MCQ Answers
1. B) Innovative and risk-taking
2. C) Large Corporate Entrepreneur
3. B) To create awareness and develop entrepreneurial skills
4. A) Small Industries Development Bank of India (SIDBI)
5. B) To promote entrepreneurship and provide support services
6. D) All of the above
7. B) To evaluate the feasibility of a project
8.D) Venture Capital Funds
9. A) To promote entrepreneurship and provide support services
10. D) Routine and repetition
Sec B
11. (a) Functions of an Entrepreneur:
1. Innovation: Developing new ideas, products, or services.
2. Risk-taking: Taking financial, operational, and market risks.
3. Organization: Combining resources for business operations.
4. Decision-making: Making key business and financial decisions.
5. Leadership: Leading and motivating employees to achieve business goals.
11. (b) Women Entrepreneurs' Status in India:
Women entrepreneurs in India face challenges such as limited access to finance,
social stigma, and lack of education. However, government policies and support
systems like subsidies and schemes are helping them overcome barriers, leading to
increasing participation in sectors like fashion, education, and food industries.
12. (a) Growth of Entrepreneurship in India:
Entrepreneurship in India has grown due to:
o Economic liberalization and globalization.
o Increased access to technology and funding.
o Government initiatives such as Make in India and Start-Up India.
o Changing social norms and growing entrepreneurial spirit among youth.
o Supportive institutions like SIDBI and DICs.
12. (b) Factors Affecting Entrepreneurship:
1. Economic Environment: Availability of capital and resources.
2. Political and Legal Environment: Government policies, regulations, and legal
framework.
3. Cultural and Social Factors: Societal attitudes, family support, and education.
4. Market Conditions: Demand for products and services.
5. Technological Advancements: Access to innovation and new technologies.
13. (a) Objectives of EDP (Entrepreneurship Development Program):
1. Enhancing Entrepreneurial Skills: Developing competencies needed for running a
business.
2. Providing Knowledge: Offering information on business practices and market
dynamics.
3. Encouraging Innovation: Motivating entrepreneurs to think creatively and take risks.
4. Facilitating Access to Resources: Ensuring access to financial, technical, and human
resources.
5. Promoting Small Business Growth: Encouraging the establishment and growth of
small-scale enterprises.
13. (b) Opportunities for Entrepreneurial Career:
1. Technology Startups: Innovations in IT, software development, and AI.
2. Retail and E-commerce: Expanding online business ventures.
3. Food and Beverage: Establishing restaurants, catering services, and food products.
4. Health and Wellness: Opportunities in fitness, healthcare, and wellness services.
5. Education and Training: Opening educational institutions or skill development
centers.
14. (a) Project Appraisal and How It Is Done:
Project Appraisal: The process of assessing the feasibility and profitability of a
project.
o Steps:
1. Technical feasibility: Analyzing the practicality of the project.
2. Financial feasibility: Assessing costs, funding sources, and
profitability.
3. Market feasibility: Understanding market demand and competition.
4. Risk assessment: Identifying potential risks and mitigation strategies.
14. (b) Export Finance:
Export Finance refers to the financial assistance provided to exporters for carrying
out their export activities, covering expenses like production, shipping, and payment
delays. It includes working capital, pre-shipment, and post-shipment finance provided
by financial institutions.
15. (a) National Small Industries Corporation (NSIC):
NSIC is a government organization that promotes, aids, and facilitates the growth of
small-scale industries. It provides support in marketing, technology, finance, and raw
material procurement, helping small businesses grow and compete in the market.
15. (b) Roles of Small Industries Development Bank of India (SIDBI) to Promote
Entrepreneurship:
1. Financial Support: Providing financial assistance to small businesses.
2. Technical Assistance: Offering training and guidance on modern business practices.
3. Capacity Building: Strengthening the entrepreneurial ecosystem.
4. Development of Infrastructure: Creating the right environment for small businesses
5. Promoting Innovation: Supporting innovative and high-growth ventures.
Sec C
Kinds of Entrepreneurs:
1. Innovative Entrepreneurs: Create new products or processes.
2. Imitative Entrepreneurs: Adopt and improve existing ideas.
3. Fabian Entrepreneurs: Reluctantly change, wait for proven success.
4. Drone Entrepreneurs: Resist change, stick to traditional methods.
5. Social Entrepreneurs: Focus on solving societal problems.
Factors Influencing Women Entrepreneurs:
1. Social Factors: Gender stereotypes, family expectations.
2. Cultural Factors: Support from society and community.
3. Economic Factors: Access to finance, economic independence.
4. Educational and Skill Development: Availability of training and education.
5. Government Policies: Supportive government initiatives.
Factors Contributing to Growth Motivation for Entrepreneurs in India:
1. Economic Opportunities: Access to markets and resources.
2. Government Support: Policies and schemes for entrepreneurs.
3. Technological Advancements: Innovation and competitive advantage.
4. Globalization: Expanded market access.
5. Infrastructure Development: Better roads, communication, and utilities.
Entrepreneurial Competencies and Skills:
1. Technical Competence: Knowledge of the industry or sector.
2. Conceptual Skills: Ability to understand complex situations and opportunities.
3. Human Resource Management: Leading and managing a team.
4. Marketing Skills: Understanding customer needs and positioning products.
5. Financial Management: Managing resources efficiently.
Different Phases of ED (Entrepreneurship Development):
1. Initiation: Identifying business opportunities.
2. Development: Forming a business plan and resources mobilization.
3. Growth: Expansion and scaling operations.
4. Maturity: Stabilizing business processes.
5. Decline/Exit: Either selling or winding up the business.
Problems of SSI (Small Scale Industries):
1. Financial Constraints: Limited access to capital.
2. Marketing Issues: Limited market reach.
3. Technological Constraints: Lack of innovation.
4. Management Problems: Inefficient management practices.
5. Regulatory Hurdles: Complex laws and regulations.
Steps Involved in Project Formulation:
1. Project Idea: Identifying business opportunities.
2. Feasibility Study: Assessing technical, financial, and market feasibility.
3. Business Plan: Preparing a detailed plan for implementation.
4. Resource Mobilization: Securing necessary capital and resources.
5. Implementation: Setting up and operating the business.
Venture Capital and Its Importance:
Venture Capital: Investment in high-risk startups with high growth potential.
Importance: Provides funding to startups, accelerates growth, and reduces financial
risk for entrepreneurs.
Role of Industrial Development Bank of India (IDBI):
IDBI provides financial assistance to entrepreneurs, promotes industrial development,
offers loans for setting up or expanding businesses, and supports technology and
infrastructure development.
Responsibilities of District Industries Centres (DICs):
1. Promotion of Small-Scale Industries: Providing guidance and resources.
2. Facilitating Government Schemes: Implementing government schemes for small
industries.
3. Training and Development: Offering skill development and entrepreneurship
training.
4. Financing Assistance: Helping entrepreneurs secure loans and financial support.
