eChapters

1. National Sources of Finance

A. Medium and Long-term Sources

i. Venture Capital: Funding from affluent investors who prefer to invest their money in enterprises with long-term growth prospects is referred to as venture capital. The individuals who provide such investments are known as venture capitalists. Venture capitalists usually acquire equity in the emerging company in return for their backing, which is typically provided as preferred stock.

Venture Capital is a funding source for new businesses. ‘Venture capital refers to investments made in ‘new and untested enterprises’ that do not have a solid growth history’. It comes as capital invested as shareholdings, aimed at establishing and creating firms focused on innovative concepts or new technologies that carry a high perceived risk, yet possess the potential for rapid expansion. Venture capital is generally arranged as equity or quasi-equity f inancial instruments. A venture capital firm acts as an intermediary between investors seeking high returns on their investments and entrepreneurs who require funding to launch their businesses.

Types of Venture Capital Funding

The various types of venture capital are classified according to their applications at various stages of a company’s lifecycle. Early stage financing, expansion f inancing, and acquisition / buy out financing are the three main types of venture capital.

In general, an unwell entity is one that fails to regularly create a surplus and frequently relies on outside funds to exist. The Sick Industrial Enterprises (Special Provision) Act 1985 characterized sickness as “a financial loss over two successive accounting periods and a total loss that is equal to or exceeds the net assets of the enterprise at the conclusion of the second accounting period”.

Revised Definition of Sick Smallscale Industry “A small scale industrial unit is deemed sick if it has incurred losses at the conclusion of the accounting year that are equal to or exceed 50% of the highest level of its net assets in the immediately preceding five f inancial years”.

Symptoms of Sickness

The continuation of many signals for a long time is called a symptom of a disease, and the various symptoms are ultimately reflected in the operation of the facility (capacity utilization rate, financial capital ratio, stock market value practice in various financial areas, production, marketing and labor relations in the industry).

Among the key signs are

• Deterioration of financial relations

• Review delay

• Lack of constant cash flow

• Continued decline in stock prices

• late payment obligations

STARTUP India is an innovative initiative started to help people who want to start their own business. These individuals are reflective and resilient. Therefore, the government provides assistance for them to realize their concepts and expand. The Government of India introduced the ‘Startup India’ initiative on January 16, 2016, in New Delhi.

What is a Start Up?

According to the government notification, the journal number will replace the G.S.R. 364(E) dated 11 April 2018 as amended by Notification No. G.S.R. 34 (E) on 16 January 2019 by DPIIT.

Definitions

In this announcement: An entity shall be measured as a Startup

• Any entity for a period of ten years from the date of incorporation/registration, if registered as a private limited company (as defined in the Companies Act, 2013) or listed as a partnership (registered under Section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India.

• The revenue of the entity has not exceeded one hundred crore rupees for any of the financial years since registration/registration.

• The business unit works to innovate, develop or improve products, processes or services, if there is a scalable business model with high potential for performance or value creation. But the enterprise created by revolution, by revitalization of the existing business, is not called a “start-up”.

Introduction

Creativity and innovation are planned alternatives that an entrepreneur can use to promote his business. Business is a creative process. Success in business today requires constant innovation. Creating new solutions to problems, and the ability to create new products or services for a changing market, is part of intellectual capital. They also provide a company or business organization with a competitive advantage. Creativity is the basis of creativity. It is a process and skill that can be developed and managed throughout the organization.

Learning Objectives

• Describe the different types of creativity and Innovation

• Explain the process of creativity and phases of innovation

Creativity Definition

Creativity has different meanings. Many researchers have said that creativity is the generation of new ideas that include a creative process or a new solution to a problem and the original resolution of problems. It can also be said that the installation of the innovative solution is easy.

