Short notes:1. Innovation and Entrepreneurship What is Innovation?Innovation is not a technical term. It is an economic and social term.Its criterion is not science or technology but a change in the economic or social environment, a change in the behaviour of people as consumers, producers or as citizens.Innovation is investing of resources to create new wealth or investing of wealth to create new resources. It is measured by assessing its impact on environment, and therefore, innovation should always be Market Focused. It is the responsibility of every individual, and it begins with a conscious search for opportunities. Finding those opportunities and exploiting them with focused, practical solutions requires a rare genius. Innovation and Entrepreneurship - The linkInnovation is the specific function of entrepreneurship. It is the means by which the entrepreneur either creates new wealth producing resources or endows existing resources with enhanced potential for creating wealth.Innovation is an activity, the effort to create purposeful focused change in an enterprises economic or social potential.What is Innovative Strategy?The first objective of a strategy for an ongoing business is to optimize what already exists. However, the ruling assumption of an innovative strategy is whatever exists is aging. The assumption is on the premise that existing product lines and services, existing markets and distribution channels etc will sooner or later go down rather than up. The motto of a strategy for the ongoing business is Better and More , however, the motto of a strategy for innovation is New and Different . Innovative strategy is planned out by systematically getting rid of the old, the dying and obsolete, because abandoning yesterday alone will free resources for tomorrow.Why does one need to innovate? to face competition to stand out in a clutter to survive recession to solve certain problems Innovations and ProfitsThe main function of an entrepreneur is to introduce innovations in the economy and profits are reward for his performing this function. Any new measure or policy adopted by an entrepreneur to reduce the cost of production or to increase the demand for his product is an innovation.Innovation can be divided into two categories Those which reduce the cost of production ie which change the production functions. This first type of innovation includes the introduction of new machinery, new and cheaper technique or process of production, exploitation of a new source of raw material, a new and better method of organizing the firm etc. Those which increase the demand for the product ie which change the demand or utility function. This category includes the contd introduction of a new product, a new variety or design of the product, a new and superior method of advertisement, discovery of new markets etc. Role of an Innovator Role of an innovator is a part of entrepreneurship. The entrepreneur is not a man of ordinary managerial ability, but one who introduces something entirely new. The entrepreneur is motivated by the desire to be the founder of a private commercial kingdom, the will to conquer and prove his superiority and the joy of creating, of getting things done or simply of exercising ones energy and integrity. Role of Profit An entrepreneur innovates to earn profits. Profits arise due to dynamic changes resulting from innovation. They continue to exist until innovation becomes general.

2. Franchising:A management whereby the manufacturer or sole distributor of trade marked product or services gives the exclusive rights of local distribution to independent retailers for their payment and conformance to standardised operating procedures.Types of Franchisinga. Product Franchising (e.g. McDonalds, Monginis, Barista )b. Process Franchising (NIIT, Aptech, Eurokid)c. Business Format Franchising (e.g. Mckinsey, Earnst & Young) McDonalds : Im Loving ItMc Donalds is a very good example of a business that became a runaway success after the original owners sold it to an enthusiastic, aspiring entrepreneur.Arguably, one of the most successful franchise operations, McDonalds is the worlds largest chain of fast food restaurants. McDonalds outlets primarily serve hamburgers, French fries, colas, and milkshakes. McDonalds has over 30,000 restaurants serving 52 million people in more than 100 countries.Some of its outlets are company-owned but over 70 per cent are owned and operated by franchisees. McDonalds has been open to the idea of trying out new business models to suit the requirements of the local conditions. In India, initially McDonalds started operating through joint venture with local partners but eventually settled for franchising which was in line with their business model.The chain was started by the McDonald brothers, Dick and Mac in 1940, but the chain really took off after Ray Croc purchased their equity and led the international expansion of the chain.McDonalds provides training for its franchisees at the aptly named Hamburger University in Illinois. Thomas Carvelas, also known as Tom Carvel, founded Carvel Ice Cream and is considered to be the father of modern franchising. He started selling Ice Cream in New York in 1934. He developed new refrigeration machine and his own formula for soft-serve ice cream. Soon after the second world war, he started franchising his business. It was hugely successful and today Carvel has 570 franchise outlets in USA and is available at over 8500 other stores.There are others who say that the seeds of franchising were laid by Issac Singer, who invited distributors to expand the availability of his sewing machines. A little later, John Pemberton successfully tried out a franchise-type distribution system in Coca-Cola and it was hugely successful.Advantages to the Franchisee The entrepreneur does not have to incur all the risks that are often associated with starting a business from a scratch. Enters into a business that has an accepted name, product or service Managerial assistance and upfront support is often provided by the Franchiser. Knowledge and behavioural pattern of the market Maintaining quality control of products and services Advantages to the Franchiser Market Reach Focus on manufacturing, quality control, product and service innovations Expansion programmes Better financial managementDisadvantages of Franchising Inability of franchiser to offer niche/localised support - to provide service, advertising, data and actionable points from market research, meeting timelines etc Franchiser is bought out by another company. Territorial protection. Renewal of agreement/ advancement/ growth

