Small business enterprises , This is the 11 class business studies notes, easy explanation with simple words, and easy to understand notes, You can purchase this notes, perhaps this notes help you.
Types of Small Scale Industries NSIC
(Govt. Institution Supporting Small Business)
– Manufacturing Micro Enterprises
– Supplies imported machines and raw
– Manufacturing Small Enterprises
materials to small industries on easy
– Manufacturing Medium Enterprises hire-purchase schemes
– Service Micro Enterprises – It exports the products of small units
–
–
Service Small Enterprises
Service Medium Enterprises
– Provides mentoring & advisory services Brain Map
– Creating awareness upgradation of
– Cottage Enterprises technology
– Village Enterprises – develop software technology parks &
technology transfer centres
Role of 5SI in Socio-economic DIC
Development of India (Govt. Institution Supporting Small Business)
– Employment – acts as a focal point of industrialisation
of district
– Variety of product
– identifies projects for setting up SSI
– Export Small units
– Balanced regional development – Provide marketing support to SSI
Business
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– Complementary to large scale industries – act as a link between entrepreneurs
– Low cost of production and banks of district
– Quick and timely decisions – provide assistance to entrepreneurs to
procure machinery & raw material, raw
CHAPTER 8
– Development of entrepreneurship
material, loans
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Role of Small Scale Business in Other Govt. Incentives to Hilly Backward
Rural India and Rural Areas
– Provides employment in rural areas – Power at concessional rates
– Improve economic condition – Tax holidays
– Prevent migration – Land and water
– Utilisation of local resources – Octroi
– Equitable distribution of national income – Protective measures
– Balanced regional development – Marketing assistance
SMALL BUSINESS AND ENTERPRISES
– Opportunities for artisans – Finance
– Sales tax
XI – Business Studies
, Entrepreneurship
Characteristics of Entrepreneurship Development MNEMONIC : SOIL R
Systematic Organisation Innovation Law and Risk taking
Activity of Production (I) Purposeful Activity (R)
(S) (O) (L)
Need for Entrepreneurship Schemes & ways to fund startup by
Govt. of India IPR Types
– Contribution to GDP
– No inspection
– Capital formation Copyright
– Income tax exemption
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– Generation of employment
– Capital gain tax exemption
– Generation of business opportunities for others – Benefit in patent & intellectual property Trademarks
– Improvement in economic efficiency – Funding schemes for startup
– Increasing scope of economic activities
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Geographic indications
Funding options to raise capital
– Impact on local communities
– Fostering the spirit of exploration, – Government offers
experimentation & daring Patents
– Self funding/boot straping
– Crowd funding
– Angel investment Design
– Venture capital
– Funding from incubaters
Plant variety
accelerators
– Winning contest funds
– Bank loans Semi-conductors integrated
XI – Business Studies
– Non-banking financial companies circuits layout design
– Quick money
,Entrepreneurship Development (ED):
Entrepreneur Entrepreneurship Enter prise
Person Process Outcome
Refers to the Refers to the process Refers to the out
person who setup of setting up one's come of entre
his own business own business preneurship
unit unit
Meaning: Entrepreneurship is a systematic, purposeful and creative
activity performed by an entrepreneur to translate business idea into
desired monetary results.
(1) Systematic Activity : It is not a spontaneous activity one needs
special knowledge to complete this activity in a disciplined
manner.
(2) Lawful and purposeful activity: It is related to the establishment
of a lawful and purposeful business. It aims at providing value
(goods & services) to the buyers, consideration to the investors
and profit to the entrepreneur.
(3) Innovation: Under it, new combinations of different modes of
production are created like new technique, new products, new raw
material & new marketing methods.
(4) Organisation of Production: Under this, new methods of
production are adopted.
(5) Risk-Taking: It is surrounded by risk on every side. Hence risk
can't be separated from entrepreneurship.
Need for Entrepreneurship: The need for entrepreneurship in
indicated from the following facts —
(1) Initiating the process of development :- The establishment of
more and more business reflects the development of a country.
(2) Sustaining the development :- Rate of development is
sustained (maintained) with the help of entrepreneurship.
(3) Providing employment opportunity :- Entrepreneurship not
only provides the scope for self-employment but also offers
employment to large number of people.
142 XI – Business Studies
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,(4) Social benefits:- By making optimum utilisation of resources,
they save scare resources of society.
Process of Entrepreneurship Development: Start-up India
Scheme: Start-up India is an action plan to develop an eco-system to
promote and nurture entrepreneurship across the country.
Meaning/Definition of Start-up: Start-up is a business enterprise is
the form of private ltd. Company, partnership, limited liability
partnership or sole proprietor, registered in India, which was started
less than five years ago and have annual turnover of less than 25 crore.
STARTUP INDIA
The startup India scheme is a flagship initiative of the Government of
India with an objective to carve a strong ecosystem for nurturing
innovation and startups in the country.
The scheme specifically aims to:
1. Develop entrepreneurial culture and inculcate entrepreneurial
values in the society at large
2. Create awareness about how to be an entrepreneur and its
advantages as a source for earning a living.
3. Encourage more dynamic startups by motivating educated youth
into entrepreneurship
4. Support early phase of entrepreneurship development
5. Involve under represented groups like women, SC and ST etc. to
achieve inclusive & sustainable development
As per the notification dated February 17, 2017 issued by Ministry
of Commerce and Industry, a startup means
• an entity incorporated or registered in India
• not older than 5 years
• Annual turnover does not exceed `25 crore in any preceding
year.
• Working towards innovation, development or commercial-
isation of product/service/process driven by technology/IPR
and patents
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, Startup India: Action Points
1. Simplification and hand holding:- making compliance for
startups simple & flexible
2. Legal support and fast track patent examination:- so that first
mover advantage can be undertaken easily.
3. Easy exit:- In case of business failure, the exit process has been
made easy so that capital & other resources can be relocated to
other productive areas.
4. Harnessing private sector for incubator setup:- To ensure
professional management of government funded incubators, PPP
mode is being planned.
5. Tax exemptions:- The profits of startup initiatives are exempted
for income tax for a period of three years.
Any enterprise formed by splitting up or reconstruction of a
business already is existence shall not be considered as start-up.
Various schemes and ways to fund start-up by Government
of India:- There are about 67 schemes launched by Govt. of India for
giving wings to youth entrepreneurs.
Common Schemes offered by government are :
1. No inspection : No inspection would be carried out at start ups for
3 years.
2. Registration: Start up get registered in available for first three
years only after obtaining a certificate from inter-ministerial board.
3. Income Tax Exemption: Income Tax exemption is available for
first three years only after obtaining a certificate from inter-
ministerial board.
4. Capital gain Tax exemption: The start-up can claim capital gain
tax exemption for first three year.
5. Benefit in patent and Intellectual property : For patent cost,
start-up can claim an 80% rebate.
6. Funding Schemes for start-up: Govt. has announced `10,000
crore fund for new startups and `500 crore for credit guarantee
scheme.
144 XI – Business Studies
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