CU-MBA-SEM-IV-Entrepreneurship Development

MASTER OF BUSINESS ADMINISTRATION SEMESTER-IV ENTREPRENEURSHIP DEVELOPMENT MBA615

First Published in 2021 All rights reserved. No Part of this book may be reproduced or transmitted, in any form or by any means, without permission in writing from Chandigarh University. Any person who does any unauthorized act in relation to this book may be liable to criminal prosecution and civil claims for damages. This book is meant for educational and learning purpose. The authors of the book has/have taken all reasonable care to ensure that the contents of the book do not violate any existing copyright or other intellectual property rights of any person in any manner whatsoever. In the event, Authors has/ have been unable to track any source and if any copyright has been inadvertently infringed, please notify the publisher in writing for corrective action. 2 CU IDOL SELF LEARNING MATERIAL (SLM)

CONTENT Unit - 1: Entrepreneurship ..................................................................................................... 4 Unit - 2: Introduction To New Venture Opportunities And Challenges ................................ 31 Unit – 3 : Idea Generation ................................................................................................... 53 Unit – 4 : Business Plan Development................................................................................. 90 Unit - 5: Business Plan Development ................................................................................ 113 Unit - 6: Sources For Start Up ........................................................................................... 135 Unit - 7: Sustainability And Growth .................................................................................. 160 Unit - 8: Sustainability And Growth .................................................................................. 182 3 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 1: ENTREPRENEURSHIP STRUCTURE 1.0 Learning Objectives 1.1 Introduction 1.2 Definition and Characteristics of Entrepreneurship 1.3 Role of Entrepreneurship, 1.3.1 To the Entrepreneur 1.3.2 To the Society 1.4 Scope and Importance of Entrepreneurship, 1.5 Summary 1.6 Keywords 1.7 Learning Activity 1.8 Unit End Questions 1.9 References 1.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Describe nature of Entrepreneurship Development  Identify scope of Entrepreneurship Development  State the need and importance of Entrepreneurship Development  List the functions of Entrepreneurship Development 1.1 INTRODUCTION Entrepreneurship is the art of starting a business, basically a start-up company offering creative product, process or service. We can say that it is an activity full of creativity. An entrepreneur perceives everything as a chance and displays bias in taking decision to exploit the chance. An entrepreneur is a creator or a designer who designs new ideas and business processes according to the market requirements and his/her own passion. To be a successful entrepreneur, it is very important to have managerial skill and strong team building abilities. 4 CU IDOL SELF LEARNING MATERIAL (SLM)

Leadership attributes are a sign of successful entrepreneurs. Some political economists regard leadership, management ability, and team building skills to be the essential qualities of an entrepreneur. 1.2 CONCEPT OF ENTREPRENEURSHIP Entrepreneurship is the ability and readiness to develop, organize and run a business enterprise, along with any of its uncertainties in order to make a profit. The most prominent example of entrepreneurship is the starting of new businesses. The entrepreneur is defined as someone who has the ability and desire to establish, administer and succeed in a start-up venture along with risk entitled to it, to make profits. The best example of entrepreneurship is the starting of a new business venture. The entrepreneurs are often known as a source of new ideas or innovators, and bring new ideas in the market by replacing old with a new invention. Characteristics of Entrepreneurship:  Ability to take a risk- Starting any new venture involves a considerable amount of failure risk. Therefore, an entrepreneur needs to be courageous and able to evaluate and take risks, which is an essential part of being an entrepreneur.  Innovation- It should be highly innovative to generate new ideas, start a company and earn profits out of it. Change can be the launching of a new product that is new to the market or a process that does the same thing but in a more efficient and economical way.  Visionary and Leadership quality- To be successful, the entrepreneur should have a clear vision of his new venture. However, to turn the idea into reality, a lot of resources and employees are required. Here, leadership quality is paramount because leaders impart and guide their employees towards the right path of success.  Open-Minded- In a business, every circumstance can be an opportunity and used for the benefit of a company. For example, Paytm recognised the gravity of demonetization and acknowledged the need for online transactions would be more, so it utilised the situation and expanded massively during this time.  Flexible- An entrepreneur should be flexible and open to change according to the situation. To be on the top, a businessperson should be equipped to embrace change in a product and service, as and when needed. 5 CU IDOL SELF LEARNING MATERIAL (SLM)

 Know your Product-A company owner should know the product offerings and also be aware of the latest trend in the market. It is essential to know if the available product or service meets the demands of the current market, or whether it is time to tweak it a little. Being able to be accountable and then alter as needed is a vital part of entrepreneurship. 1.3 ROLE OF ENTREPRENEURSHIP 1.3.1 Role of Entrepreneurship in the Economic Development Entrepreneurs initiate and sustain the process of economic development in the following ways: 1. Capital Formation: Entrepreneurs mobilize the idle savings of the public through the issues of industrial securities. Investment of public savings in industry results in productive utilization of national resources. Rate of capital formation increases which is essential for rapid economic growth. Thus, an entrepreneur is the creator of wealth. 2. Improvement in Per Capita Income: Entrepreneurs locate and exploit opportunities. They convert the latent and idle resources like land, labour and capital into national income and wealth in the form of goods and services. They help to increase net national product and per capita income in the country, which are important yardsticks for measuring economic growth. 3. Generation of Employment: Entrepreneurs generate employment both directly and indirectly. Directly, self-employment as an entrepreneur offers the best way for independent and honourable life. Indirectly, by setting up large and small scale business units they offer jobs to millions. Thus, entrepreneurship helps to reduce the unemployment problem in the country. 4. Balanced Regional Development: Entrepreneurs in the public and private sectors help to remove regional disparities in economic development. They set up industries in backward areas to avail various concessions and subsidies offered by the central and state governments. Public sector steel plants and private sector industries by Modis, Tatas, Birlas and others have put the hitherto unknown places on the international map. 6 CU IDOL SELF LEARNING MATERIAL (SLM)

5. Improvement in Living Standards: Entrepreneurs set up industries which remove scarcity of essential commodities and introduce new products. Production of goods on mass scale and manufacture of handicrafts, etc., in the small scale sector help to improve the standards of life of a common man. These offer goods at lower costs and increase variety in consumption. 6. Economic Independence: Entrepreneurship is essential for national self-reliance. Industrialists help to manufacture indigenous substitutes of hitherto imported products thereby reducing dependence on foreign countries. Businessmen also export goods and services on a large scale and thereby earn the scarce foreign exchange for the country. Such import substitution and export promotion help to ensure the economic independence of the country without which political independence has little meaning. 7. Backward and Forward Linkages: An entrepreneur initiates change which has a chain reaction. Setting up of an enterprise has several backward and forward linkages. For example- the establishment of a steel plant generates several ancillary units and expands the demand for iron ore, coal, etc. These are backward linkages. By increasing the supply of steel, the plant facilitates the growth of machine building, tube making, utensil manufacturing and such other units. 1.3.2 Role of Entrepreneurship in the Society Entrepreneurship is the capacity and willingness to develop and participate in a business venture with the intention of making a profit regardless of the financial risks involved. The role of entrepreneurship in any economy is critical, as it contributes to the socio-economic development of societies in various ways, including 1. Identifying existing opportunities in the market - Through production and distribution of goods and services, entrepreneurial ventures seek to satisfy client needs and improve livelihoods. Constant market research provides insights into existing customer needs that inform decisions to provide goods and services. An example is Jumia Kenya which noticed a gap in the distribution of goods through online platforms and exploited this opportunity, giving rise to a very vibrant online business platform. 7 CU IDOL SELF LEARNING MATERIAL (SLM)

2. Creating employment opportunities – The World Bank 2016 Kenya Economic update placed employment uptake by the private sector at 67% in 2014. This figure is likely to have increased with the improved performance of Kenya in the ease of doing business ranking. Entrepreneurship helps bridge the unemployment gap through formal and informal business ventures that employ millions of Kenyans. 3. Contributing to national income – Through payment of taxes, businesses contribute to government revenue that consequently facilitates development. Entrepreneurial ventures further contribute to the GDP, an indication of their importance in raising revenue and financing government projects, as well as contributing to economic growth. 4. Infrastructural Development – Entrepreneurial ventures open up infrastructural development in their localities. Starting up businesses often leads to the development of transport and communication networks, driven by the need for infrastructure created by these businesses. Companies like Keroche and Dominion farms opened up their localities, enabling thriving businesses to take root, taking advantage of the good transport and communication channels available. 5. Contributing to Community Development – Through participation in Corporate Social Responsibility, entrepreneurs contribute to and support the development of infrastructure for education, healthcare, business training & mentorship and other social needs. In Kenya, initiatives and organizations such as the Mater Heart Run, the KCB Lion’s Den, Blaze by Safaricom and Equity’s Wings to fly are but a few initiatives by entrepreneurs that are contributing towards improving access to health services and education and providing financial support and mentorship to other young entrepreneurs. 1.4 IMPORTANCE OF ENTREPRENEURSHIP:  Creation of Employment- Entrepreneurship generates employment. It provides an entry-level job, required for gaining experience and training for unskilled workers.  Innovation- It is the hub of innovation that provides new product ventures, market, technology and quality of goods, etc., and increases the standard of living of people.  Impact on Society and Community Development- A society becomes greater if the employment base is large and diversified. It brings about changes in society and promotes facilities like higher expenditure on education, better sanitation, fewer 8 CU IDOL SELF LEARNING MATERIAL (SLM)

