Promotion of Small Scale Industries Auto Saved]

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PROMOTION OFPROMOTION OFSMALL SCALESMALL SCALE

INDUSTRIESINDUSTRIES


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INTRODUCTION project is the sweet dream of the

entrepreneur. Project are vital means of economic

development. Generally , huge amount is spent on various

projects for meeting development needs.

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Project is an important ground work of anenterprise and is also very crucial to theentrepreneur.

An entrepreneur cannot succeed in hisventure without a project.The entrepreneur draws plan of action to

suit his requirement to a new project.

Project generally implies programme ofaction.

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It is series of activities and task that havespecific objectives to be completed withincertain specifications.

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Meaning of projectA project is an idea or plan that is intended to

be carried out.In other words a project is scheme, a design,

a proposal of something intended or devisedto be achieved.

The world bankdefines a project as Anapproval for a capital investment to developfacilities to provide goods and services.

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CVS Murthy defines project as a sequenceof unique, complex and connected activitieshaving one goal or purpose that must becompleted by specific time within budgetand according to specification

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According to encyclopedia ofmanagement

project is an organized unit decided to theattainment of a goal. The successful

completion of development project line,within a budget, in conforming with predetermined within specification.

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The above definition have givencomprehensive view of the project. Thesummary of above definition of projects are:

1.It is an important activity undertaken by anentrepreneur before establishing abusiness or promoting the business.

2.It aims towards specific target or task or an

objective that needs to accomplish inoperational stage covering the resourcesmobilization and process in a phase wise.

3.

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3.It is unique but complex in nature. Itinterconnects or synthesis severalactivities within a specific time andbudget.

4.It is development and growth oriented.

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PROJECT REPORT A project report is a written document

pertaining to any investment proposal.In other words, project report is a written

statement of what an entrepreneur proposesto take up.

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The project report contains the backgroundinformation about the industry to whichthe project belongs and the enterprisesubmitting the report. The main objective

of preparing the report is to information forthe project appraisal ( to examine ).

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According to Gordan an Natarajan describeproject report as a blue print of all theactivities that an entrepreneur propose toengage in.

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COMPONENTS / CONTENTS OF PROJECTREPORT.

There is no standard pattern of a projectreport.

Every business is different, depending onnature and type of business project reportis prepared.

Each project report is unique.

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The following is the guidelines will help whilepreparing a report to establish a small scaleunit.

1.General information

2.Project description

3.Market potential

4.Capital cost and source of finance

5.Assessment of working capital requirement6.Financial consideration

7.Economic and social consideration

8.Project implementation.

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General information :

It includes bio-data of the entrepreneur andthe enterprise. It gives following information.

1.Name and address of the entrepreneur.

2.

3.Qualification, experience and capabilities.

4.5.Profile of the industry to which the unit

belong.

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3.Constitution and organizational structure ofthe enterprise i.e. single owner,partnership or other form.

4.

5.Competitive advantage of the proposedproject over its competitor.

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PROJECT DESCRIPTION : Site location : address where the venture

is located. Reason for selecting the area.Whether owned or taken on lease.

Infrastructure : facilities of infrastructurelike water, power communication,transportation etc.

Raw material : requirement of rawmaterial, its source of supply, quality andcost analysis.

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Labor : requirement of skilled, semi skilledand unskilled labors. Their availability inthe local area facilities for training of labor.

Disposal of wastage: arrangement to be

made or availability for disposal of waste. Technology : the type of technology to be

installed, description of plant andmachinery to be installed.

Manufacturing process : presentation offlow chart indicating the productionprocess i.e. the stage of conversion of rawmaterial into finished product.

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MARKET POTENTIAL: project report must state the market

potential for the product or service that isgoing to be delivered by the venture. It must

state the following factor.a.Demand and supply : the report must

state existing demand and supplyposition and the share of proposed

venture in that.

b.Marketing strategy : distribution channel,sales promotion tactics and marketingstrategy to be adopted to sell theproduct.

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CAPITAL COSTS AND SOURCE OFFINANCE: project report must be state thecost to be incurred for raising and servingthe capital.

ASSESSMENT (DECIDING )OF WORKINGCAPITAL REQUIREMENTS:

Project report must mention the amount ofworking required for investment in currentassets. It must mention the source throughwhich such capital will be raised .

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FINANCIAL CONSIDERATION: purpose ofany business is to make adequate profit.Project report must exhibit the financialstatement to prove financial viability

(succeed) of the venture.ECONOMIC AND SOCIAL

CONSIDERATION : project must explainsocio-economic benefit of the venture. It

must highlight on following aspects.1.Employment opportunities.

2.Import substitutions.

3.Promotion of ancillaries.

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4.Export Potential.5.Utilization of Local Resources .

6.Development of the Area.

7. PROJECT IMPLEMENTATION :

The entrepreneur should draw animplementation scheme or time to ensuretimely completion of overall activities inestablishing the venture.

report must state the stage in which

project is going to be completed, timeschedule for completion of each stage and thetime when venture is going to commence itsoperations.

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Objectives of project:

project identifies the important task aventure has to accomplish.

It is normally prepared with the help orassistance of experts.

Project may be major or minor.

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It denotes a economic behavior with aspecific purpose to make investment on aventure and earn returns.

It is a proposal that specifies variousaspects of business like nature and type,assembly and organization of necessaryresources, cost and benefit analysis etc.

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Project has following objectives :1.To determine specific objectives of a

business.

2.To estimate cost and expenditure of the

project.

3.To estimate production, sales and revenue.

4.To organize resources and ensure proper

utilization.5.To enhance the sources of capital.

6.To determine the availability of the venture.

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1.To determine the specific objectives ofa business:

business must have specific objective likeprofit making, market expansion,

diversification, modernization etc . Projectdetermination specific objectives andpurpose for which the proposed venture isgoing to accomplish.

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2.Estimation of cost and expenditure:

Project makes detailed estimation of fundsrequired to promote the business.

It calculate cost and expenditure to beincurred for promotion of venture,development of infrastructure andinvestment required for fixed and currentassets.

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Estimation of production, sales andrevenue:

Project determination the production

targets, sales to be made to achieve thetarget of profits.

Such estimation are made for the life of theproject.

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4.Organizing of Resources and its ProperUtilization:

Project makes estimation of resources

required for investment in various fixedand current assets and also otherexpenses.

It organize such resources and ensure itsoptimum utilization.

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5.Enhancement of profit and wealth :6. Basic objective of any business is to earn

profit and create wealth.

Project determination the profits to be madewealth to be created over the period ofthe time.

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6.To determine the sources of capital:

The project identifies the sources of

investment.

It estimates the capital needed to establishor promote an industry and the

contribution of an entrepreneur, fromfinancial institutions, friends and so on.

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7.To Determine the viability of theVenture:

Project is prepared to ensure that idea of the

venture is profitable.

It undertakes technical, economical andmanagement analysis of the project toensure that the idea of business is viable.

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