CHAPTER-1

INTRODUCTION
1.1 ENTREPRENEUR& ENTREPRENEURSHIP
Entrepreneur is an individual who rather than working as an employee, runs a small
business and assumes all the risk and reward of the given business venture, idea or goods &
services offered for sale. Usually, the entrepreneur is seen as a business leader and innovator
of new ideas and business processes. Entrepreneurs play a key role in the economy. These are
the people who have the skills and initiative necessary to take new ideas to market and make
the right decisions to make the idea profitable. The reward for the risks taken is the potential
economic profits the entrepreneur could earn.
Entrepreneurship is the process of identifying and starting a business venture,
sourcing & organizing the required resources and taking both the risks and rewards
associated with the venture. A new business started by an entrepreneur is referred as a startup company.

1.2 COMPETENCIES OF ENTREPRENEURS

1. Organization and planning: setting and attaining goals, managing time commitments,
and keeping work schedules.
2. Handling money: determining budgets, securing loans, raising funds, keeping
financial records, and completing income tax forms.
3. Selling ideas and products: determining sales quotas and projections; presenting
projects for committees, organizations and/or administrative groups; direct selling to
customers or clientele; handling criticism and rejection.
4. Management: experience in managing all or part of a small business or an agency,
serving as director or major officer of an organization.
5. Working with people: mediating or arbitrating between people with opposing views
when the situation requires; organizing and planning large public events; assuming

officer or executive secretary positions in an organization, and/or handling complaints

for an organization or company; getting along well with most people.
6. Ability to take risks: taking moderate, calculated risks in varied situations (situations
where the chance of winning was not so small as to be a gamble or so large as to be
a sure thing situations where there was a reasonable and challenging chance of
success).
7. Willingness to lead and to work alone: being self-disciplined; handling situations
which were ambiguous and full of uncertainty as to the job requirements; working
calmly and efficiently in the midst of an emergency or crisis.
8. Personality traits: taking the initiative in situations requiring it; accepting and
accomplishing more than your share of the work; willingness to work hard even if the
financial rewards are slow in coming; establishing high standards of performance and
raising them once they are met.
9. Knowledge of products and/or skills in the service offered by your business or in
producing your product: willingness to do self-study, research, and planning to
improve business operations.

1.3 THE ENTREPRENEURIAL PROCESS

The process of starting a new venture is embodied in the entrepreneurial process,
which involves more than just problem solving in a typical management position. An
entrepreneur must find, evaluate, and develop an opportunity by overcoming the forces that
resist the creation of something new. The process has four distinct phases:
1. Identification and evaluation of the opportunity,
2. Development of the business plan,
3. Determination of the required resources, and
4. Management of the resulting enterprise.
Although these phases proceed progressively, no one stage is dealt with in isolation or
is totally completed before work on other phases occurs. For example, to successfully
identify and evaluate an opportunity (phase 1), an entrepreneur must have in mind the type of
business desired (phase 4).
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Identify and Evaluate the Opportunity

Opportunity identification and evaluation is a very difficult task. Most good business
opportunities do not suddenly appear, but rather result from an entrepreneurs alertness to
possibilities, or in some case, the establishment of mechanisms that identify potential
opportunities. For example, one entrepreneur asks at every cocktail party whether anyone is
using a product that does not adequately fulfill its intended purpose.

This person is

constantly looking for a need and an opportunity to create a better product.

Another

entrepreneur always monitors the play habits and toys of her nieces and nephews. This is her
way of looking for any unique toy product niche for a new venture.
Although most entrepreneurs do not have formal mechanisms or identifying business
opportunities, some sources are often fruitful: consumers and business associates, members
of the distribution system, and technical people. Often, consumers are the best source of
ideas for a new venture
Due to their close contact with the end user, channel members in the distribution
system also see product needs. One entrepreneur started a college bookstore after haring all
the students complain about the high cost of books and the lack of service provided by the
only bookstore on campus. Many other entrepreneurs have identified business opportunities
through a discussion with a retailer, wholesaler, or manufacturers representative.
Finally, technically oriented individuals often conceptualize business opportunities
when working on other projects. One entrepreneurs business resulted from seeing the
application of a plastic resin compound in developing and manufacturing a new type of pallet
while developing the resin application in another totally unrelated areacasket moldings.
Whether the opportunity is identified by using input from consumers, business
associates, channel members, or technical people, each opportunity must be carefully
screened and evaluated. This evaluation of the opportunity is perhaps the most critical
element of the entrepreneurial process, as it allows the entrepreneur to assess whether the
specific product or service has the returns needed compared to the resources required. This
evaluation process involves looking at the length of the opportunity, its real and perceived
value, its risks and returns, its fit with the personal skills and goals of the entrepreneur, and its
uniqueness or differential advantage in its competitive environment.

