Documentos de Académico
Documentos de Profesional
Documentos de Cultura
FAMILY BUSINESS
MANAGEMENT
SESSION 2
GROUP 6
Overview
• New venture startups & Challenges
• Why new ventures Fail?
• Environment of new ventures
• Macro View
• Schemes introduced by Government
• Industry Environment
• Micro View
• Business incubators
New-venture start-ups
• During past few years the number of new venture start-ups has been
consistently high.
• There are 150 million startups in the world today with 50 million new
start ups launching every year. On average, there 137,000 startups
emerging every day. These are huge numbers by any standards.
• According to economic survey 2015-2016 India has more than 19000
technology enabled startups.
• The entrepreneurial motivations of individuals are personal
characteristics of entrepreneur, the environment and venture itself.
Challenge of new-venture start-ups
• Fierce competition
• Unrealistic expectations
• Hiring suitable candidates
• Financial management
• Winning trust of customers
The real challenge of new firms is to survive and grow.
In order to do this they need to have clear understanding
of the critical factors for selecting ventures, the known
reasons for failure and effective evaluation process
Pitfalls in selecting new ventures
• Lack of objective evaluation
• No real insight into the market
• Inadequate understanding of technical requirements
• Poor financial understanding
• Lack of venture uniqueness
• Ignorance of legal issues
Critical factors for new venture development
• Uniqueness
• Investment
• Growth of sales
• Product availability
• Customer availability
A new venture Idea Checklist
• Basic Feasibility of the venture
• Competitive advantage of the venture
• Buyer decisions in the venture
• Marketing of goods and services
• Production of goods and services
• Staffing decisions in the venture
• Control of the venture
• Financing the venture
ENVIRONMENT OF NEW
VENTURES
Environmental Scanning
Refers to the efforts by which an
owner-entrepreneur examines
the external and internal
environments before making a
decision.
A Macro View: The Economic and Industry
Environments
• What is the current state of economy?
• What is the condition of the labour market?
• How many firms are there in this industry?
• What is the geographic concentration of firms in the
industry?
• What is the competitive nature of this business?
Regulatory Environment
Governmental Regulations Affect Smaller Ventures in a Variety of Ways:
• Prices
• Cost inequities
• Competitive restriction
• Mental burden
Modi’s Schemes That Have Been Favorable for
Starting an MSME in India
1. Startup India, Standup India scheme:
Startup means an entity, incorporated or registered in India :
• Not prior to seven years, (for Biotechnology Startups not prior to ten
years),
• With annual turnover not exceeding INR 25 crore in any preceding financial
year, and
• Working towards innovation, development or improvement of products or
processes or services, or if it is a scalable business model with a high
potential of employment generation or wealth creation
*Provided that such entity is not formed by splitting up, or reconstruction, of
a business already in existence
Startup India (contd)
• Startup India Hub : to resolve queries and provide handholding
support to Startups through telephone,email and twitter
• Tax Incentives: Income tax exemption for 3 years in a block of 5 years,
if they are incorporated between 1st April 2016 and 31st March 2019
• Enables faster exit for startups
• IPR Benefits: A panel of facilitators has been constituted for
assistance in filing Intellectual Property (IP) applications.
• Startup India Portal and Mobile App: These have been launched as
online platform for providing updates, information, recognition and
eligibility certificates to Startups and other stakeholders
2. Zero Defect, Zero Effect Scheme
This is for MSME sector to improve the quality of their products to
match global standards. As the MSME sector contributes largely to the
country’s GDP, the scheme is expected to contribute to the
environment as well.
3. National SC/ST Hub
The government launched the National SC/ST hub for facilitating
entrepreneurs (from SC/ST categories) in MSME sector and even
distributed 500 spinning wheels (traditional wooden charkhas) among
women to start their own MSME unit.
4. Stand Up India Loan Scheme
It is basically a loan scheme launched by the Indian government to
provide financial assistance to country’s lower sections (SC/ST,
backward tribes, and women) to promote employment and
entrepreneurship among them. The financial aid between INR 10 lakh
to 1 crore at the lowest applicable rate for that category
5. Credit Guarantee Fund Trust (CGFT)
The CGFT ensures availability and delivery of bank credit to the first-
generation MSME entrepreneurs without worrying about collaterals or
third-party guarantees to help and support them in realising their
dreams of owning a business.
ELEMENTS OF INDUSTRY
The five forces model
• Threat of new entrants
Number of firms in the industry
Industry growth rate
Excess capacity