Helpline service number

Helpline Services Numbers

Emergency Services
Police – 100
Fire – 101
Ambulance – 102
Police Help line
Police Helpline – 1944
Traffic Police Helpline – 1095
Dy. Commissioner of Police (Missing Children and Women) – 1094
Anti Teasing Cell – (Crime Branch Delhi) – 1096
Anti Ragging Helpline – 155222
Govt. of NCT of Delhi (Deptt. of IT) – 1031
Centralised Accident & Trauma  Services (CATS) – 1099
M/s Govt.of NCT of Delhi for Chief Minister (Women Helpline ) – 181
Eye Donation – 1919
Child Helpline-  1098 <Child Helpline>
Women in Distress (Delhi Police) – 1091
ORBO C.N.Centre,AIIMS ( for donation of organs) – 1060
Ambulance Service of M/s Apollo Hospital – 1066
Control Room of Central Relief Commissioner(in the event of Natural Disaster) – 1070
Students’ Helpline of Delhi Police – 1291
Helpline for women of   M/s All India Women’s Conference – 1092
Time – 174
Hindi Vishesh – 177
VIP Complaints – 178
Central Control Room of MCD – 1266
Helpline of Escorts Heart  Institute – 105010
Air India Express Service – 1412
Automatic Change Number  Announcement (In Hindi) – 1951
Automatic Change Number  Announcement (In English) – 1952
Election Commission of India – 1950
Advice/Information on HIV/AIDS – 1097
NIB Helpdesk for Internet Services – 1957
Bharat Gas Helpline Service – 1712
Disability Helpline of M/o Social Justice and Empowerment – 155206
IVRS/Information Centre of LIC – 1251
Prasar Bharti-News on Phone in Hindi – 1258
Prasar Bharti-News on Phone in English – 1259
Retrieval of voice SMS messages from any other telephone by PSTN subscribers – 1253

Railways
Central Enquiry – 139
Reservation – 139
Railway Reservation Enquiry – 139
Centralised Railway Enquiry – 139
Morning Alarm – 116

steps to create a successful life

Here are 7 steps that can help you create a successful life you’ve visualized for yourself:

Step 1: Envision the life you want

To become successful, you have to know what success looks like. While creating a definition for success, understand that your version of success might be different from others.

Ask yourself what is holding you back and stopping you to become your best version. Get into the act of visualizing and observe everything from your habits to behavior patterns to bring the required changes to your life.

The one thing that separates the successful people from the rest is the clarity on their ambition. They know exactly what they want and don’t stop working hard until they reach where they always wanted to.

Step 2: Set definite goals

Goal-setting is essential to lead a successful life. When you sit down to contemplate your next move, it indicates the seriousness of the fact that you are actually serious about creating a successful life for yourself.

Be clear about your goals whether personal or professional. Try being as specific as you can as it helps you create actionable steps towards them.

If you have big hairy goals, break them into smaller tasks. These mini-goals act as achievable milestones and impart enough motivation to keep you going in the right direction.

If you’re aiming to become a successful entrepreneur, set smart and realistic goals such as getting 5 new clients a month and generating a revenue of X amount.
Step 3: Establish a routine

There is a lot of power in routines and following daily practices religiously. Most successful people already know it and it’s time for you to know about it as well.

Something magical happens when you’re working on something by putting all your heart assiduously and consistently. You might not see the effect in the first 60–90 days. But afterwards, you’ll start observing positive changes in your life.

Establish your routine in such a way that you get enough time to accomplish goals, learn new stuff, and take care of your well-being.

Step 4: Surround yourself with high-achievers

One gets to experience a natural boost in motivation and confidence when he surrounds himself with the thinkers, doers, performers, and winners. That’s the power of positive company — you start talking, thinking, and acting like them.

These people can be anyone — spouse, siblings, friends, and colleagues. What’s important is that they motivate you to do the right thing and keep doing it.

There are times when things go south. Having the right set of people by your side will make a huge difference. Positive, happy, and inspired — that’s the kind of people you need to surround yourself with.

Step 5: Less talking, more grind

If you look carefully at the lives of Steve Jobs, Oprah Winfrey, Dhirubhai Ambani, you would be surprised to see the level of hard work that went behind making them what they are today.

Talking won’t accomplish your goals, doing will. Replace promises with efforts. Make it a thumb rule to underpromise and overdeliver.

Step 6: Keep looking out for new techniques and tools

I find it very amusing how a task or an activity can be done in a number of ways. Interestingly, there are a number of methods and techniques to perform them.

If something is eating too much time, there are enough time-management tools to stay on top of every minute and task. Whether you are an entrepreneur or leading a huge team, I recommend using ProofHub. It is an all-in-one business management software that makes work management faster, simpler, and easier.
Step 7: Enjoy the journey

At the end of the day, everything boils down to the fact that whether you’re enjoying or having a good time or not while creating a successful life for yourself.

Whatever be your ambitions, don’t get too busy becoming successful that you forget cherishing little things in life. Enjoy the journey. Own your mistakes gracefully. Keep becoming better and better.

Wish you all the luck and success!

About Author:

Vartika Kashyap is the Marketing Manager 

Employees want growth, not a lip-service

Job-hopping is on the rise. Employees are constantly bouncing from one job to another in their quest to find the ‘perfect job’. Surely, it is debatable whether job-hopping is good or bad, but let’s take a look at the numbers before we do the aftermaths.

75% of employees under 34 feel that job-hopping could benefit their career.The 2018 Global Talent Trends study revealed that many employees feel their current organizations are unable to fulfill their expectations.

Interestingly, the above statistics can help you understand how younger workforce, especially millennials think and operate. This generation of workers are ambitious and know exactly what they want and deserve. That’s why they aren’t afraid to ask exactly that.

Millennials are clear on one thing: Give us what we want or we’ll go to someone who does. They are smart, hard-working and well-aware. They want to work with companies that acknowledge, value, and respect their contribution.

Let’s take a look at some of their top priorities:

Sense of purpose

Every day we hear and read stories of young people not taking up the high-paying jobs instead choose to go with their passion. If you think that companies can retain top-talent by alluring or doing fake promises, it’s not going to happen anymore.

Millennials want to spend 8-10 hours at the office doing something they really enjoy. They want jobs that don’t just fill their pockets but also satisfy their souls.

To retain them, make sure their job responsibilities are well-aligned with their interests. Keep challenging them with new roles and responsibilities because this generation isn’t going to trade fulfilling work with fancy nap pods or office game rooms. Perhaps the desire to work with a purpose is one of the most underrated but necessary desires of today’s generation of workers.

Competitive salaries

It’s a no-brainer that we all work for money because, at the end of the day, we’ve all got to pay our bills. Unlike old times, employees know their worth and refuse to work for peanuts.

According to a Bank of America report, almost half the number of millennials have asked for a raise in the last two years as compared to Gen Xers and Baby Boomers. It’s noteworthy that more than 80 percent of the workers who asked for a raise, got one.

