SMALL ENTREPRENEURS

Entrepreneurship

“Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction of independence.”

-Robert Hisrich

“Entrepreneurship is an act of initiative, drive, commitment, diligence, perseverance, organized effort, and achievement outlook, to undertake some specific functions of performing productive activities and the capacity to bear and associated with the investment”.

-Economic Policy Paper on Entrepreneurship Development through Educational Reform-Bangladesh

Importance Of Entrepreneurship

• Central to the development of economy• The micro and small enterprises (MSEs)

constitute over 90% of total enterprises in most of the economies.

• Employment generation• MSE sector accounts for about 39% of the

manufacturing output and around 33% of the total export of the India.

Prerequisites of Entrepreneurship

• Creative mind, Risk taking capacity and Need to achieve.

• Support of infrastructural facilities and cultural acceptance & recognition.

SMALL ENTERPRENEURSHIP

A small business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations, partnerships or sole proprietorships. Small businesses are common in many countries, depending on the economic system in operation. Typical examples include: convenience stores, other small shops, hairdressers, tradesmen, lawyers, accountants, restaurants, guest houses, small-scale manufacturing etc.

OBJECTIVES

The basic objectives underline the development of small and medium scale industries are :

• The increase in the supply of manufactured goods

• The promotion of capital formation• The development of indigenous entrepreneurial

talents and skills• Creation of broader employment opportunities

ADVANTAGES There are numerous benefits to owning a small business. Below are listed

four benefits to entrepreneurship.• Opportunity to Gain Control Owning a business provides the entrepreneurs the independence and

the opportunity to achieve what is important to them. Entrepreneurs want to make their own decisions in their lives and use their business to do so. There are intrinsic rewards of knowing they are the driving forces behind their business. They make the decisions behind the direction the company travels and their work schedules.

• Opportunity to Make a Difference The amount of social entrepreneurs is on the rise. These people start

their businesses because they see an opportunity to make a difference in a cause that is important to them. They seek to find innovative solutions to some of society's most pressing and most challenging problems. Entrepreneurs continue to find new ways to combine their concerns for social issues and their desire to earn a living.

• Opportunity to Reach Full Potential Many people find their work boring, unchallenging and unexciting.

However, to many entrepreneurs, work is much more enjoyable. An entrepreneur's business can be the instrument for self-expression and self-actualization. Owning a business challenges the entrepreneur's skills, abilities, creativity and determination. There is no organizationally created 'glass ceiling' to determine how high a business owner can rise.

• Opportunity to Reap Impressive Profits Although not the primary motivating factor, the profits their

companies can make are important in their decisions to launch businesses. Owning a business is usually the best way to achieve the accumulation of wealth. Self-employed individuals are four times more likely to become millionaires than those who work for someone else.

Problems• Small businesses often face a variety of problems related to

their size.• A frequent cause of bankrupty is undercapitalization. This is

often a result of poor planning rather than economic conditions - it is common rule of thumb that the entrepreneur should have access to a sum of money at least equal to the projected revenue for the first year of business in addition to his anticipated expenses.

• Another problem for many small businesses is termed the 'Entrepreneurial Myth' or E-Myth. The mythic assumption is that an expert in a given technical field will also be expert at running that kind of business. Additional business management skills are needed to keep a business running smoothly.

Sources of funding

• Self-financing by the owner through cash, equity loan on his or her home, and or other assets. • Loans from friends or relatives • Grants from private foundations • Personal Savings • Private stock issue • Forming partnerships• Angel investors• Banks • SME finance, including Collateral based lending and Venture capital, given sufficiently sound

business venture plans

• Type Daily : Newspaper• Format : Broadsheet • Owner : DB Corp Ltd. • Founded :1958• Political alignment : Liberal • Language : Hindi• Headquarters : Bhopal • Circulation :2,268,042 Daily

GIRISH AGARWALDirectorBhaskar Group

• Girish Agarwal an indefatigable innovator, business visionary and peerless team-builder, is Director with the DB Corp Ltd. The group is a 2400 crore media house, 'the largest read newspaper Group of India' with more than 25.3 Million readers. DB Corp Ltd publishes Dainik Bhaskar (leading Hindi newspaper), Divya Bhaskar (largest circulated Gujarati newspaper) and DNA (the second largest read English newspaper in finance capital of India; Mumbai).

