Scribd
Upload
16 views3 pages

Unit 9 - Small Business Extra Notes

cbse

Uploaded by

kittuloveh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
16 views3 pages

Unit 9 - Small Business Extra Notes

cbse

Uploaded by

kittuloveh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

UNIT 9

SMALL BUSINESS
NOTES ON NEW TOPICS INCLUDED IN THE REVISED SYLLABUS

ENTREPRENEURSHIP DEVELOPMENT – CONCEPT


Definitions of
An Entrepreneur:
An Entrepreneur is a person who sets up a business or businesses, taking on financial risks in the pursuit of
profit.
Entrepreneurship:
The process by which either an individual or a team identifies a business opportunity and acquires and
deploys the necessary resources required for its exploitation.
Entrepreneurship Development:
Entrepreneurship Development seeks to equip a person with the necessary knowledge and skills needed for
successfully starting and running the enterprise.

CHARACTERISTICS OF ENTREPRENEURSHIP
a) It is an economic activity as it is concerned with setting up a business enterprise in pursuit of
earning profit.
b) It is dynamic in nature as the success of an entrepreneur depends upon the ability to innovate
constantly according to changing situations.
c) It involves risk which may vary with the nature and size of the business.
d) It is suitable for people with high competence to work under challenging and innovative situations.
e) It is a purposeful activity as the new business ideas are implemented with the motive of benefitting
the people at large.

NEED FOR ENTREPRENEUSHIP DEVELOPMENT


a) It is an important instrument for employment generation in the country through the establishment
of new and small enterprises.
b) It promotes balanced economic development since a small business can be started with low
investment and can be easily carried out in rural and semi-urban areas.
c) It encourages innovations in enterprises as they enjoy greater flexibility as compared to a large -
scale enterprise and foster growth of small firms in the country.
d) It has enabled the Indian industry to compete in the international market due to the enhanced
competence of small business in the country.
e) It offers innumerable social benefits like ensuring optimum utilization of resources, raising the
standard of living of people by providing better quality products at reasonable prices and so on.

PROCESS OF ENTREPRENEURSHIP DEVELOPMENT


a) The person concerned does a self- introspection to gauge his relative strengths and weaknesses.
b) The various forthcoming business opportunities are identified in terms of unsatisfied needs and
wants of people.
c) The evaluation of various business opportunities is done and the selection is narrowed down to
one best business idea.
d) The assessment of the selected business idea is done in terms of its feasibility to become a viable
business venture by conducting various researches.
e) The entrepreneur initiates steps to raise start-up capital.
f) The business venture is launched and necessary activities are carried out to make it a success.
g) To foster growth of business, new ideas are developed and implemented through effective
environmental scanning.
h) The final stage relates to harvesting wherein the entrepreneur may sell his business and gain rewards
of his endeavours.

STARTUP INDIA
As per the definition of the Department of Industrial Policy and Promotion, the Ministry of Commerce and
Industry, Government of India,
Startup means an entity incorporated or registered in India:
● Up to a period of seven years from the date of incorporation/registration or up to ten years in case of
startups in Biotechnology sector;
● As a private limited company or registered as a partnership firm or a limited liability partnership;
● With an annual turnover not exceeding rupees 25 crore for any of the financial years since
incorporation/registration;
● Working towards innovation, development or improvement of products or processes or services, or if
it is a scalable business model with a high potential of employment generation or wealth creation;
Provided that an entity formed by splitting up or reconstruction of an existing business shall not be
considered a ‘Startup’.

An entity shall cease to be a Startup:


● On completion of seven years from the date of its incorporation/registration, ten years in case of
Startups in Biotechnology sector, or
● If its turnover for any previous year exceeds rupees 25 crores.

WAYS TO FUND STARTUP:


a) Bootstrapping refers to self-starting a business without external help or capital.
b) Venture capital is a type of private equity, provided by firms or funds who take on the risk of
financing and invest in small, early-stage, emerging firms that are deemed to have high growth
potential in exchange for equity, or an ownership stake, in those firms.
c) An angel investor is an affluent individual who provides capital for a business startup, usually in
exchange for debt or ownership equity.
d) Startup accelerators or seed accelerators, are fixed term group- based programs that include seed
investment, connections, mentorship, educational components and culminate in a public pitch event
or demo day to accelerate growth. In contrast, business incubators are government funded, generally
take no equity and focus on bio tech, financial technology, medical technology or product-centric
companies. Unlike business incubators, the application process for startup accelerators is open to
anyone, but is highly competitive.
e) Banks also provide startup funds that are essential to kick start a viable business idea based on
certain assessments and conditions.
f) Since Startup India is an initiative of the government of India, the government also provides funds
for such ventures through various schemes like I-MADE program, to help Indian entrepreneurs build
1 million mobile app startups and the MUDRA Banks scheme (Pradhan Mantri Mudra Yojana), an
initiative which aims to provide micro finance, low interest rate loans to entrepreneurs from low
socio-economic backgrounds.

INTELLECTUAL PROPERTY RIGHTS AND ENTREPRENEURSHIP

a) Intellectual property includes intangible creations of the human intellect and primarily
encompasses copyrights, patents and trademarks besides other types of rights, such as trade
secrets, publicity rights, moral rights and rights against unfair competition. Moreover, artistic
works like music and literature as well as some discoveries, inventions, words, phrases, symbols
and designs can all be protected as Intellectual property.
b) Patent: A patent is a form of right granted by the government to an inventor, giving the owner
the right to exclude others from making, using, selling, offering to sell and importing an
invention for a limited period of time in exchange for public disclosure of the invention. The
invention has to be new, not obvious and there needs to be an industrial applicability.
c) Copyright: A Copyright gives the creator of an original work exclusive rights to it, usually for a
limited time. Copyright may apply to a wide range of creative, intellectual, artistic forms or
‘works.’ Copyright does not cover ideas and information themselves, only the form or manner in
which they are expressed.
d) Trademarks: A trademark is a recognizable sign, design or expression which distinguishes
products or services of a particular trader from the similar products or services of other traders.

You might also like