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1 CHAPTER-1 INTRODUCTION 1.1 ENTREPRENEUR& ENTREPRENEURSHIP Entrepreneur is an individual who rather than working as an employee, runs a small business and assumes all the risk and reward of the given business venture, idea or goods & services offered for sale. Usually, the entrepreneur is seen as a business leader and innovator of new ideas and business processes. Entrepreneurs play a key role in the economy. These are the people who have the skills and initiative necessary to take new ideas to market and make the right decisions to make the idea profitable. The reward for the risks taken is the potential economic profits the entrepreneur could earn. Entrepreneurship is the process of identifying and starting a business venture, sourcing & organizing the required resources and taking both the risks and rewards associated with the venture. A new business started by an entrepreneur is referred as a start- up company. 1.2 COMPETENCIES OF ENTREPRENEURS 1. Organization and planning: setting and attaining goals, managing time commitments, and keeping work schedules. 2. Handling money: determining budgets, securing loans, raising funds, keeping financial records, and completing income tax forms. 3. Selling ideas and products: determining sales quotas and projections; presenting projects for committees, organizations and/or administrative groups; direct selling to customers or clientele; handling criticism and rejection. 4. Management: experience in managing all or part of a small business or an agency, serving as director or major officer of an organization. 5. Working with people: mediating or arbitrating between people with opposing views when the situation requires; organizing and planning large public events; assuming

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CHAPTER-1

INTRODUCTION

1.1 ENTREPRENEUR& ENTREPRENEURSHIP

Entrepreneur is an individual who rather than working as an employee, runs a small

business and assumes all the risk and reward of the given business venture, idea or goods &

services offered for sale. Usually, the entrepreneur is seen as a business leader and innovator

of new ideas and business processes. Entrepreneurs play a key role in the economy. These are

the people who have the skills and initiative necessary to take new ideas to market and make

the right decisions to make the idea profitable. The reward for the risks taken is the potential

economic profits the entrepreneur could earn.

Entrepreneurship is the process of identifying and starting a business venture,

sourcing & organizing the required resources and taking both the risks and rewards

associated with the venture. A new business started by an entrepreneur is referred as a start-

up company.

1.2 COMPETENCIES OF ENTREPRENEURS

1. Organization and planning: setting and attaining goals, managing time commitments,

and keeping work schedules.

2. Handling money: determining budgets, securing loans, raising funds, keeping

financial records, and completing income tax forms.

3. Selling ideas and products: determining sales quotas and projections; presenting

projects for committees, organizations and/or administrative groups; direct selling to

customers or clientele; handling criticism and rejection.

4. Management: experience in managing all or part of a small business or an agency,

serving as director or major officer of an organization.

5. Working with people: mediating or arbitrating between people with opposing views

when the situation requires; organizing and planning large public events; assuming

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officer or executive secretary positions in an organization, and/or handling complaints

for an organization or company; getting along well with most people.

6. Ability to take risks: taking moderate, calculated risks in varied situations (situations

where the chance of winning was not so small as to be a ―gamble‖ or so large as to be

a ―sure thing‖ situations where there was a reasonable and challenging chance of

success).

7. Willingness to lead and to work alone: being self-disciplined; handling situations

which were ambiguous and full of uncertainty as to the job requirements; working

calmly and efficiently in the midst of an emergency or crisis.

8. Personality traits: taking the initiative in situations requiring it; accepting and

accomplishing more than your share of the work; willingness to work hard even if the

financial rewards are slow in coming; establishing high standards of performance and

raising them once they are met.

9. Knowledge of products and/or skills in the service offered by your business or in

producing your product: willingness to do self-study, research, and planning to

improve business operations.