slums, and a higher level of homeownership. Therefore, entrepreneurship assists the organisation towards a more stable and high quality of community life.  Increase Standard of Living- Entrepreneurship helps to improve the standard of living of a person by increasing the income. The standard of living means, increase in the consumption of various goods and services by a household for a particular period.  Supports research and development- New products and services need to be researched and tested before launching in the market. Therefore, an entrepreneur also dispenses finance for research and development with research institutions and universities. This promotes research, general construction, and development in the economy. Scalable Startup Entrepreneurship The scalable startup entrepreneurship model at first resembles a small business, but differs in its intentions for long-term evolution. Key Characteristics of Scalable Startup Entrepreneurship There are a few traits that distinguish the scalable startup model from the small business model, as well as from other types of entrepreneurship.  Like small business entrepreneurs, scalable start up entrepreneurs start their companies on a modest scale. But unlike small business entrepreneurs, scalable start up entrepreneurs have a vision for growth from the outset.  Scalable start up entrepreneurs look not just to make profits but also to generate revenues they can invest back into the business, fueling growth.  The most common way to fund a scalable start up is through the pursuit of venture capital.  Scalable start up entrepreneurs face seveal unique challenges, as Start-up Nation describes:  Attracting investors and raising venture capital  Recruiting talented managers and employees without impinging on cash flow or incurring debt  Ensuring the business plan is flexible enough to accommodate shifting markets and new technologies  Planning and implementing an infrastructure for the business that is inexpensive to launch yet capable of growing without disrupting the core business 9 CU IDOL SELF LEARNING MATERIAL (SLM)

 Realizing aggressive growth targets to meet investor expectations and attract future funding The team the entrepreneur assembles to get the business off the ground and implement its growth strategy has to possess all requisite skills, but more importantly the members must share the founder’s vision for the company. Examples 1. Melanie Perkins, Canva In 2013, Perkins launched canva with a simple premise, as CNBC explains: Make graphic design accessible to everyone. Today, the company is often mentioned in the same breath with massive tech giants, and it is valued at more than $3 billion. Perkins first envisioned the company while in college, where she helped other students learn to use design software. She knew there was an easier way to make designing accessible. Working with Canva co-founder Cliff Obrecht, who is now Perkins’ fiance, she launched an online school yearbook design firm at the age of 19. The couple had very little business experience and few resources, yet they created a website that allowed students to collaborate and design personalized profile pages and articles for yearbooks that the pair would print and deliver to schools themselves. Seven years later, that business continues to thrive. Now, at the age of 26, Perkins has made her dream of a free, easy-to-use design platform a reality. 2. Ayah Bdeir, Little Bits Electronics One never too young to start exploring the worlds of electronics and engineering. That’s the premise behind Little Bits, which provides STEM-centric (that is, science, technology, engineering, and math) building blocks aimed at empowering kids and introducing them to electronics careers. Bdeir has found great success; after starting small, she now sells her products in more than 100 countries. She got the idea for the company while a student at the Massachusetts Institute of Technology Media Lab, where she earned her master’s degree and participated in the Media Lab’s Lifelong Kindergarten project, as the Observer describes. Little Bits is based on the concept of learning through play: Bdeir started by taking prototypes to Maker Faires, where tinkerers and do-it-yourselfers share their innovations. After lines of kids began forming at her booth, she realized children were engaged by the devices they created and would ask question after question about how they worked. Bdeir 10 CU IDOL SELF LEARNING MATERIAL (SLM)

was able to convert this “light bulb moment” into a successful business enterprise with an important social message: Women belong in STEM fields as much as men do. Large Company Entrepreneurship Defining Large Company Entrepreneurship  The primary thing that distinguishes this model is that rather than building a new business entity from scratch, it is the creation of a new business entity within an existing company.  Large company entrepreneurs address the needs and opportunities of an existing business through innovation. This may include a new product line or division.  Large company entrepreneurs look to branch into new customer markets, broadening the reach of an established business.  Large company entrepreneurship may entail the acquisition of new companies and resources, or investment into research and development.  The key to success for large company entrepreneurs is sustaining growth in the long term, so the major challenge to their success is to anticipate and avoid obstacles to growth:  Ensuring that the firm’s new and innovative products are first to market  Protecting and growing the market share of existing products while promoting the new offerings  Building a cohesive corporate culture that is easy for newly acquired organizations to adopt  Overcoming the inertia that can prevent large firms from acting on and responding to changing markets and innovative technologies faster than the competition Examples 1. Google The tech company has used acquisitions such as YouTube to amass a vast tech portfolio beyond search, which remains tremendously profitable but lacks the steep growth projection of other technologies. This strategy allows the firm to be active in many different markets, including real-time traffic (Waze), smartphones (Motorola Mobility and HTC’s Pixel Smartphone Division), and health wearable’s (Fit bit), as CB Insight describes. Two recent Google acquisitions are the customer service software suite onward, which the company 11 CU IDOL SELF LEARNING MATERIAL (SLM)

acquired to gain a share of the growing market for automated customer service, and Temo’s GIF search engine, which broadens the firm’s search portfolio and attracts a much-desired tech audience: professional web developers. 2. CVS CVS is another company that has used acquisitions to expand its reach into new consumer markets. One significant example is CVS’s acquisition of the Target pharmacy chain, including more than 1,600 pharmacies and clinics. However, the company’s strategy goes beyond growth to encompass a reinvention of the healthcare industry, as noted by its 2018 acquisition of insurance firm Aetna. A key to its strategy is the conversion of CVS pharmacies into ‘Health Hubs” as the Hartford Courant explains. CVS envisions the acquisition as a way for it to capitalize on fundamental changes in how people receive healthcare: a broader role for pharmacists in the provision of primary healthcare services. 3. Netflix While Netflix is generally an acquisition-light company, it has broadened its reach through various creative ventures. One example is its acquisition of storyBots, which proved instrumental in Netflix building out its children’s programming lineup. Social Entrepreneurship 12 CU IDOL SELF LEARNING MATERIAL (SLM)

Social entrepreneurship has emerged as businesspeople consider the effect their company has on the world, beyond mere profits and losses. What Is Social Entrepreneurship? The primary factor that distinguishes social entrepreneurs from the other types of entrepreneurs is their mission. These entrepreneurs are focused on solving a problem in their community or furthering some kind of social change. Their objective goes beyond the bottom line. Most examples of social entrepreneurship take a nonprofit structure. Money that’s generated is put toward advancing the company’s mission and maintaining necessary overhead but not necessarily toward corporate growth or expansion. Social entrepreneurship often involves alternative forms of fundraising, which may include grants, sponsorships, or small-donor fundraising within the community. The World Economic Forum identifies social entrepreneurship as a powerful way to apply market-driven approaches to address social problems. However, despite their success at finding innovative and practical solutions, social entrepreneurs face serious challenges: Innovation requires experimentation, but funding for social entrepreneur projects focuses on results, so there’s little incentive to pay for unproven approaches. All enterprises require a steady flow of capital, but social entrepreneur projects tend to provide investors with lower returns than other opportunities. Relations between social entrepreneurs and investors can become strained by conflicting goals and a lack of financial transparency. Examples 1. Shiza Shahid, founder of the Malala Fund Shahid is a Pakistani entrepreneur who launched the Mala Fund to promote educational opportunities for girls, in particular those from disadvantaged communities. The New York Times reports that after co-founding the Malala Fund with Nobel laureate Malala Yousafzai, Shahid started an investment fund for mission-driven startups. Most recently, Shahid and two partners launched a line of cookware for the “modern multi-ethnic American kitchen.” 2. Audrey Cheng, founder of Moringa School 13 CU IDOL SELF LEARNING MATERIAL (SLM)

Cheng’s Moringa School in Nairobi, Kenya, provides local girls with opportunities to learn coding and other foundational computer programming skills. Cheng was motivated to create the school by the high unemployment rate in Africa, especially among college graduates. Moringa prepares students with the skills they will need for their professions, but also readies them to thrive in the modern workplace. 3. Jessica Schreiber, founder of FABSCRAP Schreiber was still in her 20s when she founded FABSCRAP, a fashion recycling company based in New York City. According to a Forbes profile, the organization “works with 135 labels across the city, collecting and recycling their textile waste, reusing discarded materials to create new clothing or simply selling them at a discounted rate.” What is a socialpreneur? A socialpreneur is a person that sets out on an entrepreneurial venture with the intention of addressing social issues and contributing to the social good. These businesses can have a for- profit, non-profit, or hybrid model, but funds are typically used to support operational costs and develop programs to support target markets. While socialpreneurs still practice the core entrepreneurial principle of starting a business, there are key differences between the two groups. Socialpreneur vs. Entrepreneur The most significant difference between a socialpreneur and an entrepreneur is the end goal. The former is less interested in defining their successes through high profit margins, but instead by how their operations benefit communities of interest. In addition, some social enterprises may not follow the typical organizational structure — they can be run entirely by volunteers who do not receive a paycheck or individual contributors that participate on their own accord. For example, mutual aid funds are community organized. These funds exist to meet a social need and began from an entrepreneurial idea, but are run by community members that participate as they please. While social entrepreneurship is typically a standalone venture, entrepreneurs can start for- profit businesses that fund programs to support social issues. Let’s go over some real-life examples of small business social entrepreneurship, as well as larger enterprise businesses that engage in social ventures. Top Young Social Entrepreneurs of India 14 CU IDOL SELF LEARNING MATERIAL (SLM)

