Entrepreneurship development

Unit
1
Part
A
1. Define entrepreneur
According to Noah Webster, "an entrepreneur is one who assumes risk
and management of business.
2. What are the skills needed by an entrepreneur ?
● Analytical skills
● Negotiation skills
● Interpersonal skills
● Flexibility to work under changing condition
3. What is an enterprise ?
An enterprise is the basic unit for economic organisation. It transacts with
other unit in the economy, it produces a product worth more than the resources
used.
4. Write any four qualities of entrepreneur ?
● Inner drive to succeed
● Strong belief in themselves
● Search for new ideas and innovation
● Openness to change
5. What are the factors affecting entrepreneurship growth ?
● Social factors
● Cultural factors
● Economic factors
● Personality factors
● Psychological factors
6. What are the types of Entrepreneur?
● Innovating Entrepreneur
● Imitating Entrepreneur
● Fabian Entrepreneur
● Drone Entrepreneur
Part B
1. What are the characteristics of a successful
entrepreneur ? Entrepreneurs tend to:
● Capacity to take risk
● Capacity to work hand
● Above average intelligence and wide knowledge
● Self Motivation
● Vision and foresight
● Willingness to defer consumption
● Imagination initiative and emulation
● Incentive ability and sound judgment
● Flexibility and sociability
● Desire to take personal responsibility.
● Desire to seek and use feedback
● Persistence in the face of adversity
● Innovativeness and future orientation
● Mobility and drive
● Creative Thinking.
 ● Strong need for achievement
● Ability to Marshall resources
● High degree of ambition
● Will to conquer & impulse to fight.
● Will to prove superior to others.

2. What are the various types of entrepreneurial personality ?

There are 9 key types of personality and understanding each will help you
enjoy your business more and provide your company with what it needs to
grow. This entrepreneur personality profile is
based on the 9-point circle of the Enneagram.

The 9 Personality Types of Entrepreneurs

1. The Improver: If you operate your business predominately in the
improver mode, you are focused on using your company as a means to
improve the world. Your overarching motto is: morally correct companies
will be rewarded working on a noble cause. Improvers have an
unwavering ability to run
their business with high integrity and ethics.
Entrepreneur example: Anita Roddick, Founder of The Body Shop.
2. The Advisor: This business personality type will provide an extremely
high level of assistance and advice to customers. The advisor's motto is:
the customer is right and we must do everything to please
them. Companies built by advisors become customer
focused Entrepreneur example: John W. Nordstrom,
Founder Nordstrom.
3. The Superstar: Here the business is centered around the charisma
and high energy of the Superstar CEO. This personality often will
cause you to build your business around your own personal brand
Entrepreneur example: Donald Trump, CEO of Trump Hotels & Casino
Resorts.
4. The Artist: This business personality is the reserved but highly
creative type. Often found in businesses demanding creativity such
as web design and ad agencies. As an artist type you‟ll tend to
build your business around the unique talents and creativities you have.
5. The Visionary: A business built by a Visionary will often be based on
the future vision and thoughts of the founder. You will have a high
degree of curiosity to understand the world around you
and will set-up plans to avoid the landmines.
Entrepreneurial example: Bill Gates, Founder of MicroSoft Inc.
6. The Analyst: If you run a business as an Analyst, your company is focus
on fixing problems in a systematic way. Often the basis for science,
engineering or computer firms, Analyst companies excel
at problem solving.
Entrepreneurial example: Intel Founder, Gordon Moore.
7. The Fireball: A business owned and operated by a Fireball is full of
life, energy and optimism. Your company is life-energizing and makes
customers feel the company has a get it done attitude in a
fun playful manner.
Entrepreneurial example: Malcolm Forbes, Publisher, Forbes Magazine.
 8. The Hero: You have an incredible will and ability to lead the world and
your business through any challenge. You are the essence of
entrepreneurship and can assemble great companies.
Entrepreneurial example: Jack Welch, CEO GE.
9. The Healer: If you are a Healer, you provide nurturing and harmony
to your business. You have an uncanny ability to survive and persist
with an inner calm.

