Guided by; Dr. P. V. Desai
Prepared by; Apal Vora Dhrumit Shah
Kaushal Bhavsar
Ronak Sharma
Entrepreneur to understand difference between available financing sources, trends of financing options and some view points of major problems faced by experienced entrepreneur.
?
? ? ? ? ? ? ? ?
?
? ?
?
Who is Entrepreneur? Objective Why Entrepreneurship? Methodology Project Submission Schedule Work Distribution Chart Role of Entrepreneurship in the Economy The Entrepreneurship ‘Pyramid’ in India Sources of Entrepreneurial Finance Entrepreneur Finance Trend – Analysis and Observations Some Critical Issues in Financing Key Suggestions for Entrepreneurial Financing Bibliography
Someone/ individual who exercises initiative by organizing a venture to take benefit of an opportunity and as the decision maker, decides what, how, and how much of a good or service will be produced. The word derives from the French "entre" (to enter) and "prendre" (to take), and in a general sense applies to any person starting a new project or trying a new opportunity.
‘Entrepreneurship is the professional application of knowledge, skills and competencies and/ or of monetizing a new idea by an individual or a set of people by launching an enterprise from the beginning or diversifying from an existing one (distinct from seeking self employment as in a profession or trade), thus to pursue growth while generating wealth, employment and social good’.
To analyse and compare trends of available financing sources for Entrepreneurs
Given the increasing significance and visible impact of Entrepreneurship in wealth-creation and employment-generation, we consider it critical to India’s growth and development. It has undertaken this study to explore financial sources of Entrepreneurship and also various other factors that could further encourage and facilitate even greater growth. Even many people have worked on Entrepreneurship, but no one have analysed available sources are really utilise or not. For the purposes of this study and keeping in mind its key role in creating value of financing options for Entrepreneurs.
The methodology adopted in preparing this report is based on primary data called one-on-one interviews and questioner with sample entrepreneurs from diverse backgrounds in selected city as well as collecting information secondary data from internet, educational institutions, magazine, incubation centres, the entrepreneurial associations, financial community, etc. Based on primary and secondary data, we will analyse current trend and comparison of financing options (Incubators, Angel Investor, Venture Capitalist, Equity Investment and Debt Financing)
• Poject Proposal • Literature Survey 13/09/2011 • Research Objetive
• Project Review - I • Finalise Research Questioner for in-depth interview 12/10/2011 • Enterpreneurs Interview • Project Review - II • Research Analysis 21/11/2011 • Interpretation based on Analysis • Project Report • Recomandations 12/12/2011 • Finalisation of Draft Report
Kaushal Bhavsar Draft Report
Apal Vora Entrepreneurs Interview
Project Report
Ronak Sharma Literature Survey
Dhrumit Shah Research Question and Analysis
The entrepreneur who implements ‘new combinations of means of production’ plays a crucial role in disturbing the status quo through innovation or ‘creative destruction’ and thereby becomes an agent of change. As such, the ‘dynamic equilibrium’ achieved by a constantly innovating entrepreneur could generate the conditions for:
increasing opportunities for employment (comprising various competitive skill sets); ? additional wealth creation; ? introduction and dissemination of new methods and technology; ? overall economic growth.
?
Source: TSJ Venture Intelligence
? Incubator
? Angle
? ? ?
Investor
Private Investment Family Investment Businessmen Investment
? Venture
Capitalist ? Debt from Banks and Financial Institutions
Business incubation is a dynamic process of business enterprise development. Incubators nurture young firms, helping them to survive and grow during the start-up period when they are most vulnerable.
An angel investor is not an investor with golden wings and a halo but rather an individual who provides start-up capital to a new business and expects a percentage of ownership equity in return.
Venture capitalists are re-calibrating their priorities on new and early-stage investments for the new entrants. Venture capital funds are professional investment organization that invest in growing industries in order to make a profit.
The traditional path is debt financing, which involves taking on a bank loan or private loan. Debt is borrowing money from an outside source with the promise to return the principal, in addition to an agreedupon level of interest.
