ENTREPRENEURSHIP

1 ENTREPRENEURSHIPMANAGEMENTVASANT DESAIF irst Edition : 2011 PASSION WORKS WONDERS ENTREPRENEURSHIP OPPORTUNITIES IDENTIFICATION ROLE MANAGEMENT MARKETING SOLUTIONMUMBAI NEW DELHI NAGPUR BENGALURU HYDERABAD CHENNAI PUNE LUCKNOW AHMEDABAD ERNAKULAM BHUBANESWAR INDORE KOLKATA GUWAHATI AUTHORNo part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by anymeans, electronic, mechanical, photocopying, recording and/or otherwise without the prior written permission of by:Mrs. Meena Pandey for Himalaya Publishing House Pvt. Ltd., Ramdoot , Dr. Bhalerao Marg, Girgaon, Mumbai - 400 : 022-2386 01 70/2386 38 63, Fax: 022-2387 71 78 Email: Website: Offices :New Delhi: Pooja Apartments , 4-B, Murari Lal Street, Ansari Road, Darya Ganj,New Delhi - 110 002.

2 Phone: 011-23270392, 23278631 Fax: 011-23256286 Nagpur:Kundanlal Chandak Industrial Estate, Ghat Road, Nagpur - 440 : 0712-2738731, 3296733 Telefax: 0712-2721215 Bengaluru:No. 16/1 (Old 12/1), 1st Floor, Next to Hotel Highlands, Madhava Nagar,Race Course Road, Bengaluru - 560 : 080-22281541, 22385461, Telefax: 080-22286611 Hyderabad:No. 3-4-184, Lingampally, Besides Raghavendra Swamy Matham, Kachiguda,Hyderabad - 500 027. Phone: 040-27560041, 27550139, Mobile: 09848130433 Chennai:No. 85/50, Bazullah Road, T. Nagar, Chennai - 600 : 044-28144004/28144005 Pune:First Floor, "Laksha" Apartment, No. 527, Mehunpura,Shaniwarpeth (Near Prabhat Theatre), Pune - 411 : 020-24496323/24496333 Lucknow:Jai Baba Bhavan, Church Road, Near Manas Complex andDr.

3 Awasthi Clinic, Aliganj, Lucknow - 226 : 0522-2339329, 4068914,Mobile: 9305302158, 9415349385, 9389593752 Ahmedabad:114, SHAIL , 1st Floor, Opp. Madhu Sudan House, ,Navrang Pura, Ahmedabad - 380 : 079-26560126, Mobile: 09327324149,09314679413 Ernakulam:39/104 A, Lakshmi Apartment, Karikkamuri Cross Rd.,Ernakulam, Cochin - 622011, : 0484-2378012, 2378016, Mob.: 09344199799 Bhubaneswar:5 Station Square, Bhubaneswar (Odisha) - 751 : 9861046007 Indore:Kesardeep Avenue Extension, 73, Narayan Bagh, Flat No. 302,IIIrd Floor, Near Humpty Dumpty School, Narayan Bagh, Indore 452 007( )Mobile: 09301386468 Kolkata:108/4, Beliaghata Main Road, Near ID Hospital, Opp.

4 SBI Bank,Kolkata - 700 010, Mobile : 09910440956 Guwahati:House No. 15, Behind Pragiyotish College, Near Sharma Printing Press, Bharalumukh, Guwahati - 781009. (Assam).Mobile: 09883055590, 09883055536 Typeset by:Prerana Enterprises, at:A to Z, Edition : 2011in R ec og nition of e nt re pr ene ur ia l sp ir itBill G at esThis ENTREPRENEURSHIP Management study is dedicated to the infotech icon, Bill Gates for hisentrepreneurial spirit in founding and nurturing Microsoft, the biggest software company in the had revenues of $ billion for the fiscal year ending June 2005, and employs more than 61,000people in 102 countries and regions and opening up windows to revolutionise information technology,fostering ENTREPRENEURSHIP and philanthropic r efa c eEntrepreneurship is a dynamic process of creating incremental is an applied seience.

