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MINOR PROJECT REPORT ON COMPARATIVE

STUDY OF SMALL BUSINESS ENTERPRISES

CAMPUS GIFT GALLERY vs. NOVELTY GIFT CORNER
Submitted to:
Ms Deepti sinha (Asst. Prof and Project guide)
Submitted by:
1- Megha (M2013031)
2-Bhaskar pathak ,(M2013019)
3- Ayushi tyagi -(M201301)
4- Alok kumar -(M201307)
5- Ankit martin (M2013013)
6- Gopal Sharma - (2013025)




A.I.T school of management, Greater Noida(u.p.)

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STUDENT DECLARATION

We are the students of PGDM first year, hereby declare that the Project report
titled "Comparative Study Of Small Business Enterprises (Novelty Gift
Corner vs. Campus Gift Gallery) is our original and authentic work.
The imperial findings in this report are based on the data collected by us. We
have not submitted this Project report anywhere else.
1. Megha
2. Bhaskar pathak
3. Gopal sharma
4. Ayushi tyagi
5. Alok kumar
6. Ankit martin



Date:
Place: Greater Noida




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CERTIFICATE




This is to certify that the project " Comparative Study of Small Business
Enterprises((Novelty Gift Corner vs. Campus Gift Gallery) " is the bonafide
project work done by students of APEEJAY INSTITUTE OF TECHNOLOGY-
SCHOOL OF MANAGEMENT GREATER NOIDA in partial fulfilment of the
requirements for the award of the PGDM. The project has not formed the basis for
the award previously of any degree, diploma, associate ship, fellowship or any
similar title. To the best of my knowledge and belief the project represents
independent and original work on the part of the students under my guidance.





Deepti Sinha
(Asst. Professor & Project Guide)



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ACKNOWLEDGEMENT

The research report will be incomplete without giving sincere acknowledgement
to all persons who have helped us in the preparation of this dissertation.

First of all, We thank GOD ALIMIGHTY for the blessings showered on us
throughout this research project work, which has helped us in the successful
completion of the PGDM.

We take this opportunity to extend my sincere gratitude and profound obligation
towards our guide Ms Deepti Sinha for giving us valuable suggestions & her
inestimable help rendered to us throughout the research project and all other
faculty members for without their encouragement and continuing support, this
research project would not have been possible.













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CONTENTS

S.NO. CHAPTER DESCRIPTION PA
GE
NO
.
ACKNOWLEDGEMENT 4

1 Chapter: INTRODUCTION 6-
14

OBJECTIVES
11

LIMITATIONS
12-
13
2 Chapter: UNITS UNDER STUDY 14-
17
3 Chapter: APPROACHES TOWARD PROJECT 18-
20
4 Chapter: FINDINGS 21-
23
5
CONCLUSION
24

ANNEXURE
25-
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INTRODUCTION
Sometimes called a small business, a small-scale enterprise is a business that
employs a small number of workers and does not have a high volume of sales. Such
enterprises are generally privately owned and operated sole proprietorships,
corporations or partnerships. The legal definition of a small-scale enterprise varies
by industry and country.
Size
The U.S. Small Business Administration states that small-scale enterprises generally
have fewer than 500 employees within a 12-month period in non-manufacturing
industries. A company must consider any individual on its payroll as an employee. In
Australia, however, a small-scale enterprise is one that has fewer than 15 employees
on payroll, as defined by the Fair Work Act. The Small Business Act for Europe
states that small enterprises are those that have 250 employees or less. Small-scale
enterprises in Asian countries generally have 100 or fewer employees, while small-
scale African enterprises hire 50 or fewer workers.
Financial Measures
In some countries, the definition of a small-scale enterprise is bound by financial
measures such as net profits, balance sheet totals, the value of assets and annual
sales. In the United States, for example, a non-manufacturing small-scale enterprise
is one that does not earn more than $7 million in a year. Financial measures can
vary by industry, as annual receipts may be higher for industries that have higher
overhead costs to operate. In general, small-scale enterprises are businesses that
do not dominate their respective industry.
Economic Impacts
While large enterprises employ many individuals, small-scale enterprises in the
United States account for nearly half of the gross domestic product. Small-scale
enterprises help stimulate local economies by providing local individuals with jobs, as
well as products and services to community members. Moreover, such enterprises
help diversify and grow their respective industries, as many women and minorities
make significant contributions to the small-business world. When there is a rise in
small-scale enterprises, countries may see reforms in basic rights. For example,
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some U.S. states now allow sole proprietors without employees to have access to
group health care. In times of recession, however, the SBA states that small-scale
enterprises can account for a large number of employee layoffs.
Types of Small-Scale Enterprises
Small-scale enterprises exist in almost every industry. They can range from mom-
and-pop convenience stores to small manufacturing plants. Additional types of small-
scale enterprises can include privately owned restaurants, law firms, inns, bakeries,
architectural and engineering firms, dry cleaners and construction contractors.

