Market Study /The 4 Ps of Marketing / Importance of an IDEA: Understanding Market Research

Market research is the process of gathering, analysing and interpreting market information on a product or service that is being sold in that market. It also includes information on:

• Past, present and prospective customers
• Customer characteristics and spending habits
• The location and needs of the target market 
• The overall industry 
• Relevant competitors

Market research involves two types of data:

• Primary information. This is research collected by yourself or by someone hired by you. 
• Secondary information. This is research that already exists and is out there for you to find and use. 

Primary research 

Primary research can be of two types:

• Exploratory: This is open-ended and usually involves detailed, unstructured interviews. 
• Specific: This is precise and involves structured, formal interviews. Conducting specific 

Secondary research

Secondary research uses outside information. Some common secondary sources are:

• Public sources: These are usually free and have a lot of good information. Examples are government departments, business departments of public libraries etc. 
• Commercial sources: These offer valuable information but usually require a fee to be paid. Examples are research and trade associations, banks and other financial institutions etc. 
• Educational institutions: These offer a wealth of information. Examples are colleges, universities, technical institutes etc. 

Success & Failures: Understanding Successes and Failures in Entrepreurship

Shaun is a famous entrepreneur, known for his success story. But what most people don't know, is that Shyam failed nervous times before his enterprise become a success. Read his interview to get an idea of what entrepreurship is really about, straight from an entrepreneur who has both, failed and succeeded. 

Interviewer: Shyam, I have heard6that entrepreneurs are great risk-takers who are never afraid of failing. Is this true? 

Shyam: Ha ha, no of course it's not true!  Most people believe that entrepreneurs need to be fearlessly enthusiastic. But the truth is, fear is a very normal and valid human reaction, especially when you are planning to star your own business! In fact, my biggest fear was the fear of failing. The reality is, entrepreneurs fail as much as they succeed. The trick is to not allow the fear of failing to step you from going ahead with your plans. Remember, failures are lessons for future success! 

Interviwer: What, according to you, is the reason that entrepreneurs fail? 

Shyam: Well, there is no one single reason why entrepreneurs fail. An entrepreneur can fail due to nervous reason. You could fail because you have allowed your fear of failure to defeat you.  You could fail becaus4 you are unwilling to delegate (distribute) work. As the saying goes, "You can do anything, but not everything!" You could fail because you have up too easily - maybe you were not persistent enough.  You could fail be cause you were focusing your enemy on small, insinificant tasks and ignoring the tasks that were most important. Other reason for failing are partnering with the wrong people, not being able to sell your product to the right customers at the right time at the right price...  and many more reasons!

Intreviewer: As an entrepreneur, how do you feel failure should be looked at? 

Shyam : I believe we should all look at failure as an asset, rather a than assembler something negative. The way I see it, if you have an idea, you should try to make it work, even if there is a chance that you will fail. That's because not trying is failure right there, anyway! And failure is not the worst thing that can happen. I think having regrets because of not trying, and wondering "what if" is far worse than trying and actually failing. 

Interviewer: How did you feel when you failed for the first time? 

Shyam: I was completely heartbroken! It was a very painful experience. But the good news is, you do recover from the failure. And with every subsequent failure, the recovery process gets a lot easier. That's becous3 you start to see each failure more as a lesson that will eventually help you succeed, rather than as an obstacle that you cannot overcome. You will start to realize that failure has many benefits. 

Interviewer: Can you tell us about some of the benefits of failing? 

Shyam: One of the benefits that I have experienced personally from failing is that the failure made me see things in a new light. It gave me answers that I didn't have before. Failure can make you a pot stronger. It also helps keep your ego in control. 

Interviewer: What advice would you give entrepreneurs who are about to start their own enterprises? 

