgani
zati
onreli
esont opr
oduce
market
ingmat
eri
als(
pri
nt,
 
promoti
onalpr
oducts 
and 
pointofsale)t
omar kett
heirproduct
sandser
vices.
Themarketi
ng 
suppl
ychain 
i
softenmadeupofpartner
sinsi
deandoutsi
deoftheor
ganizat
ion–suchas
brandmanager
s,market
ingser
vices,
agenci
es,
dir
ectsal
esteams,
buyers,
pri
nter
s,f
ulf
il
lmenthousesand
manyother
s.
From pr
oductbr
ochuresandpr
omot i
onalf
lyer
st opoi
nt-of
-sal
esyst
emsandstor
esi gnage,eachofthese
suppl
iesmustbeacquir
ed,managedanddistr
ibutedt
ocust omer
s,sal
est
eams,branchof f
ices,
ret
ail
outl
ets,
deal
ers,
dist
ri
butor
sandotherkeyaudiencesaroundtheworl
d.

Fl
ow

Simil
artomanufactur
ingenvi
ronment
s,mar
ket
ingsuppl
ychai
nsar
epr
imar
il
ygov
ernedbyapr
ocessor
"f
low"thatt
ypi
call
yinvol
ves:

 Cr
eat
ion–i
dent
if
yinganddev
elopi
ngmar
ket
ingmat
eri
alst
omeetcust
omerneedand/
ort
osuppor
t
sal
esi
nit
iat
ives,

 Pr
oduct
ion–get
ti
ngmat
eri
alsi
nthei
rfi
nal
for
m ei
thert
hroughsour
cing,
pri
nti
ngor
 Webdev
elopment
,

 War
ehousi
ng–t
echnol
ogy
,st
oragest
rat
egy
,pl
anni
ng,

 Ful
fi
ll
ment–or
dermanagement
,ser
vicest
andar
ds,
shi
ppi
ngandt
racki
nguse/
consumpt
ion–how
material
sareusedanddi
spl
ayedi
nthef
iel
dandst
oredbasedonseasonal
i
tyorpr
oduct
/ser
vice
av
ailabil
i
ty,

 Feedback–col
l
ect
ingi
nfor
mat
ionf
orcont
inuousr
efi
nement
;fr
om i
nvent
oryr
epor
ti
ng,
management
met
ri
cs,
fiel
d/cust
omerf
eedback.

Technol
ogy

Thet echnologyfiel
dformeet i
ngt heneedst ot
heent i
remarketi
ngsuppl ychai
ni sstil
labitdi sconnected.A
newbr eedofcompr ehensive 
MarketingManagementPl atf
orms areont hei
rwayt othemar ket.These
plat
for msenablemar keterstogi
v eaccesst ot
heirmarketi
ngmat eri
alstoanyonet hatisresponsi blefor
promot ingthebrand.Thiscouldincludesalesteams,employees,vendors,par
tners,aff
il
iatesorany one
elsethemar ket
erdeterminesneedst heaccess.Ingeneral
theseplatfor
msar etaskedwi tht hefollowing
features:

 Pr
otectt
hebr
and,
prot
ectt
hebudgetandpr
otectt
hei
nvent
ory
:Asmar
ket
ersopenupt
heaccessf
or
peopl
etopull
mar keti
ngmater
ial
sthroughautomatedmethodsther
emustbecont
rol
sinpl
acet
o
ensur
etheyarebeingusedi
ncompl i
ancewiththecorpor
atedi
rect
ives.

 Pr
omot
ethebr
and;
Phy
sical
l
y,Di
git
all
yandSoci
all
y:Thepl
atf
ormsmustbeabl
etosuppor
tanumber
ofdi
ff
erentmedi
umst
obeabl
etot
rul
yhandl
etheent
ir
emar
ket
ingsuppl
ychai
n.

 Pr
opagat
ethemat
eri
als;
Qui
ckl
y,Easi
l
yandEf
fi
cient
ly:
Wit
hcompl
exsuppl
ychai
nst
heset
echnol
ogi
es
mustbeabl
etoconnecttomult
ipl
evendors/
manufactur
ersandensuret
heyhav
etheabi
l
ityt
oqui
ckl
y
pr
oduce,
procur
eandfulf
il
lthemater
ial
stothet
argeteddest
inat
ion.

