Unit 4

Small Business

Q1) What is small business? What is the process of establishing a small business?                                                                                                                                                          5

A1) Small businesses surround us. They are in every corner of every other street. What someone buys comes from small businesses every second. In India, where unemployment is a serious problem, SMEs have gained a special position in the industrial structure due to their ability to leverage the workforce to create jobs. Learn about the meaning, nature and type of SMEs.

Small businesses are services or retailers such as grocery stores, medical stores, merchants, bakeries, and small manufacturing departments. SMEs are independently owned organizations that require less capital and labor and require little or no machinery. These businesses are ideally suitable for doing small businesses to serve the community and benefit the owners of the company.

The Government of India defines SMEs based on their ability to invest in plants and machinery. According to the definition provided by the government business website business.gov.in, a small business is a financial commitment to infrastructure such as buildings and equipment, whether as an owner or on a rental basis. It's an established business. The purchase criteria do not exceed Rs. 1 roll.

Process of establishing Small Business

A good SME always starts as an idea, but you need to put that idea into action. It's a place where many individuals can start to feel overwhelmed. It's understandable that the flood of things you need to start a business freezes, but it's easier than you think to actually get started.

As with any big goal, starting by breaking it down into smaller tasks will give you enough work to do what you need to do to get started. Here are 6 ways to break down the process and make it easier for you to start your own small business.

1. Create a one-page business plan.

The key to a successful SME, especially in the start-up phase, is to keep things simple and keep costs low. Cost means not only financial cost but also time.

Many small business owners fall into the trap of trying to create the world's largest and most robust business plan. You'll only need it if you're looking for investment or funding, and even if you're looking for one of them in the future, I'm always before small business owners invest a lot It's a good idea to start by testing their ideas first, for time and money.

So, to get started, create your own simple one-page business plan that outlines the small business you're about to start.

1. Define your vision. What is the end result of your business?
2. Define your mission. Unlike the vision, your mission needs to explain why your company exists.
3. Define the purpose. What are you going to do that will lead to the achievement of your mission and your vision-what are your goals?
4. I will give you an overview of the basic strategy. How do you achieve the purpose of the bullet points?
5. Write a simple action plan. Bullet the smaller task-oriented actions needed to achieve the stated objectives.

That’s it. It can be longer than a page, but it's definitely organized and shorter than a complete business plan that can take weeks to create. If you need more information about a one-page business plan, or want to write a full-fledged financial-centric business plan, check out Small, a book I co-authored with my brother that has a solid explanation for both.

b.    Decide a budget

It's highly recommended to keep costs as low as possible, but you still need to determine your budget and the amount you can spend to get started. If you're running on your own, think realistically about your numbers and budget expectations. Adding an additional 20% for accidental ones turned out to be a realistic excess to help plan the burn rate.

Burn rate is the amount of cash you spend each month. Determining how long you can stay in business before you need to make a profit is an important number for you.

For the first 30-90 days, you need to start your business with profitability in mind. That is possible. But make sure you have a budget so that you can survive if things get slimmer than you expected.

c.     Determine the legal entity.

It costs money to submit documents to start a business. In many cases, depending on your state, it can be a lot of money. You need to consider things like city or municipal licenses, state corporation establishment or business entity fees. Before you start your business, do a thorough search in advance to find out the application fees for your city, county or state.

In many cases, it is wise to start as a sole proprietor in the first "test" phase of a small business. This means less paperwork and less upfront costs. It can save you some big time cash while you determine the viability of your business. Be aware that acting as a sole proprietor may expose you to personal risks. Therefore, you should weigh the benefits and risks before consulting with a local lawyer or tax expert to determine whether short-term or long-term is wise. -Period goal.

Once you have proved that you have a viable and sustainable model in the first 3-6 months of your business, you can apply to the business entity at any time.

d.    Take care of the money.

When deciding on any entity, keep your funds separate from your personal account. This is a big mistake and can be very confusing in tax time and finances. Setting up a free checking account at your local credit union or bank is really easy. All you need is filing documents, sole proprietorship license information, and an initial deposit to set up from most financial institutions.

Instead of paying for your account or getting a credit line, get a storage place where you can keep your money separate from your personal account. This should not take you more than an hour at the financial institution of your choice.

e.     Get your website.

Whether your business is in-store or online, you need a website. That is, you need to protect the URL. At popular domain sites such as HostGator and GoDaddy, you can search for the domain address of the website of your choice and buy it for just $ 9.99.

If you're starting an online business, you can either connect your domain to a storefront such as an online shopping cart or Shopify for a low monthly fee, or build your own basic website on top of the URL. Cheap drag and drop site builders such as Weebly. Both are less than $ 100 per month.

f.       Test the sale.

Now that you have a good foundation, you can start testing some sales. Try to spread the word in a cheap and creative way.

If you have a service-based business, immediately join your local chamber of commerce or small business branch and ask for resources available to talk, present, and share information about your business. Please give me. If you have a product-based business, test the viability of your product at a local swap meeting, farmer's market, or other community event to see what the public really thinks (and buys) from you. Whether or not) is tested.

Use simple Facebook ads with a budget to increase traffic to your website, or set up a simple Google AdWords account with a budget to test whether traffic reaches your site.

You can follow these 6 steps yourself for a lot of money. This is a great way to test the feasibility of a small business before putting all your time and money into an unproven idea.

Q2) What is a small business? Explain its nature.     5

A2) Small businesses surround us. They are in every corner of every other street. What someone buys comes from small businesses every second. In India, where unemployment is a serious problem, SMEs have gained a special position in the industrial structure due to their ability to leverage the workforce to create jobs. Learn about the meaning, nature and type of SMEs.

Small businesses are services or retailers such as grocery stores, medical stores, merchants, bakeries, and small manufacturing departments. SMEs are independently owned organizations that require less capital and labor and require little or no machinery. These businesses are ideally suitable for doing small businesses to serve the community and benefit the owners of the company.

The Government of India defines SMEs based on their ability to invest in plants and machinery. According to the definition provided by the government business website business.gov.in, a small business is a financial commitment to infrastructure such as buildings and equipment, whether as an owner or on a rental basis. It's an established business. The purchase criteria do not exceed Rs. 1 roll.

The nature of SMEs can be categorized as follows.

1. Shoelace budget

Sole proprietors or a small number of people run small businesses. These businesses often run on a "small budget". In short, small businesses work on a very tight budget.

2. Labour intensive

SMEs are primarily labour intensive. Various types of SMEs rely heavily on labor for their functions. The main nature of SMEs is that they involve more physical work than intellectual work. Employees manage their work manually because there are no machines.

3. Community base

SMEs start with the goal of meeting the needs and demands of the community and community. These businesses are community-based because they cover several areas of demographic concentration.

4. Unique technology

SMEs are community-focused and labour-oriented, so they often thrive in native operating practices. In India, there are many rural businesses that are still using outdated technology. This may give the product its own uniqueness, but it hinders the development of the business.

"Small and medium-sized enterprises, not large enterprises, are driving India's economic recovery. India's MSME (Small and Medium-sized Enterprises) sector has 48 million enterprises, accounting for 37.5% of total domestic production, 111.4 million. It provides employment for people and accounts for more than 40% of India's exports. "

Q3) State the objectives of a small business.     8

A3) Your commercial enterprise desires are the effects you need to obtain as you run and develop your commercial enterprise. As an entrepreneur, you're inquisitive about each component of your commercial enterprise and also you want to maintain clean desires in thoughts on your corporation so as with a view to get going. Having a complete listing of commercial enterprise desires creates the tips that underlie your commercial enterprise planning.

1. Earn and hold profitability

Maintaining profitability approach ensuring that your sales exceeds the value of your commercial enterprise. Focus on dealing with each manufacturing and operational prices even as keeping the fee of go back on the goods sold.

2. Human and aid productiveness

Employee training, gadget maintenance, and new gadget purchases all have an effect on a corporation's productiveness. Your intention is to offer all of the sources your personnel want to live as efficient as possible.

3. Excellent customer support

Good customer support allows maintain customers and generate habitual sales. Keeping clients glad must be the principle motive of the enterprise.

4. Employee appeal and retention

Employee turnover prices you with misplaced productiveness and prices related to hiring, inclusive of hiring advertisements and paying hiring managers. Maintaining a efficient and advantageous paintings surroundings will enhance retention.