Shyam: I would tell them to do their research and ensure that their product is something that is actually wanted by customers. I'd tell them that it's very important to be aggressive - push and marked your product as aggressively as possible. I would warn them that starting an enterprise is very expensive and that they should be prepared for a situation where they run out of money. I would tell them to create long term goals and put a plan in action to achieve that goal. I would tell them to build a product that is truly unique. By very careful and ensure that you are not copying another start-up. Lastly, I'd tell them it's very important that they find the right investors. 

Interviewer: That's some really helpful advice, Shyam! I'm sure this will help all entrepreneurs to be more prepared before they begin their journey! Thank you for all your insight! 

Risk Appetite & Resilience: Entrepreneurship and Risk

Entrepreneurs are inherently risk takers.  They are path-makers not path-takers. Unlike a normal, cautious person, an entrepreneur would not think twice about quitting his job (his sole income)  and taking a risk on himself and his idea. 

An entrepreneur is aware that while pursuing his dreams, assumption can be proven wrong and unforeseen events may arise. He known that after dealing with numerous problems, success is still not guaranteed. Entrepreneurship is synonymous with the ability to take risks. This ability, called risk-appetite, is an entrepreurial trait that is partly genetic and partly acquired. 

What is Risk Appetite? 

Risk appetite is defined as the extent to which a company is equipped to take risk, in order to achieve it's objective. Essentially, it refers to the balance, struck by the company, between possible profits and the hazards caused by charges in the environment (economic ecosystem, policies, etc.). Taking on more risk may lead to higher rewards but hav3 a high probability of on good opportunities to grow and reach their objectives. The levels of risk appetite can be broadly categorized as "low","medium" and "high." The company's entrepreneur(s) have to evaluate all potential alternatives and select the option most likely to succeed. Dinosaurs have varying levels of risk appetite for different objectives.  

The levels depend on:

• The type of industry
• Market pressures
• Company objectives

For example, a start-up with a revolutionary concept will have a very high risk appetite. The start-up can afford short term failures before it achieves longer term success.  This type of appetite will not remain constant and will be adjusted DTP account for the present circumstances of the company. 

Risk Appetite Statement 

Companies have to define and articulate their risk appetite in sync with decisions made about their objectives and opportunities. The point of having a risk appetite statement is to have a framework that clearly states the acceptance and management of risk in business. It sets risk taking limits within the company. The risk appetite statement should convey the following:

• The nature of risk the business faces. 
• Which risks the company is comfortable taking on and which risks are unacceptable. 
• The nature of risks of risks the business faces. 
• Which risks the company is comfortable taking on and which risks are unacceptable. 
• How much risk to accept in all risk and reward. 
• Measures of risk and methods of examining and regulating risk exposures. 

Entrepreneurship and Resilience 

Entrepreneurs are characterized by a set of qualities known as resilience. These qualities play  an especially large rile in the early stages of developing an enterprise. Risk resilience is an extremely valuable characteristic as it is believed to protect enterpreneus against the threat of challenges and changes in the business environment. 

What is Entrepreneurial Resilience? 

Resilience is used to describe individuals who have the ability to overcome setbacks related to their life and career aspirations. A resilient person is someone who is capable of easily and quickly recovering from setbacks. For the entrepreneur, resilience is a critical trait. 

• By developing a professional network of coaches and mentors
• By accepting that change is a part of life 
• By viewing obstacles as something that can be overcome 

Characteristics of a Resilient Entrepreneur 

The characteristics required to make an make an entrepreneur resilient enough to go the whole way on their business enterprise are:

• A strong internal sense of control
• Skill to learn from setbacks
• Ability to diversify and expand 
• Cash-flow conscious habitw
• Strong social connections 
• Ability to look at the bigger picture 
• Survivor attitude 
• Attention to detail 

Entrepreurship Support Eco-System : Who is an Entrepreneur?

