Entrepreneurship Development
Lesson 9 : Commencement of Business/ Enterprise
|
How to set up a small enterprise
|
- Identification of a Market Product
- Need commercial information and a sound market survey.
- Need close contact with various concerned organizations, institutions, government departments, chambers of commerce, banks, consultancy organizations and experienced business people in the line.
- Need to know about the availability of technology indigenously, supply of raw materials and availability of skilled work force.
- Need to know the total investment, both fixed and working capital for the unit.
- Prepare a viable market strategy for the product to be sold.
- Preparation of the Project Report
After identification of the market and product, a project report is to be prepared by a well reputed organization or by a long standing consultancy firm. Government Organization like Small Industries Service Institute (SISI), West Bengal Consultancy Organization (WEBCON), District Industries office (DIC) may also be roped in. The main objective is to portray the feasibility and viability of the project with a view to get all sorts of assistances for the project
Note : A project Report Proforma approved by the Govt. of West Bengal is enclosed under Appendices.
- Suitable Site for the Proposed Unit
(a) Availability of the Land (own / rental / lease).
(b) Availability of Shed / building.
(c) Availability of water.
(d) Availability of power.
- Registration of the unit
To avoid any future legal complications, the required legal registration must be done.
Registration certificate
Registration certificate is a must for obtaining all Government Clearances from DIC, SISI, and NSIC. This is because technical feasibility and economic viability of the proposed unit must be vetted by the DIC in the due course.
- Financial Assistance
Financial Assistance is only extended to the DIC vetted projects and as such direct approach is to be made to any Nationalized Public Sector bank or West Bengal Financial Corporation (WBFC), for the required capital needed.
Documentation required to be submitted to Financial Institutions
(a) Quotations of machinery, tools and furniture and fixtures
(b) Rent Bill from the Landlord if the unit is on rental premises
(c) Passport size photo
(d) All sorts of certificates e.g., Character Certificate, Technical degree / diploma certificate
(e) Ration Card photocopy
(f) Trade License photocopy
- Availability of Finance
Availability of finance (capital investment) from bank or financial institution must be assured.
- Construction of the Building of Factory Shed
Sanction of Power and Water Connection
Permission from Local Authorities
Application to corporation/ municipality/ village panchayat and other local authorities for permission to establish a unit.
- Application to DIC or Proper Authority for Raw Materials
Disbursement of Loans from Bank / financial institutions Before Starting Production
Ordering Plant and Machinery
Order to be placed for plant and machinery after strict scrutiny of technicalities on approval from DIC, SISI, NSIC, WBFC WBSIC. Procurement of machinery may be done on hire purchase basis.
- Completion Certificate of Factory – shed
Completion Certificate of factory – shed or allocation of shed in an Industrial Estate, installation of machinery and plant to be submitted to concerned institutions, banks or Government Departments.
- Make Firm Arrangements for Working Capital
Make firm arrangements for working capital from a bank or any other financial institution.
- Other Arrangements
(a) Contacts for purchasing raw materials
(b) Contacts for skilled and unskilled labor
(c) Contacts with market (whole sellers, agents, dealers, distributors, etc.)
- Trial Run
This is a must for confidence building and firsthand experience.
- Production Control
(a) Processing
(b) Checking up finished goods after processing.
(c) Quality Checking
(d) Finishing and get up
(e) Packaging, storing etc.
(f) Delivery System
Registration with Sales Tax and Excise Department If Required.
|
|
|
|
|
|
Participants