You might stereotype them as self-absorbed or money-minded but it turns out that they are more growth-oriented and making more money than other generations.

Flexibility

Over the last decade, workplace flexibility has become a top priority for employees. They are no more attracted to the outdated nine-to-five concept of working instead millennials feel that the option to work flexibly makes the job offer more attractive than with a higher pay-cheque.
For young couples and new parents, the need to work flexibly is growing continuously. That’s why more and more employees are putting workplace flexibility ahead of salary. A Forbes article stated, "Fifteen percent of male employees and 21 percent of female employees would give up some of their pay and slow the pace of promotion in their careers in exchange for working fewer hours."

It is also observed that organizations providing flexible schedules have experienced reduced workplace stress, fewer leaves by employees, and a boost in an overall productivity.

Work-life balance

Work-life balance might be an unattainable goal for many but is definitely a top priority for the younger workforce. These folks are not driven by the idea to work hard for the next 40-50 years and retire. Rather, they want to be a part of a thriving workplace, make a contribution, and get back home and spend time with their loved ones.

They don’t want to work mindlessly for continuous longer hours but prefer to be more focused, productive and output driven. They look forward to a healthy mix of achieving professional goals along with enough time to pursue personal interests.  

Richard Branson, founder of Virgin Group said, “Don’t be doing all the time — put time aside to just be. All work and no play is a sure-fire path to fatigue”.

What do you want?
I have been working with ProofHub for more than 5 years, it’s amazing to see how it continues to work and retain the best talent. It isn’t just an incredible project management software but also a great company to work with.  

Manage, track, and, deliver projects easier and faster. Try ProofHub.

As an employer, give enough opportunities to employees to help them grow because when it comes to attracting and retaining top talent, employees stick with companies who provide growth, not just lip-service.

About Author:

Vartika Kashyap is the Marketing Manager at ProofHub and has been one of the LinkedIn Top Voices in 2017. Her articles are inspired by office situations and work-related events. She likes to write about productivity, team building, work culture, leadership, entrepreneurship among others and contributing to a better workplace is what makes her click. For more interesting posts follow her on Medium.

How hard u work matters more than how much money u make. Agree?

How do you define success?

A big house
Lots of cash
A swanky car
3 annual vacations to exotic locations

That might be the ideal definition of being successful to some but I completely resonate with what Michelle Obama once said. She said,

“How hard you work matters more than how much money you make.”

For once if we keep money out of it, tell me what success looks like to you? However it hard it might be to visualize success without money, it surely exists - at least for many.

The thing I’d like to shed some light on is what happens behind the scenes such as immense hard work, uncountable late-nights and early-mornings, rejections, and so much more. There’s always more to success.

At the end of the day, it’s all about how hard you’ve worked on something to achieve and become the person that you were meant to be.

Why is hard work the key to success

It teaches you values

Success doesn’t happen overnight. It’s the first lesson you will learn while acting on your dreams. Either you work hard and achieve what you want to or do what you’ve always done and stay same.

Hard work teaches you important values such as persistence, tenacity, determination, resolve, bravery, and purpose.

2. It makes you disciplined

Take a close look at the lives of some ultra-successful people like Richard Branson, Jim Rohn, Steve Jobs, you’d observe how disciplined their lives have always been. Each one lives around the clock and so should you.

When you have a purpose, regular action and consistent efforts can escalate your progress ten times. Discipline and strategic thinking are two things going to take you very far in life.

3. It beats talent

There will always be someone more talented, experienced, smarter than you but you can always be the most hardworking individual in the room. Remember that hard work beats talent when talent doesn’t work hard.

There are many folks out there who are willing to do whatever it takes. It’s your willingness to work hard and go an extra mile that’s going to give you an edge over others.

4. It prepares you for the unpredictable

When you work hard and put your hundred percent, things automatically fall into place. That’s the law of attraction and how the Universe responds to your efforts.

That said, sometimes things go south as well. If you’ve worked hard, you get the confidence to face the unpredictable and come out of it - stronger, wiser, and successful.

5. It builds character

There are two ways to make money - moral and immoral. The moment you choose to take the path without any shortcuts speaks volumes about your character. That’s what hard work and determination do; it builds character.

Keep this in mind as well

The path to success often leads to glory but there’s also another side of the story. During this journey:

You will lose many friends and relatives.You will feel pain and discomfort.You will doubt yourself thousands of times.You will feel like quitting (but don’t).You will cry a lot.You will make mistakes.People will break your trust.You will change and develop different habits.You will fail again and again before you ever succeed.Some people will hate you for no reason.

It is up to you whether you prioritize hard work over money or the other way round. Remember that you can always make a lot of money with hard work and grit.

What would you choose?

About Author:

Vartika Kashyap is the Marketing Manager at ProofHub and has been one of the LinkedIn Top Voices in 2017. Her articles are inspired by office situations and work-related events. She likes to write about productivity, team building, work culture, leadership, entrepreneurship among others and contributing to a better workplace is what makes her click. Follow her on Linkedin.

Entrepreneurship development

Entrepreneurship Development

Points to Remember

1. Introduction Entrepreneurship is process of setting up one’s own business. The person who sets up business is called on entrepreneurship.

2. Meaning Entrepreneurship is a systematic purpose full and creative activity of identifying a need, mobilising resources and organising production with a view to delivering value to the customers.

According to Peter Drucker, “Entrepreneur-one who is involved in gathering and using resources to opportunities to produce result.”
3. Characteristics of Entrepreneurship

Systematic activityLawfull and purposefull activityCreative activityOrganisation of productionRisk taking

4. Relationship between Entrepreneurship and Management

1. Entrepreneurship is concerned with starting of a new business venture, management assures efficiency and success of business starts by entrepreneur.
2. In developing countries, entrepreneurs remain attached to day-to-day activities also and managers also remain in touch with strategic divisions of entrepreneurs.

5. Functions of Entrepreneurs in Relation to Economic Development

1. Contribution to gross domestic product
2. Capital formation
3. Employment generation
4. Generation of business opportunities for othersImproves economic efficiency
5. Increasing the scope of economic activities
6. Growth of local communities
7. Boosting the spirit of exploration, experimentation and daring

6. Process of Setting Up a New Enterprise The steps involved in setting up of a business are

1. Scanning the environment
2. Development of product/service
3. Feasibility analysis
4. Appraisal by funding agencies (financial institution)
5. Resource mobilisation
6. Project commissioning and councling (establishing of an enterprise)
7. Adoption and management of growth

7. The Process of Entrepreneurship Development

1. Individual Personality of Entrepreneur It means competence, motivation, values and attitude of the entrepreneur.
2. Environment Factors It refers to economic Frame work. industrial and trade policy, institutional framework of our country.