3. Venture Capital:Sources of Capital1. Self2. Family and friends3. Suppliers and trade credit4. Commercial banks5. Asset-based lenders6. Institutions and insurance cos 7. Venture capital8. Private equity placements9. Public equity offerings10. Government programsVenture Capital Innovative and highly technical ventures High growth and high risk ventures Sunrise or Emerging ventures Phased disbursements Management support Multi skill supportThe main features of Venture capital financing Long term source of investment Equity participation thro direct purchase of shares or convertible securities Participation in the management of entrepreneurs business Also provide services of marketing, technology, organisational structure Enters when access of funds from conventional sources become difficult The business must have high potential of growth, not averse to the risk Flow of funds in a phased manner and can be in a form of debt also in initial stage Not a permanent equity holder Ensures the exit route in the appropriate manner - ensuring the interest of the entrepreneur as well Stages of Business Development FundingA. Early stage financing Seed capital Relatively small amounts to prove concepts and finance feasibility studies. Start-up Product development and initial marketing, but with no commercial sales yet; funding to actually get company operations started.B. Expansion or Development financing Second stage Working capital for initial growth phase, but no clear profitability or cash flow yet. Third stage Major expansion for the company with rapid sales growth, at breakeven or positive profit levels but still private company. Fourth stage Bridge financing to prepare company for public offering.C. Acquisition and leveraged buyout financing Traditional Acquisitions Assuming ownership and control of another company. Leveraged buyout Management of the company acquiring company control by buying out the present owners. Going private Some of the owners/ managers of a company buying all the outstanding stock, making the company privately held again. Overview of the Venture capital IndustryThe role of venture capital was instrumental in promoting entrepreneurship and industrialisation of the United States. Before World War II, venture investment activity was a monopoly of wealthy individuals, investment banking syndicates and few family organisations with a professional manager. The first step toward institutionalising the venture capital industry was in 1946 with the formation of the American R&D Corpn.in Boston with a small pool of capital from individuals and institutions put together by General Georges Doriot to make active investments in selected emerging businesses such as Digital Equipment Corpn. The next major development, the Small business Investment Company Act of 1958, married private capital with government funds to be used by professionally managed small business investment companies(SBIC firms) to infuse capital into start-up and growing small businesses. With tax advantages, government funds for leverage, and a private capital company, SBICs were the start of the now formal venture capital industry.Another type of venture capital firm also developed during the time was the venture capital division of major corporations, usually associated with banks and insurance companies, although companies such as 3M, Monsento and Xerox also have one. Guidelines for dealing with Venture Capitalists Select the venture capitalist carefully Do not work several deals in parallel Approach venture capitalist thro an intermediary Avoid professional help from lawyers, accountants in the initial stage Be very careful of what is projected or promised. The Business plan should reflect all. SWOT Ensure and negotiate for smooth entry and exit route Establish a high degree of trust Synergy Win / Win situation 4. What is Social Entrepreneurship?Social entrepreneurs are individuals with innovative solutions to societys most pressing social problems. A social entrepreneur recognizes a social problem and uses entrepreneurial principles to organize, create and manage a venture to achieve social change.While a business entrepreneur typically measures performance in profit and return, a social entrepreneur focuses on creating social capital. Thus, the main aim of social entrepreneurship is to further social and environmental goals. However, social entrepreneurs are most commonly associated with the voluntary and not-for-profit sectors, but this need not preclude making a profit. Social entrepreneurship practiced with a world view or international context is called international social entrepreneurship.

