Government Schemes for Entrepreneurial Development Text Book Solutions

Dear Class 12 Samacheer Kalvi students, here are the text book solutions for Chapter 25, Government Schemes for Entrepreneurial Development in Commerce for your reference.

I. Choose the Correct Answers:

II. Very Short Answer Questions:

1. Name any two Governmental Entrepreneurial schemes.

Startup India and Make in India are two government schemes aimed at promoting entrepreneurship and innovation.

2. Give a note on ‘Digital India’.

The Digital India initiative has been launched to modernize the Indian economy to make all government services available electronically. The initiative aims at transforming India into a digitally-empowered society and knowledge economy with universal access to goods and services.

3. List down the two types of finance for Entrepreneur.

Entrepreneur requires two types of finance namely long term and short term.

III. Short Answer Questions:

1. What is ‘Startup India’?

Through the Startup India initiative, Government of India promotes entrepreneurship by mentoring, nurturing and facilitating startups throughout their life cycle. Since its launch in January 2016, the initiative has successfully given a head start to numerous aspiring entrepreneurs. A ‘Fund of Funds’ has been created to help startups gain access to funding.

2. Expand the following: i) STEP ii) JAM iii) SEED

(STEP): Support to Training and Employment Programme for Women

(JAM): Jan Dhan-Aadhaar – Mobile

(SEED): Science for Equity Empowerment and Development

IV. Long Answer Questions:

1. Explain any five Government Entrepreneurial schemes.

1. Startup India:

Through the Startup India initiative, Government of India promotes entrepreneurship by mentoring, nurturing and facilitating startups throughout their life cycle. Since its launch in January 2016, the initiative has successfully given a head start to numerous aspiring entrepreneurs. A ‘Fund of Funds’ has been created to help startups gain access to funding.

2. Make in India:

This scheme is designed to transform India into a global design and manufacturing hub, the Make in India initiative was launched in September 2014. It is a call to India’s citizens, business leaders, potential partners and investors around the world to centralize information about opportunities in India’s manufacturing sector. This has in turn helped procure investments, foster innovation, develop skills, protect intellectual property and build best-in-class manufacturing infrastructure.

3. Digital India:

The Digital India initiative has been launched to modernize the Indian economy to make all government services available electronically. The initiative aims at transforming India into a digitally-empowered society and knowledge economy with universal access to goods and services.

4. Pradhan Mantri Kaushal Vikas Yojana (PMKVY):

A flagship initiative of the Ministry of Skill Development and Entrepreneurship (MSDE). This is a Skill Certification initiative which aims to train youth in industry-relevant skills to enhance employment opportunities for livelihood creation and employability.

5. Jan Dhan-Aadhaar – Mobile (JAM):

JAM, for the first time, is a technological intervention that enables direct transfer  of subsidies to intended beneficiaries and, therefore, eliminates all intermediaries and leakages in the system, which has a potential impact on the lives of millions of Indian citizens.

2. Describe the steps promoting Entrepreneurial venture.

The various steps involved in starting a venture are:

1. Selection of the product

An entrepreneur may select a product according to his aspiration, capacity and motivation after a scrunity of micro and macro environment of business. He may select a brand, new product, an imitation one, or he may improve upon an existing product in terms of additional features like comforts, convenience, ease of operation, lower price etc. An entrepreneur has to conduct economic viability of the project.

2. Selection of form of ownership

Entrepreneur has to choose the form of organisation suitable for his venture namely family ownership, partnership and private limited company. Family ownership and partnership forms of organisation are suited for exercising unified control over the venture. The company form of organisation may be preferred for pooling of more financial resources, managerial and technical skills and business experience for carrying on medium to large venture.

3. Selection of Site

Entrepreneur has to choose suitable plot for accommodating his venture. He has four options open to him for housing his venture such as.

• State Development Corporation like SIDCO, SIPCOT, MMDA, TNHB and Directorate of Industries may allot plot to entrepreneur
• Factory sheds constructed by State Industrial Development Agency
• Land developed by private developers
• Buy private land and develop it for industrial use.

Following things may be considered in choosing the site namely:

• Nearness to native place
• Incentives provided by the Govt.
• Nearness to market
• Availability of labour and raw materials in a particular area.
• Infrastructure facilities

4. Designing Capital Structure

Entrepreneur has to determine the source of financé for funding the venture. He may mobilise funds from his own savings, loans from friends and relatives, term loans from banks and financial institutions.

5. Acquisition of Manufacturing know-how

Entrepreneur can acquire manufacturing know-how from Government research laboratories, research and development divisions of industries, and individual consultants. At times, main units may supply manufacturing know-how to entrepreneurs starting ancillary units or plant and machinery suppliers may provide this facility to entrepreneurs. Besides, manufacturing know-how can be obtained by foreign technical collaboration.

6. Preparation of project report

Project reports needs to be prepared according to the format prescribed in the loan application form of term lending institutions. An entrepreneur can get the report prepared either by technical consultancy organisation or by auditors or by consultants or by development agencies. This report should cover aspects like sources of finance, technical know-how, sources of labour and raw materials, market potential and profitability. The project report should include the following:

Technical Feasibility, Economic Viability, Financial Viability, Managerial Competency, Provisional Registration Certificate, Permanent Registration Certificate, Statutory Licence, Power Connection, Arrangement of Finance.