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      An entrepreneur is an individual who owns a firm,
business, or venture, and is responsible for its development. Entrepreneurship is the practice
of starting a new business or reviving an existing business, in order to capitalize on new
found opportunities.

Generally,    
     as a good number of the new
businesses fail to take off. Entrepreneurial activities differ based on the type of business they
are involved in. It is also true that entrepreneurial ventures create a number of new job
opportunities. A large number of entrepreneurial projects look for venture capital or angel
funding for their startup firms in order to finance their capital requirements. Besides,
government agencies and some NGOs also finance entrepreneurial ventures.

    

   
, particularly when it involves
creating something new for which there is no existing market. Even if there is a market, it
may not translate into a huge business opportunity for the entrepreneur. A major aspect in
entrepreneurship is that entrepreneurs embrace opportunities irrespective of the resources
they have access to.

A number of entrepreneurs are of the opinion that managing their own business offers far
greater security than being an employee elsewhere. They feel entrepreneurship enables them
to acquire wealth quickly and cushion themselves against financial insecurity. Additionally,
an entrepreneur¶s future is not at peril owing to the faulty decisions of a finicky employer. So,
while some people feel that being employed is less risky, entrepreneurs feel that they are
better off starting a business of their own.

Today, there is the increasing awareness about entrepreneurship. People aren¶t confining
themselves to one business. They are following one business with another. Such
entrepreneurs are referred to as ³serial entrepreneurs.´ Sometimes these entrepreneurs
become angel investors and invest their money in startup companies. As a person gains
greater insight into business and entrepreneurship, his chances of succeeding in business
improve.


  
Being an entrepreneur is about more than just starting a business or two, it is about having
attitude and the drive to succeed in business. All successful Entrepreneurs have a similar way
of thinking and posses several key personal qualities that make them so successful in
business. Successful entrepreneurs like the ambitious Richard Branson have an inner drive to
succeed and grow their business, rather than having a Harvard Business degree or technical
knowledge in a particular field.

All successful entrepreneurs have the following qualities:


  
Entrepreneurs are driven to succeed and expand their business. They see the bigger picture
and are often very ambitious. Entrepreneurs set massive goals for themselves and stay
committed to achieving them regardless of the obstacles that get in the way.

! " 

Successful entrepreneurs have a healthy opinion of themselves and often have a strong and
assertive personality. They are focused and determined to achieve their goals and believe
completely in their ability to achieve them. Their self optimism can often been seen by others
as flamboyance or arrogance but entrepreneurs are just too focused to spend too much time
thinking about un-constructive criticism.


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All entrepreneurs have a passionate desire to do things better and to improve their products or
service. They are constantly looking for ways to improve. They're creative, innovative and
resourceful.

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If something is not working for them they simply change. Entrepreneurs know the importance
of keeping on top of their industry and the only way to being number one is to evolve a nd
change with the times. They're up to date with the latest technology or service techniques and
are always ready to change if they see a new opportunity arise.

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Successful entrepreneurs thrive on competition. The only way to reach their goals and live up
to their self imposed high standards is to compete with other successful businesses.

 &


Entrepreneurs are always on the move, full of energy and highly motivated. They are driven
to succeed and have an abundance of self motivation. The high standards and ambition of
many entrepreneurs demand that they have to be motivated!


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Innovative entrepreneurs are often at the forefront of their industry so they hear the words "it
can't be done" quite a bit. They readjust their path if the criticism is constructive and useful to
their overall plan, otherwise they will simply disregard the comments as pessimism. Also, the
best entrepreneurs know that rejection and obstacles are a part of any leading business and
they deal with them appropriately.

True entrepreneurs are resourceful, passionate and driven to succeed and improve. They're
pioneers and are comfortable fighting on the frontline The great ones are ready to be laughed
at and criticized in the beginning because they can see their path ahead and are too busy
working towards their dream.
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Vhy Vomen Become Entrepreneurs

Vomen often leave the corporate world to become entrepreneurs, by starting their own
businesses, to provide additional flexibility and life balance in managing their traditional
responsibilities as wife and primary caretaker of children. The primary concern for many
women is the combined responsibility of work and family (Buttner and Moore, 1997). Helms
explains that women often start their own business for ³three types of personal gains:
personal freedom, security, and/or satisfaction´ (Helms, 1997). She describes ³freedom
seekers´ as those who are dissatisfied with their employment due to pay inequities or
discrimination and desire the freedom to choose their preferred type of work (i.e. hours of
work, environment, and people they work with). The work flexibility provided by
entrepreneurship is appealing for women in terms of location, often working at home or close
to home, and the hours of work. ³Security seekers´ are those who have been prompted to
become an entrepreneur due to some personal misfortune, such as layoff, downsizing,
divorce, death or retirement of their spouse. These ³security seekers´ start a business to
improve or maintain their family social or economic status. The ³satisfaction seekers´ are
housewives who do not have any previous work skills or experience but want to prove to
others or themselves that they can be productive and useful in society (Helms, 1997).