5 In the twenty-first century ENTREPRENEURSHIP hasreceived a big push with the information technology revolution sweeping allover the is a multi-disciplinary subject and has been rightlyintroduced in various universities and management schools in be successful, an entrepreneur needs expertise in various alliedfields like production, finance, marketing, organisation, human resources,administration, taxation, labour laws, etc., in addition to possessing distinctentrepreneurial qualities. In fact an entrepreneur is a leader motivator with apassion to excel in the activities he management forms the core of a business success depends on the core values, management techniques and management is basically concerned with the issues concerning development, growthand organization of enterprises.

6 The very purpose of an enterprise is to carry out business in a smoothand effective manner. It is the prime objective of an entrepreneur to ensure that his basic urge forenterprising abilities be satisfied and that the business earn reasonable returns on the purpose of the text is to enrich students, entrepreneurs with an understanding of theentrepreneurial process as well as ENTREPRENEURSHIP management practice. In the process to help them tobe better prepared for transforming dreams into realities. consequently. The book is organised to explorethe nature of ENTREPRENEURSHIP management and help to FEATURESThe book is organised to provide a systematic presentation in founding a new venture, nurtureit to grow and manage it with great success.

7 Chapters are organised to help students to learn aboutentrepreneurship ENTREPRENEURSHIP often involves changing and sustaining a new set of social values. Thechallenge of this process is perhaps most clearly discerned in the transitional economies of Central andEastern Europe, but in fact many emerging democracies around the world have equally daunting obstaclesto overcome. For this reason Allan Gibb s article on building a culture of ENTREPRENEURSHIP in Central andEastern Europe provides insights that are applicable to most developing big part of cultivating ENTREPRENEURSHIP involves establishing an environment where business of the TextThere are 30 chapters in the text.

8 This mumber was chosen to provide a sequence of topics that couldbe presented in a normal particular Chapters 22-30 explore a few of the modern entrepreneurial solutions which will enhancethe effeciency of the organisations and make it globally CREATIVE STUDYE ntrepreneurship and management is not only creative but also cohesive and interesting. It offersto entrepreneurs, intrapreneurs a rich fare of stimulating ideas, a new vision challenging insights, rightmanagement and entrepreneurial solutions. All people engaged in entrepreneurial activities will findthe study assisting in accelerating and steering the process of economic growth in the right book would not only be useful to the students of , and other relatedentrepreneurial courses, but also to administrators, planners, educationists, bankers, project officers,industrial consultants, financial institutions, industrialists and more importantly, to the new is the new entrepreneurs who have the onerous responsibility of shaping the destiny of the nation.

9 Theyare the catalytic agents of change, progress and the preparation of this book, I have drawn heavily from the published works in the sphere ofentrepreneurial development look forward to receiving suggestions from students, entrepreneurs, managers and readers forimproving the contents and presentation of this people students, business executives, entrepreneurs, professors, and publishing staff havemade this book debt to those who have helped me in one way or the other is heavy indeed. While I take thisopportunity to thank all of them they are too numerous to be mentioned in this brief preface I wouldlike to acknowledge my deep sense of gratitude to Dr.

10 Narendra Kumar for his ungrudging help at allstages, and to the many veteran professional entrepreneurs and consultant economists for their preciseguidance. Thanks are also due to Pandey, Shri Anuj Pandey, Shri Neeraj Pandey, Ms. PratibhaChowdhary, Phalguni Ravi and Desai for their suggestions for affecting a number of , no words can adequately express my debt of gratitude to my late father, Shri RanganathBalwant Mutalik Desai, and my late mother, Smt. Laxmidevi, for generating in me a perennial interest inhigher studies. I will be failing in my duty if I do not mention here the tremendous co-operation I receivedfrom my wife and my daughter in the completion of this voluminous work, in particular, whose patience,support, encouragement, understanding and love helped to bring this effort to DesaiCO N T E N T SPrefaceUNIT I : : A Conceptual : An Indian Personality58-90 UNIT II : ENTREPRENEURIAL in Aid of ENTREPRENEURSHIP Development110-136 UNIT III : launching Formalities166-206 UNIT IV : THE of Support Institutions to Promote Small Project Report236-246 UNIT V : COST AND of Analysis287-298 UNIT VI.