The market size and the length of the window of opportunity are the primary basis for
determining the risks and rewards. This risk reflects the market, competition, technology,
and amount of capital involved. The amount of capital needed provides the basis for the
return and rewards. The methodology for evaluating risks and rewards frequently indicates
that an opportunity offers neither a financial nor a personal reward commensurate with the
risks involved.
Finally, the opportunity must fit the personal skills and goals of the entrepreneur. It is
particularly important that the entrepreneur be able to put forth the necessary time and effort
required to make the venture succeed. Although many entrepreneurs feel that the desire can
be developed along the venture, typically it does not materialize. An entrepreneur must
believe in the opportunity so much that he or she will make the necessary sacrifices to
develop the opportunity and manage the resulting organization.

1.4 ENTREPRENEURSHIP IN INDIA

In a mixed economy, as India was defined by architects of this republic, with the
public sector having the definite upper hand, the role of the state becomes very crucial. By its
very nature such an economic system could not adequately focus entrepreneurs as catalyst of
economic development. The state rather assumed the role of the major entrepreneur. Possibly
and rightfully so, the overriding concern of the newly independent country related to
correcting the anomalies and distortions created by the colonial rule.
Issues like employment generation, distributive justice and balanced regional
development thus occupied the centre stage of industrial policy making in India. The first
Industrial policy resolution of 1948 was a solid statement of the country's philosophy of
growth, the vital aspect of which was industrialization under government regulation.
Naturally neither this policy nor the subsequent ones made any specific reference to the
entrepreneur or entrepreneurship. It is interesting to note that even the small scale sector,
which later came to be known as ' the breeding ground of indigenous entrepreneurship', has
been promoted and nurtured for its potential for addressing the larger developmental
concerns. Such concerns, together with a gradually expanding public sector had set out a
framework of industrialization where the cornerstones were controls, regulation and
restrictions for the large industries and a wide protective umbrella with special incentives and
institutions for the small ones.
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Entrepreneurship must be developed and supported so that there is a proliferation of

SMEs in the country. An entrepreneur's entry into business does not guarantee his/her
survival. Attrition rate for new entrepreneurs is very high in many countries of the world.
While this may be because their chosen business inappropriate or a lack of adequate technical
or business expertise, one critical reason is that overall macro and micro environment in
which they are forced to operate. Therefore a key consideration by the government should be
to critically evaluate the exiting macroeconomic policies and their impact on grassroots
entrepreneurship development.

1.5 OBJECTIVES OF THE PROJECT

The following are the objectives
To provide student interns with an opportunity to develop professionally
Acquire real-world entrepreneurial experiences

Apply class room learning to the work place

To know the functions of various departments

CHAPTER-2
COMPANY PROFILE

2.1 DESCRIPTION OF THE ENTERPRISE

Name of the company

S-Kumar Engineering Works

Address

14, Raju Naidu 2nd Street

Behind Velan Theatre, Ganapathy
Coimbatore 641 006

Telephone No

+91-98944 30303

E-Mail

skumarengg@yahoo.com

Products

All Kind of medical equipments

Establishment of the business

06-10-1988

Annual turnover

1.5 crores

Long term aim of the business

Their long term aim is to establish their business in big level and satisfy the requirements of
the clients based in various parts of the country.

Organizational chart
MANAGING
DIRECTOR

CHIEF
ACCOUNTANT

SUPERVISOR

LABORS

CLEANER

ACCOUNTANT

2.2 MARKET ANALYSIS

Target market
The company, S-Kumar engineering works mainly targets the hospital for production
of medical equipment.

Total market size for the product/ service

Market size of S-Kumar engineering works cover major parts in and around
ganapathy, gandhipuram, saganoor, kalapathi and annur. They also have some customers in
Andhra. They have around 75 customers in above mentioned locations.

Market trends
S-Kumar engineering works does not have any season time sale of equipments, it
have continuous sales. Medical Gas Outlets, Operation Theatre Pendant and Medical Gas
Pipeline selling is the service offered by S-Kumar engineering works based on request of the
customers.

Profile of competitors
Competitors of S-Kumar engineering works are high in number, even in ganapathy
area there are many competitors available. In specific there is no profile for competitors. The
other engineering works companies in ganapathy area are considered to be competitors for SKumar engineering works in general.