In examining different theories and the reasons why women become entrepreneurs, I would
argue that there is no set and standard profile that can be predictably applied. For every
woman who is an entrepreneur or wants to become one, they each have their own set of
reasons, motivation, and many cannot be categorized or µlabeled¶. I believe that the general
profile of women entrepreneurs is similar to their male counterparts as they all are generally
innovative, risk takers, autonomous, independent, have a high tolerance for ambiguity and
possess an internal locus of control. Although some researchers classify the differences
between men and women due to their desires, underlying reasons why they wanted to become
entrepreneurs, and family duties, they still possess the same personality/profile that is
required of any entrepreneur regardless of their gender.

Female and Male Differences

Helm argues in her paper that men and women have different reasons for entering business
and that women have ³internal-stable reasons (³I want to be my own boss´), while men have
external-stable reasons (³I saw a terrific market opportunity´) (Helm, 1997, p. 17). In
contrast, Veiler and Bernasek state the reasons as a more preferable alternative then working
in a discriminatory labour market or corporation and that self-fulfillment (rather than profits)
is the most significant measure of success for women entrepreneurs. Similar to Veiler and
Bernasek¶s theory, Buttner and Moore argue that women become entrepreneurs due to the
blocks in career advancement as a result of gender discrimination resulting in the popular
term ³glass-ceiling effect´ (women cannot access the highest levels in an organization or
corporation due to their gender). This is not a barrier that men face, but I would argue that
this type of discrimination can actually strengthen a women¶s determination to succeed.

In comparing the management styles of women and men entrepreneurs, Bruni, Gherardi and
Poggio explain that women display distinctive features and abilities, ³transformational
leadership´. This type of leadership/management style encourages positive interactions and
trust-based relationships with subordinates with whom they also share power and
information. Gundry, Ben-Yoseph and Posig describe this as the ³relational´ practices
engaged by women entrepreneurs. This would include collaborative, decentralized decision-
making and an empowered team atmosphere. Their management style emphasizes open
communication and ³their business goals reflect a concern for the communities in which their
businesses resided´ (Gundry, Ben-Yoseph and Posig, 2002, p. 72). In contrast to other
researchers, Gundry, Ben-Yoseph and Posig stated that women in non-traditional industries
value money both as a motivator and the preferred outcome. Yet, Buttner and Moore¶s
research findings indicate that women¶s important goals are for professional growth,
development, challenge, and self-fulfillment, while men¶s are preferred higher income.

!
 

 "
 

1. Capital Finance

There are many barriers for women entrepreneurs when facing the prospects of starting a new
business. Research finds the primary barrier is the access to capital finance. ³Lack of access
to capital has been a primary obstacle for women entrepreneurs

2. Lack of Networks

As mentioned earlier, another prominent barrier that women entrepreneurs face is the lack of
networks of information, assistance, and mentors:

Networks, which generally are touted as providing valuable information conduits to

efficient markets, may once again be at the source of women¶s difficulties, as their
firms may find themselves struggling against an established male-dominated system
of customers, suppliers, and creditors.


 


Social entrepreneurs are individuals with innovative solutions to society¶s most pressing
social problems. They are ambitious and persistent, tackling major social issues and offering
new ideas for wide-scale change.
Rather than leaving societal needs to the government or business sectors, social entrepreneurs
find what is not working and solve the problem by changing the system, spreading the
solution, and persuading entire societies to take new leaps.

Social entrepreneurs often seem to be possessed by their ideas, committing their lives to
changing the direction of their field. They are both visionaries and ultimate realists,
concerned with the practical implementation of their vision above all else.

Each social entrepreneur presents ideas that are user-friendly, understandable, ethical, and
engage widespread support in order to maximize the number of local people that will stand
up, seize their idea, and implement with it. In other words, every leading social entrepreneur
is a mass recruiter of local changemakers²a role model proving that citizens who channel
their passion into action can do almost anything.

Over the past two decades, the citizen sector has discovered what the business sector learned
long ago: There is nothing as powerful as a new idea in the hands of a first-class
entrepreneur.

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Just as entrepreneurs change the face of business, social entrepreneurs act as the change
agents for society, seizing opportunities others miss and improving systems, inventing new
approaches, and creating solutions to change society for the better. Vhile a business
entrepreneur might create entirely new industries, a social entrepreneur comes up with new
solutions to social problems and then implements them on a large scale.

 

% 

Sustainable entrepreneurship is a spin-off concept from sustainable development that
can be defined as the continuing commitment by business to behave ethically and
contribute to economic development while improving the quality of life of the
workforce, their families, local communities, the society and the world at large as well
as future generations. Sustainable entrepreneurship is an approach that is applied
mostly by large, often industrial companies. In their wake, a whole range of
sustainability certificates came about. Because of the proliferation of complex and
costly procedures to obtain them, Small and Medium size Enterprises (SMEs) have
almost unanimously ignored and repudiated the idea of sustainable entrepreneurship.

  

A ›
   is an entrepreneur who is technology savvy, creative, innovative,
dynamic, dares to be different and take the unexplored path, and very passionate
about their work. They take challenges and strive to lead their life with greater
success. They don't fear to fail. They take failure as a learning experience, a
stimulator to look things differently and stride for next challenge. Technoprenuers
continuously go through an organic process of continual improvement and always try
to redefine the dynamic digital economy.

