Competencies Competency is composed of knowledge, skills,
abilities, traits and other characteristics for successful job
performance. An entrepreneur is expected to interact with these
environmental forces which require him to be highly competent in
different dimensions like intellectual, attitudinal, behavioral,
technical, and managerial aspects.
Slide 3
Need for Entrepreneur Competencies Entrepreneurial competencies
are the skills necessary for an entrepreneur to venture into an
enterprise Organize and manage an enterprise competently to realize
the goal for which the enterprise is established.
Slide 4
COMPONENTS OF ENTREPRENEURIAL COMPETENCIES ATTITUDINAL
COMPETENCY ATTRIBUTES An attitude is a hypothetical construct that
represents an individuals degree of like or dislike for something.
Attitudes are generally positive or negative views of a person,
place, thing, or event. Attitudes are judgments of an individual.
Behaviour in a given situation can be viewed as a function of the
individuals attitude towards the situation.
Slide 5
Self Confidence Self-confidence is an essential trait in an
entrepreneur because he is regularly called upon to perform tasks
and make decisions that require great amounts of faith and belief
in himself to achieve the predetermined goals.
Slide 6
Self Esteem Self-esteem of an entrepreneur represents his
ability to develop healthy confidence and respect for himself.
Dealing with Failures Entrepreneurship is about getting up whenever
the business fails, and learning from that failure. An entrepreneur
believes that failure is part of the entrepreneurial process, and
often without it, success would not be possible.
Slide 7
Tolerance for Ambiguity In the entrepreneurial process
tolerance for ambiguity refers to the ability of an entrepreneur to
perceive ambiguous situation as desirable, challenging, and
interesting.
Slide 8
Concern for high quality An entrepreneur has a concern for high
quality of his products and services to meet or surpass existing
standards of excellence in a faster, better and cheaply way.
Slide 9
Locus of Control (LOC) Locus of control is the system of belief
of an individual who perceives the outcome of an event as being
either within or beyond his personal control. Entrepreneurs tend to
believe in their own ability to control the outcomes to their
efforts by influencing the existing environment, rather than leave
everything to luck.
Slide 10
BEHAVIORAL COMPETENCY ATTRIBUTES Behavioral competency of an
entrepreneur refers to the underlying charecteristics having casual
relationship with effective or superior performances in the process
of carrying on his business activities.
Slide 11
Initiatives Initiative of an entrepreneur refers to his
behavior with a preference for taking action on different
responsibilities or assignments. Sees and Acting on Opportunities
Sees and acting on opportunities refers to the unique
entrepreneurial behaviour which helps him to be alert to
information and ability to process it in order to identify and
recognize the potential business opportunities even before his
competitor.
Slide 12
Persistence Persistence of an entrepreneur denotes the ability
which keeps him constantly motivated even when he is confronted by
obstacles and willing to keep trying when things go wrong.
Slide 13
Assertiveness Assertiveness of an entrepreneur is about his
rights or point of view without either aggressively threatening the
rights of others (assuming a position of dominance) or submissively
permitting others to ignore.
Slide 14
Need for achievement Successful entrepreneurs are characterised
by a need for achievement which motivates them to take up
responsibilities for finding solutions to problems. Need for
autonomy The need for autonomy of an entrepreneur is characterized
by a drive to control and influence others, a need to win
arguments, a need to persuade and prevail.
Slide 15
Risk-taking Entrepreneurs are essentially persons who take
decisions under uncertainty and therefore they are willing to bear
risk. Innovation Innovation refers to characteristic of an
individual who has interest and desire to seek changes in
techniques and ready to introduce such changes into his
operations
Slide 16
Creativity An entrepreneur is said to be creative when he is
able to identify a gap in the market and think up a product or
service to meet that gap. Creativity of an entrepreneur also
implies the ability to do old thinks in a new way or able to give
new solutions.