8. Role of Environment in Entrepreneurship Development

Environment conditions have Entrepreneurship Development. Inflation good infrastructures entrepreneurship development

9. The Role of Individuals in Entrepreneurship Development

1. Entrepreneurial competencies
2. Entrepreneurial motivation
3. Entrepreneurial values and attitudes

10. Entrepreneurial Competencies

1. InitiativeRecognising and grabbing the opportunities
2. Persistence
3. Collecting information
4. High quality work
5.Commitment
6. Efficiency
7. Planning
8. Problem solving
9. Self confidence
10. Assertiveness
11.PersuasionUse of influence strategies
12. MonitoringConcern for employees welfare

11. Entrepreneurial Motivation

1. Need for achievement
2.Need for power
3. Need for affiliation
4. Need for autonomy

12. Entrepreneurial Values

1. Theoretical doctrinal values
2. Social values
3.Aesthetic values
4.Political values
5.Economic values
6.Moral values

Private sector companies

Private Sector Companies

Private sector companies are companies which are not run by the government. They are the part of a country’s economic system and is run by individual and companies with the intention to earn the profit.

Public Sector Organizations

Public sector organizations are formed in three different forms:

1. Departmental undertakings

2. Public corporations/statutory corporations

3. Government company

1. Departmental Undertakings

This is the oldest form of public sector enterprises. The departmental undertaking is considered as one of the departments of government. It has no separate existence than the government. It functions under the overall control of one ministry or department of government.

For example, Railways, post & telegraph, broadcasting, telephone service etc.

Features of departmental undertakings:-

The main characteristics of departmental undertakings are:-

1. They operate under the overall control of one of the ministries of central or state government.
2. They are a part of government only, there is no separate entity.
3. The revenue of departmental undertakings is deposited in the treasury of government.
4. They are financed from the annual budgets of the government.

Merits of departmental undertakings:

•  It is very easy to form a departmental undertaking as no registration is compulsory.
•  There is direct parliamentary control. The performance of departmental undertakings can be discussed in parliament. So there is public accountability.
• The revenue of departmental undertaking is deposited in the treasury of the government. So these undertakings help to increase the government revenue.

2. Public Corporation/Statutory Corporation

A statutory corporation is a body corporate formed by a special act of parliament or by the central or state legislature. It is fully financed by the government. Its powers, objects, limitations etc. are also decided by the act of the legislature.

For example Indian airlines, air India, state bank of India, life insurance corporation of India, food corporation of India, oil & natural gas corporation, etc.

Features of a public corporation:-

 The main characteristics of a public corporation are:-

• It is created by an act of parliament or central or state legislature.
• The powers, objectives & limitations of a public corporation are defined in the act only.
• Under total control of central or state government operations of public corporations takes place.
• a public corporation is a separate legal entity. It gets incorporated automatically when the act is passed in the parliament.

Merits of a public corporation:-

• A public corporation is able to manage its affairs with independence & flexibility.
• A public corporation is relatively free from red tape, as there is less file work & less formality to be completed before taking decisions.
• The activities of the public corporation are discussed in parliament. This ensures the protection of public interest.

 3. Government Companies

The company in which at least 51% of the paid-up share capital is held by the central or state government or partly by central or state government is Government Company. The government companies are governed & ruled by the provisions of the companies act, 2013 like any other registered companies. For example, steel authority of India, state trading corporation, Hindustan machine tools.

Features of Government Company:-

• Registration: The government company gets incorporated under the companies act, 1956. All the provisions of companies act are applicable to a government company.
• Ownership: The government company is wholly or partly owned by the government. The share capital of these companies is owned by the government of India in the name of the president.
• Management: The government is managed by the board of directors, who are nominated by the government & other shareholders. The government has the authority to appoint a majority of the directors.

Merits of Government Company:-

• The government company is relatively free from government & political interference.
•  The government company is managed, financed & audited just as any other private sector company. It can, therefore, secure greater flexibility, freedom of operation & quickness of action in running the enterprise.
• The government companies can avail & accommodate managerial skill, technical know-how or expertise of the private enterprise of the private enterprise by conveniently collaborating with it.

Government companies

Government Companies

Government Company is a company or an organization in which at least 51% of the paid up share capital is held by the central government or the state government or partly by both central and state government. These are many government companies, few of them are, Steel Authority of India Limited, Bharat Heavy Electricals Limited, Coal India Limited, State Trading Corporation of India, etc.

The public sector companies in India were incorporated into two main objectives:

To achieve more equity in the distribution of wealth and income amongst the citizens of the country.To gain the momentum in the growth of the nation.

Features of a Government Company

It is a separate legal entity.It is incorporated under Companies Act 1956 & 2013.The management is governed and regulated by the provisions of Companies Act.The Memorandum of Association and Articles of Association govern the appointment of employees.A government company gets its funding from government shareholding and other private shareholdings. The company can also raise money from the capital market.A government company is audited by the agency appointed by the central government. This agency is mainly Comptroller and Auditor General of India (C&AG).

Merits of a Government Company

To incorporate a government company, all the provisions of the Companies Act are to be followed.The government organization enjoys all autonomy in management decisions and flexibility in day to day activities.These companies control the local market and sustain it to curb the unhealthy business practice.

Limitations of a Government Company

These companies face a lot of government interference and involvement of government officials, ministers, and politicians.As these companies are financed by the government, so these companies evade all constitutional responsibilities of not answering to the parliament.The efficient operations of the company are hampered, as the board of the company comprises mainly of politicians and civil servants, who have more emphasis and interest in pleasing their political party co-workers or owners and less concentrated on growth and development of the company.

Suitability of a Government Company

Where in some situations the private sector companies are needed along with public sector companies for generating strategic growth for the society. The suitability of Government Company becomes more required in giving all powers which a private sector company is deprived of.Whenever the private sector companies lack the financial arrangement and the objectives are not fulfilled. In this case, the private sector joins hands with Government Companies to create synergic effects for growth and expansion.

Role and Importance

The importance and role of public sector companies have changed with time. Let us see the role of these companies in nation’s growth.

1. Economies of Scale

The sectors where a large amount of capital is required, which in general terms private sector companies don’t accommodate are dealt in by the public sector companies. Industries like, electric power plants, natural gas, petroleum etc are under the control of public sector companies.

2. Regional Balance

For the overall development of the nation, various areas which economically backwards be never touched by companies. Mainly the development was done near port areas and interior parts of the country were never accessed. To have a balanced growth of the whole nation, public sector companies take the charge and do the development in underprivileged areas.

3. Development of the Infrastructure

All the heavy industries were very less in number and low capacity at the time of independence. These industries were like, engineering, iron, and steel, oil and gas refineries, heavy goods machinery, etc.

Private Sector was never willing to participate in the development of heavy industries because the gestation period was too long in these industries and the amount of capital to be invested is huge in number. So the government had to rely on public sector companies to develop these sectors which were an integral part of the development of the nation.
4. Control on Monopoly and Restrictive Trade Practices

Public sector companies have a very important role to control the monopoly created by private sector companies. Public sector companies keep a check on guidelines of Monopolistic and Restrictive Trade Practices.

5. Import Substitution

Public enterprises are also engaged in manufacturing and production of capital equipment which was earlier imported from other countries. Companies like MMTC have played a very crucial and vital role in expanding Indian markets for exports and other trades.