5. Mission-led center values

Your corporation's task assertion is an outline of your corporation's center values. This is a precis of the corporation's ideals approximately consumer interaction, network responsibility, and worker satisfaction. The center values ​​of a corporation are the desires had to create a advantageous company culture.

6. Sustainable growth

Growth is deliberate primarily based totally on ancient records and destiny projections. Growth calls for cautious use of company sources inclusive of finance and personnel.

7. Maintaining wholesome coins waft

Even organizations with top coins waft want investment contacts in case they want capital to develop their enterprise. Maintaining your commercial enterprise's cap potential to elevate price range approach being capable of meet short-time period wishes inclusive of salaries and debts payable in training for long-time period projects.

8. Dealing with alternate

Change control is the method of making a method that successfully addresses growing markets as your enterprise grows. The motive of alternate control is to create a dynamic enterprise that is ready to fulfil the demanding situations of the industry.

9. Reach the proper clients

Marketing is greater than simply developing advertisements and being attentive to clients approximately product changes. You can recognize patron shopping for habits, expect product distribution wishes, and broaden commercial enterprise partnerships to assist businesses growth marketplace share.

10. Stay beforehand of the competition

A complete evaluation of aggressive hobby must be an ongoing commercial enterprise intention of the enterprise. Understanding wherein your merchandise is ranked withinside the marketplace allows you to higher decide the way to enhance your function amongst purchasers and growth your backside line.

Q4) Discuss the importance of small business.     3

A4) Large companies may seem to form the basis of our country's economy, but that is not entirely true. In reality, small businesses are just as important, but nothing more. Can't you agree? Here are four reasons why SMEs are the foundation of the local economy.

1. Local job

Large companies offer some local jobs, but in reality small businesses in the area offer most local jobs. Every Wal-Mart has hundreds of small shops that employ local residents.

b.    Alternatives and competition

Another reason small business owners are so important to the economy is that small businesses offer large businesses both alternatives and competition. For example, a roadside kiosk, your property, or a local farmer selling at a farmer's market can set a lower price than a grocery store because you don't have to pay for shipping. It also provides local residents with a variety of supplier options so that money can be sent directly to the local economy.

c.     Failure

Why is failure important to the economy? Simply put, a failed business owner means learning the lessons he missed first. It helps build a stronger regional economy and promotes stronger growth. It may sound strange, but failure ultimately builds a stronger local business network and more successful small business owners.

d.    Diversification – Different goals and methods

SMEs differ from large companies in a significant number of ways. They have different budgets, different operational methods and focus on different aspects of the industry. They can drill down into specific niches and products to thrive. They can also focus on a more specific and smaller audience and still succeed. SMEs are more free to innovate than large companies.

This diversification brings better economic stability. The more diversified the economy, the more it can withstand fluctuations and changes.

Q5) Throw some light on the role of financial institutions on small business. 8

A5) Some of the financial institutions supporting small scale industries in India are:

1. Indian Industrial Finance Corporation (IFCI):

IFCI was established in July 1948 as a legal entity. From July 1, 1993, it was converted into a company.

Objectives:

The purpose of IFCI is to make medium- to long-term credit easier for India's industrial concerns, especially in situations where regular bank accommodation is inadequate or it is not possible to rely on capital issuance methods. To make it available. " The company provides financial support for the establishment of new ventures and the modernization and expansion of existing businesses. IFCI prioritizes industrial diversification, development of underdeveloped regions, and industrial growth in the co-operative sector.

Special attention is paid to the following types of projects:

(I) Projects in the rear area,

(II) Projects promoted by new entrepreneurs and technocrats.

(III) Projects based on unique technologies,

(IV) Projects with potential import / export substitution,

(V) Projects that are likely to meet growing demand for essentials,

(VI) A project to provide machinery, fertilizers, pesticides and other agricultural inputs.

Form of support:

IFCI provides financial assistance in the form of loans, guarantees, underwriting, direct subscriptions to stocks and corporate bonds. We also provide equipment leasing, buyer and supplier credit, financing for leasing and employment purchasing companies, and merchant banking services.

Criteria for support:

In providing assistance, IFCI considers elements of (i) industry importance, (ii) project feasibility, (iii) product supply and demand, (iv) raw material availability and technical knowledge. Take into account. How, (v) project costs, (vi) resources of concern, (vii) management capabilities and experience, and (viii) security provided.

Progress and reviews:

Financial support provided to small units and new entrepreneurs is showing a remarkable increase. IFCI typically covers up to half of the total cost of installing / modernizing / expanding an industrial unit.

Despite its impressive performance, IFCI has been criticized for the following reasons:

(I) IFCI has supported large and established concerns about the disadvantages of small units and new entrepreneurs.

(II) There is a long delay in paying sanctions and aid.

(III) IFCI was unable to effectively manage default borrowers.

2. Indian Industrial Credit Investment Corporation (ICICI Bank):

ICICI was established on January 5, 1955 as a public limited company.

Objectives:

Objectives – (i) Support the promotion, expansion and modernization of private sector industrial enterprises. (Ii) Encourage and promote the participation of Indian and foreign private capital in such companies. (Iii) Encourage and promote private property and investment market expansion of industrial investment.

Form of support:

ICICI provides assistance in the form of loans, guarantees, direct subscriptions to stocks and bonds, sponsoring and underwriting of issues, funding available for reinvestment, and securing and providing technical and management advice. We also offer equipment leasing, supplier credit, merchant banking and venture capital services.

Qualifications for support:

ICICI supports private and joint sector companies. You can also support co-operatives. We are allowed to provide foreign currency loans to proprietary and partnership companies. Usually, support beyond Rs. 50,000 rupees will be provided. A loan is provided to purchase capital assets. ICICI helps promote new businesses and expand and modernize existing concerns.

Criteria for support:

In providing assistance, ICICI considers the basic health of the project, management capabilities and experience, funding sources and promoter contributions, nature of security, reasonable cost estimates, borrower repayment capacity, etc.

Progress and reviews:

Over the years, ICICI has emerged as a leading supplier of foreign currency loans and as a pioneer in the underwriting sector. But it is not an important source of funding for small industries. It is now a commercial bank rather than a development financial institution.

3. Indian Industrial Development Bank (IDBI):

IDBI was established on July 1, 1964 as the pinnacle of industrial finance.

Purpose:

The purpose of IDBI is to: (I) Coordinate, regulate and supervise the activities of all financial institutions that provide term finance to the industry. (Ii) Expand the usefulness of these institutions by supplementing the resources of these institutions and expanding the scope of support. (Iii) Provide direct funding to industry to bridge the gap between the supply and demand of long-term and medium-term funding for industrial concerns in both the public and private sectors. (Iv) Find and fill gaps in the country's industrial structure. (V) Adopt and implement a priority system to diversify and speed up the growth process of the industry.

The World Bank has been considered as the development agency that is ultimately involved in all questions and issues related to domestic industrial finance.

IDBI indirectly assists small units through refinancing and invoice re-discount schemes. It is not possible for IDBI to reach many small industrial units scattered throughout the country directly. As a result, IDBI offers refinancing of loans loaned to small units by banks and state-owned financial companies.

Refinancing support:

IDBI replenishes loans provided to the small sector by commercial banks, co-operative banks, regional banks, SFCs, SIDCs and SIICs. IDBT has imposed a sale on the interest rates charged by the primary lender so that the profits are ultimately returned to the borrowing unit.

4. Small Industrial Development Fund (SIDF):

In May 1986, IDBI created this fund. The aim was to strengthen the flow of assistance to the small sector and provide a focus for adjusting the availability of financial and non-financial assistance from various organizations at the top level. The fund was used to provide refinancing, seed capital assistance, direct assistance to NSIC, invoice re-discounts, and support for promotional and extended services. The fund has been transferred to SIDBI.

National Equity Fund:

The scheme, launched in August 1987, provides fair support for small and small units.

The eligibility conditions under the scheme are:

(I) The project must be new and for the manufacture, preservation, or processing of goods or existing units that have become ill.

(Ii) The project must be located in a village or town with a population of 5 rac (15 rac for sick units) or less.

(Iii) The cost of capital of the project must not exceed rupees. 50,000 rupees.

(Iv) The unit must be SSI registered with the Bureau of Industry.

Assistance is provided in the form of a loan to close the fairness gap, after considering the promoter's contribution, which must be at least 10% of the total cost.

This scheme is currently managed by SIDBI.