When a problem arises, people tend to talk about it, but they never consider finding a solution for it. They feel no obligation in addressing the problem until and unless they are personally getting affected by it. What they don’t realize is that by the time the crisis knocks on their doorstep, it’ll be too late to do anything about it. But Among us, there live some individuals, who did not wait for someone else to bring the change. Instead, they themselves decided to be the change. People who only wanted to make the country a better place to live, and in return asked for nothing. And these are the people whom we call social entrepreneurs. Here are India’s top 10 young social entrepreneurs who have taken upon the responsibility of not only changing lives but also changing destinies. 1. Sharad Vivek Sagar Born and bought up in Patna, Bihar, this 26 year old social entrepreneur is on a mission of connecting children from remotest area with best opportunities. Sharad believes that the next generation of leaders is sitting in the classrooms right now, and if provided with the right opportunity, can change the whole world. With this vision, he founded Dexterity Global at the age of 16, and has provided opportunities to more than 1.2 million students. Sharad is one of the few Indians to be enlisted in the Forbes 30 under 30 lists and also one of few to reject a master’s degree from Harvard University. What’s more, he has also been invited by the former U.S president Barack Obama to the white house for an inaugural ceremony. To keep adding to his achievements, the Rockefeller foundation also inducted him in the list of 100 next century innovators. 2. Karthik Naralasetty Karthik dropped out of Rutgers University, New Jersey to create his own startup Redcode Informatics. After running it successfully for a couple of years, he came across an article that changed his life. The article was about a family struggling to find blood for transfusion for their four-year old daughter to treat her thalassemia. Karthik realized how serious the problem insufficient blood is.He gave a hold to Redcode Informatics to start a new venture called social blood. This organization helped the needful connect with blood donors through the means of Facebook. Social blood has partnered with several blood banks in U.S.A and has helped over 300,000 people. Karthik has been felicitated with many awards for his venture. In 2011, he won the staples youth social youth entrepreneur award. Forbes has 15 CU IDOL SELF LEARNING MATERIAL (SLM)

featured him in their 30 under 30 innovators list on two separate occasions. He was recently recognized as one of the 35 under 35 innovators of India by Entrepreneur India magazine. 3. Ria Sharma When Ria came back to India as a part of her final year project at Leeds College of Arts,UK,little did she know that the trip would become more than a just a project for her. RIA came here to film a documentary on the acid victims of the country. She could have forgotten about those victims like the rest of her group did, but chose not to, and thus founded Make love not scars. This crowd funded organization supports victims of acid attacks in all ways possible. They also help these victims portray their talents and urges organization to hire them. In 2015, MLNS started a campaign called End acid sale, with the aim of putting a ban on the retail sale of acids. It became the first Indian campaign in 7 years to win the Cannes Gold Lion in film. RIA’s work in the social sector has made such a huge impact that it has been recognized on the international level. In 2016, RIA was awarded with the British Council’s social impact award. In 2017, she became the first ever Indian to be awarded the United Nations Goalkeeper Global Award. 4. Agnishwar Jayaprakash Agnishwar had a very promising swimming career. At the age of 14, he became the youngest Indian to represent his country at the World championships 2004, Indianapolis, U.S.A. At the age of 22, he represented India at the world Short swimming course swimming championship in Istanbul and also won medals in six categories, again making him the youngest Indian to do so. It was a path full of glory for him ahead, but he decided to take a different way, one that leads to helping others. Inspired by the former president Dr. A.P.J Abdul Kalam to empower the youth of this nation, Agnishwar founded Ignite-India, a nationwide platform for students to promote innovation and entrepreneurship in high schools and colleges. Ignite India connected with over 7000 schools across the country and has been recognized as one of the best socioeconomic educational movement there is by the United Nations. Agnishwar is also a UN youth Ambassador who visions in empowering the students of the country with the 17 SDGs set by the United Nations. 5. Aarushi Batra There are more than 850 Million hungry people out there, but we can only reach a few of them. Helping a few dozen people wasn’t enough for Aarushi. She wanted to feed as many 16 CU IDOL SELF LEARNING MATERIAL (SLM)

mouths as she could and for that sole purpose, along with her 3 friends she founded Robin Hood Army. As the name suggests, this volunteer-based organization aims at providing surplus food to the less fortunate. The volunteers of this organization collect food from restaurants and weddings, pack it with proper hygiene and distribute it among the poor. Robin Hood Army is spread over 60 cities and provided food to over 5 million people worldwide. Aarushi Batra along with her 14000 robins are constantly setting new benchmarks and do not believe in dwelling on their past success. 6. Nivesh Raj We don’t tend to solve problems that are right in front of our eyes, but Dhruv found a solution to a problem that we did not know even existed, employment for the deaf. Dhruv started his career as an investment banker but soon realized that it wasn’t his calling. Later, he joined an NGO called Dasra and came to realize that helping others is what gives him joy and satisfaction. He went to Oxford University on a scholarship to get an MBA degree in social entrepreneurship and during this time he came up with the idea of founding a place where deaf people can work and their skills can be put to use, and this is how Mirakle Couriers were born. It started with three employees an now this company has over 50 employees out of which only three are not deaf. Today, Mirakle couriers handle more than 65000 deliveries per month to more than 40 companies. The extraordinary work done by Dhruv’s company hasn’t gone unnoticed as it has been felicitated with many awards in recent years such as the Hellen Keller award, Echoing green fellowship award and also the National award for the empowerment of people with disabilities, given by the president of India himself. 7. Chetan Gowda The requirement of blood has always been a problem in this world and Chetan realized it in a hard way. At the age of 16, he lost his dear teacher due to lack of blood in blood banks. After this incident, he decided that he won’t let anyone else suffer due to lack of blood and hence he started Khoon, an NGO which devotes itself in providing blood to the needful. In the past 2 years, Khoon has helped more than 50,000 people. It can provide blood in any part of the country in less than an hour. Chetan has been named as one of the most influential 17 CU IDOL SELF LEARNING MATERIAL (SLM)

people in the social sector in India under the age of 21 by Youth for Seva. He is currently an Ashoka youth venture and believes has a lot more to offer to his country. 8. Piyush Ghosh Piyush Ghosh is a 22-year-old former Ashoka Youth Venturer and the founder of the Optimist Citizen, India’s first ever only positive newspaper. This newspaper only publishes positive and inspiring stories from all over the country. It lets the nation know about the people who are making a difference out there but are not getting recognized for it. In 2015, Piyush was felicitated with the Manthan award for his newspaper and is the youngest one to win it. He was also a runner-up for the Queen’s young Leader Award and for it was given to pursue a distance course from the University of Cambridge. Piyush aims of spreading enough positive news that can inspire the entire nation. 9. Olivia Deka The women in our country have always been undermined. As girls, they were made believe that the acceptance by the society is the most important thing for them. It did not matter how strong they were, but it mattered how likable they were. Olivia came to know about this harsh truth very early in her life. The fear of not fitting in was so much in here that she completely stopped believing in herself. In 2015, she was diagnosed with severe Clinical depression. After a lot of efforts, Olivia was able to get her confidence and self-esteem back. But this incident made her realize that she wasn’t the only girl who has or will be facing this problem in her life and did not want them to suffer as she did. Hence she started her for change, an organization devoted to helping girls to find their voice in this society and to make them feel them empowered. Olivia believes that the bridge between gender gap can only be narrowed down if there are more women in a leadership position and she tends to make just those through her organization Small Business Socialpreneurship Some businesses are founded for and dedicated to contributing to social good, and we’ll discuss some of them below. 1. TranSanta TranSanta is a unique social entrepreneurship venture that is community-led. It runs an Instagram account that features and highlights stories from transgender youth in need. These 18 CU IDOL SELF LEARNING MATERIAL (SLM)

individuals create Target wish-lists of items that they need, and interested community members can anonymously purchase and send them what they need. 2. Books to Prisoners A book to Prisoners is a traditional non-profit organization in Seattle, Washington, that aims to end the cycle of recidivism in the prison system. They accept book donations from community members and established bookstores that are then re-packaged and sent to incarcerated individuals. Monetary donations are used to support operational costs, like renting office space, and purchasing supplies necessary to mail books. 3. Cracked It This business is a smartphone repair service in London that is staffed by ‘at risk’ and formerly incarcerated youth. They teach life skills and provide employment and income opportunities to community members that are generally looked down upon and dismissed by greater society. 4. 734 Coffee 734 Coffee is a social venture dedicated to supporting Sudanese refugees. The business works with local co-op farms in Gambella to grow and harvest coffee, sells products to U.S. retailers, and uses a portion of profits to fund scholarships for Sudanese refugees. 5. Belu Based in the U.K., Belu sources and provides water with the lowest possible carbon footprint to hotels, restaurants, and catering businesses. 100% of net profits are donated to Water Aid, a business that provides clean water solutions to underserved communities. 6. Tranquiliti Since 2018, Tranquiliti has worked with teachers, students, and mental health professionals to provide mental health services in schools. They aim to support mental wellbeing and improve educational performance by creating a positive, supportive learning environment. 7. Surfrider foundation Surfrider Foundation is dedicated to environmental stewardship and is led by a community of volunteers and activists that launch campaigns to raise awareness for pollution, marine life protection, clean water, and coastal preservation. They currently have chapters in communities across the U.S. 19 CU IDOL SELF LEARNING MATERIAL (SLM)