Slide 17
MANAGERIAL COMPETENCY ATTRIBUTES Managerial Competency of an
entrepreneur is the ability to direct his staff and define the
expected outcomes clearly and finally to get the things done at the
best and cheapest ways and means. Information seeking An
entrepreneur has an urge to look for the required information in
order to make an informed decision, for example, selecting,
starting and successfully managing the desired business
Slide 18
Systematic planning An entrepreneur is expected to have
systematic planning which will help him to prepare an action plan
for every area of operation in order to achieve the pre determined
goals. Problem solving Problem solving refers to the application of
appropriate knowledge and skills in order to solve a problem
arising while carrying on the business.
Slide 19
Persuasion Persuasion in entrepreneurship refers to the ability
of entrepreneurs to link, convince and influence other individuals,
groups, agencies, creditors, debtors, customers and even
competitors in order to create a contact and maintain good
rapport.
Slide 20
Goal setting & Perseverance Goal setting refers to the
ability of an entrepreneur to set clear and specific goals and
objectives. Successful entrepreneurs are able to achieve great
things only by overcoming the obstacles that stand in their way.
Therefore they need to have perseverance which implies commitment,
hard work, and patience, endurance apart from being able to bear
difficulties calmly and without complaint.
Slide 21
Communication Skill Communication skill refers to the ability
of an entrepreneur to transfer ideas, plans, policies and
programmes to employees, debtors, creditors, customers and everyone
who is connected with the business in order to inform, influence
and to express his feelings.
Slide 22
Technical knowledge An entrepreneur needs to address the rapid
technical changes in the industry. Higher levels of technology must
be introduced in the production methods in order to achieve
productivity demands.
Slide 23
Social skill Social skill of entrepreneurs include social
perception (the ability to perceive others accurately),
expressiveness (the ability to express feelings and reactions
clearly and openly), impression management (skill in making
favorable first impressions on others), and social adaptability
(proficiency in adapting ones actions to current social contexts)
in the process of managing his business.
Slide 24
Other Competencies Opportunity competencies : Competencies
related to recognizing and developing market opportunities through
various means. Relationship competencies : Competencies related to
person-to-person or individual-to-group-based interactions, e.g.,
building a context of cooperation and trust, using contacts and
connections, persuasive ability, communication and interpersonal
skill. Conceptual competencies : Competencies related to different
conceptual abilities, which are reflected in the behaviors of the
entrepreneur, e.g., decision skills, absorbing and understanding
complex information, and risk- taking, and innovativeness.
Organizing competencies : Competencies related to the organization
of different internal external human, physical, financial and
technological resources, including team-building, leading
employees, training, and controlling Strategic competencies :
Competencies related to setting, evaluating and implementing the
strategies of the firm. Commitment competencies : Competencies that
drive the entrepreneur to move ahead with the business.
Slide 25
Government Support to Entrepreneurs An entrepreneur requires a
continuous flow of funds not only for setting up of his/ her
business, but also for successful operation as well as regular up
gradation/ modernization of the industrial unit. To meet this
requirement, the Government (both at the Central and State level)
has been undertaking several steps like setting up of banks and
financial institutions; formulating various policies and schemes,
etc. All such measures are specifically focused towards the
promotion and development of small and medium enterprises.
Slide 26
The government of India has been taking active steps to promote
entrepreneurship in various industry & service sectors. It has
declared several policy measures and is implementing schemes and
programmes to enhance the global competitiveness of small
enterprises across the country. The Ministry of Micro, Small and
Medium Enterprises is the nodal Ministry for formulation of
policies, programmes and schemes, their implementation and related
co- ordination, for the promotion and development of small scale
industries in India. The role of the Ministry is to assist the
States in their efforts for the growth of the small scale sector,
by enhancing their competitiveness in an increasingly liberalized
economy. It is assisted by an attached office and two public sector
enterprise, namely:
Slide 27
Micro, Small and Medium Enterprises Development Organization
(MSME-DO) National Small Industries Corporation Ltd (NSIC) Khadi
and Village Industries Commission (KVIC) Coir Board
Slide 28
Micro, Small and Medium Enterprises- Development Organization
(MSME-DO). It is the apex body for assisting the Government in
formulating, coordinating, implementing and monitoring policies and
programmes for micro, small and medium enterprises (MSMEs) in the
country. MSME-DO provides a comprehensive range of common
facilities, technology support services, marketing assistance,
entrepreneurial development support, etc. Coir Board :- is a
statutory body, established under the Coir Industry Act, 1953, for
the promotion and development of coir industry in India as well as
for uplifting the living conditions of the workers engaged in this
industry.