Technology and entrepreneurial skills are driving many economies to prosperity. The
most famous of them all is, Bill Gates, who makes Microsoft a household name all
over the world. Steve Jobs - well known for his innovations. iPod - most carried
gadget by young population. Look at the success of Google - brain child of Sergey
Brin and Larry Page. Vho don't know Google?

Technopreneurship is not a product but a process of synthesis in engineering the

future of a person, an organization, a nation and the world. In a digital, knowledge
based society, strategic directions or decision-making processes will be demanding
and complex. This requires tertiary level and professional development programs and
training to produce strategic thinkers who will have the skills to succeed in a
dynamically changing global environment. Traditional educational programs,
however, lack the methodology to transform today's students into creative, innovative,
visionary global leaders who understand the importance of technopreneurship.

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There is a huge difference between a "Manager and an Entrepreneur." Vhile they both hold
some similarities, i.e., have to be a driven person, with the goal in sight at all times. Also,
their interaction with other people is generally in a more firm tone, when directing insight
into a particular project or idea.

Managers, for the most part manages other personnel within a company structure. This can
range from a supervisor on the flour in a factory setting, and/or the individual that is in charge
of the payroll up in the front office. All these people have a great deal of responsibility and
manage other people in their normal daily work schedule. It can range from entry level
management, all the way to what is known as senior level management. Consisting of people,
who hold the titles of President, CFO, Chairman, etc.

The one common element to all this above mentioned structure is that they all report to
someone else within the company. Including the President of the company, he still has to
report to the board, or to the Chairman of the board. Either way all these people still have to
report to another person at some point in the average work day.

This is the main difference between a "Manager and an Entrepreneur," the mere fact that
managers work on someone else schedule, or a set schedule from the company in which you
work. Entrepreneurs for the most part work on their own time schedule. Depending on what
the current project at hand may be, will dictate what the coming schedule will be like for the
duration of the project. If you are a more free spirited type of person, this lifestyle will
undoubtedly be more appealing than the normal work week of nine to five.

Being an Entrepreneur is something that has to be constantly worked at, in order to maintain
a healthy financial lifestyle. Generally this type of person has something to bring to the
"proverbial" table that will make actually being an Entrepreneur a doable venture. Vhether
your interest lay in land acquisitions, or investments of some sort, or being an adventure
seeking person and making a living out of writing articles on different projects. This choice
for making a living, definitely gives the individual more time to live life in a more free
manner, without the norm of set appointments daily. Hence, not waking to a supervisor every
day, just your own sweet self reflecting back in the mirror.




Vhen a company¶s growth begins to dwindle, boardroom meetings grow strained and the
finger pointing starts. Executives cry out, "Ve need a new strategy! Ve need to hire better
people! Our culture is to blame! Our compensation is wrong!" The founder, if he or she is
still around, sadly states, "Ve have more people, resources, and money than ever. But now
we are so big we can¶t even get out of our own way!" Embarrassed, a politically perceptive
staffer serves up a popular buzzword. "Intrapreneurs! Vhat we need are Intrapreneurs!" The
"hip" executive explains that Intrapreneurs are "Inside Entrepreneurs" who will follow their
founder¶s example. The Intrapreneur, he or she promises, will buck the corporate malaise,
risk his or her career to get things done and, is willing to "do the right thing to serve the
customer". As everyone looks around the room for this potential savior of growth, what do
they see? Executives¶ eyes around the table react in three different ways:

1.? Most managers¶ eyes look down hoping this latest idea dies before making them
change or take chances.
2.? The owner¶s eyes look up and out the window reminiscing about the "good old days"
when he or she ran a much smaller and focused company. Back then, everyone was an
Intrapreneur with "fire in their bellies".
3.? One or maybe two sets of younger, brighter eyes sparkle, expressing hope that their
time has come to break suffocating company rules and politics stifling opportunities
they see but cannot pursue. Optimistically, but sometimes fatally, these people seize
the moment and volunteer as "champions" of this new company initiative.

Vhat happens? Management chooses an Intrapreneur hoping that this "champion" is

victorious. If successful, will this person become the company¶s leader? On the other hand,
will he or she leave and become an Entrepreneur? Too often, the budding Intrapreneur is
"beaten" into submission by, and is "forced" to rejoin the first group.

Despite their righteousness, why don¶t more Intrapreneurs succeed? Because in doing what is
right, Intrapreneurs hold a mirror up to their peers, forcing them to confront what they and
their company have become. Just like a middle-aged, weekend warrior exercising after years
of complacence, when a staid company tries to perform like a growth business, the picture is
not very pretty.

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If you, the Intrapreneur, are offered such a firm-changing opportunity, consider this. You
may have the chance to take your career to new heights by helping to drive the future of your
company. Vhether you are asked to develop a product, service, channel, or application, will
you make your mark or seal your fate? Should you:

1.? Seize the moment?

 2.? Pass on the opportunity or, leave to become an entrepreneur?

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Family businesses constitute most businesses in India, as anywhere else. Economic
liberalisation and rapid expansion in the industrial base in recent years have not only created
growth opportunities for many but also have tested their resource capabilities to respond to
them; some have chosen to follow the role of a custodian of their existing wealth and
followed the preservation route, while some others have followed more of an entrepreneurial
route of exploiting opportunities with or without relevant resources, with mixed results. One
of the key resources for all of them is their family, and their prime concern is wealth and
welfare of their family. A major dilemma many of them have faced particularly in the last
decade since economic liberalization began is to choose between combinations of risks and
returns of business growth and conservation of wealth of the family. This, of course, is
intertwined with the missions of their businesses and families.

