Biz skills & language: their bane

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‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘roup Members:
Akshet Dhawan (09MBA065)

Divya Singh (09MIB018)

Kaustav Sen (09MBA088)

Rashmi Rajput (09MIB043)

Richa Singh (09MBA101)

Sreejith (09MBA111)

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͞Entrepreneurship is not a quality rather a practice which needs certain skills and experience to
fine tune it͟. Devi Lal is one such person who has the ability and creativity of being a successful
entrepreneur but he needs a right mix of certain cognitive skills. These cognitive skills are
referred to as the ͞

͟ for a successful entrepreneur future. Let us analyze whether
Devi Lal had the right set of these skills.


 

 
 :-This skill is not developed overnight rather it takes experience
and exposure to certain factors to recognize the opportunity. It took two decades for Devi Lal to
instill this skill. He could understand the opportunity that he would be able to earn more profit
if he takes his business to Delhi which is a commercial hub. He was looking to deal with the
local marketers and exporters directly so that he could have an idea of the market
opportunities.

 

 
The products that Devi designed were indeed Novel and Masterpieces.
But the designing mind is not just about creativity rather it requires skills and expertise to
identify the ways to create values for your product. Devi lacked the skill of marketing his
product due to lack of education. He was not able to generate the value worth for his hard
work since he lacked the marketing tactics.

 
 !!
 
:-A successful entrepreneur is not the one who takes risks rather who
has the capability to minimize the risk. Devi Lal was quite conservative in his approach from the
beginning and did not take any risks to generate more revenues. Due to lack of education he
was not willing to take any chances to go out and explore the market until his sons got
educated.

 
"
 
:-Yes, we believe that Devi had a 
"
 
 of an entrepreneur. He was
forced to abandon his education because of his family needs. In spite of that he carried on his
business and never gave up. He had a meager profit of Rs 5000 in which he managed a family of
six. He survived through the bad times and gave his sons a descent education. He was mentally
and emotionally strong enough to wait for the right time and opportunity to expand his
business.

 ##!
 
:-Devi had a creative mind in generative something valuable that is the
first criteria for an Effectuating Mind. But he lacked the second condition wherein he could not
deliver his creativity or value to the market successfully. This is because he was not aware of
the marketing and promotional strategies for his product. Most of the middle men like the
exporters had these skills because of which they could exploit his hard work to earn maximum
profits.

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!" $!"


 
%!"
&!
Patience and perseverance have a magical effect before which difficulties disappear
and obstacles vanish ʹ eorge-Louis de Buffon.Well aware about his limitations, Devi lal had
the patience to wait and watch, till the time his son͛s got educated( as mentioned they were in
college) and learned to communicate in English. Once his sons were in college, Devi lal was
quite confident about them and therefore decided to commence his own business & travel to
New Delhi. Besides all this, Devi lal managed a family of 6 with a meager amount of Rs. 5ooo
which exhibits that he not only possessed patience but had perseverance too.

 Devi lal trusts his sons, as he relies on them too commence his own venture where he
can trade with his potential customers, by using his sons education and knowledge of English
language especially for foreign buyers. On the flip side , he never trusted his own instincts and
always played safe

"#!'! Devi lal was quite aware about his capabilities as an artist as well as
limitations( lack of education, poor knowledge of language i.e. English, poor marketing skills
etc).He always knew about his family circumstances and therefore acted accordingly. He was
quite aware of the fact that he can start his own venture with help of his sons and thereby earn
profits which he couldn͛t manage in last 20 years. The benefactors from his art were always
exporters or middleman, whereas he was only able to manage a family of 6 with whatever he
earned.

!
 

 Devi lal never really had a vision. The only thing he had was a vague idea of
starting his own venture with the help of his sons for which he patiently waited and waited. He
had no knowledge about the nuances involved in setting up his own business i.e risk taking
ability, marketing skills, good communication, knowledge of the market etc. For a long period of
time he was content with producing for others.

!
 This one aspect was missing in devi lal, and he regretted for not being a literate. He
suffered a lot due to lack of education as evident from the case. He however knew it͛s
importance and therefore was keen on his sons to be educated and for this reason invested a
lot over their education.