.

Joint venture

Joint Ventures

Joint Ventures can be with a company of same industry or can be of some other industry, but with a combination of both, they will generate a competitive advantage over other players in the market.

In short, when two or more organizations join hands together for creating synergy and gain a mutual competitive advantage, the new entity is called a Joint Venture. It can be a private company, public company or even a foreign company.

In India, many companies underwent joint venture with various foreign companies, which were either technologically more advanced or geographically more scattered. The major joint ventures in India were done in sectors like Insurance, Banking, Commercial Transport vehicle, etc.

Possibilities in a Joint Venture

A joint venture can be very flexible which can be in context to the requirements of the organization. The agreement between the companies should have detailed terms and conditions with respect to the activities that will be carried by them. This aids in clarification and don’t allow any ambiguity between the stakeholders. The agreement also helps to designate the actual scope of work which either of parties has to conduct.

Two organizations of different countries can also undergo a Joint Venture to conduct a business. In this case, the directives issued by the respective governments have to be followed before entering into any kind of Joint Venture. These norms help the governments to keep a check on the activities of the organizations and ensure a legal activity is conducted by the organizations in Joint Venture.

Characteristics of a Joint Venture

1. Creates Synergy

A joint venture is entered between two or more parties to extract the qualities of each other. One company may possess a special characteristic which another company might lack with. Similarly, the other company has some advantage which another company cannot achieve. These two companies can enter into a joint venture to generate synergies between them for a greater good. These companies can work on economies of large scale to give cost advantage.

2. Risk and Rewards can be Shared

In a typical joint venture agreement between two or more organization, may be of the same country or different countries, there are many diversifications in culture, technology, geographical advantage and disadvantage, target audience and many more factors to overcome. So the risks and rewards pertaining to the activity for which the joint venture is agreed upon can be shared between the parties as decided and entered into the legal agreement.

3. No Separate Laws

As for joint venture, there is no separate governing body which regulates the activities of the joint venture. Once they are into a corporate structure, then the Ministry of Corporate Affairs in association with Registrar of Companies keep a check on companies. Apart from that, there is no separate law for governing joint ventures

Advantages of Joint Venture

1. Economies of Scale

Joint Venture helps the organizations to scale up with their limited capacity. The strength of one organization can be utilized by the other. This gives the competitive advantage to both the organizations to generate economies of scalability.

2. Access to New Markets and Distribution Networks

When one organization enters into joint venture with another organization, it opens a vast market which has a potential to grow and develop. For example, when an organization of United States of America enters into a joint venture with another organization based at India, then the company of United States has an advantage of accessing vast Indian markets with various variants of paying capacity and diversification of choice.

At the same time, the Indian company has the advantage to access the markets of the United States which is geographically scattered and has good paying capacity where the quality of the product is not compromised. Unique Indian products have big markets across the globe.

3. Innovation

Joint ventures give an added advantage to upgrading the products and services with respect to technology. Marketing can be done with various innovative platforms and technological up gradation helps in making good products at efficient cost. International companies can come up with new ideas and technology to reduce cost and provide better quality products.

4. Low Cost of Production

When two or more companies join hands together, the main motive is to provide the products at a most efficient price. And this can be done when the cost of production can be reduced or cost of services can be managed. A genuine joint venture aims at this only to provide best products and services to its consumers.
5. Brand Name

A separate brand name can be created for the Joint Venture. This helps in giving a distinctive look and recognition to the brand. When two parties enter into a joint venture, then goodwill of one company which is already established in the market can be utilized by another organization for gaining a competitive advantage over other players in the market.

For example, a big brand of Europe enters into a joint venture with an Indian company will give a synergic advantage as the brand is already established across the globe.

6. Access to Technology

Technology is an attractive reason for organizations to enter into a joint venture. Advanced technology with one organization to produce superior quality of products saves a lot of time, energy, and resources. Without the further investment of huge amount again to create a technology which is already in existence, the access to same technology can be done only when companies enter into joint venture and give a competitive advantage.

Departmental undertakings

Departmental Undertaking

The departmental undertaking is the oldest and traditional form of an organization of the public sector enterprise.It is organized, financed and controlled in such a manner that any other government organization.

The undertaking is under the control of a minister who is responsible to the parliament. Some example of departmental undertakings is Indian Railways, Post and Telegraph, All India Radio, Doordarshan etc.

Features of Departmental Undertaking

1. Audit and Accounting

Normal budgeting, accounting and audit procedures are applicable to departmental undertakings just like government departments.

2. Managed by Civil Servants

The departmental undertakings are managed by the civil servants, who are subject to the same services condition as applicable to civil servants of the government.

3. Sovereign Immunity

Without the consent of the government, a departmental undertaking cannot be sued at all

Advantages of departmental undertakings

Advantages

1. Provides easy information

It is easy to set up departmental undertaking. The departmental undertaking is created by an administrative decision of the government, involving no legal formalities for its formation.

2. Direct control over Parliament or State Legislature

The departmental undertaking is directly responsible to the parliament or the state government through its overall head i.e. the minister concerned.

3. Tax on the Public is lesser

Earnings in this department are paid into government treasury, resulting in the lesser tax burden on the public.

4. Tool for social change

The economic activity and social justice can be promoted by the government through departmental undertaking. It can be used by the government, as a tool for social change.

5. Avoid misuse of Government Treasury

The officers of the departmental undertaking are under the direct administrative control of the ministry. They are guided by the rules and regulations of the ministry, framed with a focus on public welfare.

6. Monitored by the rules and regulations of the Ministry

As the departmental undertaking is subject to the budgeting, accounting and audit procedures of the government, the risk of misuse of public money is relatively less

Disadvantages of departmental undertakings

Drawbacks suffered by departmental undertakings

Lack of flexibility: the departmental undertakings are strictly under the control of parliament. The minister and the top financial managers also interfere frequently in its working.Lack of motivation: In the absence of competition and profit motive, there is little incentive for hard work and efficiency. There is hardly any link between reward and the performance and promotions are based on the incentives.Financial dependence: the departmental undertaking deposits its earnings into the government treasury. It cannot take long-term decisions as it is financed by the government.

Public and private sector

At present, many countries have adopted the policy of Privatisation, through which Private Sector is also gaining importance. For the progress and development of any country, both the sectors must go hand in hand as only one sector cannot lead the country in the path of success. The private sector comprises of business which is owned, managed and controlled by individuals.

On the contrary, public sectorcomprises of various business enterprises owned and managed by Government. Such organizations are either fully or partly owned by the center or state and come under the separate ministry. Some of the public sector organizations are set up by a special act of Parliament.

A cut-throat competition between both the sectors, to prove itself better over the other sector. So, the article attempts to outline the differences between public sector and the private sector in tabular form.

Public Sector Vs Private Sector

1.Meaning

Public sector

The section of a nation's economy, which is under the control of government, whether it is central, state or local, is known as the Public Sector.

Private sector

The section of a nation's economy, which owned and controlled by private individuals or companies is known as Private Sector.

