Download bba-esbs(khushi) PDF

Titlebba-esbs(khushi)
Tags Economies Factors Of Production Economic Development
File Size692.7 KB
Total Pages354
Document Text Contents
Page 1

Bachelor of Business Administration
(B.B.A.)

BBA - 301

ENTREPRENEURSHIP DEVELOPMENT

&

NEW ENTERPRISE MANAGEMENT

Directorate of Distance Education
Guru Jambheshwar University

HISAR-125001

Page 2

CONTENTS

Lesson No. Lesson Name Page No.

1. Entrepreneur and Entrepreneurship 3

2. Factors Affecting Entrepreneurship Growth :
Economic, Social, Psychological and
Political Factors 27

3. Entrepreneurship Development 41

4. Entrepreneurial Motivation 76

5. Method and Procedures to start and
expand one’s own Business 107

6. Environmental Factors affecting success of a
new business; reasons for the failure
and visible problems for business 147

7. Project Formulation 160

8. Selection of Factory Location 197

9. Demand analysis and market potential measurement 228

10. Working Capital Management 248

11. Government Support to Entrepreneurs:
Policy Initiatives for Entrepreneurial
Growth; Incentives and Subsidies 280

12. Institutional Support to Entrepreneurs 308

13. Entrepreneurship Development Programmes 325

Page 177

(177)

capital requirements in their own way which is ultimately recasted by the banker.
This wastes time and creates problems. Hence, if they project their requirements
in the prescribed way, it will minimise objections from the banker’s side.

6. Other Financial Aspects : One of the objectives of setting-up a project
is to earn a livelihood. Besides the project set-up must be able to retrieve the
investments made within its life cycle. This would be possible only if the
products taken up for production are adequately profitable. This would require
preparation of a projected Profit & Loss Account which would indicate likely
sales revenue, cost of production, allied cost and profit. These estimates
especially the likely sales revenue, should be made on a realistic basis. A
projected Balance Sheet and Cash Flow Statement would be have to prepared
to indicate financial position and requirements at various stages of the project.
After all the smooth functioning of the unit necessitates availability of adequate
funds for various commitments.

Next the Break-Even Analysis must be presented. Break-even point is
the level of production/sales where the industrial enterprise shall make no
profit no loses it will just break-even. This facilitates knowing the gestation
period and the likely moratorium required for repayment of loans.

Break-even point (BEP)
Where, F = Fixed Costs

S = Sales Projected
V = Variable Costs

The break-even point thus calculated will show at what percentage of
projected sales the unit will break-even.

It is also a good idea of calculate and indicate the following ratios

1. Profitability Ratio = Net Profits x 100
Sales

2. Return on Investment = Net Profits x 100
Capital Employed

Page 178

(178)

3. Debt Equity Ratio = Debt .
Equity

4. Debt Service = Net Profit after tax + Depreciation
Coverage ratio + Interest for one year .

Instalments + interest (for one year)

7. Economic and Social Variables : What will be the abatment costs i.e.,
costs for controlling the environmental damage (e.g., pollution)? The abatment
cost will constitute the value of the additional engineering and technology
needed for treating the effluents -and emissions.

Whether the project will have some socioeconomic benefits, of which
the following are a few examples:

(a) Employment Generating : The number of persons proposed to be
employed vis-a-vis employment situation of that area may be mentioned.

(b) Import Substitution : The manner in which it is planned to be achieved
and the amount of benefit expected may be mentioned.

(c) Ancillarisation : Whether the unit will need sub-contracting functions
of such type that ancillary industrial units may be promoted to meet
them?

(d) Exports : Quite likely the products proposed for manufacture may be
exported in full or in part.

(e) Local Resource Utilisation: Certain local resources which are
presently a waste may be usefully utilised upon the project going on
stream.

(f) Development of the Area : How the establishment of the unit will bring
on overall development in the area of its operation ?

8. Project Implementation Schedule : Preferably a PERT/CPM chart
can be appended to the project report. If this is not feasible then in a
tabular form, likely dates of completion of the following activities can
be mentioned.

Page 353

Bachelor of Business Administration

BBA - 301

ENTREPRENEURSHIP DEVELOPMENT
&

NEW ENTERPRISE MANAGEMENT

Course Design and Preparation Team

Prof. M. S. Turan
Dean & Chairman
Deptt. of Business Management
G. J. University, Hisar-125001

Prof. H. L. Verma
Pro-Vice Chancellor
G. J. University, Hisar-125001

Dr. B. S. Bodla
Reader
Deptt. of Business Management
G. J. University, Hisar-125001

Dr. M. C. Garg
Lecturer
Deptt. of Business Management
G. J. University, Hisar-125001

Dr. P. Gupta
Lecturer
Deptt. of Business Management
G. J. University, Hisar-125001

Directorate of Distance Education
Guru Jambheshwar University

HISAR-125001

Page 354

All Rights Reserved by :
Directorate of Distance Education

Guru Jambheshwar University, Hisar - 125 001

Printed by : Competent Printing Press, Hisar-125001
Ph. : 01662-225100. Mobile : 98960-68720

Similer Documents