Unit 5

Project Report
• A Project Report is a document which provides details
on the overall picture of the proposed business. The
project report gives an account of the project proposal
to ascertain the prospects of the proposed plan/activity.
• Project Report is a written document relating to any
investment. It contains data on the basis of which the
project has been appraised and found feasible. It
consists of information on economic, technical, financial,
managerial and production aspects. It enables the
entrepreneur to know the inputs and helps him to
obtain loans from banks or financial Institutions.
• The project report contains detailed information about
Land and buildings required, Manufacturing Capacity per
annum, Manufacturing Process, Machinery & equipment
along with their prices and specifications, Requirements
of raw materials, Requirements of Power & Water,
Manpower needs, Marketing Cost of the project,
production, financial analyses and economic viability of
the project.
• A Project report or a Business plan is a written statement
of what an entrepreneur proposes to take up.
• It is a guide or course of action of what the entrepreneur
hopes to achieve in his business and how he is going to
achieve it.
• It is a big road map.
• It Is an operating document.
 Contents of a Project Report

1.General Information: It includes the following

matters:
• Name and address of the business
• Promoters background/experience
• Memorandum and Articles of Association
• Industry Profile
• Stakeholders of the business
• Nature of business and its customers.
• History and other details of the entrepreneur.
• Management and Organisation set up
2. Executive Summary : A project report must state the objectives
of the business and the methods through which the business can
attain success. The overall picture of the business with regard to
capital, operations, methods of functioning and execution of the
business must be stated in the project report. It must mention the
assumptions and the risks generally involved in the business.
3.Organizational Plan: It includes the following matters:
• Forms of ownership like sole proprietorship, partnership or
company form of business,
• Administrative structure i.e., functional structure or divisional
structure, span of control etc.,
• Hierarchical structure of management.
• Identification of management team: It includes the name and
address and other details of the directors and top level
managers including their vision and mission for the
organization.
4.Business Venture: It includes the following matters:
• Product profile and product details
• Services to be offered
• Scale of business operation
• Type of employees required
• Types of technology required.
5.Manpower Planning: It includes the following
matters:
• Manpower requirement by skilled and semi-skilled,
• Sources of manpower supply,
• Cost of procurement,
• Training requirement and its cost.
6. Production Plan: It includes the following matters:
• Land and Building: Land area, construction area,
plant layout etc.
• Technology and manufacturing process:
• Site/Location of the Project
• Plant & Machinery:
• Raw Materials:
• Capacity of the Plant
• Research and Development
7. Project Description:
• Contracts
• Communication System
• Project monitoring and implementation
• Transport Facilities
8.Marketing Plan: It includes the following matters:
• End-users of the product,
• Present demand,
• Pricing policies,
• Availability of substitutes
• Promotion policies,
• Marketing strategies,
• Physical distribution policies,
• New market likely to be available,
• Channels of distribution,
• Competition
• Proposed market research etc.
9. Financial Plan: It includes the following matters:
• Fixed capital requirement,
• Requirement of Working Capital: It includes working
capital required, sources of working capital, nature and
extent of credit facilities offered and available etc.
• Sources of Finance: It includes internal sources as well
as external sources of financing like equity capital and
debt capital, unsecured loans from
Promoters/associates, internal accruals, term loans,
Government subsidy/grant.
• Cash flow projections on the basis of Cash Flow
Statement,
• Procurement of fixed assets.
• Total income, operative net profit,
• Profitability Projections
10. Miscellaneous/Appendices:
• Types of business risks,
• Contract with vendors,
• Market research reports,
• Mode of transport and communication,
• Contingency plan.
• Copy of documents relating to incorporation of
partnership business,
• Projected Profit & Loss Account
11. Socio-economic benefits of the business plan i.e.
importance of the project to national economy,
availability of government support, if any.
 Intellectual Property Rights
Intellectual property rights (IPR) are the rights given to
persons over the creations of their minds: inventions, literary
and artistic works, and symbols, names and images used in
commerce. They usually give the creator an exclusive right
over the use of his/her creation for a certain period of time.
• Intellectual property rights are customarily divided into
two main areas:
1. Copyright and rights related to copyright:
• The rights of authors of literary and artistic works (such as
books and other writings, musical compositions, paintings,
sculpture, computer programs and films) are protected by
copyright, for a minimum period of 50 years after the
death of the author.
2. Industrial property: Industrial property can be divided
into two main areas:
• Protection of distinctive signs, in
particular trademarks and geographical indications.
– Trademarks distinguish the goods or services of one
undertaking from those of other undertakings.
– Geographical Indications (GIs) identify a good as
originating in a place where a given characteristic of the
good is essentially attributable to its geographical origin.
– The protection of such distinctive signs aims to stimulate
and ensure fair competition and to protect consumers, by
enabling them to make informed choices between various
goods and services.
– The protection may last indefinitely, provided the sign in
question continues to be distinctive.
• Industrial designs and trade secrets: Other types of
industrial property are protected primarily to stimulate
innovation, design and the creation of technology. In
this category fall inventions (protected
by patents), industrial designs and trade secrets.
 Need of IPR
• Encourages innovation: The legal protection of new creations
encourages the commitment of additional resources for further
innovation.
• Economic growth: The promotion and protection of intellectual
property spurs economic growth, creates new jobs and industries,
and enhances the quality and enjoyment of life.
• Safeguard the rights of creators: IPR is required to safeguard
creators and other producers of their intellectual commodity,
goods and services by granting them certain time-limited rights to
control the use made of the manufactured goods.
• It promotes innovation and creativity and ensures ease of doing
business.
• It facilitates the transfer of technology in the form of foreign
direct investment, joint ventures and licensing.
Future of entrepreneurship in India