PE S Institute of Technology - Bangalore South Campus
Department Mechanical Engineering
Management and Entrepreneurship – 10AL51
Internal Assessment III Solutions
1. What are the functions of Entrepreneur? Explain.
Solution
According to Joseph Schumpeter “ An Entrepreneur in an advanced economy is an
individual who introduces something new” , this can be New Method or Process of
Manufacturing, a new System of Communication, New Product or Service, New Machines
And Equipment, New Ways of Managing Business, or even creating a new business Model.
Moreover an entrepreneur is one who can perform various tasks of business by way of
leadership, delegation and professional approach to entire range of business processes
useful in running a innovative or new organization in profitable manner.
Further an entrepreneur capitalizes on policies and scheme of government and investors
with innovative activities like, A newly patented technology, A New IT Program, recycling,
remanufacturing, new and better sustainable products. In this context Function of
Entrepreneur is classified into three sets, these are:
1. Primary Functions
2. Secondary Functions
3. Country Specific Functions
I Primary Functions
1. Planning
2. Organizing,
3. Decision Making,
4. Controlling
5. Innovation,
6. Risk Management,
7. Leadership Role,
II Other Functions
1. Expansion Of Enterprise
2. Product Diversification
3. Relationship With Employee & Employers
4. Talking Labor Problems
5. Coordination with External Agencies
III
Function Important For Developing Country (INDIA)
1. Management of Scarce Resource
2. Dealing With Public
3. Engineering
4. New Product Development
5. Opportunities
6. Marketing
7. Management
8. Customer Relations
2. Explain the role of entrepreneur in economic development.
An entrepreneur is person that finds, evaluates and develop an opportunity by overcoming the
problem that arise in developing and implementing something new by way of Innovation, this is
crucial in economic development of a country like India which faces very conflicting problems
entrepreneurs like cleanliness, over crowded cities, safe drinking water, basic infrastructures
and medical facilities. Our government and society has to encourage entrepreneurs to adopt to
new ways of solving the problem by providing financial and other limited resources for
economic growth of the country.
An entrepreneur has to take responsibility of solving the problems, and equip himself oe herself
with qualities like Self Directed to achieve Goals, Risk Taker, Able to Identify or create an
opportunity, Planner, Stress Taker, Ability to deal with uncertainties, Independent, Flexible, Self
Confident, Motivator.
Hence an entrepreneur can contribute to economic growth of country in following ways
1. IMPORTS: An Entrepreneur can reduce burden of Foreign Exchange, by reducing import
of costly and capital goods from other countries by making products in India.
2. EXPORTS: A person can explore new markets for his or her products to earn foregn
exchange, helping increasing cash reserve into the country.
3.
4.
5.
6.
COST : Reducing the cost of products and services
EFFICIENCY: Efficient treatment of waste and recycling of goods
EMPLOYMENT Generating Employment and economic prosperity of workers and staff.
SKILL DEVELOPMENT Encouraging skill development of employees and staff for a
competitive workforce at world level.
3. Briefly explain about objectives and role of SSI.
The basic objective underlying development of a small scale industry is increase in supply of
manufactured goods, promotion of capital formation,, development of indigenous
entrepreneur talent, skills and to create wider employment opportunities.
In addition to these objectives of SSI includes socio economic development goals such as
decentralization and dispersal of manufacturing activities from metropolitan areas to rural
areas, reduction of regional economic imbalances within the country.
In Indian economy, cottage and small scale industries have significant role to play. With
increase in pace of industrialization and sophistication, a small scale industry can efficient ly
develop a new production method, processes and product in short time .
with up gradations, professional business management, new skill development, and financial
support from government and partners. Hence in nut shell the role of SSI can be summarized
as follows
4. W
r
4
.
4. Write short notes on:
a. Government policy towards SSI
b. Globalization on SSI effect WTO/GATT
c.
SOLUTION
GOVERNMENT POLICY TOWARDS SSI
The basic objective underlying development of a small scale industry is increase in
supply of manufactured goods, promotion of capital formation,, development of
indigenous entrepreneur talent, skills and to create wider employment opportunities.
