WHAT IS ENTRPRENEURSHIP? Especially in places that are heavily 2. Lacks ownership & medium term 3.

cks ownership & medium term 3. Legal Feasibility :- This assessment

It is a ability and readiness to develop influenced by corruption and deceit it is very oriented. 3. Gets corporate rewards. 4. Do investigates whether any aspect of the
organised and run a business enterprise, important that one’s professional values hide mistakes & do project with less proposed project conflicts with legal
along with its uncertainties in order to make reflect one’s own business’ measures in delegation. 5. Needs help of top requirements like zoning laws, data
a profit. accepting or rejecting such undertakings. management & mentor. 6. Uses resources protection acts or social media laws. Let’s
The risks of entrepreneurship ? Social values :- of management. 7. Popular in MNCs. say an organization wants to construct a
Successful entrepreneurs tend to be willing As a successful entrepreneur you must also Types of ownership for small new office building in a specific location. A
to take chances This often involves taking adhere to social values and give back to or businesses :- feasibility study might reveal the
calculated risks are explained below....... shape society. Businesspersons who look Sole proprietorship, Partnership, Joint organization’s ideal location isn’t zoned for
Market risk:- beyond business life possess great social stock company, Co-operative societies, that type of business.
Entrepreneurs need to take these risks into values. As their business develops it joint hindu family business. 4. Operational Feasibility :- This
account. creates value for society as a whole. Sole proprietorship:- It is that type of assessment involves undertaking a study to
Opening a business may come with There are generally two ways of business organization which is owned analyze and determine whether—and how
additional risks. creating a high social value through your managed & controlled by a single owner. well—the organization’s needs can be met
Business owners will use market analysis business. The first way is to create products Partnership:- It is a from of business where by completing the project. Operational
to better understand the business. or services that benefit society and provide two or more people share ownership as feasibility studies also examine how
Landscape and it helps to predict the new solutions to problems that otherwise cannot well as the company & the income or losses a project plan satisfies the requirements
venture succeeding. be solved. The second way is to Invest the business. Joint stock company:- It is a identified in the requirements analysis
Financial risk:- more money into corporate social type of business organization that is owned phase of system development.
Entrepreneurs may use their own money or responsibility (CSR) by supporting a social by its investors. In a joint stock company the Exit strategies for entrepreneurs:-
external funding to launch their businesses. cause that one believes in. company stock can be bought & sold by Initial public offering (IPO):- Initial public
Doing so means assuming some financial Attitudes :- Attitudes constitue an impotent the share holders. share holders should offering (IPO) refers to the process where
risk, so successful entrepreneurs will psyachological attitude of individuals which having possession of at least 1 stock of the private companies sell their shares to the
assess that risk and create a financial shape their behaviour . It may be defined as company in order to be counted as a partial public to raise equity capital from the public
plan accordingly. the way a person, a commodity a situation owner. investors.
Competitive risk:- or an idea. Feasibility study:- A feasibility study is a The process of IPO transforms a privately-
Often, entrepreneurs aren't creating a new Essential Attitudes of an preliminary exploration of a proposed held company into a public company.
market---they're entering an existing entrepreneurship :- 1. Have passion for project or undertaking to determine its This process also creates an opportunity for
market that already has competitors. As a the business. 2. Set on example of merits and viability. A feasibility study aims smart Investors to earn a handsome return
result, entrepreneurs are taking on trustworthiness . 3. Be flexible , except with to provide an independent assessment that on their investments.
competitive risk. care values. 4. Don’t let fear of failure hold examines all aspects of a proposed project, Important point to be remembered:- Once
Technology risk one back. 5. Make timely decision. 6. The including technical, economic, financial, the IPO is done, the shares of the firm are
Entrepreneurs take on technological risks major company asset one self. 7. Keep legal, and environmental considerations. listed and can be traded freely in the open
when launching a business. one’s ago under control. 8. Believe in one Type of Feasibility study:- A feasibility market. The stock exchange imposes a
Technological risks can include privacy self. 9. Maintain a strong work ethic. 10. analysis evaluates the project’s potential for minimum free float on the shares both in
and security concerns, such as the Rebound quickly from setbacks. success; therefore, perceived objectivity is absolute terms and as a ratio of the
potential for a data leak or IT breach, as Skill :-1. Creativity: Entrepreneurs need to an essential factor in the credibility of the total share capital.