Bill re-discount scheme:

Under this system, indigenous machinery suppliers can discount invoices and promissory notes with banks and other financial institutions. These have access to re-discount facilities from IDBI. This facility can be used to purchase machines for modernization, expansion and diversification. A 15% prepayment or down payment is typically required for commercial vehicles and textile machinery.

Credit guarantee system:

IDBI guarantees loans to small units to banks and other financial institutions. The warranty extends to 75% of the default amount or the guaranteed amount, whichever is lower.

IDBI is also supporting NSIC with the supply of machinery on an employment purchase basis.

Export finance:

IDBI operates three schemes to promote exports from the small sector.

(A) Refinancing of medium-term export credit granted by an approved bank

(B) Direct credit to exporters

(C) Credits of overseas buyers.

Indian Small Business Development Bank (SIDBI):

With the growing need for financial assistance to small industries, a specialized financial institution dedicated to the small sector was needed. Therefore, SIDBI was established as a subsidiary of IDBI. It started operation on April 2, 1990. SIDBI has taken over the Small Industrial Development Fund and National Equity Fund previously established at IDBI.

SIDBI has been assigned the role of a top financial institution to coordinate the activities of other institutions engaged in facilitating, financing, developing and supporting small units in the small sector.

The main features of SIDBI are:

(A) Refinancing of term loans granted by SFC, SIDC / Banks and other qualified financial institutions.

(B) Direct discounts and re-discounts on deferred credit for bills resulting from the sale of machinery / capital equipment by small manufacturers, and re-discounts for short-term trade bills resulting from the sale of small sector products.

(C) Support the development of marketing infrastructure and create new marketing channels for small unit products in domestic and overseas markets.

(D) Direct support for the development of industrial parks / regions with the necessary infrastructure equipment.

(E) Resource support for the supply and marketing of raw materials for products and employment purchase and leasing activities to National Small Industries Corporation and State Small Industries Development Corporation.

(F) Extension of technical and related support services.

(G) Provide equity-type support to special target groups such as new promoters, women and former military personnel under the National Equity Fund, Mahira Udium Nidi, a self-employed scheme for former military personnel.

(H) Provide resource support to promote factoring companies to mitigate the difficulties faced by small units due to payment delays.

(I) Direct support to expand the supply base of small auxiliary units and encourage existing units to gradually improve / modernize the technology to improve product quality and competitiveness.

(J) Promote employment-oriented industries in sub-urban areas to check for unhealthy migration to urban areas.

SIDBI has done a commendable job to support the small sector. Special schemes for acquiring computers and accessories were introduced in 1991-1992 to improve the productivity and operational efficiency of small units. SIDBI introduced two new schemes between 1992 and 1993. A capital financing scheme to provide direct financing to existing well-operated small units incorporating step-by-step / modernization and refinancing technology for resettlement of NTC voluntarily retired workers. ..

Another new scheme launched was a venture capital fund dedicated to small units with an initial corpus of Rs. 10 rolls. It has registered as an institutional member of the OTC Exchange (OTCEI) in India. SIDBI also provides financial support to the National Small Industries Corporation to provide leasing, employment purchase, and marketing support to the small sector industrial sector.

The support that SIDBI provides to the small sector continues to grow.

5. National Small Industries Corporation:

NSIC will fund small units by supplying machines on an employment purchase basis. The company takes full responsibility for the purchase, from searching for a competent supplier to delivering the machine. The minimum support provided is rupees. 25,000 people and entrepreneurs have to pay 30% full-fledged money. Special concessions are given to small units, rear area units, technocrats, SC / ST, disabled and former military personnel.

6. National Bank for Agriculture and Rural Development (NABARD):

NABARD provides refinancing industrial finance for craftsmen, villages, domestic industry, and other related activities. Provides state co-operative banks with accommodation to fund the top regional weaver society with marketing or working capital for fabric procurement. Refinancing facilities are also provided to finance the working capital requirements of the Kerala Wire Manufacturing Cooperative. NABARD provides refinancing to financial institutions under the Integrated Rural Development Program (IRDP). We also provide banks with refinancing for fixed-term loans for semi-agricultural activities such as farming, cocoon breeding and the purchase of appliances. NABARD also has a soft loan support fund scheme to provide margin to future entrepreneurs.

7. State Financial Corporation (SFC):

IFCI primarily caters to the needs of large and medium-sized businesses. The National Financial Companies Act of 1951 was passed to meet the needs of small industries. Under this law, financial companies were established in all state and federal territories.

Form of support:

SFC provides assistance in the following forms:

(A) Promotion of long-term and medium-term loans to small and medium-sized units organized as sole proprietorships, partnerships, businesses and co-operatives.

(B) Guarantee loans raised by small units in the capital markets.

(C) Post paid guarantee.

(D) Undertake the issuance of shares, corporate bonds and bonds of industrial concern.

(E) Joining corporate bonds of industrial concern.

(F) Operation of IDBI refinancing scheme.

(G) Payment of a loan on behalf of the state government.

Limitations of support:

The biggest aid is rupees. 30 racks for sole proprietorships and partnerships, 60 racks for businesses and co-operatives. Industrial business with more Rs commission reserves in addition to paid-in capital. 1 role is not eligible for support. Assistance is usually repaid within 10 years. Smaller units located in the rear area will be provided with support at concessional interest rates.

8. Industrial park:

The program to establish an industrial park was started in 1955 with the aim of encouraging and promoting small industries in India. The industrial park provides built-in factory sheds, power and water facilities, roads, go-downs, common facility services and workshops.

Other facilities include factory accommodation rent subsidies, rental purchase-based or full-sale hut allocations, water and power supply concession fees, and transportation subsidies. These facilities exclude general facilities available to small industries.

To be precise, an industrial park is a group of factories built on an economic scale in the right place with water, transportation, electricity, steam, banks, post offices, cafeterias, watches and wards, and first aid equipment. Special arrangements are provided for technical guidance and common service facilities.

9. Trade Development Bureau:

The Department of Trade Development (TDA) was established in 1970 as an autonomous non-profit organization to support export promotion. Since then, it has been a non-profit organization. It does not participate in direct commerce, but acts as a catalyst. The TDA follows the concept of selectivity and focuses on specific products, specific exporters, specific markets, and specific buyers.

TDA's support for the small sector comes in the form of technical guidance through product adaptation and product development, sample imports, trade fairs, buyer-seller meetings and more. In addition, TDA will conduct a manufacturer survey on the range of products in the selected market. The TDA also edits and publishes country-specific breaking news that conveys the information that exporters generally need.

10. State Trading Corporation of India:

State Trading Corporation (STC), a wholly government-owned organization, is India's leading international trading company. STC helps small industries organize into viable groups and develop a reliable supply base to increase exports.

In addition, STC helps you upgrade product quality, technical expertise, equipment supply, and machinery at low interest rates. STC has also introduced several innovations aimed at expanding exports for specific product groups through a consortium of small manufacturers and the promotion of common brand names.

Q6) To start a business we need infrastructure. What infrastructure do we need?                                                                                                                                                          8

A6) Cloud technology helps businesses set up their entire infrastructure online, but some companies prefer to set it up themselves. This is especially true for small businesses that don't need a lot of equipment and don't yet have the budget to choose a cloud service.

Today, you can't do business in the market before you meet at least some of the most basic IT needs. If you're trying to do it on-premises, you definitely need a robust enough IT infrastructure. The cost of setting up everything depends on your needs and the equipment you are trying to procure.

As mentioned earlier, SMEs usually don't need much, so costs don't have a significant impact on their budget. With this in mind, here are some ways to set up your IT infrastructure for your small business in 2020.

Things to consider

Before you start setting up your IT infrastructure, there are a few things to consider. First and foremost, you need to decide whether to set up the entire infrastructure on your company's premises. This will help you create a budget that meets all your needs. In addition, the potential for outsourcing needs to be strongly considered.

Many companies today combine on-premises hardware and cloud services to meet their software needs. Last but not least, consider on-premises space. Space is required to set up an IT infrastructure.

Modern hardware isn't as bulky as it was a few years ago, but it's important to have enough space to put everything in place accordingly. Yet another thing to consider is the space itself. You need to make sure that the proper conditions to support your hardware, such as proper electrical wiring, air conditioning, and ventilation, are met.

When creating an IT infrastructure, you need to aim for scalable, simple, and cost-effective features. That way, when your business begins to grow and develop, you don't have to replace everything. Instead, you can maximize efficiency by simply adding or removing components.