The term entrepreneur is derived from the French word entreprendre, which translates to “to undertake. “In the context of business, this refers to the initiation of a business. According to the Merriam-Webster dictionary, an entrepreneur is defined as an individual who organizes, directs, and takes risks in a business or enterprise. An entrepreneur can be described as “a person who establishes, organizes, and directs any enterprise, particularly a business, typically involving significant initiative and risk. “ Peter F. Drucker (1985) characterizes an entrepreneur as a person who continuously seeks change, responds to it, and leverages it as an opportunity. Innovation serves as a unique tool for entrepreneurs, enabling them to perceive change as an opportunity for launching another business or service. An entrepreneur is often regarded as an innovator – a creator of new ideas and business processes. Essential leadership skills and effective team-building abilities are frequently considered crucial traits for successful entrepreneurs. Economist Robert Reich (2002) regards leadership, management skills, and team building as vital attributes of an entrepreneur. The realm of entrepreneurship is influenced by a variety of combinations of socio-economic, psychological, cultural, and additional factors, including caste/religion, family background, educational level, level of insight, professional experience, migration capabilities, entrepreneurial spirit, nature of the business, investment capacity, and ambition/moderation. Entrepreneurship is often defined as “the ability and desire to develop, organize, and manage business activities and associated risks for profit”.

Entrepreneurship serves as a crucial element of economic development. In times of economic crisis, the significance of business development rises. Entrepreneurship has been linked to enhanced economic growth, greater wealth, and an elevated quality of life. In developing countries like India, the planning and implementation of entrepreneurship program development is essential for the standard of living of most of the backward areas due to their over-dependence on agriculture for employment (Uplaonkar and Biradar 2015). Entrepreneurship development therefore seems to be the best option to find job opportunities, generate income, reduce poverty and improve nutrition, health and overall food security in the national economy.

Entrepreneurship refers to the ability to take big risks to make a profit, to succeed, to manage and organize a new business. Entrepreneurship is a process in which a person becomes aware of owning a business as an alternative and develops new ideas for business. In addition, they try to learn the whole process of becoming an entrepreneur, and an initiative has been taken to develop entrepreneurship. It shows the practical application of all qualities such as innovation, creativity and risk in a work environment. The development of agriculture requires innovations in agricultural business. Stabilizing innovations and increasing productivity is a long-term and difficult business.

Project Implementation

Project Implementation is the process of putting a project plan into action. It takes place after the planning phase; planning phase includes key objectives, timeline and budget of the project. Execution includes organizing resources and assessing performance to guarantee the project stays within its anticipated scope and budget. It also involves handling any unforeseen issues in a way that keeps a project running smoothly.

Steps for Project Implementation

1. Assess the Project Plan: Before implementing the project, it is essential to create a plan that satisfies the expectations of the management, customers, and other stakeholders. The project manager must assess the project plan and guarantee that all team members comprehend the project and its requirements. The project manager must define the roles and the time required to complete each role. This step sets the standard for cooperation at work.

2. Execute the Plan: At this stage, the real work on the project begins. The project manager regularly discusses progress with his team. It measures progress along a timeline and tracks resource usage.

3. Make required Changes: Sometimes, during the implementation of the project, the manager has to make changes at the request of the customers or in other situations. Make these changes as needed, based on the design plan for solutions. Continue to interact with the team and ask questions to determine areas where they need more support.

4. Examine Project Data: It is crucial to gather and evaluate data throughout the execution phase of the project to assess the advancement of the project in comparison to its initial plan. Now, the day manager can use many project management software and information technology to collect and analyze real time data.

5. Assess the Feedback: After the conclusion of the project, it is crucial to gather feedback regarding the project outcomes from the clients, the project team and other stakeholders. This assists in determining the number of activities in the project that were executed as intended and aspects that require enhancement moving forward.

