Entrepreneurship and small business management chapter 4

A streamlined version of the authors' best-selling Effective Small Business Management, Fifth Edition, this chapter self-contained book offers complete coverage of the essential topics in small business management and entrepreneurship. Using a lively, interesting writing style, an abundance of real-world examples, and practical hands-on exercises and activities, it provides a no-nonsense real-world approach that follows the logical process and critical issues of creating, launching, and managing a successful small business. An entire chapter devoted to E-commerce and the World Wide Web provides readers with a practical guide to conducting business on the web and with discussion on topics such as the twelve myths of e-commerce, approaches to e-commerce, strategies for e-success, and ensuring web security. New Chapter Two, Inside the Entrepreneurial Mind: From Ideas to Reality provides readers with an interesting and fun way to discuss the creative process and how entrepreneurs use it to create business ideas. Companion Website www.

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Content:

• Schermerhorn Chapter 5- Entrepreneurship and Small Business Management Flashcards Preview
• Entrepreneurship and Small Business Management solved MCQs
• Chapter 4: Entrepreneurship and Small Business Management
• Small Business Management in the 21st Century
• TECHNOLOGICAL INNOVATION MANAGEMENT AND ENTREPRENEURSHIP(18ES51)
• Chapter 4 Entrepreneurship.
• ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT (ESBM) (MCQS)
• Entrepreneurial Orientation
• Chapter 5: Entrepreneurship: Starting and Managing Your Own Business

Schermerhorn Chapter 5- Entrepreneurship and Small Business Management Flashcards Preview

Which type of Industry uses family labour and local available talent while running the business? Ans: Cottage industries use labour and local available talent while running the business.

A micro small scale industry has investment of Rs. Now, it wants to increase its investment by Rs. What type of small Business will it become and what is the maximum investment limit in such cases? Ans: Micro. Micro-enterprises are ones with a capital investment of less than Rs. Ans: Woman entrepreneur. Name areas where SSLs feel threatened from global enterprises.

Ans: The areas are:. High-end Technology. Financial creditworthiness,. Managerial capabilities. Marketing capabilities. Name any 2 merits of SSLs in the export trade of India. GDP and exports: These industries has a significant contribution to the GDP and exports, thus leading to the economic growth of the country.

Personal touch: Small businesses are known for their artist products, versatility and personal touch, which allows them to maintain positive relationships with customers abroad, thus adding financial value to their business. What different parameters are used to measure the size of manufacturing business? As against the earlier bifurcation of MSMEs into manufacturing and service sector, both are treated as one and the same, and are defined under a common metric.

The investment and turnover limits are:. The parameters are:. Investment in Plant and machinery. Manufacturing and Service. Upto 1 Crore. Upto 10 Crore. Upto 50 Crore. Upto 5 crore. Upto 50 crore. Upto crore. State features of cottage industries. Ans: Cottage industries are characterised by certain features such as:. Typically, family labour and locally available skill are used;.

The use of simple and basic tools;. The capital outlay is minimal;. Manufacturing of simple products is there, mainly in their own premises;. The use of indigeneous technology is made to manufacture products. Write the objective of the Marketing Assistance scheme? Ans: The objectives are:. To flourish and enhance the marketing competitiveness of the MSMEs. To showcase the competencies of MSMEs. To keep MSMEs informed about the current market situation and how it affects their operations.

To make it easier for MSMEs to form consortia for the marketing of their goods and services. To develop a platform for an interaction of MSMEs with large institutional buyers. To improve the marketing skills of micro, small, and medium-sized businesses. What is the aim of NSIC? To make available indigenous and imported machines on easy hire-purchase terms.

Source, supply, and distribute raw materials, both domestic and imported. To facilitate the export of the products of small business units. Mentoring and advisory services. Ans: It has been adopting a multi-pronged, multi-purpose strategy for the promotion of rural business enterprises in the country. Apart from agriculture, it supports small industries, cottage and village industries, and rural artisans using credit and non-credit approaches.

