20-04-2011, 03:07 PM
Submitted By:
rohit
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ENTREPRENEUR:
Entrepreneur is the owner of the business who contributes the capital and bears the risk of uncertainties in business life. He organizes, manages, assumes the risks and takes the decision about the enterprise. He takes all the steps to establish undertaking, coordinates the various factors of production, and gives it a start. He should be able to evaluate, business, opportunities, together all the necessary resources and ensures the success of the enterprise. Entrepreneur views are broadly classified into three groups:
1. Risk bearer
2. Organizer
3. Innovator
Entrepreneur as a Risk Bearer:
According to Richard Cotillion, a rich man living in France was the first who introduced the term entrepreneur as an agent who buys the factory production at certain price in order to combine them into product with a view to selling it at certain price. He illustrated the farmer who pays out contractual income, which is certain to landlord, labour and sells at price that is uncertain. Thus they too are risk bearer agent of production. Uncertainty is defined as the risk which cannot be insure against and incalculable.
Entrepreneur as an Organizer:
According to Jean-Baptize, Entrepreneur is a function of co-ordination, organization and supervision. According to him, an Entrepreneur is one who combines the land of one, the labor of another, capital of one another and thus produces product. By selling the product in the market he pays interest in capital, rent on land, wages to labor and what remains in his profit.
Entrepreneur as an Innovator:
According to Joseph who has introduced new combination of factors of production said, it may occur in any one of the following five forms:
1. The introductions of new product in market.
2. The instituting of new production technique, which is not yet tested by experience in the branch of manufacture concern.
3. The opening of new market into which the specific product has not previously entered.
4. The discovery of new source of supply of raw material.
5. The carry input of new form of organization of any industry by creating of monopoly position or breaking up of it.
Characteristics of an Entrepreneur:
1. Hardworking, willingness
2. Desire of high achievement
3. Highly optimistic
4. Independence
5. Foresight
6. Good organizer
7. Innovative
8. Energetic
9. Flexible
10. Knowledgeable
11. Resourceful and should be able to take initiative.
Functions of Entrepreneur
1. Idea generation
2. Determination of business objectives
3. Product analysis and market research
4. Determination of form of ownership of organization
5. Completion of promotion facilities
6. Raising the necessary funds
7. Proper use of machine and material
8. Recruitment of men
9. Undertaking business funds
10. To manage business and take decision, whenever required.
11. To study the market and to take advantage from opportunities.
Entrepreneur Development
The myth that entrepreneurs are born not made no longer holds good. Entrepreneur characteristic can be developed through entrepreneur development program. The duration of training under this program ranges from 7 days to 3 months. The basic objectives of entrepreneur development program can be started as:
1. To develop and strengthen their entrepreneurship quality.
2. To analyze the environment relating to small-scale industry.
3. To select project and product.
4. To formulate the project.
5. To know the influence support needed for launching enterprise.
6. To ensure providing self-employment to a number of young men and women.
7. To acquire the basic managerial skills.
The biggest advantage of entrepreneur development program has bought about is creating a social awareness in the country. It has provided new paths and carrier choices to large number of persons in the systematic manner. It has bought in fresh thinking and attitudinal changes amongst families who are traditionally from non-business background.
Basis & Presumption
The machinery and the equipment are of a particular type and are available in the open market. The cost indicated against the raw material, utilities and other expenditures are approximate and are on the basis of the local market.
Role of Small Sector
The contribution of this sector is c\considerably to Indian economy. About 204 million units are provided employment to over 14 million people. This sector is also contributing about one third of the country’s export, today central and state governments are providing all type of help to interested persons to solve their problems regarding small scale sector. Small scale industries plays dynamic role in acerbating the rate of industrial growth and attaining economic prosperity of nation. Therefore in a developing country like India small-scale industries are much importance for building up of national economy.
Advantages of Small Scale Industries
1. These create immediate and permanent employment in large scale at relatively small capital cost.
2. These can immediately meet a substantial part of the increased demand for consumer goods.
3. These offer a good method of ensuring more equitable distribution of national income.
4. These provide more chances of work and income.
Objectives of Small Scale Industries
1. Employment generation
2. Equitable distribution of national income
3. To meet increased demand
4. Decentralization
5. Better utilization of services
6. Balanced economic development
7. Self employment
8. Labor intensive and capital saving
9. With small investment production can be easily started
INTRODUCTION TO SSI:
The SSI (Small Scale Industries) today is immense for the growth of country. Small Scale Industries are the industries which are run with the help of hired labour and which also use some simple machine and power.
The investment scale in the industry varies from 5 lakhs to 4 crore for the fixed assets. Irrespective to number of workers engaged is called small-scale unit.