Investment Appraisal Techniques

A financial evaluation/ appraisal of Project considers the possible compensations of completing the Project against the anticipated expenses. The assessment of the project will rely on several factors, including the Size of the project, time span of project etc. The motivation behind the financial evaluation is to decide if the project is advantageous, contrasting its expenses and its expected normal advantages. These methods are primarily designed to evaluate the effectiveness of a new project. This investment evaluation technique includes Payback Period, Internal Rate of Return (IRR), Net Present Value (NPV), Accounting Rate of return (ARR), Profitability index etc. Each of these techniques evaluates the project from various angles and provides very useful insights. Investment appraisal techniques are divided in two parts namely, discounted cash flow methods and non-discounted cash flow methods.

Non-Discounted Cash Flow Techniques

Future cash flows are not brought to their Present value through Non-Discounted Cash flow methods. Non-Discounted Cash flow methods are also categorized into the following two techniques.

Construction of any building, airplane, poultry farm, dairy farm, agricultural business, even a new product are known as projects that require money and time, thus, all projects need to be finished in the least amount of time possible. All projects involve multiple activities, and all these actions need to be logically coordinated and successfully completed within the expected time frame. PERT and CPM are useful techniques for this purpose. PERT stands for Program Evaluation and Review Technique and CPM represent Critical Path Method. These techniques separate projects into various tasks and events and organize them logically in a diagram called a grid. Time estimates are obtained to conduct these different tasks and the total project time is decided based on these estimated times. With the help of these methods, the project can be completed in the given time and it also provides important information about the various activities related to the project and the project manager knows the importance of the various activities to which he pays more attention to reduce the time spent on the project.

Project management involves the use of knowledge, skills, tools, and techniques to design activities to fulfill project requirements. In other words, project management encompasses the skills, tools and management processes needed to successfully implement a project.

Project Management comprises

• Skill. Expert knowledge, skills and experience are necessary to reduce the risk level of a project and thereby enhance the likelihood of its success.

• A set of tools. Project managers use a variety of tools to improve their chances of success. Examples include document templates, records, planning software, modeling software, inspection checklists and inspection forms.

• Sequence of processes. Various Management methods and procedures are necessary to oversee and regulate the time, cost, quality and scope of projects. For example, time management, quality management, cost management, change management, problem management and risk management.

Project Management is adequate when or when should you use project man agement techniques

The term project originates from the Latin word projectum derived from the Latin verb proicere, “before an action” which originates from pro-, signifying precedence, something that occurs prior to something else in timing, and icere, “to do”. The term “project” therefore initially signified “before an action. “. A project is a distinct kind of production system that produces a sole unit of product. Like, building a ship or a house, moving a department or a plant, developing a new product or performing a study are examples of such one-of-a-kind products.

In modern business and science, a project is a joint effort, encompassing research or design, that is carefully organized to accomplish a specific goal. The project can also be described as a collection of interconnected tasks to be performed within a defined timeframe and under specific budgetary and other constraints. Projects can be additional defined as temporary instead of enduring social systems or work systems that are formed by teams within or between organizations to achieve specific tasks under time constraints. And all must be expertly managed to deliver the on-time, on budget results, learning, and integration that organizations need. A project in business and science is a provisional endeavor engaged in to produce a distinct item, service, or result. Basically, it is planned to attain a specific goal. The aim of a project is to achieve its goal and subsequently conclude.

Introduction

As a new decade begins, the effects of climate change are being felt all around the world. Storms, floods, droughts, and wildfires are examples of events that may already be linked to climate change and that are expected to occur more frequently and intensely as well as the destruction they inflict virtually every day. The state of the world’s climate is a serious issue that requires attention. In order to create a future that is more environmentally friendly, addressing this issue is urgently required, and everyone must take this into consideration as their shared goal. Since technology is increasingly being seen as a part of the outcome.

To this end, the strengthening of national innovation systems and ensuring that people have access to effective IPPI management programmes need to be stepped up with a view to improving research and development in technologies, products and services which are needed for transformation into a more environmentally sustainable future. This crisis can’t be solved, unless there is a breakthrough technology that will make the goals achievable. This is why innovation in the field of “green” technologies will be needed and intellectual property rights will play an important role. Intellectual property rights may ensure that technological progress can be sold to allow for the continuation of research and development investment but they could also cause problems and constraints. The impact and opportunities that “Green IP” can have are therefore considerable. Regardless of their distinctions, “Green IP” will have an impact on companies from different industries, sectors, and locations. The consumer goods sector needs to improve how they go about changing the specifications for designing products that can be easily recycled and repaired.