!
  !
 he was creative as an artist and as a craftsman which quite evident
from the fact the he could create a wide variety of products starting from regal elephants and
camels to Lord Buddha, anesha etc. He was creative enough to instill life in sandalwood and
kadam. He wasn͛t that innovative though.


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 Parameters of assessment and their sub parameters
LOCAL BUSINESS INFASTRUCTURE FINANCE MANPOWER REULATORY OVERNANCE
ENVIRONMENT & ISSUES ISSUES ISSUES
ECOSYSTEM
SUPPORT road networks availability Availability Labor corruption
ORANIZATIONS / and access of skilled regulations
INCUBATION to various manpower
CENTRES sources of
finance
ENTREPRENEURIAL Railways Availability Cost of Ease of Tax
EDUCATION of loan manpower regulatory
and legal
procedures
MENTORIN National Venture Security of Availability of Information
FACILITIES connectivity capital manpower information on intellectual
for setting up property
an enterprise rights
SEED FUNDIN International overnment Activities of Subsidized Tax holidays
connectivity funding trade union inputs
ANEL INVESTORS Availability of Favorable
power policy
framework
Cost of power

Availability of
water

Telecommunication
services

IT infrastructure

Warehousing and
Logistics


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Out of the various factors mentioned above that could be used to see whether a small business
can be done a large scale, we are analyzing few of the factors that according to us are relevant
with the business case given to us:

o

 Place like Delhi Where Devi Lal is doing business is connected to all the major
cities and places all across the globe. This will help Devi Lal start up an export business as the
major clients for his products are foreign nationals. He can also start sending his goods to other
parts of India where in shopkeepers will sell his products and give him the appropriate
commission. Once he starts doing this he will have a large target audience which will keep his
revenues soaring.

{!
"!(
"
 ! !  !
  # #
! Business loans are available to self
employed artisans. The maximum amount of business loan that can be sanctioned varies from
bank to bank. However, the minimum loan amount is Rs. 25000 and maximum loan tenure is 5
years. enerally, no security is required for business credit up to a certain limit. For business
loans above the limit, banks usually require a collateral security or a percentage of business
loans as margin, in the form of fixed deposit with the bank. Business loans are similar to an
overdraft and are available like a limit on current account. In this case, the interest is charged
only on the actual amount utilized, rather the entire amount of loan.

o # !' At present since the business is small Devi Lal is able to handle the business
on his own with the help of his sons. Once his business starts flourishing he would have higher
laborers under him who would work upon the design that would be decided by him.

{!
"!(
"
 # 
"" !' Even though Devi Lal would be willing to pay good salary, he
would be having tough time getting the skilled laborers. For this he would have to go to the
same place from where he came from so that he can get skilled laborers.

!) *"
! People who work in the handicrafts industry are given tax benefits by the
government of India. Some of the benefits are income tax holiday (ITH) for up to eight years,
additional deduction for labor expense, tax and duty exemption on imported capital
equipment, tax credit on domestic capital equipment, exemption from contractor͛s tax,
simplification of customs procedures, unrestricted use of consigned equipment, employment of
foreign nationals.

So considering all these factors, Devi Lal has favorable ground set on which he can start his
business and take it to a newer level with the help of his sons.

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 oo%+ 
Devi lal was a hard working, dedicated & responsible person. He was a creative artist but lacked
the business acumen & marketing skills. The middleman benefitted more from his art then he
himself should have. All he could do well was manage the livelihood for a family of 6 and
educate his sons. He had a vague idea or plan in mind of starting his own venture with help of
his capable sons. He never took a risk in his life and moved to New Delhi after 2 decades of his
professionally active life.

For a successful business you must know your target customers, in case of Devi lal he know that
his target customers are the foreigners because they show more interested in there kinds of
crafts so by exporting the product he can gain profit but his education came as a barrier in front
of him in exporting and maketing the crafts.

Devi lal was a man with full dedication, he know that he is not much educated and cannot
communicate with the foreign customers,even then also he did not give up. He provide proper
education to his sons͛ so that they can help him in his business. His sons͛ education help them a
lot in directly dealing with the customers.


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