All About Small Businesses

The concept of small businesses

C:\Users\DHRUV SHAHRAWAT\Downloads\Pictures\p111.1









Image result for doc file logo
Download/view the

complete .doc file:







 1.

INTRODUCTION


Meaning
Small businesses are privately owned corporations, partnerships, or 
sole proprietorships that have fewer employees and/or less annual
revenue than a regular-sized business or corporation.
Businesses are defined as “small” in terms of being able to apply for
government support and qualify for preferential tax policy varies
depending on the country and industry. Small businesses surround us.
They are on every other street and in every corner. Every second thing
someone buys comes from a small business. 
Small businesses are either services or retail operations like grocery
stores, medical stores, tradespeople, bakeries and small manufacturing
units. Small businesses are independently owned organizations that
require less capital and less workforce and less or no machinery. These
businesses are ideally suited to operate on a small scale to serve a local
community and to provide profits to the company owners.
C:\Users\DHRUV SHAHRAWAT\Downloads\Pictures\p111.1



As per Indian government
According to the definition provided by the Indian government, 
a small scale business is a business set up in which the financial
commitment towards infrastructure such as building & equipment,
whether made as an owner or on rental or purchase basis, does not
surpass 1 Crores.
C:\Users\DHRUV SHAHRAWAT\Downloads\Pictures\download.png                          

2.
Types & Ideas of Small Businesses

Types
There are different types of small businesses. Like:
  • Sole proprietorship: A sole proprietorship refers to a business that

is not incorporated and has only one owner. These are typically

single-person businesses that have no plans to bring in a second owner
or additional employees.

    C:\Users\DHRUV SHAHRAWAT\Downloads\Pictures\sole.png
    • Partnership: A partnership is a formal arrangement in which two or

    more parties cooperate to manage and operate a business. Various 
    partnership arrangements are possible in which all partners might share

    liabilities and profits equally or some partners may have limited liability.

      • C Corporation: A C corporation is a business term that is used to

      distinguish this type of entity from others, as its profits are taxed

      separately from its owners under subchapter Cof the Internal Revenue
      Code.
      • S Corporation: S corporations have a “pass-through” tax liability,

      which means the business owners don’t pay taxes at the corporate

      level. Instead, profits and loss are passed through the company and
      listed on the owner’s personal tax returns. Taxes due are then paid at
      the individual level.

        • LLC: A limited liability company is a combination of a partnership

        and a corporation. It gives business owners protection from personal

        liability but doesn’t tax owners twice like a C corporation. Profits and
        losses pass through to an owner’s personal tax return.



          Ideas
          There are different ideas and kinds of small businesses, like:
          • Travel agency: A travel agency is a private retailer or public

          service that provides travel and tourism related services to the public

          on behalf of suppliers such as activities, airlines, car rentals, cruise
          lines, hotels, railways, travel insurance, and package tours.

            • YouTubing: YouTube is a hotspot for creative and talented

            individuals looking for great returns with little monetary investment.

            YouTube allows its users to create independent channels and upload
            their videos for free. In fact, it even pays some YouTubers whose
            C:\Users\DHRUV SHAHRAWAT\Downloads\Pictures\YouTube-logo-full_color.png
            channels are popular.

              • Consultanting: Consulting businesses like wedding planner,

              man-power, travel etc. are quite popular.

                • Photography: Photography is the art, application and practice of

                creating durable images by recording light or other electromagnetic

                radiation, either electronically by means of an image sensor, or
                chemically by means of a light-sensitive material such as
                photographic film. 

                  • Street-side selling: We can setup a street-side vendor or stall

                  where we can sell vegetables, fruits, food, raw meat, books,

                  beauty products, clothes, drinks etc. We can also establish
                  vehicle repairing, tailoring, gadget repairing, ironing, laundry,
                  pottery, gardening, hairdressing, ear-cleaning, facial hair
                  cleaning (also known as hajjaam in India) etc. services too.

                      

                     

                    • Online services: People can provide online services which is

                    a good-earning source nowadays. Services like online teaching,

                    training, consultation, religious practices, IT solutions, blogging
                    etc.

                      • Teaching: Qualified people who have good teaching skills,

                      can setup a coaching academy, tuition class or teaching
                      room.

                        • Using vehicles: People can use vehicles to run their

                        businesses. They can give their vehicles on rental, run
                        transport service etc. They can even sell their products like
                        books, clothing, food etc. on the vehicles (preferably mini
                        trucks and vans).




                        • Restaurant, bar, kiosks, stall and tiffin service: People can go for

                        bakery establishing restaurants and bars on a small-scale (worth
                        not more than 1 Crores. Also, tiffin services are also booming
                        these days, where we can provide consumers food in tiffin (that
                        should be usually cheap) and then later, we need to collect the
                        tiffin back for reuse. Kiosks having juices, food joints, tailoring,
                        bakery services etc. or selling products through them are quite
                        cheaper.


                        C:\Users\DHRUV SHAHRAWAT\Downloads\Pictures\aarpanint2.png

                         

                        • Influencing: Becoming a ‘Influencer’ is quite popular these days.

