Q1. What is meant by Small to Medium-sized Enterprises? Explain briefly.

The term Small to Medium-sized Enterprises (SMEs) :- defined as a company employing

between 1-249 employees. Incorporates two primary classifications
Small business,
Medium business
Small business
Independently owned and managed, being closely controlled by owners/managers who
also contribute most, with total number of employees less than 50.

Medium-sized enterprise

Is defined as business that is larger than small business and smaller than large business
with total employees greater 50 and less than 250.

Q2. What are the Technology Adoption Programs available in market?Explain briefly.

The Technology Adoption Programs (TAP: supports collaboration amongst public sector
research institutes, private sector technology providers, Institutes of Higher Learning, Trade
Associations and Chambers (TACs) and private sector system integrators, to identify and
translate new technologies into Ready-to-Go (RTG) solutions.

These RTG solutions aim to address productivity challenges and give SMEs a competitive
advantage.

The TAP will support sectors identified for the Industry Transformation Maps (ITMs) to
formulate and execute technology adoption roadmaps.

TACs are well-placed to identify the technology needs of their members and sectors as they are
familiar with the respective productivity challenges and needs.

How and When Technological development in industry performed:

1. Technological Processes based always on (Material, Equipment, Human skills and

operating circumstances.
2. So, If any of these parameters changed, we have to re-calibrate this technology
3. This re-calibration can't be considered as a technology change because industrial
technology is not more than an Engineering guide
4. To calibrate any industrial technology, we should make a documentation
5. Finally, documentation of the new change should be done
6. Any application of industrial technology for 1st time or after a long time stop, should be
tested.

Product innovation: results in new or improved products. An example of this might be a new
type of razor blade that is sharper and lasts longer than previous blades.
• Process innovation occurs when the manufacturing processes are improved to make the
production of existing products cheaper, or when new processes are developed specifically for
making a new or improved product.
• Service innovation: occurs when new ways of delivering services are developed e.g. the use
of automatic telling machines (ATMs) in banks to replace human tellers, drive through take-out
lines.
Classification of Innovation
• Incremental innovation occurs when small improvements are made to a product, or the
processes used in manufacturing a product.

• Radical innovation occurs when major improvements are made to a product.

• Transformation innovation occurs when the innovation is of such a fundamental nature that it
enables the development of many other innovations.

• Induced Innovations: Innovations respond to need and economic conditions. Investors, and
researchers put effort into solving burning problems, and that leads to innovations.

Appropriability of Technology
Appropriability is the ability of the innovating firm to protect its technology from competitors
and to obtain economic benefits from that technology.

3. What are the leading ways encourage growth in the SME sector? Explain briefly.

Creating a digital business: SME success depends upon creating early differentiators. It only
requires very strong business understanding to be able to analyze the existing business models.

Hiring the right talent: Senior management of SME’s need to change the lens with which they
view enterprise talent. Digital talent is not only about technical skills, but goes much beyond
permeating business processes, to deal with the new requirements brought about by changing
customer expectations.

Information Management to increase productivity: With fully automated business processes,

the SME creates a paperless office, where the right information to execute a business process
seamlessly is available to the right user when they need it.

Understanding the customer / customer outreach: What used to be a last channel of resort for
customers is now turning out to be the natural and most immediate touch point for progressive
brands. 
Lower capex with cloud: Rather than owning assets, SME’s can leverage cloud to be operators
of those assets owned by an external provider.

4. What is meant by technology transfer for business development? What are the four

mechanisms used in technology transfer?

Technology transfer is the process by which existing knowledge, facilities or capabilities are
utilized and marketed to fulfill public and private needs. It is the process by which basic
science research and fundamental discoveries are developed into practical and commercially
relevant applications and products.

The 4 technology transfer mechanism

 Cooperative Research and Development Agreements (CRADA) – Probably the most

commonly used technology transfer mechanism, CRADAs are instruments that may be
used in all aspects of a product and/or system life-cycle where research, development,
test and evaluation (RDT&E) activities occur.
 Licensing Agreement – A licensing agreement is a contract between the owner or
lawful user of intellectual property (IP) and another party (licensee) that permits the
licensee to use the IP in accordance with the terms of the contract.
 Memorandum of Understanding (MOU) – An MOU provides the framework for
cooperation and coordination with other agencies.
 Partnership Intermediary Agreement (PIA) – A PIA is an agreement between DHS
and a state or local government agency or a nonprofit entity.

