aima report dikshita and deeksha western region.docx

8/10/2019 AIMA report dikshita and deeksha western region.docx

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Innovative youth driving

nations growth

Role of Young Entrepreneurship in India

Submitted to All India Management Association

Submiited by:

Deeksha Raina

Dikshita Mahadik


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ACKNOWLEDGEMENT

It is a pleasure in submitting report on Innovative youth driving the nations growth-role of

young entrepreneurship in India for national competition for young India organised by All India

Management Association (AIMA). In the course of the competition I have learned a lot about

business dynamics in rural India.

We would like to thank AIMA for this opportunity we got, to work on such crucial topic and

gain a lot of knowledge from it.

We would also like to thank our college IES MCRC and our faculty for giving us constant

support and encouragement during the project.


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INDEX

LIST OF TABLES/CHART

Topic Page numberArea under production 11

Yield Chart 12

Cost Chart 12

Serial no. Topic Page number1 Executive Summary 5

2 Introduction 63 Primary research 7

4 Secondary research 8

5 Gap analysis 8

6 Navchar Vikas private limited 9

7 Consultancy approach 10

8 Pilot project 11

9 Revenue model 13

10 Conclusion 13

11 References 14


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EXECUTIVE SUMMARY

Entrepreneurship fuels economic growth, but its the disruptive innovators of the world who

turbo charge it. Innovation and Entrepreneurship go hand in hand, they are necessary for each

otherssurvival. Youth has that power to use both of them in their benefit. We did primary and

secondary research to study the dynamics of rural entrepreneurship. Findings of our research

were that innovation is booming especially in rural India but rural people dont know how to

convert it into business plan but by the study of ecosystem we got to know that financial

resources, technical guidance is provided by various government and private bodies but there

exists a gap between the resources and idea. So, according to the need of the hour, we designed a

rural consultancy which will bridge the gap between resources and rural India .Navchar Vikas

Pvt. Ltd. will remove all barriers between the idea and reality conversion. Navchar Vikas Pvt.

Ltd. will consult the entrepreneur who is planning on rural thrust as well as rural population

having ideas to formulate their plans. We will do industry, competitive analysis and viability

report of the business idea. We have already started consulting one client. Our objective remains

to solve the problems of our customers by helping them in taking their innovations successfully

into rural market.


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INTRODUCTION

Innovation is a new idea, device or method; or the act of introducing new ideas, devices or

methods. Innovations can be new products, business models, customer experiences or any form

of new idea. Innovation, however, doesnt have to mean the creation of something entirely new.

Innovation creates change; it disrupts the status quo, but it does not automatically translate new

business. On the other hand, Entrepreneurship is the practice of starting and managing a

business, usually with considerable risk. Entrepreneurs are often innovators, creating ventures

from new ideas, but sometimes they see the opportunity to cash in on an existing idea

While each provides value on their own, the intersection of innovation and entrepreneurship

produces the greatest impact on our economy. Innovation is the fuel to the entrepreneurial fire,

the seeds of a sustainable business.

Innovation creates valuable ideas and entrepreneurship capitalizes on those ideas and gives them

life. The combination of these two elements produces new businesses or business initiatives that

advance industries, disrupt markets and spur nations growth.


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PRIMARY RESEARCH

To study the existing ecosystem we met representatives from various organisations to get the real

insights about availability of recourses for rural entrepreneurs.

Milaap:

It was initiated in June 2010, by three passionate young entrepreneurs who had a single vision

to change peoples concept of giving and make it a personal, transparent and sustainable process.

The end borrowers are the deserving, working poor of India students, small businesses,

families - who need a small amount of capital to get ahead and change their lives for the better.

They partner with proven, credible grass-root level organizations (called Field Partners) to

identify deserving borrowers, the amount of financial assistance they need and the purpose.

There network of volunteers work with field partners to edit and review the loan profiles. They

are then able to link them to people across the world that is willing to fund them.

Unlimited India:

Unlimited Ltd. India is an incubator for social entrepreneurs. They work with early-stage social

entrepreneurs to help them: develop as leaders, accelerate their impact, prepare their

organizations for scaling and further investment they have four key programmes: Incubationsupport - seed funding and support, Bootcamp - an intensive accelerator, Social Mashup - a

national conference for early-stage social entrepreneurs.