Small businesses are normally privately owned corporations, partnerships, or sole
proprietorships. What constitutes "small" in terms of government support and tax
policy varies depending on the country and industry. Small businesses range from
15 employees under the Australian Fair Work Act 2009, 50 employees according to
the definition used by the European Union, and fewer than 500 employees to qualify
for many U.S. Small Business Administration programs. However,in 2006 there were
over 18,000 "small businesses" with over 500 employees that accounted for half of
all the employees employed by all "small business".
[1][2]
Small businesses can also
be classified according to other methods such as sales, assets, or net profits.
Small businesses are common in many countries, depending on the economic
system in operation. Typical examples include: convenience stores, other small
shops (such as
a bakery or delicatessen), hairdressers, tradesmen, lawyers, accountants, restaurant
s, guest houses, photographers, small-scale manufacturing, and online businesses,
such as web design and programming, etc.

Characteristics of small businesses
Size definitions
The legal definition of "small business" varies by country and by industry. In
the United States the Small Business Administration establishes small business size
standards on an industry-by-industry basis, but generally specifies a small business
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as having fewer than 250 employees for manufacturing businesses and less than $7
million in annual receipts for most non manufacturing businesses.
[2]
The definition
can vary by circumstance for example, a small business having fewer than 25 full-
time equivalent employees with average annual wages below $50,000 qualifies for a
tax credit under the health care reform bill Patient Protection and Affordable Care
Act.
The European Union generally defines a small business as one that has fewer than
50 employees. However, in Australia, a small business is defined by the Fair Work
Act 2009 as one with fewer than 15 employees. By comparison, a medium sized
business or mid-sized business has less than 500 employees in the US, and fewer
than 200 in Australia.
In addition to number of employees, other methods used to classify small companies
include annual sales (turnover), value of assets and net profit (balance sheet), alone
or in a mixed definition. These criteria are followed by the European Union, for
instance (headcount, turnover and balance sheet totals). Small businesses are
usually not dominant in their field of operation.
The table below serves as a useful guide to business size nomenclature.



Demographics
According to a survey run in the United States among businesses having 500
employees in late 2010, about 50% of minute/micro-businesses are owned by
women.
[4]

Franchise businesses
Franchising is a way for small business owners to benefit from the economies of
scale of the big corporation (franchiser). McDonald's and Subway are examples of a
franchise. The small business owner can leverage a strong brand name and
purchasing power of the larger company while keeping their own investment
affordable. However, some franchisees conclude that they suffer the "worst of both
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worlds" feeling they are too restricted by corporate mandates and lack true
independence.
Retailers' cooperative
A retailers' cooperative is a type of cooperative which employs economies of scale
on behalf of its retailer members. Retailers' cooperatives use their purchasing power
to acquire discounts from manufacturers and often share marketing expenses. It is
common for locally owned grocery stores, hardware stores and pharmacies to
participate in retailers' cooperatives. Ace Hardware, True Value, and NAPA are
examples of a retailers' cooperative.
Advantages of small business