Family as a social institution is one of the oldest surviving (Goode, 1982), but only in recent
years family business, an important arm of it started receiving academic attention. After a
detailed review of the existing literature, Zahra and Sharma (2004) concluded that family
business research has a long way to go from the present fragmented and descriptive state.
There are conceptual differences between family and business (Vard 1987, 2004), though
opinions on treating them as conflicting systems vary. Family businesses are found to split up
like amoeba as they grow, and very few of them survive beyond three generations, supporting
the age old saying, ³shirt sleeve to shirt sleeve in three generations´ (Carlock and Vard 2001,
McCulloch 2004).

Most discussions in this area are based on research in advanced countries. In most developing
countries, including India, it still remains a black box; academics and industry observers were
puzzled to witness the recent break up in the second generation of the Ambani family, the
largest private sector group worth over US $ 20 billion. Even anecdotal evidence is limited to
a few biographical sketches (Tripathi, 2004; Piramal, 1998) and consultant impressions
(Dutta 1997; Sampath 2001). Sharma and Manikutty¶s (2005) study of diversified family
groups is one of the few notable research pieces from India in this area. In essence, not much
is known either about the survival rate or the factors contributing to the successful survival of
family businesses in India. Taking the survival bar as three generations, it will be interesting
and instructive to know how family businesses perform in the fourth generation. Since the
implicit assumption here is that the family has survived as a single entity, it is important to
know how the family¶s involvement in business is and also how the family and outside
professionals manage the business.


  
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For historical, evolutionary reasons, most countries have family businesses constituting the
largest category in terms of ownership; estimates do vary, but is above 75 percent in all cases
(Duman 1992, Paisner 1999; Vatts and Tucker 2004). About a third of the companies listed
in Fortune 500 are family businesses (Lee 2004). Since they normally do not have short term
orientation but are interested in growing the family wealth with necessary precautions and
have a different set of strategic goals compared to non-family owned private companies
(Vard, 1987; Sharma, Chrisman and Chua, 1997), their long term contribution to economy is
significant. This is true with the Indian economy too.
However, long term sustenance of family business depends on its smooth survival across
generations as shown in Figure 1. Families that successfully survive three or four generations
have a complex web of structures, agreements, councils and forms of accountability to
manage their wealth (Jaffe and Lane 2004). This seems to be much more evident in the west
compared to emerging economies such as India. Reflecting the complexity of the process
involved, succession planning has been an area of keen interest for researchers. This could be
for a variety of reasons. One, organizational transition from an entrepreneurial stage to a
system driven, professionally managed firm is not easy (Churchill, 1983), and involves
evolutions, revolutions and crisies (Greiner, 1998). Two, there is often a simultaneous
process of transformation taking place in the family and business with the size of activities of
both growing (Kepner 1991; Morris et al 1997; Sharma, Chrisman and Chua 2003)
There are also challenges of multiple stakeholders for the leadership position
(Lansberg,1999). Very often, there is lack of communication between the incumbent and
incoming generations. The incumbents do not know how to handle the succession challenge,
while the incoming generation does not know how to raise it. Studies in the American context
showed that families choose their most competent member(s) to manage the business,
disregarding age, gender or bloodline (Chrisman, Chua and Sharma, 1998). This is a
reflection of the family¶s willingness to separate family hierarchy from organizational
hierarchy. Given the level of socio-economic and cultural contexts prevailing, it is difficult to
be true in the Orient including India. However, post-succession role of the incumbent is not
often planned leading to complications. This could lead to what is often described as ³return
of the father in 18 months´ into the business reflecting the retiring persons return to take
charge of the business again. Hence, there is a need for determining the possible role of the
incumbent as a mentor or non-executive chairperson.
It is also possible for the person to pursue a totally different profession such as teaching!
Retirement related planning is increasingly becoming important with growing longevity of
people.
Although ownership and management succession are the key concerns of a large number of
business families, they do not devote enough attention to the process involved. Studies (Vatts
and Yucker, 2004) have reported that families hesitate to address this issue.
Succession dilemma is also closely related to the family policy on entry of new generation,
retirement of incumbents and mechanisms for resolving conflicts. A number of case studies
on family business taught in leading business schools have brought out the critical role of
open communication within the family in developing and sustaining harmony and growth.
Entry of new members from the family depends also on the µspace¶ available in the
organization, which in turn depends on the success of the business. Vhile management
literature on strategy is rich on vision, not much has been known about the need for
synergizing values and vision of family and business on an ongoing basis. This is particularly
so in a dynamic environment. Family business authors (eg. Carlock and Vard, 2001) have
developed approaches to strategy making in business and family. As discussed by Paisner
(1999), developing a sustainable mechanism for business ownership that does not lead to
inequitable wealth distribution and avoid amoebic type break up, is also an important area of
concern. Paisner¶s idea of a trust route seems to be good, but needs to be empirically
validated.
Families are united over generations by their vision, values and emotional bondage. There is
growing realization that families have a social role to fulfill and be responsible for specific
activities including community development through charity (Gallo, 2004 and Grant
Thornton, 2001). All the five family businesses studied here, like most other big groups, have
their independent entities for charity in the form of trusts, often run by lady members of the
family. This is one way of giving recognition and occupation for ladies, who are not
generally involved in business. There exist an unwritten rule in all the families studied here
that daughters-in-law do not get involved in business while daughters anyway, go to their in-
law¶s house. The current generation shows signs of this rule changing, slowly. Another
source of challenge is in the nature of competitiveness. For instance, when the Indian
economy was opened up in 1991, most Indian Companies, of which a huge majority were
family owned, were put under competitive pressures for the first time. Many firms,
particularly those that grew under government protection (Khanna and Palepu 1997) did not
have a strategy to respond and take it as an opportunity rather than threat for a variety of
reasons (Ray«..). This created huge tensions in business families, sometimes leading to
division of assets. It is also true that most businesses face such competitive pressures at
different stages in their life, under the influence of economic cycles, product life cycles and
firm life cycle.
Competitiveness to survive and grow depends on the organizational capabilities, which flow
from the family directly and from the resources hired from outside. The need to hire non
family resources to build organizations is well recognized. However, an area of conflict is the
decision on the roles and responsibilities of outside professionals. Following the arguments of
Agency theory (Villiamson 1975, Eisenhardt 1989) and the sensitivities of separating
ownership and management in family business, conflicts do arise between owner families
(principals) and non-family professionals (agents). However, whether they do act as self-
centred managers or forms partnership with principals through emotional and non-monetary
relationships (Ghoshal, 2004), depends on the situation. Studies of business histories of a
number of groups (Tripathi, 2004, Karanjia, 1997) confirm that these relationships are not
purely of the classical principalagent type. There is strong personal and family level bondages
out of love and respect, generated over a period of time between the principals and agents.
The extent to which such relationship determines the survival and growth of family
businesses needs separate research, particularly in the days when professionals¶ loyalty is
suspected to be towards their profession and not individual organizations. In essence, the
most important areas of concern for the success