NABARD:

NABARD has released a comprehensive list of more than 50 schemes that it currently operates

for Microfinance, Financial Inclusion, Village Development,Credit Support, Institution

Development, Rural Infrastructure Development and Production Credit Support. REDPs are

programs that support capacity building of rural unemployed persons to enable them to set up

their own enterprises.REDPs are conducted for a particular skill and unemployed rural youth are

trained in these programs.
http://indiamicrofinance.com/nabard-2012-list-schemes-availing-subsidy-grants-funding-loans.htmlhttp://indiamicrofinance.com/nabard-2012-list-schemes-availing-subsidy-grants-funding-loans.html


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SECONDARY RESEARCH

We studied various reports and papers as well as met few entrepreneurs who are working in rural

India to get the real insights about problem faced by rural entrepreneurs.

Our findings were that majority of rural entrepreneurs are facing many problems due to non

availability of primary amenities in rural areas of developing country like India. Lack of

education, financial problems, insufficient technical and conceptual ability it is too difficult for

the rural entrepreneurs to establish industries. Despite all the inadequacies in rural areas one

should assess their strengths and build on them to make rural areas places of opportunities. This

is much to do with the way one sees the reality of the rural areas, the nook and corner of rural

India is filled with innovative ideas which could be scaled up to business plan but they are far off

from resources provided by government.

GAP ANALYSIS

After our primary and secondary research we found that there are lots of resources in the

ecosystem from money to guidance for budding entrepreneurs but there is a missing link between

them. Even though government as well as private bodies are providing funds as well as skills;

rural people are unable to utilize it due to a gap between them.


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NAVCHAR VIKAS PRIVATE LIMITEDOUR SOLUTION

To fill in the gap between the resources and entrepreneur/farmer, Navchar Vikas Pvt. Ltd. came

into existence, which will bridge the gap between the ecosystem and aspiring entrepreneur.

Aim:

To help clients by solving their problems and guiding them to take their innovation successfully

into rural market.

Vision:

To remove all barriers between idea and reality.

Services:

Industry Analysis:

We will do complete industry study which will include market size, growth rate, supplier

and customer dynamics as well as government regulations.

Competitive analysis:We will do complete study about the existing competition, threat of new entrants and

substitutes as well.

Viability report:

We will also investigate the profitability of business idea, so that it could be converted

into business enterprise.


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CONSULTANCY APPROACH

Understanding our customers idea is utmost important after that we have to study the market and

check if it is large enough for our customers growth, then comes the competition we have to

check if what kind of competition exist and is customer willing to switch from his previous

product and then we can decide that why and how will our customer make money, After doing

the above analysis we can decide how much time will it take to change the idea into reality.

IDEA

MARKET

POSITIVE

PRESENTVALUE

ACCEPTIBILITY

COMPETITION

TIME


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28%

15%

13%9%

8%

6%

5%

5% 3% 2% 6%

Area Under Production

(2010-2011) Tamil NaduMaharashtra

GujaratAndhra Pradesh

Karnataka

Madhyapradesh

Bihar

Uttarpradesh

West Bengal

Assam

Others

PILOT PROJECT WITH ARBOR BIOTECH PVT. LTD.

We have already implemented our rural consultancy model with Arbor biotech Pvt. Ltd which

deals into plant biotechnology and hydroponics. Their current product portfolio includes banana

and sugarcane tissue culture plants.

For their current project of banana plants in Valsad district we did some market studies for them,

from which we found that Tamil Nadu, Maharashtra and Gujarat are highest banana producing

states in the country.

Each state has few associations or organisations associated with it, so that the farmers get benefit

out of it. In Maharashtra the state agriculture department has formed an organisation named as

Mahabanana Association where in there are 26 co-operative societies registered and under each

society there are around 300-400 farmers associated. These organisations encourage farmers to

use tissue cultured planting material and hence we advised Arbor biotech that they should pitch

their products to these associations.

India is the largest banana producer in the world with the share of 26% of the total global

production but the export share is less than 1 % of the total global trade, there is a huge demand

for the export market.