8. SOIL Sustainable, Organic, Integratndated Livelihoods (SOIL) is a nonprofit research and development organization that works to implement sustainable, low-cost solutions to the sanitation crisis in Haiti. They employ locally, and 92% of every dollar donated is used to support and enact their environmental programs. Large Business Socialpreneurship Large for-profit enterprises that commit to using funds to support social causes. 1. TOMS TOMS arguably put social entrepreneurship on the map. It started as a one-for-one model; Buy a pair of shoes, and TOMS would give a pair to a child in need. Today, buying a pair of TOM’s shoes or sunglasses provides shoes, sight, water, safe birth, and bullying prevention services to people across the globe. 2. Ben & Jerr’s Ben & Jerry’s, a business primarily known for its ice cream, is also dedicated to using profits to contribute to social good. Their stated mission is “to create linked prosperity for everyone that’s connected to our business: suppliers, employees, farmers, franchises, customers, and neighbors alike,” and they’ve certainly committed to the cause. The business supports positive change in environmentally friendly farming and manufacturing processes, racial justice, and LGBTQ+ issues, to name a few, and they really put their money where their mouth is. For example, their ice cream is priced significantly higher than other brands, but they do so in order to pay their workers a livable wage of $1813 an hour. 3. Warby Parker In 2019, this eyewear company had donated over 5 million pairs of glasses to those in need through their “Buy a Pair, Give a Pair” program. They’ve also disrupted the eyewear industry and spawned countless copycat organizations. 4. Good Eggs Good Eggs is an online grocery and meal kit delivery service that sets itself apart with fresh, local produce and meal kits for a variety of occasions. Their mission: over 70% of their food, 20 CU IDOL SELF LEARNING MATERIAL (SLM)

wine, and spirits are locally sourced, and every item must meet a strict list of sourcing standards. All employees also have a stake in the business, promoting transparent business practices and reinforcing their commitment to the health and safety of the businesses and communities they work with. 5. LUSH This cosmetics company cites environmental awareness and ethical consumerism as its bedrocks. All Lush cosmetics are free of packaging, and the company gives millions to environmental causes each year. 6. Uncommon Goods Independent makers are the backbone of this company. They offer a marketplace for creative to sell their goods with the aim of having a positive impact on people and the planet. They work to minimize their environmental impact and work with artists to use sustainable or recycled materials when possible. 7. GoldieBlox GoldieBlox is a multimedia company committed to disrupting the “pink aisle in toy stores” by using storytelling to make the Science, Technology, Engineering, and Mathematics (STEM) field fun and engaging for young women, a demographic that is systematically underrepresented and underserved in the industry. They create toys, books, apps, videos, animations, and other merchandise to empower girls to build confident, empowered futures. 8. Pipeline Angels In 2017, only 30%of U.S. angel investors were women and only 12% were minorities. Pipeline Angels aims to disrupt that statistic and commits to creating capital and investment opportunities for Trans women, cis women, nonbinary, two-spirit, agender, and gender- nonconforming founders. They run a signature boot camp that educates investors, offer mentoring opportunities, and even host a pitch-summit for entrepreneurs seeking funding. 9. United By Blue 21 CU IDOL SELF LEARNING MATERIAL (SLM)

It is not your ordinary outdoor apparel store, as United by Blue commits to removing one pound of trash from the world’s oceans and waterways per every product purchased. At the time of publication, they’ve removed over three million pounds of trash. 10. Shea Radiance Co-founder Funlayo Alabi and her husband started making soap to solve their family’s dry skin problems. What started as an experiment to heal their sons’ eczema prone skin morphed into a clean and effective product line for hair, skin, and body? Alabi sources all Shea Butter directly from women-run cooperatives in West Africa, which ensures revenue ends up “in the hands of the women who have earned it.” 11. Werk Work believes the future of work is not unchangeable; it’s adaptive to each employee’s skills, motivations, and needs. By helping people find their Flex type, Werk believes they can make work flexible for everyone. 12. Oliberte This shoe manufacturer is a sustainable brand supporting workers’ rights in sub-Saharan Africa. They launched their own factory in 2012 and make every pair of Oliberté shoes from this factory in Addis Ababa, Ethiopia. In 2013, they also became the world’s first Fair Trade Certified™ footwear manufacturing factory. 13. LSTN Sound Co Proceeds from the sales of LSTN speakers and headphones go towards giving hearing aids to people in need through their partner, Starkey Hearing Foundation. 14. FIGS FIGS create super-comfortable, ethically responsible scrubs. They create a high-quality product and donate hundreds of thousands of scrubs to healthcare providers in over 35 countries. 15. Love Your Melon This apparel brand supports and donates to nonprofit organizations dedicated to battling pediatric cancer. 50% of net profits from all products help to create therapeutic experiences and create charitable programming initiatives for families affected by childhood cancer. Social Entrepreneurship Ideas 22 CU IDOL SELF LEARNING MATERIAL (SLM)

Here are a few social entrepreneurship ideas and some guidelines for how to develop an idea that's all own: 1. Crowd funding 2. Baking for a cause 3. Electricity or technology projects for the developing world 4. Conflict-free or fair-trade goods 5. Educational travel 6. Employment services 7. Crafting for a cause 8. Micro-lending 9. Facilitating exercise among disadvantaged communities 10. Sustainability housing and development 11. Mentorship or funding for entrepreneurs in developing countries 12. Diversity and inclusion initiatives in the classroom 13. A cooperative marketplace How to Pick a Social Entrepreneurship Idea Define your passions and areas of interest. Define what one is passionate about and proceed to step two... 1. Identify existing market the gaps. Once you know what you’re passionate about, it’s time to decide what the gaps are in existing products/services and determine how you can fill those gaps. If the food pantry you volunteer at can’t disseminate fresh, donated produce before it spoils, think about how you could provide a service that makes it faster and easier to get fresh produce to the underserved communities in your area. 2. Identify your key strengths and skills. Are you an excellent writer or a salesperson extraordinaire? List your strengths and skills, and define how they can serve your mission. This is also an excellent time to identify your weaknesses, so you know who to call upon for help. 3. Decide on a business model. 23 CU IDOL SELF LEARNING MATERIAL (SLM)

Being a social entrepreneur is not always the same as starting a nonprofit. Determine whether you’ll monetize your idea, how you’ll monetize your idea, and decide on a business model. Whether you’re interested in a cross-compensation model like TOMS and Warby Parker or complete stewardship like Books to Prisoners, it’s important to understand how your business will be structured. Starting a business is a tedious, involved process, but there are various, successful social entrepreneurs Social Entrepreneurs 1. Jazzmine Raine Raine is the founder of Har House, the first zero waste guest house in Bikaner, Rajasthan, India. The area is a tourist destination with a vibrant environmental scene. Of the house’s profits, 20% go to helping local youth get involved in economic opportunities, social justice, and environmental education. The youth help run the guest house, tours, and a community center. 2. Muhammad Yunus Yunus is the founder of Grameen Bank. This Bangladesh-based institution provides small loans to those living in poverty. 97% of their borrowers are women -- and these women pay their loans back at a rate of 97%. The bank has managed a net income of $10 million, has 2,568 branches, and covers 93% of total villages in Bangladesh. His work has also earned Yunus a Nobel Prize. See his Talks at Google session on “The New Economics of Zero Poverty” belo 3. Scott Harrison Charity water CEO and INBOUND speaker Scott Harrison founded his nonprofit to bring clean, safe drinking water to people in developing countries. They track every dollar raised to the project it funds, and private donors cover their operating costs to 100% of the money they raise can fund their water projects. Till now they’ve funded 38,113 water projects, helped almost 10 million people get clean water, and partnered with 37 local partners in 27 countries. Check out Harrison’s INBOUND 2018 keynote below. 4. Vava Angwenyi Kenyan coffee entrepreneur Vava Angwenyi started with one small coffee bar in her town, but she was soon helping farmers improve the quality of their coffee, their brand, and their 24 CU IDOL SELF LEARNING MATERIAL (SLM)