One of the claimed advantages of small business owners is the ability to serve
market niches not covered by mass production. Consider how many big corporations
would be willing to deal with antiques such as the store in the picture.
A big business can be started at a very high cost and on a full-time basis. Small
business is also well suited to internet marketingbecause it can easily serve
specialized niches, something that would have been more difficult prior to the
internet revolution which began in the late 1990s. Adapting to change is crucial in
business and particularly small business; not being tied to any bureaucratic inertia, it
is typically easier to respond to the marketplace quickly. Small business proprietors
tend to be intimate with their customers and clients which results in greater
accountability and maturity.
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Independence is another advantage of owning a small business. One survey of small
business owners showed that 38% of those who left their jobs at other companies
said their main reason for leaving was that they wanted to be their own bosses.
[citation
needed]
Freedom to operate independently is a reward for small business owners. In
addition, many people desire to make their own decisions, take their own risks, and
reap the rewards of their efforts. Small business owners have the satisfaction of
making their own decisions within the constraints imposed by economic and other
environmental factors.
[5]
However, entrepreneurs have to work for very long hours
and understand that ultimately their customers are their bosses.
Several organizations, in the United States, also provide help for the small business
sector, such as the Internal Revenue Service's Small Business and Self-Employed
One-Stop Resource.
[6]

Small businesses (often carried out by family members) adjust quicker to the
changing conditions, however they are closed to the absorption of new knowledge
and employing new labour from outside














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Goals and Objectives

How determined am I to see this succeed?
Am I willing to invest my own money and work long hours for no pay,
sacrificing personal time and lifestyle, maybe for years?
What's going to happen to me if this venture doesn't work out?
If it does succeed, how many employees will this company eventually have?
What will be its annual revenues in a year? Five years?
What will be its market share in that time frame?
Will it be a niche marketer, or will it sell a broad spectrum of good and
services?
What are my plans for geographic expansion? Local? National? Global?
Am I going to be a hands-on manager, or will I delegate a large proportion of
tasks to others?
If I delegate, what sorts of tasks will I share? Sales? Technical? Others?
How comfortable am I taking direction from others? Could I work with partners
or investors who demand input into the company's management?
Is it going to remain independent and privately owned, or will it eventually be
acquired or go public?









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IMPORTANCE AND LIMITATIONS OF SMALL
BUSINESS ENTERPRISES

Problems of Small-Scale Businesses
by Chris Joseph, Demand Media
Owners of small-scale businesses experience several advantages over their larger
competitors. They have the flexibility to make decisions quickly, and they can
develop closer personal relationships with their customers, which often leads to
greater loyalty. However, there are some situations where smaller businesses have
difficulty keeping pace with large corporations.

Small Business Opportunity
Source quality products at Best SMB Site - hktdc.com
Limited Employee Benefits
Small-scale businesses often cannot afford to offer important employee benefits,
particularly health insurance. In many cases, the businesses do not have enough
employees to qualify for less expensive group insurance rates. Instead, they may
have to offer high-deductible plans where employees have to bear a larger burden of
health care costs to make the premiums affordable. A lack of benefits makes it more
difficult to attract and retain talented workers who may find more comprehensive
benefits packages with larger employees.
Reduced Buying Power
Small-scale businesses may not have the buying power of their larger counterparts.
Because they have limited warehouse space for carrying inventory, they often do not
have the luxury of buying in bulk, meaning they are not eligible for price discounts
and lower unit costs. A small retailer, for example, does not have the means to
purchase and store mass quantities of merchandise like a larger competitor such as
Walmart. Higher unit costs often mean higher retail prices, making it more difficult for
smaller businesses to compete.
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Surviving Difficult Times
Smaller businesses may have greater difficulty surviving difficult economic times.
Larger businesses may have a greater financial cushion and access to more
resources that can help them weather the storm. Diversified large companies can
focus their attention on areas that may be performing well despite difficult economic
conditions. For smaller companies, a loss of even one major customer in a struggling
could deliver a fatal blow, as they may have no way to replace the lost revenue.
Obtaining Financing
Small businesses often face greater challenges in obtaining needed financing than
larger businesses. Banks are reluctant to loan money to unestablished small
businesses, leaving the entrepreneur to rely on credit cards or home equity loans for
survival. They may not have the assets needed to collateralize a business loan. A
lack of financing can also prevent a business owner from expanding her operations
unless she resorts to other methods like taking on investors or franchising.