3. What are the knowledge and skills of an

entrepreneur ?
1. Idea generation & scanning of the best suitable idea
2. Determination of the business objective
3. Product analysis and market research
4. Determination of form of ownership
5. Completion of promotional formalities
6. Raising necessary funds
7. Procuring machine & material
8. Recruitment of men
9. Undertaking the business operations

Unit 2
1. What is business environment ?
It is the sum total of all the external and internal factors that influence a
business.
2. What is entrepreneurship development programme (EDP) ?
It is the programme designed to help a person in strengthening his
entrepreneurial motive and in acquiring skills and capability necessary for
playing his entrepreneurial role effectively
3. What are the contents of EDP ?
● Introduction to entrepreneurship
● Motivation training
● Management skills
● Support systems and procedures
● Fundamentals of project feasibility study
● Plan visits
4. What are the phases of EDP ?
● Pre-training
● Training
● Post- training
5. Write a brief note on SISI
Small Industries Service Institute was established in 1956. It is in
established one in each state to provide consultancy and training to
small entrepreneurs Advantages
● Technical consultancy
● Training facility
● Testing facility
● Market assistance
6. Define Training
 Training may be defined as any procedure initiated by an enterprise
which intends to foster
and enhance learning among the employees working in the enterprise. So
far as the training in small-
scale units is concerned, the owner himself takes the responsibility for
developing and conducting the
training programmes.
7. What are the methods of training?
1. on the job training
[Link] training
3. Job Rotation
4. outside training.
8. What is Apprenticeship training?
It combines both formal classroom learning and on the job experience.
This kind of training programmed is provided mainly in the technical
cadres. Plumbers, electricians and bankers are example or such training.
9. How training is given in the small scale industries?
● The training opportunities for both skilled and unskilled employees.
● Fear that the trained employees would demand for higher salaries
● Employees training will dislocate their schedule
● Imparting training to employees involves sizeable expenses.
Part B
1. Explain about entrepreneurship development programme
Entrepreneurship Development Programme (EDP) is a programme which
helps in developing entrepreneurial abilities. The skills that are required to
run a business successfully is developed among the individuals through
this programme.
Objectives of EDPs:
1. Develop and strengthen their entrepreneurial quality (i.e.,) motivation
or need for the
achievement.
[Link] environmental setup relating to small industry and small
business.
3. Select product
4. Formulate project for the product.
5. Understand the process and procedure involved in setting up an small
enterprise.
6. Know the sources of help and support available for starting a small scale
industry.
[Link] the necessary managerial skills required to run a small
enterprise.
8. To know the pros and cons in becoming an entrepreneur.
[Link] the needed entrepreneurial disciplines.
Course content of EDP :
● General Introduction to Entrepreneurship
● Motivation training
● Management skills
● Support systems and procedures
● Fundamentals of project feasibility study
● Plan visits