Competitive advantage
The company provides the goods based on the needs of the customers. They provide
the medical equipments which were asked by the customer. The company provides medical
gas outlets, operation theatre pendant and medical gas pipeline

Benefits to Customers
Customers get quality medical equipments with low commission rate when compared
to competitors and friendly service is provided in buying medical equipments.
Customers also can pay money in due period need not to pay in full.
S-Kumar engineering works had its own vehicle for delivery of medical equipments
in time to its customers with low cost.

2.3 MARKETING/SALES STRATEGY

Income sources
Sources of income is predominantly based on

1. Commission from suppliers and customers.

2. Selling of medical equipments.
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Marketing strategy
It is very much important for any engineering works companies to safeguard the products
and deliver it on time without any physical damage. They have their own godown to carry the
inventory without any damages and they have their own vehicle to deliver the goods on time.

Pricing
This engineering work business is an open market trading. So the price varies as per
demand. The level of the price variation is up to 20% per order.
The pricing method is

1. Price per medical equipment within the time period

2. Price per medical equipment without any time period.
Advertising and promotions
The company does not have any advertising and promotion activities. Because the goods,
medical equipments not need have any advertisements and promotions.

2.4 Staffing and operations

Staffing and roles
There are 15 employees were working in S.M.Textiles including the owner. Roles of
the employees are
Mr.Sivakumar Veluswamy

Managing director

Mrs.S.Prema

Chief accountant

Mr.Ashok

Accountant

Mr.Sasi kumar

Godown Supervisor

Mr.Vijayan

Labor Head
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Purchase
Source:
They purchase the goods from the steel mills. They purchase all kind of steel
products. They purchase the goods based on the needs of the customer. Sometimes
they purchase the goods to carrying inventory also.

Process:
First they received the orders from the customers and they place the order in
the mills. Once the order is ready they purchase the goods from the mills and
delivered the goods to the customers. Sometimes they purchase the steel for their
inventory purpose also.

Documents:
They file all the documents like receipts, bills, etc. for auditing purposes. The
documents are filed and kept by owner of the company itself.

Inventory and storing

The company has its own godown for carrying the medical equipments. They
stored more than 100 medical equipments in their godown. They were carrying the inventory
regularly. Once the goods are dispatched from the inventory, immediately they place an order
and hold the stock in the godown.

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Operational process
Receiving the orders from the customers

Placing the orders to the suppliers

Purchasing the goods from the suppliers

Delivering the goods to the customer

2.5 Finances
2.5.1 Source of funding
The sources of funds are
1. Contribution from Director of the company.
2. Loan from State Bank of India.
The director of the company contributes 70% of the capital amount and the company
got the bank loan for balance 30% of the capital amount.

2.5.2 Types of funds available

The company availed by the two types of funds. One is a bank Loan from the State
Bank of India and another one is contribution from the director of the company.

2.5.3 Cost of funds

The interest rate for the bank loan is 12.50%.

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2.5.4 Accounts maintenance

All the accounts are maintained by the chief accountant and accountant. The accounts
are maintained in the computer. Managing director regularly check the accounts.

2.5.5 Profitability and loss

Last year turnover of the company was 1.5 cr. and the profit of the company is 2%
(approximately).

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CHAPTER-3
DIALOGUE WITH THE ENTREPRENEUR INTERVIEW
Entrepreneur Name

Mr. Sivakumar Veluswamy

Name of the Enterprise

S-K Engineerings Works

Type of Business

Production and Trading of Medical equipments

Educational Background

HSS

Year of Inception

1988

Interviewer

: Who inspired you to start up this business?

Entrepreneur

: I know this business from my childhood since it is my family

business. I went for a job in manufacturing plant which is related to this business. And I
learned many things about this business. After that I started this business.
Interviewer

: Who is your role model?

Entrepreneur

: I perceive my father as my role model. Mainly because he is the

reason why I started doing this business.

Interviewer

: What are all the qualities needed for an entrepreneur?

Entrepreneur

: The entrepreneur must know something about that business before he

starts it. The entrepreneur must know what the processes in that business. The entrepreneur
must know the market places of the business. And also the entrepreneur must know the needs
of the product in the market and must be punctual in delivering the product.
Interviewer

: Do you think formal education is necessary to succeed as an

entrepreneur?
Entrepreneur

: Education is an important thing for an entrepreneur in the current

scenario. Then out of experience he must know the tricks in the business. And the education
is useful for maintaining the accounts.
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Interviewer

: Tell me about the initial periods of your business successes and

challenges
Entrepreneur

: In the initial period of my business very difficult because of limited

financial resources.
Interviewer

: How has your business grown since inception?

