Business Facilitation Centre

To cater to the specific needs of first generation entrepreneurs of North East, NEDFi started the Business Facilitation Centre (BFC) where experienced mentors are engaged to guide the entrepreneurs through out their journey.The Mentors at BFC are trained on the facilities offered by NEDFi including its financial schemes of MSE which will also help them in facilitating credit support to the deserving entrepreneurs.

The services at BFCs include the following

  • Managerial Guidance
  • Technical Support
  • Commercial Support including Marketing Linkage
  • Preparation of Project Report
  • Credit Linkage

Incetives of GOI

North East India, the conglomerate of 8 states has remained at the center of policy initiatives of Govt of India. Huge untapped natural resource and shared international boundaries have give North East unlimited scope for economic and industrial development. The region has been rightly termed as Natural Economic Zone (NEZ) and growth engine of the country. To explore these potentials Govt of India has taken ranges of initiatives through centrally sponsored schemes (CSS) collaboration with state govt. and policy based incentives. These incentives provide support for infrastructure creation, improvement of connectivity, industrial development, promotion of trade and commerce, human resource development etc.

Industrial Policies of NER

In order to attract and promote conducive investment environment in the North Eastern Region of India, the respective State Govts. have framed their own industrial policy, which are listed as below -

How to start a Business

The business plan can personally benefit the entrepreneurial team. Usually a great deal of money is at stake, and the consequences of poor decisions can affect many people for a long time. In developing and writing a business plan, the entrepreneurial team reduces these anxieties and tensions by confronting them in advance. By projecting the risks of the new venture into the future, the team comes to grips with potential negative outcomes and the possibility of failure.

Profile of the company's management - Listing the names of top executives and their qualifications and industry experience.

Kind of Business - A brief description of the industry your firm is focusing on or the new venture’s strategy. Objectives - The short term and long term objectives of the new business venture. Financial requirements - Briefly state how much finance is required indicating the degree of flexibility you are willing to show in case the investor suggests any changes in your plan.

Budget allocations - How you will be using the finance. Market Analysis - The business plan should dwell upon the prevailing competitive environment with a view to convincing the investor that his/her product/service is a niche product or service with substantial prospects for growth and capable of attaining a competitive position in the market.

Environmental Influences - The impact of the environmental influences such as political, economic, technological, socio-demographic and ecological factors that affect your area of business.

Quality - The quality control measures to be put into place for ensuring quality of the product/service. Marketing - Identify the target market which should be substantiated by a thorough market research. Once the target market has been identified, focus on the communication strategy including advertising, branding, packaging etc.

Sales Forecast - Sales forecast is primarily dependent on three factors - size of the market, fraction of the market you will be able to capture as a result of your marketing strategy and the pricing strategy. Financial Plans - A new venture must show projected profit and loss statements and cash flow statements. Human Resources - Make an organization chart with details of key executives and profiles of individuals likely to be hired. Form of Business - Describe the legal form of your business - whether it is a sole proprietorship or a partnership, public limited co., private limited co. or society, etc. Critical Risks - As a legal and moral obligation, the entrepreneur must, in the business plan, envision risks the investor would be undertaking in case he makes a choice to invest in your business. This will protect you from civil and criminal liability.

The right choice of the form of business is very crucial because it determines the power, control, risk and responsibility of the entrepreneur as well as the division of profits and losses.

The choice of the form of business is governed by several interrelated and interdependent factors:-

  • The nature of business is the most important factor. Businesses providing direct services like tailors, restaurants and professional services like doctors, lawyers are generally organised as proprietary concerns. While, businesses requiring pooling of skills and funds like accounting firms are better organised as partnerships. Manufacturing organisations of large size are more commonly set up as private and public companies.
  • Scale of operations i.e. volume of business (large, medium, small, micro) and size of the market area (local, national, international).
  • The degree of control desired by the owner(s).
  • Amount of capital required for the establishment and operation of a business.
  • The volume of risks and liabilities as well as the willingness of the owners to bear it.

Comparative tax liability. Some of the forms of business organizations are:

  • Sole Proprietorship - It is a one-man organisation where a single individual owns, manages and controls the business. This form of organisation is suitable for the businesses which involve moderate risk, small financial resources, capital requirement is small and risk involvement is not heavy like automobile repair shops, small bakery shops, tailoring, etc.
  • Partnership firm - A partnership is formed by an agreement, which may be either written or oral. When the written agreement is duly stamped and registered, it is known as "Partnership Deed". Ordinarily, the rights, duties and liabilities of partners are laid down in the deed. But in the case where the deed does not specify the rights and obligations, the provisions of the THE INDIAN PARTNERSHIP ACT, 1932 will apply. Partnership is an appropriate form of ownership for medium sized business involving limited capital. This may include small scale industries, wholesale and retail trade; small service concerns like transport agencies, real estate brokers; professional firms like chartered accountants, doctors' clinic, attorney or law firms etc.
  • Co-Operatives - Co-operative organisation is a society which has as its objectives for promotion of the interests of its members in accordance with the principles of cooperation. It is a voluntary association of ten or more members residing or working in the same locality, who join together on the basis of equality for the fulfillment of their economic or business interest. It is subjected to the provisions of the Co-Operative Societies Act, 1912 or State Co-Operative Societies Act.
  • Private Limited Company - A private limited company is a voluntary association of not less than two and not more than fifty members, whose liability is limited, the transfer of whose shares is limited to its members and who is not allowed to invite the general public to subscribe to its shares or debentures. A private company is preferred by those who wish to take the advantage of limited liability but at the same time desire to keep control over the business within a limited circle and maintain the privacy of their business. The state of Sikkim has not ratified the Indian Companies Act, 1956 and therefore, Registrar of Companies does not have their presence in the state. However, for the limited purpose of registration and other statutory requirements Sikkim Companies Act of 1961 and Registration of Companies Act of Sikkim 2007 are in force in the state. And other forms of business organizations are:
  • Public Limited Company (PLC).
  • Hindu Undivided Family Business (HUF).
  • Limited Liability Partnership (LLP).
  • Societies.