We believe that social entrepreneurs are those exceptional individuals who dream up and take responsibility for an innovative and untested idea for positive social change, and usher that idea from dream to reality. What enables social entrepreneurs to make lasting impact on the most difficult problems is a special combination of groundbreaking creativity and steadfast execution. Although the terms are relatively new, social entrepreneurs and social entrepreneurship can be found throughout history.Social EntrepreneurshipSocial entrepreneurs are not content just to give fish or teach how to fish. They will not rest untill they have revolutionize the fishing industry. They help communities to build up social capital which gives them a better chance of standing on their own two feet. They help bringing about social change on a major scale. They are agents of social change. Questioning the status quo, grabbing new yet overlooked opportunities, not for personal gain but for social gain. They, in a way, change the world for better. Making up for shortcomings of Govt. and bureaucracy. Identify under utilised resources/ Social problems.Social Entrepreneurship They generally create flat and flexible organisations, with a core of full-time paid staff, who work with few resources but a culture of creativity. Their organisations have an open and porous approach to their environment. They do not see themselves as providing their clients with a specific service; their aim is to form long-term relationships with their users that develop over time. While business entrepreneurs aim to generate profits, social entrepreneurs aim to improve social values. They aim to make broad-based, long term changes, instead of few immediate small-time results. They recognize when a section of the society is stuck and offer innovative ways to break out of its stagnant state. They propagate the solution and persuade the whole society to adopt it.IMPORTANCE: Social entrepreneurship sector is increasingly important for economic and social development because it creates social and economic values: 1. Employment Development The first major economic value that social entrepreneurship creates is the most obvious one because it is shared with entrepreneurs and businesses alike: job and employment creation. Estimates ranges from one to seven percent of people employed in the social entrepreneurship sector. Secondly, social enterprises provide employment opportunities and job training to segments of society at an employment disadvantage (long-term unemployed, disabled, homeless, at-risk youth and gender-discriminated women). In the case of Grameen, the economic situation of six million disadvantaged women micro-entrepreneurs were improved. A similar SHG movement is helping disadvantaged women in rural in India. 2. Innovation/ New Goods and Services Social enterprises develop and apply innovation important to social and economic development and develop new goods and services. Issues addressed include some of the biggest societal problems such as HIV, mental ill-health, illiteracy, crime and drug abuse which, importantly, is confronted in innovative ways. An example showing that these new approaches in some cases are transferable to the public sector is the Brazilian social entrepreneur Veronica Khosa, who developed a home-based care model for AIDS patients which later changed government health policy. 3. Social CapitalNext to economic capital one of the most important values created by social entrepreneurship is social capital (usually understood as the resources which are linked to possession of a durable network of ... relationships of mutual acquaintance and recognition"). Examples are the success of the German and Japanese economies, which have their roots in long-term relationships and the ethics of cooperation, in both essential innovation and industrial development. The World Bank also sees social capital as critical for poverty alleviation and sustainable human and economic development. Investments in social capital can start a virtuous cycle shown below: 4. Equity Promotion : Social entrepreneurship fosters a more equitable society by addressing social issues and try into achieve ongoing sustainable impact through their social mission rather than purely profit-maximization. In Yunuss example, the Grameen Bank supports disadvantaged women. Another case is the American social entrepreneur J.B. Schramm who has helped thousands of low-income high-school students to get into tertiary education resulting in income generation.To sum up, social enterprises should be seen as a positive force, as change agents providing leading-edge innovation to unmet social needs. Social entrepreneurship is not a panacea because it works within the overall social and economic framework, but as it starts at the grassroots level it is often overlooked and deserves much more attention from academic theorists as well as policy makers. This is especially important in developing countries and welfare states facing increasing financial stress.

