b.com (hons) - development entrepreneurship unit 3

8/6/2019 B.com (Hons) - Development Entrepreneurship Unit 3

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www.altius.ac.inDevelopment of Entrepreneurship By: Samta RathoreSamta RathoreSamta RathoreSamta Rathore

UNIT 3

(a) Project Report-Evaluation of selected Process. DetailedProject report, Preparation of main part of project report

pointing out necessary & viability.

(b) Selecting the form of Organization. Meaning and

characteristics of sole Proprietorship, Partnership andCooperative committees elements affecting selection of aform of an organization.

(c) Economic management. Role of banks and financialinstitutions banking ,financial plans, working Capital-

evaluation and management, Keeping of accounts.


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WHAT IS A PROJECT ?????

An important and carefully planned piece ofwork, that is intended to build or produce

something new ,or to deal with a problem.


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VALUATION OF SELECTED PROCESS

Specify, select, refine, or modify project goals and

evaluation objectives.

Establish standards/criteria (performance measures) where

appropriate

Plan appropriate evaluation design

Select and/or develop data gathering methods


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Collect relevant data

Process, summarise , analyse relevant data

Contrast data with evaluation standards/criteria

Report and feedback results

Assess cost-benefit/effectiveness

Reflect (evaluate) the evaluation


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DETAILED PROJECT REPORT

Preparation of detailed project report is further

step in firming up the proposal. When an

investment proposal has been approved adetailed project report is prepared.


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DETAILED PROJECT REPORT


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PREPARATION OF MAIN PART OF PROJECT REPORT

1. Introduction

2. Product

Capacity

Chemistry of the Product

Specifications

Properties

Applications and Uses

3.Market Potential

Existing installed capacity and actual production for the last fiveyears.

New capacities under consideration/implementation

Demand pattern with specific reference to requirements in various

regions based on desk research and field survey.


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4.Process and Know-How

Description of different processes available.

Selection of the process for the project and the reason for the same.Selection of suitable know-how for the said project based ontechnical and economic evaluation from available data.

Prospective collaborator and terms of collaboration.

5.Plant & Machinery

List of imported/indigenous machinery

Broad specifications of the machinery

List of manufacturers of machinery

Critical items of the machinery


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6.Location

Actual site selection survey-Availability of raw material, electricity

,water and other infrastructural facilities.

7.Plot plan and building

Overall plot plan along with building plan

8.Raw materials

Raw material requirements and their specifications, availability and

sources imported and indigenous


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9.Utilities

Requirements of power ,water and others including fuel, steam ,

inert gas etc .,and other specifications.

10.Personnel requirement

Manpower requirement (top, middle and bottom level)

Organisational structure.

11.Capital Cost

Project cost-giving break up details

Marginal money for working capital in the project cost.


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12.Working Capital

Details of requirement of working capital and norms ,based onthe debt-equity ration and other financing norms followed byfinancial institutions.

13.Manufacturing Cost

Unit cost of Production Projected cost of Production for 10 years

14.Financial analysis

Profitability statement for 10 years Break even and sensitivity analysis

Payback Period

Projected balance sheet for 10 years


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15.Implementation schedule

Period and probable dates for project implementation


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FORM OF ORGANIZATION


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SOLE PROPRIETORSHIP

A sole proprietorship also known as a sole trader, or

simply proprietorship is a type ofbusiness entity which is

owned and run by one individual and where there is nolegal distinction between the owner and the business.


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HARACTERISTICS OF SOLE PROP.

1.Single Prop.

2.Unlimited Liability

3.Control & Management

4.Freedom in selection of business or industry

5.Individual Capital

6.No legal Formalities7.Limited Working Area

8.Profit and Loss

9.Existence of Business

10.Wilful start and End


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PARTNERSHIP

A partnership is an arrangement where entities and/or

individuals agree to cooperate to advance their interests.

In the most frequent instance, a partnership is formedbetween one or more businesses in which partners

(owners) co-labor to achieve and share profits or losses.


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CHARACTERISTICS OF PARTNERSHIP

Partnerships are relatively easy to establish.

With more than one owner, the ability to raise funds may be increased, bothbecause two or more partners may be able to contribute more funds and

because their borrowing capacity may be greater.

Prospective employees may be attracted to the business if given the incentiveto become a partner.

A partnership may benefit from the combination of complimentary skills oftwo or more people. There is a wider pool of knowledge, skills and contacts.

Partnerships can be cost-effective as each partner specializes in certainaspects of their business.

Partnerships provide moral support and will allow for more creativebrainstorming.


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JOINT STOCK COMPANY

A company which has some features of a corporation

and some features of a partnership. The company sells

fully transferable stock, but all shareholders have

unlimited liability.


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CO-OPERATIVE SOCIETY

A few persons willingly and collectively gatherown resources for their mutual help and

confidence. Thus,their own resources are

collected together sufficient to carry out thebusiness. Such an institution runs on theprinciple of one for all and all for one.


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ELEMENTS AFFECTING SELECTION

OF A FORM OF AN ORGANIZATION

1.Convenience in Formulation

2.Nature of Business

3.Area of Operations

4.Capital Resources

5.Limit of Liability


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6.Geographical Business Centre

7.Degree of Control

8.Extent of Risk

9.Duration of Business

10.Government Regulations


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11.Managerial Capacity

12.Legality

13.Continuity & Stability

14.Tax-Liability

b.com (hons) - development entrepreneurship unit 3

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