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An Act to provide for facilitating the promotion and development and enhancing the
competitiveness of micro, small and medium enterprises and for matters connected therewith
or incidental thereto. Vhereas a declaration as to expediency of control of certain industries
by the Union was made under section 2 of the Industries (Development and Regulation) Act,
1951; And whereas it is expedient to provide for facilitating the promotion and development
and enhancing the competitiveness of micro, small and medium enterprises and for matters
connected therewith or incidental thereto; Be it enacted by Parliament in the Fifty-seventh
Year of the Republic of India as follows:

1. Short title and commencement.-(1) This Act may be called the Micro, Small and Medium
Enterprises Development Act, 2006.

(2) It shall come into force on such date as the Central Government may, by notification,
appoint; and different dates may be appointed for different provisions of this Act and any
reference in any such provision to the commencement of this Act shall be construed as a
reference to the coming into force of that provision.

2. Definitions.-In this Act, unless the context otherwise requires,²

(a) ³Advisory Committee´ means the committee constituted by the Central Government
under sub-section (2) of section 7; (b) ³appointed day´ means the day following immediately
after the expiry of the period of fifteen days from the day of acceptance or the day of deemed
acceptance of any goods or any services by a buyer from a supplier.

Explanation.²For the purposes of this clause,² (i) ³the day of acceptance´ means,² (a) the
day of the actual delivery of goods or the rendering of services; or (b) where any objection is
made in writing by the buyer regarding acceptance of goods or services within fifteen days
from the day of the delivery of goods or the rendering of services, the day on which such
objection is removed by the supplier; (ii) ³the day of deemed acceptance´ means, where no
objection is made in writing by the buyer regarding acceptance of goods or services within
fifteen days from the day of the delivery of goods or the rendering of services, the day of the
actual delivery of goods or the rendering of services; (c) ³Board´ means the National Board
for Micro, Small and Medium Enterprises established under section 3; (d ) ³buyer´ means
whoever buys any goods or receives any services from a supplier for consideration; (e)
³enterprise´ means an industrial undertaking or a business concern or any other
establishment, by whatever name called, engaged in the manufacture or production of goods,
in any manner, pertaining to any industry specified in the First Schedule to the Industries
(Development and Regulation) Act, 1951 or engaged in providing or rendering of any service
or services; (f) ³goods´ means every kind of movable property other than actionable claims
and money;

medium enterprise´ means an enterprise classified as such under sub-clause

micro enterprise´ means an enterprise classified as such under sub-clause

small enterprise´ means an enterprise classified as such under sub-clause

3.Establishment of Board.- (1) Vith effect from such date as the Central Government may,
by notification, appoint, there shall be established, for the purposes of this Act, a Board to be
known as the National Board for Micro, Small and Medium Enterpris

4.Removal of member from Board.- (1) The Central Government may remove a member of
the Board from it, if he² (a) is, or at any time has been, adjudged as insolvent; or (b) is, or
becomes, of unsound mind and stands so declared by a competent court; or (c) refuses to act
or becomes incapable of acting as a member of the Board; or (d) has been convicted of an
offence which, in the opinion of the Central Government, involves moral turpitude; or (e) has
so abused, in the opinion of the Central Government, his position as a member of the Board
as to render his continuance in the Board detrimental to the interests of the general public.