Financial Trend
0% 20% 0%
Funds from family member Business Angles Venture Capitalist Debt from Bank Incubator
20%
60%
Access to Equity Finance
10%
40%
Easy Normal
50%
Difficult
Access to Debt Financing
0% 20% 30%
Easy
Normal Difficult
50%
Not Applicable
Age Group
30%
50%
Age < 30 Years Age30 - 39 Years
20%
Age > 39 Years
? Ensuring
ready availability of Seed Capital ? Lack of relevant Secondary Markets ? Relative lack of Market understanding among Start-ups
? Explore
innovative models – Incubation ? Set up a public fund for start-up entrepreneurs using innovative PPP mechanisms ? Create a secondary market for smaller companies ? Make incubators responsive to market needs ? Encourage enabling business environment ? Encourage investment through Angel investors, VCs and PE funds
? ? ? ? ? ? ?
? ? ? ?
OECD (2004), Financing SMEs in an Innovative Economy. Background Report prepared for the 2nd OECD Ministerial on SMEs, June 2004 in Istanbul, Turkey. Gupta, A. and B.K., Jain, 2002. “Technology business incubators: Opportunities and challenges for India”, Asia Pacific Tech Monitor, vol. 19, No. 4 (July-August), pp. 45-50. Raetz, Gerhard, 2001. “Technology incubation: An instrument to support new enterprises”, Asia Pacific Tech Monitor, Jan-Feb 2001, pp. 17-22. http://www.dsir.nic.in/tpdup/tepp/tepp.htm - The Technopreneur Promotion Programme is run by Department of Scientific & Industrial Research. http://www.indiavca.org/ - The Indian Venture Capital and Private Equity Association (IVCA) is a member based national organization that represents venture capital and private equity firms. http://msme.gov.in/ and http://www.laghu-udyog.com/ - The Ministry of Micro, Small And Medium Enterprises lists various government schemes for entrepreneurs http://www.techno-preneur.net/ - The Technology Innovation Management and Entrepreneurship Information Service assists techno-preneurs in finding technologies, projects, funding options and information on policy environment, incentive schemes and industrial infrastructure available in the country, covering central and state governments. www.ediindia.org/ - The Entrepreneurship Development Institute of India (EDI), setup in 1983 fosters entrepreneurship through various programmes and courses. http://barcamp.org/ - Bar Camp is an international network of techno-entrepreneurs who meet from time to time to share ideas and sell products. http://www.businessgyan.com/ - This is a Karnataka-based business magazine on Entrepreneurship. http://www.kassia.com/ - Kassia is a premier voluntary state level nongovernment institution of small-scale industries in Karnataka.
doc_718231653.pptx
Prepared by; Apal Vora Dhrumit Shah
Kaushal Bhavsar
Ronak Sharma
Entrepreneur to understand difference between available financing sources, trends of financing options and some view points of major problems faced by experienced entrepreneur.
?
? ? ? ? ? ? ? ?
?
? ?
?
Who is Entrepreneur? Objective Why Entrepreneurship? Methodology Project Submission Schedule Work Distribution Chart Role of Entrepreneurship in the Economy The Entrepreneurship ‘Pyramid’ in India Sources of Entrepreneurial Finance Entrepreneur Finance Trend – Analysis and Observations Some Critical Issues in Financing Key Suggestions for Entrepreneurial Financing Bibliography
Someone/ individual who exercises initiative by organizing a venture to take benefit of an opportunity and as the decision maker, decides what, how, and how much of a good or service will be produced. The word derives from the French "entre" (to enter) and "prendre" (to take), and in a general sense applies to any person starting a new project or trying a new opportunity.
‘Entrepreneurship is the professional application of knowledge, skills and competencies and/ or of monetizing a new idea by an individual or a set of people by launching an enterprise from the beginning or diversifying from an existing one (distinct from seeking self employment as in a profession or trade), thus to pursue growth while generating wealth, employment and social good’.
To analyse and compare trends of available financing sources for Entrepreneurs
Given the increasing significance and visible impact of Entrepreneurship in wealth-creation and employment-generation, we consider it critical to India’s growth and development. It has undertaken this study to explore financial sources of Entrepreneurship and also various other factors that could further encourage and facilitate even greater growth. Even many people have worked on Entrepreneurship, but no one have analysed available sources are really utilise or not. For the purposes of this study and keeping in mind its key role in creating value of financing options for Entrepreneurs.