                        Influencer marketing is a form of marketing in which focus is placed

                        on influential people rather than the target market as a whole on
                        social media. Instagram, Quora, Twitter, and Facebook are common
                        social media platforms for it.

                          C:\Users\DHRUV SHAHRAWAT\Downloads\Pictures\1_g-cLxDjYRVjVjaWM54hoIA.jpeg

                          • Manufacturing: People can establish small-scale units and

                          production factories to provide services like
                          wedding/visiting card making, banner/
                          pamphlet making, use-and-throw pen
                          making etc.

                          C:\Users\DHRUV SHAHRAWAT\Downloads\Pictures\product-500x500.jpeg  

                          • Shops and stores: People can open their own shops or stores to

                          sell goods and services. For example; barber shops, grocery store,
                          pharmacy etc.


                            C:\Users\DHRUV SHAHRAWAT\Downloads\Pictures\1911435577835_3.png


                            And the list is endless.


                            3.

                            Nature & Role of Small Businesses


                            Nature

                            The nature of business can be explained in four points:

                            • The business is organised by individuals in the private sector.
                            • The use of family labour and locally available talent is made.
                            • Simple equipments are used.
                            • Capital investment is small, generally restricted to one crore.
                            • The use of indigenous technology.
                            C:\Users\DHRUV SHAHRAWAT\Downloads\Pictures\download (1).png

                            Role
                            Role of Small Business in India:
                            • Limited resources are used.
                            • Flexibility of operation should be maintained.
                            • Personal attention should be given.
                            • Individual attitude is required.
                            • Act as suppliers of large scale business.
                            • Look upon social utility
                            • Provide benefits in remote areas.
                            • Increase employment
                            • Improves economic condition.
                            • Promotion of artistic and creative sense.
                            • Rural development
                            • Mobilization of local resources.

                            C:\Users\DHRUV SHAHRAWAT\Downloads\Pictures\images.png

                            Administrative Setup
                            Agro and Rural Industries
                            • The government of India created the Ministry of small scale

                            industry and Agro and Rural Industries as the nodal ministry for

                            formulation of policy.

                            • This ministry was divided into following two separate ministries in

                            September 2001, Ministry of Small Scale Industries.


                              Ministry of Agro and Rural Industries
                              • A part from the ministries state government also makes various

                              promotional and development Projects for SSI and then are executed.


                              4.

                              Problems & Schemes


                              Problems

                              • Shortage of Fund: Small enterprises have a chronic shortage of

                              finance both for fixed and working capital requirement.




                                • Shortage of Raw Materials and Power: Most of the small factories

                                have shortage of raw materials and other equipments because of

                                limited means to buy in bulk and suppliers hesitate to provide credit
                                policy (facility) to small business.



                                  • Old Techniques of Production and Lack of Latest Technical

                                  Knowledge: Most of the small scale enterprise use old techniques of

                                  production because they cannot afford new technique.



                                    • Marketing Problems: Small scale industries face many difficulties

                                    in marketing their products because of many reasons like the cost of
                                    production is high, they cannot afford to have their own marketing
                                    organization, products of many small firms are not having uniform
                                    quality etc.


                                    C:\Users\DHRUV SHAHRAWAT\Downloads\Pictures\10problems.gif

                                      • Personal Problem: Securing the right type of personal is a major

                                      problem of small business. A more important problem is the problem of

                                      proper training reasonable compensation etc.

                                      • In perfect Organizational Setup: In most of the small enterprise

                                      the ownership and management functions are performed by the owner

                                      himself. Generally the owners may not have the necessary skill to
                                      manage the business also.


                                        Schemes and actions by Indian government and others

                                        . Government Assistance and Special Schemes for Industries in Rural,
                                        backward and hilly areas. Some of the support measures and
                                        programmes meant for the promotion of small businesses:
                                        • National Bank for Agriculture and Rural Development (NABARD):

                                        The NABARD provides loans and advances to State Government for

                                        a period not exceeding 20 years to enable to State Government.




                                          • The Rural Small Business Development Centre (RSBDC): It is set

                                          up by the World Association for Small and Medium Enterprises and is

                                          sponsored by NABARD. It aims at providing management and
                                          technical support to current and prospective micro and small
                                          entrepreneurs in rural areas.

                                            • National Small Industries Corporation (): Its main focus was on to

                                            supply indigenous and imported machines in easy instalments, to

                                            procure and supply imported raw materials and to export of products
                                            of SSI.
                                            C:\Users\DHRUV SHAHRAWAT\Downloads\Pictures\National_Small_Industries_Corporation_logo.png

                                            • Small Industries Development Bank of India (SIDBI): SIDBI was

                                            established as a public corporation. Its main object is to promote.

                                            Finance and develop the small scale sector in India.



                                              • The National Commission for Enterprises in the Unorganised

                                              Sector (NCEDS): The NCEUS was constituted in September 2004,

                                              with the objectives to improve productivity of small scale enterprises
                                              and to generate more employment opportunities.



                                                • Rural and Women Entrepreneurship Development (RWED):This

                                                programme encourages rural people and women RWED provides the

                                                enhancing human and institutional capacities. Also, providing training
                                                for women entrepreneurs.