2. What are the Institutions that support small

entrepreneurs ? Institutional support to small
entrepreneurs
SIDO (Small Industries Development Organisation)
SIDO is a subordinate o ce of the department of SSI and ARI. It is an apex
body and monitoring the policies for formulating, coordinating and
monitoring the policies and programmes for promotion and development of
small scale industries. The main functions of SIDO are classi ed into
(1)Coordination - To evolve national policies, to coordinate between
various govts. Coordinate the programmes for the development of
industrial estates.
(2)Industrial development - To reserve items for production by small scale
industries, render required support for the development of ancillary units
(3)Extension - To improve technical process, production, selecting
appropriate machinery, preparing factory layout and design.
NSIC ( National Small Industries Corporation )
NSIC an enterprise under the union ministry of industries, was set up in
1955 to promote, aid and foster the growth of small scale industries in the
country, to provide machinery on ire-purchase scheme to SSI, to provide
equipment leasing facility, to help in export marketing of the provided
products of SSI, to participate in bulk purchase programme of the
Government, to impart training in various industrial trades, to undertake
the construction of industrial estates.
SSIB (Small Scale Industries Board)
The government of India constituted a SSIB in 1954 to advice on
development of small scale industries in the country. SSIB is also known
as central small industries board. SSIB is created to facilitate coordination
and inter institutional linkages. It is an apex advisory body to render
service, advice to the government to all issues pertaining in the
development of SSI. 'Industrial minister is the Chairman'.
SSIDC (State Small Industries Development Corporations)
SSIDC were set up in various states under the companies act 1956, as
state government undertaking to cater to the primary developmental
need of the tine, village industries in the state union
territories under this jurisdiction.
Important functions are (i) to procure and distribute scarce raw materials
(ii) to supply machinery on hirepurcase system (iii) to provide assistance
for marketing of the products of SSI.
(iv) to construct industrial estates/ sheds, providing allied infrastructure
facilities and their maintenance.
SISIs (Small Industries Service Institutes)
The SISIs are set up to provide consultancy and training to small
entrepreneurs both existing and prospective. The main functions are,
To serve as interface between central and state government To render
technical support services
To supply promotional programmes To conduct EDP programmes
DICs (The District Industries Centres)
DICs was started on May 8, 1978 with a view to provide integrated
administrative framework at the distinct level for promotion of small
scale industries in rural areas. Functions : The DICs role is mainly
promotional and development (i) To conduct industrial potential surveys
keeping in view the availability of resources in terms of material and
human skills, infrastructure demand for product etc. To prepare techno-
economic surveys and identify product lines and then to provide
investment advice to entrepreneurs.
 (ii) To prepare an action to effectively
implement the schemes identified.

3. What are the role of government in supporting entrepreneurship ?

There are no doubts that governments should create different types of
support institutions:
i) To provide information on regulations, standards, taxation,
customs duties, marketing issues;
ii) To advise on business planning, marketing and accountancy, quality
control and assurance;
iii) To create incubator units providing the space and infrastructure
for business beginners and innovative companies, and helping them
to solve technological problems, and to search for know-how
and promote innovation; and
iv) To help in looking for partners. In order to stimulate entrepreneurship
and improve the business environment for small enterprises.
Policies And Schemes For Promotion Of MSME Implemented By State
Governments
All the State Governments provide technical and other support services to
small units through their
Directorates of Industries, and District Industries Centres. Although the
details of the scheme vary
from state to state, the following are the common areas of support.
1. Development and management of industrial estates
2. Suspension/deferment of Sales Tax
3. Power subsidies
4. Capital investment subsidies for new units set up in a particular district
5. Seed Capital/Margin Money Assistance Scheme
6. Priority in allotment of power connection, water connection.
7. Consultancy and technical support

Government of India runs a scheme for giving National Awards to micro,

small and medium scale entrepreneurs providing quality products in 11
selected industry groups of consumer interest. The
winners are given trophy, certificate and a cash price of Rs. 25000/- each.
STATE GOVERNMENTS INCENTIVES FOR INVESTORS
Many state governments are offering incentives to attract investment in
their states. Many state governments in India offer attractive incentive
packages which include incentives such as:
● Land at subsidized prices or Industrial sheds to set up small scale
industrial units.
● Tax concessions for a number of years. These may include
exemption from sales tax etc for a set period of time.
● Electric power supply at a reduced tariff.
● Loans and subsidies at very attractive rates of interest.
INCENTIVES FOR SETTING UP BUSINESS IN BACKWARD AREAS
Some of the incentives offered are:
 ● Transportation subsidies to promote industries in areas that are
not easily accessible, like remote hilly areas. A subsidy of 50% to
90% on transportation costs is available under this
● scheme.
● A Subsidy at the rate of 15% of the investment amount in
plant and machinery is given under
● the capital investment subsidy scheme.
● A subsidy for interest relief is also provided at a rate of 3% for
new industrial units in some areas.