2. Basic objective

Public sector

To serve the citizens of the country.

Private sector

Earning Profit

3. Raises money fromPublic

Public sector

Revenue like tax, duty, penalty etc.

Private sector

Issuing shares and debentures or by taking loan

4. Areas

Public sector

Police, Army, Mining, Health, Manufacturing, Electricity, Education, Transport, Telecommunication, Agriculture, Banking, Insurance, etc.

Private sector

Finance, Information Technology, Mining, Transport, Education, Telecommunication, Manufacturing, Banking, Construction, Pharmaceuticals etc.

5. Benefits of working

Public sector

Job security, Retirement benefits, Allowances, Perquisites etc.

Private sector

Good salary package, Competitive environment, Incentives etc.

6. Basis of Promotion

Public sector

Seniority

Private sector

Merit

7. Job Stability

Public sector

Yes

Private sector

No

Definition of Public Sector

The sector, which is engaged in the activities of providing government goods and services to the general public is Public Sector. The enterprises, agencies, and bodies are fully owned, controlled and run by the Government whether it is central government, statement government or a local government.

Public Sector Organizations

There are two types of public sector organizations, i.e. either the Government fully finances them through the revenues they raise by collecting taxes, duties, fees, etc. or the government holds more than 51% of the total share capital of the company which comes under various ministries. The enterprises are established with service motive. It is the largest sector, which works for the upliftment of the people by providing the following services to the people:

Generation of employment opportunitiesPostal servicesProviding education and health facilities at low costProviding securityRailway service

Definition of Private Sector

The segment of a national economy that is owned, controlled and managed by private individuals or enterprises is known as Private Sector. The private sector companies are divided on the basis of sizes like small & medium enterprises and large enterprises which are either privately or publicly traded organizations. They can be created in two ways, i.e. either by the formation of a new enterprise or by the privatization of any Public Sector Enterprise.

Private Sector Organizations

Business entities of the private sector are generally established with the sole objective of making profit and building brand reputation. They provide quality services to the community to win the trust and goodwill from people to survive in the long run and compete with the enemies. These enterprises also have to follow the government law and order. It is the largest sector in terms of employees.

Although in private sector performance is the basic criterion for job stability, i.e. if you perform well you will get promoted and if you won’t, you will be terminated. The major services provided by the Private sector are as under:

#Quality education

#Telecommunication services

#IT services

#Courier Services

#Infrastructure development

Key Differences Between Public Sector and Private Sector

The following are the major differences between public sector and private sector:

1. Public Sector is a part of the country’s economy where the control and maintenance are in the hands of Government. If we talk about Private Sector, it is owned and managed by the private individuals and corporations.

2.The aim of the public sector is to serve people, but private sector enterprises are established with the profit motive.

3.In the public sector, the government has full control over the organisations. Conversely, Private Sector companies enjoy less government interference.

4.The employees of the public sector have the security of the job along with that they are given the benefits of allowances, perquisites, and retirement like gratuity, pension, superannuation fund, etc. which are absent in the case of the private sector.

5.In the private sector working environment is quite competitive which is missing in the public sector because they are not established to meet commercial objectives.

6.In general Public Sector uses Seniority for promoting employees, however, merit cum seniority is also taken as a base for promoting employees. Unlike Private Sector, where performance is everything, and so merit is considered as a parameter to promote them

Conclusion

Nowadays, Private Sector is progressing faster because promotes quality, not quantity; it encourages talent. Public Sector is full of reservations like reservations for minority section, females, a person with a disability and much more, here nobody sees talent, it is completely ignored and because of this, competent youths remain unemployed.

Public sector enterprises give so many facilities to their employees, which makes them satisfied that their job is secured, due to which, all the people are running after it like it is a marathon. However in the Private Sector, your job is never secured, even if you give years to it, you can be fired anytime just because of a single mistake.

Again in the private sector, where performance is king, the workload is much, but it keeps you active, this is missing in the public sector due to which the work sometimes becomes monotonous which creates boredom. One thing is really good in Private Sector i.e. it is corruption free. In Public Sector, you have to pay lots of money to the government officers even for a simple work, for no reason. It is an unending debate, both are good at their places, if the drawbacks are removed, they will surely prove good for the economy.

How to manage stress during exams

How to manage Stress during exams

1. Listen to Classical Music

Listening to music can create a positive and productive environment by elevating your mood and encouraging you to study more effectively and for longer. Classical music is recommended as the best type of music to boost your brain power but ambient music can work too.

2. Take a Quick Walk

Many students feel as if they should spend their entire time before exams with their books open and their pen poised for action. However, research has proven that exercising such as taking a walk can boost your memory and brain power.

3. Plan your Study Routine

This may not be a big surprise but what is shocking is the amount of students who discount the benefits of creating a personal study plan. With some initial effort, you can become more productive and motivated each day you approach your study by understanding your learning progress.

4. Play with Bubble Wrap & Puppies

Where do puppies come into exam stress? Lots of universities have installed ‘puppy rooms’ where students can come to relieve stress and anxiety. Pets have also been found to help you focus while studying but we wouldn’t recommend dropping into the library with your pet hamster! Popping bubble wrap is another stress reliever you can save for home study.

5. Try to Get Enough Sleep

For some people, this is something that’s always put on the long finger especially if you are trying to get the most out of college life. The benefits of a proper night’s sleep can never be underestimated. Most importantly, sleep helps your brain to assimilate new knowledge into your long-term memory so that you can recall it when it comes to test day. Anyone who has tried to concentrate with half a night’s sleep can also testify to improved focus with better sleep.

6. Use Mobile Apps

There are tons of mobile apps designed to improve your quality of life. Whether you want to get better organised, improve your mental arithmetic or work on your English language skills, there’s an app for that.

7. Give Your Mind Space

Meditation is one of the most effective ways to take a break and see your stress from a different perspective. Practicing meditation is another way to maintain focus while improving both mental and physical health to reduce pre-exam stress.

8. Eating Dark Chocolate

Believe it or not this is 100% true. Eating dark chocolate which is over 70% cocoa fights the exam stress hormone cortisol and has an overall relaxing effect on the body. Plus chocolate releases endorphins which act as a natural stress fighter.

9. Let it All Out

Sometimes you just need to talk to someone, other times you need to shout it from the rooftop or scream from the top of your lungs. Figure out what you’re feeling and then let it out. Speaking to a family member or friend can highlight the bigger picture for you and empower you to rise above the exam stress.

10. Break Free from Distractions

I bet you don’t even realise the number of times you check Facebook, Instagram or whatever your vice is? When you add it all up together, it amounts to a significant waste of time.

How to get higher marks

Top 10 Tips To Get Higher Marks In Exam

  

10. Allocate Appropriate Time:

Before you begin, allocate time for every question. Few of the questions will need more time than others. Allot the time accordingly i.e. always allot your time to each question based on the marks fixed to it. For instance, if one question is of 15 mark and another question is of 20 mark, then you should definitely dedicate more time to the latter question.