5. What are the steps involved in Technology Transfer. Explain briefly.

 Science and Technology: The first relate to the science and technology component, which is
responsible for ensuring that a particular idea or invention is assessed for its technological
feasibility and translated into a marketable product for commercialization.
 Marketing: The marketing component covers the business angle, assessing the market
conditions and developing a business plan. It is also concerned with the business planning in
terms of developing a comprehensive marketing strategy - to ensure a clear market capture for
the new product.
 Financing: This is the third component that identifies and procures funds for seed capital,
expansion, market penetration etc. in order to make sure that the return-on-investments is good.

6. What does intellectual Property mean? Explain all the three points with example.
 Intellectual property (IP) refers to creations of the mind, such as inventions; literary and
artistic works; designs; and symbols, names and images used in commerce.

 A trademark is a word, phrase, symbol, and/or design that identifies and distinguishes the
source of the goods of one party from those of others. A service mark is a word, phrase, symbol,
and/or design that identifies and distinguishes the source of a service rather than goods. Some
examples include: brand names, slogans, and logos. 
 A patent is a limited duration property right relating to an invention, granted by the
United States Patent and Trademark Office in exchange for public disclosure of the
invention.  
 A copyright protects original works of authorship including literary, dramatic, musical,
and artistic works, such as poetry, novels, movies, songs, computer software, and
architecture. 

7. Explain briefly the Elements used to Evaluating New Ventures.

 Market Opportunity - most early stage venture investors look for companies addressing
large markets.
 Industry Trends & Regulatory Matters knowing the industry is crucial; an early stage
technology company will usually need to find established partners that are early adopters to
validate a product and endorse it, enabling sales to more risk-averse customers.

 Proprietary approach - is the intellectual property stand alone or platform IP e.g. can one or
more products addressing major markets be created from the IP that would form the basis of new
company and generate the revenue streams required to sustain the company?

 Development risk - what is the stage of development for the technology? Can the risks be
clearly identified and mitigated?

 Technology impact - what is the nature and outgrowth of the technology?Is this an upgrade
to an existing product on the market; is it a quantum leap in performance?

Proposed products - do the proposed products have a clear market need?

 Financials - is the model articulated for how products will be sold,

 Team - does the team have the requisite skills to move all aspects of the company forward?

SWOT is a series of steps one has to consider in evaluating a business opportunity and arriving
at a decision on starting a business or not.

 Venture management expertise - does the stage and attractiveness of the opportunity merit
the interest of the management

8. What are the Guidelines of business feasibility study?

Description of the Business

 Outline the general business model (ie. how the business will make money).
 List the type and quality of product(s)

Market Feasibility

Describe the size and scope of the industry, market and/or market segment(s).
 Identify the life-cycle of the industry, market and/or market segment(s) (emerging,
mature)
It include

 Market potential
 Enterprise competitiveness.
 Sales projection
  Access to market outlets
Technical Feasibility
Determine
 facility needs.
 Suitability of production technology.
 Availability and suitability of site
 Raw materials
 Other inputs.

Financial Feasibility
 Estimate the total capital requirements.
 Estimate equity and credit needs.
Organizational/Managerial Feasibility
determine
 Business structure
 Business founders

9. Explain brief manner about Market Feasibility

Market Feasibility
Enterprise description.
Describe the size and scope of the industry, market and/or market segment(s).
 Estimate the future direction of the industry, market and/or market segment(s).
 Describe the nature of the industry, market and/or market segment(s) (stable or going
through rapid change and restructuring).
 Identify the life-cycle of the industry, market and/or market segment(s) (emerging,
mature)
10. What is meant by Partnership structure? Explain types of partner and explain briefly with

help of sketch, advantage and disadvantage.

=>The association of two or more persons to carry as co-owners of a business where the
relationship is based on agreement is called partnership.
The form of a business requires the existence of two or more persons entering into a
contractual relationship.
types of partner

1. A general partner : Assumes unlimited liability and is usually active in managing the

business.
 2. A limited or special partner : Assumes limited liability, risking only his /her investment in

the business

3. A secret partner: Takes an active role in managing a partnership but whose identities are

unknown to the public.