Unit 3
1. What is selection of product?
It is the first major step in the setting up of a business enterprise.
Choice of the right product is to be produced is the first essential of
success in entrepreneurship.
2. What are the assessments of project feasibility?
o Technical Feasibility
o Economic Viability
o Financial Feasibility
o Managerial Competence
o Implementation Scheme
3. What is Technical feasibility?
Identifying the technical specification of the product in terms of its
functional design, adaptability of new customer demand, durability, and
reliability of performance, acceptable level of
obsolescence, safety and standardization.
4. What is Project?
It is defined as a typically has a distinct mission that it is designed to
achieve and a clear termination point, the achievement of the mission.
5. What is Project Appraisal?
It means the assessment of a project. Project appraisal is made both
proposed and executed
6. What is project formulated?
Project formulated is the systematic development of a project idea for
the eventual purpose of
arriving at an investment decision. It involves a step by step investigation
and development of project
idea.
7. What is feasibility report?
A feasibility report or a project report of a new enterprise or of an
expansion of the existing unit provides in general, primary economic
information, financial data and technical data which serve a quite number
of discrete economic processes or cost structure of the industry
concerned.
Part B
1. What are the criteria for selection of the product ?
SWOT Analysis
Introduction
It has always been important for a business to know and understand how it
fits in and interacts with the surrounding environment on both an internal
(office/factory/shop environment) and external view (how your business
operates with the outside world). Analyzing the Business:
The most influential way of doing this is to perform a SWOT analysis of the
company. It is a common phrase used to abbreviate Strengths,
Weaknesses, Opportunities and Threats.
Each term is a heading for a separate analysis of the business but
they can be related as seen below:
Performing SWOT :
Recognizing the Strengths and Weaknesses before tackling the
Opportunities and Threats is the best
way to approach the analysis: the more Strengths and Opportunities the
better they can both be seen as the bigger influences for the success of
your company Strengths:
The Strengths can be considered as anything that is favourable towards
the business for example:
1. Currently in a good financial position (few debts, etc)
2. Skilled workforce (little training required)
3. Company name recognized on a National/Regional/Local level
4. Latest machinery installed
5. Own premises (no additional costs for renting)
6. Excellent transport links (ease of access to/from the Company)
7. Little/non-threatening competition
Weaknesses
1. Currently in a poor financial position (large debts, etc)
2. Un-Skilled workforce (training required)
3. Company name not recognized on a National/Regional/Local level
4. Machinery not up to date (Inefficient)
5. Rented premises (Adding to costs)
6. Poor location for business needs (Lack of transport links etc)
7. Stock problems (currently holding too much/too little)
8. Too much waste
Opportunity :
1. Good financial position creating a good reputation for future bank
loans and borrowings
2. Skilled workforce means that they can be moved and trained into
other areas of the business
3. Competitor going bankrupt (Takeover opportunity?)
4. Broadband technology has been installed in the area (useful for Internet
users)
5. Increased spending power in the Local/National economy
6. Moving a product into a new market sector
Threats:
1. Large and increasing competition
2. Rising cost of Wages (Basic wage, etc)
3. Possible relocation costs due to poor location currently held
4. Local authority refusing plans for future building expansion
5. Increasing interest rates (increases borrowing repayments, etc)
 6. End of season approaching (if you depend on hot weather, etc)
7. Existing product becoming unfashionable or unpopular
Using the Analysis
Once the SWOT analysis is complete, it will then be time to put it all
together and look closely to form a strategy. This will involve how you
can explore the Opportunities and how to eliminate or deal
with the Threats. This may well depend on your company‟s original
objectives and goals but the whole process will certainly give an overall
look at the current position of your business.