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FORMALITIES FOR SETTING UP OF A SMALL
BUSINESS ENTERPRISE










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OBJECTIVES OF THE STUDY

Our main objective is to find out the comparison between two shops. Like who is
working better, who is managing better in context of our studies in management and
knowing the unknowing facts about retail shops by comparing both of them.
To suggest measures to improve their business
To understand in depth the working of small business units

LIMITATIONS OF THE STUDY

For Completing this project we have gone through certain kinds of problems.
The shopkeepers are not comfortable when we have asked some qwestions
related to finance parameter.
They dont want to share their business secrets like their daily turnover,
income tax pay, service tax, authorization of shop, daily sales etc....!
In our group their was a storming conditions due to that we have suffered a lot
and to make this project we have face lots of problems like...
Co-ordination problem.
Lack of presence of group members
Only 2 persons of the group have done this project finally.. !







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CHAPTER 2
UNITS UNDER STUDY

CAMPUS GIFT GALLERY
This shop is situated in greater noida and the proper address is shop
no.6,gurubaksha plaza ,jagat form .greater noida (up) its a small business ente
rprises and from 10 years they are running this shop as a gift gallery.in the
comparison of big enterprises these business are also trying to be in market. there
are various kinds and for every occasion there are different types of gifts available
like for birthdays,weddings,Christmas,festivals,etc....!
Due to that they are getting good amount of money.
And MR.VEDPAL is the owner of the shop he has started his small business
enterprises from 2001 from 12 year this shop is running frequently this shop is sole
proprietorship.



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NOVELTY GIFT CORNER AND TOY WORLD
This shop is situated in greater noida and the proper address is shop no.1,A.K.
PLAZA ,jagat farm,greater noida (up) it is small business enterprises and they are
running this shop from 10 years they are doing good job as well. There are various
kinds of gifts and toys available over there.for each and every kind of occasions they
have gifts for that for every festive season they have lots of varieties.
MR. A.K. PATHAK and MRS KANTI PATHAK are the owner of the shop.
In the comparison of other shop they are trying their best to perform well.
They have a branch of NOVELTY SPORT S CORNER in greater noida




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CHAPTER 3
APPROACHES TOWARDS PROJECT

Starting from the day 1 when we decided to take the comparative study as minor
project., first of all it was really very difficult to find two shops of our choice then our
whole group went to the market and came with a list of shops on which we can do
our project, but by group discussion and by consulting our faculty (MS.DEEPTI
SINHA) we came to the decision that we will do the comparative study between two
gifts shops campus gift gallery& novelty gift corner.
so we latter co-ordinate and distributed our individual task as who will do what?
BHASKAR PATHAK ,GOPAL SHARMA, ALOK KUMAR TAKEN INTERVIEW IN
(NOVELTY GIFT CORNER) AS WELL AS MEGHA, AAYUSHI TYAAGI, ANKIT
MARTIN HAVE TAKEN INTERVIEW IN (CAMPUS GIFT GALLERY).!!!

APPOINMENTS
We have taken appointments by going their shops through direct interaction with the
shop owners and ask them for interview.

WHOLE INTERVIEW PROCESS
We have asked 30 questions and both have them have entertained us so well and
answer us honestly. And we have used NOKIA LUMIA WINDOW PHONE for
capturing and making videos.
And after then we prepared our report after discussing our group member.

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(Interview session in campus gift gallery)
(Interview session in novelty gift corner)




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RESEARCH METHODOLOGY

Research in common parlance refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on specific
topic. In fact research is an art of scientific topic. Some people consider research as
a movement, a movement from the known to unknown. Research is an academic
activity and as such the term should be used in a technical sense. Research
comprises defining and redefining problems, formulating hypothesis or suggested
solutions ; collecting ,organizing and evaluating data making deduction and
reaching conclusion ; and at last carefully testing the conclusion to determine
whether they fit the formulating hypothesis . social science define the research as
the manipulation of things , concepts or symbol s for purpose of generalization to
extend ,correct or verify the knowledge aids in construction of theory or in the
practice of an art research is thus an original contribution to existing stock of
know ledge making for its advancement . The systematic approach concerning
generalization and the formulation of the theory is also research.

The data is collected through the PRIMARY sources.