The methodology adopted in preparing this report is based on primary data called one-on-one interviews and questioner with sample entrepreneurs from diverse backgrounds in selected city as well as collecting information secondary data from internet, educational institutions, magazine, incubation centres, the entrepreneurial associations, financial community, etc. Based on primary and secondary data, we will analyse current trend and comparison of financing options (Incubators, Angel Investor, Venture Capitalist, Equity Investment and Debt Financing)
• Poject Proposal • Literature Survey 13/09/2011 • Research Objetive
• Project Review - I • Finalise Research Questioner for in-depth interview 12/10/2011 • Enterpreneurs Interview • Project Review - II • Research Analysis 21/11/2011 • Interpretation based on Analysis • Project Report • Recomandations 12/12/2011 • Finalisation of Draft Report
Kaushal Bhavsar Draft Report
Apal Vora Entrepreneurs Interview
Project Report
Ronak Sharma Literature Survey
Dhrumit Shah Research Question and Analysis
The entrepreneur who implements ‘new combinations of means of production’ plays a crucial role in disturbing the status quo through innovation or ‘creative destruction’ and thereby becomes an agent of change. As such, the ‘dynamic equilibrium’ achieved by a constantly innovating entrepreneur could generate the conditions for:
increasing opportunities for employment (comprising various competitive skill sets); ? additional wealth creation; ? introduction and dissemination of new methods and technology; ? overall economic growth.
?
Source: TSJ Venture Intelligence
? Incubator
? Angle
? ? ?
Investor
Private Investment Family Investment Businessmen Investment
? Venture
Capitalist ? Debt from Banks and Financial Institutions
Business incubation is a dynamic process of business enterprise development. Incubators nurture young firms, helping them to survive and grow during the start-up period when they are most vulnerable.
An angel investor is not an investor with golden wings and a halo but rather an individual who provides start-up capital to a new business and expects a percentage of ownership equity in return.
Venture capitalists are re-calibrating their priorities on new and early-stage investments for the new entrants. Venture capital funds are professional investment organization that invest in growing industries in order to make a profit.
The traditional path is debt financing, which involves taking on a bank loan or private loan. Debt is borrowing money from an outside source with the promise to return the principal, in addition to an agreedupon level of interest.
Financial Trend
0% 20% 0%
Funds from family member Business Angles Venture Capitalist Debt from Bank Incubator
20%
60%
Access to Equity Finance
10%
40%
Easy Normal
50%
Difficult
Access to Debt Financing
0% 20% 30%
Easy
Normal Difficult
50%
Not Applicable
Age Group
30%
50%
Age < 30 Years Age30 - 39 Years
20%
Age > 39 Years
? Ensuring
ready availability of Seed Capital ? Lack of relevant Secondary Markets ? Relative lack of Market understanding among Start-ups
? Explore
innovative models – Incubation ? Set up a public fund for start-up entrepreneurs using innovative PPP mechanisms ? Create a secondary market for smaller companies ? Make incubators responsive to market needs ? Encourage enabling business environment ? Encourage investment through Angel investors, VCs and PE funds
? ? ? ? ? ? ?
? ? ? ?
OECD (2004), Financing SMEs in an Innovative Economy. Background Report prepared for the 2nd OECD Ministerial on SMEs, June 2004 in Istanbul, Turkey. Gupta, A. and B.K., Jain, 2002. “Technology business incubators: Opportunities and challenges for India”, Asia Pacific Tech Monitor, vol. 19, No. 4 (July-August), pp. 45-50. Raetz, Gerhard, 2001. “Technology incubation: An instrument to support new enterprises”, Asia Pacific Tech Monitor, Jan-Feb 2001, pp. 17-22. http://www.dsir.nic.in/tpdup/tepp/tepp.htm - The Technopreneur Promotion Programme is run by Department of Scientific & Industrial Research. http://www.indiavca.org/ - The Indian Venture Capital and Private Equity Association (IVCA) is a member based national organization that represents venture capital and private equity firms. http://msme.gov.in/ and http://www.laghu-udyog.com/ - The Ministry of Micro, Small And Medium Enterprises lists various government schemes for entrepreneurs http://www.techno-preneur.net/ - The Technology Innovation Management and Entrepreneurship Information Service assists techno-preneurs in finding technologies, projects, funding options and information on policy environment, incentive schemes and industrial infrastructure available in the country, covering central and state governments. www.ediindia.org/ - The Entrepreneurship Development Institute of India (EDI), setup in 1983 fosters entrepreneurship through various programmes and courses. http://barcamp.org/ - Bar Camp is an international network of techno-entrepreneurs who meet from time to time to share ideas and sell products. http://www.businessgyan.com/ - This is a Karnataka-based business magazine on Entrepreneurship. http://www.kassia.com/ - Kassia is a premier voluntary state level nongovernment institution of small-scale industries in Karnataka.
doc_718231653.pptx