In addition, as soon as the IT infrastructure is set up, the burden of support can be transferred to professionals. By relying on an experienced technical support service provider, you can avoid inefficient support workflows, exorbitant cloud resource consumption, and hiring additional professionals to maintain your IT infrastructure.

Hardware

Hardware is the foundation of your IT infrastructure. To get the right hardware, you need to create a shopping list of all the components you need. However, this includes not only servers and server equipment, but also computers and peripherals used by employees.

After all, everything is connected to the IT infrastructure through the corporate network. In addition, if you use virtualization to save space (using virtual servers instead of physical servers), make sure that the server that hosts everything has enough computing power to handle the load. Need to do it. Therefore, here is a list of hardware requirements to consider:

Servers and Server Racks – The number of physical servers depends on whether you choose virtualization. Keep in mind that you may need a domain and domain controller, DNS server, email server, etc.

Backup Server or Failover Cluster – If one server goes down, you need a backup server to replace the server to reduce latency and downtime.

Physical storage and backup storage – This includes hard drives when cloud storage is not used. The number of hard drives required depends on the data you store, and storage grows over time. So, in the end, you'll need more drives.

User Computers and Peripherals – This is almost self-explanatory. For desktop computers, monitors and other employees.

Software

Software is required for hardware to operate IT infrastructure smoothly. Software is very easy to obtain today. In the cloud, you can always choose the Software as a Service (SaaS) model and use the software you need on any device.

That said, you don't have to manually install the software on each device, you need to have a copy of the software that is unique to each device. Just subscribe to what you need and get started. The following is a list of software that you may need.

Operating System – OS for servers and desktop computers.

Employee Needs – Software such as Microsoft Office that enables employees to engage in their day-to-day work.

Business Operations – CRM, project management, ERP, and various other applications required for business operations.

Network and security

As mentioned earlier, IT infrastructure is connected through the corporate network. However, the network consists of network enablement, internet access, security, and firewall features. The key here is not only access to the Internet, but also remote access to printers and other devices, and the ability to share files between computers.

The first thing in the list is to select the type of network you need. There are three types of networks: wired networks, wireless networks, and hybrids. Everything has its strengths and weaknesses, so choose the one that suits you best.

Wired networks, for example, are faster and more robust, but require a lot of cables to connect everything. Wireless networks, on the other hand, utilize Wi-Fi signals and do not require cables, but such connections are generally slow and susceptible to interference. Therefore, the best bet is to choose a hybrid that utilizes both wired and wireless connections. This is ideal for small business environments.

The next step is to protect everything. The first thing you want to do is set up a firewall. The common firewalls that come with the OS usually do not support this task. Therefore, we recommend that you choose a more sophisticated firewall appliance that protects your network from cyber attacks and data breaches. A good firewall can keep intruders away and protect sensitive corporate data.

In addition, you should consider adding a layer of protection by adding cyber security software such as antivirus and antimalware. Hackers these days are smart and capable, so it's okay to properly protect your company's network.

Creating and configuring your IT infrastructure isn't easy, but it's not too difficult. You should always judge your needs before proceeding. That way, you won't waste your resources. Moreover, it is safe to consult an expert, especially if you are setting up such an infrastructure for the first time.

Q7) Explain the latest government policy.      8

A7) August 25, 2021-The Government of India has launched the SAMRIDH scheme to enable start ups to provide the necessary funding and skill sets essential for future business growth.

May 25, 2021-Restrictions and blockade strategies imposed on the government to prevent the deadly second wave of corona virus have adversely affected some sectors such as hospitality, tourism and aviation. The Government of India is preparing incentives for these sectors to support the economic struggles they are experiencing. The Treasury is working on proposals to support the tourism industry, the aviation industry, the hospitality sector, and other seriously troubled small and medium-sized organizations. The Ministry of Finance has also given easing of cash management and removed restrictions imposed to encourage sectors to make capital investments to boost the economy.

Government Policy Establishment of India's Small Business Development Bank (SIDBI):

The small business sector finds it difficult to raise a loan. Therefore, government policy provides incentives for financial support for SMEs.

Therefore, 10% of the total credit provided by public sector banks should go to smaller business units.

However, there was no special support for the small sector. Because this provision is quite inadequate.

With the establishment of SIDBI, significant progress has been made in the area of ​​expanding special financial support to SMEs. It is the leading institution for the promotion, financing and development of small and medium-sized enterprises in India.

SIDBI was established to meet the long-standing demand of the small sector. SIDBI was founded in 1989 under the absolute ownership of the Indian Industrial Development Bank. It came into effect on April 2, 1990.

Government Policy Other Promotions:

Below are some of the key steps taken by the government to promote the development of India's SME sector?

(I) The Government has newly established the Ministry of Small Industry and Agriculture and Rural Industry to take care of the small business sector.

(II) Increasing amounts are allocated under a continuous five-year plan for the development of small sector business units.

(III) The Government will prioritize products manufactured by the Small Sector in its Government Purchasing Program. National Small Industries Corporation helps small businesses secure orders from government and defence agencies.

(IV) The government provides concessions to small industries (excise tax, sales tax, customs duty, income tax, etc.). So that they can compete with the big industry. Under the latest policy measures adopted by the government in 2000-01, the excise tax exemption limit for the small sector was raised from 50 rupees to 1 rupee to improve the competitiveness of the small sector. ..

(V) 800 items are reserved for exclusive production by the small sector.

(VI) The government has granted limited liability partnerships to allow SMEs to attract capital from friends and relatives who have only limited liability. In fact, otherwise, limited partnerships are not allowed in India.

(VII) The government has announced a new policy package for small industries. This package aims to provide the same concessions to the small sector with respect to raw materials, bank credit, electricity, and other infrastructure available in large and medium-sized industries.

(VIII) Rare imported raw materials are preferentially provided to small industries at reasonable prices.

(IX) The government has set up a common test facility centre for the benefit of clusters of small units in specific areas.

(X) The government prioritizes small units on land allocation and power connectivity issues (including power supply at concessional rates).

(XI) The government has established an industrial park to provide industrial huts to small units in instalments. Currently, there are 550 industrial parks nationwide.

(XII) The Government is providing technical assistance to modernize the production of small units through the Technology Development Cell of the Small Industrial Development Organization (SIDO).

(XIII) The government stipulates the establishment of an export development center in SIDO to promote the export of small sector products.

(XIV) National Small Industries Corporation (NSIC) supplies machines on a rental purchase basis. We arrange rare raw materials and provide marketing facilities for small units.

(XV) Many Indian Commissions, including the Central Silk Commission and the Coir Commission, have been established to provide technical, financial and marketing assistance to the cottage and village industry.

The government is taking more steps to improve much of the small sector. The government's approach and policy has been to promote and encourage this sector since the country's independence.

However, the measures taken by the government regarding small sector development remain inadequate for the following reasons:

(I) Large and multinational companies invade items reserved for the small sector.

(II) Often, smaller units sell their output to larger units that do not pay in time.

(III) Arrangements for training small sector entrepreneurs are inadequate.

(IV) The technology used in the majority of small units is still very old and outdated.

(V) Small entrepreneurs find it difficult to sell their products at profitable prices.

Q8) What are the main features of SIDBI?     5

A8) The main features of SIDBI are:

(I) It provides financial assistance to small industries for:

1. With the purchase of the machine

2. Technology upgrade

We also supply machinery to small industries through an employment purchase system.

(II) Support working capital requirements for small industries.

(III) Provide assistance for the rehabilitation of potentially viable illness units in the small sector.

(IV) We provide the following financial services.

a. Discount on bills

b. Factoring service

c. Leasing service to small sector units.

(V) Providing venture capital to innovative small entrepreneurs.

(VI)  Support the development of marketing infrastructure for marketing small sector unit products.

(VII) Directly support the development of industrial parks and the promotion of small business units.

(VIII) Provide fair support to special target groups such as women and former military personnel.

(IX) In order to improve the operational efficiency of SMEs, we have formulated a special refinancing scheme for acquiring computers.

(X) Provide financial support to various institutions engaged in promoting small sector business units.

(XI) We have developed a microcredit scheme to provide lending support to self-help groups such as institutions and financial companies that focus on banking with poor mutual aid cooperatives.

(XII) We have established a Credit Guarantee Fund Trust (CGFT) for SMEs to guarantee loans of up to 10 rupees for SMEs without collateral or third-party guarantees.