It offers counselling and consultancy services and organizes training and development programmes for rural entrepreneurs. Write any three problems of small business in India. Ans: The problems are:. Finance: There is limited finance availability with these enterprises that makes the day to day working difficult.

Also raising finance from banks is a challenge because of these enterprises' poor credit worthiness. Raw materials: Due to unavailability of certain raw materials, these enterprises have to adjust and compromise either in terms of poor quality raw material, or high price raw material. Both situations add to the problems of such enterprises. Managerial skills: Business run by a single person or family, which lacks managerial skills, technical skills and entrepreneurial skills. Also due to no education, things become even more difficult.

Hence neither they are capable to manage the enterprises on their own, nor they can hire people for such work sue to shortage of financial resources. Define the role of small business in the following area:. Ans: The small businesses produce a wide range of products, including mass-market goods, ready-made clothing, hosiery, stationery, soaps and detergents, household furnishings, handlooms, and handicrafts.

Ans: These business units can be set up anywhere at any location and region, as they are dependent on locally available resources, simple technology, and labour class people. This facilitates balanced development of the country. Ans: Small businesses are most suited for customisation, which involves tailoring a product as per the needs, tastes, demands and preferences of certain customers. On the basis of capital contribution identify the type of SSI from the following:.

Ans: Small. Ans: Medium. What are the incentives given by Govt. Ans: Incentives given by the govt to the industries set up in hurry, backward and rural area are as follows:. Land: Every state offers plots for setting up industries, however there might be differences in the terms and conditions of each state. For example, some states do not charge rent during the first few years, while others allow instalment payments.

Power: Power is supplied at a concessional rate of 50 per cent, while some states exempt such units from parment in the initial years. Sales Tax: In all union territories, industries are exempt from sales tax while some states extend exemption for a 5 years period. Octroi: Most states have abolished octroi. Raw resources: Units in underdeveloped areas are given priority when it comes to obtaining rare raw materials such as cement, iron, and steel.

Loans are also offered at reasonable rates. Industrial estates: Some states encourage setting up of industrial estates in backward areas. Tax holiday: Industries founded in backward, hilly, and tribal areas are exempt from paying taxes for 5 or 10 years. Preet food Industries set up a food and beverages processing plant in the rural area of Haryana and opted for labour intensive techniques due to easy availability of labour and to provide employment to local people.

Board of directors decided to invest 50 lakhs to acquire plant and machinery, Rs. Medium-sized businesses and service-related businesses are also covered by these laws. Ans: Micro-enterprises are ones with a capital investment of less than Rs. Ans: Values followed by the company are as follows:. Employment generation: The company contributed to the generation of employment opportunities for local people by opting for labour intensive techniques.

Balanced Regional Development: The setting up of food and beverages processing plants by the company in the rural area of Haryana contributed to the balanced regional development. Board of Directors of "Bio Pure water Ltd. Ans: Cheap price of land and labour. Ans: Bank loans and equity finance. Ans: The following are the company's values:. Balance Regional Development: The company established its first operation in Himachal Pradesh's hilly region, contributing to the region's development.

Employee motivation: Employees are motivated by the company's commitment to support their educational and health needs, as well as the needs of their families. Job creation: Due to the low cost of land and labour in Himachal Pradesh's hilly region, the corporation opened its first plant there, resulting in an increase in job opportunities. Explain in detail the problems faced by the small business? Ans The following are some of the issues that small businesses face in rural India:.

Finance: Most small businesses start with a low capital basis. Many of the units in the small sector lack the creditworthiness needed to raise finance from the markets. As a result, they rely significantly on local financial resources and are frequently victims of money lenders' exploitation.

Entrepreneurship and Small Business Management solved MCQs

Entrepreneurship and small businesses are vital determinants of sustainable economic growth, particularly in emerging economies, and are acknowledged as engines driving competitiveness and job creation. Countries that have encouraged and nurtured both of these have stronger economies and are more resilient. Entrepreneurship and small business management focuses on developing the important skills necessary for entrepreneurs to succeed at doing business in emerging economies. Entrepreneurship and small business management provides a balanced theory and practical approach to help budding entrepreneurs develop thriving businesses. Fundamental aspects such as innovation and creativity are discussed as well as entrepreneurial strategies. The concluding section covers the essence of the business plan as well as relevant case studies, which are presented as a way of ensuring understanding.

