- 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:
- 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.
- 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.
- 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.
- 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:
- Favourable Culture: This includes elements such as tolerance of risk and errors, valuable networking and positive social standing of the entrepreneur.
- Facilitating Policies & Leadership: This includes regulatory framework incentives and existence of public research institutes.
- Financing Options: Angel financing, venture capitalists and micro loans would be good examples of this.
- Human Capital: This refers to trained and untrained labour, entrepreneurs
- and entrepreneurship training programmes, etc.
- Conducive Markets for Products & Services: This refers to an existence or scope of existence of a market for the product/service.
- 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
- Pradhan Mantri MUDRA Yojana - Micro Units Development and Refinance Agency (MUDRA),
- STAND UP INDIA
- Prime Minister Employment Generation Programme (PMEGP)
- International Cooperation
- Performance and Credit Rating
- Marketing Assistance Scheme
- Reimbursement of Registration Fee Bar Coding
- Enable Participation of MSMEs in State/District level Trade Fair and Provide Funding Support
- Capital Subsidy Support on Credit for Technology up gradation
- Credit Guarantee Fund for Micro and Small Enterprise (CGFMSE)
- Reimbursement of Certification Fees for Acquiring ISO Standards
- Agricultural Marketing
- Small Agricultural Marketing
- Mega Food Park
- 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.
No comments:
Post a Comment