Fazi
lShai
khPage10
(8a) EXPLAINCONTENTSOFPROJECTREPORT?
Ans.Pr oj
ectRepor tisa 
wri
ttendocument  
relati
ngtoanyi nvestment.Itcont
ainsdat
aont hebasi
sof
whichthe projecthasbeenappraised andfoundf easi
ble.Itconsist
sofi nf
ormati
ononeconomi c,t
echnical
,
fi
nancial,
manager i
alandpr
oduct i
onaspect s.Itenabl
est heentrepreneurtoknowtheinputsandhelpshim
toobtainloansf r
om banksorfinancialInst
it
ut i
ons.

ContentsofaProj
ectRepor
t
Fol
lowingaret
hecontentsofapr
ojectr
epor
t.

Generali
nformat i
on:
Thefeasi
bili
tyreportmustincludetheanal
ysi
soft heindustryt
owhichitbel
ongs.Ther
epor
tshoul
ddeal
wit
hdescripti
onoft ypeofindustr
y,it
spri
ori
ty,pastperf
ormance,
i
ncreaseinproduction,r
oleofpubli
csector,
technology,al
locat
ionoff
undsand
i
nformati
onaboutt heenterpri
se.

Preli
minaryAnal y
sisofalternati
ves
Thedet ai
lsli
kegapbet weendemandandsuppl yofpr oposedpr oducts,avail
abil
it
yof
capacity,
li
stofallexi
sti
ngpl antsinindustr
y,indicat
ingt heircapacit
y,levelofproducti
on
attai
ned,li
stofpresentprojectsandlistofproposedpr ojects.Al
ltechnical
lyfeasi
bleopti
ons
areconsideredhere.Locationofplant/proj
ect ,
requirementofanyf oreignexchange,
profi
tabil
i
ty,ret
urnonInvest ment,al
ternat
ivecostcal culationsetc.
,aret obepresented.

Proj
ectDescr i
pti
on
Thefeasibi
li
tyreportshouldprovideabri
efdescripti
onofthet echnology/processselected
fort
hepr oj
ect,i
nformationpertaini
ngt
ot hesel
ect i
onofopt i
mal locati
on,popul ati
on,
water.Land,envi
ronment ,pol
l
utionandotherenvironmentalproblemset c.,
aret obe
provi
ded.
Thereportshouldcontaindetail
sofoperati
onalrequirementsoft heplant,r
equi rementof
water,power,per
sonnel,land,t
ranspor
t,const
ructiondetai
lsforplantandof ficesetc.

Market
ingplan:
Thedetai
l
sl i
kemarket
ingpl
an,
demand,
tar
getpr
iceofpr
oduct
,di
str
ibut
ionmet
hodset
c.,
aret
obepr esent
ed.

Capi
tal
requi
rementsandcosts
I
nfor
mationwi
thregar
dtocapit
alr
equi
rementandcost
swithbreakupar
etobe
pr
ovi
ded.Theest
imatesshoul
dbereal
i
sti
candbasedonlogicali
nfor
mati
on.

Fi
nancialAnal
ysis
Fi
nancialanal
ysisi
sessential
t oassessthefi
nanci
alviabi
li
tyoft
hepr oj
ect.
Aproformabalance-
sheet,detail
sofdepreci
ati
on,cl
earanceforf
oreignexchange,
det
ail
s
ofanyincomet axr
ebate,
incent i
vesforbackworkareasaretobeincluded.

Economi
cAnalysis
Soci
alpr
ofi
tabi
l
ityanal
ysi
sistobemade.I
mpactoftheoper
ati
onsonf
orei
gnt
rade,
dir
ect
cost
sandbenefi
tsaretobeincl
udedi
ntherepor
t.

Miscell
aneousaspect
s
Dependinguponthenatur
eandsi
zeofoper
ati
onofapar
ticul
arpr
oject
,anyot
her
rel
evantinf
ormat
ionmaybeincl
udedi
ntheproj
ectr
epor
t.

(
8b) EXPLAI ON ?
NTYPESOFREPORTSANDMETHODSOFREPORTGENERATI

Ans.Ty
pesofRepor
ts
Ty
pe#1.
 For
malorI
nfor
malRepor
ts:

For
mal
repor
tsar
ecar
eful
l
yst
ruct
ured;
theyst
ressobj
ect
ivi
tyandor
gani
zat
ion,
cont
ainmuchdet
ail
,andar
ewr
it
teni
nast
yle

t
hatt
endst
oel
i
minat
esuchel
ement
sasper
sonal
pronouns.I
nfor
mal
repor
tsar
eusual
l
yshor
tmessageswi
thnat
ural
,casual

useofl
anguage.Thei
nter
nal
memor
andum cangener
all
ybedescr
ibedasani
nfor
mal
repor
t.