5.Functions of Board.- The Board shall, subject to the general directions of the Central
Government, perform all or any of the following functions, namely:² (a) examine the factors
affecting the promotion and development of micro, small and medium enterprises and review
the policies and programmes of the Central Government in regard to facilitating the
promotion and development and enhancing the competitiveness of such enterprises and the
impact thereof on such enterprises; (b) make recommendations on matters referred to in
clause (a) or on any other matter referred to it by the Central Government which, in the
opinion of that Government, is necessary or expedient for facilitating the promotion and
development and enhancing the competitiveness of the micro, small and medium enterprises;
and (c) advise the Central Government on the use of the Fund or Funds constituted under
section 12.

6. Powers and functions of Member-Secretary of Board.- Subject to other provisions of this

Act, the Member-Secretary of the Board shall exercise such powers and perform such
functions as may be prescribed. CHAPTER III Classification of enterprises, advisory
committee and memorandum of micro, small and medium enterprises CHAPTER III
Classification of enterprises, advisory committee and memorandum of micro, small and
medium enterprises

7. Classification of enterprises.-(1) Notwithstanding anything contained in section 11B of the

Industries (Development and Regulation) Act, 1951, the Central Government may, for the
purposes of this Act, by notification and having regard to the provisions of sub-sections (4)
and (5), classify any class or classes of enterprises, whether proprietorship, Hindu undivided
family, association of persons, co-operative society, partnership firm, company or
undertaking, by whatever name called,² (a) in the case of the enterprises engaged in the
manufacture or production of goods pertaining to any industry specified in the First Schedule
to the Industries (Development and Regulation) Act, 1951, as² (i) a micro enterprise, where
the investment in plant and machinery does not exceed twenty-five lakh rupees; (ii) a small
enterprise, where the investment in plant and machinery is more than twenty-five lakh rupees
but does not exceed five crore rupees; or (iii) a medium enterprise, where the investment in
plant and machinery is more than five crore rupees but does not exceed ten crore rupees; (b)
in the case of the enterprises engaged in providing or rendering of services, as² (i) a micro
enterprise, where the investment in equipment does not exceed ten lakh rupees; (ii) a small
enterprise, where the investment in equipment is more than ten lakh rupees but does not
exceed two crore rupees; or (iii) a medium enterprise, where the investment in equipment is
more than two crore rupees but does not exceed five crore rupees. Explanation 1.²For the
removal of doubts, it is hereby clarified that in calculating the investment in plant and
machinery, the cost of pollution control, research and development, industrial safety devices
and such other items as may be specified, by notification, shall be excluded.

³8. Memorandum of micro, small and medium enterprises.- (1) Any person who intends to
establish,² (a) a micro or small enterprise, may, at his discretion, or (b) a medium enterprise
engaged in providing or rendering of services may, at his discretion; or (c) a medium
enterprise engaged in the manufacture or production of goods pertaining to any industry
specified in the First Schedule to the Industries (Development and Regulation) Act, 1951
9.Measures for promotion and development.- The Central Government may, from time to
time, for the purposes of facilitating the promotion and development and enhancing the
competitiveness of micro, small and medium enterprises, particularly of the micro and small
enterprises, by way of development of skill in the employees, management and entrepreneurs,
provisioning for technological upgradation marketing assistance or infrastructure facilities
and cluster development of such enterprises with a view to strengthening backward and
forward linkages, specify, by notification, such programmes, guidelines or instructions, as it
may deem fit.

10.Credit facilities.- The policies and practices in respect of credit to the micro, small and
medium enterprises shall be progressive and such as may be specified in the guidelines or
instructions issued by the Reserve Bank, from time to time, to ensure timely and smooth flow
of credit tosuch enterprises, minimise the incidence of sickness among and enhance the
competitiveness of such enterprises.

11.Procurement preference policy.- For facilitating promotion and development of micro and
small enterprises, the Central Government or the State Government may, by order notify
from time to time, preference policies in respect of procurement of goods and services,
produced and provided by micro and small enterprises, by its Ministries or departments, as
the case may be, or its aided institutions and public sector enterprises.

12.Funds.- There shall be constituted, by notification, one or more Funds to be called by such
name as may be specified in the notification and there shall be credited thereto any grants
made by the Central Government under section 13.

13. Grants by Central Government.-The Central Government may, after due appropriation
made by Parliament by law in this behalf, credit to the Fund or Funds by way of grants for the
purposes of this Act, such sums of money as that Government may consider necessary to
provide.

14.Administration and utilisation of Fund or Funds.- (1) The Central Government shall have
the power to administer the Fund or Funds in such manner as may be prescribed.

(2) The Fund or Funds shall be utilised exclusively for the measures specified in sub-section
(1) of section 9.

