In this article all the essential aspects of MTTM-8 are covered in each unit, so especially when you’re preparing for the exam or even for the assignment going through this article, it will be beneficial. So stay tuned to this article to learn about the MTTM-8.
MTTM-8 Managing Entrepreneurship & Small Business
What do you understand by Small Scale Industries?
Small-scale industries are tiny businesses in which manufacturing or production is done on a small scale. This kind of business requires small investments, usually, it is run by an individual or family and their main focus is to contribute to the local economy and create employment opportunities for locals. For example – clothes shop, Bakery shop, etc.
Discuss the characteristics of SSIs.
The characteristics of small-scale industries include:-
- Small-scale industries require a small amount of money for start-up, they also have a low risk of failure.
- The main focus of small-scale industries is to reach the local or regional areas and to provide the best goods that they need.
- Small-scale industries create job opportunities for locals and give them a chance to earn a good amount of money.
- Usually in small-scale industries simple kind of machinery is used that local people can easily use.
- Starting for small-scale industries does not require so much paper formalities and they often use nearby locally available raw materials which reduces transportation and export or import formalities.
- Small-scale industries attract local people, local markets, and local areas as well.
Discuss the problems faced by SSIs.
Here are some problems faced by scale industries:-
- Small-scale industries have limited funds so they can invest only in limited technology and limited manpower.
- Due to a lack of capital small-scale industries get problems getting loans and have to face many difficulties.
- Small-scale industries only spread their network locally, not able to spread at the international level.
- They also face problems in exporting to other countries.
- Due to a lack of technology they are not able to reach a wide range of audience.
- Usually Distributors and retailers prefer to work with recognized brands as compared to small ones because on recognized and big brands trust is easily created.
- Inadequate infrastructure like poor roads, low communication connectivity, inadequate water supply, and electricity can be problems for small-scale industries.
Who can be defined as an entrepreneur?
An entrepreneur is an individual who starts his business on their own at his own risk. They try to take out innovative ideas to resolve the issues of the people. They have new ideas to create the products and invest their valuable time and money in business so that it reaches a large audience. Usually, Entrepreneurs have a strong sense of determination and strong willpower to enhance their business in the market to make the business profitable.
What do you understand by SWOT analysis?
Swot analysis is a useful tool that helps in evaluating the strengths, weaknesses, opportunities, and threats of a business. Likewise, strength includes a positive section that has, weakness includes what has to be improved, opportunities include areas to grow in a market and threat includes what obstacles are there for you, external challenges, etc. Taking down all these four aspects can make better strategies and can give a boost to your business.
What do you understand by market orientation?
Market orientation is an approach where the company focuses on understanding the needs of the customers, how the product will be satisfied, what are the preferences of consumers before launching the product, and how it is beneficial and going to resolve the issues for the customer. Market-oriented companies focus on gathering information about what customers want, what are they looking for, and how it can be resolved and accordingly they make decisions and plans and decide what has to be offered. They instantly try to collect reviews and feedback from the customer so that they can improve, do add-ons to their products, and as well to maintain a long and good relationship with the client.
How would you analyze competition?
We should analyze the competition based on:-
- In Market First identity identify your main competitors, Try to search out what strategies they are applying to boost their business.
- Gather information about your competitor’s products and find out what price, which label, and of which quality they are selling, and also focus on USP.
- Understand your target audience’s needs and preferences.
- You should apply the SWOT ( strength, weakness, opportunities, and threats) method which will help you a lot in analyzing your competitors.
- Look at their marketing strategies and way of promoting the brand.
- Search out what innovative methods they are using to sell their products and engage the audience as well.
- Stay updated on what add-ons your competitors are doing to enhance their business.
- Always check their reviews and customer feedback so we can get to know what specialty people like about his product.
Discuss some factors you should consider in deciding the site of your business.
Here are some factors that you should consider while deciding on the site of your business:-
- First of all decide the product that what product has to be created and how it is going to solve the problems of the customer.
- Identify your target audience so that it will be easy to reach them.
- Choose a good location so that employees and customers easily can reach it should be convenient.
- Infrastructure facilities should be there like road connection, communication network, proper supply of water, proper electricity, landline and phone services, internet, etc.
- Analyse what strategies your competitors are using to engage the audience.
- Understand the market research at what level you are doing marketing and promoting your product as well.
Why do you require financial planning?
- We require financial planning so that we can appropriately use money to spend, earn, and save.
- It helps to control your additional expenses and manage your money so that it can be used in the right place.
- It helps to achieve your goals in a short period.
- It helps to save money, so that In the future you can use it in big emergencies, your child’s education, hospitals, etc.
- Nowadays for financial planning people are doing long time investments for their future.
- Saving money can be an asset in your retirement age so that rest of the years you can freely enjoy.
- Doing good financial planning gives you peace of money as you will stay away from the hecticness of money.
What do you understand by a Business Plan?
A business plan is a plan in which we write about our plans related to business which includes how much capital will be required, what will be the strategies, about business description, marketing-sales, and promotion strategy, It will be registered by sole proprietorship or partnership, competitor analysis, How much more funding is required to expand the business and basically in this plan it is written how by step by step your will achieve your business goals.
How can you motivate your employees?
Here are some key points to motivate your employees:-
- Set incentive plans and rewards that will push them to work more hard.
- Create a positive and comfortable environment in which employees feel comfortable working in your organization.
- As the day ends take review, and feedback and ask them if they are facing any problems they can share and try to solve that problem.
- You should keep telling to your employees what are the company’s goals and strategies to generate more sales.
- You should provide a benefits package that should include insurance, compensation, etc. that will create trust in employees and them happy to work in your organization.
- You should always pay the salaries on time because many organizations pay salaries late and sometimes they do not pay as well, so this thing should be avoided talk to the employee in clear communication and in a comprehending way so that he will be comfortable to share things with you.
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FAQs
What are the 4 types of entrepreneurship?
The 4 types of entrepreneurship are small business entrepreneurship, scalable startup entrepreneurship, large company entrepreneurship, and social entrepreneurship.
What are the 5 barriers of entrepreneurship?
The 5 barriers of entrepreneurship are Financial Barriers, Regulatory Barriers, Market Barriers, Educational Barrier and Social and Cultural Barriers.
What are the merits of entrepreneurship?
The merits of entrepreneurship are Innovation, Job Creation, Economic Growth, Flexibility and Autonomy, Problem Solving, Adaptability, and Global Impact.
What is another name for a small business ?
The another name for a small business is a small enterprise.
Conclusion
Mttm-8 is all about Managing Entrepreneurship & Small Business. This post covers topics like What do you understand by, Small Scale Industries, Discuss the characteristics of SSIs., Discuss the problems faced by SSIs, Who can be defined as an entrepreneur, What do you understand by SWOT analysis, What do you understand by market orientation, How would you analyze competition, Discuss some factors you should consider in deciding the site of your business, Why do you require financial planning, What do you understand by a Business Plan, and How can you motivate your employees. Here you will find the all important aspects of MTTM-8 for exam preparation and assignment.