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Process of Establishing and

Managing an Enterprise

Successful Models of Agro-

entrepreneurship in Indian

Scenario

Dr. M.B. Dhadwad

Assistant Professor,

Dept. of Agril. Extn. & Comm.,

MPKV, Rahuri

Establishing an Enterprise

Entrepreneurial development

• (^) The process of starting a new business venture is embodied in the entrepreneurial development process. The process can be classified into four phases. Establishing an Enterprise

• (^) Business idea/opportunity must be carefully screened and evaluated for market potential, financial viability and technical feasibility.
• (^) Entrepreneur should understand the cause of opportunity.
• (^) It may be technological change, market shift, government regulation or competition.

Identification & evaluation of the opportunity:

Establishing an Enterprise

Determine the Resources Required

This process stars with an appraisal of the entrepreneur’s available resources. Types of resources: Financial: this includes money, shares and other assets Physical: refers to tangible property such as equipment and office space Human resources: includes the knowledge, training, experience, as well as the time of the business owner and employees Technological: are embodied in a process, system or physical transformation, eg. unique software products and tailored information system architecture Reputation: encompasses the perceptions that people in the business' environment have of the business Organizational: include the business' structure, routines and systems Establishing an Enterprise

Implementation and management of the

enterprises

After resources are identified, the entrepreneurs

• (^) Set the business venture,
• (^) Employ the resources through the implementation of the business plan,
• (^) Manage the enterprise,
• (^) Create and look for growth. Establishing an Enterprise

Steps in setting up an enterprise

Project Selection Technology and machinery Arranging Finance Unit Development Filing of Entrepreneurs’ Memorandum Approvals Clearances Quality Certification

1. Project Selection

• (^) After emergence of viable business opportunity, project has to be conceptualised in all dimension of 4 Ps of Project - (^) Product (shape, size and nature), - (^) Process (technology to produce the product), - (^) Place (Location of plant), and - (^) Partner (Technological or Financial Collaborator). Steps in Setting up Enterprise

2. Technology and machinery

• (^) After selection of product, process technology is selected for production/manufacturing of product. In selecting the process technology, following point should be kept in mind: - (^) Requirement of level of skills and complexity of machines. - (^) Requirement of large quantities of water and/or power- - (^) Issue related to product patent if any - (^) Any special pollution or environmental regulations. - (^) Appropriateness to the local environment and conditions. Steps in Setting up Enterprise

3. Arranging Finance

• (^) Monetary support is necessary to take off small enterprises.
• (^) The monetary support is required as seed capital, short, medium and long term loans and for mitigating risk.
• (^) The important institutions provide credits to business enterprises are commercial/Regional Rural/Co-operative Banks, Small Industries Development Bank of India (SIDBI) and State Financial Corporations, etc. Steps in Setting up Enterprise

4. Unit Development (Cont.…)

• (^) Projections for manpower and staffing, machinery and materials are made in the business plan.
• (^) Selection of proper manpower and procurement of right machinery and materials are very important and critical in establishment of plant to success. Steps in Setting up Enterprise

5. Filing of Entrepreneurs’ Memorandum - (^) Filling of memorandum by a Micro, Small or Medium Enterprise Section 8 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 is necessary. - (^) The memorandum may be filed with the District Industries Centre in the jurisdiction of which the enterprise is (or, is proposed to be) located. - (^) The File Format for Entrepreneurs Memorandum and the detail procedure for filing it are available at http://dcmsme.gov.in/howtosetup/getstart Steps in Setting up Enterprise

8. Quality Certification

• (^) Quality certification is very important in competitive markets and especially in international markets. To avail the quality certification like ISO-9000, a significant cost has to be borne.
• (^) A scheme has been launched to give financial incentive to those SSI units who acquire ISO- 9000 certification, by reimbursing 75% of their costs of obtaining certification, subject to a maximum of Rs. 0.75 lakhs per unit. Steps in Setting up Enterprise

Stages of Enterprise

Development

Pre- venture stage Start-up stage Growth stage Mature stage Revitaliz ation stage

• (^) refers to a nonexistent or nascent product or service.
• (^) Opportunities for new products or services are identified, but the supply chain and market outlet are unclear and “proof of concept” is not yet established.
• (^) Planning and research, writing a business plan, and finding start-up funding are the primary activities