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CHAPTER 4
MAJOR FINDINGS & OBSERVATIONS

NOVELTY GIFT CORNER:-
Mr. A.K. PATHAK age 48 with his wife mrs KANTI PATHAK handles this
shop.
There are 3 workers works in this shop owner.
Workers are provided salary of rs.5000 to 6000/ month.
The workers have basic education.
Workers are getting facilities of refreshment.
Daily sales of this shop is 5000 approx.
Minimum inventory they keep in warehouses as per demand.
They manage their customers through good qualities of products, rates,
discounts etc.
This is RETAIL SHOP.
They take feedback of their customers..
Their advertisement strategies are publish pamphlets through boar ds etc.
They dont think they have any competitors.
Their average customer visits are 30 to 40 daily.
They also pay INCOME TAX.
Their shop is AUTHIRIZED.
they get goods from market supplier.
Their shop is rental premises.
Their advertisement and operational expenses is approx 30000to 25000.
The shop is 10 year old.
They have one branch in jagat plaza name NOVELTY SPORTS.
The peak time of the shop is in evening time around 6.pm.
Their are 3 or 4 products which always in demand like soft toys, show piece,
and games!
In festive season demand of gifts always high!
They provide possible discount to the customer for maintaining relationship.
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After purchasing the products if there is any problem they dont want to listen
or change the products.
CAMPUS GIFT GALLERY
Mr. VEDPAL age 35 with his wife Mrs. AARTI handles this shop.
They them self handle this shop..
Daily sales of this shop is 8000 to 10000 approx.
Minimum inventory they keep in warehouses as per demand.
They manage their customers through good qualities of
products,rates,discounts etc.
This is RETAIL SHOP.
They take feedback of their customers..
Their advertisement strategies are publish pamphlets through boar ds etc.
They dont think they have any competitors.
Their average customer visits are 30 to 40 daily.
They also pay INCOME TAX.
Their shop is NOT AUTHIRIZED.
they get goods from market supplier.& ARCHIES.
Their shop is rental premises.
Their advertisement and operational expenses is approx 30000to 25000.
The shop is 12 year old.
The peak time of the shop is in evening time around 3 to 7pm.
Their are 3 or 4 products which always in demand like photo frame,ganesh ji
etc.!
In festive season demand of gifts always high!
They provide possible discount to the customer for maintaining relationship.
After purchasing the products if there is any problem they change or replace
the products.
Minimum cost of gift is 50rs.and maximum cost of gift available is 3000 rs.



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OBSERVATIONS

Comparison between both shops.
Novelty gift corner is authorised and campus gift gallery is non authorised.
The owner of novelty gift corner is 48 year old and he is more experience in
the comparison of other.
The owner of novelty gift corner pays INCOME TAX and another one is not.
There is a branch of novelty gift corner.
The owner of campus gift corner is quite young so thats why he is less
experienced then other.
Campus gift corner is less future stick then novelty gift corner.
In novelty gift corner workers are paid timely and they planned for every
season.
The profit of novelty gift corner is more then campus gift gallery.











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Conclusion
The name is different and so do the age also. one is youth with lots of energy but
less experienced. And second one is experienced and future stick.
By this we came to know that youth of campus gift gallery is having lots of energy
new ideas and capable of doing all the job at the shop by his own. he himself hand
les his shop and gets more profit and no one helps him in that.
In novelty gift corner shop keeper is unable to handle the shop and needs 3 workers
to manage his shop and that too with his wife.














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ANNEXURE
INTERVIEW SCHEDULE

Who is the owner?
How many workers are there in the shop?
What salary do you pay to your workers and range of that?
How you manage the absenteeism or leaves of your workers and what is
your recruitment and selection process?
Which kind of facilities you are providing to your employees?
What is your daily sale?
(A)min percentage (B)max percentage
How much min inventory do you keep in your warehouse?
How do you manage your customers?
Which kind of facilities you are following to make believe customers that
your product is best rather than others (promotion).
According to your perception which strategy do you prefer for
marketing?
(a)wholesale (b) Retail.
How do you take feedback of your customer?
What is your promotion or advertisement strategy?

Who is your biggest competitor?
What is your monthly turnover?
How many average customer visits to your shop in a day?
Whether you pay income tax or not?
Your shop is authorized?
Service tax promotion?
Who are the suppliers of raw material?
Is this shop is rental premises or your own.
What is advertisement and operational expenses?
From when you have started your business?
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How many branches are there in NCR?
What are the major problems you face while running the shop?
What is your peak time?
Which product is more in demand?

ANY SUGGESIONS....!



















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