sales. Soon, Vava Coffee was born. Angwenyi’s company now serves as an exporter, roaster, and consultative partner working with more than 30,000 smallholder farmers who earn 18% more by working with Vava. Angwenyi’s first company has been so successful; it inspired her to start Gente Del Futuro, a cross-cultural coffee training program in Tanzania, Kenya, and Columbia. Hear more about Vava’s work in her recent presentation at the Re: co Symposium. 5. Durell Coleman Coleman is the founder and CEO of DC Design, a social impact design firm putting design thinking to use solving some of the world’s biggest problems. His firm has addressed challenges in the criminal justice and foster care systems in the United States. They’ve also designed solutions for refugee camps, and they’ve worked with executives at global enterprise organizations like Sony, Oracle, and Santander. 6. Emily Kirsch Kirsch started powerhouse after working with solar startup Mosaic to put solar panels on houses in Oakland, California. Today, Powerhouse supports clean energy entrepreneurship through a network of energy-focused co-working spaces. It also offers venture backing for early-stage energy startups. Powerhouse also facilitates a series of signature events, from the Sun code hackathon to Powerhouse Circle and even a monthly podcast called “Watt it takes”” 7. Tony Weaver Jr. Weaver is founder and CEO of Weird Enough Productions, a media company focused on creating stories that inspire positive media images of black men and other minority groups. With every piece of content they create, they also produce a lesson plan for teachers to introduce media literacy to their students. Check out Weaver’s recent TEDx Talk below Tips for Women Entrepreneurs With each passing year, more and more women are finding success in their entrepreneurial ventures. In fact, according to the American Express “2019 State of Women-Owned Businesses Report,” women-owned businesses grew from 4.6% to 42% of Challenges for Women Entrepreneurs Such progress is encouraging, but there are still many challenges for women in business. Some of the most common roadblocks that women entrepreneurs face include: 25 CU IDOL SELF LEARNING MATERIAL (SLM)

1. Defying social expectations. Too often, entrepreneurship is still considered a predominantly male undertaking. 2. Accessing needed funds. There remain significant funding gaps for women entrepreneurs as compared to male entrepreneurs. Women of color are at the greatest disadvantage of all. 3. Building support networks in fields that are still dominated by men can be difficult for women. 4. Balancing business and family remains a challenge for women, particularly for working moms. Guidelines for Women Entrepreneurs For women who wish to embark on the road to entrepreneurship, some basic tips and best practices include: 1. Don’t be afraid to fail; failure is a natural part of the entrepreneurial journey. As long as you learn from your failure, it doesn’t have to define you. 2. Seek feedback and data wherever possible, including research into key competitors. See what works and what doesn’t work for other ventures in your field. 3. Become an avid learner. Continually read books, immerse yourself in new skills, and commit to being curious. 4. Don’t neglect your personal brand. 5. Build a reputation for thought leadership. 6. Use public speaking opportunities, blogging, guest blogging, social media, or video. 7. Don’t surround yourself with flatterers, but also don’t entertain too many doubters in your orbit. Seek counsel from those who can encourage but also offer constructive criticism. Continue to network and build relationships across your industry. Conferences and professional events can be invaluable 1.5 SUMMARY  An entrepreneur is someone who takes on an entrepreneurial venture to create something new that solves a problem; small business ownership and franchising are also entrepreneurial options. 26 CU IDOL SELF LEARNING MATERIAL (SLM)

 The venture could be for Prof It or not for profit, depending on the problem it intends to solve.  Entrepreneurs can remain in a full-time job while pursuing their ideas on the side, in order to mitigate risk.  On the opposite end of the spectrum, entrepreneurs can take on lifestyle ventures and become serial entrepreneurs.  There are many factors driving the growth of entrepreneurship, including employment instability, motivation to create something new, financial factors and free time associated with retirement, and the greater acceptance of entrepreneurship as a career choice.  The cultures of nations around the world affect the ability for entrepreneurs to start a venture; Entrepreneurs often find inspiration in social, environmental, and economic issues. 1.6 KEYWORD  Microfinance ―small-scale financial services primarily credit and savings— provided to people who farm, fish or herd‖ and adds that it refers to all types of financial services provided to low-income households and enterprises.  Entrepreneurship - An entrepreneur is a person who has possession over a new enterprise or venture and assumes full accountability for the inherent risks and outcome. The term is a lone word from French and was first defined by Irish economist Richard Cantillon A female entrepreneur is sometimes known as entrepreneurs. However, Entrepreneur in English is a term applied to type of a personality who is willing to take upon herself or himself a new venture or enterprise and accepts full responsibility for outcome. (Veira, X. (2008).  Ecopreneurship Ecopreneurship is entrepreneurship where a major, or perhaps the main, focus of the business is to operate sustainably or to help the environment, such as through recycling or fighting climate change 1.7 LEARNING ACTIVITY 1. Define Entrepreneurship Development ___________________________________________________________________________ ___________________________________________________________________________ 27 CU IDOL SELF LEARNING MATERIAL (SLM)

2. State the Characteristics of Entrepreneurship ___________________________________________________________________________ ___________________________________________________________________________ 1.8 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Define Entrepreneur? Explain its scope 2. Identify and discuss the role of Entrepreneurship functions? 3. Elaborate about the nature or characteristics of Entrepreneurship and its relevance in present scenario. 4. Define Ecopreneurship 5. Define microfinance Long Questions 1. Importance of Entrepreneurship 2. Types of Entrepreneurs 3. Role of Entrepreneurship in the society 4. Benefit of entrepreneurship to economy 5. Challenges faced by B. Multiple Choice Questions 1. Which of the following shows the process of creating something new: a. Business model b. Modelling c. Creative flexibility d. Innovation 2. ________ are the resources that provide utility value to all other resources. a. Men b. Material c. Money d. Machinery 3. A corporate manager who starts a new initiative for their company which entails setting up a new distinct business unit and board of directors can be regarded as 28 CU IDOL SELF LEARNING MATERIAL (SLM)

a. Ecopreneur b. Technopreneur c. Intrapreneur d. Social Entrepreneur 4. Family business always interested to handover the change of his business to: a. Indian Administration Officers b. Professional Managers c. Next generation d. Private Managers 5. A Micro Enterprise is an enterprise where investment in plant and machinery does not exceed (According to MSMED Act, 2006): a. Rs. 25 Lakh b. Rs. 20 Lakh c. Rs. 15 Lakh d. Rs. 30 Lakh Answers 1-d, 2-a, 3-c. 4-c, 5-a 1.9 REFERENCES References book  Poornima M. Charantimathv (2006) “Entrepreneurship Development and Small Business Enterprises,” Dorling Kindersley (India) Pvt. Ltd, New Delhi.  Sanjay, Anshuja Tiwari (2007) Entrepreneurship Development in India”, sarup & Sons publications, New Delhi.  Ramachandran (2009) Entrepreneurship DevelopmTata McGraw –Hill Education Pvt.Ltd. New Delhi.  Pawan Kumar Sharma (1991) “Development banks and entrepreneurship promotion in India”, Mittal publications, New Delhi.  C.P. Yadav (2000) ‘Encyclopaedia of Entrepreneurship Development, Anmol Publications, New Delhi. Textbook references 29 CU IDOL SELF LEARNING MATERIAL (SLM)

 “Entrepreneurial Development and Small Business Management” by Dr P T Vijayashree & M  “Entrepreneurial Development” by Desai Website  http://eagri.org/eagri50/ARM402/index.html  http://pioneerinstitute.net/activities/6188-entrepreneurship-development-cell.htm  https://www.srecwarangal.ac.in/centre-for-enterprenurship.php  https://fredericodeigah.wordpress.com/2012/10/12/introduction-to-entrepreneurship- development/  http://ncert.nic.in/ncerts/l/lebs213.pdf 30 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 2: INTRODUCTION TO NEW VENTURE OPPORTUNITIES AND CHALLENGES STRUCTURE 2.0 Learning Objectives 2.1 Introduction to New Venture 2.2 Opportunities and Challenges 2.3 Process in New Venture 2.4 Case Studies 2.5 Summary 2.6 Keywords 2.7 Learning Activity 2.8 Unit End Questions 2.9 References 2.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Describe nature of New Ventures and their introduction  Identify scope of new Ventures  State the Opportunities of New Ventures  List the Challenges of New Ventures 2.1 INTRODUCTION Every venture or endeavor starts with an idea. Hence, the start-up phase follows after the phase of 'seed and development', where your business is just a thought or idea, essentially signifying the birth of the business. Many consider the start-up phase to be the riskiest in the entire lifecycle New venture development involves various activities in creating a business that can be competitive in the market (Morse and Mitchell, 2006). It is the way most individuals come up with an idea and develop it by generating a product or service. 31 CU IDOL SELF LEARNING MATERIAL (SLM)