9. Check and Re-check your Answer Paper:

Many of the pupils fall short of time to check their answer paper after finishing it. To avoid this, try to complete your exam paper at least 20 minutes before time so that you have enough time to check all your written answers. Moreover, you also can see if each and every question has been numbered correctly or not and if by any chance there are any questions left unanswered.

8. Balancing Your Writing:

Illustrating too much for questions that do not need lengthy answers results in an apparent scarcity of time for other remaining questions. Similarly, if you write too little for questions that requires elongated answers, you will end up missing main points or details of an idea. Invariably, the result will be loss of marks. But at the same time, if you balance it out well you’ll apparently get higher marks in exam.

7. Sequencing:

The style of the writing is very vital. A notable point wise answer will absolutely earn you more marks than a long piece of writing. Highlight your answer point wise starting from the most important to the least important. Pay a lot of attention to your writing style. It may definitely fetch you some bonus points. Practice beforehand in this arena so that you write appropriately to get higher marks in exam.

6. Use “Paragraphing”:

In case of long answers where you need to write in paragraphs adapt the method of paragraphing. After every three or four points, a new paragraph should commence. In addition, where there is an association of points, the following paragraph should begin with a transitional word like, ‘Consequently’, ‘Therefore’, ‘Nevertheless’ etc. To get a good command over the language, one should read as many books as possible.

5. Accentuate Your Answer:

Where ever possible emphasize your answer by drawing a diagram. You can draw flow charts and illustrate your knowledge. Also make the diagram effective and not shabby. Next, highlight the main points and words in your answer by underling the important phrase. Present your answer as neat as possible without any cuts and strokes.

4. Avoid Grammatical Mistakes:

Grammar plays a very significant role in getting higher marks in exam. So as much as possible avoid all the obvious grammar as well as spelling mistakes. One way of achieving this is by reproducing all your answers in very simple and plain language instead of using complex terms.

3. Quality Content:

If you want to score excellent marks in exam, you should not stuff your answers with any unwanted trash. Many pupils are under the impression that if they write more they will get more marks. However, the marks allotted is mainly for your quality writing and not just quantity. So master the art of content writing (have the knowledge beforehand) and easily score effectively.

2. Handwriting:

The majority of the students take the value of handwriting very lightly. They do not understand that it is handwriting which brings in some extra marks. Yes, if your handwriting is neat, viable and easy to read then the examiner unconsciously or consciously checks generously and you get a few extra marks by the virtue of your good handwriting. Intelligibility counts and it is always appreciated and favored. Clear handwriting is indeed a way to get that high scores in exams.

1. Concentration:

Make sure that you are fully attentive while writing the exam, both physically as well as mentally. Avoid any sort of distraction. Don’t look here and there and focus mainly on your paper. Also carry every necessary item with yourself so that you don’t have to ask as it may disturb others as well as your focus on the topic.

SMART THINGS TO DO-for SMART STUDENTS

Here are a few study tips based on the scientific research into the performance of a human brain!

1. Think “I am a genius” – Change your perception of yourself and begin to see yourself as one!

2. Consume lots of H2O – your brain is 70% water, and most people do not drink enough water for the brain to function optimally. Remember: Coffee and pop dehydrates your brain. You should drink an 8oz cup of water for every 25lbs of body weight every day!

3. Get a study strategy/plan – The absence or the presence of a study strategy is the greatest single predictor of post-secondary achievement.

4. Set Goals! – Write down all your goals, if you don’t write them – they’re just wishes! If you are a student, on a sheet of paper write down all the subjects you are enrolled in this term and write the grade you want in each class. Post this in your room, on your wish board, stick it to your bathroom mirror, locker, or even post on Pinterest –  the more you see it, the better.

5. Picture it! – Close your eyes and think of what you want. It is an interesting fact that the brain is picture driven and not word driven. By turning concepts into pictures, your retention goes up 800%! Just picture that!

6. Cross Lateral Movement – This movement gets both hemispheres of your brain working at the same time. An easy way to do this is to take your right hand and touch your left knee, then have your left hand touch your right knee. Repeat 15-20 times. NEVER begin studying until you do this exercise. And do it every so often while you are studying!

7. Brain Breaks! – Take 2 minutes of cross laterals & walking. Remember: NO TV or phone calls. These activities are not breaks for your brain.

8. Formula: Brain Breaks = age + 2 to a maximum of 20 minutes (i.e. if you are 15, take a break every 17 minutes)!

9.Write it Down! – If you take notes, you increase your chances of a good score on the exam by 50% (even if you never look through the notes again)!

10. Keep your school work in a 3-ring binder – This gives you more flexibility.Use the Cornell Note-taking system – Questions, Notes and Summary.

11. Stop thinking like a student and start thinking like a teacher! – Try to think of the questions you think your teacher will ask on a test.

12. Ask Questions – Questions make your brain search for an answer. “Questions are to learning what an ignition is to a car”. They:
     ✓ jump start your brain
     ✓ make you pay attention in case you are called on for an answer
     ✓ release chemicals in your brain which makes learning easier.

13. Always study with questions! – Questions bias your brain towards absorbing the information. (We mentioned Questions twice because they are sooo important for your study).

14. Keep your room cool – The ideal temp for studying is 17°C/67°F.

15. Turn off the TV & Radio when studying. No, really – turn it off! It’s too distracting

16. Turn on the Baroque Music – Just to remember it has to be Baroque, not just any classical music. Studies have found that you can increase your learning efficiency by 25%-400% when you listen to Baroque music while studying.

17. Get interested! – Learning can be defined as the process of remembering what you are interested in, so find a way to get interested in what you are studying!

18. Use color when taking notes – Your brain is more stimulated with the use of different colors.

19. Use red for important information such as what will be on a test – Your brain is drawn to the color red.

20. Use a cover card when studying. – If you use the Cornell method, the cover card could be used to cover up the note section so that you can test yourself. Read the question, give your answer, then move the cover card to see if your answer was correct.

21. Do what geniuses do – be always open to new ideas!

22. Get on your feet – you remember 10% more information when you stand up (this is due to the fact that more blood goes to your brain when you stand). Maybe that’s why professors are so smart.

There you have it! The 22 study tips to maximize your study efficiency!

Entrepreneurship

Entrepreneurship

 

">Entrepreneurshipcomes from a french word `Entrependre’ and the German word `Uternehmen’ both meaning individuals who are `undertakers’ i.e. those who took the risk of a new enterprise. Entrepreneurship is a dynamic activity which helps the entrepreneur to bring changes in the process of production, innovation in production, new usage of materials, creator of market etc. It is a metal attitude to foresee risk and uncertainty and do something new in an effective manner to achieve certain goals.

An entrepreneur is an economic change agent with knowledge, skills, initiative, drive and spirit of innovation to achieve goals.  He identifies and seizes opportunity for economic benefits. He is a risk bearer, an organizer and an innovator.

According to Economists → An entrepreneur is the one who brings resources, labour, material and other assets into combination to produce a socially viable product, and also one who introduces changes, innovation and new order.