5. entrepreneurship training Program:Small Scale business entrepreneur is a lone force behind starting, sustaining and running his firm. Therefore, if he is strengthened the business would automatically become strong on its own. Hence, for sustaining the enterprise it is very important to equip him with the support system. It was found that the mortality rate in SSI is very high. The Government, therefore, planned Business Incubation Programs to help small businesses by providing support at Start up or when they find themselves unable to sustain.The Incubation program provide consultancy support in following forms :1. Basic benefit of Office space2. Coaching3. Funding4. Technical, Financial and Managerial5. Marketing Research Study and Forecasting6. Modernization schemes and financial & technical help for the same7. Growth Strategy8. Other common services

6. Support Organizations for SSI & Tiny Sector:1. Small industries development organization (SIDO):Apex body for formulating policies for SSI.2. Small industries service institute (SISI) : its a service agency provides tech. and mgmt consultancy services3. National small industries corpn. Ltd. (NSIC):helps SSI securing govt orders4. Small industries development bank of India (SIDBI):Micro financing, bill discounting5. Technology bureau for small enterprises ( TBSE): technology transfer, facilitating joint ventures6. Maharashtra industrial development corpn. (MIDC):development of industrial areas by acquiring land, developing infra stucture 7. Maharashtra small scale industries development corpn. Ltd. (MSSIDC):supply of raw material credit, bank guarantees, credits, warehousing services.8. Maharashtra industrial & technical consultancy services ltd. (MITCON):policy and macro studies, region and industry studies, long range planning, computer services, market research.

1. S I D B I : (Small Industries Development Bank of India)Functions1. Refinance Assistance2. Direct Assistance3. Bills Scheme

1. Refinance Assistancea. Seed capital schemeb. Single window schemec. Provision of term loand. Scheme for tourism related activitiese. Equipment refinance scheme2. Direct Assistancea. ISO 9000 schemeb. Project finance schemec. Scheme for foreign currencyd. Pre-shipment credit foreign currency loan. (PCFC)3. Bills Schemea. Bill direct discounting schemesb. Bill rediscounting scheme SIDBI Venture Capital Ltd. SME Growth Fund

2. S I S I: (Small Industries Service Institute)Schemes of assistance and services1. Technical consultancy servicesa. Technical guidanceb. Identification and preparation of Business plansc. Selection of equipment, M/c, Raw materialsd. Technical up gradation e. Participations in Seminars, Workshops, Clinics2. Managerial Consultancy Services3. Economical Investigation Services4. Entrepreneurial and Ancillary Dev. Programs Q.3 Define the term Intrapreneur. What are the advantages of Intrapreneurship? What steps would you advocate to promote intrapreneurship in an organization? What is Intrapreneurship ? It is a corporate entrepreneurship It is entrepreneurship in existing business They bridge a gap between a manager and an innovator. Their contribution is in taking new ideas and even working prototype and turning them into profitable products and businesses. When the ideas have become solid and functioning businesses, intrapreneurs tend to grow bored. At this point, they often need proven managers to maintain and develop business while they go back to building new ventures for others to manage. As a corp. entrepreneurship an organisation seeks to expand/ grow by exploring new opportunities through new combinations of its existing resources. It is a tool for stimulating and capitalizing on individuals in an organisation who believe that something can be done differently and in a better way.An Entrepreneur operates in an open world whereas an intrapreneur operates within the organisation. For Entrepreneur, the liability is total whereas for Intrapreneur the liability is limited to his contract with his employers.Advantages of Intrapreneurship Intrapreneurial ideas offer a way to build onto or improve the corp. business Capital for the idea is easy to come from internal sources within a corp. identity The established corporate image helps to boost the chances of success of an intrapreneur idea. Corporates offer economies of scale in marketing, distribution and service. Corporates offer the unique advantage of multidisciplinary teamwork. The intrapreneur retains the job security but as well enjoys the freedom and prosperity.What steps would you advocate to promote intrapreneurship in an organization?

