Define Entrepreneurship. Explain the Classification of Entrepreneurs.

Answer:
Entrepreneurship is the process of identifying a business opportunity,
organizing resources, and taking risks to create a new venture.
Entrepreneurs can be classified as:
Innovative: Introduce new ideas or technologies.
Imitative: Follow successful business models.
Fabian: Cautious and skeptical about change.
Drone: Resist change and innovation.
Each type plays a unique role in the economic system, influencing how
businesses evolve in response to markets and innovation.
1. Explain the role of Entrepreneurship in Economic Development.
Answer:
Entrepreneurship drives economic development by creating jobs,
increasing income, and generating wealth. Entrepreneurs introduce
innovations that enhance productivity and efficiency in various
industries. They stimulate demand through new products and services
and foster competition, leading to better quality and lower prices. Start-
ups often exploit local resources and encourage industrialization in
underdeveloped areas. Additionally, entrepreneurs contribute to
government revenue through taxes and help build a robust ecosystem of
suppliers and service providers, making them key catalysts in the growth
of a nation’s economy.
2. What are the methods and sources of Idea generation?
Answer:
Sources include market research, customer feedback, brainstorming,
SCAMPER technique, SWOT analysis, and personal experience.
Methods involve:
Observing trends
Identifying problems and needs
Reverse engineering
Using technology and data analytics
Consulting experts
These help uncover viable business ideas.
3. Explain the Contents and Guidelines for Report Preparation.
Answer:
A good report includes a title page, table of contents, executive
summary, introduction, methodology, findings, conclusions, and
recommendations. Guidelines involve using clear language, logical flow,
appropriate visuals (charts/graphs), accurate data, and proper citations.
Consistency in formatting is essential for readability.
4. Define NABARD. Explain its importance and role in development.
Answer:
NABARD (National Bank for Agriculture and Rural Development) is a
financial institution that supports rural development in India. It finances
agricultural and rural infrastructure, provides credit to farmers, and
promotes self-help groups. NABARD plays a crucial role by offering long-
term and short-term credit facilities, implementing development
projects, and enhancing rural livelihoods. It also works in financial
inclusion, capacity building, and strengthening cooperative banks and
RRBs. Through schemes like Rural Infrastructure Development Fund
(RIDF), NABARD significantly contributes to poverty alleviation and
sustainable rural prosperity.

5. Explain PMEGP. Why is it important?

Answer:
PMEGP (Prime Minister’s Employment Generation Programme) is a
credit-linked subsidy scheme by the Government of India. It aims to
generate employment through micro-enterprises in rural and urban
areas. It’s important because it:
Promotes self-employment.
Provides financial support (15–35% subsidy).
Encourages new entrepreneurs.
Reduces migration by creating local jobs.
Supports traditional and modern industries.
By fostering entrepreneurship, PMEGP boosts economic growth and self-
reliance at the grassroots level.
6. Explain how financial institutions help in Entrepreneurial
Development.
Answer:
Financial institutions play a critical role in entrepreneurial development
by providing capital, credit facilities, and financial services to start-ups
and small businesses. Institutions like SIDBI, NABARD, and commercial
banks offer loans, venture capital, and grants tailored to different
business needs. They also assist in project appraisal, risk assessment, and
financial planning. In addition, many run entrepreneur support programs,
training workshops, and financial literacy campaigns. These services
reduce entry barriers, help manage risks, and enable entrepreneurs to
focus on innovation and growth, fostering a sustainable business
environment.
7. Explain MUDRA Project.
Answer:
The MUDRA (Micro Units Development and Refinance Agency) project
offers financial support to micro and small enterprises. It categorizes
loans into Shishu (up to ₹50,000), Kishor (₹50,000–₹5 lakh), and Tarun
(₹5 lakh–₹10 lakh).
MUDRA is vital because it provides accessible funding, promotes
inclusive growth, and supports entrepreneurship among marginalized
groups like women, SC/ST, and minorities. It also helps create jobs and
strengthen the informal sector.
8. Analyse any case study of start-up.
Answer:
Case Study: Zomato
Zomato began as a restaurant review platform in 2008. It evolved into a
food delivery service, partnering with restaurants and using technology
for real-time tracking. Zomato focused on customer experience, app
usability, and aggressive marketing. It overcame logistics and funding
challenges by leveraging investor backing and innovation. By expanding
into multiple countries and acquiring rivals, it became a global brand.
Zomato’s success reflects India’s growing digital economy and consumer
demand, highlighting how tech-driven platforms can transform
traditional sectors and create scalable business models in the start-up
ecosystem.
9. Explain the role of online education in economy.
Answer:
Online education plays a transformative role in the economy by
improving access to learning, upskilling the workforce, and enabling
lifelong learning. It breaks geographic and financial barriers, allowing
people from remote areas to gain quality education. Platforms like
Coursera, Udemy, and Indian initiatives like SWAYAM empower
individuals to enhance their employability. Online learning boosts
productivity, supports entrepreneurship, and reduces the skill gap in
industries. During the COVID-19 pandemic, its importance was especially
evident as it ensured continuity in education. In the long term, online
education contributes to a more informed, capable, and competitive
workforce, driving economic progress.

