Entp 09ppt

Entrepreneurship

Session-930/03/07

Sam Walton's 10 Rules for Success

Commit to your business. Believe in it more than anything

else. If you love your work, you’ll be out

there every day trying to do the best you can, and pretty soon everybody around will catch the passion from you - like a fever.


Share your profits with all your associates, and treat them as partners. In turn, they will treat you as a partner, and together you will all perform beyond your wildest expectations


Motivate your partners. Money and ownership aren’t

enough. Set high goals, encourage

competition and then keep score. Make bets with outrageous payoffs.


Communicate everything you possibly can to your partners.

The more they know, the more they’ll understand. The more they understand, the more they’ll care. Once they care, there’s no stopping them.


Information is power, and the gain you get from empowering your associates more than offsets the risk of informing your competitors.


Appreciate everything your associates do for the business. Nothing else can quite substitute for a few well-chosen, well-timed, sincere words of praise.

They’re absolutely free and worth a fortune.


Celebrate your success and find humor in your failures.

Don’t take yourself so seriously. Loosen up and everyone around you will loosen up. Have fun and always show enthusiasm. When all else fails put on a costume and sing a silly song.


Listen to everyone in your company, and figure out ways to get them talking.

The folks on the front line - the ones who actually talk to customers - are the only ones who really know what’s going on out there.

You’d better find out what they know.


Exceed your customer’s expectations. If you do they’ll come back over and over.

Give them what they want - and a little more. Let them know you appreciate them. Make good on all your mistakes, and don't make excuses - apologize.


Stand behind everything you do. ‘Satisfaction guaranteed’ will make all the difference.


Control your expenses better than your competition. This is where you can always find the competitive advantage.

You can make a lot of mistakes and still recover if you run an efficient operation. Or you can be brilliant and still go out of business if you’re too inefficient.


Swim upstream. Go the other way. Ignore the conventional wisdom. If everybody is doing it one way,

there’s a good chance you can find your niche by going exactly in the opposite direction.

Small Scale Business:

The Small Scale Sector is the natural habitat of entrepreneurs.

Most entrepreneurs start small and then nurture their units into large industries.

Economic Indicators:

The small-scale industries sector plays a vital role in the growth of the country.

It contributes almost 40% of the gross industrial value added in the Indian economy.

Economic Indicators:

The number of small-scale units has increased from an estimated 0.87 million units in the year 1980-81 to over 3 million in the year 2000.

Role of Small Business In Indian Economy

Employment: It has been estimated that 100,000 rupees of investment in fixed assets in the small-scale sector generates employment for four persons.


Export promotion: 45%-50% of the Indian Exports is contributed by SSI Sector.

Direct exports from the SSI Sector account for nearly 35% of total exports .

It is estimated that small-scale industrial units contribute around 15% to exports indirectly.


The exports from SSI sector have been clocking excellent growth rates in this decade.

It has been mostly fuelled by the performance of garments, leather and gems and jewellery units from this sector.


SSI sector dominates in exports, are:

sports goods, readymade garments, woollen garments and knitwear, plastic products, processed food and leather

products.


Share in Industrial production: Development of Entrepreneurship: Optimization of Capital: Balanced regional development: Mobilisation of local resources: Consumer surplus: Feeder to large scale industries:

Business In India Small scale business: Having

investment in fixed assets in plants and machinery: not exceeding 65 lakhs.

Ancillary Industries: Industrial undertakings having investment in plant and machinery not exceeding 75lakhs.

Engaged in manufacture of spare parts,

components

Business In India Ancillary Industries :tooling Tiny Units: Fixed investments in plants

and machinery not exceeding 5 lakhs. Egs: Laundry,xeroxing,repairs and

maintainence,hatching,poultry etc. Small scale service

Establishments:Enterprise engaged in personal or household services in rural areas and towns.

Business In India

Household Industries:Like artisans,

skilled craftsmen and technician with less than 300 sq ft space, less than KW Power, less than 5 workers and no pollution is caused.

Small Scale Industries Nature and Characteristics:

Personal Character: Owner himself is generally the manager.