Fazi
lShai
khPage11
Ty
pe#2.
 Shor
torLongRepor
ts:

Thi
sisaconf
usi
ngcl
assi
fi
cat
ion.Aone-
pagememor
andum i
sobv
iousl
yshor
t,andat
went
ypager
epor
tiscl
ear
lyl
ong.But

wher
eist
hedi
vi
dingl
i
ne?Beari
nmi
ndt
hatasar
epor
tbecomesl
onger(
orwhaty
oudet
ermi
neasl
ong)
,itt
akesonmor
e

char
act
eri
sti
csoff
ormal
repor
ts.

Ty
pe#3.
 I
nfor
mat
ionalorAnal
yti
calRepor
ts:

I
nfor
mat
ional
repor
ts(
annual
repor
ts,
mont
hlyf
inanci
alr
epor
ts,
andr
epor
tsonper
sonnel
absent
eei
sm)car
ryobj
ect
ive

i
nfor
mat
ionf
rom onear
eaofanor
gani
zat
iont
oanot
her
.Anal
yti
cal
repor
ts(
sci
ent
if
icr
esear
ch,
feasi
bil
i
tyr
epor
ts,
andr
eal
-

est
ateappr
aisal
s)pr
esentat
tempt
stosol
vepr
obl
ems.

Ty
pe#4.
 Pr
oposal
Repor
t:

Thepr
oposal
isav
ari
ati
onofpr
obl
em-
sol
vi
ngr
epor
ts.Apr
oposal
isadocumentpr
epar
edt
odescr
ibehowoneor
gani
zat
ion

canmeett
heneedsofanot
her
.Mostgov
ernment
alagenci
esadv
ert
iset
hei
rneedsbyi
ssui
ng“
request
sforpr
oposal
”orRFPs.

TheRFPspeci
fi
esaneedandpot
ent
ial
suppl
i
erspr
epar
epr
oposal
repor
tst
ell
i
nghowt
heycanmeett
hatneed.

Ty
pe#5.
 Ver
ti
cal
orLat
eralRepor
ts:

Thi
scl
assi
fi
cat
ionr
efer
stot
hedi
rect
ionar
epor
ttr
avel
s.Repor
tst
hatmor
eupwar
dordownwar
dthehi
erar
chyar
eref
err
edt
o

asv
ert
ical
repor
ts;
suchr
epor
tscont
ri
but
etomanagementcont
rol
.Lat
eral
repor
ts,
ont
heot
herhand,
assi
sti
ncoor
dinat
ioni
n

t
heor
gani
zat
ion.Ar
epor
ttr
avel
i
ngbet
weenuni
tsoft
hesameor
gani
zat
ionl
evel
(pr
oduct
ionandf
inancedepar
tment
s)i
s

l
ater
al.

Ty
pe#6.
 I
nter
nalorExt
ernalRepor
ts:

I
nter
nal
repor
tst
rav
elwi
thi
ntheor
gani
zat
ion.Ext
ernal
repor
ts,
suchasannual
repor
tsofcompani
es,
arepr
epar
edf
or

di
str
ibut
ionout
sidet
heor
gani
zat
ion.

Ty
pe#7.
 Per
iodi
cRepor
ts:

Per
iodi
crepor
tsar
eissuedonr
egul
arl
yschedul
eddat
es.Theyar
egener
all
yupwar
ddi
rect
edandser
vemanagementcont
rol
.

Pr
epr
int
edf
ormsandcomput
er-
gener
ateddat
acont
ri
but
etouni
for
mit
yofper
iodi
crepor
ts.

Ty
pe#8.
 Funct
ionalRepor
ts:

Thi
scl
assi
fi
cat
ioni
ncl
udesaccount
ingr
epor
ts,
mar
ket
ingr
epor
ts,
financi
alr
epor
ts,
andav
ari
etyofot
herr
epor
tst
hatt
aket
hei
r

desi
gnat
ionf
rom t
heul
ti
mat
euseoft
her
epor
t.Al
mostal
lrepor
tscoul
dbei
ncl
udedi
nmostoft
hesecat
egor
ies.Andasi
ngl
e

r
epor
tcoul
dbei
ncl
udedi
nsev
eral
classi
fi
cat
ions.

