Abstract: An Entrepreneur is always searched for a change and exploits it an opportunity. An entrepreneur is a person who produces innovative products to satisfy the needs, wants & desires of the target market. Industrial development in any country depends on the type of human resources the country possesses and more particularly on entrepreneurs. The main aim of an entrepreneur is to promote setting of small scale industries and through them contribute production and employment in the country. So that the country’s economy will get a boost. This paper recognizes a significant business model that shows the required factors to start a business. A survey is conducted in Prakasam Dt, Andhra Pradesh. After testing normality by Shapiro Test, One Sample T-Test, and ANOVA are used for analyzing the effect of gender, age, and education qualification respectively and Factor Analysis is applied to derive the factors in order to start business and Discriminate Analysis to design the business model on the opinion of the decision will be taken after analyzing all alternatives.