10 Differences Between Entrepreneurs and Businessmen

Entrepreneurs and Businessmen

There are many differences between entrepreneurs and businessmen but a major difference is there, which should be known by everyone who wants to become a businessman or entrepreneur.

So that major difference is that entrepreneurs always have a big new idea. 

By this they want to make money by solving some problems in people’s lives and businessmen always work on ideas which are already existing in the market and businessmen always give preference to make money rather than solving problems.

Why It is Important to Know Differences Between Entrepreneur and Businessman :-

It is very important to know the differences between businessmen and entrepreneurs.

Because after getting the real meaning of these two words, a person can relate themselves to what they really want to become in their lives and then they can start their own journey towards their goals and dreams which can be anyone either businessman or entrepreneur.

Here is the short definition of a Businessman and an Entrepreneur.

A businessman makes his place in the market with his efforts and dedication, whereas an entrepreneur creates the market for his own business. 

The businessman is a market player while Entrepreneur is a market leader because he is the first to start such an enterprise.

Here I am giving the 10 differences between entrepreneurs and businessmen:


1. In Terms of Ideas:

This is one of the big differences between entrepreneur and businessman which is in terms of ideas because an entrepreneur always has an unique idea which originates by himself only and by this he always wants to solve a big problem of society  and make money too.

An entrepreneur is always the first creator of a product, he invests time, energy and money on his own idea. 

A businessman always chooses a profitable business idea whether it is his original idea or an already existing idea, that’s why a businessman always faces a big competition in the market because many other people are doing the same thing but a businessman is the only person who can make a success out of any idea.

2. In Terms of Risk Taking:

In terms of risk taking a businessman always takes pre planned risks they don’t want to lose money and suffer from insolvency. 

That is why they always calculate profit and loss when it comes to business. 

Entrepreneurs always take unbelievable risks, usually they don’t care about losing  time and money because they would always be very passionate about their dreams. 

And when they do this with zeal, zest and passion, most of the time they get extraordinary results and great success. 

An entrepreneur is always a risk taker without calculating profit but a businessman always calculates profit first and then takes risk.

3. In Terms of Working Style: 

A businessman always does work for making profit, and their name for this world whether they are enjoying their work or not they are to do only work for better results in income.

They always want to become a big man by their money and standard anyhow.

They want to gain profit by hook or crook, businessmen always see the world as an opportunity.  

Entrepreneurs always do work which they enjoy, they always prioritise the world first and they always see the world as duty.

They always give preference to comfortability while doing any work, and always be passionate about doing something good for the world. 

Entrepreneurs often go into business for their passions rather than for profits.

4. In Terms of Customer Relationship:

A businessman usually sees their customers as his source of sales and earnings, for a businessman customers are like oxygen to survive in their business and for gaining good income. 

An entrepreneur always takes their customers as his source of duty which he has to maintain for lifetime an entrepreneur believes in maintaining relationships for lifetime rather than gaining profit. 

For an entrepreneur, customers are his companions whom he wants to make happy and satisfied by his work so he will not be compelled to do any other things for keeping them in their touch.


5. In Terms of Keeping Eyes on Competitors:

A businessman always tries hard to beat his competitors and win the competition. 

Sometimes he also considers cooperation and collaboration rather than competition to achieve certain goals. 

Entrepreneurs always learn from their competitors, they handle their competition in an easy and calm way.

They review their competition on a regular basis and face the challenge as a learning experience. 

Competitors encourage them to do more and more good work for going ahead from their competitors.


6. In Terms of Employer Employee Relationships:

A businessman hires employees and workers to grow his business and gives them targets to be completed in a specific time period. 

And he pays them for their hard work only and a businessman always maintains a worker and owner relationship.

An entrepreneur treats their employees as a friend and a leader, entrepreneurs never treat their employees as workers only, he always gives them respect and suggestions to do work in a good manner and invites them to help them grow.

7. In Terms of Money Making Mindset:

In terms of money making mindset a businessman is always afraid of losing money, it is the one of the huge fears which every businessman has. 

Many businessmen trust in a good economy to start their work, they always work for gaining profit, especially in the retail, and financing industry. 

Entrepreneurs generally take more risks with money finance and circumstances  in comparison to businessmen. 

Almost all entrepreneurs believe in this line which has been said by a big personality that  “nothing ventured, nothing gained”.

It means you can’t expect to achieve anything if you never take any risks.

Entrepreneurs always believe in saying that It is fine to make mistakes and lose money If you make some fundamental mistakes, then only you will look at the reason why this has happened.


8. In Terms of Time Management: 

A businessman never wants to waste his time, he always does his work in the same specific time period which he has already planned for that.

He never wants to delay any work or commitment to be out of schedule. 

An entrepreneur works as an artist or a imaginator, only his imagination makes him an entrepreneur. 

An entrepreneur’s product is always his masterpiece, that is why he always does work in a calm way because in hurry we can never imagine things. 

And without imagination we can not make any unbelievable product or brand.

Entrepreneurs always work on the idea whether that idea will take much time but the outcome, which we will get that will surely surprise everyone. 

9. In Terms of Understanding The Success:

Businessmen always describe success in money and growth.

How much money they are getting from their business, what is the turnover of their business, how much growth they are gaining on a daily basis, how much people want to work with them and want to invest in their business, that is the real success for businessmen.

Entrepreneurs never describe success their work describes their success, they always believe in one thing that if we are talking about our success then it is not your success it is only money which you have gain from your work but if people are talking about yourself in a good way and because of your work then it is your success.


10. In Terms of Opportunity Understanding:

Businessmen always take money as an opportunity, if they are seeing any area where they can invest and make money in a huge amount then they will take that thing as an opportunity and they will never miss that opportunity.

Entrepreneurs always take their duty as an opportunity, entrepreneurs always want to solve problems of people by their idea.

And entrepreneurs take that work of solving problems of people as an opportunity which will be done by them.