1. Support from ownership and top management. This support should not simply consist of passive approval of innovative ways of thinking. Ideally, it should also take the form of active support, such as can be seen in mentoring relationships. Indeed, the small business owner's own entrepreneurial experiences can be valuable to his firm's intrapreneurial employees if he makes himself available to them.2. Recognition that the style of intrapreneurialism that is encouraged needs to be compatible with business operations and the organization's overall culture.3. Make sure that communication systems within the company are strong so that intrapreneurs who have new ideas for products or processes can be heard.

4. Intelligent allocation of resources to pursue intrapreneurial ideas.

5. Reward intrapreneurs. All in all, intrapreneurs tend to be creative, dedicated, and talented in a variety of areas. They are thus of significant value even to companies that do not feature particularly innovative environments. Their importance is heightened, then, to firms that do rely on intrapreneurial initiatives for growth. Since they are such important resources, they should be rewarded accordingly (both in financial and emotional terms).

Q.4 Define Small Enterprises. Explain characteristics of small-industry. What are the factors responsible for their success?Definition Small Scale Industries. Definition: Small Scale Industrial Undertakings are those which are engaged in the manufacturing, procession or preservation of goods and in which investment in plant and machinery (original cost) excluding the cost of land and building does not exceed Rs. 1.5 crore. Those would inter alia, include units engaged in mining or quarrying, or servicing of machinery. (Limit up to Rs 5 crores in respect of 71 hi-tech export oriented items.) Characteristics of Small Scale Industries Small scale industries are the backbone of the Indian traditional structure. They provide a variety of non-traditional, low technology product. Small-scale industries constitute an important and crucial segment of the industry sector. It has all the characteristics of the decentralized sector such as small size and employment intensity and the entire lot begins to private sector. The contribution of SSI sector to employment is next only to agriculture as a dynamic and vibrant sector of the economy. Small scale and cottage industries are the most important employment providing sectors of the economy. 1. Small capital investment.Small scale industries require less capital as compared to medium or large-scale industries. E.g. an artisans family can start their business with just few hundred rupees. 2.Generate Employment.Small scale industries are generally labor intensive and hence create employment opportunities which is the need of the hour. It helps in developing country to solve the problem of unemployment. 3. Personal Contact.There is personal supervision of all activities i.e. production, purchase, labour, and marketing of goods and it is done by the entrepreneur himself.4. Location.Small scale industries are generally located in rural and semi urban areas. 5. Exploitation of human resources.Child and women labor in particular are exploited by small scale industries. 6. Growth.The small scale industrial activity has been growing at faster rate even than the large- scale sector. 7. Technology.Small scale industries do not require high level of technology. 8.Dispersal of Manufacturing Activity.Small- scale industries make it possible to transfer manufacturing activities from congested metropolitan cities to the rural and semi urban areas.

9.Poor Organization and Management. The management and organization of small-scale industry is poor and negligible. There is no delegation of authority. 10. Ownership.Most of the small-scale industries are privately owned and organized as sole proprietorship. The owners and the family workers generally form the largest component of small- scale force.