Repor
ti
ngMet
hods

Repor
ti
ng Met
hod#1.Wr
it
tenRepor
ti
ng:

Wr
it
tenr
epor
ti
ngi
sthemostcommonmodeofr
epor
ti
ng.I
tmaybei
nfor
m ofal
ett
er,
cir
cul
arormanual
.Wr
it
tenr
epor
ti
ngi
s

mostpopul
armode,
reasonbei
ng,
repor
tscanbekeptasl
egal
recor
dsbyusi
ngt
hismodeandcanbeusedasr
efer
ence

sour
ces.Wr
it
tenr
epor
tsar
eal
way
scar
eful
l
yfor
mul
ated.Wr
it
tenr
epor
ti
ng,
somet
imessav
est
imeandmoney
.Howev
eri
t

suf
fer
sfr
om poorexpr
essi
onofsender
s.

Fazi
lShai
khPage12
Repor
ti
ng Met
hod# 
2.Gr
aphi
cRepor
ti
ng:

Ther
epor
tsmaybepr
esent
edi
nthef
orm ofchar
ts,
diagr
amsandpi
ctur
es.Theser
epor
tshav
etheadv
ant
ageofqui
ckgr
aspof

t
rendsofi
nfor
mat
ionpr
esent
ed.Al
ookatt
hechar
tordi
agr
am mayenabl
ether
eadert
ohav
eani
deaaboutt
hei
nfor
mat
ion.I
n

t
hemoder
nti
mesgr
aphsandchar
tsar
ebecomi
ngmor
epopul
arasamodeofpr
esent
inganyki
ndofi
nfor
mat
ion.Var
ious

managementpr
ofessi
onal
sex
presst
hei
rvi
ewst
hroughgr
aphsandchar
ts.Gr
aphi
cal
present
ati
onbei
ngmostef
fect
ive

medi
um ofr
epor
ti
ngr
emov
esdul
l
nessandconf
usi
onswhi
chweusual
l
yfi
ndi
not
herf
ormsofr
epor
ti
ng.

Repor
ti
ng Met
hod# 
3.Or
alRepor
ti
ng:

Or
alr
epor
ti
ngmaybedonei
nthef
oll
owi
ngf
orms:

(
a)Gr
oupmeet
ings

(
b)Conv
ersat
ionwi
thi
ndi
vi
dual
s.

Or
alr
epor
ti
ngi
shel
pful
onl
ytoal
i
mit
edext
ent
.Itcannotf
orm apar
tofi
mpor
tantmanager
ial
deci
sionmaki
ng.Fort
hepur
pose,

t
her
epor
tsmustbei
nwr
it
ingsot
hatt
hesemayber
efer
redi
nfut
uredi
scussi
onst
oo.Acombi
nat
ionofwr
it
ten,
graphi
cand

or
alr
epor
ti
ngmaybeusef
ulf
oref
fect
iveandef
fi
ci
entr
epor
ti
ngi
nanor
gani
sat
ion.

(9a) EXPLAI NADVANTAGESANDDISADVANTAGESOFSMALLSCALEI ES?

NDUSTRI
Ans.Adv ant
agesorMerit
sofSmall ScaleIndustr
ies
SmallScaleIndust
ri
eshavealway
spl ayedani mportantr
olei
ntheeconomicdev
elopmentoft
hecount
ry.
Thefol
lowingarethemerit
sofSmall ScaleIndust
ries:

1.Potenti
alf
orlargeempl oyment
SmallScaleIndustr
ieshav epotenti
alt
ocreat
eemploy
mentopportuni
ti
esonamassi v
escal
e.Theyare
l
aborintensi
veinchar acter
.Theyusemorelabort
hanotherf
act
orsofproduct
ion.Theycanbesetupin
shor
tt i
meandcanpr ov i
deempl oy
mentopport
uni
ti
estomorenumberofpeople.Thisisi
mport
antfora
l
aborabundantcount r
ylikeIndi
a.

2.Requirementoflesscapital
Smal lScal
eI ndust
ri
esr equirelesscapi
talwhencomparedtolargescal
eindustr
ies.I
ndi
aisacapital
scarcecountryandt her
eforeSmal lScal
eIndust
ri
esaremoresuit
abl
eintheIndi
ancontext
.Theycanbe
star
tedandr unbysmal lent
r epr
eneurswhohaveli
mit
edcapi
tal
resour
ces