Conclusion

I have talked about businessmen and entrepreneurs but by these things i don’t intend to offend anyone because both businessmen and entrepreneurs are important in today’s era we need both of them at some places.

So I hope this article will be helpful for you and give you the right vision towards your goals and dreams.



Rural Entrepreneurship – The Scope of Opportunities

Rural entrepreneurship is a Ray of Hope for all rural human beings by this they will get the opportunities to become something in their life or at their place specially, and they will be able to find their exact potential to do something for their family too.

These are the most popular schemes by the government to encourage rural entrepreneurship 

Here is the most important thing which I am going to tell you that the government is providing many popular schemes to encourage rural entrepreneurship.

So if you are having any dream on which you want to work but not having any support then that is made for you only.

So do not feel pessimistic, be optimistic and start working on your dreams from now on. 

Here I am giving you knowledge about some of the most popular schemes by the government to encourage rural entrepreneurship so have a look.

  • Prime Minister Employment Generation Programme

This scheme provides subsidy for entrepreneurs. It has been implemented by Khadi and Village Industries Commission (KVIC) through identified banks, only for new projects.

All aspiring entrepreneurs can apply for this scheme and Self Help Groups (SHGs) can also apply for this scheme.

  • Centrally  Sponsored Schemes (CSS) of Export Market Promotion

The CSS is providing for the overall development of the coir industry, to support modernisation of export-oriented units to popularise coir products in global markets, and to participate in international fairs, and seminars.

It provides you up to Rs 2 lakh for participating in fairs and 25% of production cost with a ceiling of Rs 15,000 for publicity material.

  • Dairy Entrepreneurship Development Scheme (DEDS) 

This scheme is being implemented through NABARD which provides financial assistance to commercially bankable projects with loan from Commercial, Cooperative, Urban and Rural banks with a back ended capital subsidy of 25% of the project cost to the beneficiaries of general category and 33.33% of the project cost to SC & ST beneficiaries. 

Any individual entrepreneur, farmer, Group of farmers, Self Help Groups, Dairy Cooperative Societies, District Milk Unions and Panchayati Raj Institutions are eligible to apply under the scheme.

Successful Rural Entrepreneurs –

There are many successful rural entrepreneurs who have made their names in the rural industry so you can also become one of them.

Here I am sharing some big successful entrepreneurs names and work, you can also relate yourself with them because they had also started as a common man.

  • Mansukhbhai Jagani: Mansukhbhai is a popular rural entrepreneur. He developed a motorcycle based tractor for India’s poor farmers that is very cost effective and fuel efficient.
  • Mansukhbhai Raghavjibhai Prajapati: He is also a famous rural innovator in India known for his earthen clay based functional products like: Mitticool Non Stick Clay Tawa Low cost water filter He is the holder of the Indian patents for these products.
  • Chintakindi Mallesham: Chintakindi Mallesham is also in the top 10 rural entrepreneurs who invented a device for weaving which mechanized the process and reduced the human effort to bare minimum. This invention increased the production from one to six saris in a day and has given work to many people, also won a patent.

As per the sources India got 3888.12 crore turnover from rural areas in 2019 so Rural entrepreneurship is inevitable especially in India, whose majority of population live in villages.

So if you people take rural entrepreneurship seriously I am sure you will be the next entrepreneur of the rural industry.

All you need is to believe in yourself and do give a start to your idea and that idea can give you everything.

Why Rural Entrepreneurship is needed

  • Rural entrepreneurship has become essential as per today’s era as we can see the potential in today’s youth to do something big but they are not getting opportunities and platform to prove themselves especially in villages.
  • So that if rural industries generate large-scale employment opportunities in the rural sector then rural area’s people will get a chance to prove themselves.
  • Rural entrepreneurship is needed because by this villages can become more developed.
  • Rural entrepreneurship will work like a “pain killer” for those who are working in different cities but can’t come at their home because they don’t have employability in their village.

So by rural entrepreneurship that pain will be detected from their lives, so that people will feel free and happy because they would be with their families after completing their work.

What rural entrepreneurs can change 

So here I am going to talk about the most important part of this article, what rural entrepreneurs can change:-

  • Rural entrepreneurs can make a big change in the lives of many people in villages because after becoming an entrepreneur they can set an example for a vast population of rural areas.
  • Rural entrepreneurs can give a vision to rural people who are having some big dreams in their eyes for themselves and for their children too.
  • Rural entrepreneurs can make a big change in the field of art because a large section of artists are living in rural areas so by promoting them they can make a big change.
  • Rural entrepreneurs can change the mindset of urban people that rural people can not do anything and they can change the life status of rural people too.
  • Rural entrepreneurs can make a big change in the economy of our country by this they can remove poverty from our country because 60% of the population is from rural areas. 
  • If you take rural entrepreneurship seriously then you will be able to take benefits of government schemes as well. 

So by these points I just want to tell you all who really want to do something big in their life then first you have to do only one thing that is “Trust in yourself”.

Because the government can only support you by giving some schemes but only your inner voice and hard work will make you a big personality.

“Because today everyone knows that the prime minister used to be a tea seller but when he was not a prime minister, how many used to know about him.”

So stop thinking that how many people know you. Start working on your dreams because only your work can give you your real identity.

So i have said many things about rural entrepreneurship so i hope you all people would be able to interact with my words, and will get a new vision towards your dreams.

And you will start working on your dreams, and hopefully this article will help you in finding your real potential and by this you will get to know about many opportunities for that you can start working from now.

I feel that you people  will be able to find your inner talent or especially what you people really want to do for yourself. And you will get to know how it can be done by you.



What is The Insolvency and Bankruptcy Board of India (IBBI )

Insolvency and Bankruptcy Board of India

What is The Insolvency and Bankruptcy Board of India:-

The IBBI, insolvency and bankruptcy board of india falls under Insolvency and Bankruptcy Code 2016, it is a regulator which regulates the profession as well as processes related to insolvency and bankruptcy. 

