A start up is an entrepreneurial venture firm that is recently raised for quickly developing businesses. It is a business plan that needs to meet the commercial attraction by building a feasible plan for action that includes invention, innovation and risk.
Start-up is generally a private venture, organization or association that creates and improves an adaptable and flexible plan for business.
New business authors and researchers extended their thoughts, invention or idea into business plan and are quite successful. The business is generally divided on the three basis kike manufacturing, trading and service provider.
The start-up is generally a sole business proprietor and solely earns profit or loss in the business or a partnership joint venture where they invest a particular amount of fund and shares profit or loss of the business in profit sharing ratio according to their liability capacity.
The growth areas for setting start-ups are identified as the business environment; trading business like wholesale, retail, mall, exporters, importers, stock trading, real estate; industrial area could be large, medium, small or tiny sector; housing; health care; services like information services, public services, financial services, repairs, beauty parlours; training and business development; manufacturing; food; rural development like artists, handlooms, sericulture, khadi, handicraft or rural services and agriculture sector like he can work in plantation, horticulture, dairy, forestry, animal husbandry, poultry or seeds.
The Process of Starting a Start up by an Entrepreneur
- Find an opportunity
- Develop a business concept
- Figure out what success means and how to measure it
- Acquire the right resources
- Attain goals
- Launch and grow
Main Challenges faced by any Start-ups
Any start-up faces these major challenges in running the start-up like money, competition, demonstrating effectiveness, technology, trust, human resources and public relations.
WHO IS AN ENTREPRENEUR?
An entrepreneur is someone who recognizes a problem and uses entrepreneurial principles to organize, create, and manage a venture to make various changes. He is a business professional whose main goal is to create a standard business model that can be used by several companies across the board.
They tend to concentrate on bringing new ideas to life within the business market. Entrepreneur shares a pursuit of revenue generation with commercial firms but they also seek to achieve social goals such as positive human/social impact, and positive environmental impact.
Characteristics of a good Entrepreneur
- Not bound by sector norms or traditions.
- Not confined by barriers in the way of their goals.
- Develop new models and pioneer new approaches to enable them to overcome obstacles.
- Take innovative approaches to solve social issues and should keep business secrecy.
- Administrative ability and organization skills.
- Intelligence, creativity and should have clear objective.
- Emotional stable, have public relation, effective communication and technical knowledge.
- Innovative, have skills to manage everything, have a vision.
Who can be the Entrepreneur?
Anyone can be an entrepreneur whether men or women, anyone who has quality of managing things, risk bearing ability, urge to do something, have skills, thinks about growth, is innovative and positive thinker can be an enterprise. The entrepreneur should have some other qualities like:
Qualities of a good Entrepreneur
- He should be adaptive or go with the trend (mostly in case of technology).
- Have risk bearing ability.
- Should be innovative and progressive and should always think of diversification.
- Think of growth.
- Analyse the pros and cons for decision making.
- Do good planning before and after starting a venture.
- Not be afraid of failures and confident to face challenges.
- Improve his quality and should have ability to manage 5M factors, that is, men, machine, material, method and money.
- Should strive to meet the changing needs and requirements of the customers.
Types of Entrepreneur
There are majorly three types of entrepreneur which are as follows:
- Super Growth Entrepreneurs: these entrepreneurs start their business by their natural talents. They are bold, confident and are highly motivated to undertake the activities of an entrepreneurship.
- Classical Entrepreneurs: these are concerned with the customers and marketing needs through the development of self-support venture. These are survival firms without any growth rate.
- Mompreneurs: homemaker entrepreneurs are commonly known as mompreneurs. These entrepreneurs generally start working from their homes during the flexible hours of working like Lijjat Papad making.
Financial Institutions for Start-ups
To encourage the entrepreneurs, IDBI (Industrial Development Bank of India) has provided a scheme to finance the entrepreneurs at very low rate of 15% and to refinance the old small and old businesses at the concessional rate of 12.5% for male entrepreneurs and at 9% for the women entrepreneurs.
The CBI (Central Bank of India) is given contract to pass the loan of 10 Lakh rupees to the women entrepreneurs for starting a business venture but the loan is given on one condition that the idea of business should be innovative.
EDP (Entrepreneurial Development Programme)
EDP is the government programme and is a part of Start Up India Scheme. EDP helps an individual to strengthen and fulfilling their entrepreneurial skills and capabilities because it is necessary to find out the motives, behaviour and entrepreneur value.
This programme generally considered as the human resource development tool that provides the entrepreneurs the technical and managing skills.
The programme aims to remove unemployment, enhance development, promoting industrial growth. This programme is generally framed for the first generation entrepreneurs to be successful and covers majorly three variables:
- Target groups
It provides proper training to the entrepreneurs to enlarge their business and also ensures assurance of licence, requirement of finance for the business venture, providing raw material, etc.
The entrepreneurship development movement in India had received a very magnificent attention and the small manufacturing enterprises have made a demetrious growth in the three decades and had occupied a very important position in the industrial economy of India.
According to economist, entrepreneur is the one who brings resources, labour, material and other valuable resources all together to gain profit is the entrepreneur and also introduce something new changes or innovative.
Entrepreneurs play an important role in the development of society. The society has accepted the innovations of entrepreneurs like Wright Brothers. Their history of growth is unremarkable and had revolutionized the lifestyle of the society.