ENTERPRENEURSHIP REPORT

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CONTENTS



1.     INTRODUCTION

2.     PROCEDURE TO START A SMALL SCALE INDUSTRY

3.     INTRODUCTION ABOUT INDUSTRY   & MARKET SURVEY

4.     PROJECT REPORT (PREPARATION OF SCHEME)


5.     BREAKEVEN ANALSYS




INTRODUCTION


An industrial undertaking in which the investment in fixed assets in plant and machinery whether held on ownership terms on lease or on hire purchase does not exceed Rs 10 million.
The Small Scale Industries play an important role in the developing countries. The small scale industries (SSI) constitute one of the vibrant sectors of the Indian economy in terms of employment generation, the strong entrepreneurial base it helps to create and its share in industrial production and exports. Small scale industries were particularly suited for better utilization of the local resources and for the investment (realization) of local self sufficiency.
The Government created the Ministry of Small Scale Industries and Agro and Rural Industries (SSI&ARI) in October, 1999 as the   nodal Ministry for formulation of policy and co-ordination of Central assistance relating to promotion and development of the small scale industries in India. The Ministry of Small Scale Industries and Agro and Rural Industries (SSI&ARI) was bifurcated into two separate Ministries, namely, Ministry of Small Scale Industries and Ministry of Agro and Rural Industries in   September, 2001. Taking into account the high potential for growth in the SSI sector in terms of output, employment and exports, the role of the Ministry of Small Scale industries is to strengthen the SSI sector, to enable it to remain competitive in market-led economy and generate additional employment opportunities. For achieving these objectives, the endeavor of the Ministry is to provide the SSI sector proper and timely inputs like:  
·         Adequate credit from financial institutions/banks.
·         Funds for technology up gradation and modernization.
·         Adequate infrastructural facilities.
·         Modern testing facilities and quality certification laboratories.
·         Modern management practices and skill up gradation through advanced training facilities.
·         Marketing assistance; and level playing field at par with the large industries sector
As on march, 1998 there were 30.14 lacks small scale units spread all over the country giving employment to nearly to 167 lack people with production at current price estimated as Rs. 4,65,171.00 crores. The volume of export (direct) from this sector is Rs. 43,946 crores earning valuable foreign exchange.
National institutes for Entrepreneurship development
As entrepreneurship development and training is one of the key elements for the promotion of small scale industries, the Ministry has established three National Institutes, viz. the National Institute of Small Industry Extension Training (NISIET) at Hyderabad, the National Institute of Entrepreneurship and Small Business Development (NIESBUD) at NOIDA and the Indian Institute of Entrepreneurship (IIE) at Guwahati as autonomous bodies. These Institutes are responsible for development of training models and undertaking of research and training for entrepreneurship development in the SSI sector.

 National Commission for Enterprises in the Unorganized Sector
 The National Commission for Enterprises in the Unorganized Sector was constituted in September, 2004 under the chairmanship of Dr. Arjun K. Sengupta, an eminent economist.  It has three full-time Members and two part-time Members and an Advisory Board consisting of 11 eminent experts from different fields relating to the unorganized/informal sector. The Commission will recommend measures considered necessary for bringing about improvement in the productivity of the informal sector enterprises, generation of large scale employment opportunities on a sustainable basis, particularly in the rural areas, enhancing the competitiveness of the sector in the emerging global environment, linkage of the sector with institutional framework in areas such as credit, raw material, infrastructure, technology up gradation, marketing and formulation of suitable arrangements for skill development. 
                In accordance with its terms of reference, the Commission and its Advisory Board have held several rounds of deliberations on a host of issues relating to the unorganized/informal sector enterprises.  In the light of these deliberations, the following issues have been identified so far by the Commission for detailed consideration and recommendations:
   Notion of growth poles for the informal sector in the form of clusters/hubs, where external economies need to be provided to spur employment generation and productivity enhancement and the feasibility of integrating the initiatives and programs of various Ministries in this domain.
   Skill formation in the informal sector and potential for public private partnership in providing the required skills.
    Provision of micro finance and related services to the informal sector enterprises and strengthening of the institutional framework in this area .

REGISTRATION PROCEDURE
Small Scale and ancillary units (i.e. undertaking with investment in plant and machinery of less than Rs. 10 million) should seek registration with the Director of Industries of the concerned State Government. The main purpose of Registration is to maintain statistics and maintain a roll of such units for the purposes of providing incentives and support services.
Now a day’s registration procedure has been streamlined and registration forms have been simplified. Separate forms have been prescribed for provisional and permanent registration.