What are the factors responsible for their success? 1. Labour intensive: - SSI do not require large amount of capital. They are labour intensive and can provide employment to large amount of people. The energy of the unemployed and the underemployed may be utilized for productive purpose in the economy. 2. Equitable distribution of income and wealth: - By creating opportunities for small business, small enterprises can bring about a more equitable distribution of income and wealth which is socially necessary and desirable. 3. Production: - SSI projects can be undertaken in a short period and hence can increase the production in the short run and the long run. The small sector produces a large production of the national products. 4. Dispersal of manufacturing activities: - SSI will make possible transfer of manufacturing activity from congested cites to the rural and semi urban areas. This will help in bringing about a balanced regional growth. 5. Linkages: - The large scale industries create an opportunities or facility for growth of small scale industry. The growth of large motor industry will create opportunities for setting up of small service station and repair centers. 6. Own identity: Small scale enterprises have their own place in the countrys economy. Imperfect competition protects the small firms market and enables them to exist even if they are not efficient in terms of cost. 7. Mobilization of services: In the rural areas savings are generally used in unproductive consumption. The growth of cottage and small scale industry can offset the investment opportunities to people living in under developed countries. 8. Export potential: Nearly 20% of the total value of export comes from small scale industry. The main items of export of small scale sectors include engineering goods, diamond cutting, pharmaceuticals , sports goods , finished leather, ready made cotton garments , processed foods , etc.

5. What are the challenges faced by women entrepreneurs? How entrepreneurship would be a better career option for Women?Women and EntrepreneurshipOne of the reasons for slow economic growth in India is the relative absence of women in the mainstream of economic activities.Scenarios in various fields Bureaucracy, IAS/ IPS and Armed forces Politics Agriculture Education Sector Corporate world Entrepreneurship How Entrepreneurship will be a favourable career for Women ?1. Flexibility in working hours and targets2. Profession with high elasticity It can never get crowded, no quota, no reservation3. Women are excellent in managing finances4. On par or even better than men Responsibilities from early childhoodChallenges faced by Women Entrepreneurs Male dominated society Family Responsibilities Social Attitude Low mobility Lack of education Low need for achievement / Shift in priorities Shortage of finance CompetitionShortage of finance: Obtaining the support of bankers, managing the working capital, lack of credit resources are the problems which still remain in the males domain. Women are yet to make significant mark in quantitative terms. Marketing and financial problems are such obstacles where even training doesn't significantly help the women. Some problems are structural in nature and beyond the control of entrepreneurs.Family Conflicts:Women also face the conflict of performing of home role as they are not available to spend enough time with their families. They spend long hours in business and as a result, they find it difficult to meet the demands of their family members and society as well. Their inability to attend to domestic work, time for education of children, personal hobbies, and entertainment adds to their conflicts. Low mobility: Unlike men, women mobility in India is highly limited due to various reasons. A single woman asking for room is still upon suspicion. Cumbersome exercise involved in starting an enterprise coupled with the officials humiliating attitude towards women compels them to give up an idea of starting an enterprise.

Lack of Education: In India, around three- fifths (60%) of women are still illiterate illiteracy is the root cause of socio- economic problems. Due to the lack of education and that too qualitative education, women are not aware of business, technology and market knowledge. Also, lack of education cases low achievement motivation among women. Thus, lack of education creates problems for women in the setting up and running of business enterprises.Male dominated Society: The constitution of India speaks of equality between sexes. But, in practice women are looked upon as able i.e. weak in all respects. Women suffer from male reservations about a womens role, ability and capacity and are treated accordingly. In nutshell, in the male dominated Indian society, women are not treated equal to men. This in turn, serves as a barrier to women entry into business.Stiff Competition: Women entrepreneurs do not have organization set- up to pump in a lot of money for canvassing and advertisement. Thus, they have to face a stiff competition for marketing their products with both organized sector and their male counterparts. Such a competition ultimately results in the liquidation of women enterprises.

Successful Women EntrepreneursKiran Shaw Muzumdar of Biocon, Shahnaz hussain, Vandana Luthra (VLCC), Ekta Kapoor, Indra Noyee, Naina Lal Kidwai, Chanda Kochar, Shikha Sharma, Kiran Bedi, Medha Patkar. Conventional Businesses/ Career optionsBeauty parlor, Food processing - Pickle & Spice making, Fashion designing, Jewellary designing, Tailoring, Catering, Politics, Education.New AreasMass media, Entertainment industry, Tourism, IT, Co-op Movement in Rural India, Politics, Corporates/ MNCs, Hospitality, Social entrepreneurship NGOs.

