SME-Part A-Lecture 1

SME-ageconbd.com

1. Write down the definition of SME. (1)

SME stands for Small and Medium Enterprise.

SME Definition

Small Enterprise denotes to the firm/business which is not a public limited company and adds the following criteria:

Table: Small Enterprise Criteria

Serial No.	Sector	Fixed Asset other than Land and Building (Tk.)	Employed Manpower (not above)
01.	Service	50,000-50,00,000	25
02.	Business	50,000-50,00,000	25
03.	Industrial	50,000-1,50,00,000	50

Medium Enterprise indicates to the establishment/firm which is not a public limited company and adds the following criteria:

Table: Medium Enterprise Criteria

Serial No.	Sector	Fixed Asset other than Land and Building (Tk.)	Employed Manpower (not above)
01.	Service	50,00,000-10,00,00,000	50
02,	Business	50,00,000-10,00,00,000	50
03.	Industrial	1,50,00,000-20,00,00,000	150

Source: Bangladesh Bank

2. In which sector Hand-made food/Bakery/Hand-loom belongs to? Analysis of your answer based on SME definition. (1.5)

3. There are __________basic characteristics of Entrepreneurship. (Three)

4. Match the table.

Category A	Category B
1. Innovation	I. New-market demand creation based on the utility of the existing product.
2. Risk-Taking
3. Organizing

5. Write down the characteristics of an entrepreneur.

6. Write down differences between an entrepreneur and a manager.

Item:

a.Motive

b.Status

c.Risk-bearing

d.Reward

e.Innovation

f.Qualification

Table: Differences between an entrepreneur and a manager

Item	Entrepreneur	Manager
Motive
Status
Risk-bearing
Reward
Innovation
Qualification

7. Write down the functions of an entrepreneur.

a. Idea generation and screening of best idea

b. Determination of business objective

c. Product analysis and market research

d. Determination of form and ownership of a business.

e. Raising necessary funds

f. Procuring machines nad materials

g. Recruitment of manpower

h. Undertaking business operation

8. Short note.

a. Form of ownership

b. Type of ownership

9. Write down types of entrepreneurs.

Types of entrepreneurs

a. Innovating: A new product or market or use developer. It is practiced in a developed country. 

b. Imitative: A new product or market or use copying entrepreneur. It is practiced in a developing country.

c. Fabian: A new product or market or use launcher after certain justifying it and taking a certain time.

d. Drone: No change is made of a new product or market or new use in this kind of entrepreneurship. Traditional perception is the basis of this type of entrepreneurship. For instance, Rosmalay of Cumilla.

10. Mention the general category of entrepreneurship.

Sole operator, active partner, inventor, challenger, buyer, life-timer.

11. Match the table.

Category A	Category B
a. Sole operator	i. sole proprietorship
b. Active partner	ii. not only investing money but also the same participation
c. Inventor	iii. involvement of research and development
d. Challenger	iv. SWOT analyzer
e. Buyer	v. buy an established business and run it
f. Life-timer	vi. involvement of the traditional way and run the family business