An entrepreneur is a person who:

• Does not work for an employee 
• Runs a small enterprise 
• Assumes all the risks and rewards of the enterprise, idea, good or service 

Types of Entrepreneurs 

There are four main types of entrepreneurs:

1. The Traditional Entrepreneur: This type of entrepreneur usually has some kind of skills around for numerous years like restaurants, shops and carpenters. Typically, they gain plenty of experience in a particular industry before they begin their own business in a similar field. 
2. The Growth Potential Entrepreneur: The desire of this type of entrepreneur is to start an enterprise that will grow, win many customers and make lots of money. Their ultimate aim is to eventually sell their enterprise for a nice profit. Such entrepreneurs usually have a science or Tecnical background. 
3. The Project-Oriented Entrepreneur: This type of entrepreneur generally has a background in the Arts or psychology. Their of enterprises tend to be focus on something that they are very passionate about. 
4. The Lifestyle Entrepreneur: This type of entrepreneur has usually worked as a teacher or a secretary. They are more interested in selling something that people will enjoy, rather than making lots of money. 

Characteristics of an Entrepreneur 

Successful entrepreneurs have the following characteristics:

• They are highly motivated 
• They are creative and persuasive 
• They are mentally prepared to handle each and every task
• They have excellent business skills - they know how to evaluate their cash flow, sales and revenue 
• They are willing to take great risks 
• They are very proactive - this means they are willing to do the work themselves, rather than wait for someone else to do it 
• They have a vision - they are able to see the big picture 
• They are flexible and open - minded 
• They are good at making decisions

Entrepreneur Success Stories 

Dhirubhai Bhai Ambani 

Dhirubhai Ambani began his entrepreneurial career by selling "bhajias" to pilgrims in Mount Girnar on weekends. At 16, he moved to Yemen where he worked as a gas -station attendant, and as a clerk in an oil company. He returned to India with Rs. 50,000 and started a textile trading company. Reliance went on to become the India company to raise money in global markets and the first Indian company to feature in Forbes 500 list. 

Dr.  Karsanbhai Patel 

Karsanbhai Patel made detergent powder in the backyard of his house. He sold his product door-to-door and offered a money back guarantee with every pack that was sold. He charged Rs. 3 per kg when the cheapest detergent at that time was Rs.  13 per kg. Dr.  Patel eventually started Nirma which become a whole new segment in the India domestic detergent market. 

The Entrepreneurial Process 

Let's take a look at the stages of the entrepreneurial process.

Stage 1: Idea Generation. The entrepreneurial process begins with an idea that has been through of by the entrepreneur. The idea is a problem that has the potential to be solved. 

Stage 2: Germination or Recognition. In this stage a possible solution to the identified problem is through of. 

Stage 3: Preparation or Rationalization. The problem is studied further and research is done to find out how others have tried to solve the same problem. 

Stage 4: Incubation or Fantasizing. This stage involves creative thinking for the purpose of coming up with more ideas. Less thought is given to the problem areas. 

Stage 5: Feasibility Study: The next step is the creation of a feasibility study to determine if the idea will make a profit and if it should be seen through. 

Stage 6: lllumination or Realization. This is when all uncertain areas suddenly become clear. 

Stage 7: Verification or Validation. In this final stage, the idea is verified to see if it works and if it is useful. 

Take a look at the diagram below to get a better idea of this process. 

Introduction to the Entrepreneurship Ecosystem 

The entrepreneurship support ecosystem signifies the collective and complete nature of entrepreneurship. New companies emerge and flourish not only because of the courageous, visionary entrepreneurs who launch them, but they thrive as they are set in an environment or 'ecosystem' made of private and public participants. These players nurture and sustain the new ventures, facilitating the entrepreneuts'efforts. An entrepreneurship ecosystem comprises of the the following six domains:

1. Favourable Culture: This includes elements such as tolerance of risk and errors, valuable networking and positive social standing of the entrepreneur. 
2. Facilitating Policies & Leadership: This includes regulatory framework incentives and existence of public research institutes. 
3. Financing Options: Angel financing, venture capitalists and micro loans would be good examples of this. 
4. Human Capital: This refers to trained and untrained labour, entrepreneurs 
5. and entrepreneurship training programmes, etc. 
6. Conducive Markets for Products & Services: This refers to an existence or scope of existence of a market for the product/service.
7. Institutional & Infrastructural Support: This includes legal and financing advisers, telecommunications, digital and transportation infrastructure, and entrepreurship networking programmers.

