FYUG Odd Semester Exam, 2023 Business Project Formulation and Entrepreneurship Development
SECTION-A
Answer fifteen questions, selecting three from each Unit ($1 \times 15 = 15$ Marks)
UNIT-I
1. From which term 'entrepreneur' is derived?
The term 'entrepreneur' is derived from the French verb 'entreprendre', which means "to undertake."
2. Who is an entrepreneur?
An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards.
3. Mention any one barrier of entrepreneurship.
Financial constraints: Lack of adequate capital or access to credit is a major barrier to starting a new venture.
UNIT-II
6. What is project identification?
Project identification is the process of identifying potential investment opportunities and screening them to select the most viable business project.
8. What is project report?
A project report is a formal document containing detailed information about a proposed business project, including its technical, financial, and economic feasibility.
UNIT-III
9. Define small-scale industry.
Small-Scale Industries (SSIs) are industrial undertakings in which the investment in fixed assets (plant and machinery) does not exceed the limit prescribed by the government.
UNIT-IV
14. What is the full form of NIESBUD?
National Institute for Entrepreneurship and Small Business Development.
15. When was SIDBI established?
SIDBI (Small Industries Development Bank of India) was established on April 2, 1990.
UNIT-V
17. What is microfinance?
Microfinance is a category of financial services provided to unemployed or low-income individuals or groups who otherwise have no other access to financial services.
SECTION-B
Answer five questions, selecting one from each Unit ($2 \times 5 = 10$ Marks)
21. Write any two qualities of a successful entrepreneur.
- Risk-Taking Ability: The willingness to take calculated risks to achieve business goals.
- Innovation: The ability to introduce new products, services, or processes to the market.
23. What is project formulation?
Project formulation is the step-by-step process of translating a project idea into a concrete investment proposition through detailed analysis of its various aspects.
26. Write two problems facing by small-scale industries in India.
- Shortage of Raw Materials: Difficulty in procuring high-quality raw materials at reasonable prices.
- Marketing Problems: Lack of brand recognition and effective distribution channels compared to large firms.
SECTION-C
Answer five questions, selecting one from each Unit ($5 \times 5 = 25$ Marks)
UNIT-I
31. Discuss the important characteristics of entrepreneurship.
- Economic Activity: It involves the creation and operation of an enterprise for profit.
- Innovation: A core trait where the entrepreneur introduces new combinations of factors of production.
- Risk Bearing: The entrepreneur assumes financial, social, and psychological risks.
- Purposeful Activity: It is directed toward achieving specific business objectives and growth.
- Organizing Function: It involves bringing together land, labor, and capital to produce goods or services.
UNIT-III
36. Discuss the role of small-scale industries in Indian economy.
- Employment Generation: SSIs are labor-intensive and provide employment to a large number of people.
- Regional Development: They help in decentralizing industries and promoting balanced regional growth.
- Export Promotion: A significant portion of India's exports comes from the small-scale sector.
- Mobilization of Savings: They tap into local resources and small savings that might otherwise remain idle.
- Consumer Goods Production: They meet the local demand for a wide variety of consumer products.
UNIT-V
40. Discuss the role of SHGs in the development of a country.
- Women Empowerment: Self-Help Groups (SHGs) provide a platform for women to become financially independent.
- Financial Inclusion: They bridge the gap between rural poor and formal banking institutions.
- Skill Development: Members often receive training in various vocations, improving their employability.
- Poverty Alleviation: By providing small loans (microcredit), they help families start small businesses.
- Social Change: SHGs often tackle social issues like education, health, and sanitation in their communities.
Exam Focus Enhancements
Important Abbreviations
- NIESBUD: National Institute for Entrepreneurship and Small Business Development
- SIDBI: Small Industries Development Bank of India
- DIC: District Industries Centre
- SIDO: Small Industries Development Organization
Common Mistakes
- Confusing Project Identification (finding the idea) with Project Formulation (designing the plan).
- Interchanging the definitions of Microfinance (broad financial services) and Microcredit (specific small loans).