In addition to these objectives of SSI includes socio economic development goals such
as decentralization and dispersal of manufacturing activities from metropolitan areas to
rural areas, reduction of regional ecomonic imbalances within the country. Thus
government has numerous policies towards development of SSI, some of these are:
1. Equity Participation Upto 25% by Foreign or India Companies
2. Relicensing of various sectors
3. Promote with Finance, Technology, Marketing, Land banks, capital Equipment
Finance and Lease of POWER, ELECTRICITY
4. Link Backward areas and Classes to national and International Economic
Development
5. Promote Innovation, Export and International and National Competitiveness
6. Promotes (SUBSIDIES) Creating Wealth
7. Modernization, Tapping Resources.
8. Import Substitution consultancy to SSI by opening Tool ROOMS , Design
Institutions.
Globalization on SSI effect WTO/GATT
Globalization is the process of integration of the world into one huge market. It provides
several things to several people with removal of all trade barriers among countries.
Globalization happens through three channels: trade in goods & services, movement of
capital and flow of finance. The small scale sector is a vital constituent of overall
industrial sector of the country. The small scale sector forms a dominant part of Indian
industry and contributing to a significant proportion of production, exports and
employment. Therefore, there is a need to study and analyze the impact of globalization
on Indian Small Scale Industries.
Globalization in India is generally taken to mean ‘integrating’ the economy of the country
with the world economy. The real thrust to the globalization process was provided by
the new economic policy introduced by the Government of India in July 1991 at the
behest of the IMF , WTO, the World Bank. All countries have developed a framework
on globalization under GATT(General Agreement on Trades and Tariffs) to protect their
Small Industries. The formation of General Agreement on Tariffs and Trade(GATT),
International Monetary Fund and the concept of free trade has boosted globalization.
The process of globalization is an inevitable phenomenon in human history which has
been bringing the world closer since the time of early TRADE and exploration, through
the exchange of goods, products, information, jobs, knowledge and culture.
5. What is the role of Ancillary Industry and Tiny Industry under SSI?
Small scale sector is defined in terms of financial investments ceilings on the original
value of the installed plant and machinery. Small Scale Industrial Undertakings An
industrial undertaking in which financial investment in fixed assets in plant and
machinery whether held on ownership terms or on lease or on hire-purchase does not
exceed Rs.100 lakhs (Rupees One Hundred lakh only)
Ancillary Industrial Undertakings
An industrial undertaking which is engaged or is proposed to be engaged in the
manufacture or production of parts, components, sub-assemblies, tooling or
intermediates, or the rendering of services and the undertaking supplies or renders or
proposes to supply or render not less than 50 per cent of its production or services, as
the case may be, to one or more other industrial undertakings and who fixed assets
investment in plant and machinery whether held on ownership terms or on lease or on
hire-purchase, does not exceed Rs.100 lakhs (Rupees One Hundred lakh only).
Tiny Enterprises
Limits in plant and machinery in respect of tiny enterprises is Rs.25 lakhs (Rupees
Twenty Five lakhs only) irrespective of location of the unit. Small Scale Service &
Business (Industry related) Enterprises (SSSBEs) Industry related service/business
enterprises with Limit upto Rs.10 lakhs in fixed assets, excluding land and building, are
called Small Scale Service & Business Enterprises (SSSBEs).
6. Briefly explain about supporting agencies of Government for SSI.
Institutions And Their Role - 1
TEKSOK
FOR PRODUCT
DESIGN &
DEVELOPMENT
KIADB
(Factory
Building)
KSSIDC
(Export
Promotions&
Consultancy)
KSIMC
Technical Consultancy Services Organisation of Karnataka
(TECSOK), is a multidisciplinary technical, industrial and
management consultancy organization set up.
The Karnataka Industrial Areas Development Board [KIADB] is a
statutory body, constituted under Sec.5 of Karnataka Industrial
Areas Development
Karnataka State Small Industries Development Corporation Ltd.
(Government of Karnataka Undertaking) ::
Karanataka Small Industries Marketing Corporation
(After Setting of Production Operations)
DIC
District Industries Center (DIC)
In each district one agency to deal with all requirements of small
and village Industries. This is called “District Industries Centre”
for investment promotion at the grassroot level such as a
organizing seminars workshops, extending support for trade fairs
and exhibitions organized by various Industries associations.