It regulates bad loan cases reported by various creditors, which are especially involved with banks in India. It works towards resolving any insolvency for corporates, individuals and partnership firms.

  • It was established on 1 October 2016  in New Delhi.
  • Parliament of India is the founder of Insolvency and Bankruptcy Board of India.
  • Dr. M. S. Sahoo is the Chairperson of the Insolvency and Bankruptcy Board of India.

To know what this department does, first let’s understand what Insolvency is –

What is Insolvency ?

Insolvency is a state of financial distress which describes a situation arises due to the inability to pay off the outstanding debts on time to the creditors because the assets are not enough to cover up the liabilities.  

In the case of companies insolvency caused due to the continuous fall in sales, and it doesn’t have enough cash to meet out it’s day to day expenses of the business for which it takes loans from the creditors and banks.

Insolvency can arise from poor cash management, a reduction in cash flow, or an increase in expenses.

IBBI deals with some of these proceedings:

  • Corporate Insolvency
  • Corporate Liquidation
  • Individual Bankruptcy

Functions of Insolvency and Bankruptcy Board of India 

Here we are going to discuss some functions of Insolvency and Bankruptcy Board of India:-

  • Corporate Insolvency resolution process (CIRP):-  The insolvency resolution process is a one under the Insolvency and Bankruptcy Code, 2016, where the National Company Law Tribunal (NCLT) initiates a corporate insolvency resolution process (CIRP).

When a company defaults on making payment to creditors then creditors can file an application in front of NCLT if creditors loss is minimum 1 lac, because  the minimum amount of default for initiation of CIRP is Rs.1,00,000. 

After that NCLT will initiate an IRP interim resolution professional, whose name will be given by the creditor, which can be anyone from the creditor side.

Under IRP, the Insolvency resolution process appointed professional will be having the power to take charge of the company which has defaulted. 

That professional’s main work is taking necessary steps to revive the company.

Appointed professionals would have the power to raise fresh funds to continue operations.

  • Corporate Liquidation:- Liquidation is a process through a company which is going to be shut down and its existence comes to an end, because it is unable to pay its creditors and need to sell off its assets to pay them.

Liquidation process can be initiated under the insolvency and bankruptcy code 2016:- If the IRP interim resolution professional fails to find a resolution on or before the expiry date of insolvency resolution period.Then the company becomes liquidated to pay the creditors by selling off its assets .

In starting of this process first a public announcement shall be made about the corporate debtor being liquidated.And then further process can be done.

  •  Individual Bankruptcy:- As per the IBC Insolvency and Bankruptcy Code, 2016, a creditor can file petition for individual bankruptcy for an amount exceeding as little as Rs 1000 as per the notification by the Central Government. It can be revised upto Rs.1,00,000.

The IBC does contain a chapter relating to insolvency and bankruptcy process for individuals and partnership firms, but the rules for individual bankruptcy are yet to be notified.

Insolvency and Bankruptcy Board of India recently started to promote the development and working and practices of insolvency professionals,insolvency professional agencies and information utilities so now we will talk about these points:-

  • Insolvency Professionals:- An Insolvency Professional is one who is registered with the Insolvency and Bankruptcy Board of India (IBBI). They work for the dissolution process of an insolvent individual, companies, or partnerships.

These professionals get authorization from the IBBI to do work on behalf of such insolvent individuals and companies. 

In the situation of bankruptcy, the insolvency professionals play a big role in liquidating the entity assets and other settlement processes.

  • Insolvency Professional Agencies:- Any registered agency with IBBI becomes insolvency professional agencies, the most important work of these agencies are to regulate the activities of insolvency professionals and ensure their development in the industry. 

These professional members of the agency are required to work as per the terms and conditions of the insolvency agency code. 

These agencies have the primary function of granting membership to insolvency professionals.

These agencies also enquire about the member’s grievances and take steps to resolve those.

  • Information Utilities:- An Information Utility becomes a professional organization after getting registered with IBBI under Section 210 of IBC, 2016.

It works for providing authenticated information about debts and defaults. 

Information Utility plays a big role in storing the financial information of the users.

And it helps the lenders in taking the informed decision about the credit transaction.

It would also make debtors attentive as the financial information is available with the utilities. 

It plays a vital role in the creation of evidence; the information can also be used as evidence in bankruptcy cases.

How do you declare Insolvency in India ?

Before going through this point we should have knowledge about the difference between insolvency and bankruptcy, there is a minor difference between insolvency and bankruptcy.

Insolvency is the state of being unable to pay the money owed, by a person or company on time and bankruptcy is a process of declaring insolvency in india.

Bankruptcy:-

When a person becomes insolvent and he wants to become debt free so he files an application to the relevant court where he declares himself as insolvent due to his inability to pay his debts and expenses, seeking to be declared as a bankrupt.

When court decides the appropriation of the personal property of the insolvent among his various creditors. It is the last stage of insolvency and gives a new lease to the insolvent to start a new fresh. 

It relieves the individuals or a company from all the debts and other disadvantages of insolvency.

By following this process people can declare their insolvency in india.

Structure of IBBI

IBBI has a total of 10 members committee which includes one chairperson, representatives from the Ministries of Finance, Law and corporate affairs, and the Reserve Bank of India.

  • Dr. M. S. Sahoo, Chairperson, Insolvency and Bankruptcy Board of India
  • The Insolvency and Bankruptcy Board of India has appointed three people as whole time members:
  1. Sh. Sudhakar Shukla
  2. Navrang Saini 
  3. Mrs. Mukulita Vijayawargiya 
  • The Insolvency and Bankruptcy Board of India has appointed 4 people as Ex-officio Members:
  1. Dr. Shashank Saksena, Adviser (Capital Markets), Department of Economic Affairs, Ministry of Finance
  2. Sh. Gyaneshwar Kumar Singh, Joint Secretary, Ministry of Corporate Affairs
  3. Dr. Rajiv Mani, Joint Secretary and Legal Adviser, Department of Legal Affairs, Ministry of Law & Justice
  4. Sh. Unnikrishnan A, Legal Adviser, Reserve Bank of India
  • The Insolvency and Bankruptcy Board of India has appointed 2 people as part time Members:
  1. Dr. Krishnamurthy Subramanian, Chief Economic Advisor
  2. Sh. B. Sriram, Former Managing Director & CEO of IDBI Bank Ltd.