Slide 29
National Small Industries Corporation Ltd (NSIC) :- was
established by the Government with a view to promoting, aiding and
fostering the growth of micro, small and medium enterprises in the
country, with a focus on commercial aspect of their operations. It
implements several schemes to help the MSMEs in the areas of raw
material procurement, product marketing, credit rating, acquisition
of technologies, adoption of improved management practices,
etc.
Slide 30
Khadi and Village Industries Commission (KVIC) :- established
under the Khadi and Village Industries Commission Act, 1956, as a
statutory organisation engaged in promotion and development of
khadi and village industries for providing employment opportunities
in the rural areas
Slide 31
Role of Government to support Entrepreneurship (a) To provide
information on regulations, standards, taxation, customs duties,
marketing issues; (b) To advise on business planning, marketing and
accountancy, quality control and assurance; (c) To create incubator
units providing the space and infrastructure for business beginners
and innovative companies, and helping them to solve technological
problems, and to search for know-how and promote innovation;
and
Slide 32
(d) To help in looking for partners, in order to stimulate
entrepreneurship and improve the business environment for small
enterprise.
Slide 33
Trainings There are a number of Government organizations as
well as NGOs who conduct EDPs and MDPs. These EDPs and MDPs and are
conducted by MSME's, NIESBUD, NSIC, IIE, NISIET, Entrepreneurship
Development Institutes and other state government developmental
agencies.
Slide 34
Marketing Assistance There are Governmental and
non-governmental specialized agencies which provide marketing
assistance. Besides promotion of MSME products through exhibitions,
NSIC directly market the MSME produce in the domestic and overseas
market. NSIC also manages a single point registration scheme for
manufacturers for Govt. purchase. Units registered under this
scheme get the benefits of free tender documents and exemption from
earnest money deposit and performance guarantee.
Slide 35
Promotional Schemes Government accords the highest preference
to development of MSME by framing and implementing suitable
policies and promotional schemes. Besides providing developed land
and sheds to the entrepreneurs on actual cost basis with
appropriate infrastructure, special schemes have been designed for
specific purposes like quality upgradation, common facilities,
entrepreneurship development and consultancy services at nominal
charges.
Slide 36
Concession on Excise Duty MSME units with a turnover of Rs. 1
crore or less per year have been exempted from payment of Excise
Duty. Moreover there is a general scheme of excise exemption for
MSME brought out by the Ministry of Finance which covers most of
the items. Under this, units having turnover of less than Rs. 3
crore are eligible for concessional rate of Excise Duty. Moreover,
there is an exemption from Excise Duty for MSME units producing
branded goods in rural areas
Slide 37
Credit Facility to MSME Credit to micro, small and medium scale
sector has been covered under priority sector lending by banks.
Small Industries Development Bank of India (SIDBI) has been
established as the apex institution for financing the MSME.
Specific schemes have been designed for implementation through
SIDBI, SFCs, Scheduled Banks, SIDCs and NSIC etc. Loans upto Rs. 5
lakhs are made available by the banks without insisting on
collaterals. Further Credit Guarantee Fund for micro, small and
medium enterprises has been set up to provide guarantee for loans
to MSME up to Rs. 25 lakhs extended by Commercial Banks and some
Regional Rural Bank.
Slide 38
Policies and Schemes for Promotion of MSME Implemented by State
Governments All the State Governments provide technical and other
support services to small units through their Directorates of
Industries, and District Industries Centres. Although the details
of the scheme vary from state to state, the following are the
common areas of support. (i) Development and management of
industrial estates (ii) Suspension/deferment of Sales Tax (iii)
Power subsidies (iv) Capital investment subsidies for new units set
up in a particular district (v) Seed Capital/Margin Money
Assistance Scheme (vi) Priority in allotment of power connection,
water connection. (vii) Consultancy and technical support
Government of India runs a scheme for giving National Awards to
micro, small and medium scale entrepreneurs providing quality
products in 11 selected industry groups of consumer interest. The
winners are given trophy, certificate and a cash price of Rs.