(Trade Registrations, Office Address Registrations)
NSIC
National Small Industries Corporation
National Small Industries Corporation Limited is a PSU
established by the Government of India in 1955 It falls under
Ministry of Micro, Small & Medium Enterprises of India.
Promotes MSME.(Raw Material Support Also)
SIDBI
LOANS based
on detailed
project report
KSFC
(LOANS)
Small Industries Development Bank of India is a nonindependent financial institution aimed to aid the growth and
development of micro, small and medium-scale enterprises in
India. Set up on April 2, 1990 through an act of parliament
KSFC is one of the fast track term lending financial institutions in
the country with assistance to over 1,68,152 units amounting to
nearly Rs 13,136 crore over the last 55 years in the State of
Karnataka. KSFC is one of the robust and professionally managed
State Financial Corporations.
7. Explain the about Institutional support and mention various organizations doing
the same.
SOLUTION
New Entrepreneurs and Business Owners Should Follow a Systematic Approach to
get Institutional Support. New Entrepreneurs and Business Owners Should Follow a
Systematic Approach to get Institutional Support. Different Schemes and institutions
are set up to ud are developed to provide assistance to MSME and SSI some of
them are as follows:

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

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TECKSOK; (FOR DESIGN AND MARKET FEASIBILITY)
KIADB; (FOR PROJECT AND LAND)
KSSIDC; (FOR FUNDING AND MARKETING SUPPORT)
KSIMC;( Marketing and Investment Planning)
DIC Single Window Agency LISCENSES and Registrations)
SISI;
NSIC; (RAW MATERIAL and Vendor Development)
SlDBI; (BANKING)
KSFC. (EXPORTS AND CLUSTERS)
8. Write short notes on:
a. KIADB
b. KSFC
c.
SOLUTIONS
The Karnataka Industrial Areas Development Board [KIADB] is a statutory body,
constituted under Sec.5 of Karnataka Industrial Areas Development Act, [KIAD Act] –
1966, which provides for expeditious acquisition of lands for industrial and infrastructure
purposes. KIADB, besides forming layouts with all infrastructure facilities for promotion
of industries, also acquires lands in favour of various State & Central Govt.
Departments/Organizations and Single Unit Complexes, for setting up their projects on
standalone basis. KIADB has so far developed 148 industrial areas in 28 districts of the
State. A typical industrial area developed by the Board will have following infrastructure
facilities:
 Approach roads and internal roads with storm water drains
 Power supply and street lighting, Water supply, Power Sub-Stations
 CETP/STP
 Technical Training Centers and R&D centers
 Common Facilities Centers to accommodate Banks, Post Offices, Telephone
Exchanges, Dispensaries and Canteens, HOTELS & Hospitals
 Housing tenements to provide housing facility to the labour force working in the
industrial units
KSFC
KSFC is one of the fast track term lending Non Banking Financial institutions in the
country with assistance to over 1,68,152 units amounting to nearly Rs 13,136 crore over
the last 55 years in the State of Karnataka. KSFC is one of the robust and professionally
managed State Corporations.The department will have to focus and identify valuable
vacant landed assets in the prime localities, to start with Bangalore city, owned by
various government departments / governmental agencies, PSUs, Registered Societies,
Trust and private parties with whom joint development of the property can be explored.
Initially, it is proposed to explore joint development in the properties owned by the
government departments / agencies / societies etc., and later on, depending upon the
situation,
joint development with the private parties will be explored. Once the land is finalised, for
joint development, Corporation would make financial tie-up with ILFS/HUDCO / HFIs/
Commercial Banks and take lead in property development and share the commercial
space / revenue, on mutually acceptable terms and Corporate undertaking after
studying the economic / viability. The department will also explore the possibilities of
joint infrastructure development ventures for development of SEZs, IT / BT Parks /
Commercial Malls etc., The department will also explore the possibilities of joining
hands with BMP / BDA / KEONICS / KIADB / KSSIDC in their existing infrastructure
development ventures.