There domains indicate whether there is a strong entrepreurship support ecosystem and what actions should the government put in place to further encourage this ecosystem. 

Every entrepreneurship support ecosystem is unique and all the element of the ecosystem are interdependent. Although every region's entrepreneurship ecosystem can be broadly described by the above features, each ecosystem is the result of the hundred elements interacting in highly complex and particular ways. 

Entrepreneurship ecosystem eventually become (largely)  self-sustaining. When the six domains are resilient enough, they are mutually beneficial. At this point, government involvement can and should be significantly minimized. Public leaders do not need to invest lot to sustain the ecosystem. It is imperative that the entrepreurship ecosystem incentives are formulated to be self-liquidating, hence focussing on sustain ability of the environment. 

Make in India Campaign 

Every entrepreneur has certain needs. Some of their important needs are:

• To easily get loans 
• To easily investors 
• To get tax exemption s 
• To easily access resources and good infrastructure
• To enjoy a procedure that is free of hassles and is quick 
• To be able to easily partner with other firms 

The Make in India campaign, launched by Prime Minister Modify aims to satisfy all these needs of young,aepiring entrepreneurs. It's objective is to:

• Make investment easy 
• Support new ideas 
• Enhance skill development 
• Safeguard the ideas of entrepreneurs 
• Create state-of-the-art facilities for manufacturing goods

Key Schemes to Promote Entrepreneurs 

The government offers many schemes to support entrepreneurs. These schemes are run by various Ministries/Departments of Government of India to support First Generation Entrepreneurs. Take a look at a few key schemes to promote entrepreneurship:

Sleep.  Name of the scheme

1. Pradhan Mantri MUDRA Yojana - Micro Units Development and Refinance Agency (MUDRA), 
2. STAND UP INDIA
3. Prime Minister Employment Generation Programme (PMEGP) 
4. International Cooperation 
5. Performance and Credit Rating 
6. Marketing Assistance Scheme
7. Reimbursement of Registration Fee Bar Coding 
8. Enable Participation of MSMEs in State/District level Trade Fair and Provide Funding Support 
9. Capital Subsidy Support on Credit for Technology up gradation 
10. Credit Guarantee Fund for Micro and Small Enterprise (CGFMSE) 
11. Reimbursement of Certification Fees for Acquiring ISO Standards 
12. Agricultural Marketing 
13. Small Agricultural Marketing 
14. Mega Food Park 
15. Avocado Mahila Sashktikaran Yojana

1. Pradhan Mantri MUDRA Yojana, - Micro Units Development and Refinance Agency (MUDRA), 

Description

Under the aegis support of Pradhan Mantra MUDRA Yojana, MUDRA has already created it's initial products/schemes. The interventions have been named 'Shisha','Kishore'and ' Taren' to signify the stage of growth/development and funding needs of the beneficiary micro unit/entrepreneur and also provide a reference point for the next phase of graduation/growth to look forward to:

a.  Shisha: Covering loans up to Rs.                 50,000/-

b.  Kishor: Covering loans above                      Rs. 50,000/- and up to Rs. 5 lakh 

c.  Tarun: Covering loans above Rs. 5              lakh to Rs.  10 lakh 

Who can apply?

Any India citizen who has a business plan for a non-farm sector income generating activity such as manufacturing, processing, trading pr service sector and whose credit need is less than Rs. 10 lakh can approach either a Bank, MFI, or NBFC for availing of MUDRA loans under Red-handed Mantri Mudra Yojana (PMKVY). 