The current focus on globalisation and the rapid development of technology have vastly improved the potential for new venture creation. Small business and new ventures have long been considered economic indicators of a nation’s economic health and prosperity The increasing awareness of global markets and rapid market expansion has served to create a wide and varied range of new potential which allows businesses to expand their scope of operations across international borders 2.2 OPPORTUNITIES AND CHALLENGES The economy of every country depends on its countrymen. Larger the number of employed or working people, better the economy. The Indian Government realized that Indian people have a potential to work hardly, all they need is a promising start up. Many people dream of starting up their own business but due to financial or other similar issues are unable to do so. So, Indian Government in the leadership of Narendra Modi has decided to offer a gift as a nation wise programme – “Startup India”. “Startup India is a revolutionary scheme that has been started to help the people who wish to start their own business. These people have ideas & capabilities, so the Government will give them support to make sure they can implement their ideas and grow. Success of this scheme will eventually make India a better economy and a strong Nation.” Startup India is an initiative of the Government of India. The event was inaugurated on 16 January 2016 by finance minister Arun Jaitley. Opportunities for Startups: Large Population: The population of India is a huge asset for the country. By 2020, it is expected that the working age population would surpass the non-working population. This unique demographic advantage will offer a great opportunity to any startup. Various infrastructure issues and the bottom- of- the- pyramid market would provide huge opportunities for the startups.  Connectivity: Indian telecom industry has nearly 100 crore subscribers, mobile connectivity has made inroads in the rural and urban population. Government of India’s digital push is going to improve connectivity and data to the next level. The race to cheapest data has started and disruption is certain. The cheap data has helps everyone to get their hands on it, start-ups will have an easier time to tap into markets, territories and even traditional businesses. 32 CU IDOL SELF LEARNING MATERIAL (SLM)

 Change of Mind Set of Working Class: Traditional career paths will be giving way to Indian start up space. Challenging assignments, good compensation packages would attract talented people to start-ups. Also, it is seen that several high profile executives are quitting their jobs to start or work for start-ups. To reinforce the trend being seen, a survey conducted by Economic Times also confirmed that the number of Students joining start-ups and e-commerce companies have grown considerably in the recent years.  Innovation Society: India has the largest youth population, which is the largest driver for innovation, workforce, talent and future leaders. India has its own challenges of education, health, infrastructure and the rising gap between India and Bharat. This presents big opportunity for start-ups to solve a variety of problems. India has the population of 1.3 billion people; the country’s middle class is growing along with the consumers. The large diversity in the India’s population makes a strong case for a rich services and products economy. Start-ups should look at banks; our banking system has reaped the maximum benefit of our population size. Challenges for Startups: The followings are challenges for startups discussed below: 1. Revenue Generation: Several start-ups fail due to poor revenue generation as the business grows. As the operations increase, expenses grow with reduced revenues forcing start-ups to concentrate on the funding aspect, thus, diluting the focus on the fundamentals of business. Hence, revenue generation is critical, warranting efficient management of burn rate which in common parlance is the rate at which start-ups spend money in the initial stages. The challenge is not to generate enough capital but also to expand and sustain the growth. Supporting Infrastructure: There are a number of support mechanisms that play a significant role in the lifecycle of start-ups which include incubators, science and technology parks, business development centers etc. 2. Lack of access to such support mechanisms increases the risk of failure. Financial Resources: Availability of finance is critical for the start-ups and is always a problem to get sufficient amounts. A number of finance options ranging from family members, friends, loans, grants, angel funding, venture capitalists, crowd funding etc. are available. The requirement starts increasing as the business progresses. Scaling of business requires timely infusion of capital. Proper cash management is critical for the success of the start-ups. 33 CU IDOL SELF LEARNING MATERIAL (SLM)

3. Creating Awareness in Markets: Start-ups fail due to lack of attention to limitations in the markets. The environment for a start-up is usually more difficult than for an established firm due to uniqueness of the product. The situation is more difficult for a new product as the start-up has to build everything from scratch. 4. Government Policies: If entrepreneurs are the planets in the solar system, then the government is the sun, the single largest facilitator. The government policies are slowly and steadily increasing, although, it must be noted that India still maintains a dismal ease of doing business raking as per the World Bank report. Due to a maze of laws and regulations, it takes more of an effort for an entrepreneur to start a business in India than most of the other places in the world, and after he /she succeeds in setting up a business, it takes even a greater effort to comply with sector, department, state and center laws. Conclusions:  The current economic scenario in India is on expansion mode. The Indian government is increasingly showing greater enthusiasm to increase the GDP rate of growth from grass root levels with introduction of liberal policies and initiatives for entrepreneurs like “Make in India”, “Start-up India”, MUDRA etc.  “Make in India” is great opportunity for the Indian start-ups. The start-up area has lot of challenges ranging from finance to human resources and from launch to sustaining the growth with tenacity. Being a country with large population, the plethora of opportunities available are many for start-ups offering products and services ranging from food, retail and hygiene to solar and IT applications for day to day problems which could be delivered at affordable prices.  It is not out of place to mention that some of these start-ups would become unicorns and may become world renowned businesses by expanding into other developing and underdeveloped countries. In India, the opportunities for the start-ups are immense, but so are the challenges. It will take combined efforts from the government and the start-ups to overcome these challenges 34 CU IDOL SELF LEARNING MATERIAL (SLM)

2.3 PROCESS IN NEW VENTURE Introduction: Venture capital is a form of funding that pools together cash from investors and lends it to emerging companies and startups that the funds believe have the potential for long-term growth. Venture capital investments typically involve high risk in exchange for potentially high reward. Because every company is different, the various stages can vary somewhat from financing to financing. Generally speaking, though, there are five typical stages of any venture capital financing. Here is a step-by-step approach for starting a new venture. These can be divided into three stages: 1. Pre-launch Stage The following steps are involved in a Pre-launch stage in starting of a new venture.  Identify, Analyze and decide on the business idea.  Analysis of strengths, weaknesses, opportunities and threats.  Analyze competition and select the positioning strategy.  Estimate and forecast the market size, growth and marketing feasibility which involve measurement of demand — supply gap.  Whether to be an ancillary unit.  Understand the technology, process and selection of the idea.  Decide on the size of the enterprise in terms of production capacity, employees.  Decide on the location of the venture.  Identify the incentives given by the Government to promote the small and medium industries.  Understand the relevant laws which are applicable for the business.  Analyse the business idea as opportunity in terms of Profit, costs, expenditure, income, sales, and market share.  Estimation of manpower requirements. 35 CU IDOL SELF LEARNING MATERIAL (SLM)

Pre-Launch Stage of a new venture involves collection of information through primary and secondary sources of data. It is a critical stage. The skills that are required are entrepreneurial skills of business opportunity identification and analytical skills. The functional areas of marketing and finance dominate this stage. Forecasting skills are also required in this stage. 2. Launch Stage  Selection of the Name of the enterprise.  Hiring or construction of building  Deciding on the ownership pattern — sole proprietor, partnership, private or public limited company and limited liability partnership.  Registration of the firm. If it is a partnership firm, then agreements has to be signed. The registration processes of SMEs have been streamlined. Now provisional registration certificate can be obtained online with District Industries Centre.  Preparation of business plan and project report.  Deciding on the product mix and markets to serve.  Application for loan to banks. If private or public, issue of shares.  Rising of finance.  Ordering and installation of machinery.  Recruitment of people.  Deciding on the channel of distribution.  Sources of raw materials to be finalized and purchases made.  Production started.  Products to be made available in the market. In Launch stage of a new venture, operational actions and decisions are taken. It requires managerial skills of coordination with the various agencies. Project management skills are required. There is lead time from planning to implementation stage. Close monitoring has to be made to see that the launch is as per the plan. Delay will increase the cost and have impact on the finances of the firm. 3. Post Launch  Teething problems to be solved. 36 CU IDOL SELF LEARNING MATERIAL (SLM)

 Systems to be developed in all the areas of management  Feedback on the product  Changes if needed to be introduced.  Expansion decisions. After launch of the business, the gestation period varies from one to three years. The provisional certificate is valid for a year. After commencement of business, permanent certificate is to be obtained from District Industries Centre. An entrepreneur has to plan and prepare for this critical period. The profits will start flowing once the business settles down. All the businesses may not succeed so mental preparation for failure and exit route should also be a part of the business plan. 2.4 CASE STUDIES 1. EduKart Industry - Education, Ecommerce Location - New Delhi Founder(s) - Ishan Gupta Headcount – 50 employees Services Offered – This venture is backed by investors like Yuvraj Singh, EduKart helps a student right from the time he or she decides to pursue a course to the time the enrollment is completed. This platform facilitates students to enroll in a degree, diploma, and certificate, entrance coaching and school education courses, thus catering to the entire education life cycle of an individual, making it a unique platform in the Indian education industry. 2. CashKaro.com Industry - E-commerce Location - Gurgaon, Haryana Founder(s) - Rohan & Swati Bhargava Headcount – 60 employees 37 CU IDOL SELF LEARNING MATERIAL (SLM)