According to Management → A person with a vision and action plan to achieve it is an entrepreneur.

Functions of an entrepreneur →

Identification of opportunitiesIntroduction of a new productGathering resources or Introducing new methods of productionDeveloping new markets

Characteristics of an Entrepreneur →

Vision – He is able to visualize market demand, socio-economic environment and the future of business venture.

Knowledge – He has sound conceptual knowledge about all the technicalities of his business.

Desire to succeed – He has multiple goals and a seeks opportunities to be productive.

Independence – He is independent in work and decision making

Optimism – He knows how to exploit opportunities.

Value addition – He does not follow the conventional rule of thumb, they have a desire to create, innovate and add value.

Initiative – He takes the initiative to make an action plan from limited resources.

Goal setting – He sets realistic goals.

Problem solver – He is creative in problem solving.

Good human relations – He is a good leader, motivator and team builder.

Communication skills – He has the ability to persuade others.

Types of Entrepreneur →

(i) According to Clarence Banhof →

♦ Aggressive/Innovative entrepreneur – The one who uses various combinations of information and factors of production to assemble and engineer new and innovative products.

♦ Immitative/Adoptive entrepreneur – The one who simply adopts a successful innovation introduced by other entrepreneurs.

♦ Fabian entrepreneur – The one who is timid and cautious in making bold decisions. Such an entrepreneur adopts innovations in his business only when he fears that not innovating may damage his business.

♦ Drone entrepreneur – A drone entrepreneur is one who refuses to adopt new innovations even at the cost of reduced returns.

(ii) According to Authur H. Cole →

♦ Empirical entrepreneur – An entrepreneur who does not innovate and follows the rule of thumb.

♦ Rational entrepreneur – An rational entrepreneur is one who keeps himself updated with his business, the market and economic conditions, and introduces revolutionary ideas.

♦ Cognitive entrepreneur – An entrepreneur that seeks advice and services of experts to make changes which are revolutionary and reflect a complete shift from its existing structure.

(iii) According to Ownership →

♦ Public entrepreneurship –These are individuals who partner with the government to create enterprises which serve the public in innovative ways.

♦ Private entrepreneurship –These entrepreneurs are profit oriented and do not enter market which have low monetary rewards associated with it.

(iv) According to Scale of enterprise →

♦ Large scale entrepreneur –Large scale entrepreneurs are usually found in developed countries. These entrepreneurs introduce revolutionary ideas and are able to sustain high profits and develop new technologies as they possess the financial capacity and necessary resources to do so.

♦ Small scale entrepreneur –Small scale entrepreneurs do not have the necessary funds and technology to initiate large scale production and introduce revolutionary ideas.

Nature of Entrepreneurship →

♦ Creation of an enterprise – It involves creation and operation of an enterprise.

♦ Organizing function – It brings together various factors of production for economic use.

♦ Innovation – It is an automatic, spontaneous and creative response to changes in the environment.

♦ Risk bearing capacity – It assumes uncertainty of future.

♦ Managerial and leadership function – It is responsible for controlling and coordinating the human resource and giving direction to an enterprise.

♦ Gap filling – It fills the gap between human needs and available products and services.

Process of Entrepreneurship →

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(A) Identify an opportunity – An Entrepreneur senses opportunities and visualizes a market since they are creative and open to new ideas and seek challenges. They look for needs, wants, problems and challenges that are not met or dealt effectively. Since their ideas are innovative they gain first movers advantage which provides product identification and higher credibility in the market.

(B) Establishing a vision – It involves generation of ideas using past experience and creativity to develop new and innovative ways to solve a problem, or satisfy a need. Out of many ideas the most feasible and profitable are chosen and narrowed to one best idea. He evaluates different opportunities and the business environment to assess the (i) Real and Perceived value of the product/service (ii) Risks and rewards associated with the project (iii) and differential advantage in its competitive environment.

(C) Persuade others – He forms a foundation team which consists of a group of individuals who work together to turn his vision into reality. They may be partners, financiers, family members etc.

(D) Gathering Resources – It involves using a business plan to attract investors, venture capitalists, partners, financial institutions, promoters etc.  The main task is to research and identify resources that are needed to turn the idea into a viable venture.

Resources can be categorized into –

• Financial Resources – Personal savings, retained capital, banks, government institutions, family, friends, partnerships, venture capital, public issue.

• Operating Resources – They can be Tangible or Intangible.

Tangible – (a) machines (b) raw materials (c) land and building (d) office equipments (An entrepreneur has to make a decision to buy, rent or hire them).

Intangible resources – (a) company’s image (b) operating procedures (c) transportation (d) management

• Human – Temporary/permanent employees, Amount of man power needed, Recruitment, Selection and Training of staff, Compensation, Organization culture.

• Information – An efficient management information system is needed in order to have timely info about customers, markets, competitors and external environment. All the data is networked on real time basis to speed up actions based on information.

(E) Create new Venture – When all the resources have been arranged, the next step is Creation and establishment of a new venture and running the business venture successfully. It requires a lot of enthusiasm and persuasion to gather optimum resources and it requires a lot of perseverance and passion to believe in self.

(F) Change/Adapt with time – It is necessary to monitor and upgrade the organization with changing market conditions. It requires availability of funds to make changes and the adaptability of human resource towards changed environment.

Functions of Entrepreneurship →

(A) Primary Functions –

PlanningOrganizingDecision MakingManagingInnovatingRisk bearing

(B) Secondary Functions –

Diversification of productionExpansion of the enterpriseMaintaining cordial employer and employee relationsTackling Labour problemCo-ordinating and communicating with third parties

(C) Other Functions –

Managing of scarce resourcesDealing with public bureaucracyIdentifying parallel opportunitiesBuilding Strong customer relations

Barriers to Entrepreneurship →

(i) Environmental Barriers →

(a) Raw Material – Non-availability of raw materials required for production during peak seasons.  It leads to increase in price of raw materials due to competition.

(b) Labour –

Lack of skilled labourLack of committed and loyal employeeQuality and Quantity of labour

(c) Machinery – Machines are necessary but they are also costly and due to rapid change in technology they become obsolete and require replacement which requires cash in hand.  It becomes very difficult for small business organization to keep updating its production process.

(d) Land and Building – Acquisition of land and construction of building at a prime location require heavy expenditure.  If the land is taken on rent, it becomes a fixed cost and a constant concern for the entrepreneur.

(e) Infrastructure support – Adequacy of power, proper roads, water and drainage facilities etc. There is less support from development authorities due to red-tapism and corruption.

(ii) Financial barrier → Availability of funds is a major concern. A delay in source of finance results in delay of starting or running business.

(iii) Personal Barrier → They are caused by emotional blocks of an individual.  They cause a mental obstruction. They are :-

(a) Lack of confidence – They think they will never find a successful business idea and would be unable to attract necessary resources. Therefore, they dismiss the thought of being self-employed.