(3) The Central Government shall be responsible for the coordination and ensuring timely
utilisation and release of sums in accordance with such criteria as may be prescribed.
CHAPTER V Delayed payments to micro and small enterprises CHAPTER V Delayed
payments to micro and small enterprises

15.Liability of buyer to make payment.- Vhere any supplier, supplies any goods or renders
any services to any buyer, the buyer shall make payment therefor on or before the date agreed
upon between him and the supplier in writing or, where there is no agreement in this behalf,
before the appointed day: Provided that in no case the period agreed upon between the
supplier and the buyer in writing shall exceed forty-five days from the day of acceptance or
the day of deemed acceptance.
16.Date from which and rate at which interest is payable.- Vhere any buyer fails to make
payment of the amount to the supplier, as required under section 15, the buyer shall,
notwithstanding anything contained in any agreement between the buyer and the supplier or
in any law for the time being in force, be liable to pay compound interest with monthly rests
to the supplier on that amount from the appointed day or, as the case may be, from the date
immediately following the date agreed upon, at three times of the bank rate notified by the
Reserve Bank.

17.Recovery of amount due.- For any goods supplied or services rendered by the supplier, the
buyer shall be liable to pay the amount with interest thereon as provided under section 16.

18.Reference to Micro and Small Enterprises Facilitation Council.- (1) Notwithstanding

anything contained in any other law for the time being in force, any party to a dispute may,
with regard to any amount due under section 17, make a reference to the Micro and Small
Enterprises Facilitation Council.

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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. The legal definition of "small"
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 as having fewer than 100 employees.In the European Union, a
small business generally has under 50 employees. However, in Australia, a small business is
defined by the 
 

›  as one with fewer than 15 employees. By comparison, a
medium sized business or mid-sized business has under 500 employees in the US, 250 in the
European Union 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.

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, restaurants, guest houses,
photographers, small-scale manufacturing etc.

The smallest businesses, often located in private homes, are called microbusinesses (term
used by international organizations such as the Vorld Bank and the International Finance
Corporation) or SoHos. The term "mom and pop business" is a common colloquial
expression for a single-family operated business with few (or no) employees other than the
owners. Vhen judged by the number of employees, the American and the European
definitions of a microbusiness are the same: under 10 employees. There is a notable trend to
further segment different-sized microbusinesses; for instance, the term Very Small Business
is now being used to refer to businesses that are the smallest of the smallest, such as those
operated completely by one person or by 1-3 employees.

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Small Business Administration has seen lots of small businesses come and, unfortunately, go.
According to the SBA, over 50% of small businesses fail in the first five years. Vhy? Vhat
goes wrong?

In his book Small Business Management, Michael Ames gives the following reasons for
small business failure:

1. Lack of experience

2. Insufficient capital (money)

3. Poor location

4. Poor inventory management

5. Over-investment in fixed assets

6. Poor credit arrangements

7. Personal use of business funds

8. Unexpected growth

Gustav Berle adds two more reasons in The Do It Yourself Business Book:

9. Competition

10. Low sales

These figures aren't meant to scare you, but to prepare you for the rocky path ahead.
Underestimating the difficulty of starting a business is one of the biggest obstacles
entrepreneurs face. However, success can be yours if you are patient, willing to work hard,
and take all the necessary steps.

On the Upside

It's true that there are many reasons not to start your own business. But for the right person,
the advantages of business ownership far outweigh the risks.
You will be your own boss. Hard work and long hours directly benefit you, rather than
increasing profits for someone else. Earning and growth potential are far greater. A new
venture is as exciting as it is risky. Running a business provides endless challenge and
opportunities for learning.

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A quick start business is one that you can implement and put into action right now. Do you
want to start a business now that is going to start putting money into your account? You can
find links, information and directories on this site that will lead you to the answers you have
been searching for about a quick start business.

In starting any business, you should form a business plan. A business plan is going to help
you set goals. Set goals for your business that you can turn back to, that you can reflect about
when you need to take action to expand and create additional sales for your business during
the growing stages of business.

Your quick start business plan is going to tackle some quick topics such as:

°? Vho am I going to sell to?

°? Vhere will the product come from?
°? Do I need to invest a lot of money?
°? Do I need a large space?
°? Vill I operate online or offline, or perhaps both?
°? Vhere is my customer from?
°? How much can I make on every product I sell?

Vhen you can answer these questions, you have researched your quick start business fairly
well and are ready to put your plan into action. The business owner, who is well informed, is
more likely to be successful in the long run. Avoid investing or starting any business without
being able to answer those quick questions listed above.

Tips for a quick start business owner

Before jumping into any business you should be aware of what an entrepreneur, what a
business owner most often needs to have within their self before starting a business. The
entrepreneur is one that is self-confident. You have to be confident in your abilities, in your
skills and in your dedication. Good ethics and good work habits are traits of an entrepreneur.
Ve each have our own values, which will apply to any and all situations within our lives.
Being able to apply ethics and work habits to a quick start business will give you an edge, to
be more successful. Yet, another trait of the entrepreneur is good communication skills.
Quick start businesses are built to last. In order for a business to last and be profitable, good
communication between vendors, customers and you as the business owner will be vital.

Additionally, for your success we suggest that an entrepreneur is one that is able to deal with
failure, learn from mistakes and continue to move on in the business. Failures are a learning
experience and will benefit you if you learn from them and move on. Dwelling on mistakes
and failures will spell doom for your business, no matter what type of business you start.
Take charge of your life; take charge of your business, be your own boss using your creative
ideas along with the quick start business ideas to build a business for yourself. You make
your own choices. As you investigate and learn about any type of quick start business, you
will find there is one out there, just waiting for you to put it into action.