1.3 THE ENTREPRENEURIAL PROCESS

The process of starting a new venture is embodied in the entrepreneurial process,

which involves more than just problem solving in a typical management position. An

entrepreneur must find, evaluate, and develop an opportunity by overcoming the forces that

resist the creation of something new. The process has four distinct phases:

1. Identification and evaluation of the opportunity,

2. Development of the business plan,

3. Determination of the required resources, and

4. Management of the resulting enterprise.

Although these phases proceed progressively, no one stage is dealt with in isolation or

is totally completed before work on other phases occurs. For example, to successfully

identify and evaluate an opportunity (phase 1), an entrepreneur must have in mind the type of

business desired (phase 4).

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Identify and Evaluate the Opportunity

Opportunity identification and evaluation is a very difficult task. Most good business

opportunities do not suddenly appear, but rather result from an entrepreneur’s alertness to

possibilities, or in some case, the establishment of mechanisms that identify potential

opportunities. For example, one entrepreneur asks at every cocktail party whether anyone is

using a product that does not adequately fulfill its intended purpose. This person is

constantly looking for a need and an opportunity to create a better product. Another

entrepreneur always monitors the play habits and toys of her nieces and nephews. This is her

way of looking for any unique toy product niche for a new venture.

Although most entrepreneurs do not have formal mechanisms or identifying business

opportunities, some sources are often fruitful: consumers and business associates, members

of the distribution system, and technical people. Often, consumers are the best source of

ideas for a new venture

Due to their close contact with the end user, channel members in the distribution

system also see product needs. One entrepreneur started a college bookstore after haring all

the students complain about the high cost of books and the lack of service provided by the

only bookstore on campus. Many other entrepreneurs have identified business opportunities

through a discussion with a retailer, wholesaler, or manufacturer’s representative.

Finally, technically oriented individuals often conceptualize business opportunities

when working on other projects. One entrepreneur’s business resulted from seeing the

application of a plastic resin compound in developing and manufacturing a new type of pallet

while developing the resin application in another totally unrelated area—casket moldings.

Whether the opportunity is identified by using input from consumers, business

associates, channel members, or technical people, each opportunity must be carefully

screened and evaluated. This evaluation of the opportunity is perhaps the most critical

element of the entrepreneurial process, as it allows the entrepreneur to assess whether the

specific product or service has the returns needed compared to the resources required. This

evaluation process involves looking at the length of the opportunity, its real and perceived

value, its risks and returns, its fit with the personal skills and goals of the entrepreneur, and its

uniqueness or differential advantage in its competitive environment.

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The market size and the length of the window of opportunity are the primary basis for

determining the risks and rewards. This risk reflects the market, competition, technology,

and amount of capital involved. The amount of capital needed provides the basis for the

return and rewards. The methodology for evaluating risks and rewards frequently indicates

that an opportunity offers neither a financial nor a personal reward commensurate with the

risks involved.

Finally, the opportunity must fit the personal skills and goals of the entrepreneur. It is

particularly important that the entrepreneur be able to put forth the necessary time and effort

required to make the venture succeed. Although many entrepreneurs feel that the desire can

be developed along the venture, typically it does not materialize. An entrepreneur must

believe in the opportunity so much that he or she will make the necessary sacrifices to

develop the opportunity and manage the resulting organization.

1.4 ENTREPRENEURSHIP IN INDIA

In a mixed economy, as India was defined by architects of this republic, with the

public sector having the definite upper hand, the role of the state becomes very crucial. By its

very nature such an economic system could not adequately focus entrepreneurs as catalyst of

economic development. The state rather assumed the role of the major entrepreneur. Possibly

and rightfully so, the overriding concern of the newly independent country related to

correcting the anomalies and distortions created by the colonial rule.

Issues like employment generation, distributive justice and balanced regional

development thus occupied the centre stage of industrial policy making in India. The first

Industrial policy resolution of 1948 was a solid statement of the country's philosophy of

growth, the vital aspect of which was industrialization under government regulation.