2. Stand Up India

Description 

The objective of the Standup India scheme is to facilities bank loans between Rs. 10 lakh and Rs.  1 corresponding to at least one Schedule Caste (SC)  or Scheduled Tribe (ST)  borrower and at least one woman borrower per bank branch for setting up a Greenfield enterprise. This enterprise may be inanufacturing ,services or the trading sector. In case of non-Individual enterprises at least 51% of the shareholding and controlling stake should be held be either an SC/ST or Women Entrepreneur. 

Who can apply?

ST, SC & Women 

3. Prime Minister Employment Generation Programme (PMEGP) Description

The Scheme is implemented by Khadi and Village Industries Commission (KVIC), as the nodal agency at the National level. At the State level,  the Scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs)  and District Industries Centres (DICs)  and banks.  The Government subsidy under the Scheme is routed by KVIC through identified bank's for eventual distribution to the beneficiaties/entrepreneurs in their bank accounts. 

Nature of assistance 

The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh and under business/service sector is Rs. 10 lakh. Levels of funding under PMEGP 

The balance amount of the total project cost will be provided by Banks as terms loan as well as working capital. 

Who can apply? 

Any individual, above 18 years of age.  At least VIII standard pass for projects coating above Rs. 10 lakh in the manufacturing sector and above Rs. 5 lakh in the business/service sector. Only new projects are considered for sanction under PMEGP. Self Help Groups (including those beloginig to BPL provided that they have not availed benefits under any other Scheme),  Institutions registered under Societies Registration Act, 1860; Production Co-operation Societies, and Charitable Trusts are also eligible. Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are NOT eligible. 

4. International Cooperation Description 

The Scheme would cover the following activities:

• Deputation of MSME business delegations to other countries forever exploring new areas of technology infusion/upgaradation, facilitating joint ventures, improving market of MSMEs products, foreign collaborations, etc. 
• Participation by Indian MSMEs in international exhibitions, trade fairs and buyer-seller meets in foreign countries as well as in India, in which there is international participation. 
• Holding international conferences and seminars on topics and themes of interest to the MSME. 

Nature of assistance 

IC Scheme provides financial assistance towards the airfare and space rent of entrepreneurs. Assistance is provided on the basis of size and the type of the enterprise. 

Who can apply? 

• State/Central Government Organisations; 
• Industry/Entreprise Associations; and 
• Registered Societies/Trusts and Organisations associated with the promotion and development of MSMEs 

5. Performance and Credit Rating for Micro Small Enterprises 

Description 

The objective of the Scheme is to create awareness amongst micro & small enterprises about the strengths and weaknesses of their operations and also their credit worthiness. 

Nature of assistance 

Who can apply? 

 

Any enterprise registered in India as a microwave or small enterprise is eligible to apply. 

6. Marketing Assistance Scheme 

Description 

The assistance is provided for the following activities:

• Organizing exhibitions abroad and participation in international exhibitions/trade fairs 
• Co-sponsoring of exhibitions organized by other organisations/industry associations/agencies 
• Organizing buyer-seller meets, intensive campaigns and marketing promotion events 

Nature of assistance 

Financial assistance of up to 95% of the airfare and space rent of entrepreneurs. Assistance in provided on the basis of size and the type of the enterprise. Financial assistance for co-sponsoring would be limited to 40% of the net expenditure, subject to maximum amount of Rs. 5 lakh. 

Who can apply? 

MSMEs, Industry Associations and other organizations related to MSME sector. 

7. Reimbursement of Registration Fee for Bar Coding 

Description 

The financial assistance is provided towards 75% reimbursement of only one-time registration fee and 75% of annual recurring fee for first three years paid by MSEs to GS1 India for using bar coding. 

Nature of assistance 

Funding support for reimbursement of 75% of one time and recurring bar code registration fees. 

Who can apply? 

All MSMEs with EM registration. 

8. Enabling Participation of MSMEs in State/District Level Trade Fairs and Provide Funding Support 

Description 

Provide marketing platform to manufacturing MEMEs by enabling their participation in state/district level exhibitions being organized by state/district authorities/associations.