Chapter 4: Entrepreneurship and Small Business Management

Journal of Innovation and Entrepreneurship volume 11 , Article number: 1 Cite this article. Metrics details. Mainly this study was aimed at demonstrating the challenges of small businesses during the corona virus pandemic in developing countries, specifically in Ethiopia. Methodologically, the study deployed secondary data analysis following a descriptive research design. Furthermore, this study was conducted through both qualitative and quantitative research approaches. The secondary data analysis result shows that many small and large businesses are suffering challenges and this unprecedented coronavirus crisis has caused destruction for many businesses in the globe and it is challenging to survive with reduced revenue, jobs lost and life slowing down and weak marketing performance even difficult to keep a calm head and their business alive. To support these businesses, the government should use different mechanisms by cooperating with wealthy peoples and other non-governmental organizations. Besides, small business owners should manage expectations and communicate with staff, suppliers, banks, and customers throughout this coronavirus frightening. Reduce expenses be open to their employees about their finances and keep marketing, use different alternatives to deliver their product, and recover from the crisis. COVID is shuddering the world economy and it is a pandemic making a giant distractions to life and livelihoods as well as social and economic systems in the world.

Small Business Management in the 21st Century

Running a business is not for the faint of heart; entrepreneurship is inherently risky. Successful business owners must possess the ability to mitigate company-specific risks while simultaneously bringing a product or service to market at a price point that meets consumer demand levels. To safeguard a new or established business, it is necessary to understand what can lead to business failure and how each obstacle can be managed or avoided altogether. The most common reasons small businesses fail include a lack of capital or funding, retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing initiatives. A primary reason why small businesses fail is a lack of funding or working capital.

TECHNOLOGICAL INNOVATION MANAGEMENT AND ENTREPRENEURSHIP(18ES51)

Skip to search form Skip to main content Skip to account menu. Zimmerer and Norman M. Zimmerer , Norman M. The Challenge of Entrepreneurship Chapter 1. The Foundations of Entrepreneurship Chapter 2.

Chapter 4 Entrepreneurship.

Publisher: Saylor Foundation. This book provides comprehensive content on small business management. I especially like the chapter contents of marketing basics, strategy, and plan. The information provided in the book is not new and older. I suggest the authors update Comprehensiveness rating: 4 see less.

ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT (ESBM) (MCQS)

Entrepreneurship and small business ESB research has achieved a level of maturity which now presents a complex mixture in terms of the levels of analysis. As a result of these developments, the research on small business and entrepreneurship has a number of distinct traditions, which somehow remain in silos. In this chapter, we argue that this field of academic endeavour would benefit from a more integrated approach.

Entrepreneurial Orientation

Why do people become entrepreneurs, and what are the different types of entrepreneurs? Brothers Fernando and Santiago Aguerre exhibited entrepreneurial tendencies at an early age. At 11 and 12, they provided a surfboard repair service from their garage. Both brothers are enjoying serving an industry that has served them so well.

Chapter 5: Entrepreneurship: Starting and Managing Your Own Business

The concept of strategy originates with the art of warfare. Strategic planning evolved from the process of annual budget planning in the s. In the s, fast-growing demand caused companies to extend their planning horizon beyond an annual basis, making long-range planning necessary. For example, when Rich [1] wrote his textbook on forest products marketing, he referred to long range planning and business strategy. In long range planning, the future is predicted through extrapolation of historical growth. Dramatic changes in the business environment, such as the oil shocks of the 70s, required more sophisticated approaches to systems of management. Next came strategic planning where predictions of the future were no longer primarily based on the past.

Please log in to save materials. Log in. In this unit, we will discuss the difference between entrepreneurship and entrepreneurs, look at the challenges of entrepreneurship and also discuss how an entrepreneur can overcome these entrepreneurial challenges.