3.Cont r
ibut iontoi ndustrialoutput
Productsmanuf acturedbySmal lScal eIndustri
esf orm asignificantpor ti
onoft heindust r
ialoutputofthe
count r
y.Theypr oduceanumberof  
consumergoods  aswel lasi ndustri
alcomponent sinl ar
gequant i
ti
es
andsat isfyt heneedsofconsumer s.Theconsumergoodspr oducedbySmal lScaleIndust r
iesarecheaper
andsat isfyt herequi r
ement soft hepoor ersecti
ons.
4.Cont r
ibut iontoexpor ts
Smal lScaleI ndustri
escont ri
butenear l
y40percentt ot heindust rialexport
soft hecount ry.Productssuch
ashosi ery,kni t
wear ,handl oom,gemsandj ewel l
ery,handicrafts,coi rproducts,texti
les,sportsgoods,
fi
nishedl eat her,leatherpr oducts,wool engar ments,processedf ood,chemi calsandal li
edpr oductsanda
l
argenumberofengi neeringgoodspr oducedbyt heSSIsect orcont ri
butesubstantial
lytoI ndia’
sexports.
Furtherpr oduct s pr oduced by Smal lScal eI ndustri
es ar e used i nt he manuf acture ofpr oduct s
manuf actur edandexpor tedbyl ar gescal eindustri
es.Thereforet heycont ri
butebot hdirectlyandindir
ectly
toexpor tsandear nvaluabl eforeignexchange.

5.Earni
ngf or
eignexchange
SmallScaleIndustr
iesear nvaluableforei
gnexchangef orthecountr
ybyexporti
ngpr oductstodiffer
ent
countri
esofthewor l
d.Att hesamet i
me,t hei
rimport
sar ever
yli
tt
leandsotherei
sl essforei
gnexchange
outgo.Theref
oreSmal lScaleI
ndust ri
esarenetforei
gnexchangeearner
s.Fore.
g.Smal lScal
eIndustr
iesin
Tir
uppurcontri
butetoasubst antialport
ionofIndi
a’stext
il
eexpor
tsandearnval
uableforeignexchangefor
thecountry
.

Fazi
lShai
khPage13
6.Equi
tabl
edistr
ibuti
on
Largescal
eindustr
iesleadtoinequalit
iesi
nincomedi st
ributi
onandconcentrat
ionofeconomi
cpower.But
smallscal
eindustr
iesdistr
ibut
er esourcesandweal t
hmor eequi
tabl
y.Iti
sbecauseincomeisdist
ri
buted
amongmor enumberofwor ker
ssi nceiti
slabori
ntensiv
e.Thisresul
tsinbotheconomicandsoci
alwel
fare.

Demer
it
sorDi
sadv
ant
agesofSmal
lScal
eIndust
ri
es
Thoughsmall
scaleindust
ri
eshav
esever
al 
advantages 
theysuf
ferf
rom t
hef
oll
owi
ngdemer
it
s
Demeri
tsorDisadv
antagesofSmall
Scal
eIndust
ri
es
1. 
Lackeconomi esofscal e:SSI’sproducei nsmal lquantiti
es.Theref
orethey donotenjoyeconomi esof
scale 
inpurchases,producti
onandmar keting.Theircost sareconsequentlyhi
gherandt heyarenotabl eto
compet ewi t
hlargescal eunits.Theywer eabl et osur viv
ewhenmanyoft hei t
emswer er eservedfor
producti
onbySSI ’s.Butaftertheeconomi cl iberal
izati
onpol icyfol
l
owedbyt hegov er
nment,manyoft he
i
temshav ebeenDe- reserv
ad.Ther efor
el argescal euni t
scanal soproducepr oductswhichwer eear l
i
er
producedonlybysmal l
scaleunits.Manyoft heSSI’shav ecloseddownunabl et ocompetewithlargescale
producersandcheapi mpor t
sf r
om othercount r
ies,especiall
yChina.
2. 
Lowwages:ThoughSSI ’
sar elaborintensive,the wagespai dinSSI’
sarelow  whencompar edt othose
paidinlargescalei ndustr
ies.InmanySSI ’
sbecauseof  
lackofsaf etymeasur es 
andproper  
tr
ainingto
workers,acci
dentsandi nj
uriesarecommonoccur r
ences

3. 
Lackofmodernizati
on:Duetothei
rsmal
lscal
eofoper
ati
onsandli
mit
edcapit
alr
esour
ces,SSI
’sar
enot
abletoinvestinmoder ni
zati
on.They 
do nothav
eaccesst olat
esttechnol
ogy
 andther
efor
ecannot
i
mpr ov
etheiref
fi
ciencyofoper
ati
ons.

4.
 I
nef
fi
ciency :Duetol ackofscal eeconomies,l
ow ski
l
ledandpoor l
yt r
ainedworker
sandusageof
out
dat
edt echnology,
smal lscaleindustr
ysuf
fersfr
om 
inef
fici
encyofoperat
ions.Thei
rpr
oduct
ivi
tyi
slow
whencompar edtolargescaleindustri
es.