(b) Lack of Dependability on others – They aim to gain their additional expertise through trail and error and experience, rather than seeking further development or personal assistance from others.

(c) Lack of Motivation – Lose interest and motivation when ideas don’t work.

(d) Lack of Patience – When desire to achieve success in first attempt or to become rich instantly are confronted with business challenges/problems they lose interest. They give up at during initial losses.

(e) Inability to Dream – Sometimes they are short of vision or satisfied with what they have achieved and lose interest in further expansion of business.

(f) Sense of Pride/Embarrassment – they are too proud or too embarrassed to take help.

(iv) Societal Barrier →

Socio-cultural norms and valuesDegree of approval or disapproval of entrepreneurial behaviourFinancial stability and family backgroundCaste and religious affiliation

(v) Political Barrier →

Government incentives and concessionsFacilitating socio-economic settinginterest in economic development of society

Scope of Entrepreneurship in India →

Individuals are opting for entrepreneurship as a career due to reasons such as –

Desire of control over one’s futureMore profitsLack of employment opportunityGovernment measures to promote entrepreneurship

Entrepreneurship provides employment and source of earning to people. It helps in reducing the monopoly of rich businessman and achieving a balanced regional development and growth in economy. Government of India is conducting development programmes to identify entrepreneurial potential and assistance from financial and non-financial institutions are being provided to entrepreneur. Entrepreneurship training institutes have been established and financial and operational support is being provided to young entrepreneurs in India.

Need of entrepreneurship

Importance/Need of entrepreneurship development programme (EDP)

 

Importance of entrepreneurship development programme (EDP) is to enable entrepreneurs initiating and sustaining the process of economic development in the following ways-

1.Creation of Employment Opportunities

Unemployment is one of the most important problems confronting developing and underdevelopment countries, EDP’s enable prospective entrepreneurs in the setting up of their own units, thus enabling them to get self employment. With the setting up of more and more units by entrepreneurs, both on small and large scale, numerous job opportunities are created for the others.

Entrepreneur in this way get an opportunity to lead an independent and honorable life and at the same time they enable others in getting gainful employment. Several schemes like Nehru Rozgar Yojna, National Rural Employment Programme (NREP), Integrated Rural Development Programme (IRDP) etc. have been initiated by the government, of India in this direction. The thrust of all these schemes is to eliminate poverty and generate gainful employment opportunities for the unemployed. Thus entrepreneur can play an effective role in reducing the problem of unemployment.

2. Capital Formation

It is not possible to set up an enterprise without adequate funds. Entrepreneur as an organizer of factors of production employs his own as well as borrowed resources for the setting up of his enterprise. Entrepreneur mobilizes idle savings of the public and put them to productive use. In this way he helps in capital formation, which is so essential for the industrial and economic development of a country. Various development banks like ICICI, IFCI, IDBI; SFCs, SIDCs take initiative in promoting entrepreneurship through assistance to various agencies involved in EDP and by providing financial assistance to new entrepreneurs.

3.Balanced Regional Development

Small scale units can be set up in industrially backward and remote areas with limited financial resources. Successful EDP’s assist in accelerating the pace of industrialization in the backward areas and reduce the concentration of economic power in the hands of a few, Entrepreneurs feel like taking advantage of the various concessions and subsidies offered by the state and central government. Success story of entrepreneurs set right example for others to follow and this accelerates the pace of industrialization in the backward areas. Setting up of more units leads to more development of backward areas and balanced regional development.

4. Use of Local Resources

In the absence of any initiative local resources are likely to remain unutilized. Proper use of these resources can result in the progress or development of the area and that too at lower cost. Alert entrepreneurs seize the opportunity and exploit it in the best interests of the area and industry. Effective EDPs can help in the proper use of local resources by providing guidance, assistance, education and training to the prospective entrepreneurs.

5.Improvement in per Capital Income

Entrepreneurs are always on the look out for opportunities. They explore and exploit the opportunities. Entrepreneurs take lead in organizing various factors of production by putting them into productive use through the setting up of enterprises. More enterprises will lead to more production, employment and generation of wealth in the form of goods and services. It will result in the increase in the overall productivity and per capita income in the country. EDPs play a positive role in the setting of more units and thus help in generation of more employment and income.

Measurement of Overall Cost of Capital

Overall cost of capital means the weighted average of the cost of each component of capital. It repre­sents the combined cost of capital of various sources such as debt, preference, equity and retained earn­ings.

The measurement of overall cost of capital involves the following steps:

Step 1:

Computing specific cost of capital for each source of capital like cost of equity, cost of debt, cost of retained earnings and cost of preference shares.

Step 2:

Assigning proper weights to specific costs; the weight may be the book value or market value.

Step 3:

Multiplying the cost of each source by appropriate weights to derive total weighted cost.

Step 4:

Dividing the total weighted cost by total weight. We know two types of weights can be used for computing the overall cost of capital: Book value and market value.

These are discussed below:

i. Book Value:

Under this method, the book value of different sources of finance is used as weight for computing overall/weighted average cost of capital. Here it has been assumed that new finances are raised in same proportion as the firm currently has in its capital structure. Book value weight is the proportion of book value of various sources of capital in the capital structure.

So for example, the weight for equity will be EB/B, where EB is the book value of equity and B is the total book value of all the sources of capital. Hence overall cost of capital or weighted average cost of capital (WACC) using book value weight may be calculated as:

Where, KO = Overall cost of capital,

ADVERTISEMENTS:

Ke = Cost of equity.

EB = Book value of equity capital.

B = Total book value of all the sources of capital,

Kr = Cost of retained earnings,

RB = Book value of retained earnings,

Kp = Cost of preference shares,

PB = Book value of preference shares,

Kd = Cost of debt, and

DB = Book value of Debt.

i. Market Value:

This method uses the current market price of different sources of capital as weight for computing overall/weighted average cost of capital. It is a more realistic and reasonable method for computing overall cost of capital because the market value of various sources of capital closely approximates the actual amount to be received from issuing such securities and the costs of spe­cific sources of capital are calculated using market values.

Market value weight is the proportion of market value of various sources of capital in the capital structure. So for example, the weight for equity will be EM/M where EM is the market value of equity and M is the total market value of all the sources of capital.

Hence the overall cost of capital or weighted average cost of capital (JV4CC) using market value weight may be calculated as:

WACC = Ko = Ke EM/M + Kr RM/M + KP PM/M + Kd DM/m

Where, Ko = Overall cost of capital,

Ke = Cost of equity,

EM = Market value of equity capital,

M = Total market value of all the sources of capital,

Kr = Cost of retained earnings.

RM = Market value of retained earnings,

KP = Cost of preference shares,

PM = Market value of preference shares,

Kd = Cost of debt, and

DM = Market value of debt.

Example 4.1:

Capital structure of Anuradha Ltd., along with respective specific cost of capital is given below.

You are required to compute the weighted average cost of capital using:

(a) Book value as weight and

(b) Market value as weight.

So, weighted average cost of capital using book value weight is 13.6% and using market value weight is 13.89%.

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