Services Offered - CashKaro.com is a cash back and coupons website. Members can get up to 50% extra cash back on their online shopping at over 1000 sites when they shop via CashKaro. All Cash back can be paid to users' bank accounts as real cash. 3. Urban Clap Industry - E Commerce Location - Gurgaon-based, present across 6 cities Founder(s) - Abhiraj Bhal, Varun Khaitan, Raghav Chandra Headcount – 300 employees Services Offered- Urban Clap is another booming start up that helps its users in finding the right service professionals for the activities required by them. All types of professional and personalized services are available through Urban Clap Services ranging from decoration of your home to pre-wedding and wedding photography, make-up artists, plumbers and electricians all are available at your doorbell. This venture helps you fulfill all your service needs. Urban Clap’s vision is to use technology and smart processes to organize the highly unorganized services market in India and emerging markets. At present, Urban Clap is available in 6 cities and has plans to launch in 5 more cities. Top Indian Start-ups to Watch in 2021 India is known for many things, a bustling tech support sector, being one of the most populous countries on earth, and its amazing cuisine. Despite this, India has a very active and fast-growing startup ecosystem. The country is currently home to around 38; 000 different Indian startups and there are also currently more than 5,000 investors that are currently active in the Asian country. The ecosystem in India is also said to be the third -largest in the world, with the country having created 38 unicorns as of January 2021. This shows that that is a lot of top Indian startups to watch in 2021. India's startups aren't strangers to attracting outside investment. Despite the complications of the COVID-19 pandemic, the country's startups managed to raise a cumulative $10 Billion in funding during 2020, which is a marked increase from the $6.6 Billion raised in 2018. 38 CU IDOL SELF LEARNING MATERIAL (SLM)

This indicates rapid growth in the Indian startup ecosystem. Down below, you can see a list of the 21 top Indian startups to watch in 2021. 1. Udaan Year Founded: 2016 HQ: Bangalore, Karnataka, India Size: 5001-10,000 Founder(s): Amod Malviya, Sujeet Kumar, Vaibhav Gupta Udaan is an Indian startup that is currently based in Bangalore, India. The company's offering centers around creating an environment for goods manufacturers, tradespeople, and wholesalers under one roof. This means that a business can access most of the services they need, all in one place. Their platform even comes with a live chat feature that allows the users to interact with each other in a variety of different languages. Their platform is making the B2B environment in India, easier and more convenient. Since being founded in 2016, Udaan has attracted a lot of attention from a variety of investors. A grand total of thirteen investors have collectively pledged a massive $1.2 Billion to the business during its five years in operation. One of these investors includes the Chinese technology company Tencent. The company has also made its own investment, putting money into the restaurant startup Petpooja at the start of 2020, making Udaan one of the most exciting startups in India. 2. Ola Year Founded: 2010 HQ: Kormangala, Karnataka, India Size: 5001-10,000 Founder(s): Ankit Bhati, Bhavish Aggarwal Ola is an Indian startup that is based in Kormangala, India. You might be thinking that they're just another Uber clone, but you couldn't be further from the truth. Whilst the company does offer cab-hailing as one of its features, they also offer a way to hire bikes, busses, and much 39 CU IDOL SELF LEARNING MATERIAL (SLM)

more. All of this can be done from the convenience of the company's mobile app, making getting around India and other locations much easier for customers. Ola has been very active in attracting investment and even making its own acquisitions. The company has received a total of $3.8 Billion in investment funding from 44 different investors through a series of different funding rounds. So far, the company has also made six acquisitions over the years, with other transport and tech startups becoming a part of the company's brand. The level of funding and current success makes Ola one of the most interesting startups in India during 2021. 3. Dunzo Year Founded: 2015 HQ: Bangalore, Karnataka, India Size: 1001-5000 Founder(s): Ankur Aggarwal, Dalvir Suri, Kabeer Biswas, Mukund Jha Dunzo is a delivery and e-commerce startup that is currently based in Bangalore, India. The company's offering features a delivery app that aims to focus on a hyper-local level. This means that customers will be linked with local delivery providers and businesses so that they can expand their online presence. For instance, customers can get groceries, medicine, pet supplies, and much more delivered to their homes. Dunzo has attracted a great deal of investment from a large group of well-known investors. Dunzo has managed to raise a significant $128.4 Million from a group of 24 investors that include the likes of Google and Light box. With the current COVID-19 pandemic, delivery services are seeing more use than ever and this trend will surely help Dunzo grow in the near future as one of the premier India startups. 4. Razorpay Year Founded: 2014 HQ: Bangalore, Karnataka, India Size: 1001-5000 Founder(s): Harshil Mathur, Shashank Kumar 40 CU IDOL SELF LEARNING MATERIAL (SLM)

Razor pay is an Indian startup that was founded in 2014 and is currently headquartered in Bangalore, India. The company provides a platform for businesses to make and take payments through their online platform. Users will be able to make payments in a variety of different modes, including debit and credit cards, online banking, and various payment wallet platforms. This makes the process of taking payments much easier for business. Razor pay’s business model and product offering have been validated by the mammoth investment they have received. The company has received a total of $366.6 Million from a group of 29 investors to further the growth of its startup. The company has also been active in the acquisitions market, having taken over Opfin and Third Watch in 2019. Razor pay has become one of the most exciting and rapdily growing example of the success of India startups. 5. Pharm Easy Year Founded: 2016 HQ: Mumbai, India Size: 501-1000 Founder(s): Dharmil Sheth, Dhaval Shah, Mikhil Innani Pharm Easy is a healthcare technology startup that is currently based in Mumbai, India, and was founded in 2015. The company's offering revolves around providing their customers with medicine delivery services, the collection of tests from diagnostic samples, and healthcare consultations that are carried out remotely. This is a very important offering in India currently as the COVID-19 pandemic continues to massively impact the country. The company has seen massive success in terms of attracting outside investment. So far, the company has received $651.5 Million in funding from a group of 25 investors. The company has also had one count of activity in the acquisitions market, completing a takeover of fellow Indian medical startup Medlife in 2020 for $235 Million. 6. Digit Insurance Year Founded: 2016 HQ: Bengalaru, Karnataka, India 41 CU IDOL SELF LEARNING MATERIAL (SLM)

Size: 1001-5000 Founder(s): Kamesh Goyal Digit Insurance is an Indian startup in the insurance sector that was founded in 2016 and is currently headquartered in Bangalore, India. The company aims to make insurance much easier for the general population by restructuring the way pricing works and changing the way people actually buy insurance products. So far, they have been achieving rave reviews, which show that what they're doing is working. Digit Insurance has received a large amount of funding from a small group of four investors which includes Fairfax Group. In total, Digit Insurance has raised $244.5 Million since being founded five years ago and the company has had some activity in buying out other companies- taking over the fellow Indian insurance startup ITI Reinsurance for $72.8 Million in 2018. Although, they haven't made any other moves since then. 7. MoneyTap Year Founded: 2015 HQ: Bangalore, India Size: 101-250 Founder(s): Anuj Kacker, Bala Parthasarathy, Kunal Varma MoneyTap is an Indian startup that is based in Bangalore, India. The company was founded in 2015 and since then has developed a solution that provides its customers with a flexible, personal credit line- all from the convenience of an app. You can have up to 36-months to pay it back in certain circumstances. This can be a really great help for people and the company does it in a way that's fair. So far, the company has managed to get a substantial amount of startup funding, with $40.3 Million being raised from a group of six investors. Convenience is key in the modern world and MoneyTap has that in buckets, which will see them through 2021 and the future. Providing easy credit to the financially disadvantaged makes MoneyTap a premier example of India's startups. 8. Yellow Messenger 42 CU IDOL SELF LEARNING MATERIAL (SLM)

Year Founded: 2016 HQ: Bangalore, Karnataka, India Size: 251-500 Founder(s): Anik Das, Jaya Kishore Reddy Gollareddy, Raghu Kumar, Rashid Khan Yellow Messenger is an AI-based technology startup that is based in Bangalore, India, and was founded in 2016. The company's primary offering takes the form of providing AI-driven customer engagement solutions to be used in conjunction with instant messaging platforms that the business may use. For instance, Google, WhatsApp, and Slack. They even provide advanced solutions for Virtual Assistants. Since being founded in 2016, Yellow Messenger has amassed a respectable sum of investment, which stands at $24 Million. This money was raised from a group of three investors including Light speed Venture Partners and Microsoft Accelerator Bangalore. This investment and the reputation of the investors show their faith in the business model of Yellow Messenger. 9. CRED Year Founded: 2018 HQ: Bangalore, Karnataka, India Size: 251-500 Founder(s): Kunal Shah CRED is an Indian startup that is based in Bangalore, India and was founded in 2018. The company seeks to incentivize credit card users to pay their credit card bills on time. This is achieved through rewards of financial value being paid for each time this happens. There is also a range of features to help people manage their credit card spending. Finally, customers will also get access to a range of credit and products from leading brands. CRED has received a massive amount of funding in the three short years that they have been operating. In total, this funding stands at $471.2 Million and was raised by a group of 28 different investors, which includes the American company, Insight Partners. Rewarding people for managing their finances is a good USP and these investors clearly believe that too. 43 CU IDOL SELF LEARNING MATERIAL (SLM)

