ENTREPRENEURSHIP

       An entrepreneur is an individual who has the capacity and willingness to run a business by knowing the risks to make profits. The process of setting up a business is known as entrepreneurship. It needs a business model, capital coupled with vision, enterprise, and industry. It is an integral aspect of any community, society, and nation to succeed in an ever-changing competitive global marketplace. An entrepreneur must spot opportunities, manage risks, and face challenges. He/she needs to take accountability and responsibility for success or failure.

WHO IS AN ENTREPRENEUR?

  • Is visionary
  • Is an investor(capital or fund)
  • Is a risk-taker
  • Is an Innovator
  • Is future-oriented
  • Is an enterprise creator.

QUALITIES OF AN ENTREPRENEUR

  • CREATIVE THINKING: An entrepreneur must have creative thinking, motivation, conviction, and passion. He/she must be able to analyze the problems and bring proper solutions.
  • LEADERSHIP ABILITY: An entrepreneur should have leadership abilities. So that he splits the works into groups and can finish the work without any conflicts.
  • BUSINESS MANAGEMENT: He/she should possess business management skills. He should protect the organization’s secrets from competitors.
  • COMMUNICATION ABILITY: He/she should have the ability to build connections and networking. Good communication skills always bring a benefit to the entrepreneur. He/she should maintain good relations with customers, partners, and employees.
  • OPPORTUNITY GRABBER: An entrepreneur should be an opportunity grabber.
  • TECHNICAL KNOWLEDGE: An entrepreneur should possess sufficient technical knowledge.

ENTREPRENEURSHIP, INNOVATION, AND IPR

        Entrepreneurship, Innovation, and IP Rights (Intellectual Property Rights) can create sustained impact in the ecosystem. Entrepreneurs should bring innovative ideas to their ventures. Innovative offerings increase the efficiency and productivity of the workforce. It also helps to improve the brand values and increases the profit rate. Entrepreneurs need to be aware of IP rights and policies to benefit from innovative ideas. It helps to protect the business ventures from unjustified infringement claims from other entities.

IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMY

       Entrepreneurship is essential for several reasons to include promoting social changes, increasing innovation, increasing employment rates. Entrepreneurs are frequently considered as nation’s assets since they help in the national income of the country. Great entrepreneurs can change the lifestyle on a local and national basis. The standard of living has been increased with the development of entrepreneurship. Entrepreneurs help in increasing the country’s export trade and thereby play an important role in the economic development of a country. New and improved products and services from entrepreneurs boost the national income of the country. In addition to this, it increases the employment rate in that country. Through the invention of new products, entrepreneurs help in improved quality of life and economic freedom. For example, smartphones are used worldwide by more than 5 billion people. Technological entrepreneurship can have a long-lasting impact on the world until the growth of smartphones. Entrepreneurship is innovation and hence helps in providing funds for research and development with several institutions. It also helps in balancing regional development by setting up industries in less developed areas. The growth of business in these areas leads to several developments include transport, health, education, entertainment, etc. Thus the role of entrepreneurs in today’s economy is indispensable.

DO U WANT TO START A BUSINESS?

Business is nothing but an activity that involves purchase and sale of goods and services with a strong motive to earn a ‘profit’. It mainly involves satisfying societal needs while fulfilling one’s own needs. One can immediately venture into business provided he / she has an idea of what stream of business they are planning to start with. There are various types of industries to start your business: Primary, Secondary and Tertiary industry industries.

Primary industries deal with production of natural resources and their extraction; Secondary industries deal with the manufacture of raw materials and construction of infrastructure; Tertiary industries deal with provision of support system to primary and secondary industries in form of banking, insurance, communication and other services.

Before starting the business, ensure the availability of these services that supplement your business:

  • Transportation and Communication: There are chances that the production of goods might not take place near the market place. Transportation is used for moving raw materials to the production area and movement of final goods from warehouses to market. Communication is needed for exchange of information.
  • Banking and Finance: The bloodline of the business is funds. Thus without financial support, business cannot last long.
  • Warehouses: The goods produced are generally stored because they are not sold soon after production. Warehousing prevent the loss or damage to the product.
  • Insurance: A business always involves risks such damage to goods, fire accidents and theft. To protect their goods, businessmen generally insure their goods against various risks. A premium amount is paid to keep them insured and in the event of loss, compensation is provided by the insurance company.
  • Advertising: This is an important tool for every trader to induce customers to buy their products. It is impossible for every trader to personally contact each an every person to endorse his product. Advertising helps to gain attention of the large mass of people and provide each of them a clarity and usefulness of a product.