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From the competitive analysis which we did for them we found that there are few companies

such as Godrej Agrovet Limited, Sristi Agro Biotech Pvt. Ltd., HariHar Biotech, Jain Irrigation

Systems Ltd., Seema Biotech and KF Bioplants Pvt. Ltd. dealing into plant tissue culture but

there is no significant competition in the market as the tissue culture technology is not practiced

on the large scale and the existing production is not sufficient to cater the huge demand in the

market. In India for banana plantation only 30% of the seedlings used in tissue cultured whereas

rest 70% are conventional.

We also did productivity report for their customers i.e. farmers that if they use tissue cultured

sapling what would be their profitability.

Yield Chart:

Plantation 6ft* 6ft 1210 saplings

Yield 20kgs/plant 24 tonnes

Total returns Rs 7/kg Rs 169400

Cost Chart:

Sapling cost Rs 14/sapling

Total planting material Rs 16940

Fertilizer Rs 40000

Labour Rs 50000

Total cost Rs 106940

Profit Rs 62460

This analysis is done considering minimum productivity and maximum resources utilized for the

period of 11months i.e. one cycle period which is less than conventional cycle time of 14-

15months.


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REVENUE MODEL

In the start we are using profit sharing model, where we will charge our customers when theybecome profitable according to the pre-defined agreement but we will also deliver our services

even in their non-billable downtimes. For our customers in the rural i.e. farmers we will charge

them comparatively less percentage and only after 2-3 years when they start gaining profits.

In future we plan to work using mark up model which will involve the cost of operation and

according to the returns expected we will charge our service fees.

CONCLUSION

India can be a real economic power in the future and make other countries to look up to it, if

Indian youth takes up entrepreneurship. India is the future of the world because we are a

knowledge-driven country. We, however, need a strong support from ecosystem. Youth needs

guidance and support from ecosystem to get enabled and become entrepreneurs. We, Navchar

Vikas Pvt Ltd. consider ourselves as a part of that support system.


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REFERENCES

http://tmimtjournal.org/Pdf/Poceddings/Track4/Track4_Paper2.pdf

http://indianresearchjournals.com/pdf/IJSSIR/2014/March/1.pdf

http://www.jainpipe.com/PDF/mis/Banana%20High-tech%20Cultivation%20Practices-

%20English.pdf

http://www.knowledgecommission.gov.in/contests/results/EssayA_2.pdf

http://www.idgvcindia.com/html/Accenture-Entrepreneurial-Innovation-G20YEA-Report.pdf
http://tmimtjournal.org/Pdf/Poceddings/Track4/Track4_Paper2.pdfhttp://tmimtjournal.org/Pdf/Poceddings/Track4/Track4_Paper2.pdfhttp://indianresearchjournals.com/pdf/IJSSIR/2014/March/1.pdfhttp://indianresearchjournals.com/pdf/IJSSIR/2014/March/1.pdfhttp://www.jainpipe.com/PDF/mis/Banana%20High-tech%20Cultivation%20Practices-%20English.pdfhttp://www.jainpipe.com/PDF/mis/Banana%20High-tech%20Cultivation%20Practices-%20English.pdfhttp://www.jainpipe.com/PDF/mis/Banana%20High-tech%20Cultivation%20Practices-%20English.pdfhttp://www.knowledgecommission.gov.in/contests/results/EssayA_2.pdfhttp://www.knowledgecommission.gov.in/contests/results/EssayA_2.pdfhttp://www.idgvcindia.com/html/Accenture-Entrepreneurial-Innovation-G20YEA-Report.pdfhttp://www.idgvcindia.com/html/Accenture-Entrepreneurial-Innovation-G20YEA-Report.pdfhttp://www.idgvcindia.com/html/Accenture-Entrepreneurial-Innovation-G20YEA-Report.pdfhttp://www.knowledgecommission.gov.in/contests/results/EssayA_2.pdfhttp://www.jainpipe.com/PDF/mis/Banana%20High-tech%20Cultivation%20Practices-%20English.pdfhttp://www.jainpipe.com/PDF/mis/Banana%20High-tech%20Cultivation%20Practices-%20English.pdfhttp://indianresearchjournals.com/pdf/IJSSIR/2014/March/1.pdfhttp://tmimtjournal.org/Pdf/Poceddings/Track4/Track4_Paper2.pdf

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