Benefits of Registering
The registration scheme has no statutory basis. Units would normally get registered to avail some benefits, incentives or support given either by the Central or State Govt. The regime of incentives offered by the Centre generally contains the following:
  • Credit prescription (Priority sector lending), differential rates of interest etc.
  • Excise Exemption Scheme.
  • Exemption under Direct Tax Laws.
  • Statutory support such as reservation and the Interest on Delayed Payments Act.
States/UTs have their own package of facilities and incentives for small scale. They relate to development of industrial estates, tax subsidies, power tariff subsidies, capital investment subsidies and other support. Both the Centre and the State, whether under law or otherwise, target their incentives and support packages generally to units registered with them.

Objectives of the Registration Scheme
 They are summarized as follows:
·         To enumerate and maintain a roll of small industries to which the package of incentives and support are targeted.
·         To provide a certificate enabling the units to avail statutory benefits mainly in terms   of protection.
·         To serve the purpose of collection of statistics.
·         To create nodal centers at the Centre, State and District levels to promote SSI.

TYPES OF REGISTRATION
a.      Provisional Registration
Application forms for provisional registration will be filled in duplicate. One copy duly endorsed will be given to the applicant and the other copy will be retained by the District Industry Center/Registering Authority.
·         This is given for the pre-operative period and enables the units to obtain the term loans and working capital from financial institutions/banks under priority sector lending.
·         Obtain facilities for accommodation, land, other approvals etc.
·         Obtain various necessary NCOs and clearances from regulatory bodies such as Pollution Control Board, Labor Regulations etc.

b.      Permanent Registration
The form for the permanent registration is to be filled in triplicate. One copy duly endorsed will be given to the applicant. The second copy will be retained by the district industry centre/ registering authority and the third copy will be forwarded to the director of the industries to facilitate consolidated record maintained in a computerized environment.
This enables the unit to get the following incentives/concessions:
·         Income-Tax exemption and Sales Tax exemption as per State Govt. Policy.
·         Incentives and concessions in power tariff etc.
·         Price and purchase preference for goods produced.
·         Availability of raw material depending on existing policy.
        Permanent registration of tiny units should be renewed after 5 years. The filled in application forms fully endorsed in case of both provisional and permanent registration is a part of registration certificate. This has been clearly stated in the application form.


PROJECT REPORT


1.0 General


Name of Promoter                       : Sumit Kumar           

                                                                                                               

Birth Date                                            : OCT. 19 , 1986
                                                                                                                              
Age                                                          : 24 YRS.
             
Project                                                  : Manufacturing of “Soap”
                                                                                   
Location                                               : Yamuna Nagar

Type of the Organization                : PVT. COMPANY

Name of the Firm                              : “AJAY SOAP MILLS”
Address                                                : AGGERSAIN CHOWK, Jagadhri                            
                       


A MODEL SCHEME TO START SMALL SCALE INDUSTRY FOR EXAMPLE A SOAP INDUSTRY


Introduction: - A soap industry is a industry which manufacture soap with the help of machinery and workers available.

Land and Building: - Total area   4000 square meter
                                          Covered area 3000 square meter

Machinery and equipment
Machinery/equipment               quantity              cost  
       Crasher                                          2                   Rs 5 lac
       Cutting m/c                                  1                   Rs 1.5 lac 
       Locomotive Boiler                      1                   Rs  50000       

Other Equipments
     Name                                  quantity                 cost     
     Trolley                                      15                     Rs 500/trolley     
     Stamp m/c                               1                       Rs 8000     
     Moulds                                      25                     RS 450/unit     

Working capital per month                                 
  Skilled worker                          10                  Rs 8000 p/m      
  Semi skilled worker                06                  Rs 3000 p/m  
  Helper                                          04                 Rs 800     p/m   


 Overhead charges   
   Repair and maintance                                          Rs 20000 per year 
    Postage and stationary                                       Rs 2000 per year 
    Traveling expenses                                               Rs 5000 per /m 
    Transportation                                                       Rs  15000 p/m  

Utilities         
 Electricity Bill                                                           Rs 5000 p/m 
Capital investment                                                   Rs 7 lac   
Turnover (per year)                                                Rs 75 lac

Profit
  Turnover-cost of production                 
   Rs 75 lac-68lac                                                          Rs 07 lac  

Rate of return                                                            Profit/Capital investment*100

Machinery supplier
 Hindustan Machine Tool, Pinjore  
 ISGEC,   Yamuna Nagar
     
                             
Raw Materials


Sr. No.

                 Item
Total Annual Requirement
   
          Source
Quantity
Value Rs. In lacs
1.
VEGETABLE OIL(OR ANY KIND OF OIL)

As per Demand. (Projected)
5.00


DELHI

MAHARASHTRA
2.

CAUSTIC SODA
0.50




BREAK EVEN ANALYSIS
                                 
(A) FIXED COST =   07lac      

(B) VARIABLE COST = TOTAL COST- FIXED COST
                                    = (75-7) lacs
                                    = Rs. 68 lacs
(C) BREAK EVEN POINT =
                         =                 FIXED COST
                                  (FIXED COST+PROFIT)

                          = 700000(700000+700000)             =50 percent


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