Introduction

Green Intellectual Property Rights (IPR) is a relatively new and evolving concept that emerged in response to the growing global environmental challenges, including climate change, biodiversity loss, and resource depletion. It is an intersection between traditional intellectual property rights and environmental concerns, aiming to promote and protect innovation and technologies that have a positive impact on the environment and contribute to sustainable development.

The concept of Green IPR gained momentum as the world recognized the need for sustainable practices and solutions to address the adverse effects of industrialization and economic growth on the environment. Intellectual property rights, such as patents, copyrights, trademarks, and trade secrets, have long been used to incentivize and protect innovations in various fields. However, the conventional application of IPR did not explicitly consider environmental considerations.

With the rise of environmental consciousness and the acknowledgement of the limited nature of natural resources, there was a call for integrating environmental sustainability into the intellectual property framework. The idea behind Green IPR is to encourage the development and dissemination of eco-friendly technologies, products, and processes while safeguarding the rights of innovators and creators.

Introduction

The term “green intellectual property” (IP) is used to describe the legal protections afforded to environmentally friendly innovations. It’s a strategy for saving the planet by stimulating development of environmentally friendly products and methods. For a very long time, plastic consumption has been a huge environmental problem. A report on single-use plastics has been released by the United Nations Environment Programme (UNEP), outlining steps towards environmental sustainability. This research analyses the efforts made at the national, state, and local levels to reduce the usage of disposable plastics. Policymakers considering restricting the manufacturing and use of single-use plastics may find the insights it presents helpful. In 2015, the United Nations General Assembly established the Sustainable Development Goals (SDGs) as part of the 2030 Agenda for Sustainable Development. By 2030, the world’s population should be free of poverty, the planet would be in good shape, and people would live in peace and prosperity. Several of these targets address plastic use; for example, 12: Responsible Consumption and Production, 13: Climate Action, 14: Life Below Water, and 15: Life on Land.

Introduction

Intellectual Property emerged in new type of property referring to creation of the mind in today’s globalized world. While IP such as copyrights, patents, and trademarks are centuries old, but the extension of IPRs to living beings and knowledge related to them is relatively recent. Similarly Intellectual Property Rights (hereafter IPRs) mean legal protection to protect data from new inventions. In exchange for being required to reveal the formula or strategy underlying the technique, these rights enable the owner to stop imitators from commercializing the inventions or processes for a limited time. Biological Diversity refers to all kinds of living organisms found in an area which maintain balance and support life hence may be called as the cornerstone of sustainability of all living creations i.e. the hallmark of the life of living beings since origin. In general, all organisms, including flora and living things, microbes, and their ecosystems, are together referred to as biodiversity.

Introduction

Among the various countries worldwide, such as China, Kenya, and Sri Lanka, India stands as a significant player. In 2016, China and India collectively accounted for over 60% of the world’s total tea production. Furthermore, India holds the distinction of being the foremost producer of black tea, while China and Japan lead in green tea production. In India, Assam and Darjeeling are recognized as the primary states for tea production, while the Nilgiris and North-East regions also contribute significantly, playing a crucial role in boosting the country’s economic growth.

Assam annually produces over 400 million kilograms of tea, making it the largest tea-growing region globally.Assam has the world’s biggest tea plantations, which are important for India’s economy. The state is near the Brahmaputra River and shares borders with Bhutan, Bangladesh, and Myanmar. Because of its geographical location, this region encounters significant rainfall, especially during the monsoon season, with daily precipitation reaching as high as 250 to 300 mm (10 to 12 inches).A daytime temperature reaches to around 36 °C (96.8 °F), fostering greenhouse-like conditions of intense humidity and heat. The unique malty flavor for which Assam tea is renowned is shaped by the pivotal role played by its tropical climate.