So here I have given all the information about the IBBI insolvency and bankruptcy board of India and IBC Insolvency and Bankruptcy Code, 2016. 

Which was established to support the falling companies to stand again on their feet by restructuring their credits so that they can repay them easily and make a fresh start. 

I hope all this information will surely work for you and give you knowledge in an easy way which you will be able to understand very easily.


Dairy Entrepreneurship Development Scheme – Full Detail

Dairy Entrepreneurship Development Scheme

Dairy entrepreneurship provides a very big scale of employment and supplementary income to a large number of people, and the dairy sector contributes significantly to poverty reduction in rural areas.

What is Dairy Entrepreneurship Development Scheme ?

The Department of Animal Husbandry, Dairying & Fisheries (DADF) launched  the Central Sector “Dairy Entrepreneurship Development Scheme”. 

This scheme has been implemented by the National Bank for Agriculture and Rural Development (NABARD).

Eligibility and Process to Get the Benefits of Dairy Entrepreneurship Scheme

So now we are going to gain knowledge about eligible people under dairy entrepreneurship development scheme:

Eligible Beneficiaries under Dairy Entrepreneurship Scheme:- 

  • An individual entrepreneur
  • A farmer
  • Group of farmers
  • Self Help Groups 
  • Dairy Cooperative Societies
  • District Milk Unions 
  • Panchayati Raj Institutions 

These all can apply for a dairy entrepreneurship development scheme, these all are eligible for this.

Now let’s talk about the process to get the benefits of dairy entrepreneurship scheme:

The government, under the Dairy Entrepreneurship Development Scheme is providing subsidy through NABARD on dairy installation and dairy products equipment.

  • As per DEDS, dairy entrepreneurship development scheme a person will get 25% capital subsidy on the total cost of dairy installation. 
  • An SC/ST candidate may get up to 33% subsidy. 
  • The subsidy is extendable for only up to 10 animals. 
  • For one animal the central government provides Rs 17,750 as subsidy. 
  • For SC/ST people the subsidy becomes Rs 23,300 per animal. 
  • A general category person can avail up to Rs 1.77 lac worth of subsidy upon opening a ten-animal dairy.

Subsidy on Dairy Equipment:

  • As per the scheme, one person can also purchase equipment for the manufacture of dairy products. 
  • On the purchase of a Rs 13.20 lac machine, that person can avail 25% capital subsidy (Rs 3.30 lac). 
  • SC/ST candidates can get Rs 4.40 lac worth of subsidy.

Subsidy on Milk Cold Storage: 

  • The Dairy Entrepreneurship Development Scheme also provides subsidy for the installation of cold storage units in order to preserve milk and milk products. 
  • Cold storage may cost Rs 33 lac so the government shall give up to Rs 8.25 lac to general applicant and Rs 11 lac to SC/ST applicant as subsidy.
  • So by following these different processes you people can avail for the different types of benefits.




This scheme has multiple objectives such as:

  • This scheme is implemented for generating self-employment.
  • This scheme is generating opportunities in the dairy sectors.
  • This scheme is providing infrastructure for the dairy sector.
  • It is going to set up  modern dairy farms. 
  • It is providing infrastructure for production of clean milk.
  • It is increasing the development of good breeding stock.
  • It is bringing structural changes in the unorganized dairy sector, by following this process initial processing of milk can be taken up at the village level.
  • It is upgrading traditional technology to handle milk work on a commercial scale.
  • It is covering activities such as enhancement of milk production,transportation, processing and marketing of milk. 
  • This scheme provides back ended capital subsidy for reliable projects.

Dairy entrepreneurs can actually contribute to the society in the following areas:

  • Dairy entrepreneurs can create jobs for the large section of unemployed educated youth.
  • Dairy entrepreneurs can create sustainability of commercial dairy production.
  • Dairy entrepreneurs can introduce new technologies and new products through entrepreneurial spirit.
  • They can reduce poverty, nutritional hunger through dairy development.
  • Dairy entrepreneurs can give their contribution in increasing income and equity.

Here i am sharing the 5 entrepreneurs name who are changing milk drinking in india:

  1. Devendra Shah – Founder, Parag Milk Foods
  2. Aalekh Agarwal – Founder, Cowboys.desi
  3. S Nagarajan – Managing Director, Mother Dairy
  4. Srikumar Misra – Managing Director & CEO, Milk Mantra
  5. RS Sodhi – Managing Director, Gujarat Cooperative Milk Marketing Federation (Amul)

Why Dairy Entrepreneurship Development Scheme is Launched & When it is Launched

Why it is Launched :-

Dairy Entrepreneurship Development Scheme is launched by the government to extend

assistance for setting up small dairy farms and other components to bring structural

changes in the dairy sector.

When it is Launched:-

The Department of Animal Husbandry, Dairying and Fisheries (DAHD&F) launched a pilot scheme titled “Venture Capital Scheme for Dairy and Poultry” in the year 2005-06.

While a mid-term evaluation, some specific recommendations were made to accelerate the pace of implementation of the scheme. 

When the department received representations from various quarters including the farmers, Governments and banks, DAHD&F determined to make some changes to the scheme, including changing its name to Dairy Entrepreneurship Development Scheme (DEDS).

The revised scheme has come into operation from 1 September 2010.