In India these types of industries are promoted to meet with the problems of excess population and unemployment so the government of India promotes entrepreneur to set up small scale industries by aiding him by giving loans, subsidiaries, land, guidance etc. The strategy adopted by the government, is:
1. Public entrepreneurship should remain confirmed only to those industries and sectors where private enterprise, individual or corporate, is generally not attracted. Existing public entrepreneurship be improved through better management and by putting relatively greater emphasis on research and development. There is need to streamline the R&D wing of public sector enterprises.
2. All possible efforts are made very seriously (not carefully) for the development of an industrial culture. It should be realized that the central core of entrepreneurship is the motive force since by its very nature, entrepreneurship implies positive action and initiative, motivated individuals with the right kind of combination of abilities and attributes can pursue their goal with unremitting courage and enthusiasm.
3. There is need to develop management education and industrial training.
4. The development of backward regions and areas constitutes a new challenge, programs for their development be drawn up and should be effectively implemented.
5. Adequate measures are a must for mobilizing and fostering the entrepreneurial talent in the country. In the context, it should be realized that entrepreneurs are not the gift of a particular class.
6. Economic administration by the state should be improved and made more effective so that economic policies may fully achieve their objectives in the overall interest of the economy.
7. Financial institutions should provide adequate and timely credit and technical assistance, especially to the small and medium sized enterprises. They may also impart knowledge about the needs of the economy and they should file their massive data in terms of growth of new entrants or entrepreneurs in the field of industry.
MARKETING MANAGEMENT IN SSI:
What is marketing is? Why it is needed? Are such questions that are to be answered for up liftment of SSIs.
According to P.Felton marketing can be described as –
“A cooperate state of mind that insists on the integration and coordination of all marketing functions which in turn answered with all other cooperate functions, for the basic objective of producing maximum long range corporate profits”.
Steps in marketing management
1. Product Planning
2. Sales Forecasting
3. Pricing Policy
4. Distribution Policy
5. Role of advertising (personnel selling)
6. Quality
1. Product planning
Product planning may be defined as “the act of marketing out and supervising the search, screening, development and commercialization of new products, modification of existing lines.”
Product planning involves three important considerations –
1. The development and introduction of new ideas
2. Modification of existing lines as may be required in terms of changing consumers need and preferences.
3. The discontinuance of elimination of marginal or profitable products.
Products can be classified as:
1. Consumer Products
2. Industrial Products
3. Defense Products
2. Sales forecasting
A sales forecast is an estimate for the amount or unit sale for a specified further period under a proposed marketing plan or programme.
As defined by the American Marketing Association It is” an estimate of sales in dollars or physical units for a specified further period under a proposed marketing or programme under an assumed set of economic and other forces outside the unit for which the forecast is made”.
Marketing of proper sales forecast requires an assessment of
1. The outside uncontrollable likely influence the company sales.
2. The internal proposed changes in the marketing strategies and tactics of the company, which are likely to affect the sales.
Sales forecast can be for a specified product line or it can be for a market as a whole or for any portion of it. According to the time period, the sale forecast can be divided in three types-
1. Short range forecast – Which generally extended from a few weeks to about six month or at most one year in future. This is mostly done by companies’ day-to-day forecasts for their production control needs and to plan for long time financial needs.
2. Medium range forecast- Which extends from one year to about four years into future.
This type of forecasting is important for
1. Estimating profits, budgeting expenses etc.
2. Determining dividend policy.
3. Decide range of maintenance expenditure.
4. Determining schedule of operation.
It is useful for the following purpose-
1. Estimating inventory requirement
2. Providing adequate shipping facilities
3. Assessing production worker requirements
4. Estimating working capital needs
5. Setting production runs for each products
3. Long range forecast- Extending to at least five years into future and in case of really large organization extended over a longer period up to ten years or even more.
It is useful in following ways-
1. Anticipating the magnitude and timing of capital expenditures required new facilities in the future.
2. Determining probable trends and range of cash inflows from sales.
3. Estimating companies long-range personnel needs.
4. Highlighting future problems.
3. Pricing policy
Pricing is a very critical decision pricing decisions are not easy to make. Hence sound-pricing policy must be adopted to ensure that the organization secures satisfactory profits. For pricing decision a marketing manager has to be familiar with economic
concept useful in pricing decision. He has to consider various pricing factors which influence pricing apart from cost such as the customer characteristics, the economic product characteristics, competitive environment and governmental control wherever applicable the price of the product materially effect the demand for it as well as the organization competitive ability for expenditure if the quality of product is to be improved the may be possible only if the customer are willing to pay a higher price for it. Besides, if the product is not properly priced there might be reluctance from the channels of distribution.