7. What is Social Entrepreneurship? Discuss their contribution in todays context in urban or rural areas of India.What is Social Entrepreneurship?Social entrepreneurs are individuals with innovative solutions to societys most pressing social problems. A social entrepreneur recognizes a social problem and uses entrepreneurial principles to organize, create and manage a venture to achieve social change.While a business entrepreneur typically measures performance in profit and return, a social entrepreneur focuses on creating social capital. Thus, the main aim of social entrepreneurship is to further social and environmental goals. However, social entrepreneurs are most commonly associated with the voluntary and not-for-profit sectors, but this need not preclude making a profit. Social entrepreneurship practiced with a world view or international context is called international social entrepreneurship.We believe that social entrepreneurs are those exceptional individuals who dream up and take responsibility for an innovative and untested idea for positive social change, and usher that idea from dream to reality. What enables social entrepreneurs to make lasting impact on the most difficult problems is a special combination of groundbreaking creativity and steadfast execution. Although the terms are relatively new, social entrepreneurs and social entrepreneurship can be found throughout history.a) In context of India, the name of Vinoba Bhave tops the list of social entrepreneurs. He was the Founder and leader of the Land Gift Movement, or the Bhoomi Dhan Movement by which he caused the redistribution of more than 7 million acres of land to aid India's untouchables and landless.

b) Florence Nightingale of the U.K. is also recognised as a social entrepreneur for her invaluable contribution in improving the health care facilities. In fact she was the founder of the first nursing school and the developer of modern nursing practices

c) Muhammad Yunus, founder and manager of Grameen Bank, is also an eminent social entrepreneur from our neighbouring country of Bangladesh who by his untiring efforts has brought about a positive change in the lives of the poor oppressed women groups.d) Another name that deserves special mention here is that of Jay Vikas Sutaria who through his website Bhook.com is trying to fight the hunger problem of India.e) Aravind Eye Hospital & AurolabSocial Entrepreneur: Dr.Govindappa Venkataswamy (Dr. V) & David GreenType of Organization: TrustLocation: Madurai, IndiaWebsite: www.aravind.orgMission: Making medical technology and health care services accessible, affordable and financially self-sustainingF)SKS IndiaSocial Entrepreneur: Vikram AkulaType of Organization: For-profitWebsite: www.sksindia.coMission : Empowering the poor to become self-reliant through affordable loansG)Shri Mahila Griha Udyog Lijjat PapadType of Organization: SocietyWebsite: www.lijjat.comShri Mahila Griha Udyog Lijjat Papad is a Womens organisation manufacturing various products

Q.10What are the Sources of Capital and explain the factors determining the capital requirement of a venture. What is the specific role of a venture capital partner?(prefer the answer of short note on venture capital) Q.6 What are the main sources of entrepreneurial ideas? How does an entrepreneur go about identifying and evaluating Opportunities? Sources of new ideas forEntrepreneurs1. Consumersthe potential consumer should be the final focal point of ideas for the entrepreneurs. The attention to inputs from potential consumers can take the form of informally monitoring potential ideas or needs or formally arranging for consumers to have an opportunity to express their concerns. Care needs to be taken to ensure that the new idea or the needs represents a large enough market to support a new venture.2. Existing Companieswith the help of an established formal methods potential entrepreneurs and intrapreneurs can evaluate competitive products & services on the market which may result in new and more market appealing products and services.3. Distribution channelsmembers of the distribution channels are familiar with the needs of the market and hence can prove to be excellent sources of new ideas. Not only do the channel members help in finding out unmet or partially met demands leading to new products and services, they also help in marketing the offerings so developed.4. Governmentit can be a source of new product ideas in two ways firstly, the patent office files contain numerous product possibilities that can assist entrepreneurs in obtaining specific product information, and secondly, response to government regulations can come in the form of new product ideas.5. Research & developmentEntrepreneurs own R&D is the largest source of new idea. A formal and well-equipped research and development department enables the entrepreneur to conceive and develop successful new product ideas.