A PROJECT REPORT

“A STUDY ON THE FINANCIAL CHALLENGES FACEED BY START-UP

ENTERPRISE AT MIHIRA INC, BANGALORE”.

Dissertation submitted in partial fulfillment of the requirements for

The award of the degree of
MASTER OF BUSINESS ADMINISTRATION OF

BANGALORE UNIVERSITY

Submitted
BY
ALI MABROOK ALI BIN BESHR
Reg. No. 17QTCMD057
Under the guidance of

NIROSHA

PROFESSOR

AVK INSTITUTE OF MANAGEMENT

Sy No. 69, Pipe Line Road, BWSSB Road, Chikkagollarahatti,
Vishwaneedam Post, Bengaluru, Karnataka – 560091
2018-2019
TITLE OF STUDY:

“A STUDY ON THE FINANCIAL CHALLENGES FACEED BY START-UP ENTERPRISE AT MIHIRA INC,

BANGALORE”.

The study was conducted only in (Bangalore) and therefore, several other potential samples
outside the city were neglected.

INTRODUCTION:

Today, the startup company is a young company that is just beginning to develop. startup are
equally small and initially financed and operated by handful of founders or individual. In the
early stages startup companies’ expenses tend to exceed their revenue as they work on
developing and testing and marketing the area. To fulfill these requirements financing is a must.
It may be funded by small traditional business loans from banks and government schemes.
Mihira Inc is a company that was established in 2013 in Bangalore which promotes the Indian
culture of clothing exclusively for girls from just born up to 15 years. this company offers
product and service that is not currently being offered elsewhere in the market. At the same time
what are the financial challenges that the company has to face is the main concern of this project.
.

Literature Review:

The literature review describes aspects connected to the study of the challenges faced by
SMEs in obtaining credit in Mihira's Inc. It therefore follows a particular layout. First, some
definitions relating to SMEs are given, which is followed by looking at the characteristics of
the Ghanaian SMEs. This paves the way for the discussion of their contribution to the
economic development and growth and also looked at literatures on the constraints SMEs
faced in accessing credit. Attention will then be focus on the type of financing available to
these SMEs without forgetting to also look at the sources of credit/finance for these SMEs.
In the final sub-sections, we will delve into how SME development can be promoted and the
importance of financial institutions (banks) in helping the development of these SMEs. And
the company there more than 10 to 25 employee as well as they do their process day by day
according to manager.

Company Profile:

'Mihira', is a clothing brand for little girls from new born to 15-year-old. It is a boutique for all
clothing needs of young girls. We offer ready to wear and also do customized clothing. One can
have a look at our collection of fabric for little ones from Khadi cottons to silk, natural dyed
ajrak, batik, Jaipuri cottons to lace fabrics, pure chiffon, Georgette and silk sheers. At 'Mihira',
we understand the tenderness of our customers and their charming personality with bobbling
energy so, we have our mantra of SIMPLICITY & POISE carried through our collection
reaching out to need of our little angel. We design and make clothing for young girls, just to be
their second skin! Mihira works on a concept of comfortable wearing yet being with the flow of
fashion. Creativity & innovation go hand in hand in Mihira's . kids clothing brand. The product
development is driven by intense research along with creativity & innovation. Mihira believes is
assimilating the traditional core design value and translating the same into newer forms thereby
by enlivening the art forms and heritage of desi art through the future generations. Mihira's
collection depicts its focus and passion towards art, design and fashion as a whole. The
incredible sources of desi art, forms the pedestal for Mihira as a brand, showcasing a wide range
of clothing collection.

STATEMENT OF THE PROBLEM:

Mihira's Inc is a company that was established in 2013 in Bangalore which promotes the Indian
culture of clothing exclusively for girls from just born up to 15 years. Through the Startup India
initiative, Government of India promotes entrepreneurship by mentoring, nurturing and
facilitating startups throughout their life cycle. Since its launch in January 2016, the initiative
has successfully given a head start to numer ous aspiring entrepreneurs. With a 360-degree
approach to enable startups, the initiative provides a comprehensive four -week free online
learning program, has set up research parks, incubators and startup centers across the country by
creating a strong network of academia and industry bodies. More importantly, a ‘Fund of Funds’
has been created to help startups gain access to funding. At the core of the initiative is the effort
to build an ecosystem in which startups can innovate and excel without any barri ers, through
such mechanisms as online recognition of startups, Startup India Learning Programmed,
Facilitated Patent filing, Easy Compliance Norms, Relaxed Procurement Norms, incubator
support, innovation focused programmers for students, funding support, tax benefits and
addressing of regulatory issues. And how we will get loan from bank as well for beginning start-
up business so that will get place and all document required.