2. What are the various types of ownership structure and how to select the
appropriate ownership structure for a business ?
Ownership
Structure
Proprietorship
Partnership firm
Company
Co-operative society
Selection of an appropriate form of ownership structure
Nature of business- if business require pooling of capital and skill are
generally run as partnership
Areas of operation- local operation require proprietorship. National and
international businesses require company ownership structure.
Degree of control – direct control over business operation is required
suitable ownership may be proprietorship.
Capital requirement- if capital requirement is more so it is better to
choose partnership firm.
Duration of business – if business have a definite period of time it suitable
for proprietorship or partnership.
Government regulation- if the owner not like much more government
involvement so he can choose partnership or proprietorship.

3. Explain the budgeting for a project profile preparation ?

Here are seven tips and practices for creating a budget that supports your
project:
1. The hardest project budget you‟ll ever write is the first one. After
that, you have both a model for budgeting similar projects, and the
experience for writing detailed budgets going forward
2. Learn from other projects. Find a past project that was similar in type
or scope to the current one,and use it as a model
3. Know your core costs. Start by entering coststhe absolute must-haves
to get the project up and running. They include team members,
equipment, software, travel, etc. Next, compare those core costs
to the total budget.
4. Prepare to change budget estimates. Most initial estimates are just that
estimates. With the common occurrences of scope creep, unexpected
surprises and the nature of doing business, at some point in the project
the budget can easily change. This fact just underscores the need to
manage the project
budget continually
 5. Monitor resources. Ensure that your team members working on the
right tasks to their full potential.
6. Be transparent. Keep your team informed of the evolving
budget forecast. Communicate what's expected of them to stay
within budget.
7. Manage scope. Scope creep busts budgets. To avoid unplanned
work that leads to cost overruns,create change orders for work that goes
beyond initial project requirements, with accurate projections of
additional cost. Seek additional funding for the project to cover change
orders.

4. How do you prepare the feasibility report

?
● General Information of the industry
● Preliminary analysis of alternatives
● Project description
● Marketing plan
● Capital requirements and cost
● Operating requirements and cost
● Financial analysis
● Economic analysis

Unit 4
1. What is Venture capital?
It is a form of equity financing of projects with high risk and return. It is
meant for financing high technology projects.
2. What is market assessment?
Different customer requires different types or qualities of a product. A
small scale unit cannot meet the requirement of all types of customers.
Therefore, it has to choose a target market or group of customers. After
identifying the target market it should estimate the total demand.
3. What is market segmentation?
A market consists of heterogeneous customers who differ in terms of
their needs, preference and buying capacity. A different marketing
approach is necessary for every customer group
4. How to select a suitable channel?
The success or failure of an enterprise inter alia depends upon to a great
extent, the selection of a suitable channel of distribution. There are a
number of factors that must be considered when a channel of distribution
is to be selected.
5. What is distribution channel?
A channel of distribution or marketing channel is the structure of intra
company organization units and extra-company agents and dealers,
wholesale and retail through which a commodity, product or service is
marketed.
6. What is meant by incubation in entrepreneurship?
An organization designed to accelerate the growth and success of
entrepreneurial companies through an array of business support
resources and services that could include physical space, capital,
coaching, common services, and networking connections.
 Part B
1. What are the factors to be considered before launching a product ?
 The following are the factors to be considered before product launching,
they are:
● Design attractive packaging
● Determine the target audience
● Implement a unique slogan
● Know your competition
● Consult a public relations firm
● Write a product sheet
● Launch a website
● Purchase advertising
● Hold a press conference
●
2. Explain about incubation in entrepreneurship ?
Incubation
"Business incubation is a unique and highly flexible combination ofbusiness
development processes, infrastructure and people designed to nurture new
and small businesses by helping them to survive and grow through the
difficult and vulnerable early stages of development."
Business incubation provides a nurturing, instructive and supportive
environment for entrepreneurs during the critical stages of starting up a
new business.
The goal of incubators is to
increase the chance that a start-up will succeed, and shorten the time and
reduce the cost of establishing and growing its business.
If successful, business incubators can help to nurture the
companies that will form the true creators of a region‟s or nation‟s future
wealth and employment.
Centre for Innovation, Incubation and Entrepreneurship was setup at the
Indian Institute of Management Ahmedabad (IIMA) with support from Gujarat
Government and
Department of Science and Technology (Government of India) to promote
innovation and entrepreneurship in India.