2
  

Simply, a franchise business is a method a company uses to distribute its products or services
through retail outlets owned by independent, third party operators. The independent operator
does business using the marketing methods, trademarked goods and services and the
"goodwill" and name recognition developed by the company. In exchange, the independent
operator pays an initial fee and royalties to the owner of the franchise.

The company that grants the independent operator the right to distribute its trademarks,
products, or techniques is known as the franchiser. The independent, third party business
person distributing the franchiser's products or services through retail or service outlets is
called the franchisee.

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So, what is outsourcing? Outsourcing is contracting with another company or person to do a
particular function. Almost every organization outsources in some way. Typically, the
function being outsourced is considered non-core to the business. An insurance company, for
example, might outsource its janitorial and landscaping operations to firms that specialize in
those types of work since they are not related to insurance or strategic to the business. The
outside firms that are providing the outsourcing services are third-party providers, or as they
are more commonly called, service providers.

Although outsourcing has been around as long as work specialization has existed, in recent
history, companies began employing the outsourcing model to carry out narrow functions,
such as payroll, billing and data entry. Those processes could be done more efficiently, and
therefore more cost-effectively, by other companies with specialized tools and facilities and
specially trained personnel.

Currently, outsourcing takes many forms. Organizations still hire service providers to handle
distinct business processes, such as benefits management. But some organizations outsource
whole operations. The most common forms are information technology outsourcing (ITO)
and business process outsourcing (BPO).

Business process outsourcing encompasses call center outsourcing, human resources

outsourcing (HRO), finance and accounting outsourcing, and claims processing outsourcing.
These outsourcing deals involve multi-year contracts that can run into hundreds of millions of
dollars. Frequently, the people performing the work internally for the client firm are
transferred and become employees for the service provider. Dominant outsourcing service
providers in the information technology outsourcing and business process outsourcing fields
include IBM, EDS, CSC, HP, ACS, Accenture and Capgemini.

Some nimble companies that are short on time and money, such as start-up software
publishers, apply multisourcing -- using both internal and service provider staff -- in order to
speed up the time to launch. They hire a multitude of outsourcing service providers to handle
almost all aspects of a new project, from product design, to software coding, to testing, to
localization, and even to marketing and sales.

The process of outsourcing generally encompasses four stages: 1) strategic thinking, to

develop the organization's philosophy about the role of outsourcing in its activities; 2)
evaluation and selection, to decide on the appropriate outsourcing projects and potential
locations for the work to be done and service providers to do it; 3) contract development, to
work out the legal, pricing and service level agreement (SLA) terms; and 4) outsourcing
management or governance, to refine the ongoing working relationship between the client
and outsourcing service providers.

In all cases, outsourcing success depends on three factors: executive-level support in the
client organization for the outsourcing mission; ample communication to affected employees;
and the client's ability to manage its service providers. The outsourcing professionals in
charge of the work on both the client and provider sides need a combination of skills in such
areas as negotiation, communication, project management, the ability to understand the terms
and conditions of the contracts and service level agreements (SLAs), and, above all, the
willingness to be flexible as business needs change.

The challenges of outsourcing become especially acute when the work is being done in a
different country (offshored), since that involves language, cultural and time zone
differences.

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U › 

›  is the term used when investors buy part of a company. A venture capitalist
places money in a company that is high risk and has a high growth. The investment is usually
for a period of five to seven years. The investor will expect a return on his money either by
the sale of the company or by offering to sell shares in the company to the public.

Vhen investing venture capital, the investor may want receive a percentage of the company¶s
equity, and may also wish to have a position on the director¶s board. Always remember that
an investor who agrees to place venture capital in a company is looking to make a healthy
return. She can demand repayment by the sale of the company, asking for her funds back or
renegotiating the original deal.

There are three different types of venture capital investment.  ›  
 

 includes
seed financing, start-up financing and first stage financing.  
 

 refers to a small
amount of venture capital given to an entrepreneur or inventor who wishes to start a business.
It may be used to build a management team, for market research or to develop a business
plan.

› ›
 

 refers to venture capital that is given when a business has been operating
for less than a year. Their product will not have been sold commercially yet, and they will
just be ready to start doing so. 
››  
 

 is used when companies wish to expand
their capital and to proceed full scale and enter the public business arena.

Another type of venture capital investment is  
 
 

. This covers second and
third stage financing and bridge financing. 
 ›  
 

 is an investment used to
expand a company that is already on its feet. The company is trading and has growing
accounts and inventories, although it may not yet be showing a profit.


 ›   
 

 is an investment to companies that are breaking even or becoming
profitable. The venture capital is used to expand the business. It may be used in the
acquisition of real estate or for further in-depth product development.


  
 

 covers a variety of different meanings. It is a short term, interest only
investment. It is used when company restructuring is taking place. The money can also be
used if an initial investor wants to liquidate his position and sell his stock.

Another common form of venture capital is


›

 

, in which the investment is
used to acquire a percentage or the whole of another company. Venture capital can also be
used by a management group to buy out another a line of products or business, regardless of
their stage of development. The company they buy out can either be a private or a public
company.

DAYA NADAR