Naturally neither this policy nor the subsequent ones made any specific reference to the

entrepreneur or entrepreneurship. It is interesting to note that even the small scale sector,

which later came to be known as ' the breeding ground of indigenous entrepreneurship', has

been promoted and nurtured for its potential for addressing the larger developmental

concerns. Such concerns, together with a gradually expanding public sector had set out a

framework of industrialization where the cornerstones were controls, regulation and

restrictions for the large industries and a wide protective umbrella with special incentives and

institutions for the small ones.

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Entrepreneurship must be developed and supported so that there is a proliferation of

SMEs in the country. An entrepreneur's entry into business does not guarantee his/her

survival. Attrition rate for new entrepreneurs is very high in many countries of the world.

While this may be because their chosen business inappropriate or a lack of adequate technical

or business expertise, one critical reason is that overall macro and micro environment in

which they are forced to operate. Therefore a key consideration by the government should be

to critically evaluate the exiting macroeconomic policies and their impact on grassroots

entrepreneurship development.

1.5 OBJECTIVES OF THE PROJECT

The following are the objectives

To provide student interns with an opportunity to develop professionally

Acquire real-world entrepreneurial experiences

Apply class room learning to the work place

To know the functions of various departments

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CHAPTER-2

COMPANY PROFILE

2.1 DESCRIPTION OF THE ENTERPRISE

Name of the company : S-Kumar Engineering Works

Address : 14, Raju Naidu 2nd

Street

Behind Velan Theatre, Ganapathy

Coimbatore – 641 006

Telephone No : +91-98944 30303

E-Mail : [email protected]

Products : All Kind of medical equipment’s

Establishment of the business : 06-10-1988

Annual turnover : 1.5 crores

Long term aim of the business

Their long term aim is to establish their business in big level and satisfy the requirements of

the clients based in various parts of the country.

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Organizational chart

2.2 MARKET ANALYSIS

Target market

The company, S-Kumar engineering works mainly targets the hospital for production

of medical equipment.

Total market size for the product/ service

Market size of S-Kumar engineering works cover major parts in and around

ganapathy, gandhipuram, saganoor, kalapathi and annur. They also have some customers in

Andhra. They have around 75 customers in above mentioned locations.

MANAGING

DIRECTOR

CHIEF

ACCOUNTANT

SUPERVISOR

LABORS

CLEANER

ACCOUNTANT

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Market trends

S-Kumar engineering works does not have any season time sale of equipment’s, it

have continuous sales. Medical Gas Outlets, Operation Theatre Pendant and Medical Gas

Pipeline selling is the service offered by S-Kumar engineering works based on request of the

customers.

Profile of competitors

Competitors of S-Kumar engineering works are high in number, even in ganapathy

area there are many competitors available. In specific there is no profile for competitors. The

other engineering works companies in ganapathy area are considered to be competitors for S-

Kumar engineering works in general.

Competitive advantage

The company provides the goods based on the needs of the customers. They provide

the medical equipment’s which were asked by the customer. The company provides medical

gas outlets, operation theatre pendant and medical gas pipeline

Benefits to Customers

Customers get quality medical equipment’s with low commission rate when compared

to competitors and friendly service is provided in buying medical equipment’s.

Customers also can pay money in due period need not to pay in full.

S-Kumar engineering works had its own vehicle for delivery of medical equipments

in time to its customers with low cost.

2.3 MARKETING/SALES STRATEGY

Income sources

Sources of income is predominantly based on

1. Commission from suppliers and customers.

2. Selling of medical equipment’s.

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Marketing strategy

It is very much important for any engineering works companies to safeguard the products

and deliver it on time without any physical damage. They have their own godown to carry the

inventory without any damages and they have their own vehicle to deliver the goods on time.

Pricing

This engineering work business is an open market trading. So the price varies as per

demand. The level of the price variation is up to 20% per order.

The pricing method is

1. Price per medical equipment within the time period

2. Price per medical equipment without any time period.

Advertising and promotions

The company does not have any advertising and promotion activities. Because the goods,

medical equipment’s not need have any advertisements and promotions.