Q9) State the legal requirement we need to start a business.   5

A9) Setting up a new business unit is a complex and risky task. Entrepreneurs must meet various legal procedures to establish a new unit. Therefore, entrepreneurs need to be aware of regulations that may affect the establishment of his new unit. Legal formations may be required at various stages of start up. These procedures differ in relation to the type of company employed by the entrepreneur, such as sole proprietorship, partnership company, or company. Legal requirements also vary with respect to the size of business units such as small, medium, or large enterprises. In addition, consumer goods companies and manufactured goods companies may attract different legal proceedings. To establish a new business unit, the following legal requirements are met:

(1) Incorporation and Registration: Various forms of business ownership have been found in the private sector, including sole proprietorships, partnerships, joint Hindu families and companies. Registration is not required for sole proprietors, partnerships and joint Hindu families. In the case of a company, incorporation and registration are essential.

Establishment of company

The company is established through legal proceedings and has a legal entity separate from the owner. The legal procedure for establishing a company is called the establishment of a corporation. For this purpose, the registration of the company must be done by the registrant of the company. Entrepreneurs are required to submit a registration application with the following documents:

(i) An application form that has been formally completed and signed by an authorized person.

(ii) Basic Articles of Incorporation: The basic articles of association are the charter of the company. This includes its purpose, name, address of the registration office, the capital the company is authorized to raise, the nature of the liability of the members, and the names, addresses and agreements of those who agree to establish the company.

(iii) Articles of Incorporation: Other important documents are the Articles of Incorporation, which include rules and regulations related to the internal control of the company. However, the limited liability company does not need to submit the articles of incorporation. If such a public company does not submit its Articles of Incorporation, it will be deemed to have adopted "Table A" of Schedule I of the Act.

(iv) Written consent of the Directors: Written consent of the Directors who have agreed to act in that position. Each director formally signs and promises in writing to acquire the required qualified shares.

(v) A copy of the contract with the managing director or individual to appoint as a full-time director or manager.

(vi) A statutory declaration indicating that all legal requirements of the law prior to its establishment have been complied with.

(vii) Intentions under the Industrial (Development and Regulation) Act of 1951. If the company's business is within the scope of this law.

(viii) Address of the company's registration office. However, the company can submit the registered address within 30 days of registration.

(ix) At the time of registration, the prescribed registration fee and submission fee for each document submitted for registration shall be paid to the Registrar's office. After receiving these documents, the registrar will scrutinize these documents and, if all the documents are confirmed, enter the company's name in the company's register and issue a certificate of establishment. Will do.

Capital subscription

The next step in company registration is to raise funds for the proposed company. The company acquires the required capital by selling the shares to the public. The following steps have been adopted for this purpose:

(i) "Permission for public issuance from the Securities and Exchange Commission of India.

(ii) Contracts with underwriters, brokers and stock issue managers.

(iii) Submit a copy of the prospectus to the Registrar.

(iv) Invite the general public to buy shares in the company by circulating the prospectus.

(v) Receive an application for shares through the banker of the company.

(vi) Formal resolution of the allocation if the subscribed capital is at least equal to the minimum subscription of 90% of the capital issuance.

(vii) If you do not receive the minimum subscription, you will be required to refund the full amount of your application at the end of 120 days from the prospectus circulation.

(viii) Issuance of quotas and share certificates.

(ix) For companies that have equity capital but have not issued a "prospectus", submit a "statement in lieu of the prospectus" to the Registrar at least three days before the first allotment resolution.

Start of business

A public company cannot start a business immediately after its establishment without obtaining a business start certificate from the Registrar. The following documents must be submitted for this purpose:

(i) Shares paid in cash are allocated within the minimum subscription range.

(ii) All Directors paid in cash the application and provisions for the shares he acquired.

(iii) If you fail to apply for or obtain a permit for shares or bonds traded on an approved stock exchange, no money may be refunded to the applicant.

(iv) A statutory declaration was submitted to the Registrar that formally verified that the above conditions were complied with in a prohibited form by one of the directors or secretaries.

The Registrar will scrutinize these documents and, if ho is satisfied, will issue a "Certificate of Commerce". This certificate is definitive proof that the company can start a business and use its borrowing rights.

(2) Small unit registration certificate: Small unit entrepreneurs must request registration of the selected project unit with the Industrial Bureau. This will give entrepreneurs and their troop’s access to government support. Units are usually provisionally registered first and later given permanent registration.

(3) Registration under the Factory Act: Entrepreneurs must register their business under the Factory Act of 1948 before starting the manufacturing sector. The Factory Act includes provisions on factory authorization and registration, working hours, health, safety and welfare measures, employment of women and young people, annual leave, dangerous operations and more. This law sets the minimum age for anyone who can enter the factory. The law provides for cleanliness, ventilation, overcrowding, riching, explosive gases, dust, fume, mechanical fencing and more.

(4) Import license: If you need imported raw materials for a new business, you need to obtain an import license from the import / export manager.

(5) Ministry of Finance Permit: Entrepreneurs must obtain a Treasury permit to agree on cooperation with a foreign country.

(6) No Objection Certificate (NOC): The unit must obtain all required permits. For example, get a NOC from the Pollution Control Committee as needed.

(7) Industry (Development and Regulation) Act of 1951: The licensing policy of industry is determined under this law. The law states that the central government can specify requirements that must be complied with by small industry businesses that are considered small or sub-industry. This allows the central government to provide support measures, tax exemptions, or other favourable treatment under this Act to enable any small or ancillary industrial enterprise to maintain its viability and strength. You can do this to see if you need it.

(8) Foreign Exchange Regulation Law: All foreign cooperation requires government approval and is subject to regulation based on the Foreign Exchange Regulation Law. All investments by foreign companies in India are permitted only with the approval of the Reserve Bank of India. The Reserve Bank of India's approval is based on the approval of the investment proposal by the government.

(9) Trademark Registration: According to the Trademarks Mark Act of 1958 (India), the mark may contain "devices, brands, headings, label tickets, name signatures, words, letters, numbers, or any combination thereof included". The purpose of trademark registration is to use a trademark "deceptively similar" as it may confuse users as consumers may distinguish the manufacturer / service provider's products from other products. Do not allow it. Once a trademark is registered pursuant to the provisions of the Trademark Law of 1958 and the Trademark Law of 1999, no one else can use a similar trademark in its packaging. Trademarks are registered indefinitely and are useful for sales promotion.

(10) Registration by the sales tax authorities: Entrepreneurs are required to register their business with the sales tax department of the state government and obtain a certificate for this purpose. In addition to the above legal procedures, entrepreneurs need to take some other procedures, depending on the nature of the products produced by the new business unit. For example, he must register his unit under service tax laws, food and drug control laws, and so on.

Q10) What are the points to be kept in mind for an entrepreneur?   5

A10) Here are five key stages of your experience as an entrepreneur:

1). Find the right business idea:

Identifying and assessing the right opportunities is the first step in getting started as an entrepreneur. You can't start a business without business ideas. Nor can you be called an entrepreneur without a business.

Choosing and launching an idea for a small business is absolutely no-no. You have to do market research to find out what people really need. You also need to look at your inner talents to determine if what you choose to launch is right for you. No matter how profitable a business opportunity is, if you don't have the ability to carry it out, it will fail. This potential event is an important reason why you need to make sure that your business is passionate about what you can do.

For example, most programmers are lazy in doing household chores and physical activity. Forcing these denominations to start a home cleaning and home remodelling company can be a complete disaster. Even with abundant clients waiting, in most cases not only is the failure rate high, but it also feels unfulfilled at all stages.

Another important thing to do when you come up with a business idea is to try to sell to an individual identified as a potential customer without getting a single product or service. If someone is willing to pay for something they can't see, this not only shows that they have an urgent need to be willing to share the money, but you can fly a business Indicates that you have an idea.

2). Creating a business plan:

The next step is to create the best business plan for you. Making a plan does not completely mean creating a complete business plan detailing some chapters and so on. As a start up, as a basic plan, you can write down some of your goals and make adjustments from them.

Usually, when you start a new business that no one has tried before, what you create as a business plan will probably go to the bathroom in a week or two. Because no matter how you expect the market to react, it probably never happens. At this point, simple tests, fixes, and retests not only help your business succeed, but also help you develop a business plan for growth.

If the purpose of planning is to look for a bank loan, or for any other financial purpose, it is very important to plan your business before embarking on it.