Role of Business Incubators

● They guide startups/ventures on how to compete with
established industry players.
● Business incubators help with the basics of business.
● They provide networking activities.
● They help startups save on operating costs.
● Incubators provide marketing assistance.
● Incubators help with market research.
● They provide high-speed internet access.
● They create long-lasting jobs for new graduates, experienced
mid-career personnel, and veteran executives.
● Incubators help with accounting/financial management.
● They provide access to bank loans, loan funds, and guarantee
programs.
● Incubators bring credibility to the company. This helps the
company receive loans and credit facilities from financial
institutions.
3. Explain briefly about venture capital and it's types ?
 Venture capital (VC) is financial capital provided to early-stage, high-
potential, growth startup companies. The venture capital fund earns
money by owning equity in the companies it invests in, which usually have
a novel technology or business model in high technology industries, such
as biotechnology and IT.

Venture capitalists (VCs) represent the most glamorous and appealing form
of financing to many entrepreneurs.
Venture capitalists typically invest in companies they anticipate being
sold either to the public or to larger firms within the next several years.
Companies they will consider investing in usually have the following
features:
● Rapid, steady sales growth
● A proprietary new technology or dominant position in an emerging
market
● A sound management team
● The potential for being acquired by a larger company or taken
public in a stock offering
There are several types of venture capital
● Private venture capital partnership
● Industrial venture capital pools
● Investment banking firms

Unit 5
1. Define Sickness in business
According to the Reserve Bank of India, a sick unit is one which incurs
cash losses for one year and is likely to continue to incur cash losses for
the current year as well as the following year.
2. What are the consequences of industrial sickness?
● Financial loss
● Loss of employment,
● Industrial unrest,
● Harms to invest,
● Wastage of scarce resources and
● Loss of public revenue.
3. What are the major causes of sickness?
Internal causes mainly relate to the poor quality of top management
External causes relate to external factors arising outside the
organization.
4. What are the roles of government in preventing the sick units?
The number of industrial units in the country has increased enormously
after the independence we have diversified industrial structure with
widespread entrepreneurship. Government is responsible for this with its
effort at creating infrastructure facilities, specialized industrial and
packaging of incentives for entrepreneurs.
5. What is the rehabilitation of sick units?
● Sick Industrial companies Act 1985
● IDBI‟s Special cell
● Sick Industrial Undertaking Cell
● Co ordination committees
● Quarterly Bank Report
● Industrial Reconstruction Bank of India
6. What are the roles of financial institution in preventing sickness?
Apex financial institution like IDBI, IFCI, ICICI and nationalized commercial
banks are in a favorable position to prevent industrial sickness. These are
to remain in constant touch with the units with market conditions as well
as the funded units are in an excellent position for receiving early warning
of sickness.
7. What are the entrepreneurial performances in India?
(a) socio-cultural background of the entrepreneur
(b)Motivational force
(c) Knowledge and ability of the entrepreneurs
(d)Financial strength
Part B
1. What do you mean by industrial sickness and what are rhe
consequences of industrial sickness ?
DEFINITION
BY SICK INDUSTRIAL COMPANIES(SPECIAL PROVISIONS) ACT, 1985, SEC
3(1) (0)
“Industrial company(being a company registered for not less than five
years) which has at the end of any financial year accumulated loss equal
to or exceeding its entire net worth and which has also
suffered cash losses in such a financial year immediately preceding such
financial year”.
EXTERNAL CAUSES
● Improper Credit Facilities
● Delay In Advancing Of Funds
● Unfavourable Investment Climate
● Shortage Of Inputs
● Import Restrictions On Essential Inputs
● Liberal Licensing Of Projects
● Change In International Marketing Scene
● Excessive Taxation Policy Of Government
● Market Recession

