asg on enterprenuership

8/7/2019 asg on enterprenuership

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http://www.startups.co.uk/government-launches-double-review-on-entrepreneur-support.html

What is Entrepreneurship?

The definition of entrepreneurship has been debated among scholars, educators, researchers, and policy

makers since the concept was first established in the early 1700¶s. The term ³entrepreneurship´ comes

from the French verb ³entreprendre´ and the German word ³unternehmen´, both means to ³undertake´.

Bygrave and Hofer in1891 defined the entrepreneurial process as µinvolving all the functions, activities,

and actions associated with perceiving of opportunities and creation of organizations to pursue them¶.

Joseph Schumpeter introduced the modern definition of µentrepreneurship¶ in 1934. According to

Schumpeter, ³the carrying out of new combinations we call µenterprise¶,´ and ³ the individuals whose

function it is to carry them out we call µentrepreneurs¶.´ Schumpeter tied entrepreneurship to the creation

of five basic ³new combinations´ namely: introduction of a new product, introduction of a new method of

production, opening of a new market, the conquest of a new source of supply and carrying out of a new

organization of industry. Peter Drucker proposed that µentrepreneurship¶ is a practice. What this means is

that entrepreneurship is not a state of being nor is it characterized by making planes that are not acted

upon. Entrepreneurship begins with action, creation of new organization. This organization may or may

not become self-sustaining and in fact, may never earn significant revenues. But, when individuals create

a new organization, they have entered the entrepreneurship paradigm.

Support for Starting Entrepreneurs :

1. TNUFA

This support is intended for inventors, entrepreneurs and start-up companies

during the initial phase toward the realization of their ideas. The fund will

contribute toward getting patents, the construction of a prototype to verify the

viability of the idea, preparation of a business plan and the mobilization of

initial capital.

The grant for this program is 85% of the approved costs up to a maximum of

210,000 NIS (Approx. $47,000).

2. Technological Incubators

The incubator provides a supportive framework for the entrepreneur in the

form of an independent company that enables him to translate a commercially

viable technological idea into a product that will attract investors. The R&D



grant provides 85% of the approved R&D expenditures with the remainder to

be raised by the entrepreneur.

There are currently, in Israel, 24 incubators spread around the country.

The following innovative approaches have been implemented recently:

a. An experimental program to privatize some of the incubators. In this

program a private licensee will assume the operating expenses of the incubator

and the entrepreneurs will enjoy an increased grant.

b. A program to establish incubators that will be involved solely in

biotechnology as a result of government policy for increased activity in

this area. The biotech incubators will respond to some of the unique

aspects of this field namely the long-term nature inherent in its R&D.

Technological incubators are support corporations that give fledgling

entrepreneurs an opportunity to develop their innovative technological

ideas and set up new businesses in order to commercialize them. The

incubator program is applied in all parts of the country, under the

guidance and with the support of the Office of the Chief Scientist of the

Ministry of Industry and Trade.

3. Seed Fund

Heznek Program - The Government seed fund

The slowdown of the world economy has caused a decrease in the level of

investments in start-up companies and consequently a lessening in the number

of start-ups formed.

In order to encourage investments and increase the number of new companies

formed the Ministry of Industry and Trade established a new and separate

vehicle to provide a positive signal to investors and create further inducements

for mobilizing investments for the establishment of start up companies.

The program is based on the government matching an investment in a start-up

company, proportional to the investment of an investing entity and on giving

an option to the investor to purchase the government shares in the start up

company at the initial price.



Who is a qualified investor?

· VC Fund or Corporation active in VC or tech company investing in

similar industries

· An investor who has the ability and manpower to guide the

management of the new company

· An investor who has sufficient available funds

What defines a Start-Up Company?

· R&D Company that was formed no more than 6 Months ago OR whose

total expenditures have not exceeded 800,000 NIS.

· A company which hasn't raised money from investors ± excluding

primary financing for feasibility study.

The Government¶s Investment

· The Government and the investor will put up matching funds.

· The Government's investment will be in return for shares of the

company.

· The Government investment will be up to 5 Million NIS per

company per two year period that will finance up to 50% of the

Approved Work Program.

· The expenditures supported will be those related to R&D.

The Investor¶s Option

The Investor will be given an option to purchase the government shares

anytime within the first 5 years at the initial price plus linkage and interest.

R&D Law With reference to transfer of know-how and manufacturing

rights, the company will be bound, as are all those enjoying government

support by the R&D LAW



G overnment of India Plans SME Helpline:

The government of India plans to launch a toll-free helpline for small and medium businesses,

which would offer assistance on issues like taxation, finance, laws, marketing and other relevant

topics. This was disclosed by Dinesh Rai, Secretary, Ministry of Micro, Small and MediumEnterprises (MSMEs), Government of India, at a conference on Information, Communication

and Technology (ICT) for Small and Medium Enterprises (SMEs), organised by the Internet and

Mobile Association of India (IAMAI) and IndiaMART.com on July 10.

The conference was attended by 500 well known entrepreneurs and professionals from various

industries. Distinguished personalities like Dinesh Agarwal, Founder and CEO of

IndiaMART.com, Dinesh Rai, Secretary, Ministry of Micro, Small and Medium Enterprises

(MSMEs), Government of India, Rajiv Sodhi, Director, Emerging Geographies, Microsoft India,

Gurmukh Singh, Head Business Marketing, Intel South Asia, Harish Bahl, Founder & Chief

Executive Officer, Smile Interactive Technologies Group, were among those present.

D ena Bank to support India·s women entrepreneur

Dena Bank will help Government of Indias initiative to encourage women entrepreneurs

for self-employment ventures in any kind of non-farm activity

Under the programme, Trade Related Entrepreneurship Assistance and Development (Tread)

Scheme, the bank will provide loans to women through non-government organisation (NGOs)

for self-employment ventures by them in any kind of non-farm activity.

The Tread scheme was launched by the Government of India to provide resources and financial

assistance to women entrepreneur not only in villages but also in urban areas.

The scheme provides for grants up to 30 per cent of the total project cost released to

financial institutions who become partners in implementation of the scheme.

Th e Future of Entrepreneurs h ip

Both the Central Government and various State Governments are taking increased interest in

promoting the growth of entrepreneurship. Individuals are being encouraged to form new

businesses and are being provided such government support as tax incentives, buildings, roads,

and a communication system to facilitate this creation process. The encouragement by the central

and state governments should continue in future as more lawmakers are realizing that new

enterprises create jobs and increase the economic output of the region. Every state government



should develop its own innovative industrial strategies for fostering entrepreneurial activity and

timely development of the technology of the area. The states should have their own state-

sponsored venture funds, where a percentage of the funds has to invested in the ventures in the

states.

Society¶s support of entrepreneurship should also continue. This support is critical in providing

both motivation and public support. A major factor in the development of this societal approval

is the media. The media should play a powerful and constructive role by reporting on the general

entrepreneurial spirit in the country highlighting specific success cases of this spirit in operation.

Finally, large companies should show an interest in their special form of entrepreneurship-

intrapreneurship-in the future. These companies will be increasingly interested in capitalizing on

their Research & Development in the hyper competitive business environment today.



A ssignment

Of

Project Management A nd Entrepreneurs h ip

On

G overnment support for Entrepreneur

Submitted T O: Submitted By:

Ms. Samiks h a Priyanka A rora



A ssignment

Of


On



Ms. Samiks h a Sandeep Kaur



A ssignment

Of


On



Ms. Samiks h a Sa h il Lak h anpal



A ssignment

Of


On



Ms. Samiks h a Ric h a Th ukral

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asg on enterprenuership