5.
 Overcr
owdi ng:
Itisqui
teeasytosetupanSSI
.Thecapi
talrequi
rementi
slessandpr
ocedur
alfor
mal
it
ies
ar
esi mple.Thisleadsto i
ntensecompeti
ti
onandovercrowding.Itmayleadtocut-
thr
oatcompet
it
ion
af
fecti
ngt hei
rsurvi
val
.

6. 
Sickness:Duetotheeaseofset ti
ngupandbecauseoft heincenti
vesavai
lable,
manyunempl oy
edy outh
setupSSI ’
swi t
hv er
yli
tt
lebusi nessknowledgeandskill
s.Theyfinditdi
ffi
culttosurvi
veinthebusiness
andcl osedownt hei
roperati
ons.Furtherbecauseofthe 
problemsofpr ocuri
ngf i
nance,useof 
outdated
technology 
and 
lackofmar ket
ingexperti
se manySSI’
sincurl
ossesandar eforcedtoclosedown.

(
9b) EXPLAI FFERENTTYPESOFPATENTS?
NDI

Ans.Di
ff
erentt
ypesofpat
entappl
i
cat
ionsexi
stsot
hati
nvent
orscanpr
otectdi
ff
erentki
ndsofi
nvent
ions.

Sav
vyi
nvent
orscanut
il
izet
hedi
ff
erentki
ndsofpat
entappl
i
cat
ionst
osecur
ether
ight
stheyneedt
o

pr
otectt
hei
rinv
ent
ions.
Ther
ear
efourdi
ff
erentpat
entt
ypes:

 Ut
il
it
ypat
ent
. 
Thi
siswhatmostpeopl
ethi
nkofwhent
heyt
hinkaboutapat
ent
.It
'
sal
ong,
techni
cal
documentt
hatt
eachest
hepubl
i
chowt
ouseanewmachi
ne,
process,
orsy
stem.Theki
ndsof
i
nvent
ionspr
otect
edbyut
il
it
ypat
ent
sar
edef
inedbyCongr
ess.Newt
echnol
ogi
esl
i
kegenet
ic
engi
neer
ingandi
nter
net
-del
i
ver
edsof
twar
ear
echal
l
engi
ngt
heboundar
iesofwhatki
ndsof
i
nvent
ionscanr
ecei
veut
il
it
ypat
entpr
otect
ion.
 Pr
ovi
si
onal
pat
ent
. 
Uni
tedSt
atesl
awal
l
owsi
nvent
orst
ofi
l
eal
essf
ormal
documentt
hatpr
ovest
he
i
nvent
orwasi
npossessi
onoft
hei
nvent
ionandhadadequat
elyf
igur
edouthowt
omaket
he
i
nvent
ionwor
k.Oncet
hati
sonf
il
e,t
hei
nvent
ioni
spat
entpendi
ng.I
f,howev
er,
thei
nvent
orf
ail
sto
f
il
eaf
ormal
uti
l
itypat
entwi
thi
nay
earf
rom f
il
ingt
hepr
ovi
si
onal
pat
ent
,heorshewi
l
lloset
hisf
il
ing
dat
e.Anypubl
i
cdi
scl
osur
esmader
ely
ingont
hatpr
ovi
si
onal
pat
entappl
i
cat
ionwi
l
lnowcountas
publ
i
cdi
scl
osur
est
otheUni
tedSt
atesPat
entandTr
ademar
kOf
fi
ce(
USPTO)
.
 Desi
gnpat
ent
. 
Thi
spat
entof
ferpr
otect
ionf
oranor
nament
aldesi
gnonausef
uli
tem.Theshapeof

Fazi
lShai
khPage14
 abot
tl
eort
hedesi
gnofashoe,
forex
ampl
e,canbepr
otect
edbyadesi
gnpat
ent
.Thedocument
i
tsel
fisal
mostent
ir
elymadeofpi
ctur
esordr
awi
ngsoft
hedesi
gnont
heusef
uli
tem.Desi
gn
pat
ent
sar
enot
ori
ousl
ydi
ff
icul
ttosear
chsi
mpl
ybecauset
her
ear
ever
yfewwor
dsusedi
nadesi
gn
pat
ent
.Inr
ecenty
ear
s,sof
twar
ecompani
eshav
euseddesi
gnpat
ent
stopr
otectel
ement
sofuser
i
nter
facesandev
ent
heshapeoft
ouchscr
eendev
ices.
 Pl
antpat
ent
. 
Justwhati
tsoundsl
i
ke,
apl
antpat
entpr
otect
snewki
ndsofpl
ant
spr
oducedby
cut
ti
ngsorot
hernonsex
ual
means.Pl
antpat
ent
sgener
all
ydonotcov
ergenet
ical
l
ymodi
fi
ed
or
gani
smsandf
ocusmor
eonconv
ent
ional
hor
ti
cul
tur
e.

