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PROMOTION OF

SMALL SCALE
INDUSTRIES
PROJECT
 INTRODUCTION
 project is the sweet dream of the
entrepreneur.
 Project are vital means of economic
development.
 Generally , huge amount is spent on various
projects for meeting development needs.

PROJECT
 Project is an important ground work of an
enterprise and is also very crucial to the
entrepreneur.
 An entrepreneur cannot succeed in his
venture without a project.
 The entrepreneur draws plan of action to
suit his requirement to a new project.
 Project generally implies “programme of
action.”
PROJECT
 It is series of activities and task that have
specific objectives to be completed within
certain specifications.
PROJECT
Meaning of project
A project is an idea or plan that is intended to

be carried out.
In other words a project is scheme, a design,

a proposal of something intended or devised


to be achieved.
The world bank defines a project as “ An

approval for a capital investment to develop


facilities to provide goods and services.”
PROJECT

 CVS Murthy defines “project as a sequence


of unique, complex and connected activities
having one goal or purpose that must be
completed by specific time within budget
and according to specification”
PROJECT
According to encyclopedia of
management
“ project is an organized unit decided to the

attainment of a goal. The successful


completion of development project line,
within a budget, in conforming with pre
determined within specification.”

PROJECT
The above definition have given

comprehensive view of the project. The


summary of above definition of projects are:
1.It is an important activity undertaken by an
entrepreneur before establishing a
business or promoting the business.
2.It aims towards specific target or task or an
objective that needs to accomplish in
operational stage covering the resources
mobilization and process in a phase wise.
3.
PROJECT
3.It is unique but complex in nature. It
interconnects or synthesis several
activities within a specific time and
budget.
4.It is development and growth oriented.
PROJECT

 PROJECT REPORT
 A project report is a written document
pertaining to any investment proposal.
In other words, project report is a written

statement of what an entrepreneur proposes


to take up.

PROJECT
 The project report contains the background
information about the industry to which
the project belongs and the enterprise
submitting the report. The main objective
of preparing the report is to information for
the project appraisal ( to examine ).
PROJECT
 According to Gordan an Natarajan describe
project report as a blue print of all the
activities that an entrepreneur propose to
engage in.
PROJECT
 COMPONENTS / CONTENTS OF PROJECT
REPORT.
 There is no standard pattern of a project
report.
 Every business is different, depending on
nature and type of business project report
is prepared.
 Each project report is unique.

PROJECT
 The following is the guidelines will help while
preparing a report to establish a small scale
unit.
1.General information
2.Project description
3.Market potential
4.Capital cost and source of finance
5.Assessment of working capital requirement
6.Financial consideration
7.Economic and social consideration
8.Project implementation.
PROJECT
 General information :

 It includes bio-data of the entrepreneur and


the enterprise. It gives following information.
1.Name and address of the entrepreneur.
2.
3.Qualification, experience and capabilities.
4.
5.Profile of the industry to which the unit
belong.

PROJECT
3.Constitution and organizational structure of
the enterprise i.e. single owner,
partnership or other form.
4.
5.Competitive advantage of the proposed
project over its competitor.

PROJECT
 PROJECT DESCRIPTION :
 Site location : address where the venture
is located. Reason for selecting the area.
Whether owned or taken on lease.
 Infrastructure : facilities of infrastructure
like water, power communication,
transportation etc.
 Raw material : requirement of raw
material, its source of supply, quality and
cost analysis.


PROJECT
 Labor : requirement of skilled, semi skilled
and unskilled labors. Their availability in
the local area facilities for training of labor.
 Disposal of wastage: arrangement to be
made or availability for disposal of waste.
 Technology : the type of technology to be
installed, description of plant and
machinery to be installed.
 Manufacturing process : presentation of
flow chart indicating the production
process i.e. the stage of conversion of raw
material into finished product.
PROJECT
 MARKET POTENTIAL:
 project report must state the market
potential for the product or service that is
going to be delivered by the venture. It must
state the following factor.
a.Demand and supply : the report must
state existing demand and supply
position and the share of proposed
venture in that.
b.Marketing strategy : distribution channel,
sales promotion tactics and marketing
strategy to be adopted to sell the
product.
PROJECT
 CAPITAL COSTS AND SOURCE OF
FINANCE: project report must be state the
cost to be incurred for raising and serving
the capital.

ASSESSMENT (DECIDING )OF WORKING


CAPITAL REQUIREMENTS:
Project report must mention the amount of

working required for investment in current


assets. It must mention the source through
which such capital will be raised .
PROJECT
FINANCIAL CONSIDERATION: purpose of
any business is to make adequate profit.
Project report must exhibit the financial
statement to prove financial viability
(succeed) of the venture.
ECONOMIC AND SOCIAL

CONSIDERATION : project must explain


socio-economic benefit of the venture. It
must highlight on following aspects.
1.Employment opportunities.
2.Import substitutions.
3.Promotion of ancillaries.

PROJECT
4.Export Potential.
5.Utilization of Local Resources .
6.Development of the Area.
7.
 PROJECT IMPLEMENTATION :
 The entrepreneur should draw an
implementation scheme or time to ensure
timely completion of overall activities in
establishing the venture.
 report must state the stage in which
project is going to be completed, time
schedule for completion of each stage and the
time when venture is going to commence its
operations.
PROJECT

 Objectives of project:
üproject identifies the important task a
venture has to accomplish.
üIt is normally prepared with the help or
assistance of experts.
üProject may be major or minor.
PROJECT

 It denotes a economic behavior with a
specific purpose to make investment on a
venture and earn returns.

 It is a proposal that specifies various


aspects of business like nature and type,
assembly and organization of necessary
resources, cost and benefit analysis etc.

PROJECT
 Project has following objectives :
1.To determine specific objectives of a
business.
2.To estimate cost and expenditure of the
project.
3.To estimate production, sales and revenue.
4.To organize resources and ensure proper
utilization.
5.To enhance the sources of capital.
6.To determine the availability of the venture.
PROJECT
1.To determine the specific objectives of
a business:
 business must have specific objective like
profit making, market expansion,
diversification, modernization etc . Project
determination specific objectives and
purpose for which the proposed venture is
going to accomplish.
PROJECT
2.Estimation of cost and expenditure:

 Project makes detailed estimation of funds


required to promote the business.

 It calculate cost and expenditure to be


incurred for promotion of venture,
development of infrastructure and
investment required for fixed and current
assets.
PROJECT
 Estimation of production, sales and
revenue:

 Project determination the production


targets, sales to be made to achieve the
target of profits.

 Such estimation are made for the life of the


project.

PROJECT
4.Organizing of Resources and its Proper
Utilization:

 Project makes estimation of resources


required for investment in various fixed
and current assets and also other
expenses.

 It organize such resources and ensure its


optimum utilization.


PROJECT
5.Enhancement of profit and wealth :
6.
 Basic objective of any business is to earn
profit and create wealth.

 Project determination the profits to be made


wealth to be created over the period of
the time.
PROJECT
6.To determine the sources of capital:

 The project identifies the sources of


investment.

 It estimates the capital needed to establish


or promote an industry and the
contribution of an entrepreneur, from
financial institutions, friends and so on.

PROJECT
7.To Determine the viability of the
Venture:

 Project is prepared to ensure that idea of the


venture is profitable.

 It undertakes technical, economical and


management analysis of the project to
ensure that the idea of business is viable.

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