4. A silent partner : As opposed to a secret partner, a silent partner, his identities and
involvement, is known to the general public, but is inactive in managing the partnership
business.

5. A dormant or sleeping partner: Is nether known to the general public nor active in
management.
6. Nominal partners: Are not actually involved in a partnership but lend their names to it for

public relations purposes but invest no money in the firm and play no role in its management.

Advantages of partnership

  Personal supervision
  Motivation of important employees
 The prospect of becoming a
  Reduced risk
  Tax advantage over a corporation
Disadvantages of partnership

  Unlimited liability
  Risk of implied authority
  Lack of harmony:
  Lack of continuity/instability

11. Explain briefly the Channels of distribution with figure

The marketing (or distribution) channels refer to the activities, parties and channel
structure required to transfer a product from its point of production to its point of
consumption by the end customer.
channels can broadly be divided into two: direct and indirect channel. Direct channel of
distribution refers to the manufacturer sells directly to consumers without using any
intermediaries whereas indirect channel of distribution refers to the producer sells its
products through the use of intermediaries.

12. What do we mean by Market Segmentation? In which basis they are segmenting the

market
 The process of dividing a market in to segments is called market segmentation. Market
segmentation is the process of dividing the total market into several homogeneous
groups, where any group can be selected as a market target that can be reached with a
distinct marketing mix.
Base of segmentation
1. Geographic segmentation: Geographic segmentation is dividing of an overall
market into homogeneous groups on the basis of population location
2. Demographic segmentation: Demographic segmentation is dividing an overall
market into homogeneous groups based upon population characteristics such as age,
sex and income level. This method uses variables like Age, Gender, Race, Ethnicity,
Income, Education, Occupation, Family size, Family life cycle, Religion, Social class
3. Psycho graphic segmentation: Psycho graphic segmentation utilizes behavioral
profiles developed from analyses of the activities, opinions, interest and lifestyles of
consumers. This method uses variables: Personality, Attributes, Motives and
Lifestyles
4. 4. Behavioral segmentation: Behavioral segmentation focuses on product usage
rates

13. What are the factors considering while buying or starting?

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14. What is meant by Strategic Planning and explain Strategic Planning process.

Planning in general is the process of determining specified objectives and how to

accomplish them. It is the process by which managers set objectives, assess the future and
develop courses of action to accomplish these objectives.
Strategic Planning process.
=> Firm's Philosophy:
• Are you a risk taker, or would you prefer to build your business slowly from a solid base?
• How will you relate to customers, suppliers and competitors?
• What type of community involvement do you plan for your business, e.g., participation in
recycling and volunteer activities?

=>The firm’s mission

 15. What does mean by promotional mix? Explain with brief manner.

The marketing mix of an organization is made up of four elements namely PRODUCT, PRICE,
PROMOTION and PLACE.
Product mix
 Product planning and development: Product planning is the entire process of deciding what
type of product to produce
 Branding: A brand is a name, term, symbol, sign, design or combination of these, used to
identify the products
 Brand name: the part of a brand, which consists of word, letters and/or numbers, which can
be vocalized. Eg. OMO
 Brand mark: the part of a brand that can be recognized but is not utterable. It can appear in
the form of symbol, design, distinctive coloring or lettering.
 Trademark: a brand or part of a brand that has been given legal protection so that the owner
has exclusive rights to its use. After companies identify their trademark, they entail a term ―™‖
or ―®‖
THE PRICE MIX
Price is the amount of money consumers have to pay to obtain the product.
a. Cost plus pricing/ Mark Up pricing/
This method places at such a level that the total cost of the product is recovered.
b. Skimming pricing: a company favors setting high prices to ―skim‖ the market.
c. Penetration pricing: Setting lower prices for winning large number of consumers Pricing
below the market
d. Premium pricing-Pricing with the market – also known as premium pricing.
The Place Mix
Place (Physical distribution): Includes company activities that make the product available to
target consumers.
16. What is meant by price? What are the four common methods of pricing?