(
10a) EXPLAI
NSTEPSI
NVOLVEDI
NSMALLSCALEI ES?
NDUSTRI

Ans. St
epst
ost
artSmal
lscal
eIndust
ri
es

St
ep1:Deci
siont
obeSel
f-
Empl
oyed

St
ep2:Anal
yzi
ngSt
rengt
hs,
Weakness,
Oppor
tuni
ti
esandThr
eat
s 

St
ep3:Scanni
ngofBusi
nessEnv
ironment

St
ep 
4:Tr
aini
ng 

St
ep 
5:Pr
oductSel
ect
ion 

St
ep6:
 Mar
ketSur
vey

St
ep 
7:Fr
om ofor
gani
zat
ion

St
ep 
8:Locat
ion

St
ep 
9:Technol
ogy
 

St
ep10:Machi
ner
yandEqui
pment

St
ep 
11:Pr
ojectRepor
tPr
epar
ati
on 

St
ep 
12:Pr
ojectAppr
aisal
 

St
ep 
13:Fi
nance

St
ep 
14:Pr
ovi
sionalRegi
str
ati
on 

St
ep15:Techni
cal
 Know-
How 

St
ep 
16:Powerandwat
erconnect
ion

St
ep 
17:I
nst
all
ati
onofMachi
ner
y 

St
ep 
19:Pr
ocur
ementofRawmat
eri
als 

St
ep 
20:Pr
oduct
ion 

St
ep 
21:Mar
ket
ing

 
Step 
22:Qual
it
yassur
ance

St
ep 
23:Per
manentRegi
str
ati
on 

St
ep 
24:Mar
ketResear
ch 

Thesear
e24stepst
ostartsmall
scal
eindustr
iesi
nany
wher
eandt
heyar
emosti
mpor
tantf
act
orwhose
nobodyi
gnor
esansuccessful
entr
epr
eneurs.

Fazi
lShai
khPage15
(10b) EXPLAI
N KI
ADB,
KSSI
DC,
DICANDNSI
C?
Ans.

KARNATAKAI NDUSTRI ALAREASDEVELOPMENTBOARD( KI ADB)

TheKar natakaindustrialareasdev elopmentboar disstatutoryboar dconst i
tutedundert heKar nataka
i
ndust ri
alareadev el
opmentactof1996.Si ncet heni ti
si nthebusi nessofappor t
ioninglandf orindustri
es
andgear ingupf acil
i
tiestocar ry
outoperati
ons.TheKI ADBnowacqui r
esandpr ovidesdev el
opedl and
suitedforindustri
ali
zation, bydrawingupwel llaid-outplotsofv aryingsizestosui tdiff
erentindustrieswith
requisi
teinfrastr
ucturefaci l
it
ies.Thefacil
it
iesincluder oads,dr ai
nage, watersuppl yetc.Theameni ti
es
suchasbanks, postof fi
ces, fi
restati
ons,poli
ceout posts,ESIdispensar i
eset careal soprovi
ded.I talso
planstoinitiat
ethepr ovisionofcommonef fl
uentt reatmentpl antswher evernecessar y.KIADBhas
acquiredal andof39, 297acr esoutofwhi ch21, 987acr eshadbeendev el
opedt il
lMar ch1996.Dev eloped
i
ndust ri
alplotshadbeenal lottedto7882uni t
s.

Kar
nat
akaSt
ateSmal
lIndust
ri
esDev
elopmentAut
hor
it
yKSSI
DC

TheStateSmal lI
ndust ri
esDev elopmentCorporat
ions( SSIDC)wer esetsupi nv ar
iousst at
esundert he
companies’act1956, asst at
egov ernmentundert
aki ngstocatert othepri
mar ydev elopmental needsof
thesmallti
nyandv ill
agei ndustr
iesinthest
ate/uniont er
ri
tori
esundert heirjur
isdi
ction.Incorporati
on
underthecompani esacthaspr ovidedSSI
DCswi thgr eat
eroper ati
onalfl
exibil
i
tyandwi derscopef or
undert
akingav ari
etyofact iv
iti
esf ort
hebenefi
toft hesmal lsector.Theimpor t
antf uncti
onsper for
medby
theSSIDCsinclude:
●Topr ocureanddi st
ributescarcer awmateri
als.

