Solution:

Managerial Competence:

• Managerial Competence Successful entrepreneurs are found to be possessing managerial and entrepreneurial traits. Funding agencies would, therefore like to find out whether the individual interested in setting up the venture possesses needed managerial traits.

• A project report should contain information such as family background, educational qualifications, the experience of service, business or industry, interest in other firms and innovative ideas of promoters to enable financially institutions to assess the managerial capabilities of the individual.

• An entrepreneur doesn't need to possess all managerial traits and perform all the functions themselves.

• He should either be in a position to perform all such functions himself or should be competent and resourceful enough to hire and use the required managerial resources.

• The project report, should, therefore, mention the managerial structure of the enterprise.

• It is very difficult indeed to evaluate the managerial and entrepreneurial capabilities of an individual.

• Even if the promoter himself wants to evaluate his capabilities the evaluation may not be very correct.

• It is likely to happen because the sense of self-esteem is prevalent in every individual and it inhibits proper self-assessment.

  Market Analysis:

• The success of a project depends on how it can sell the product/service in the market. This is because marketing is the only activity that produces revenue while all other activities incur expenditure. Therefore, the product/service should be marketable.

• The supply and demand for the product/service have to be estimated and see whether there is any market opportunity.

• A detailed market analysis should be conducted covering market opportunity and strategy for converting the opportunity into a reality.

• It is, therefore, suggested that the report should contain the following information:

• The size and composition of the present demand.

• Market segment (s) identified for the proposed venture (The market segmentation may be done based on income, age, and sex of consumers, the geography of the area, etc.)

• Short and long-term demand projection of the overall market and of the segment(s) identified for the proposed project.

• The market penetration that the proposed unit is expected to achieve over the, projected period. This may be planned given the increasing national and international competition and changing needs of the consumers.

• Broad pricing structure based on which future demand has been made and market penetration ratio has been calculated.

• The strategy of marketing in the target markets.