Need of the Study

To know the Avenues of financial succor for SMEs & Startups in India with reference to SME
clusters in Mihira's Inc.

OBJECTIVES OF THE STUDY:

• To study the financing challenging faced by start-up in India.

• To study the problems of entrepreneurs while running the enterprise efficiently and
profitably.
• to explore the main difficulties facing startups in India

• To understand the financial process required by Indian while going to the bank, And to
enable to process the document. that should have it when running a small or medium
enterprise.

• To understand the market and how technology are important for our company.

Scope of the study:

The benefit of the study for the researcher is that it helped to gain knowledge and experience and
also provided the opportunity to study and understand the prevalent marketing procedures.
The key points of my research study are:

1. No tax on income from Startups

2. 1-day incorporation
 3. Skilling India
4. MUDRA scheme
5. Presumptive taxation scheme
6. Corporate tax for Small Companies Service Tax exemption

RESEARCH METHODOLOGY:
In this project report we have undertaken quantitative type of study. Research design means
adopting that type technique of research which is most suited for the research and study of the
problem. For the study and the research of the problem proper material has to be selected and
collected for the investigation. the study has been divided mainly into two parts. On supply
side, case carried out on financial challenging faced by startup enterprise and how their
investment policy.

Sample:
Sampling is process of selecting units (e. g people, organizations) from population of interest so
that by studying the sample we may understood our results back to the population from
which they were chosen . Here we have taken 50 employees as sample from total 100
employees that make almost 50% of employees. A sample design is made up of two elements.
Sampling refers to the rules and Procedures by which some elements of the population are
included in the sample. Some common sampling methods are simple random sampling, stratified
sampling, and cluster sampling.

Type of the questions:

The questions in the questionnaire asked to the employees at head office Mihira's Inc Bangalore.

Type of the Questionnaire:

The questionnaire in this project report is straight forward and formalized.

Type of Analysis:
The analysis done in this particular project report is statistical.

Sources of Data:

a. Primary Data:
• Interview with Owner of the company Mihira's Inc.
• Discussion sessions with senior officers as well.

b. Secondary Data:
The secondary data are those which have already been collected by someone else and which
have been passed through the statistical process. Secondary data was collected through company
websites.

• Mihira Inc web site

• Job description for each employees of Mihira's Inc.

Duration of study: The study was carried out for a period of 2 and half month.

TOOLS FOR DATA COLLECTION:

• Observation
• Interaction with company staff
• Questionnaire and interview methods
• Discussion with branch manager
• Websites were used as the vital information sources

LIMITATION OF STUDY:
 • There is no free access to the employee allowance information.

• The duration of study approximately 2.5 months still not enough to cover the whole
system.

• The study only can be done in office time.

CONCLUSION:
To be successful in sustainable business practices often requires entrepreneurship and
innovation. This chapter provides an overview of entrepreneurship and innovation as it relates to
sustainable business. The importance of entrepreneurship and innovation also applies to
companies that change how they produce products and services. The latter companies can use
innovative practices and entrepreneurship to establish their brand name and to be market leaders
in doing things that create shared value for society and their companies and also, over time,
contribute to changes in practices in their industry. If we understand what we doing and know
how to minimize the risks and challenges, the independence, personal satisfaction and financial
rewards we can achieve as an entrepreneur mean that starting a small business could be the best
decision we will ever make. The purpose of this literature review is to explain and critically
analyses the work that has been reported on problems and challenges faced in entrepreneurship.
Having identified these gaps, we have established my topic, identifying the problem small
business face in entrepreneurship. Identifying the key terms of the literature terminology is
crucial as it includes the dependent variable and independent variables.

CHAPTER SCHEME:

Chapter.1

INTRODUCTION

• Introduction to the subject

• Introduction to the topic
• Overview of the Industry
 Chapter.2

RESEARCH DESIGN

• Title of the study

• Statement of problem
• Objectives of the study
• Scope of the study
• Research Methodology
• Sample design
• Data collection
Chapter.3

COMPANY PROFILE

• Vision, Mission
• Organization structure
• Competitors
• Future prospects
Chapter.4

DATA ANALYSIS

• Tables, Graphs,
• Analysis and interpretation
Chapter.5

SUMMARY AND SUGGESTIONS

• Findings
• Suggestions
• Conclusion