●Tosuppl
ymachi
ner
yonhi
repur
chasesy
stem.

●Topr
ovi
deassi
stancef
ormar
ket
ingoft
hepr
oduct
sofsmal
l
-scal
eindust
ri
es.

●Toconst
ructi
ndust
ri
alest
ates/
sheds,
prov
idi
ngal
l
iedi
nfr
ast
ruct
uref
aci
l
iti
esandt
hei
rmai
ntenance.

●Toext endseedcapi
talassi
stanceonbehal
foft
hest
ategov
ernmentconcer
nedpr
ovi
demanagement
assi
stancetoproduct
ionunit
s.

DISTRI CTI NDUSTRI ESCENTERS( DIC)

TheDi stri
ctIndust r
iesCent ers(DI
C’s)progr ammewasst ar
tedi n1978wi thav i
ewt oprovideintegr
ated
admi ni
st r
ativeframewor katthedist
rictl
ev el f
orpr omotionofsmal l
scaleindust r
iesi nrur
alareas.The
DIC’sar eenv i
sagedasasi ngl
ewindowi nter actingagencyatt hedistri
ctlevelprovidingserviceand
suppor ttosmal lentrepreneursunderasi ngl er oof.DIC’
sarethei mplement i
ngar m oft hecent r
alandstat
e
government soft hev ar
iousschemesandpr ogr ammes.Regi strat
ionofsmal lindustriesisdoneatt he
dist
rictindustri
escent r
eandPMRY( PradhanMant riRoj
garYoj ana)isalsoimpl ement edbyDI C.The
organizationalstructureofDI CSconsistsofGener alManager,FunctionalManager sandPr ojectManagers
toprov i
det echnicalserv i
cesintheareasr elev anttotheneedsoft hedistri
ctconcer ned.Managementof
DICisdonebyt hest ategov er
nment.

NATI ONALSMALLI NDUSTRIESCORPORATI ON(NSI C)

TheNat i
onalSmall I
ndust
ri
esCor porati
on(NSIC),anenterpr
iseundertheunionministr
yofindust
ri
eswas
setupin1955i nNewDel hit
opr omot eaidandfacil
i
tatethegrowthofsmal l
scaleindustr
iesi
nthecount
ry.
NSICof f
ersapackageofassistancef orthebenefi
tofsmal l
–scal
eent er
pri
ses.
1.Singl
epointregistr
ati
on:Registr
ati
onundert hi
sschemef orparti
cipat
ingingovernmentandpubli
c
sect
orundertakingtender
s.

2.I
nfor
mat
ionser
vice:NSI
Ccont
inuousl
yget
supdat
edwi
tht
hel
atestspeci
fi
cinf
ormat
ionon

busi
nessl
eads, t
echnologyandpoli
cyissues.
3.Rawmat er
ialassi
stance:NSI
Cfulfi
lsrawmater
ial
requi
rement
sofsmal
l
-scal
eindust
ri
esandpr
ovi
des
rawmater
ialonconvenientandfl
exibl
eterms.

4.Meet
ingcredi
tneedsofSSI :NSI
Cfaci
l
itat
esanct
ionsoft
erml
oanandwor
kingcapi
tal
credi
tli
mitof
smal
lenter
pri
sefrom banks.

5.Per
for
manceandcr
edi
trat
ing:NSI
Cgi
vescr
edi
trat
ingbyi
nter
nat
ional
agenci
essubsi
dized

forsmall
enter
pri
sesupto75%togetbet
tercr
editter
msfr
om banksandexportor
der
sfrom f
orei
gn
buyer
s.
6.Marketi
ngassi
stancepr
ogr
amme:NSI Cparti
cipat
esi
ngover
nmenttendersonbehal
fofsmall

Fazi
lShai
khPage16
ent
erpr
isest
opr
ocur
eor
der
sfort
hem.

Fazi
lShai
khPage17
 ModelQuest
ionPaper
-2 Wi
thAnswer
s 18cs51
MANAGEMENTANDENTREPRENEURSHI PFORI TI
NDUSTRY

(
1a) DEFI
NEMANAGEMENT. EXPLAI NMANAGEMENTFUNCTI ONS.?
Ans. . Managementi
safuncti
onofguidanceandl
eader
shi
pcont
rol
ofef
for
tsofagr
oupori
ndi
vi
dual
s
i
nordert
oachi
evegoal
sofanorgani
zat
ion.

Fazi
lShai
khPage18