well as technological risks related to money think creatively, generating unique ideas study for potential investors and lending
if the company needs to invest heavily in and solutions to stand out in the market. 2. institutions. There are five types of Liquidation :- It is the process of closing a
technology to remain Adaptability: Entrepreneurs must quickly feasibility study—separate areas that a business and distributing its assets to
competitive in the market. adjust to changing circumstances, feasibility study examines, described claimants (a person making a claim).
Entrepreneurial values and attitudes embracing new strategies and below. Liquidation in finance and economics is the
and skills? opportunities. 3. Resilience: Successful 1.Technical Feasibility :- This assessment process of bringing a business to an end
Personal values:- That an entrepreneur entrepreneurs bounce back from failures, focuses on the technical resources and distributing its assets to claimants.
needs are attributes such as honesty, learn from mistakes, and maintain a available to the organization. It helps
passion, determination, and confidence. No positive mindset. 4. Leadership: organizations determine whether the Key features:-
one likes to do business with people that Entrepreneurs lead and inspire their teams, technical resources meet capacity and
are arrogant, selfish, dismissive and setting clear goals and fostering a whether the technical team is capable of The term liquidation in finance and
egotistic. productive work environment. 5. Risk- converting the ideas into working systems. economics is the process of bringing a
Any business venture is a reflection of the taking: Entrepreneurs embrace calculated Technical feasibility also involves the business to an end and distributing its
entrepreneur's personal values, attitudes, risks, making informed decisions to seize evaluation of the hardware, software, and assets to claimants.
and beliefs. opportunities and drive growth. other technical requirements of the
Difference between entrepreneur and proposed system. A bankrupt business is no longer in
Professional Values :- intrapreneur :- 2. Economic Feasibility:- This existence once the liquidation process is
Entrepreneur:- 1. He takes business assessment typically involves a cost/ complete and it has been deregistered.
Ethics in the business world are the domain
venture. Without paper qualification. 2. benefits analysis of the project, helping
of professional values. While personal
Direct ownership & long time oriented. 3. organizations determine the viability, cost, Liquidation usually occurs during the
values reflect on the entrepreneur's
Rewarded for business performance. 4. and benefits associated with a project bankruptcy process.
personality traits professional values
Doesn't hide mistakes & do before financial resources are allocated. It
correspond his or her ability to conduct
business activity. 5. Makes own decisions also serves as an independent project
themselves in the business environment.
without mentor. 6. Uses own resources. 7. assessment and enhances project
What matter is healthy competition, self-
World famous concept. credibility—helping decision-makers
determined work environments and also
Intrapreneur :-1. He acts like a determine the positive economic benefits to
doing the right thing by adhering to law and
Entrepreneur. He needs paper qualification. the organization that the proposed project
order.
will provide.
Legal recruitment and compliances include environmental clearances, and retain skilled employees due to limited 2. Advantage in the International Trade
needed for establishing a new unit :- planning permissions, business licenses, budgets and competition with larger Fairs:- Financial aid to state/central
Deciding on a business name :- Once you and regulatory approvals. companies. Hiring the right talent is crucial government agencies, businesses,
decide which business structure fulfils your What is mobilizing resources for for driving innovation and achieving registered associations, and organisations
purpose, you are then required to choose a startup? business goals. 6. Regulatory affiliated with MSME for the commissioning
business name that reflects your venture's Mobilization of resources is the mean to compliance: Compliance with industry of MSME business delegations to other
ideology and make sure it is not already assemble, organize and procure the regulations and legal requirements can be countries under the International
claimed by some other entity. Creation of a required resources for the successful complex and time-consuming for startups. Cooperation Scheme. 3. Reimbursement
founder's agreement :- A Founder's establishment of an enterprise. Resources Failure to comply can result in penalties or of ISO certification:- If MSME registered
agreement is a document that has mobilization process is an essential part of even the closure of the business. 7. Cash enterprises submit an application together
important details about the founding a "New Business Development". All kind of flow management: Managing cash flow is with their registration certificate to the
members of a venture/business. enterprise need resources, but the type, critical for startups, as they often have concerned authority, they will be excluded
The document thus acts as an agreement intensity and nature of resources tends to irregular revenue streams and high from all ISO certificate fees. ISO
that legally establishes the rights, vary. Primarily, business resources can expenses. Maintaining a positive cash flow certification is necessary to promote the
ownership, responsibilities, and other be categorized as: while investing in growth and managing standards of MSMEs at the time of bidding
terms executed between the founders 1. Financial Resources:- Financial operational costs can be a significant in order to amplify their efficiency. 4.