Entrepreneur

: Initially it was at a lower scale but now it is has expanded very much

because of so many contacts.

Interviewer

: Are challenges different now? How?

Entrepreneur

: The only challenge in my business is competition. We have to

provide good quality products to have an edge over our competitors.

Interviewer

: What is your average working hour per day?

Entrepreneur

: Around 10 to 12 hours.

Interviewer

: What are the things that you like best in your business and what are

the most worrisome aspects?

Entrepreneur

: We have to more customers friendly. There is a price fluctuation in

this business. So we want to accept the loss also.

Interviewer

: Is it possible to be ethical and honest in the business?

Entrepreneur

: Off course, there should be an honest and ethical in whatever

business you are running and there should be a good quality of your product. Only then the
business will sustain for a longer period of time.
Interviewer

: What are the future plans of your business?

Entrepreneur

: To expand this business in bigger level. To start secondary

manufacturing plant in other locality.

Interviewer

: Would your children continue your business?

Entrepreneur

: It depends on their decision and willingness to work in the company.

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Interviewer

: What three pieces of advice would you give to a young entrepreneur

starting out today?

Entrepreneur:
1. First we want to have interest in doing business
2. Take our negatives as positives.
3. Dont get fear about the financial status.

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CHAPTER-4
SWOT ANALYSIS OF S.M.TEXTILES
STRENGTH:

Their involvement in the working on to this business.

They have their own godown for carrying the inventory.

The labors of 15 people are their strength.

They have their own vehicle for the transportation of goods.

WEAKNESS:

The labors are also the weakness of the industry.

Hike in the price of goods. i.e. raw materials.

Lack of proper modes of distribution and Time consumed in transit.

Higher Indirect Taxes, Power and Interest Rates.

They have carrying only minimum amount of goods in inventory.

They have only one vehicle for transportation.

OPPORTUNITIES:

Trying to establish their business in and around the tamilnadu.

To acquire more buyers.

Large, Potential Domestic and International Market.

They have a chance to open a new manufacturing plant.

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THREATS / CHALLENGES:

They face main challenges from their competitors.

To deliver the order on the right time.

Ensure that they are delivering it on the proper shipment.

To balance the demand and supply.

Environmental conditions.

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CHAPTER-5
SUGGESTIONS

They can establish their current business in and around tamilnadu.

They can provide more transport facility to the customer.

If they can carry huge number of inventory, it may help in the demand time to supply
the goods to the customers.

They can recruit a person for payment collection process and bank work.

The company can also do the glass manufacturing business in and around tamilnadu.

Company can forecast the demand for behavioral changes in order to avoid the bottle
neck decisions.

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CHAPTER-6
REFLECTIVE LEARNING
In just 6 days of this project I have learned a lot of things about Entrepreneurship.

Patience is required at any point of time

An entrepreneur should have good listening skill

Positive attitude should be maintained

Entrepreneur is way better and much beneficial than employment

It all about creating, building and nurturing relationships on a trust basis.

Consistency in delivering services to their clients and customers

Ability to take risk and self confidence from thorough planning.

Flexibility to move quickly and adapt to the growing and market needs.

Its not getting success for a short span of time and it is an ongoing process by
maintaining humbleness and honesty
Finally, I thank Mr. SIVAKUMAR VELUSWAMY, who has given me this

opportunity to be with him for a week. It was like a practical experience for me and came to
know many things of this Medical equipment manufacturing business. And I got many new
contacts from this industry circle through this ENTREPRENEURSHIP INTERFACE
PROJECT.

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CONCLUSION
From the ENTREPRENEURSHIP INTERFACE PROJECT, undertaken in the S-K
ENGINEERING WORKS I came to know about the various activities involved in the field
of the medical products trading business. The key activities and various techniques of the
company appear to be positive. The day to day function of the various departments carried
perfectly and efficiently. The company is performing well and attaining buyer satisfaction as
well as worker satisfaction. The company is known for its quality products and it will
maintain and succeed in all its future operations.

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ANNEXURE
PHOTOS
MEETING WITH AN ENTREPRENEUR

DOCUMENTS OF S-KUMAR ENGINEERING WORKS

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PURCHASE & SALES BILLS OF S.M.TEXTILES

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MANUFACTURING PROCESS

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