25000/- each.
Slide 39
District Industries Center The concept of District Industries
Center came during the year 1977, when Government of India
announced the new Industrial policy on 23.12.1977. It laid special
stress on the development and promotion of small scale, village and
cottage industries. In each district, one agency was created to
deal with all requirements of small and village industries.
Slide 40
Up to1991, 422 DICs were in operation in the country, almost
one for each district. These DICs have assisted more than 1.5 lakh
unit generating employment for more than 10.3 lakh persons. Till
March 31st 1998, 422district industries centres(DICs) have been set
up covering 431 districts of country leaving out the metropolitan
cities and some new districts.
Slide 41
Objective of DIC To develop entrepreneur skills of people. To
motivate for self employment. To providing all the necessary
facility in one roof. To reduce regional imbalance of development.
To Cheek in migration
Slide 42
Functions of DIC Infrastructure Assistance to Entrepreneurs.
Recommendation for loans from financial Institutions & banks.
Implementation of Incentives Scheme Inspection and recommendation
of Investment Employment Generation Programmes Special Component
Plan (SCP) and Tribal Sub Plan (TSP)Implementation and Monitoring
of Special Component Plan (SCP) and Tribal Sub Plan (TSP) schemes
to provide assistance to the SC and ST; Entrepreneurship
development and Awareness
Slide 43
SISI : Small Industries Service Institute The small Industries
Service Institute (SISI) are the field offices of Small Industries
Development Organisation (SIDO), Ministry of Small Scale
Industries, Govt. of India, set up for the promotion and
development of Small Scale Industries in the State in the early
fifties. This Institute provides support / services to the State
Government as well as co-ordinates various activities at the state
level for promotion and development of small scale industries.
Slide 44
Functions of SISI To assist existing and prospective
entrepreneurs through technical and managerial counseling such as
help in selecting the appropriate machinery and equipment, adoption
of recognized standards of testing, quality performance etc;
Conducting EDPs all over the country; To advise the Central and
State governments on policy matters relating to small industry
development; To assist in testing of raw materials and products of
SSIs, their inspection and quality control; To provide market
information to the SISIs; To recommend SSIs for financial
assistance from financial institutions; To enlist entrepreneurs for
partition in Government stores purchase programme; Conduct economic
and technical surveys and prepare techno-economic feasible reports
for selected areas and industries. Identify the potential for
ancillary development through sub-contract exchanges; Organize
seminars, Workshops and Industries Clinics for the benefit of
entrepreneurs.
Slide 45
EDII The Entrepreneurship Development Institute of India (EDI),
an autonomous body and not-for-profit institution, set up in 1983,
is sponsored by apex financial institutions, namely the IDBI Bank
Ltd, IFCI Ltd. ICICI Ltd and State Bank of India (SBI). The
Institute is registered under the Societies Registration Act 1860
and the Public Trust Act 1950. EDI, an autonomous institution set
up in 1983 as a pioneering institute for Entrepreneurship
Development and Training in India and around the globe.
Slide 46
The driving values at the Institute are innovation,
experimentation, risk-taking, inclusiveness, thinking out of the
box and to offer need based & socially relevant solutions. EDI
conducts several training programmes both national and
international, implements projects for the state governments,
central government and international organisations, and offers two
unique Post Graduate Programmes under its Centre for
Entrepreneurship Education & Research.
Slide 47
NEISBUD The National Institute for Entrepreneurship and Small
Business Development is a premier organisation of Ministry of
Micro, Small and Medium Enterprises engaged in training,
consultancy, research, etc. in order to promote entrepreneurship.
