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Entrepreneurship Development
- 2. Definition ofSick Unit The study Team of the State Bank of India 1975 , defined a sick unit as “ one which fails to generate internal surplus on continuing basis and depends for its survival upon frequent infusion of external funds”.
- 3. The financialsymptoms Improper bank accounts Shortages of funds to meet short – term financial obligation Inability to pay interest on borrowing Inability to pay creditors on time Delay or default in the payment of statutory dues such as PF, ESI etc.
- 4. 1. Declinein capacity utilization 2. Frequent breakdown in plant and machinery 3. Decline in the quality of products or service 4. Fall in stock of inventories 5. Incapacity to produce according to schedule 6. Excessive labour turnover 7. Delay in submission of data to bank and financial institutions.
- 5. 1. ExternalCauses 2. Internal Causes 1. External Causes The external causes are beyond the control of the industry and usually affect the industry as a whole.
- 6. 1. changein the government policy 2. inadequate availability of inputs like raw material due to poor agricultural output , change in input conditions etc. 3. Recessionary trends 4. Credit squeeze by banks 5.infrastructural problems like transport, power cuts etc. 6.change in monetary policy 7.adverse changes in money market and capital market.
- 7. Internal causes arewithin the control of the industrial unit and mostly relate to mismanagement in various operational areas. 1. Lack of Experience of Promoters 2. 2. Easy approval of small – scale unit 3. 3. Dependence on own funds 4. 4. improper financial structure 5. 5. lack of management experience
- 8. 6. Diversionof funds 7. non – observation of the principles of management 8. Delay in payments 9.Marketing 10. Poor information system 11. Personnel constraints 12.Under utilization of capacity 13.Delayed in Recognition 14. Lack of financial control 15. Improper technology
- 9. 1. Ensuresthat sickness is arrested at the incipient stage 2. Make professional management expertise easily available 3.Priority to small scale units 4. Action for non- payment 5. Rehabilitation package to cover various areas. 6. Rehabilitation package 7. separate division in BIFR in deal with sickness.
- 10. Meaning: A Project reportwhich provides all the necessary details of the unit proposed to be established either for the manufacture of a product or for rendering a service. it is nothing but a blur print of all those activities that an entrepreneur proposes to engage in. Contents of the Project Report 1. General Information 2. Project Description 3. Market Potential 4. Capital Costs and Sources of Finance 5. Assessment of Working Capital Requirements 6. Financial Consideration 7. Economic and Social Considerations
- 11. The establishmentof DIC in 1978 was a landmark in the development of small and cottage industries in India. DIC in the headquarters of the each district in India. DIC was set up to provide under single roof all the services and support required by small and village entrepreneurs.
- 12. 1. Motivation Campaigns 2.Surveys 3. Actions Plans 4. Registration 5. Help to obtain credit 6. Guidance 7. Recommending application to Various Organisation 8. Marketing Assistance 9. Training 10. Entrepreneur Development Programme 11. Trade Fairs
- 13. SIDO isthe apex body and established in 1973. SIDO is the nodal agency for formulating, co-ordinating and monitoring the policies and programmes for promotion and development of small scale industries. Functions of SIDO 1. Coordination 2. Industrial Development 3. Extension Services
- 14. The StateIndustries Development Corporations are set up in various status under the Companies Act 1956 to cater to the primary development needs of tiny,small,and Village industries in the state. In Tamilnadu the SIDCO was set up in 1970, for promotion and development of small – scale industries in the state.
- 15. 1. Formation ofIndustrial Estates 2. Marketing Assistance 3. Hire Purchase and Equipment Leasing Scheme 4. Export House 5. Industrial Development in Backward Areas
- 16. The NSICwas set up in 1955, to promote and foster the growth of small – scale industries in the country. Functions of NSIC: 1. Supply of Machines on Hire Purchase 2. Government Stores Purchase Programme 3. Marketing Assistance 4. Exports 5. Supply of Scarce Raw Materials 6. Technical Training 7. Industrial Estates 8. Turnkey Projects
- 17. The Promotersof ITCOT are IDBI, ICICI, IFC,SIPCOT, THC, SIDCO and commercial banks. Functions of ITCOT: 1. Core Consultancy Services 2. Energy Consultation Services 3. IT Consultancy
- 18. The StateIndustries Promotion Corporation of Tamil Nadu Limited (SIPCOT) was formed in the year 1971, to promote industrial growth in the State and to advance term loans to medium and large industries Functions of SIPCOT 1. Development of industrial complexes/parks/industrial estate with basic infrastructure facilities. 2. Establishing sector-specific Special Economic Zones (SEZs) 3. Implementation of Special infrastructure Projects
- 19. TIIC, establishedin 1949, is the first State level Development Financial Institution promoted for catalyzing industrial development. Functions of TIIC TIIC provides financial assistance for purchase of land, machinery and construction of buildings The purpose could be for setting up new units / expansion / modernization / diversification of existing industries. Assistance is extended to both manufacturing and eligible service sector industries. It focuses on extension of assistance to Micro, Small, and Medium enterprises, which account for 90% of the total assistance. Further about 40% of the total assistance is availed by first generation entrepreneurs.
- 20. SIDBI setup on 2nd April 1990 under an Act of Indian Parliament, It acts as the Principal Financial Institution for Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector as well as for co-ordination of functions of institutions engaged in similar activities.
- 21. 1. Refinance toSSI 2. SIDBI offers assistance to exports 3. Non finance services 4. Seed capital and also soft loan Assistance 5. Non finance services 6. Hire purchase financing 7. Assistance to other financial institutions 8. Modernization 9. Venture capital 10. Single window scheme
- 22. Meaning: The term “incentives” mean stimuli for action. The stimuli motivates entrepreneurs to start and run small – scale units. The government offers various incentives to entrepreneurs to set up small scale units and run them efficiently. Objectives of Incentives: To encourage entrepreneurs to take up industrial ventures To ensures the competitive strength of the units To attain balanced regional development
- 23. Meaning: A Subsidy meanis a government payment or grant to a private enterprise or institution for the good of the public. In India, subsidy by the government to attract industries to backward regions, to develop certain specific category of industries and also to give employment to women workers.
- 24. 1. Credit linkedCapital Subsidy Schemes for Technology Upgradation 2. Market Development Assistance Schemes for MSME’s 3. Quality Upgradation through incentives 4. Financial Assistance for Bar Code 5. Food Processing Industry 6. Leather Industry 7. Coir industry 8. Subsidy for Backward Areas 9. Transportation Subsidy
- 25.