INTERNAL CAUSES
(FINANCIAL CONSTRAINTS)
● Inappropriate Financial Structure
● Poor Utilization Of Assets
● Inefficient Working Capital Management
● Lack Of Proper Costing And Pricing
● Absence Of Financing, Planning & Budgeting
● Improper Utilization Or Diversion Of Funds
Consequences
● Huge financial losses to the banks & financial institutions
● Loss to employment opportunities
● Emergence of industrial unrest
● Adverse effect on perspective investors and entrepreneurs
● Wastages of scarce resources
● Loss of revenue to government
2. What are the measures taken by government to combat industrial
sickness ? Governmental measures to combat industrial sickness
1. The Industrial Finance Corporation of India (IFCI) in 1948 to provide
medium & long-term credits to the public sector limited companies in
order to facilitate post-war rehabilitation & development.
2. The State Financial Corporations (SFC) were established at state level in
1951 to supplement the work of IFCI by financing medium and small-
scale industrial concerns.
3. Industrial Reconstruction Corporation of India or (IRCI) was set up with
its head quarters at Calcutta in 1971
•to revive and revitalise the closed and sick industrial concerns by
removing the shortcomings.
•to reconstruct and restructure the financial base as well as the
management of the assisted
units, besides providing financial assistance and technical/managerial
guidance.
4. Industries (Development & Regulation) Act, 1951 was further amended in
1971
-empowering
the Central Government to take over industrial undertakings which special
emphasis on sick units.
5. By Amendments in the relevant Act the IFCI with effect from 1972
was empowered to extend its assistance to Pvt Ltd Cos.
6 Foreign Exchange Regulation Act (FERA) 1973 – limited the share of
foreign companies to 40% of the total capital.
7. The Reserve Bank of India set up Tandon Committee, in 1975- guideline
was laid down
governing the participation of banks in the management of various sick
industries.
8. The RBI in 1979 conducted a study to identify the causes of sickness in
378 such large industrial
units
9. Further the government came up with several industrial policies in
order to revive the sick units
i. Soft loan scheme
ii. Merger policy of 1977
[Link] guidelines on sick units-1978
iv. New strategy 1981
[Link] committees and industrial sickness

3. What is monitoring and evaluation of business ?

Monitoring is the systematic collection and analysis of information as a
project progresses.
It is aimed at improving the efficiency and effectiveness of a project or
organization. It is based on targets set and activities planned during the
planning phases of work. It helps to keep the
work on track, and can let management know when things are going
wrong.

Monitoring involves:
1. Establishing indicators (See Glossary of Terms) of efficiency,
effectiveness and impact;
2. Setting up systems to collect information relating to these indicators;
3. Collecting and recording the information;
[Link] the information;
5. Using the information to inform day-to-day management.
6. Monitoring is an internal function in any project or organisation.

Evaluation involves:
● Looking at what the project or organisation intended to
achieve – what difference did it want to make? What impact
did it want to make?
● Assessing its progress towards what it wanted to achieve, its impact
targets.
● Looking at the strategy of the project or organisation. Did it have
a strategy? Was it effective in following its strategy? Did the
strategy work? If not, why not?
● Looking at how it worked. Was there an efficient use of resources?
What were the opportunity costs (see Glossary of Terms) of the
way it chose to work? How sustainable is the way in which the
project or organisation works? What are the implications for the
various stakeholders in the way the organisation works. In an
evaluation, we look at efficiency,
● effectiveness and impact.