FOLLOW THESE STEPS IF YOU WISH TO BEGIN WITH YOUR JOURNEY AS AN ENTREPRENEUR:

  • Selection of business line: This is the first and foremost step for starting your business. It deals with selecting that category that suits your business goals.
  • Scale of operation: This decision deals with deciding on whether the entrepreneur will on a large scale or small scale of operation depending upon the type of business and risks associated.
  • Form of ownership: The business organisation can be sole proprietorship (single owner) or partnership (many owners) or even a joint stock company. This depends on type of business, size of business, the capital requirements and legal requirements.
  • Location to set up: The next step is to plan where the business will be located. A mistake here can lead to increased cost of production and transportation. One should also ensure availability of labour force nearby if the company needs human capital.
  • Financing the preposition: Arranging capital is needed as per the requirements of the business. Capital is needed for procuring fixed assets like land, building and machinery. Capital is also need for fulfilling day to day requirements.
  • Infrastructure facilities: Facilities like machinery, equipment, land and building are important to support a business.
  • Plant layout: Once the physical facilities are decided, there is need for a plan to be sketched about the physical arrangement of these facilities.
  • Labour force: Every business is in need of both skilled and unskilled labour to covert raw materials to desired output.
  • Tax planning: The entrepreneur must also be aware of the various tax laws that would have an impact his decisions.
  • Launching the enterprise: This step is the about the actual launch of the enterprise after completing various legal formalities and starting the production.

Relevant links: https://yourstory.com/smbstory/profitable-minimum-low-investment-small-business-ideas-smb-online-selling/amp https://www.businessnewsdaily.com/4686-how-to-start-a-business.html

MSME POLICY IN INDIA

Micro, Small and Medium Enterprises (MSME) contribute nearly 8% of the country’s GDP, 45% of the manufacturing output and 40% of the exports. They provide the largest share of employment after agriculture. They are the nurseries for entrepreneurship and innovation. They are widely dispersed across the country and produce a diverse range of products and services to meet the needs of the local markets, the global market and the national and international value chains.

The Ministry has a number of programmers to help and assist entrepreneurs and small businesses. If anyone is planning to set up business, one may contact National Institute for Entrepreneurship and Small Business Development (NIESBUD), National Institute for Micro, Small and Medium Enterprises (NI- MSME), Indian Institute of Entrepreneurship (IIE) or the Development Commissioner (DCMSME) for details about their programs. If one is an existing entrepreneur and would like to improve one’s competitiveness, one may contact DC, MSME who can be of assistance in various ways. If one is willing to set up a village industry or want to know more about Khadi or Coir Products, one may contact KVIC or Coir Board.

Ministry of MSME encourages and honors innovation and enterprise. It work in close coordination with the State Governments, Industry Associations, Banks and other stakeholders through its numerous field offices and technical institutions to help the ‘engines of growth’ throughout the country.

Micro, Small and Medium Enterprises Development (MSME) Act was enacted in 2006. It provides the first-ever legal framework for recognition of the concept of “enterprises” (comprising both manufacturing and services) and integrating the three tiers of these enterprises, viz., and micro, small and medium.

It also provided for a statutory consultative mechanism at the national level with wide representation of all sections of stakeholders, particularly the three classes of enterprises. Under the Micro, Small and Medium Enterprises Development Act 2006, the definition and coverage of the MSE sector consisting of micro and small enterprises were broadened significantly. Further, the Act also defined the medium enterprises for the first time. Medium enterprises are those which have investment in plant and machinery exceeding Rs 5 crore.

 

 Salient Features of the MSME Development Act, 2006 :

·      The MSME Act provides the first legal framework for recognition of the concept of “enterprise” and integrating the three tiers of these enterprises, viz., micro, small and medium.

·       Under the Act, enterprises have been categorized broadly into those engaged in :

->   Manufacturing

->    Rendering of Services

Both categories have been further classified into micro, small and medium enterprise based on their investment in plant and machinery or in equipments as under:

·       Manufacturing Enterprises: Micro Enterprises investment upto Rs 25 lakhs, small enterprises investment above Rs 25 lakhs and upto Rs 5 crore.  Medium Enterprises investment above Rs 5 crore and upto Rs 10 crore.

 

·     Service Enterprises: Micro Enterprises investment upto Rs 10 lakhs, small enterprises investment above Rs 10 lakhs and upto Rs 2 crore. Medium Enterprises investment above Rs 2 crore and upto Rs 5 crore.

 

·      The Act provides for a statutory consultative mechanism at the national level with wide representation of all sections of stakeholders, particularly the three classes of enterprises, and with a wide range of advisory functions and an Advisory Committee to assist the Board and the Center/State Government.

The other features include:

· Establishment of specific funds for the promotion, development and enhancement of competitiveness of these enterprises.

· Notification of schemes/programs for the purpose.

· Progressive credit policies and practices.

· Preference in Government procurement to products and services of the micro and small enterprises.

· More effective mechanism doe mitigating the problems of delayed payments to micro and small enterprises.