How People are Getting Advantages of Dairy Entrepreneurship Development Scheme 

In this scheme farmers are getting a big advantage of loan which is of worth Rs 7 lakh for 10 animal units, Minimum limit is of two animals and highest limit is of ten animals. 

25 percent of the project cost will be applicable as per the back ended capital subsidy.

Some other advantages of this scheme:-

  • It is a very environment friendly business because producing dairy foods requires natural resources such as energy, land and water so this can never arise pollution which is happening because of many industries. 
  • Dairy community takes environmental stewardship seriously and is committed to contributing to sustainable food systems.
  • It would be having a very big advantage of increasing demand for milk products, because this demand is rapidly increasing day by day.
  • Cow dung is a good organic manure that increases soil fertility, so it can also be a very good advantage of dairy business.
  • Cow dung can be used for the production of biogas, so by this also this business will play a big role in the dairy farming industry.

So as we have talked about many things regarding Dairy Entrepreneurship Development Scheme so as per me all the people who want to step in this entrepreneurship they will get all the knowledge about that.

I hope this article will be useful for you and you will be able to find all your questions answers which are clicking in your mind from a long time so get your answers and take a further step towards your goal.






Entrepreneurship Development Institute of India (EDII)- Benefits, Eligibility and Admission Procedure

Entrepreneurship plays a very significant role in the economic development of the nation. Before embarking-upon any entrepreneurship, knowing the accurate procedures, risk factors and plannings are the crucial elements. 

When one doesn’t get formal and practical  training and conditions to prepare themselves for the coming outcomes in both aspects, survival becomes difficult for budding entrepreneurs. 

In the absence of such development programs, entrepreneurs don’t come to know about the advantages which can be taken through proper guidance and knowledge. 

Less awareness of present existing rules and regulations end-up in not acquiring basic competencies which is extremely required to make entrepreneurship a success. 

The absence of such institutes make untouch the entrepreneurs with necessary elements like, management consultancy during the establishment period, subsidies and tax reliefs, proper marketing strategies, and many more.

By keeping all the requirements and skills in consideration, an autonomous and charitable Entrepreneurship development institute of India was established in 1983 in Ahmedabad, Gujrat.

It is completely an non-profitable or unremunerative institution of India which is not commercially motivated  thoroughly. The funding is done by the pinnacle and vertex institutions of finance. It is sponsored by IDBI Bank, IFCL Ltd. , ICICI Bank and SBI.

The government of Gujarat impledged 23 acres of land, where the campus of EDII is infrastructured. To fulfill the objective of EDII, it has started 12 more state level development centres and institutes exclusively for entrepreneurship. 

EDII has been endeavouring to impart entrepreneurship in the curriculum of maximum schools, colleges and institutes to make reach to the maximum number of people. The Ministry of External Affairs (India) had assigned the work of spreading ED not just in the house of the nation but in the different parts of the world as well. It has successfully carried out ED centers in Cambodia, Lao PDR, Myanmar, Vietnam, Uzbekistan and Kazakhstan and looking forward to set-up in african regions soon. 

How EDII is Helping Entrepreneurs to Develop Entrepreneurship Skills?  

The programme of entrepreneurship of EDII can have you obtained help in different dimensions of your entrepreneurial journey. EDII helps through his strong and influential linkages to students to grow and build their network in entrepreneurship. It provides a platform to the students to spread their wings in a calculated risk zone.

  • Creating a reliable will – EDII has several tie-ups with government and non-government sectors to avail more opportunities to take initiatives. The credibility comes when you go with the institute’s cognizance instead of going as an individual to create even the ambiance for entrepreneurship. It helps you in creating a reliable will  that supports in every further process of entrepreneurship. 
  • Risk taking plannings – When one thinks to transit a traditional entrepreneurship to an progressive one, the risk factor gets higher which requires measured and calculated risk taking plannings. Such skills to get the enough amount of courage can only be gathered by practical practices that one gets in EDII. As technical skills can be learnt but emotional skills can only be developed. 
  • Utilizing the national resources – A business has no limits in availing the products beyond the geographical boundaries of a nation, whereas entrepreneurships have such limits and such programs  help to embark-upon new start-ups in the geographical boundaries of a country and utilise the resources of nation in nation only. This indirectly helps the economy of the nation. However one would be able to satiate the supply where the demand gets risen from.
  • Executing the ideas into reality – Entrepreneurship development institute of India is working on the deeper enrooted problem of the nation like India where youth has innovative minds along with having no skills to transfer the ideas into execution. Such institutions help youth in executing their ideas into reality and to get the society and self utmost benefit by providing them proper training and learning.
  • Preparing for the losses – Failures and losses are the unavoidable elements of an entrepreneurship. But when one gets such elements without having any pre-prepared plannings, then it ends up in the wrap-up of entrepreneurship. To avoid such situations to come, these programs help a lot. These programs prepare you for the upcoming  loss factors they one may have.
  • Increasing the innovative productivity – EDII renders you the experience of experimenting in your work which gives you the estimation of almost every mistake that you may attempt while learning. It benefits you in such a way that it helps you in attempting always fresh mistakes in order to learn new every time and that increases the innovative productivity of your work.
  • Learning from the experiences – EDII opens the doors for plenty of opportunities as it has its own unique curriculum, abundance of activities happening in its infra, highly qualified faculties and their experiences of their respective fields.Being the student of EDII itself help them in building their own network which help them in their own venture.
  • Networking – EDII has its successful alumni network who are accomplished entrepreneurs. Their experience of being an alumnus/elumina and of being a success at venture will certainly help new learners in order to grow their own kingdom in the entrepreneurial world.
  • Collecting Funds – Being a part of EDII helps you in collecting funds and angel investors. The credibility and reliability get increased with the name EDII. Span of time is also an element that brings credibility as EDII has been preparing entrepreneurs for the last 3 decades. 

Eligibility and procedure to get admission in EDII

Several courses, diplomas are being provided by EDII and each course has its own requirements and eligibility criteria. But there is a certain parameter for overall courses. 