                                                  • Prime Minister Rozgar Yojana, Training of Rural Youth for

                                                  self-employment, Jawahar Rozgar Yojana etc. were also made.

                                                  • Scheme of Fund for Regeneration of Traditional Industries

                                                  (SFURTI): This fund is used to improve the technology of traditional

                                                  units, to create sustained employment opportunities, to set up
                                                  traditional industries in various parts of the country etc.



                                                    • The District Industries Centre (DIC): The DIC Programme was

                                                    started around 1978 to provide assistance to small scale industries at

                                                    the district level. These centres provides all the promotional activities
                                                    such as identification of suitable scheme preparation of feasibility
                                                    report arranging for credit etc.




                                                      5.
                                                      Examples & Case Studies

                                                      Case studies
                                                      1. Twist Mobile: Vinod Khutal grew up near Indore and studied architecture,

                                                      before studying computer science. An ad by game developer Gameloft on

                                                      Naukri.com led him to a job in their Hyderabad office, where he eventually
                                                      became a game designer. In 2009, he founded Twist Mobile, with apps such
                                                      as Age Effect. He tied up with VServ to use their app-wrapper technology for
                                                      ads embedded in apps. Success stories included becoming the first Asian
                                                      company with 10 million downloads on Noki’s Ovi store. “Today’s killer app is
                                                      tomorrow’s delete,” says Khutal, who has now branched out into Android and
                                                      iPhone apps.

                                                        1. MakeMyTrip: Brainchild of Deep Kalra, an IIM Ahmedabad alumnus,

                                                        MakeMyTrip has revolutionized the travel industry over the years. It was

                                                        originally launched in the US market in 2000 to cater to the needs of NRIs for
                                                        their Indo-American trips. It launched its operations in India in 2005, starting
                                                        with flight tickets. After a few years, MakeMyTrip got listed in NASDAQ and in
                                                        the next year went on to make 3 acquisitions. It has got worldwide recognition
                                                        and innumerable rewards.



                                                          1. Zomato: Launched in 2008, Zomato hasn’t been anything less of a

                                                          sensation. It covers over 331,200 restaurants in 19 countries. Started as

                                                          Foodiebay.com, in two years, it was named the most promising internet
                                                          companies in India. In another two years, it went on to get international
                                                          recognition.Deepinder Goyal and Pankaj Chaddah, the co-founders always
                                                          wanted to create their own path, a path with its own obstacles. Zomato had
                                                          no funding initially, their growth was excruciatingly slow. However, tables
                                                          turned very soon and it made Zomato what it is now.



                                                            1. Teach For India: A non-profit organization under the Teach For All global

                                                            movement, Teach For India works towards ensuring excellent education for all

                                                            children. Founded by Shaheen Mistri in 2007, TFI exists because of a deep
                                                            belief that every child can and must attain an excellent education. For the
                                                            same, TFI has a fellowship, wherein it recruits college graduates and young
                                                            professionals to serve as full-time teachers in low-income schools for two years.
                                                            Today, Teach For India is present in 7 cities and have 910 Fellows and 660
                                                            Alumni working towards eliminating educational inequity.

                                                              1. FreeCharge: An e-commerce website, FreeCharge was founded in 2010

                                                              by Kunal Shah and Sandeep Tandon. It has made mobile recharge free by

                                                              offering equal value back to the customers in form of retailers’ coupons. It’s
                                                              success to be credited to the fact that it’s a win-win situation for both the
                                                              customers and the retailers. Like any start-up, there were many hurdles that
                                                              FreeCharge had to face- everyone thought that it was too good to be true and
                                                              weren’t too serious about it.Some retailers felt that the concept of ‘free’ would
                                                              harm their brand.



                                                                And there are many more examples.



                                                                6.
                                                                Conclusion & end note

                                                                Conclusion
                                                                Small businesses are really effective in terms of running and output if
                                                                it is chosen and established well. There might be various
                                                                disadvantages and problems with it, but there are also preventions,
                                                                schemes and guidance given by Indian government and other
                                                                sources. Definition of small businesses might not be same all
                                                                around the world as different countries have different norms and
                                                                rules. There are many advantages of it.


                                                                End note
                                                                This project does not have any intention to hurt or make statements
                                                                against any organization, scheme, policy or anything. Information
                                                                provided in it was taken from the internet and NCERT’s Business
                                                                Studies book for class 11.

                                                                DHRUV SHAHRAWAT

                                                                Content Writer, Author, Founder

                                                                http://theprofoundreport.com/

                                                                Leave a Reply

                                                                Your email address will not be published. Required fields are marked *

                                                                Ads Blocker Image Powered by Code Help Pro

                                                                Ads Blocker Detected :-(

                                                                We have detected that you might be using an ablocker. Advertisements on this website are monitored and controlled in such a way that they are based on your preferences and not affect the reading experience. Considering we always strive to keep the website content free always, we request you to turn the adblocker off since its the only source of revenue. Sincere apologies for this discomfort.

                                                                If you think this is an error, report at dhruvshahrawat@gmail.com.

                                                                Powered By
                                                                100% Free SEO Tools - Tool Kits PRO