1. MAJOR ECONOMIC ACTIVITIES
BUSINESS
SERVICE
INDUSTRY

2. BUSINESS
In Business the product is procured, stored, displayed and sold to the customers directly.
Benefits:- Easy to start
Direct contact with customers
Can decide investment
No investment in Plant & Machinery
No investment in Equipments
Textile Shops, Grocery Shops, Stationery Stores, Medical Stores, Sanitary Wares Shops, etc

3. SERVICE
In Service enterprise the requirement of the customer is made with the help of equipments.
Benefits:- low risk, (low income)
Direct contact with customers
Low Investments
No stock of raw materials
Automobile Workshops, Service Stations, Tailoring Shops, Photostat, Photo studio, Colour labs etc

4. INDUSTRY
In an Industry the raw materials are turned to the finished goods by changing its properties or by assembling with the help of Plant & Machinery installed.
Benefits:- Can decide what to produce
Indirect contact with customers
Can distribute the product to the area needed
Can change the product according to the need of customers

5. MANUFACTURING ENTERPRISES
MSMED ACT 2006
ENTERPRISES
SERVICE ENTERPRISES
MANUFACTURING ENTERPRISES

6. CLASSIFIED ACCORDING TO INVESTMENT IN EQUIPMENTS
SERVICE ENTERPRISES
CLASSIFIED ACCORDING TO INVESTMENT IN EQUIPMENTS
MICRO : UP TO 10 LAKHS
SMALL : 10 LAKHS TO 2 CRORES
MEDIUM : 2 CRORES TO 5 CRORES
LARGE : ABOVE 5 CRORES

7. MANUFACTURING ENTERPRISES
CLASSIFIED ACCORDING TO INVESTMENT IN PLANT & MACHINERY
MICRO : UP TO 25 LAKHS
SMALL : 25 LAKHS TO 5 CRORES
MEDIUM : 5 CRORES TO 10 CRORES
LARGE : ABOVE 10 CRORES

8. MANUFACTURING ENTERPRISES

9. MANUFACTURING ENTERPRISES

10. MANUFACTURING ENTERPRISES

11. Role of Entrepreneurs in Economic Development.
Capital formation.
Generation of employment.
Improvement in per capita income.
Reduces concentration of wealth.
Balanced regional development.
Resource mobilization.
Improvement in standard of living.
National self-reliance.
Harnessing natural resources.
Backward and forward linkages.
Sense of purpose.

12. Stages of Entrepreneurial Process
Conducting Opportunity Analysis.
Developing the plan and setting up the company.
Acquiring financial partners and sources of funding.
Determining resources required and implementing the plan.
Scaling and harvesting the venture.

13. HOW TO SETUP AN ENTERPRISE Sources of new ideas. - consumers.
- Existing companies.
- Distribution channels.
- federal Government.
- Research and development.
Methods of generating ideas.
- Focus Groups.
- Brainstorming.
- Problem inventory analysis.

14. HOW TO SETUP AN ENTERPRISE
“Function of entrepreneurship is innovation”
Innovation of new product.
Innovation of new technology.
Innovation of new process of production methods.
Exploration of new markets.
Searching for the new sources and supply.
Innovation of industrial reconstruction method.

15. HOW TO SETUP AN ENTERPRISE ANALISE THE IDEA DETAILED MARKET SURVEY,
INFRASTRUCTURE NEEDED,
RAW MATERIALS,
TECHNICAL KNOW-HOW ,
PLANT & MACHINERY,
FUNDS, LABOUR, POWER
FUTURE DEMANDS ETC.

16. HOW TO SETUP AN ENTERPRISE Panchayat / Municipal licence
MSMED Part – I
Get a copy filed format and contact the concerned District Industries Centre for acknowledgement
Panchayat / Municipal licence
Power Connection
Bank Loan
NOCs from other agencies (KSPCB, F&B, Fire Force, DMO(H), Forest, Labour, BIS etc)

17. HOW TO SETUP AN ENTERPRISE Power Connection Agriculture Residential
LOCAL BODY LICENCE
Panchayat / Municipality
Green Channel Counter
Single Window Clearance Board
Power Connection
Agriculture
Residential
Industrial
Commercial

18. HOW TO SETUP AN ENTERPRISE BANK LOAN Business Plan / Project Report
Building plan, estimate
Quotations for P & M, Equipments, Electrifications
MSMED Part –I
Collateral Security
ID Proof etc.

19. The Business Plan The Business plan will take more than 200 to 300
hours to prepare, depending upon the experience
and knowledge of the entrepreneur as well as the
purpose it is intended to serve.
The detail outline of the business plan is as follows:
Introductory Page.
- Name and address of the business.
- Name and address of the entrepreneur.
- Nature of the business.
- statement of financing need.
- statement of confidentiality of report.

20. The Business Plan Executive summary.
- The summary should be at least four pages that summarizing the complete business plan.
Industry analysis.
- Future outlook and trends.
- analysis of competitors.
- Market segmentation.
- Industry forecasts.
Description of ventures.
- product.
- services.
- size of business.
- office equipment and personnel.
- background of entrepreneurs.

21. The Business Plan Production plan. - Manufacturing process.
- Physical plant.
- Machinery and equipment.
- Names of suppliers of raw materials.
Marketing plan.
- Pricing.
- distribution.
- promotion.
- product forecast.
Organizational Plan.
- From of ownership.
- Identification of partners or shareholders.
- Authority of principals.
- Management team background.
- roles and responsibilities of members of organisation.

22. The Business Plan Assessment of risk - evaluate weakness of business.
- New technologies.
- contingency plans.
Financial plans.
- pro forma income statements.
- cash flow projections.
- pro forma balance sheet.
- Break-even analysis.
- sources and applications of funds.
Appendix.
- Letters.
- Market research data.
- Leases or contract.
- Price lists from suppliers.

23. HOW TO SETUP AN ENTERPRISE MSMED Part - II
After trial run, Commercial production is started.
MSMED Part – II like Part –I
Apply for Eligible Subsidy / assistance etc.

24. email:- drajendrantvla@gmail.com
THANK YOU
THANK YOU
Rajendran D.,
Joint Director,
Dept of Inds & Commerce. -
PH: