Entrepreneurship Development and Small Business Enterprise 8177582607, 9788177582604


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Table of contents :
Cover
About the Author
Preface
Acknowledgements
Contents
Chapter 1: Modern Small Business Enterprises
Role of Small-scale Industries
Impact of Globalisation on SSI in India
Impact of the WTO on SSIs
WTO: Pros and Cons
Concepts and Definitions of SSI
Calculation of the Value of the Plant and Machinery
Government Policy and Development of the Small-scale Sector in India
Industrial Policy 1991
Policy Initiatives Since 1999
Growth and Performance of Small Scale Industries in India
Pre-and Post-liberalisation Periods
Performance of Small-scale Industries in India
Share of Small-scale Industrial Units in Total Exports
Third All India Census of SSI Sector
Small and Medium Enterprises (SME) in Other Countries
International SME Network (lNSME)-Background
Composition of INSME Steering Group
Definitions of SMEs in Various Countries
Problems for Small-scale Industries
Prospects of the Small-scale Industries in a Free Economy
Quality Control
Marketing Arrangements
Advertisement
Recovery of Receivables
Professionalism in Management
Inventory Control
Opportunities
Summary
Key Words
Exercises
References
Annexure 1.1
Annexure 1.2
Chapter 2: Entrepreneurship
Importance of Entrepreneurship
Charms of Being an Entrepreneur
Why Should You Become an Entrepreneur?
Concepts of Entrepreneurship
Various Definitions of an Entrepreneur
Entrepreneurial Development Process
Characteristics of a Successful Entrepreneur
Classification of Entrepreneurs
(a) Based on Functional Characteristics
(b) Based on the Developmental Angle
(c) Based on Types of Entrepreneurial Business
(d) Based on the Nine Personality Types of Entrepreneurs
(e) Based on Schools of thought on Entrepreneurship
Myths of Entrepreneurship
Entrepreneurial Development Models
(a) Psychological Models
(b) Sociological Models
(e) Integrated Models
Problems Faced by Entrepreneurs and Capacity Building for Entrepreneurship
Internal Problems of Entrepreneurs
External Problems of Entrepreneurs
Specific Management Problems
Capacity Building for Entrepreneurship
Profiles of Successful Entrepreneurs
Rags to Riches-Dhirubhai Ambani
The Nirma Story-The Saga of Karsanbhai Patel
Business opportunity identification
The King of Omega-3-P.J. ). Kunjachan
Summary
Key Words
Case Studies
Exercises
References
Chapter 3: Women Entrepreneurs
Women Entrepreneurship Defined
Definition
Importance of Women Entrepreneurs
Factors Influencing Women Entrepreneurs
Women Entrepreneurship in Asia
Women Entrepreneurs in India
Women Entrepreneurship Environment
Status of Women Entrepreneurs
Challenges in the Path of Women Entrepreneurship
Lack of Confidence
Problems of Finance and Working Capital
Socio-cultural Barriers
Production Problems
Inefficient Marketing Arrangements
Strategies for the Development of Women Entrepreneurs
Empowerment of Women by Entrepreneurship
Grassroot Entrepreneurship through Self-help Groups (SHGs)
How do SHGs Work?
The SHG System
Various SHG Activities to Promote Entrepreneurship
Institutions Supporting Women Entrepreneurship in India
Consortium of Women Entrepreneurs of India (CWEI)
Federation of Indian Women Entrepreneurs (FIWE)
Federation of Ladies' Organisation (FLO)
Women's India Trust (WIT)
Cent Kalyani of Central Bank of India Credit Schemes
National Bank for Agriculture and Rural Development (NABARD)
State Government Schemes for Development of Women and Children in Rural Areas (DWCRA)
Small Industries Development Bank of India (SIDBI)
Self-Employed Women Association (SEWA)
Association of Women Entrepreneurs of Karnataka (AWAKE)
Women Entrepreneurs in India
Profiles of Successful Women Entrepreneurs
Kiran Mazumdar Shaw
Shahnaz Hussain
Ritu Kumar
Women's Organisations Supporting Women's Entrepreneurship
Shri Mahila Griha Udyog Lijjal Papad
Mahila Bunkar Sahakari Samiti
SABALA: Crafting Exports of Indian Handicrafts
Importance of the Indian handicraft industry
Summary
Key Words
Case Studies
References
Chapter 4: Institutions Supporting Small Business Enterprises
Introduction
Central Level Institutions
1. Small·scale Industries Board (SSI Board)
2. Khadi and Village Industries Commission (KVIC)
3. Small Industries Development Organisation (SIDO)
Institutional network
Services provided by SIDO
SIDO schemes
4. National Small Industries Corporation Ltd. (NSIC)
(a) Machinery and Equipment (Hire-Purchase Scheme)
(b) Machinery and Equipment (Lease Scheme)
(c) Financial Assistance Scheme
(d) Assistance for Procurement of Raw Material
(e) Marketing Assistance
(f) Government Store Purchase Programme
(g) Technology Transfer Centre (TTC)
5. The National Science and Technology Entrepreneurship Development Board (NSTEDB)
6. National Productivity Council (NPC)
7. National Institute for Small Industry Extension and Training (NISIET)
8. National Institute for Entrepreneurship and Small Business Development (NIESBUD)
9. Indian Institute of Entrepreneurship (IIE)
Objectives
10. Entrepreneurship Development Institute of India (EDII)
State Level institutions
1. Directorate of Industries (DIs)
2. District Industries Centres (DICs)
3. State Financial Corporations (SFCs)
4. State Industrial Development/Investment Corporation (SIDCs/SIICs)
5. State Small Industrial Development Corporations (SSIDCs)
Other Agencies
1. National Bank for Agricultural and Rural Development (NABARD)
2. Housing and Urban Development Corporation Ltd. (HUDCO)
3. Technical Consultancy Organisations (TCOs)
4. Non-governmental Organisations (NGOs)
Sub-contract Exchanges Set up By NGOs
Launching of Scheme
Setting up of SCXs by Industrial Associations
Quantum of Assistance Provided
Sub-contract Exchanges for Ancillary Development
Testing Centres Set up by NGOs
5. Small Industries Development Bank of India (SIDBI)
Origin and Objectives
Domain of service
Channels of assistance
Development and support services
EDPs of SIDBI
6. Scheme of Micro Finance Programme
Salient features of Micro-Finance programme
7. Export Promotion Councils (EPCs)
Industry Associations
1. Confederation of Indian Industry (CII)
2. Federation of Indian Chambers of Commerce and Industry (FICCI)
3. PHD Chamber of Commerce and Industry (PHDCCI)
4. Associated Chamber of Commerce and Industry of India (ASSOCHAM)
5. Federation of Indian Exporters Organisation (FIEO)
6. World Association for Small and Medium Enterprises (WASME)
7. Federation of Associations of Small Industries of India (FASII)
8. Laghu Udyog Bharati (LUB)
9. Indian Council of Small Industries (lCSI)
10. Council of Scientific and Industrial Research (CSIR)
11. Venture Capital
Summary
Key Words
Exercises
References
Annexure 4.1
Chapter 5: Setting Up a Small Business Enterprise
Identifying the Business Opportunity
Business Opportunities in Various Sectors
Green Business
Biotechnology
Events Management
IT Enabled Services
Food, Fruits and Vegetables Processing, Refrigeration, and Transportation
Mineral Water
Courier Services
Insurance Sector
Telecommunication
Herbal Sector
Tourism Sector
Vermiculture
Plastic
Fonnalities for Setting Up of a Small Business Enterprise
1. Selection of a Project
(a) Product or Service Selection
(b) Location Selection
(e) Project Feasibility study
(d) Business Plan Preparation
(e) Project profile
2. Decide on the Constitution
(a) Sole Proprietorship
(b) Partnerships
(c) Corporation/Limited company
(d) Cooperatives
(e) Franchising
3. Registration
Obtain SSI Registration
Provisional Reg;stration Certificate (PRC)
Registration Formalities
Permanent Registration Certificate (PMT)
Registration Formalities
Registering an SSI Unit
Benefits of Registering
Objectives of the Registration Scheme
Features of the Registration Scheme
Basis of Evaluation
4. Clearances from Specific Departments
5. Arrange for Land/Shed
Industrial shed
Application formalities
6. Arrange for Plant and Machinery
Direct Purchase
NSIC Hire Purchase Scheme
Process Selection
Raw Materials
Machinery and Equipments
Value of Machines
Earnest Money
Administrative Charge
Period of Repayment
Gestation Period
7. Arrange for Infrastructure
Land and Construction of Building
Getting the Utility Connections
8. Prepare Project Report
9. Apply and Obtain Finance
Means of Finance
Arranging Finance
10. Implement the Project and Obtain Final Clearances
Construct Shed
Environment Pollution Related Clearances
Summary
Key Words
Exercises
References
Annexure 5.1: Business Plan
Annexure 5.2: Project Profile
Annexure 5.3
Annexure 5.4
Chapter 6: Family Business
Importance of Family Business
Family Business Defined
Various Types of Family businesses
The "3-Circle" Model of Family Business
Family Business System Governance
Family business system governance structures
Governance of the family business
History of the Family Business
Primary Benefits
Responsibilities and Rights of Family Shareholders of a Family Business
Succession in Family Business
Trends in the Growth of Successors in Family Businesses
First Family Succession Plan, Then Business Succession Plan
Family-first Business or Business-first Family
Succession Management
Business Valuation
Buy/Sell agreemfents
Succession Planning Obstacles in Family Businesses
Fairness equals performance expectations
Succession-Three Ways to Ease Transition
Pitfalls of the Family Business
Sibling Rivalry in Family Bussinesses: Key Issues
Coping Approaches
Arbitrary approach
Managed approach
Defusing Tensions
Strategies for Improving the Capability of a Family Business
Improving Family Business Performance
Concept of "Core Business Values"
Critical Core Business Values Impacting Family Business Performance
Training
How to Overcome Nepotism in Family Businesses
Management Development Plan in Family Business
Who Should Create the Plan?
Typical Agenda Items
Creating the Plan
Family Reunion Games Promote Family Values
How to Save the Family Business
Rule I: Formulale Policy Framework and Rules
Rule II: Families Must Serve the Business
Rule III: Future Outlook
Rule IV: Accountability
Rule V: Addressing the Issue
Rule VI: Creating Shared Vision
Seasonal Nature of the Business
Surplus or Non-operating Assets
Partial Interests and Fractional Interests
Environmental Problems-Your Worst Nightmare
Contingency Plan-for an Uncertain Future
Summary
Key Words
Case Studies
References
Chapter 7: Sickness in Small Business Enterprises
Definition of Sickness and Status of Sickness of SSIs in India
Present Status of Sickness of SSIs in India
Magnitude of Sickness in the SSI Sector in Country
Highlights of Third All-India Census on Sickness in SSI
Criteria to Identify Sicknessllncipient Sickness
Magnitude of Sickness/Incipient Sickness
Causes for Sicknessllncipient Sickness in SSI
Exogenous Factors
Endogenous Factors
Finance Management
Symptoms of Sickness
Cures for SSIs' Sickness
Rehabilitation
Viability of a Sick Unit
Working Group on Rehabilitation of Sick Units
Case Studies
Summary
Key Words
Exercises
References
Chapter 8: Strategic Management in Small Business
Organisation Life Cycle
Start-up Stage
Expansion Stage
Consolidation Stage
Revival Stage
Decline Stage
Turning the Venture Around
Organisational Renewal Cycle
Strategic Management
Strategic Planning: The Challenge
Benefits of Strategic Planning
The Essence of Business Ethics
Case Study
Summary
Key Words
Exercises
References
Worksheet 8.1: Review the Organisation's Present Situation
Worksheet 8.2: History of the Organisation
Worksheet 8.3: Essence of Founders
Worksheet 8.4: Assess Your Strengths and Weaknesses
Worksheet 8.5: Conduct an Environmental Scan
Worksheet 8.6: Conduct Customer's and Competition Analysis
Worksheet 8.7: Scale for Swot
Worksheet 8.8: Assess Swot
Worksheet 8.9: Critical Issues or Choices that You Face Regarding the Future
Chapter 9: Financial Management in Small Business
Importance of Financial Management
Functions of Financial Management
Working Capital Management
Estimating Working Capital - A Simplified Approach
Valuation of Stock-in-Trade
Cost Formulas
Working Capital Schemes
Accounting and Book Keeping
The Accounting Process
Types of Books of Accounts
Specimens of Essential Books
a. Purchase Book
b. Sales Book
c. Cash Book
d. Journal
E. Ledger
Financial Statements
Balance Sheet
Features of balance sheet
Various accounts of balance sheet
Profit and Loss Account
How does a profit and loss account look
Cash Flow Statement
Financial Ratio Analysis
1. Return on Investment (ROI) Ratios
2. Solvency Ratios
3. Liquidity Ratios
4. Turnover Ratios
5. Profitability Ratios
6. Du Pont Analysis
7. Capital Market Ratios
Summary
Key Words
Exercises
References
Chapter 10: Marketing Management in Small Business
Importance of Marketing
Definition
Common Marketing Problems Faced by Small-scale Industries
Marketing Process
Customer Relationship Management (CRM)
Market Segmentation
Market Research
Marketing Mix
Product
Promotion
Price
Place
Marketing of Services
India's Growing Services Sector
Differences between Goods and Services Marketing
Key Success Factors in Services Marketing
Export Marketing
Foreign Trade (Development and Regulation) Act, 1992
Foreign Exchange for Export Promotion
Foreign Industrial and Technology Agreement
(i) Outright (Sale) exports
(ii) Consignment exports
Export Incentive Schemes
Procedural Simplification
New Markets
Sources of Finance
Prp-shipment finance
Post-shipment finance
Market Segmentation
Market Research
Product Characteristics
Export Pricing
Distribution Channel
Working Document
Procedures, Formalities, and Documentation
Obligations
Facilities and benefits
Applications and application forms
Pre-shipment formalities
Submission of documents to bank
Organisational Export Assistance
1. Policy and service support organisation
2. Commodity specilisation institutions
3. Training and rpsearch institutions
4. Trading/service corporations
5. Financial institutions
6. Export promotion zones (EPZs)
Indian Exporter's Directory
Summary
Key Words
Case Studies
References
Annexure 10.1: Salient Features of Export-Import Policy for the Small-Scale Sector
Chapter 11: Production Management in Small Business
Production Management
Plant Layout
Production Planning and Control (PPC)
Phases in PPC Function
1. Planning phase
2. Action phase
3. Control phase
Materials Management
Inventory Management
Inventory Costs
Inventory Control Techniques
Benefits of Inventory Control
Tips for Stock Keeping
Productivity
Improving Materials Productivity
Improving Labour Productivity
Cutting machine time
Handling, material on and off machines
Workplace layout
Working conditions
Equipment
New investment
Choosing new machines
Maintenance
Break-Even Analysis
Types of Cost
Break-even Point
Ways to lower break-even
Total Quality Management
"Quality" Defined
Managing for Quality
Total Quality Management
Quality Improvement Tools
Quality Systems
Quality Management Principles
Requirements of Quality Management System
(1) General
(2) Process Model
(3) Compatibility with other Management Systems
Quality Management Systems-Requirements
Steps to Certification Under
Environmental Management System
ISO 14000
Benefits of Environmental Management System
ISO 14001
Environmental Management Systems-Requirements
Summary
Key Words
Exercises
References
Chapter 12: Human Resource Management in Small Business
Importance of Human Resource Management
Functions of Human Resource Development
Human Resource Development
Industrial Relations. Labour Laws, and Environmental and Pollution Control Laws
1. Laws Regulating the Conditions of Work in Factories and Establishments
The Factoms Act, 1948
Special Provisions/or Industries involving Hazardous Processes
2. Laws Relating to Wages
Minimum Wages Act, 1948
Payment of Wages Act, 1936
3. Law Relating to Social Security Measures
Workmen's Compensation Act, 1923
Employees' State Insurance Act, 1948
Employus' Provident Fund and the Family Pension Act, 1952
4. Laws Relating to Workers' Associations and Disputes
Trade Union Act 1926
Industrial Disputes Act, 1947
5. Law Relating to Women and Child Workers
6. Laws Relating to Environment and Pollution Control
Water (Prevention and Control of Pollution) Act, 1974
Air (Prevention and Control of Pollution) Act, 1981
Environment (Protection) Act, 1986
Scope and Scheme
Summary
Key Words
Exercises
Case Studies
References
Index
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ENTREPRENEURSHIP D EVELOPMENT AND

SMAll B USINESS ENTERPRISES

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ENTREPRENEURSHIP D EVELOPMENT AND S MALL B USINESS ENTERPRISES

Poomima M Charantimath Professor, Management Studies K.LS Institute of Management Education and Research (lMER) Belgaum, India

PEARSON

Copyright © 2006 Dorling Kindersley (India) Pvt. Ltd. Licensees of Pearson Education in South Asia No part of this eBook may be used or reproduced in any manner whatsoever without the publisher’s prior written consent. This eBook may or may not include all assets that were part of the print version. The publisher reserves the right to remove any material present in this eBook at any time. ISBN 9788177582604 eISBN 9789332509535 Head Office: A-8(A), Sector 62, Knowledge Boulevard, 7th Floor, NOIDA 201 309, India Registered Office: 11 Local Shopping Centre, Panchsheel Park, New Delhi 110 017, India

About the Author Dr Poornima M Charantimath, Professor, Management Studies, KLS Institute of Management Education and Research (IMER), Belgaum. is a postgraduate in Management Studies from the Soulh London University. United Kingdom . She also holds a Bachelor's degree in engi neering and has obtained her Ph.D. in the area of Supply Chain Management. She was formerly Deputy Director (Education), Indian Institute of Materials Management, Bangalore. Dr Charantimath has a rich experience of 23 years in teaching. research. administration, and consultancy. She has authored two books and has numerous research papers to her credit.

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Preface The objectives of achieving sustained industrial development, regional growth, and employment generation have always depended on entrepreneurial development and small small·scale industry. Economic refonn and the process of Iiberalisation since 1991 , while creating lremendOllS opportunities,

have created new challenges relating to competitive strengths, technology upgradation, quality

improvement. and productivity.

I am happy to place Enlrepreneurship Development and Small Business Enterprises before students. teachers, management consultants, budding entrepreneurs and other readers interested in lOOay's world of small business development and management. The inspiration to write this book came from my MBA teaching experience, where 1 encountered both the views of entrepreneurs as well as the demand for such a book from the academic fraternity.

Focus This book is mainly written for the students and instructors of business school. The idea is that improvements can best come from creative thinking by the entrepreneur about hislher own enterprise, which motivate the entrepreneur to take action to improve his business. This book will also be useful for trainers who suppol1 entrepreneurship development during seminars and workshops.

Organisation of the Book The book can be said to be divided into two parts. The first pan covers entrepreneurship development and the second pan covers management of small business enterprises. The two partS are organized into 12 chapters. The first is Entrepreneurship Development that covers Entrepreneurship, Women Entrepreneur and Family Business. The second relates to the Management of Small Business Enterprise that includes Modem Small Business Enterprises,Institutions Suppol1ing Small Business Enterprises, Setting Up a Small Business Enterprise, Sickness in Small Business Enterprises, Strategic Management in Small Business Enterprise, Managing Finance, Marketing. Production. Quality and Human Resource Management in Small Business .

Unique to this Book • Stud~nl C~ntric: Classroom simulative. Written in a simple lucid language. • Cas~ Study C~ntric: Real life cases are written in the Indian context for discussion and analysis. • Industry.lnslitute Interface: Enriched by my own indusuial experience. the concepts are linked to real life situations, bringing integration between industry and institute. • Cov~rag~: A thorough coverage of conceptual framework on entrepreneurship development and management of small business enterprises. Apan from modem enterprises. cottage and village industries are also extensively covered.

I

viii

Preface

• Self· uarning Exercises: Many exercises at the end of chapters for self-assess ment and development.

Unique Pedagogical Features

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ACKNOWLEDGEMENTS I thanlj: all those who have helped. encouraged and supported me all through this project. My institution. Kamataka Law Society; Institute of Management Education and Research and its management; my publishers. Pearson Education and their editorial team; and the panel of reviewers for their constructive suggestions. which has added value to this book. I also thank all the entrepreneurs. who have contributed by giving the required information. I thank my colleagues. student friends and my immediate fami ly. my husband Manoj Charantimath and my son Amit for their support.

Feedback Suggestions. reviews. comments and observations from the readers are most welcome in an effort to improve later editions of this book. Please contact me [email protected]. POORNIMA

M

CHARANTIMATH

Contents About the Author

Preface

vjj

1. Modern Small Business Enterprises

1

Role of Small-scale Industries 2 Concepts and Defi nitions of S5 l 7 Government Policy and Development of the Small-scale Sector in India 10 Gro wth and Performance of Small Scale Industries in India J3 Third All India Census of 55. Sector / 9 Small and Medium Enterprises (5ME) in Other Countries 27 Problems for Small-scale Industries 31 Prospects o f the Small-scale Industries in a Free Economy 33 Summary 36 Key Word.)' 36

uercises 37 References 37 Annexure 1.1 4/ Annexure 1.2 45

2. Entrepreneurship Importance of Entrepreneurship 49 Concepts of Entrepreneurship 5 J Characteristics of a Successfu l Entrepreneur 53 Classifi cation of Entrepreneurs 63 Myths of Entrepreneurship 72 Entrepreneurial Development Models 74 Problems Faced by Entrepreneurs and Capacity Building for Entrepreneurship 78 Profil es of Successfu l Entrepreneurs 87 Summary 9 / Key Words 92

48

I

xii

Contents

Case Studies 92 Exercises 94 Referenct!s 96

3. Women Entrepreneurs

98

Women Entrepreneurship Defined 99 Women Entrepreneurship Environment 104 t;hallenges in the Path of Women Entrepreneurship 106 Strategies for the Development of Women Entrepreneurs 107 Empowerment of Women by Entrepreneurship 110 Grassroot Entrepreneurship through Self-help Groups (SHGs) III Institutions Supporti ng Women Entrepreneurship in India 115 Women Entrepreneurs in India 126 Profiles of Successful Women Entrepreneurs 129 Women 's Organisations Supporting Women 's Entrepreneurship 132 Summary )38 Key Words 139 Case Studies 139 References 143

4. Institutions Supporting Small Business Enterprises Introduction 146

145

Central leve l Institutions 147 State level institutions 164 Other Agencies 166 Industry Associations 174 Summary 183 Key Words 184 Exercises 185 References 185 Annexure 4. 1 187

5. Setting Up a Small Business Enterprise Identifying the Business Opportunity 208 Business Opportunities in Various Sectors 209 Fonnalities for Setting Up of a Small Business Enterprise 2 14 Environment Pollution Related Clearances 260 Summary 26) Key Words 261

207

xiii

Contents

Exercises 262 References 263 Annexure 5.1 265 Annexure 5.2 279 Annexure 5.3 283 Annexure 5.4 284

I

6. Family Business

285

7. Sickness in Small Business Enterprises

330

Importance of Family Business 286 Various Types of Family businesses 290 History of the Family Business 293 Responsibilities and Rights of Family Shareholders of a Family Business 295 Succession in Family Business 296 Pitfalls of the Family Business 304 Strategies for Improving the Capability of a Family Business 309 Improving Family Business Performance 310 How to Overcome Nepotism in Family Businesses 3JJ Management Development Plan in Family Business 312 Family Reunion Games Promote Family Values 314 How to Save the Family Business 317 Seasonal Nature of the Business 322 Summary 325 Key Words 326 Case Studies 326 References 328

Definition of Sickness and Status of Sickness of SSIs in India 331 Highlights of Third All-India Census on Sickness in SSI 332 Criteria to Identify Sicknessllncipient Sickness 334 Causes for Sicknessllncipient Sickness in SSI 334 Symptoms of Sickness 337 Cures for SSIs' Sickness 337 Case Studies 344 Summary 360 Key Words 360 Exercises 361 References 361

I'"

Conlen!.

8. Strategic Management in Small Business

363

Organisation Life Cycle 364 Strategic Management 368 The Essence of Business Ethics 373 Summary 378

KqWords 379

Exercises 379 References 380 Worksheet 8. J 382 Worksheet 8.2 382 WorksheetS.3 382 Worksheet 8.4 383 Worksheet 8.5 384 Worksheet 8.6 385 Worksheet 8. 7 385 Worksheet 8.8 386 Worksheet 8. 9 387

9. Financial Management in Small Business Importance of Financial Management 389

388

Working Capital Management 391 Accounting and Book Keeping 398 Financial Statements 402 Financial Ratio Analysis 415 Summary 418 Key Words 4/9 Exercises 4 J9 References 420

10. Marketing Management in Small Business Importance of Marketing 422 Customer Relationship Management (CRM) 424 Marketing of Services 43 J Export Marketing 434 Summary 446 Key Words 446 Case Studies 447 References 449 Annexurr 10.1 450

421

Conu:ntl

11. Production Management in Small Business

453

Production Management 454 Materials Management 458 Productivity 465 Break-Even Analysis 473 Tow Quality Management 476 Environmental Management System 486 Summary 489

Key Words 490 Exercises 490 References 491

12. Human Resource Management in Small Business

493

Importance of Human Resource Management 494 Human Resource Development 495 Industrial Relations. Labour Laws, and Environmental and Pollution Control Laws 499 Summary 514 Key Words 515 Exercises 515 Case Studies 516 References 516

Index

518

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Modern Small Business Enterprises

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