• Girish Agarwal has been instrumental in making the brand 'Bhaskar' into the media powerhouse it is today. He played pivotal role in making inroads into the Gujarat newspaper market when he launched Divya Bhaskar. Girish Agarwal was the recipient of the 'Young Entrepreneur of the Year 2006' award by Ernst and Young in the IT, Communications and Entertainment category. He was received the Innovation for India Award for Business Innovation for Divya Bhaskar in 2006. The success was so exemplary that IIM Ahmedabad chose Agarwal's acuity and approach in relation to Divya Bhaskar as the subject of a case study.

• His biggest achievement till date was his role in the conceptualization and launch of DNA (Daily News and Analysis) three years ago; bringing in the combination of subtle thinking and strategizing genius reshaping the contours of the newspaper market in Mumbai. In last 10 years, Bhaskar has grown from a small 5 edition, single state newspaper with 3.5 million readers to a group with 8 daily newspapers, across 10 states and with 25.3 million readers.

• It also published 6 magazines and has the 4th Largest FM Radio network in India, with 17 FM stations under the brand – MYFM. Girish has now taken up the charge of spear heading the 2900 MW Power Project for the group. Girish's work philosophy pushes him to quickly accord credit to colleagues for diligence and out-of-the-box thinking. He follows Management by Walking Around a hands-on approach to operations.

• Whenever Dainik Bhaskar, a media group, enters a new market, it uses direct marketing to establish a leadership position from day one. Here is the story on the transformation that happened inside the organisation because of this strategy.

• In 1996, when we began transforming our group into a customer centric organization it was difficult for us to accept the fact that someone called the consumer exists and that he would henceforth have a greater influence in the way we publish the newspaper.

• To cite an instance, during the launch of the Chandigarh edition of the Dainik Bhaskar, the pre-launch customer preference survey showed that readers in that area preferred a newspaper in Hinglish (the spoken language, a mixture of Hindi and English) to pure Hindi.

• To gain popularity we had to adapt that language in the newspaper. So in this case the customers actually decided the language the edition would carry. This was a new experience for us, especially the journalists and editors, and had a huge impact on the organisation, its processes and its structure. Certain changes have now become a norm in our organisation

Pricing against the market• I strongly believe that the market is no one to set the prices. As

entrepreneurs engaged in the day-to-day running of the organisation, only we know the pros and cons of what price the customers will accept for our product, of how much we can take and how much we cannot.

• Pricing is ultimately the entrepreneur's decision based on the market affordability and the nature of his product. Take telecom rates as an example. An owner of a telecom company once told me that two and a half years ago, his company prepared a report, which said that if they priced below Rs X per minute the company will be doomed. Today even after selling at half that price the company is making three times more profit than what it was earning three years ago.

• There will be times when you may want to introduce a premium product at a price point which the current market pricing will not accommodate. But if you are firm in saying that you want this price and are confident of it, you will definitely get it. In the newspaper industry, pricing plays a huge role, but we have realised that pricing is not a standalone element. Quality is as important in deter-mining success. Customers will never accept average quality; they want value addition in their product. They expect their rupee to go the extra mile and give them the best quality.

Flexibility is key• No system or plan is sacrosanct. Systems and plans are essential but they

should be flexible enough to undergo a last minute change. Otherwise they become a bottleneck. This was an important lesson we learnt during the Ahmedabad launch.

• We had initially planned two city supplements for Ahmedabad as Ahmedabad is a city of 5mn readers. One edition would cover eastern Ahmedabad and the other the west, thereby providing more local news. So we planned our processes to accommodate two editions. But a reader survey revealed that though readers residing in the eastern suburb may not frequently travel to the west, they like to be up-to-date on happenings in the western part of the city and stay connected with their social circle residing there. Acceding to market demands we had to combine the editions and make the necessary changes in our systems.

• Customer choice played a similar role in Chandigarh. Here we planned a feature based city supplement to our main paper. It was to be printed earlier than the main paper, saving costs. However, we discovered that customers preferred a news based supplement. We had to change our process and print it along with the main sheet. This called for a major process change and we had to reschedule our activities.