If you find it difficult to write a business plan, follow the sample business plan template or make a plan by consulting with expert services to create a business plan, emphasizing what you want to achieve and how to do it.

3). Seed funding:

This stage of your entrepreneurial process is very important. By the time you identify the problem you want to solve in the market and develop a business plan for it, you should have a complete understanding of the financial implications of your project.

At this point, your focus is on raising seed funding for your small business ideas. You can raise seed funding by getting investments from angel investors, grants, bank loans and more.

Getting money for your business will be one of the hardest things you can do as an entrepreneur. People and institutions are not ready to easily let go of their money. If you are referred by a similarly successful entrepreneur, you are more likely to get a loan or investment from someone. Other than that, and it's really hard to break.

The best way to raise working capital for a business idea is usually from family and friends. These individuals will already trust you and will invest or lend you money not because they believe in your ideas, but because they believe in you.

Some options you can consider for small business loans are microfinance banks and professional money lenders. These institutions and individuals can offer credit lines with much more generous requirements, but they may have higher interest rates and shorter repayment periods than other large financial institutions.

4.  Acquire paid customers:

This is a real cracker. If you can't get a customer to pay for your business at the lowest possible cost, your business will die.

Business cannot float without customers. Various factors that need to be considered are both customer acquisition costs and customer retention costs.

Your goal is to get as many customers as possible at the lowest possible cost and do everything to keep them in the most efficient way possible.

One way to do this is to provide outstanding customer service that no one can believe. The company that does this well is the American e-commerce company Zappos. Their customer satisfaction is as follows: If you need an item from their website and they don't have it, they can recommend competing businesses that sell the same item.

Happy customer feedback builds trust in people who have never patronized your business. Our customer support team will surprise your customers every time and make sure they never stop making money for you.

5. Success or maybe failure:

After all, you may not be successful yet, or you may be incredibly successful. Everyone is striving for the latter, but the cause of the failure is not the fact that they didn't put everything in, they pursued a business without real customers, or your natural tendency didn't approve.

If a small business fails, you need to take a step back and revisit the event that caused the failure. Emphasize what went wrong and what went well. Identify what you can do better if given a second chance and never beat yourself about the closure.

The entrepreneurial process can lead to success or failure. If the business model didn't work, it wouldn't really fail, but I've identified only one way it doesn't work.

The same is true for success. Emphasize your big wins, small wins, and losses as your business grows. Focus on how to satisfy more customers, how to completely wash away losses, and above all, don't hide the secret to success. Instruct others to increase your chances of success no matter what they are doing.

Q11) What is project control? What is the importance of control and monitoring?                                                                                                                                             3

A11) According to the PMBOK® Guide (the Project Management Body of Knowledge), project control is a “project management function that involves comparing actual performance with planned performance and taking appropriate corrective action (or directing others to take this action) that will yield the desired outcome in the project when significant differences exist.”

Essentially, project controls are a series of tools that help keep a project on schedule. Combined with people skills and project experience, they deliver information that enables accurate decision making. The project control process mainly focuses on:

• Measuring planned performance vs actual performance.
• Ongoing assessment of the project’s performance to identify any preventive or corrective actions needed.
• Keeping accurate, timely information based on the project’s output and associated documentation.
• Providing information that supports status updates, forecasting and measuring progress.
• Delivering forecasts that update current costs and project schedule.
• Monitoring the implementation of any approved changes or schedule amendments.

Importance of project monitoring and control

Monitoring and control keeps projects on track. The right controls can play a major part in completing projects on time. The data gathered also lets project managers make informed decisions. They can take advantage of opportunities, make changes and avoid crisis management issues. Put simply, monitoring and control ensures the seamless execution of tasks. This improves productivity and efficiency.

Q12) What is project monitoring?       3

A12) Project monitoring is the observation and supervision for those in the management team to detect and react appropriately to deviation and changes to a project plan. By monitoring the progress, the management teams are able to determine how far the project has proceeded and whether it has met the completion expectation or re-forecast the expectations originally set out in projects plan. One way to succeed in monitoring projects while maintain a positive progress of the project is the need to do a report detailing their observation. However, this report needs to be done in a frequency (continuously, regularly, logically, etc.) so that the management hierarchy can exercise their control without stepping on the responsibilities of other levels.1 Other than report, monitoring project can also be done through meetings with clients and parties involved in the project (contractor, supplier, etc.) at a regular basis to keep track of the progress.

Q13) Write the impact of project monitoring.     5

A13) Project monitoring and control is a crucial system that is used widely by organizations. Monitoring and controls of a project with the nine functions scope, cost, time, quality, risk, communications, procurements, human resources and integration allows the management team to note the progress of the project whether they are in the original objectives. An organization operating without a project monitoring and control system is considered a risk that will eventually lead to its failure.

In term of cost, if there are no proper monitoring and control, the company will be paying more for a resource compared to one that is carefully monitored and controlled because without control, the team might be paying more, when comparing prices from different contractors and make sure the prices are within project budget. Naturally without monitoring and control, time will be an aspect that cannot be avoided. Without monitoring and control, work may be repeated because of a fault or delay in the process, such as delayed in delivery by a contractor or a source that didn’t pass quality control. Therefore they will consume more time to accomplish.

Lack of Motivation.

Motivation is defined as a pull and push forces, which result in unpredicted behavior of human directed towards their goals.2In the aviation industry, motivation is used to ensure employees have the intensity and direction of which is geared towards flight safety.  Aviation is a huge industry that involves huge number of employees of different department that have work for a different goal to each other but it will ultimately involves the safety of its passengers and pilots. Employees such as pilot, flight crew, engineer and technicians would have done the similar tasks repetitively and could claim they have enough experience to complete their task without fail yet under different circumstances; human factor will still play a role in maintaining the quality of the performance of all employees.

The working environment plays a major role in effecting employee performance. 3In a working environment having a hot working environment will de-motivate employee’s performance. However, pilot faces a more serious environment factors as they need to take into account of flying in an aircraft loaded with technological environment. Be it the design of the equipment and flight control, displays/interface characteristics and task factors a pilot need to be very focus and well-motivated in order to maintain the quality of their performance in such a harsh environment.

The condition of an employee is a common problem that almost all organizations face. This factor involves mental condition of the employee, which negatively affects performance of the task, such as mental fatigue, pernicious attitude. This is perhaps the most important factor because personal issues cannot be governed by their employers. 

Impact of lack of Motivation.

Employees are an organization’s needs to function. An organization whose employees have not been motivated is vulnerable to both company and personal challenges because its employees are not pushing themselves further to maintain the stability which ultimately means they are underperforming. Therefore, lack of motivation equates to less work being accomplished. It does not however, mean there is no productivity coming from the employees; it can be said that they the productivity are transfer to aspects not related to their work. Simple things like internet surfing while at work and taking longer break time for lunch will cost the organization time and money.

Low employee motivation due to unpleasant working environment can also impact how existing and potential clients/partners view on working with such an organization.3When employees are lacking motivation due to unpleasant working environment for instance a salary cut or no incentives. The consequences of such action would normally cause what we know as going ‘on strike’. When that happen, the organization’s reputation to their clients/partners will plunge downward and the forces clients/partners to reconsider signing any contract with such an organization. This organization will suffer greatly in terms of the quality of work being produced and slowed production rate.

Project Monitoring and Control, and Motivation

On 3rd Oct 2006, European Aeronautic Defense and Space Company (EADS) announce the delay in the production of Airbus A380 Aircraft which will push back the delivery of this aircraft by 2 years. An estimated loss of €2.8 billion in pre-tax earnings between 2006 and 2010 has been revealed. In June 2006, Airbus acknowledges that they had underestimated the amount of work to be done to finish up the installation of the electrical harnesses into the forward and rear sections of the fuselage. The reason of this long delay was contributed by the complexity of the aircraft’s electrical wiring system. The root cause was the fact that a new 3D digital mock-up, which facilitates the design of the electrical harnesses installation was implemented late as well as the people working on the aircraft was still in their learning curve, the problem arises when the internal wiring of the aircraft in the fuselage section which has been changed and reconfigure several times during its production. The thousands of cables embedded inside the fuselage were wrongly configured and delivered. This case can been describe by 2 project failure factors:

Project Monitoring and Control:

The management team was at fault for this reason. During the installation process, there was no frequent inspection on the wiring configuration and only after installing thousands of wire then they realize the problem they’ll be facing. If the management team had set up an inspection team to do a more frequent inspection on the installation the problem could have resolved earlier and minimizing losses. If monitoring and control has been properly managed, the risk of such an incident would have been minimized.