Candidates must be a holder of a Bachelor’s Degree with 50% or its equivalent CGPAfrom a renowned university. But if the candidates belong to Scheduled castes (SC), Scheduled Tribes (ST), and from a Differently Abled (DA) category then the minimum 45% is required.

Candidates who are appearing for the final year of their bachelor’s degree and who are awaiting for their result and degree after having an appearance in exam, can also apply.

Candidates must have appeared in one of the following entrance exams like, CAT, GMAT, XAT, MAT, CMAT, ATMA, and must have scored the minimal requirement scores.

Through the Group Discussion (GD) and Personal Interview (PI) eligible candidates are shortlisted.

Final merit list gets prepared on the basis of the learner’s performance in Entrance test, Group Discussion, Personal Interview and any other academic or extracurricular achievement. 

Application form for EDII can be filled offline and online both. Through the website of EDII, application form can be filled and registration fee can be submitted. For the procedure one needs to fill the form which is available on EDII’s website and send the demand draft at EDII Ahmedabad. 

In the absence of proper planning and execution may entrepreneurs fail miserably. But EDII lessens the chances of having such a situation for entrepreneurs. Running a venture is not easy but nurturing it with proper growth is a challenging process which accumulates your dedication, perseverance, patience, belief in your work and so many more elements. That’s what such institutes do. Such institutes become the catalyst in the process of becoming an entrepreneur. 

I hope this article will solve all your queries regarding the Entrepreneurship program and will help you in the journey of making your own entrepreneurial arena a success.

What is a Joint Stock Company ? 10 Very Important Things to Know

What is a Joint Stock Company ?

Here we always talk about start-ups, businesses, companies,and investing in different businesses.

If a person doesn’t have enough money to form a company what should he do? well, that’s where the joint stock company kicks in.

Now lets know what is a joint-stock company?

A Joint Stock Company could be a voluntary association of a group of people to hold on the business.

It’s an association of more than one person who contributes investment into the organization i.e termed as “capital”. 

These people of this group are members of the corporate/organization. 

The partition of the capital of every member in the joint-stock company is known as “share” and each member holding such share is termed “shareholders” and therefore the capital of the corporate/organization is known as “share capital”.

Still, confused? 

Let’s breakdown this down-

In simple words, a joint-stock company is described as a business organization where more than one people are part of the organization or you can also say more than one person invested/owned the organization.

These people are called the shareholders of the joint-stock company. These shareholders own a certain amount of stock in the company known as their “share”.

Any joint-stock company involves shares, which also are encountered as public companies. The holders can either buy or sell the shares after their liking.

After understanding what’s a joint-stock company, it’s important to say that the shares in these sorts of organizations accompany obligations. 

Unlike ordinary or preferred stock, where there aren’t any obligations involved, joint-stock company shares require the holders to vote directly within the company’s management decisions.

Over that, the holders can intervene in how the company’s outstanding debts are handled.

Now that we have understood what is a joint-stock company lets go through some of the features of the joint-stock company there are many features but we will go through some of the important features-

1. Artificial Person: 

A joint-stock company is formed by the law-making body. It is viewed as an’ artificial human’ without any physical form.

Although a Joint Stock Company as a legal person is invisible and intangible, nearly all the rights of a natural person are enjoyed by a company.

It can sign contracts with other parties, buy and sell assets and properties, appoint people as Executives, and employee also an artificial legal person is controlled through the board members of the joint-stock company which give all its rights.

2. Separate Legal Entity: 

Joint stock company has separate legal identities and representatives relative to partnerships or ownership.

If a corporation is a joint stocked, as already stated, it receives a legal identity. There is no special responsibility for a member of a joint-stock company.

Therefore, in terms of financial or business activities, the joint-stock company will not rely on its members because they will be led by the Management Board.  

Its shareholders will not be held responsible for any conduct of the joint-stock company.

3. Limited Liability: 

In the joint-stock company, partners are generally limited throughout liabilities by assurance or shareholding. 

If a shareholder has paid the full amount owed for his stock previously, he will not be responsible for any further for the company’s debts. 

Nevertheless, the responsibility for sole ownership and association is infinite, and the latter is shared and multi-faceted in the latter situation.

4. Perpetual Existence: 

Unlike a corporation or single operating interest, the joint-stock company has a perpetual feature. 

Once an entity is created, it will operate until it is officially liquidated for an indefinite duration. In the case of the business, the slogan “men may come and men go but I go on forever”  But the demise of a sole trader concludes with a sole business issue and any members of the partnership must, in the case of merger, death, resignation or insolvency, split the firm.

5. Limited liability of shareholders: 

The responsibility of the owner reflects the disparity in a joint-stock company unlike other companies or a partnership. to pay the liability of the corporation, the properties belonging to the group owners can not be liquidated in a joint-stock company.

The liability of a creditor is restricted, and there is no position for the amount of debt here.

6. Common seal: 

Since a joint-stock company is an artificial legal entity, the board of directors controls its roles, meaning that approvals are common.

Standard seals are engraved and bear the name of the company, but the board of directors take its decisions. 

The only things that bind the organization to a contract are the standard seal and the signatures of the members.

7. Transferability of Shares:

In joint stock company representatives of a collective corporation shall be entitled to openly move their shares as provided for by the laws of the organization of the company.

The private company representatives do not, though, obtain this right.

8. Separation of Ownership from Management: 

In a joint-stock company the owners are held in a corporation, while the administration of the company’s operations is in the possession of the Management Board.

This is because a large group of owners distributed over a large area can not collaborate regularly for the corporation. Shareholders, therefore, appoint their representatives as managers to manage the affairs of the company.

9. A Large Number of Members: 

In a joint-stock company, the maximum number of members is not limited. Therefore, huge capital can be brought up.

Even an ordinary man can spend his money in a large company and benefit from it.