• Headquarters: Delhi Area, India • Industry: Food and beverages• Type: Privately Held• Status: Operating• Company Size: 2,000 employees • Median Age: 32 years Manish aggrawal• Gender DIRECTOR

• Male: 89%• Female: 11%

• Bikanervala Foods (P) Ltd. is a company having 100 years of experience in the business of ethnic food, sweets and namkeens. It is one of the most prominent families of Bikaner, which has inherited a vast treasure of recipes of traditional Indian sweets, namkeens and spices developed and perfected by their forefathers.

• They brought their traditional recipes and culture to the Historic City of Delhi in the 50's with a shop in the heart of the city in Chandni Chowk – and the love of people of Delhi has given them the name BIKANERVALA.

• It was a modest beginning -- from a roadside stall in the ‘Moti Bazar’ of the heart of the walled city. The Delhiwallas relished their Bikaneri ‘bhujiya’ and ‘rasogollas’ and they fast grew to a regular shop ‘'BIKANER NAMKEEN BHANDAR' in the historic Chandni Chowk.

• It provides Indian sweets, namkeens, Sharbets, Mixtures, Bhujia,

Papad, Spice items and vegetarian fast food. Its products also include sweets fast food, seasonal and festive products, cookies, snacks, beverages, gift packs, and traditional drinks like badam milk and lassi.

• Under the brand name 'Bikano' the company produces high quality food items having true Indian flavour in international packing standards. Bikano’s concept of constant innovation through the use of modern technology while retaining the original flavour in its products has been the single biggest reason for its popularity around the world.

• The company also operates vegetarian restaurants in the Middle East, Nepal, and India. It operates outlets in and around New Delhi, India.

In the continuation of their progress through innovative blending of heritage and traditional expertise with modern technology, Bikanervala Foods Pvt. Ltd. has achieved the unique distinction of becoming the first Indian Company in its segment to have been granted ISO9001: 2000, HACCP and SQF2000CM certificates by Underwriters Laboratories Inc., an internationally accepted benchmark of quality standardization in more than 90 countries.

WORK DONE BY MR. MANISH AGRRAWAL

Bikano Chat Café is a new age concept of Bikanervala aimed at establishing a strong network in the corporate and the retail segment. Their main focus has been to provide exquisitely packaged traditional food at an affordable price to wherever their customer groups are located, be it corporate houses, malls or even exhibition stalls. Their innovative menu and state-of-the-art manufacturing and delivery systems ensures original flavour from base-kitchen-to-customer. This is our strength with which we are marching on a path of success and popularity

Range of product line The Bikanervala Foods franchise offers an entire range of sweets, which play an

important role in the Indian hospitality culture. The speciality food business takes extra care in preparing sweets which symbolize joy, love, richness, celebration and happiness. The sweet maker franchise knows how sweets form a part of the various occasions and how they are used by Indian families to convey greetings.

The Bikanervala Foods franchise also specializes in preparing salty namkeens’ which are made in the conventional manner. The speciality food business also runs Bikanervala's Angan Restaurants. These food outlets offer traditional Indian food stuff in an extremely modern environment.

The sweet maker franchise is always dedicated to provide standardized quality of food materials. It is this hygiene factor, which has helped the speciality food business in gaining a unique position in the Indian market. The restaurants of the Bikanervala Foods franchise which were opened in foreign countries like Nepal and Dubai have received tremendous support.

This has prompted the Bikanervala Foods franchise to open various food outlets in different cities of the world. The speciality food business offers Indian cuisine, Chinese food, vegetable burgers, pizzas, fresh fruit juice, ice creams etc. All the snacks and other food stuff offered by the sweet maker franchise are completely vegetarian in nature.

Quality The company is awarded with ISO 9002. It was

established in the year 1950 as an attempt to explore business opportunities beyond Rajasthan, its traditional stronghold. With it the company brought the traditional recipies perfected by the forefathers, exotic ingredients and experience in the art of making sweets and Namkeens.

Unbeatable product quality has taken it far beyond the geographical limits; now it serves to the ready markets in USA, Canada, UK, Germany, Singapore and the Gulf countries.

Conclusion• Small entrepreneurs are a very important factor for the

growth of Indian economy

• They contribute for employment opportunities in the country.

• The various pricing strategies have build up the small entrepreneurs their businesses

• Small businesses have grown over the period of time

• Various innovations have been included

PRESENTATION BY -

• Pooja Daftari• Rasesh Gohil• Tanay Damle• Libi Chacko• Kanika Mathur• Bhavik Mehta