10. ZestMoney Year Founded: 2015 HQ: Bangalore, Karnataka, India Size: 101-250 Founder(s): Ashish Anantharaman, Lizzie Chapman, Priya Sharma ZestMoney is a fintech startup that was founded in 2015 and is currently headquartered in Bangalore, India. The company wanted to make the process of shopping and paying in EMI much easier for those who didn't have access to a credit card, or maybe don't have a good credit score. This made the process of using EMI available for millions of people across India. ZestMoney has already seen a notable amount of investment in the six years since it was set up. At the time of writing, the company has managed to amass an investment total of $68.4 Million, from a group of 14 investors. Notably, some of these investors include Goldman Sachs and the crypto currency platform Coin base. 11. Cult. Fit Year Founded: 2016 HQ: Bangalore, Karnataka, India Size: 101-250 Founder(s): Ankit Nagori, Mukesh Bansal Cult fit is a healthcare technology startup that was founded in 2016 and is currently based in Bangalore, India. The company seeks to make fitness more fun and much easier by offering a blend of online and offline learning resources related to the topics of fitness, nutrition, and mental health wellbeing. This even includes things like yoga. As modern life becomes busier, being able to have all of these things under one roof makes things a lot easier. Cult. Fit has received a massive amount of support in terms of investment, with the company has gained $404.6 Million from a group of 32 investors. It should be noted that one of these investors includes Unilever. The company has also been active in the investments and 44 CU IDOL SELF LEARNING MATERIAL (SLM)

acquisitions market, making one investment and acquiring eight different companies. It is likely that they will continue to go to new heights in 2021. 12. Coolberg Year Founded: 2016 HQ: Mumbai, India Size: 101-250 Founder(s): Pankaj Aswani, Yashika Keswani Coolberg is a craft beer startup that was founded in 2016 and is currently headquartered in Mumbai, India. The company is based around catering to the growing market for non- alcoholic beer as more people reflect on their drinking habits. The company prides itself on its high-quality marketing and the great taste of its beers. So far, the company has received a respectable level of outside investment, with $3.5 being given to the company for further development and growth. These investors are seven in number and it looks likely that the company will continue to grow in 2021. 13. Craftsvilla Year Founded: 2011 HQ: Mumbai, India Size: 101-250 Founder(s): Bhavik Jhaveri, Manoj Gupta, Monica Gupta, Sarvajeet Chandra Craftscilla is an e-commerce and fashion startup that was founded in 2011 and is currently based in Mumbai, India. The company is based around providing customers with authentic Indian fashion items from small businesses and individual designers. This gives smaller businesses a chance to break out into the fashion market. So far, the company has gained a good amount of investment at $62.7 Million that was raised from a group of five investors. One of these investors is light speed Venture Partners. The company has also been very active in terms of acquisitions, having taken over three different companies since 2011. They were all other technology startups. 45 CU IDOL SELF LEARNING MATERIAL (SLM)

14. CropIn Year Founded: 2010 HQ: Bangalore, Karnataka, India Size: 101-250 Founder(s): Krishna Kumar Cropln is an agricultural technology startup that was founded in 2010 and is currently headquartered in Bangalore, India. The company has won awards for its work in making farms digital and building the digital infrastructure for farmers. Their solutions include remote sensors, AI functionality, and analytics to drive efficiency in farming. Which is currently a big issue when considering global sustainability? CropIn has received a healthy level of investment from outside sources, with the company receiving $32.6 Million from twelve different investors. Interestingly, one of the investors behind their business is the Bill and Melinda Gates Foundation. With their focus on bringing farming into the modern age, it is likely that the desire for CropIn's services will only increase. 15. Vernacular.ai Year Founded: 2016 HQ: Bangalore, Karnataka, India Size: 51-100 Founder(s): Akshay Deshraj, Manoj Sarda, Sourabh Gupta Vernacular ai is an AI-based software startup that was founded in 2016 and is currently headquartered in Bangalore, India. The company offers an automated call center solution that utilizes AI to work. Improved speech recognition capabilities among other features improve engagement with customers and the operations of your contact center. So far, Vernacular has raised a respectable $5.1 Million in funding from a group of seven investors. They've achieved this total through four rounds of fundraising. With this backing 46 CU IDOL SELF LEARNING MATERIAL (SLM)

and the demand for call centers increasing, the company is likely to continue succeeding throughout 2021. 16. Stashfin Year Founded: 2016 HQ: New Delhi, India Size: 51-100 Founder(s): Tushar Aggarwal Stashfin is a fintech startup that is based in New Delhi, India, and was founded in 2016. Since then, the company has broken into the finance space with its offering of digital lending. The whole point of their business model is that you get your money quickly and easily. You can even get your line of credit converted into the form of a card- meaning you don't have to worry about day-to-day transactions. To date, the company has received significant support in terms of startup funding- with $75 Million being raised in five years. This funding was achieved because of a group of 14 investors, across three rounds of funding. 17. Loan Frame Year Founded: 2015 HQ: New Delhi, Delhi, India Size: 11-50 Founder(s): Akshun Gulati, Rishi Arya, Shailesh Jacob Loan Frame is a fintech startup that is based in New Delhi, India. The company was founded in 2015 and since then has gone on to offer easy and fast loans for small businesses. They even have specialist products available for supply chain finance and inventory finance amongst others. The company has made it much easier for small businesses to operate in India, which has been key to their early success. 47 CU IDOL SELF LEARNING MATERIAL (SLM)

To date, Loan Frame has managed to raise a good sum of money to further the development of their business. So far, they've managed to raise $12.3 Million in startup funding from a pair of investors. 18. Qure AI Year Founded: 2016 HQ: Mumbai, India Size: 11-50 Founder(s): Prashant Warier Qure AI is a healthcare technology startup that utilizes artificial intelligence. The company uses these algorithms to better facilitate and conduct reviews of any medical imaging that is done for a patient. This means that doctors will have to spend less time conducting routine medical work, which leaves them with the time to personally cater to their patient's needs. This presents benefits for both the healthcare providers and the end-users. So far, pair of investors have shown their faith in the company's offering. To date, Qure AI has managed to raise $16 Million in their one and only funding round. The company is also working to fight the COVID-19 pandemic, with AI-driven pandemic response suites being offered to healthcare authorities. 19. Playment Year Founded: 2015 HQ: Bangalore, Karnataka, India Size: 11-50 Founder(s): Ajinkya Malasane, Akshay Lal, Siddharth Mall Playment is an AI-powered software startup that is based in Bangalore, India. Since the company was founded in 2015, they have built solutions for businesses in mapping, self- driving vehicles, and drone spaces. Their offering is based on their high-quality data labeling and annotating services. So far, the company has seen backing and validation of their offering by virtue of the $2.5 Million in startup funding that they've raised. This funding was accumulated from a group of 48 CU IDOL SELF LEARNING MATERIAL (SLM)

six investors, including Google Launchpad Accelerator and Y Combinator. These are well- respected investors and they've surely seen something that they like. 2.5 SUMMARY  New Ventures in India is booming fast and sees huge growth in the coming years with new innovation and technology  In around a decade, the Indian start up ecosystem has scaled to become 3rd largest start hub in the World followed by the US and China. No doubt the successes of consumer internet companies have played and continue to play a big role in that. The ecosystem has seen a cycle of boom, bust and exits with a promise that India has the ability to return capital to investors, proved to an extent by Flipkart’s sell out. 2.6 KEYWORDS  Creativity- Creativity involves coming up with ideas. Entrepreneurship involves capturing ideas, converting them into products and services, and then building a venture to take the product to market.  Startup - According to Steve Blank, entrepreneur and developer of the customer development method, “a startup is a temporary organization in search of a scalable, repeatable, profitable business model.  Virtual Elevator Pitch – A virtual elevator pitch is a 30- to 60-second video alternative to the traditional elevator pitch, used to pitch ideas, whether to business investors or a community like Goodwill to find climate change solutions  Scalable Startup – These are companies that start with a unique idea; think Silicon Valley.  Internal Ventures – internal ventures, those situations in which a company sets up a separate entity within itself—an entirely separate division or group—for the purpose of entering different markets or developing radically different products...  Competitive Advantage – The entrepreneurial commitment, innovative behavior, and advanced technological products of the small company were combined with the capital availability, marketing strength, and distribution channels of the large, it stands to reason that the synthesis might well create significant competitive advantage. 49 CU IDOL SELF LEARNING MATERIAL (SLM)

 Incentives- An incentive is something that motivates or drives one to do something or behave in a certain way. There are two types of incentives that affect human decision making. These are: intrinsic and extrinsic incentives... 2.7 LEARNING ACTIVITY 1. Define New Venture ___________________________________________________________________________ ___________________________________________________________________________ 2. State the Characteristics of New Ventures ___________________________________________________________________________ ___________________________________________________________________________ 2.8 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Define Creativity 2. Explain Virtual Elevator Pitch 3. Describe briefly about incentive. 4. What do you understand by Internal Ventures? 5. What is a competitive advantage? Long Questions 1. What are the opportunities and challenges of new ventures? 2. Describe the stages in new venture. 3. What are the components of new ventures 4. Describe about the history of Flipkart. 5. Suggest two case studies based on start-up. B. Multiple Choice Questions 1. Having more than 50% ownership position that provides the entrepreneur with managerial control is called ___________ a. Joint venture 50 CU IDOL SELF LEARNING MATERIAL (SLM)