Pricing is the amount of money consumers have to pay to obtain the product.

a. Cost plus pricing/ Mark Up pricing/

This method places at such a level that the total cost of the product is recovered.
b. Skimming pricing: a company favors setting high prices to ―skim‖ the market.
c. Penetration pricing: Setting lower prices for winning large number of consumers Pricing
below the market
d. Premium pricing-Pricing with the market – also known as premium pricing.
.
17. Explain briefly Business Risk Management. Explain what are the factors increases the

complexity of environment

Risk management is the systematic process of planning for, identifying, analyzing,

responding to, and monitoring business risk.
a systematic way of protecting business resources and income against loss.
factors increases the complexity of environment

- Inflation
- Growth of internal operation
- More complex technology
- Increasing government regulation

18. What is mean by risk? How they are classified. Explain with example

 Risk is the channel of loss

 Risk is the possibility of loss
 Risk is uncertainly
 Risk is the dispersion of actual from expected result
 Risk is the probability of any outcome different from the one expected
 Market risk
Market risk is the uncertainty associated with an investment decision. An entrepreneur
who invests in a new business hopes for a gain but realizes that the eventual outcome may be
a loss.
 Pure risk
Pure risk is used to describe a situation where only loss or no loss can occur- there is no
potential gain. A pure risk exists when there is a chance of loss but no chance of gain/profit.
Example: Owner of an automobile faces the risk of a collusion loss. If collusion occurs, he
will suffer a financial loss. If there is no collusion, the owner will not gain.

speculative risk
A Speculative risk exists when there is a chance of gain as well as a chance of loss. i.e.
there is a possibility of loss and gain.
Example :Gambling, Smuggling, keeping dollar …… is a good example of a speculative risk

Classifying Risk by Type of Asset

Risk may be grouped according to the type of asset-Physical or human-needing
protection. Specifically, there are .
1. Property risks
Property-oriented risks involve tangible and highly visible assets. Many property- oriented
risks are insurable; they include:
 Fire
 Natural disasters
 Burglary
 Business swindles (or fraudulent transactions) and
 Shoplifting
2. Personnel risks
Personnel-oriented losses occur through the actions of employees. The three primary types of
Personnel-oriented risks are:
 Employee dishonesty
 Competition from former employees
 Loss of key executives
3. Customer risks
Customers are the source of profit for small business, but they are also the source of an ever-
increasing amount of business risk. Much of these risks are:
On- premises injuries and
 On-premises injuries: Customers may initiate legal claims as a result of on-premises
injuries. For example: When a customer breaks an arm by slipping on icy steps while
entering or leaving a store; Inadequate security, which may result in robbery, assault, or
other violent crimes; Customers who are victims often look to the business to recover
their losses.
 Product liability: A product liability suit may be filed when a customer becomes ill or
sustains physical or property damage from using a product made or sold by a firm.
 19. What are the basic functions of the risk management in carrying out of the

responsibilities? Explain briefly.

1. To recognize exposure to loss ( Risk identification)

- This is a fundamental duty that must proceed all other functions.
- Is the 1st step of risk managers’ function.

2. To estimate the frequency and size of loss, (Risk qualification) i.e., to estimate the
probability of loss from various sources. It is also called as risk measurement.

3. To decide the best and most economical method of handling the risk if loss. (risk response
development) i.e. Selection of the proper tool for handling risk

4. Implementing the decision (risk response control) . Risk can be handled through the following
tools.
1. Avoidance
One way to handle a particular pure risk is to avoid the property, person or activity with
which the risk is associated.
2. Retention/acceptance
 It is the most common method of handling risk by the individual or the firm itself.
 Bearing all the risk by that person/organization.

20. Define the word insurance? Explain the four types of insurance

Insurance is defined as protection against risks.

Insurance enables those who suffer a loss or accident to be compensated for the effects of their
misfortune.
 Business Liability Insurance
Business liability insurance protects both your business and personal life from potential
financial ruin.
 Worker’s Compensation Insurance
Under laws in most states, employers with more than a certain number of employees are
liable for most job-related accidents
 Excess Liability Insurance
If you feel you need additional protection above and beyond your current liability limits,
you can purchase excess liability insurance, sometimes known as an umbrella policy.
 Employment Practices Liability Insurance
 This is a relatively new form of liability insurance covering the business as well as
management.

21. Explain the five Requirements to obtain insurance?

1. There must be a sufficiently large number of homogenous exposure units to make the
losses reasonably predictable.
2. The loss produced by the risk must be definite and measurable.
3. The loss must be fortuitous or accidental.
4. The loss must not be catastrophic:
5. The loss must be large loss.