· Simplification of the process of closure of business by all the three categories of enterprises.

7 Emerging Technology Industries for Startups

The Most Important Factors for Startup Success - Salesforce Canada ...

There are two types of entrepreneur – the ones that have an original idea and the ones who just want to start their own business. Either way, an entrepreneur tries to solve a problem and improve human lives as a whole. There are so many startups in the market and they cease to exist due to the fierce competition they face. The entrepreneurs can either differentiate their businesses with a very strong USP or enter a virgin territory. The former will make the business capable of fighting against existing competitors while the latter won’t have many competitors to begin with.

Learn about personal USP here.

For the people who want to start a business but don’t have any unique ideas, here’s a list of industries that are the future of technology and are yet to be fully exploited:

  1. Electronic Sports

It is hard to believe that people would watch other people play video games just like they watch their favourite footballers and cricketers on the field and in a stadium but Esports is becoming a reality now. The evidence of the same can be seen on Youtube where there is a whole section of trending gaming videos.

  1. Financial Technology

Fintech is simply the use of technology in financial services and it is becoming very popular as the days go by. Nearly everyone heard of Bitcoin when it came into the news and Fintech is behind the development of cryptocurrency. With the use of computers and smartphones in our daily activities, money related matters are also being digitalised every day.

  1. Blockchain

Blockchain is related to Bitcoin and it is very complex technology. It is used for handling of Bitcoins. It helps in keeping records of transactions that are made using the cryptocurrency and ensures that the information is unchangeable through advanced programming. The word ‘block’ means digital information which is stored on ‘chain’, that is a public database but the technology is yet very confidential at the same time

  1. Big Data Analytics

Big data is simply the large amount of data stored in different formats, at high speed and with high accuracy. Almost all the gadgets and instruments that we use transmit data about us that helps the manufacturers and developers in giving us better services but such useful data needs to obtained from the big data and this is where the big data analytics comes in play.

Read more about big data here.

  1. Robotics

Making use of robots for day to day activities is the future of technology. Computer science and engineering have given birth to robotics and Artificial Intelligence is its brain. Robots can perform almost all works that are done by humans and even the things that cannot be done by humans. Activities that are hazardous to human life can be easily performed by robots.

Learn about the different types of human intelligence here.

  1. Electric Cars

With rising environmental concerns, the world is moving towards sustainable solutions and offerings to problems and needs. The chances of running out of non-renewable fuels like coal and petroleum have driven the automobile companies to develop electric cars and even though we don’t see as many electric cars on the road, a Bloomberg study has found that by 2040, electric cars will outsell gasoline and diesel-fueled cars.

  1. Online Education

With the onset of the pandemic, the need for online education has been felt worldwide as almost all students shift to online learning. As life becomes more hectic and new technologies and subjects come to reality, almost everyone would want to learn about what is new and trending. Even elderly, retired people try to stay updated nowadays so online education has a huge market base and great potential.

Learn about skills that are in high demand here.

How to become a successful Entrepreneur?

Whether you’re starting as a pro or an amateur, who doesn’t want to be a successful entrepreneur? Owning your own business gives you a sense of freedom. You become more creative, release your ideas, visions, and make decisions yourself.

So to be strong at this game, here are some tips you may need:

  • Challenge Yourself: Every day is a new beginning. Your biggest motivation should be to keep challenging yourself. No one else is going to push, it is you who has to take the charge. Learn every day. Read books, blogs, and articles on entrepreneurs. Doing this will not only increase your knowledge but also expand your creativity.

 

  • Take Risks: Successful entrepreneurs always take risks. Without this one can never figure out what is good for their business and what is not. It is dangerous but sometimes it presents opportunities that often outweigh the potential danger.

 

  • Know your goals: Rome was not built in a day! Who hasn’t heard this famous quote? Just like that, a startup also cannot be successful in a few days. One needs to be patient in their way up. You should have a proper goal plan. Work on all your plans, make mistakes, and explore.

 

  • Be passionate: Nothing in this world fuels you better than your passion does. When you’re passionate about what you do, long hours won’t even matter. But if you are not, you won’t have any motivation when you are sleepy or tired. Ever noticed entrepreneurs who get that gleam in their eyes when they talk about what they do?

 

  • Support System: Let’s be honest, achieving things on your own, will only double the trouble in your journey. One needs a supportive network to lean on. Hire someone you have great character and whom you respect too.

 

  • Put everything on Calendar: Yes, you heard that right! Put everything on the calendar. From every important meeting to working hours, meeting friends, workouts, games, etc. The reason being this will always keep you on your toes and you will have no time to waste. ‘ Time is money’ – Every famous entrepreneur abides by this rule. Follow it and no one can stop you from being successful.

 

What’s your favourite success tip for entrepreneurs? Share it in the comment section.