and the company. Acquire all the legal Resources are the most important of all challenge. 8. Building a strong brand Priority while Applying for Licenses and
licenses and registrations :- resources. Sufficient funds are prerequisite and customer base: Establishing brand Approvals:- Those businesses who
Once the Founder's agreement is drafted, for acquiring other resources. Every recognition and building a customer base present a Certificate of MSME
the authorization to do business is what's entrepreneur, after assessing the from scratch can be difficult for startups. Registration when applying for licences,
required next. availability of funds with himself, procures Effective marketing and sales strategies permits, or registrations from the
The authorizations come in the form of the remaining funds from outside. There are essential to gain traction and attract appropriate authorities in any field for their
legal licenses and registrations. are various sources available for customers. 9. Adapting to market business are given priority and the
General registrations:- GST registration procurement of funds such as:- long-term changes: Startups need to be agile and procedure is streamlined for them.
(Good and service), Permanent Account funds & short-term funds. adaptable to navigate market shifts and What’s a start-up?
Number (PAN), Tax Account Number, Bank 2. Human Resources:- Human Resource changing customer preferences. Being The term “start-up” has entered our
account, Shop & establishments. is the next vital resource which facilitates able to pivot their business model, personal dictionary within a very short time,
Registration of business in the effective utilization other resources. It products, or services in response to market just as quickly as the new technologies and
DIC(Specialized):-*IEC code (To do import includes skilled as well as unskilled dynamics is crucial for survival and growth. digitalisation have changed our vision and
and export business) ,IEC stands for manpower. Procurement of right number 10. Access to funding: Startups typically perception of things in all areas of life,
'IMPORT EXPORT CODE. *FSSAI License and right type of people who will work for require external funding to support their including the way of creating a company, of
(To start a food business), FSSAI stands for the enterprise is very essential. They must growth plans. Securing investment from which start-ups are an example, by
'Food Safety and Standards Authority of be chosen very carefully, as the success of venture capitalists, angel investors, or bringing together technology and
India. *Kosher Registration (To deal with any enterprise largely depends upon the other sources can be challenging, entrepreneurship.
kosher goods), "Kosher" is a term used to quality of its human resource. especially for early-stage startups without a What are the features of a start up?
describe food that complies with the strict 3. Physical Resources:- After acquiring proven track record. To qualify as a start-up, a company must
dietary standards of traditional law. * the necessary funds and arranging human Overcoming these challenges requires a have a number of characteristics,
Halal Registration (To deal resources the entrepreneur will procure combination of strategic planning, effective namely scalability, technology, a global
with Halal goods). *Other licenses for other physical resources like Land & Building, execution, flexibility, perseverance, and a approach, youth and low initial costs.
types of businesses. plant & machinery, furniture & fixture, raw strong team. Successful startups often find These characteristics can be expanded or
Function of entrepreneurship :- material, etc. Every enterprise should ways to innovate, differentiate themselves, reduced, depending on the source, but the
Function of entrepreneurship in relation to design and develop a suitable procedure and leverage their agility to overcome ones listed above are the most common.
economic development – 1. Contribution to for procurement of physical resources these hurdles and thrive in the long run. Common features of startups are as
GDP. 2. Capital formation. 3. Generation of depending upon the size of the firm, the what is equity financing? follows: 1. Innovation:- Startups differ
employment. 4. Generation of business type of material required, Equity finance is a method of raising fresh from other businesses. They do not copy
opportunities for other. 5. Improvement in supply sources, etc. capital by selling shares of the company to products or services that are already widely
economic efficiency. 6. Increasing the What are the challenges faced by public, institutional investors, or financial available on the market. 2. Technology:-
spectrum & scop of economic activities. 7. startups? institutions. The people who buy shares are They use AI and other technological
Impact on local communities . Startups face a range of challenges that referred to as shareholders of the company solutions to build a competitive advantage.