10. Distribution of Loss and profit:

There are large numbers of shareholders in a joint-stock company. A significant number of members are at risk for total losses and benefits in profits owing to a business.

Unlike a limited partner of a public company will accept a very small failure probability that is confined to its stock’s face value.

Let’s dive into some advantages and disadvantages of a joint stock company-

Advantages:


1. The main benefit of joint-stock corporations is the limited liability of all shareholders. 

2. The liability is restricted to the outstanding sum of your stock, which represents a major benefit. 

3. The shares are transferable from a joint-stock corporation. It ensures that if a person wishes to sell it on the market or in a public listing, he or she can do so and transform it into cash. 

4. The continuous succession of shared stocks can be perceived to be a great advantage because the assets can be exchanged. 

5. To manage all the activities, a company hires a board of directors. The Board is elected by highly qualified and talented people and this results in inefficient management. Furthermore, a company often has great resources, allowing them to employ the best talents and professionals. 

6. Joint-stock companies have huge budgets, and experts can be employed to carry out the activities associated with them.

Disadvantages:

1. The formation of a joint-stock company is a very long and time-consuming process.

2. It is a costly process and the main disadvantage of such enterprises. The usually long period lasts between a few weeks to a few months. 

3. The Company Act requires public records of all public companies. This implies a large lack of secrecy as the ownership of a joint-stock company is public. 

4. Joint stock firms comply with a variety of strict regulations and rules that greatly reduces their rights.There is also a restricted operation of joint-stock firms.

Now, let’s know how the joint stock company gets formed?

It happens mainly in 5 stages let’s get into details:

Promotion: 

Promoting a company applies generally to all operations that have to be embarked on to set up a new business entity to produce or distribute some goods or services to the public.

It starts by conceiving a business idea or finding a possibility to do business,evaluating its feasibility and starting the business unit with the necessary steps.

The problem is whether or not all the basic requirements including property, building, raw materials, equipment, machinery, etc. are usable.

A promoter could be identified by an individual or group of individuals who think of a new business, determines its viability and takes the required steps to coordinate the basic requirements to create a business unit such as a company and put it in action.

He designs the concept of a business enterprise, analyzes the potential, establishes a tentative organizational model, gets the requisite people, equipment, machinery, and money together, and launches the firm.

Incorporation:

To carry out its business without registering, a sole owner or partnership corporation may be formed.

Nevertheless,a corporation can not be founded or allowed to operate without registration.

In reality, only when registered with the Registrar of Companies a company comes into being. The promoter should take the following actions:

    a: Approval of Name: The name chosen for the organization will ensure that it does not suit any other company’s name. For this, the creator will fill in and forward to the Company Registrar the “Name Availability Form” together with the fees needed. At the top, the term will contain the

words ‘ Limited ‘ or ‘ private Limited. ‘When authorized, the promoter may continue with other incorporation formalities.

    b: Filing of Documents: Following the approval of the name, the promoter applies for registration 

to the Registrar of the Companies of the State in which the Registered Office of the company is located.

             The following documents must accompany the application for registration:

                 * Memorandum of Association (MOA)

                 * Articles of Association (AOA). 

                 * A list of members who have agreed to become Directors of the joint-stock company with their addresses etc.  

                 * Written consent of the proposed Directors to act in that capacity, duly signed by each Director. 

                 * A copy of the letter of authorization from the company registrar. 

    c: Payment of Filing and Registration Fees: The Registrar will also check all documents and if he finds them correctly he will issue a Certificate of Incorporation, which will be paid at the prescribed rate for a long term. The business is made available when the certificate is released.

So this certificate may be called as the Birth Certificate of a Joint Stock Company

Raising capital or subscription of capital:

After the company is incorporated, the next stage is to raise the necessary capital. 

In the case of a private limited company, funds are raised from the members or through arrangements from banks and other sources.

 In the case of a public limited company, the share capital has to be raised from the public. 

Commencement of business:

In case of a private limited company, it will automatically start its business as soon as it is registered. Nevertheless, 

in case of the public limited company a certificate, recognized as ‘ certificate of commencement of business’, must be received from the Registrar of 

Companies before starting their service. To that effect, a document shall be sent to the Registrar of Companies with the following declaration.

Now, this is the process to form a joint-stock company.

Let us know in the comment if you like the article or not.

Thanks for reading

Have a good day.












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What is a Lean Startup ?

What is a Lean Startup?

  • Lean startup is a method used to build businesses based on the beliefs that the entrepreneurs must investigate experiment and test as they develop the products. 
  • It is basically Customer development + Product development. 

10 Important points about lean startup:

1. Lean startup uses validated methods and a hypothesis to assess consumer interest. This will help you to understand the needs and demand of the market. Hence, you can produce accordingly.

2. Lean startup gives a lot of importance to customer related information such as product popularity, Lifetime customer value (Profit attributed to the future relationship with a customer) and customer churn rate (Percentage of customers lost during a specific period).

3. In a Lean startup, experimentation is given more prominence than having a fixed plan. 

4. Lean startups will release their products in a small quantity in order to assess the customer reaction to the product. 

5. The Pivot – A pivot is not necessarily a failure. It means you will change one of the main hypotheses that you had implemented. There are different types of pivot. They are:

  • Zoom in pivot – A single feature in the product now becomes the whole product.
  • Zoom out pivot – It’s the opposite of zoom in pivot. A whole product becomes a single feature in something bigger. 
  • Customer segment pivot – The product was right but the customer segment targeted was not. Here, the product remains the same but the segment changes.
  • Value capture pivot – Changing how value is captured changes everything in the business. (Cost structure, product, marketing strategy, etc)
  • Technology pivot – A new technology can substantially reduce the cost, increase efficiency or performance and allow you to keep everything else the same. (value creation, customer segment, etc)

6. Small batches:

One of the biggest advantages of working in small batches is problems can be identified at a much lesser cost. 

For example – If there is a defect in the physical part, stopping the entire production line can be avoided. 