The major activities of the Institute are Training of Trainers,
Management Development Programme, Entrepreneurship-cum-Skill
Development Programme, Entrepreneurship Development Programme and
Cluster Intervention. The Institute has trained more than 2.98 lakh
trainees including 3,000 persons from more than 125 countries till
31 st July, 2014
Slide 48
Objectives of NEISBUD NIESBUD is an apex body established by
Ministry of Micro, Small & Medium Enterprises, Government of
India. The Objectives are as follows:- To evolve standardised
materials and processes for selection, training, support and
sustenance of entrepreneurs, potential and existing. To
help/support and affiliate institutions/organisations in carrying
out training and other entrepreneurship development related
activities. To serve as an apex national level resource institute
for accelerating the process of entrepreneurship development
ensuring its impact across the country and among all strata of the
society. To provide vital information and support to
trainers,promoters and entrepreneurs by organising research and
documentation activities relevant to entrepreneurship development
To train trainers, promoters and consultants in various areas of
entrepreneurship development To offer consultancy
nationally/internationally for promotion of entrepreneurship and
small business development. To provide national/international
forums for interaction and exchange of experiences helpful for
policy formulation and modification at various levels. To share
international experience and expertise in entrepreneurship
development. To share experience and expertise in entrepreneurship
development across national frontiers.
Slide 49
NEDB Objectives : The main objective of the National
Entrepreneurship Development Board (NEDB) Scheme is promotion of
entrepreneurship for encouraging self-employment in small scale
industries and small business. The scheme covers the following
activities :- (i) To identify and remove entry barriers for
potential entrepreneurs (first generation and new entrepreneurs)
including study on entrepreneurship development. (ii) To focus on
existing entrepreneurs in micro, tiny and small sector and identify
and remove constraints to survivals, growth and continuously
improve performance. (iii) To facilitate the consolidation, growth
and diversification of existing entrepreneurial venture in all
possible ways. (iv) To support skill upgradation and renewal of
learning processes among practising entrepreneurs and managers of
micro, tiny, small and medium enterprises. (v) To sensitise to
support agencies in the area of entrepreneurship about the current
requirement of growth. (vi) To act as catalyst to institutionalise
entrepreneurship development by supporting and strengthening state
level institutions for entrepreneurship development as most
entrepreneurship related activities take place at the grass root
level and removing various constraints to their effective
functioning. (vii) Setting up of incubators by entrepreneurship
development institutions and other organisations devoted to the
promotion of entrepreneurship development.
Slide 50
Sources of finance Long Term: The sources of long-term finance
refer to the institutions or agencies from, or through which
finance for a long period can be procured. (a) Capital Market (b)
Special Financial Institutions (c) Mutual Funds (d) Leasing
Companies (e) Foreign Sources (f) Retained Earnings Short Term
:
Slide 51
Capital Market Capital market refers to the organisation and
the mechanism through which the companies, other institutions and
the government raise long-term funds. 1. Equity Capital (Issue of
Ordinary Shares) The company sells shares in the business to raise
money Dividends may be paid to the shareholders out of the profits
each year No interest has to be paid on the money raised Each new
shareholder has a say in the running of the company
Slide 52
Special Financial Institution(SFI) for long term loans The loan
and interest is paid back in equal instalments over the length of
the loan A number of special financial institutions have been set
up by the central and state governments to provide long-term
finance to the business organisations and subscribe to their share
and debentures
Slide 53
Industrial Finance Corporation of India (IFCI), Industrial
Investment Bank of India (IIBI),Industrial Credit and Investment
Corporation of India (ICICI), Industrial Development Bank of India
(IDBI), Infrastructure Development Finance Company Ltd.
(IDFC),Small Industries Development Bank of India (SIDBI)etc
Slide 54
Leasing A firm agrees with a financial institution to pay an
agreed sum of money each month in eturn for the use of an asset The
firm never owns the asset The firm may end up paying more in the
long term than the asset is worth Leasing facility is usually
provided through the mediation of leasing companies who buys plant
and machineries from manufacturers and rent it for specified time
period. For this purpose a proper lease agreement is made between
the lessor (leasing company) and lessee (the company hiring the
asset).
Slide 55
Foreign Sources Foreign Sources also play an important part in
meeting the long-term financial needs of the business in India.
These usually take the form of (1) external borrowings; (2)foreign
investments and; (3) deposits from NRIs.