Nature of assistance 

1. Free registration for participating in trade fairs 

Note: The selection of participants would be done by the MSME-DIs post the submission of applications. 

2. Reimbursement of 50% of to and fro actual fare by shortest distance/direct train (limited to AC llama tier class)  from the nearest railway station/bus fare to the place of exhibition and 50% space rental charges for MSMEs (General category entrepreneurs). 

3. For Woman/SC/ST entrepreneurs & entrepreneurs from North Eastern Region Govt. of India will reimburse 80% of items above in Point (2).

Note: The total reimbursement will be max. Rs. 30,000/- per unit for the SC/ST/Women/Physically Handicapped entrepreneurs, while for the other units the max. limit will be Rs. 20,000/- per person per MSME unit. 

Note: The participation is required to submit follow-up proofs post attending the event to claim reimbursement. The proofs can be submitted after logging in online under the section "My Application " or directly vibrating a DI office. 

Who can apply? 

All MSMEs with EM registration. 

9. Capital Subsidy Support on Credit for Technology Information 

Description 

MSMEs can get a capital subsidy (~15%) on credit availed for technology upgradation. 

Nature of assistance 

Financial assistance for availing credit and loan. 

Who can apply? 

1. Banks and financial institutions can apply to DC-MSME for availing support. 

2. MSMEs need to directly contact the respective banks for getting credit and capital subsidy. 

How to apply? 

If you are a financial institution, click on the "Apply Now" button or else you can also directly contact the Office of DC-MSME.  You can view the contact details of Office of DC-MSME.  If you are an MSME,  directly contact the respective banks/financial institutions as listed in the scheme guidelines. 

10. Provision of collateral Free Credit for MSMEs 

Description 

Banks and financial institutions are provided funding assistance under this scheme so that they can in turn lend collateral free credit to MSMEs. 

Nature of assistance 

Funding support to banks and financial institutions for lending collateral-free credit to MSMEs. 

Who can apply? 

Banks and financial institutions can apply to office of DC-MSME/MSME-DIs for availing support. MSMEs need to directly contact the respective banks for getting credit. 

11. Reimbursement of certification fees for acquiring ISO standards 

ISO 9000/ISO 14001 Certification Reimbursement. 

Description 

The Gol assistance will be provided for one-time reimbursement of expenditure to such MSME manufacturing units which acquire ISO 18000/ISO 22000/ISO 27000 certification. 

Nature of assistance 

Reimbursement of experience incurred on acquiring ISO standards. 

Who can apply? 

MSMEs with EM registration. 

12. Agricultural Marketing 

Description 

A capital investment subsidy for contruction/renovation of rural godowns. Creation of scientific storage capacity and prevention of distress sale. 

Nature of assistance 

Subsidy @ 25% to farmers,  15% of project cost to companies. 

Who can apply? 

NGOs, SHGs, companies, co-operatives. 

13. Small Agricultural Marketing 

Description 

Business development description provides venture capital assistance in the form of equity and arranges training and visits of agri-preneurs. 

Farmers' Agricultural Business Consortium 

Business development description provides venture capital assistance in the form of equity,  and arranges training and visits of agri-preneurs. 

Nature of assistance 

Financial assistance with a ceiling of Rs. 5 lakh.

Who can apply? 

Individuals, farmers, produces groups, partnership/propriety firms, SGHs, agri-preneurs, etc. 

14. Mega Food park 

Description

Mechanism to link agricultural production and market to maximize value addition, enhance farmer's income, create rural employment. 

Nature of assistance 

One-time capital grant of 50% of project cost with a limit of  Rs.50 crore. 

Who can apply? 

Farmers, farmer groups, SHGs. 

15. Adivasi Mahila Sashaktikaran Yojana 

Description 

Confessional scheme for the economic development of ST women. 

Nature of assistance 

Term loan at confessional rate up to 90% of cost of scheme. 

Who can apply? 

Scheduled Tribes Women.