7. The Andon cord:

The key to the Andon cord is that it brings work to a stop if there is any big problem that requires it to be investigated. 

The activation can bring the production to stop if there is a big issue. This will help the management because it will help in reducing extra cost and increasing the quality too. 


8. Kanban:

Kanban is a visual system for managing work through a process. The goal of Kanban is to identify potential problems in your process and fix them so that work process can be smooth without any bottlenecks.

This is also helps in saving money as it helps in recognizing the problem at an initial stage.   

9. The 5 Whys:

Using the 5 Whys technique helps you get close to the root cause of the problem. It’s a simple and a powerful technique. 

This technique is particularly useful for startups, as it helps them to find the optimal time and speed for making improvements to the detected problems.

10. Minimum viable product:

A Minimum viable product is a product with just enough features to cater to needs of the early customers and this will help in providing feedback for future product development. 

These were some important points about lean startup. Hope you liked it. ☺  

Also read about startup india here-

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Difference Between Self- Employment and Entrepreneurship

Difference Between Self- Employment and Entrepreneurship

Often, self – employment and entrepreneurship are confused to be the same. An entrepreneur and a self-employed person may share the similarity of owning a business but their mindset and approach are completely different. 

The distinction between self – employment and entrepreneurship are:

Self-employment: When one works for himself. Maybe as a contractor or running your business.

Entrepreneurship: Process of setting up a business, taking on financial risk, in hope of getting profits in return.

Here we have written 8 points to differentiate self-employment and entrepreneurship –

1. Being self-employed, you have people working for you. Being an entrepreneur, you have people working with you. 

2. As a self-employed person, you hire people to work for you. The vision and goal is set by you and it solely depends on you. As an entrepreneur, you have people working with you. You and your team work together on setting and achieving the company goals. 

3. Self-employed people are the face of their business. If their absenteeism is constant, their business will significantly go down. This is not the case for an entrepreneur. The business will keep running even if the boss is absent because the employees understand the vision of the business. 

4. For self-employed, if the business owner retires or passes away, the business will also die. But if the business owner passes away, the business will still continue. It is not dependent on him to exist.

For example: Even after the demise of Steve Jobs, Apple still continues its business. Or even after Jack Ma retired, Alibaba continues its operations. 

5. Self-employed is reserved in his thinking. He does not want to go big. He is just concerned about paying off bills. Entrepreneurs are open minded. They are global thinkers. They understand the advantages of catering to people’s needs on a large scale.

6. A self-employed person is not a risk taker. He fears change. An entrepreneur is a risk taker. He has the zest to explore new opportunities and believes that he can manage and control risk. They understand that with great risk comes great returns. 

7. A self-employed person tries to do everything on his own because he thinks he is the best and nobody is better than him. An entrepreneur on the other hand understands and accepts that he can’t everything on his own. He delegates the right work for the right people so that there is efficiency in the work done.

8. Self-employment does not have many requirements and restrictions. Entrepreneurs must deal with a wide range of legal requirements including business registration, insurance requirements and filing taxes.

From this, there is a fine distinction between self-employment and entrepreneurship.

With 8 aspects mentioned, where do you see yourself?

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10 Benefits of Working in a Startup

When you think of working in a startup, do you think it’s fun or long hours of slogging? There is no correct answer to this. Both of them could be true. But it’s important to not overlook the benefits of working in a startup. 

Before taking a final decision, don’t forget to consider these benefits of working in a startup. 

1. You’ll get to work with passionate entrepreneurs:

If you work in a startup, you’re going to be managed by passionate and talented entrepreneurs who have gambled everything for fulfilling their dream. Working under them will teach you more than you could have ever imagined and their guidance will take you places.

2. Wear many hats:

As a startup employee, you’ll be designated with many other roles outside of your job description. Although this could mean more stress and long hours, the experience and exposure gained from doing this is cannot be experienced in a corporate. 

3. A unique growth opportunity:

Best of the candidates are not motivated and driven by money. They are motivated by the opportunity to learn and grow. They understand that knowledge is money. In a startup, they can develop new skills and do things they wouldn’t have the opportunity to do elsewhere. 

4. Experience the startup culture:

The startup culture is more chill compared to the corporate culture in terms of dress code, rules and employee hierarchy. Have a problem that is not resolved? At a corporate office, you would have to go to your boss, and he would report to his boss and so on. But in a startup, ideas and problems can be discussed with the boss directly. 

5. Work that matters:

Working in a corporate in the initial stages of your career means you’ll probably be stuck doing some work that doesn’t really have any significant impact on the mission of the company.  But each startup employee is important and has a crucial role to play in the success of company. 

6. There will be ping pong and foosball: 

Obviously this is not guaranteed but usually the startup office atmosphere is a world away from the corporate office atmosphere. And if you happen to join a startup without a ping pong table, a few e-mails and a bit of money pooling among the colleagues can do the trick. 

7. Learn how to be an entrepreneur: 

Do you have a dream of starting your own company someday? Working at a startup will help you get closer to your goal because startup employees work together. This will help you understand and evaluate the decisions that are taken at the top level, middle level and lower level. Not only that, you also learn how to deal with all types of clients and understand how day to day business matters are handled. 

8. Working in a startup can be the equivalent of doing an MBA:

In MBA, you will be learning all the concepts but not implementing it practically. In a startup, you will be implementing it practically. You will be dealing with real money and real clients. Of course doing an MBA has its own perks but working in a startup can really increase your knowledge. 

9. Flexibility:

One of the main advantages of working in a startup is flexibility. The option of work from home, option to do their work on their own schedule and find a balance so that they can spend more time with their family, friends and their hobbies.   

10. Stock options:

Many startups offer stock options along with regular salary. This is a cool option because it will make you feel like an owner of the company. This can add as a motivational factor to work harder and learn more so that you can contribute to the growth of the company. 

So, these are some of the benefits of working in a startup. Hope you liked it.  


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