Introduction

In an era increasingly defined by environmental consciousness and the imperative for sustainable practices, the sports industry emerges as a pivotal arena where innovation in green intellectual property (IP) holds transformative potential. At the forefront of this movement are patents, which not only safeguard inventive ideas but also serve as catalysts for integrating eco-friendly technologies into sports equipment. This chapter explores the profound impact of green patents within the sports sector across four key dimensions, illuminating their role in driving sustainability initiatives and reshaping industry dynamics.

The integration of sustainable technologies in sports equipment represents a paradigm shift towards greener practices. From advanced materials in athletic apparel that reduce environmental impact to the design of energy-efficient stadiums, innovations in sports equipment are diversifying to align with global sustainability goals. Cutting-edge developments include biodegradable materials, solar-powered facilities, and water-saving technologies, each contributing to minimizing ecological footprints across the sports industry. By examining these advancements, we uncover how green patents not only spur technological advancement but also foster a culture of environmental stewardship among sports manufacturers and stakeholders.

Introduction

For upliftment of the Indian economy agriculture plays an important role as it has contributed immensely. Nearly, three quarters of India’s family depend on rural incomes. Majority of India’s poor live in rural areas. Most people depend upon the crops, vegetables, fruits grown by these rural population. India’s food security is depended upon the inputs made by the farmers which has been a reason for increasing food insecurity in India. To meet with this accelerated pace a productive, competitive, diversified and sustainable agriculture sector needs to be introduced (The World Bank, 2012).

India being a global agricultural powerhouse, is the world’s largest producer of millet, pulses and spices and also has the largest cattle herd in the world, India also produces largest amount of wheat, rice and cotton. Agriculture is a part of India’s culture and tradition. In India, the culture, tradition and festivals are in a way related to different crops grown by the farmers. Along with this agriculture is deeply rooted with the community lifestyle in India. The community freely share their knowledge related to growing, sowing and harvesting of crops, they also distribute or share the produced crops among each other freely (OECD, 2018).

Introduction

People visit tourist destinations for the purpose of enjoying the beauty, to relax and rejuvenate. One of the popular destinations chosen by all are hill stations. Darjeeling, also known as the Queen of Hills, is a popular tourist destination visited by six-hundred-thousand Indians and thirty-thousand foreigners annually (Bhattacharya, n.d.). The primary attractions that make Darjeeling worth visiting are the magnificent views of the Kanchenjunga range and the lush tea gardens. As a result of the advancement in technology, the luxury of travel is now feasible to all sections of society because of which tourism in India has rapidly expanded in the past three decades. This is the result of: great progress and advancement of the Indian economy, India’s roaring IT sector and promotion of “Unbelievable India” by the Tourism Ministry. Although tourism has significantly boosted revenue and employment, it comes with its downsides: the harm that it poses to the environment if it goes unchecked. Since the number of tourists is greater than the ability of the environment to cope up with, it puts tremendous pressure upon the environment which can have irreversible negative impacts

Introduction

Resource management balances human needs with environmental preservation, focusing on sustainable development, responsible use, and conservation of natural resources. It involves environmental stewardship, economic efficiency, and social equity, ensuring equitable access for all societal segments while meeting present and future demands (Study Smarter, N.D; Mohd Akhter Ali et al., 2023).

There are specific areas such as water, soil, forests, waste, and sustainable harvesting practices. Each area presents unique challenges and opportunities, requiring tailored strategies and interventions to promote sustainability. The interplay between human activities, environmental impacts, and socio economic dynamics through the lens of resource management highlights the need for sustainable practices that balance development with ecological preservation, ensuring equitable resource distribution and long-term economic stability. Emphasis is placed on holistic approaches, participatory decision making, and capacity building to enhance resource governance and promote sustainable practices.