Motivation:

Human factor is ultimately related to motivation and one of the main problems with the wiring problem rise from those who are installing them in the aircraft be it the technician and engineer. In another report, it was explained by the chief executive Christian Streiff “Beyond the complexity of the cable installation, the root cause of the problem is the fact that the 3D digital mock-up, which facilitates the design of the electrical harnesses installation, was implemented late and that the people working on it were in their learning curve.” He stated clearly that the people working on it were in their learning curve. Knowing that they were in their learning curve, the people should be more aware that they are not experience in this new installation process and should be more aware that they need more supervision and review on this installation process. If worker are motivated enough, they would’ve seek the necessary assistance to advise them appropriately so that they will be able to continue without any problem.

Q14) Write the strategy for project monitoring and control.   8

A14) Project Monitoring and Control Strategy:

Earned Value Management System

An established project management principles and techniques such as Earn Value Analysis (EVA) can be used to monitor and control a project.5 Earned value analysis is a method that measure performance that uses “work in progress” to forecast what will happen to the project in the future. In short, it is an “early warning” program/project management and suitable for project monitoring and control.

Earned value analysis’s aim is to use cost to determine a project’s progress. Three quantities form the basis for the cost performance measurement using earned value management. They are Budgeted cost of work scheduled (BCWS) or Planned Value (PA), Budgeted Cost of Work Performed(BCWP) or Earned Value (EV) and Actual Cost of work Performed(ACWP) or Actual Cost(AC). From these three bases, managers can determine the project’s budget as well as make a determination of schedule and cost performance and provide an estimated cost of the project at its completion. By cross referencing each of this data to a work breakdown structure, a network diagram, it can indicate how the project should be carried out and thus giving a sense of control to project leader.

Cost performance index (CPI) and Schedule Performance Index (SPI) give an early warning to project leader using data from the 3 bases. Cost performance for instance is the ratio of cost of work performed (BCWP) to actual cost (ACWP). A CPI ration of 1.00 implies that the actual cost is within the estimated cost. Greater than 1.0 indicates work is accomplishes with less cost than what was expected. CPI below 1.0 indicates the project is currently over budget and require project leader to take control of the situation.

Motivation Strategy:

Motivation is a powerful tool that can help project members to perform better and produce higher quality of work, so project management team need to make a concerted effort at planning, establishing and maintaining a motivated team through recognition and rewards. There are 2 motivational theories which can be used to effective run a project team.

Maslow’s Hierarchy:

Motivational theories such as Maslow’s hierarchy, it explained that human beings are motive by unsatisfied needs, and that lower factors needs to be satisfied before higher needs can be satisfied.6 According to Maslow, these deficiencies needs are explained:

“Physiological Motivation: Provide ample breaks for lunch and recuperation and pay salaries that allow workers to buy life’s essentials.

Safety Needs: Provide a working environment which is safe, relative job security, and freedom from threats.

Social Needs: Generate a feeling of acceptance, belonging, and community by reinforcing team dynamics.

Esteem Motivators: Recognize achievements, assign important projects, and provide status to make employees feel valued and appreciated.

Self-Actualization: Offer challenging and meaningful work assignments which enable innovation, creativity, and progress according to long-term goals.”7

When this deficiency is satisfied, only then can a person act unselfishly and they will be able to act independently and take responsibility of their actions. With such a team member, any organization will be able to run a project with high confidence and expect a higher quality of work produced.

The Herzberg’s Motivation-Hygiene Theory:

Herzberg’s motivation-hygiene theory , also known as a Two factor theory, explain that the factors that lead to job dissatisfaction are completely separate from the factors that motivate employees and they are known as the hygiene factors and motivating factors.7 Herzberg finding explain that by adding hygiene factors, it may decrease job dissatisfaction but it will not motivate employees. Employees are motivated only when they feel a sense of job satisfaction is in place. We can assume that with motivation factors in present, satisfied employees can generally be more productive. The picture below states what motivation and hygiene factors are.

Both Maslow’s Hierarchy and Herzberg’s Motivation-Hygiene theory can be used in the same project team. Having the Maslow’s hierarchy theory, we are actually adding the 2 factors which are mention in Herzberg’s Motivation-Hygiene Theory. In short, by combining the two theories, we increase the chances of having a motivated project team. By using this system, we can avoid having a demotivated team that can increase the chance of project failure due to human factor such as the one described in the case study above, costing both time and money to an organization. Through such a system, future organization can source a team of motivated members capable of increasing the quality of work done, at the same time allowing organization to have an increased profit gain with less time wastage which cost more to operate. When problem do rise, these team will be able to discuss and solve problem more quickly and effectively.

Q15) What documents we require for establishing a company?  5

A15) The company is established through legal proceedings and has a legal entity separate from the owner. The legal procedure for establishing a company is called the establishment of a corporation. For this purpose, the registration of the company must be done by the registrant of the company. Entrepreneurs are required to submit a registration application with the following documents:

(i) An application form that has been formally completed and signed by an authorized person.

(ii) Basic Articles of Incorporation: The basic articles of association are the charter of the company. This includes its purpose, name, address of the registration office, the capital the company is authorized to raise, the nature of the liability of the members, and the names, addresses and agreements of those who agree to establish the company.

(iii) Articles of Incorporation: Other important documents are the Articles of Incorporation, which include rules and regulations related to the internal control of the company. However, the limited liability company does not need to submit the articles of incorporation. If such a public company does not submit its Articles of Incorporation, it will be deemed to have adopted "Table A" of Schedule I of the Act.

(iv) Written consent of the Directors: Written consent of the Directors who have agreed to act in that position. Each director formally signs and promises in writing to acquire the required qualified shares.

(v) A copy of the contract with the managing director or individual to appoint as a full-time director or manager.

(vi) A statutory declaration indicating that all legal requirements of the law prior to its establishment have been complied with.

(vii) Intentions under the Industrial (Development and Regulation) Act of 1951. If the company's business is within the scope of this law.

(viii) Address of the company's registration office. However, the company can submit the registered address within 30 days of registration.

(ix) At the time of registration, the prescribed registration fee and submission fee for each document submitted for registration shall be paid to the Registrar's office. After receiving these documents, the registrar will scrutinize these documents and, if all the documents are confirmed, enter the company's name in the company's register and issue a certificate of establishment.

Q16) What is IFCI? Write its functions.      5

A16) The Indian Industrial Finance Corporation (IFCI) was actually the first financial institution established by the government after independence. The main purpose of establishing IFCI was to provide long-term funding to the country's manufacturing and industrial sectors. Learn more about IFCI.

Founded in 1948, the Indian Industrial Finance Corporation was converted to a public company on July 1, 1993 and is now known as the Indian Industrial Finance Corporation. The main purpose of establishing this development bank was to support the industrial sector. To meet their medium- to long-term financial needs.

IDBI, Scheduled Banks, Insurance Sector and Cooperative Banks are some of IFCI's key stakeholders. IFCI's authorized capital is 250 chlores, which the central government can increase as needed.

Function of IFCI

First, IFCI's main function is to provide medium- to long-term lending and prepayment for industrial and manufacturing concerns. Before granting a loan, look at several factors. They study the importance of industry in our national economy, the overall cost of the project, and finally the quality of the product and the management of the company. If the above factors give satisfactory results, IFCI will grant the loan.

Industrial Finance Corporation of India can also subscribe to corporate bonds issued by these companies on the market.

IFCI also provides guarantees for loans made by such industrial companies.

When a company issues shares or bonds, Indian Industrial Finance Corporation may choose to underwrite such securities.

We also guarantee deferred payment if you borrow from a foreign bank in a foreign currency.

The Merchant Banking & Allied Services Division has a special division. They handle issues such as recapitalization, mergers, mergers and loan syndications.

As a process to promote industrialization, Industrial Finance Corporation of India is also promoting three subsidiaries, IFCI Financial Services Ltd, IFCI Insurance Services Ltd and I-Fin. It manages the functions and regulations of these three companies.

Q17) Write a short note on ICICI.       5

A17) India's Industrial Credit Investment Corporation or ICICI was established on January 5, 1955 to support the industrial sector of the private sector. It was sponsored by the World Bank.