Owner has first hand information on the business.

He is the active participator in decision making


Closely Held: A small scale unit is a one man show.

It is held by one person or small group of persons


Local area of operation: Labour Intensive: Generally

labour intensive. Capital investment is limited. Use of simple technology.

Small Scale Industries Nature and Characteristics: Indigenous Resources:These

units use local resources. Decentralized operations. Simple organization: There are

no layers of management. Division of labour is low. Resources are limited.


Limited scale of operation: Limited share of a given market.

Size of industry is also small. Limited scope for expansion:

Objectives of small business:

To generate immediate and large scale employment opportunities with relatively low investment.

To eradicate unemployment problem from the country.

To encourage dispersal of industries to all over the country .

Objectives of small business: To bring backward areas too in

the mainstream of national development.

To promote balanced regional development in the whole country.

To ensure more equitable distribution of national income.

To improve the level of living of people in the country.

Small scale business as a seedbed of Entrepreneurship: It creates more self-employment. Usually based on local resource. These industries can be located

anywhere. Quick return. Requires simple technology and low

managerial skills. These units help to maintain and

retain traditional skills and handicrafts.

Small scale business as a seedbed of Entrepreneurship:

Small units assist large and medium industries by acting as ancillaries


The SSI Sector provides an opportunity for them to hone their skills and talents,

to experiment, to innovate and transform their ideas into goods and services needed by the society.

Problems of Small Scale Industries:

Problem of raw material: Problem of Finance: Problem of Under utilization of

Capacity: Outdated Technology: Poor project planning: Inadequate infrastructure:

Large v/s Small Scale:

Small business fosters change through a cycle of birth and death.

The large business pattern of change takes place through expansion and contraction.

Risk or reward is personal in the case of small business and its calculation is circumscribed by the potential fortunes of a single line of business.


In large organizations, risk or reward decisions are made by employee managers without livelihood stake.

The judgement includes long range welfare of large perpetual organization.

Small business is in no position to influence its immediate economic environment but big business does.


Because of its general competitive inferiority, small business must make greater use of secondary resources

whereas business due to superior size has a first call on most of primary resources.


Small business serves markets which big business doesn't wish or cannot serve.

Internal Relationship between large and small business:

Competitive: Purchase sub-contracting: Complimentary: Maintenance and repair

services: Social benefits of inter-linkages:

Profile of SSI Sector in India

95% of Industrial Units in the Country

34.29% of National Exports 6.86% of Gross Domestic

Product

Profile of SSI Sector in India

Employment To 193 Lakh Persons

Production of Over 7500 Items in the Industrial Sector

298 Items Reserved for Exclusive Manufacture

358 Items for Exclusive Purchase from This Sector


70 percent of the total innovations in the world have come from the Small Scale Sector:

Siemens, Ford, Eastman Kodak, Lever

Brothers, Reliance, Nirma, Rasna were all started small and then nurtured into

big businesses.

Small Industries Development Organization (SIDO)

It is an apex body for assisting the Ministry in:

formulating, coordinating, implementing and monitoring policies and

programmes for the promotion and development of small scale industries in the country

National Small Industries Corporation (NSIC) Ltd. Was set up with a view to promoting,

aiding and fostering the growth of small scale industries in the country with focus on commercial aspects of these functions.

NSIC continues to implement its various programmes and projects throughout the country to assist the SSI units.

The Corporation has been assisting the sector through the following schemes and activities: Supply of both indigenous and

imported machines on easy hire-purchase terms

Composite term loan scheme Procurement, supply and

distribution, of indigenous and imported raw- materials

Marketing of small industries products

The Corporation has been assisting the sector through the following schemes and activities:

Export of small industries products and developing export-worthiness of small scale units

Enlisting competent units and facilitating their participation in Government Stores Purchase Programme

The Corporation has been assisting the sector through the following schemes and activities:

Sensitizing SSI units on technological up gradation through Software Technology Parks and Technology Transfer Centers

Mentoring & advisory services Technology business incubators Setting up small scale industries in

other developing countries on turnkey basis