What is tax compliance ? can impact their success and growth. Here because they have received ownership 3. Scalability:- They build scalable and
According to James and All ey, tax are some common challenges faced by interest in the company. repeatable business models. 4. Growth :-
compliance is “the willingness of startups: 1. Limited resources. 2. Market Benefits of MSME registration for start- Startups are businesses expected to grow
individuals and other taxable entities competition. 3. Uncertain market demand. up:- MSMEs (Micro, Small, and Medium incredibly quickly. 5. Age :- They are
to act in accordance with the spirit 4. Scaling operations. 5. Hiring and Enterprises) are the small businesses that generally young and after 5 years in
as well as the letter of tax law and retaining talent. 6. Regulatory compliance. drive our economy forward. MSMEs are the business, most of them stop operating as
administration without the 7. Cash flow management. 8. Building a backbone of the economy in developing startups. 6. Risk :- Uncertainty can be seen
application of enforcement activity” strong brand and customer base. 9. countries like India, and they contribute to everywhere in the startup process, and it is
(James and Alley 1999: 32 ). Adapting to market changes. 10. the country’s socio-economic an integral part of what allows them to be
A tax compliant society doesn’t Access to funding. 1. Limited resources: development. After agriculture, the Micro, successful.
engage in tax evasion or avoidance. Startups often have limited financial Small, and Medium Enterprise (MSME)
Still some experts feel that tax resources, manpower, and infrastructure sector employs the second-largest number
avoidance is also part of tax compared to established companies. This of people in India. It accounts for 30% of
compliance. can make it difficult to fund operations, hire the nation’s GDP. As a result, the MSME
what is the district industrial centre ? and retain talent, and invest in necessary sector is crucial to our economic
DIC stands for District Industries Centre. tools and technology. 2. Market development. Small and medium-sized
The District Industries Center (DIC) is a competition: Entering a market with businesses have long been encouraged by
central government program that seeks to established competitors can be challenging the government. Furthermore, the
support local cottage and small-town for startups. Established companies may government makes every effort to
industries. The District Industries Centers have stronger brand recognition, larger give MSMEs benefits. This is why it is
were created at the district level and offer customer bases, and more resources to critical and beneficial to register an MSME
all the assistance and services required to invest in marketing and sales efforts. 3. 1. Collateral Free Bank Loans:-
help business owners build MSMEs (Micro, Uncertain market demand: Startups often According to the Indian government’s
Small and Medium enterprises). Since its face uncertainty regarding the demand for initiatives, all small and microbusinesses
launch in 1978, the DICs have been their products or services. They need to now have access to collateral-free lending.
created in various Indian districts at various validate their business idea and find a This programme helps micro and small
times. market fit, which can require significant enterprises apply for business loans and
what is a statutory clearance? time, effort, and iteration. 4. Scaling get capital. This programme provides
Statutory clearance refers to the official operations: Scaling a startup can be benefits to both existing and new
permission or authorization required by law challenging, as it involves increasing enterprises. The Small Industries
from a government agency or authority to production capacity, expanding customer Development Bank of India (SIDBI)
engage in certain activities or meet specific base, and maintaining quality while established the Credit Guarantee Fund
legal requirements. It ensures compliance meeting growing demand. Managing rapid Trust for Micro and Small Enterprises,
with regulations and standards and growth can strain resources and which awards collateral-free loans.
typically involves submitting applications, infrastructure. 5. Hiring and retaining
providing documentation, and undergoing talent: Startups often struggle to attract
inspections or assessments. Examples