Object

The main purpose of ICICI is to support the industrial sector in the private sector. The main objectives of ICICI are:

To support the creation, expansion and modernization of private sector industrial units.

Encourage the influx and participation of foreign capital into the industrial sector of the private sector.

Expand the investment market in India.

Function

The main functions of ICICI are as follows.

Sponsoring and undertaking new issues.

Provide medium- to long-term loans to the industrial sector of private sector.

To guarantee loans from other private sources.

To provide management, technical and management advice to the industrial sector by the private sector.

To make the funds available for reinvestment.

Promote foreign currency-denominated loans for the cost of imported capital equipment.

To extend the deferred payment guarantee.

Purchase stocks and bonds of the new company.

Management

ICICI is run by a board of 11 members, seven of whom are Indian shareholders, two of whom are UK shareholders, one of whom is a US shareholder, and one of whom is nominated by the Government of India. General manager.

Financial resources (capital)

The authorized capital of ICICI is Rs. It was raised to 25 rupees. 60 rolls. The current participation capital is rupees. 22 rolls. Capital is subscribed to by foreigners, including (i) Indian banks and insurance companies, (ii) Indian civilians, and (iii) UK and US investors.

Loan

ICICI is authorized to accept foreign currency loans. The main feature is the loan provided by the World Bank. In addition to the World Bank loan, ICICI also receives loans from the Federal Republic of Germany, the United States, the United Kingdom, IDBI, IBRD, AID, KFW, and the Government of India.

Progress review (operation)

ICICI has a commendable record of support for the industrial sector in the private sector. Major industries funded by ICICI include pulp paper, chemicals, electrical equipment, automobiles and cycles, machinery manufacturing, cotton fabrics, sugar and cement. Assistance includes rupee loans, foreign currency loans, guarantees, under writing and direct subscription securities. The performance of ICICI's Merchant Banking division is excellent.

Critical evaluation

There is no doubt that ICICI has provided valuable services to the private industry since its inception. We have developed and strengthened the underwriting market, which is an important branch of the capital markets. It is assumed to be very important as a supplier of foreign currency loans to the industrial sector of private sector. In addition, it has developed a vast association abroad.

ICICI has made progress in various economic fields, but has been criticized for the following reasons:

ICICI is indifferent to providing assistance in the rear regions of the country.

The gap between licensed loans and executed loans is fairly wide.

It does not have the necessary interest in the development of Japan's rural economy.

Despite the above criticisms, ICICI's overall performance in lending to the industrial sector in the private sector is commendable. We are beginning to be interested in the economic development of rural areas and underdeveloped areas in Japan. Therefore, the future of ICICI in India is very bright.

Q18) What is IDBI? State its function.      5

A18) Established under the Indian Industrial Development Bank Act of 1964, the Indian Industrial Development Bank (IDBI) is a leading financial institution to provide credit and other facilities to the development industry and to support development institutions.

Until 1976, IDBI was a subsidiary of RBI. In 1976 it was separated from the RBI and ownership was transferred to the Government of India. IDBI is the 10th largest bank in the world in terms of development. The National Stock Exchange (NSE), National Stock Exchange (NSDL), and Indian Stock Exchange (SHCIL) are some of the institutions established by IDBI.

Organization and management:

IDBI consists of a board of directors consisting of a chairman and executive director appointed by the Government of India, a vice president of RBI appointed by the bank, and 20 other directors appointed by the central government.

The Board of Directors consisted of an executive committee consisting of 10 directors, including the Chairman and Executive Director. The executive committee is empowered to sanction financial assistance.

IDBI is headquartered in Mumbai. The bank has five regional offices, one in Kolkata, one in Guwahati, one in New Delhi, one in Chennai and one in Mumbai. In addition to the bank, there are 21 branches.

Functions of the Indian Industrial Development Bank (IDBI)!

The Reserve Bank of India (IDBI) was established in July 1964 as a wholly owned subsidiary of the Reserve Bank of India. Full autonomy was granted in February 1976.

Today, IDBI is considered the pinnacle of development banking. IFCI and UT1 are subsidiaries of IDBI. IDBI's primary role as a top development bank is to coordinate the activities of other development banks and term finance institutions in the country's capital markets.

The main features of IDBI are:

1. Industrial planning, promotion and development aimed at bridging the gaps in the industrial structure by devising, preparing and highlighting new projects.

2. Provide technical and administrative support for the promotion, management and expansion of industry.

3. Provide refinancing facilities to government-approved IFCIs, SFCs and other financial institutions.

4. Coordinate the activities of financial institutions for the promotion and development of industry.

5. Purchase or underwriting of stocks and corporate bonds of industrial concern.

6. Guarantee deferred payment for industrial concerns and loans procured by them.

7. Conduct market and investment surveys, surveys, and technological and economic surveys that will help the development of the industry.

In short, IDBI is a leader, coordinator, and innovator in the field of industrial finance in Japan. Its main activities are limited to financing, development, coordination and promotion functions.

With the passage of the IDBI (Revised) Act of 1986, IDBI supports a variety of industrial activities, including activities in the service sector of industries such as informatics, healthcare, energy storage and distribution, and other contributing services. Has been authorized to provide. To add value. IDBI's business extends to consulting, merchant banking, and trust services.

The 1986 amendment raised IDBI's authorized capital to Rupees. 1,000 rupees to maintain the pace of business expansion (may increase to another 2,000 rupees with central government notice).

Between 1986-87, IDBI provided Rs. 929 Crore's direct industrial support with a project loan, including modernization schemes, technology development fund schemes, equipment finance schemes, and support underwriting and direct subscription of industrial company stocks and bonds.

But it approved Rs. Rupees paid as 65 billion rupees. A total of 40 billion loans. Cumulative support licensed and provided by IDBI 1964-1987 is aggregated in Rs. 227 billion rupees. 165 billion each. Between 1995 and 1996, IDBI's licensed financial assistance reached rupees. 19,469 rupees. Rupee 1063.6 billion was paid.

Q19) What is ISIDF? Write its features.      5

A19) Indian Small Business Development Bank (SIDBI):

With the growing need for financial assistance to small industries, a specialized financial institution dedicated to the small sector was needed. Therefore, SIDBI was established as a subsidiary of IDBI. It started operation on April 2, 1990. SIDBI has taken over the Small Industrial Development Fund and National Equity Fund previously established at IDBI.

SIDBI has been assigned the role of a top financial institution to coordinate the activities of other institutions engaged in facilitating, financing, developing and supporting small units in the small sector.

The main features of SIDBI are:

(A) Refinancing of term loans granted by SFC, SIDC / Banks and other qualified financial institutions.

(B) Direct discounts and re-discounts on deferred credit for bills resulting from the sale of machinery / capital equipment by small manufacturers, and re-discounts for short-term trade bills resulting from the sale of small sector products.

(C) Support the development of marketing infrastructure and create new marketing channels for small unit products in domestic and overseas markets.

(D) Direct support for the development of industrial parks / regions with the necessary infrastructure equipment.

(E) Resource support for the supply and marketing of raw materials for products and employment purchase and leasing activities to National Small Industries Corporation and State Small Industries Development Corporation.

(F) Extension of technical and related support services.

(G) Provide equity-type support to special target groups such as new promoters, women and former military personnel under the National Equity Fund, Mahira Udium Nidi, a self-employed scheme for former military personnel.

(H) Provide resource support to promote factoring companies to mitigate the difficulties faced by small units due to payment delays.

(I) Direct support to expand the supply base of small auxiliary units and encourage existing units to gradually improve / modernize the technology to improve product quality and competitiveness.

(J) Promote employment-oriented industries in sub-urban areas to check for unhealthy migration to urban areas.

SIDBI has done a commendable job to support the small sector. Special schemes for acquiring computers and accessories were introduced in 1991-1992 to improve the productivity and operational efficiency of small units. SIDBI introduced two new schemes between 1992 and 1993. A capital financing scheme to provide direct financing to existing well-operated small units incorporating step-by-step / modernization and refinancing technology for resettlement of NTC voluntarily retired workers. ..

Another new scheme launched was a venture capital fund dedicated to small units with an initial corpus of Rs. 10 rolls. It has registered as an institutional member of the OTC Exchange (OTCEI) in India. SIDBI also provides financial support to the National Small Industries Corporation to provide leasing, employment purchase, and marketing support to the small sector industrial sector.

The support that SIDBI provides to the small sector continues to grow.