2.4 Staffing and operations

Staffing and roles

There are 15 employees were working in S.M.Textiles including the owner. Roles of

the employees are

Mr.Sivakumar Veluswamy : Managing director

Mrs.S.Prema : Chief accountant

Mr.Ashok : Accountant

Mr.Sasi kumar : Godown Supervisor

Mr.Vijayan : Labor Head

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Purchase

Source:

They purchase the goods from the steel mills. They purchase all kind of steel

products. They purchase the goods based on the needs of the customer. Sometimes

they purchase the goods to carrying inventory also.

Process:

First they received the orders from the customers and they place the order in

the mills. Once the order is ready they purchase the goods from the mills and

delivered the goods to the customers. Sometimes they purchase the steel for their

inventory purpose also.

Documents:

They file all the documents like receipts, bills, etc. for auditing purposes. The

documents are filed and kept by owner of the company itself.

Inventory and storing

The company has its own godown for carrying the medical equipment’s. They

stored more than 100 medical equipment’s in their godown. They were carrying the inventory

regularly. Once the goods are dispatched from the inventory, immediately they place an order

and hold the stock in the godown.

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Operational process

Receiving the orders from the customers

Placing the orders to the suppliers

Purchasing the goods from the suppliers

Delivering the goods to the customer

2.5 Finances

2.5.1 Source of funding

The sources of funds are

1. Contribution from Director of the company.

2. Loan from State Bank of India.

The director of the company contributes 70% of the capital amount and the company

got the bank loan for balance 30% of the capital amount.

2.5.2 Types of funds available

The company availed by the two types of funds. One is a bank Loan from the State

Bank of India and another one is contribution from the director of the company.

2.5.3 Cost of funds

The interest rate for the bank loan is 12.50%.

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2.5.4 Accounts maintenance

All the accounts are maintained by the chief accountant and accountant. The accounts

are maintained in the computer. Managing director regularly check the accounts.

2.5.5 Profitability and loss

Last year turnover of the company was 1.5 cr. and the profit of the company is 2%

(approximately).

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CHAPTER-3

DIALOGUE WITH THE ENTREPRENEUR – INTERVIEW

Entrepreneur Name : Mr. Sivakumar Veluswamy

Name of the Enterprise : S-K Engineering’s Works

Type of Business : Production and Trading of Medical equipment’s

Educational Background : HSS

Year of Inception : 1988

Interviewer : Who inspired you to start up this business?

Entrepreneur : I know this business from my childhood since it is my family

business. I went for a job in manufacturing plant which is related to this business. And I

learned many things about this business. After that I started this business.

Interviewer : Who is your role model?

Entrepreneur : I perceive my father as my role model. Mainly because he is the

reason why I started doing this business.

Interviewer : What are all the qualities needed for an entrepreneur?

Entrepreneur : The entrepreneur must know something about that business before he

starts it. The entrepreneur must know what the processes in that business. The entrepreneur

must know the market places of the business. And also the entrepreneur must know the needs

of the product in the market and must be punctual in delivering the product.

Interviewer : Do you think formal education is necessary to succeed as an

entrepreneur?

Entrepreneur : Education is an important thing for an entrepreneur in the current

scenario. Then out of experience he must know the tricks in the business. And the education

is useful for maintaining the accounts.

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Interviewer : Tell me about the initial periods of your business – successes and

challenges

Entrepreneur : In the initial period of my business very difficult because of limited

financial resources.

Interviewer : How has your business grown since inception?

Entrepreneur : Initially it was at a lower scale but now it is has expanded very much

because of so many contacts.

Interviewer : Are challenges different now? How?

Entrepreneur : The only challenge in my business is competition. We have to

provide good quality products to have an edge over our competitors.

Interviewer : What is your average working hour per day?

Entrepreneur : Around 10 to 12 hours.