10. Define feasibility test and its type.

Answer:
A feasibility test evaluates whether a proposed business idea is viable
and sustainable.
Types include:
Technical Feasibility: Assesses technical resources and skills.
Economic Feasibility: Evaluates cost-benefit and profitability.
Legal Feasibility: Checks compliance with laws and regulations.
Operational Feasibility: Examines how well the solution fits within
existing operations.
Schedule Feasibility: Determines if the timeline is realistic.
These tests help minimize risk and improve decision-making.
11. Define patent.
Answer:
A patent is a legal right granted by the government to an inventor, giving
exclusive rights to make, use, sell, or license an invention for a specific
period (usually 20 years). It protects innovations and encourages
research and development.
12. Explain different Intellectual Property Rights.
Answer:
Intellectual Property Rights (IPRs) protect creations of the mind and
provide legal rights to creators.
Types include:
Patent: Protects inventions.
Trademark: Secures brand names, logos, or symbols.
Copyright: Protects original works of authorship like books, music, and
films.
Design Rights: Protect the visual design of objects.
Geographical Indications: Identify products with a specific origin and
qualities (e.g., Darjeeling tea).
IPRs foster innovation, prevent misuse, and encourage investment in
creative industries.
 13. What is Idea Pitching?
Answer:
Idea pitching is the act of presenting a business concept to potential
investors or stakeholders with the goal of gaining support, funding, or
approval. It typically includes outlining the problem, solution, market
opportunity, revenue model, and team.
14. Explain the process of recruitment with flow chart.
Answer:
Recruitment is the process of finding and hiring the best-qualified
candidate. The steps include:
Manpower planning
Job analysis and description
Sourcing candidates (ads, referrals, portals)
Screening applications
Conducting interviews
Selecting candidates
Making job offers
Onboarding
Flow Chart:
Manpower Planning → Job Description → Sourcing → Screening →
Interview → Selection → Offer → Onboarding
15. Discuss the role of Agripreneur in Indian economy.
Answer:
Agripreneurs are entrepreneurs in the agricultural sector who apply
innovation and business principles to farming and allied activities. Their
role is vital in transforming traditional agriculture into a profitable
enterprise. They introduce technology (like drip irrigation, drones),
improve supply chains, and create value-added products. Agripreneurs
also promote organic farming, contract farming, and food processing
units, contributing to rural employment and income generation. They
help reduce post-harvest losses and increase exports. By modernizing
agriculture, agripreneurs support food security, raise farmer incomes,
and contribute significantly to India’s GDP, especially in rural and semi-
urban regions.
16. Differentiate between entrepreneurs and managers.
Answer:

Aspect Entrepreneur Manager

Role Founder, risk-taker Employee, administrator
Objective Innovation, profit, growth Efficiency, goal achievement
Risk High (owns the risk) Low (risk is borne by employer)
Decision-making Strategic and long-term Operational and short-term
Rewards Profit, equity Salary, incentives
Entrepreneurs start and own businesses; managers operate and run
them efficiently.

17. Explain the Strategy Development for Businesses.

Answer:
Strategy development involves formulating a plan to achieve business
goals. The steps include:
Vision & Mission Definition – Clarify purpose and values.
Environmental Analysis – Use tools like SWOT, PESTLE.
Objective Setting – SMART goals (Specific, Measurable, Achievable,
Relevant, Time-bound).
Strategy Formulation – Choose growth, differentiation, cost-leadership,
etc.
Implementation – Allocate resources, assign tasks.
Monitoring & Evaluation – Track performance and adapt.
A good strategy aligns operations with market needs, enhances
competitiveness, and ensures sustainability.

