Archive | Enterpreneurship and Management of Small and Medium Enterprises

What are problems of SMES in India. Ans:   Problems of Small and Medium Enterprises (SMEs) (1)       Problem of Finance             Scarcity of finance and credit is the main obstacle in the development of small scale units. The artisans and craftsmen have little capital. They take credit from money lenders who charge a very high [...]

Write short notes on: (a)     EXIM Bank (b)     RRBS (c)     NIDC (d)     KVIC (e)     Commercial Banks   Ans:   (a)    EXIM Bank The Export-Import Bank of India (EXIM Bank) was established in 1982 by an Act of Parliament. Functions of EX1M Bank (a)     To advance financial assistance to exporters and [...]

A note on Institutional Finance to Entrepreneur. Ans:   1.      Industrial Development Bank of India: The IDBI was established on July 1, 1964 by the Government of India under an Act of Parliament as the principal financial institution in the country. Main Functions of IDBI (a)     The IDB1 provides assistance to the small scale [...]

What are factors determining working capital requirements in business? Ans:   The factors determining working capital needs of a business firm are as follows: 1.      Size of the firm: A large firm needs more working capital than a small firm. In order to sustain the high volume of production and sales, a large firm has [...]

Explain Types of working capital. Ans:   Working capital is broadly classified into two-permanent working capital nd variable working capital. 1.      Permanent Working Capital There is always a minimum amount of working capital which is continuously required by the enterprise to carry out its normal business operations. This is usually called as permanent or fixed [...]

What are factors determining fixed capital requirements in business? Ans:   The factors determining or influencing fixed capital requirements are as follows 1.      Nature of business: The requirement of fixed capital to be invested differs from industry to industry. The manufacturing enterprises require larger proportion of fixed capital in the form of land, building, plant, [...]

What are steps in setting up a small unit in India? Ans:   The potential entrepreneur would become an entrepreneur only when he owns an enterprise. The business enterprise to be set up can be a manufacturing venture, a trading firm or a service establishment. The manufacturing venture includes the steps required for setting up a [...]

What is Role & Importance of Small & Medium Enterprises (SMES) in India? Ans:   The role and importance of SMEs is as follows 1.      Employment Small and medium enterprises (SMEs) use labour intensive techniques and thereby provide employment on a large scale. For every ` 1 lakh of fixed investment small scale sector provides [...]

What are principles & Methods of training to be followed in Entrepreneurial training? Ans:   Principles of Training The following are the main principles of training :- 1.      Principle of need – Training should be given in a proper atmosphere and that too systematically by qualified and trained instructor keeping in mind the need of [...]

What are Essential conditions for successful Innovation? Ans:   Peter Drucker has described three essential conditions of innovation, for being successful. They are as follows: (1)     Innovation is Work: Innovation requires knowledge. It often requires great exceptional ability and talent. Innovations rarely work in more than one area. For example. Edison worked only in the electrical [...]