Interviewer : What are the things that you like best in your business and what are

the most worrisome aspects?

Entrepreneur : We have to more customers friendly. There is a price fluctuation in

this business. So we want to accept the loss also.

Interviewer : Is it possible to be ethical and honest in the business?

Entrepreneur : Off course, there should be an honest and ethical in whatever

business you are running and there should be a good quality of your product. Only then the

business will sustain for a longer period of time.

Interviewer : What are the future plans of your business?

Entrepreneur : To expand this business in bigger level. To start secondary

manufacturing plant in other locality.

Interviewer : Would your children continue your business?

Entrepreneur : It depends on their decision and willingness to work in the company.

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Interviewer : What three pieces of advice would you give to a young entrepreneur

starting out today?

Entrepreneur:

1. First we want to have interest in doing business

2. Take our negatives as positives.

3. Don’t get fear about the financial status.

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CHAPTER-4

SWOT ANALYSIS OF S.M.TEXTILES

STRENGTH:

Their involvement in the working on to this business.

They have their own godown for carrying the inventory.

The labors of 15 people are their strength.

They have their own vehicle for the transportation of goods.

WEAKNESS:

The labors are also the weakness of the industry.

Hike in the price of goods. i.e. raw materials.

Lack of proper modes of distribution and Time consumed in transit.

Higher Indirect Taxes, Power and Interest Rates.

They have carrying only minimum amount of goods in inventory.

They have only one vehicle for transportation.

OPPORTUNITIES:

Trying to establish their business in and around the tamilnadu.

To acquire more buyers.

Large, Potential Domestic and International Market.

They have a chance to open a new manufacturing plant.

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THREATS / CHALLENGES:

They face main challenges from their competitors.

To deliver the order on the right time.

Ensure that they are delivering it on the proper shipment.

To balance the demand and supply.

Environmental conditions.

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CHAPTER-5

SUGGESTIONS

They can establish their current business in and around tamilnadu.

They can provide more transport facility to the customer.

If they can carry huge number of inventory, it may help in the demand time to supply

the goods to the customers.

They can recruit a person for payment collection process and bank work.

The company can also do the glass manufacturing business in and around tamilnadu.

Company can forecast the demand for behavioral changes in order to avoid the bottle

neck decisions.

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CHAPTER-6

REFLECTIVE LEARNING

In just 6 days of this project I have learned a lot of things about Entrepreneurship.

Patience is required at any point of time

An entrepreneur should have good listening skill

Positive attitude should be maintained

Entrepreneur is way better and much beneficial than employment

It all about creating, building and nurturing relationships on a trust basis.

Consistency in delivering services to their clients and customers

Ability to take risk and self confidence from thorough planning.

Flexibility to move quickly and adapt to the growing and market needs.

It’s not getting success for a short span of time and it is an ongoing process by

maintaining humbleness and honesty

Finally, I thank Mr. SIVAKUMAR VELUSWAMY, who has given me this

opportunity to be with him for a week. It was like a practical experience for me and came to

know many things of this Medical equipment manufacturing business. And I got many new

contacts from this industry circle through this ENTREPRENEURSHIP INTERFACE

PROJECT.

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CONCLUSION

From the ENTREPRENEURSHIP INTERFACE PROJECT, undertaken in the “S-K

ENGINEERING WORKS‖ I came to know about the various activities involved in the field

of the medical products trading business. The key activities and various techniques of the

company appear to be positive. The day to day function of the various departments carried

perfectly and efficiently. The company is performing well and attaining buyer satisfaction as

well as worker satisfaction. The company is known for its quality products and it will

maintain and succeed in all its future operations.

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ANNEXURE

PHOTOS

MEETING WITH AN ENTREPRENEUR

DOCUMENTS OF S-KUMAR ENGINEERING WORKS

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PURCHASE & SALES BILLS OF S.M.TEXTILES

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MANUFACTURING PROCESS