18. Define entrepreneur. Explain the characteristic & traits of an

entrepreneur.
Answer:
An entrepreneur is an individual who identifies a market opportunity,
gathers resources, and creates a business to profit from the opportunity,
bearing associated risks.
Characteristics & Traits:
Risk-taking: Willing to take financial and personal risks.
Innovation: Brings new ideas or improves existing processes.
Leadership: Can inspire and manage teams.
Visionary Thinking: Sees long-term possibilities.
Decision-making: Takes quick, effective decisions.
Persistence: Overcomes failures and obstacles.
Adaptability: Flexible in changing environments.
These qualities enable entrepreneurs to build successful ventures and
contribute to the economy.
19. Analyse any Indian start-up. Explain its domain and present
market condition.
Answer:
Case Study: BYJU’S
BYJU’S is a leading Indian ed-tech start-up offering interactive online
learning programs. Founded in 2011, it focuses on K-12 education and
competitive exam prep using animations and personalized learning. Its
domain is education technology. BYJU’S saw massive growth during
COVID-19 due to demand for remote learning. However, by 2024, it faced
financial scrutiny, layoffs, and valuation drops due to over-expansion and
funding issues. Despite challenges, it remains a top player in India’s ed-
tech market, constantly evolving to regain investor and user trust. It
reflects both the potential and volatility of tech-driven education models.

20. Explain Audit.

Answer:
An audit is a systematic examination of financial records, operations, or
systems to ensure accuracy, compliance, and transparency.
Types include:
Internal Audit (by company itself)
External Audit (by independent agencies)
Statutory Audit (mandated by law)
Audits help detect errors or fraud, improve controls, and build trust
among stakeholders.

21. Choose a real-world business idea and develop a basic activity

map outlining its key components.
Answer:
Business Idea: Organic Juice Bar
Activity Map:
Procurement: Source organic fruits from local farmers.
Production: Juice extraction, bottling, and packaging.
Marketing: Social media, local promotions, influencer outreach.
Sales Channels: In-store, online orders, food delivery apps.
Customer Service: Feedback systems, loyalty rewards.
Logistics: Cold storage and same-day delivery.
Compliance: FSSAI registration, health and safety protocols.
This activity map ensures the business operates efficiently and maintains
quality, from sourcing to delivery.
22. Compare and contrast different business models (e.g.,
subscription-based, franchise, e-commerce) and analyse which is
best suited for a tech start-up.
Answer:
Subscription-based: Recurring revenue (e.g., Netflix); suits SaaS products.
Franchise: Expansion through partners; works well for retail/food.
E-commerce: Product sales via online platforms; ideal for goods/services.
For a tech start-up, the subscription-based model is best. It ensures
predictable revenue, customer retention, and scalability. SaaS businesses
(like Zoom, Canva) use it successfully, offering continuous value and
updates in exchange for periodic payments. This model aligns with
software and digital platforms where constant engagement is key.
23. Briefly discuss with examples, the smart ways for building
competitive advantages.
Answer:
Smart ways include:
Innovation: Apple’s design-led products
Cost Leadership: Walmart’s low-price strategy
Branding: Nike’s strong emotional appeal
Customer Experience: Amazon’s easy return policy
Technology Use: Zomato’s real-time order tracking
These strategies help firms stand out and sustain market leadership by
addressing unique customer needs effectively.
24. Explain product positioning with example.
Answer:
Product positioning is the strategy of creating a distinct image of a
product in the customer’s mind.
Example: Volvo positions itself as the safest car brand.
Effective positioning focuses on a product’s unique benefits and aligns
them with target market expectations. It influences branding, messaging,
and pricing, helping consumers choose your product over competitors.

25. Elaborate the role of Start-ups in Atmanirbhar Bharat.

Answer:
Start-ups play a pivotal role in realizing the vision of Atmanirbhar Bharat
(self-reliant India) by fostering innovation, creating employment, and
reducing dependency on imports. They operate across sectors like
technology, health, agri-tech, and manufacturing, offering indigenous
solutions. Government initiatives like Start-up India, tax benefits, and
access to funding boost their growth. Start-ups drive local production,
digital adoption, and entrepreneurship, especially among youth.
Successful ventures like Zerodha, Paytm, and BharatPe exemplify this
shift. By solving local problems with scalable models, start-ups
strengthen India’s economy and global competitiveness, turning the
country into a hub of innovation and self-reliance.