Entrepreneurial Decision Process
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Entrepreneurs need to make various decisions for these business he/she needs good
decision making skills because of the Market problem and defending the market situation.
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Entrepreneurs in decision making the identity alternative and then select the best course
of action to solve specific problems in the business.
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The entrepreneur needs to follow the steps of the entrepreneurship decision process.
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Idea Generation: every new venture begins with an idea.
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Opportunity Evaluation: this is the step where you ask the question of whether there is an
opportunity worth investing in. Investment is principally capital, whether from individuals in
the company or from outside investors, and the time and energy of a set of people.
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Planning: Once you have decided that an opportunity, you need a plan for how to capitalize
on that opportunity. A plan begins as a fairly simple set of ideas, and then becomes more
complex as the business takes shape. In the planning phase you will need to create two
things: strategy and operating plan.
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Operating plan
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Company timeline
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Staffing plan
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Budget
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Financing plan
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Company formation/launch: Once there is a sufficiently compelling opportunity and a plan,
the entrepreneurial team will go through the process of choosing the right form of corporate
entity and actually creating the venture as a legal entity.
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Growth: After launch, the company works toward creating its product or service, generating
revenue and moving toward sustainable performance. The emphasis shifts from planning to
execution. At this point, you continue to ask questions but spend more of your time carrying
out your plans.
Execution
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Market research
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Marketing
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Business development
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Forecasting
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Sales planning
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R&D management
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Operations management
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People management
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Process and infrastructure
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Budgeting
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Financing
Micro, Small and Medium Enterprises
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The Ministry of Micro, Small and Medium Enterprises, a branch of the Government of India,
is the apex executive body for the formulation and administration of rules, regulations and
laws relating to micro, small and medium enterprises in India.
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The Minister of Micro, Small and Medium Enterprises is Narayan Rane.
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The Government of India has enacted the Micro, Small and Medium Enterprises
Development (MSMED) Act, 2006 in terms of which the definition of micro, small and
medium enterprises is as under:
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Enterprises engaged in the manufacture or production, processing or preservation of goods
as specified below:
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A micro enterprise is an enterprise where investment in plant and machinery does not
exceed Rs. 25 lakh;
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A small enterprise is an enterprise where the investment in plant and machinery is more
than Rs. 25 lakh but does not exceed Rs. 5 crore;
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A medium enterprise is an enterprise where the investment in plant and machinery is more
than Rs.5 crore but does not exceed Rs.10 crore.
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Enterprises engaged in providing or rendering of services and whose investment in
equipment (original cost excluding land and building and furniture, fittings and other items
not directly related to the service rendered or as may be notified under the MSMED Act,
2006 are specified below.
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A micro enterprise is an enterprise where the investment in equipment does not exceed Rs.
10 lakh;
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A small enterprise is an enterprise where the investment in equipment is more than Rs.10
lakh but does not exceed Rs. 2 crore;
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A medium enterprise is an enterprise where the investment in equipment is more than Rs. 2
crore but does not exceed Rs. 5 crore.
Features of MSMEs
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MSMEs work for the welfare of the workers and artisans. They help them by giving
employment and by providing loans and other services.
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They promote the development of entrepreneurship as well as up-gradation of skills by
launching specialized training centers for the same.
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They support the up-grading of developmental technology, infrastructure development,
and the modernization of the sector as a whole.
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MSMEs are known to provide reasonable assistance for improved access to the domestic
as well as export markets.
Role of MSMEs in Indian Economy
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MSMEs produce and manufacture a variety of products for both domestic as well as
international markets.
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They have helped promote the growth and development of khadi, village, and coir
industries.
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MSMEs have played an essential role in providing employment opportunities in rural
areas.
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They have helped in the industrialization of these areas with a low capital cost compared
to the large industries.
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Acting as a complementary unit to large sectors, the MSME sector has enormously
contributed to its socio-economic development.
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MSME covers only manufacturing and service industries. Trading companies are not
covered by the scheme.
Who can Apply for MSME Registration?
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MSME registration or Udyog Aadhaar can be obtained by any type of business entity.
Proprietorships, Hindu Undivided Family, Partnership Firm, One Person Company, Limited
Liability Partnership, Private Limited Company, Limited Company, Producer Company, any
association of persons, co-operative societies or any other undertaking can obtain MSME
registration in India.
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Small businesses having MSME registration enjoy various benefits under the Micro, Small
and Medium Enterprises Development Act, 2006. Hence, it is recommended that all small
businesses obtain MSME registration or Udyog Aadhaar after starting up.
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After registration, any enterprise becomes qualified to reap the benefits offered under the
MSMED Act. Some of the benefits from Central Government include:
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easy sanction of bank loans (Priority sector lending),
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lower rates of interest,
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excise exemption scheme,
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the exemption under Direct Tax Laws.
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Some of the benefits provided by the State Government for MSMEs include
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the tax subsidies,
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power tariff subsidies,
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capital investment subsidies and other support.