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Solved 2023: FYUG Odd Semester Exam, 2023 Business Project Formulation and Entrepreneurship Development

Subject: Economics
Paper Name: Business Project Formulation and Entrepreneurship Development
Paper Code: ECOSEC-101T
Semester: 1st Semester (FYUG)
Year: 2023 (Held in 2024)
Full Marks: 50
Time: 2 Hours

SECTION-A

Answer fifteen questions, selecting three from each Unit ($1 \times 15 = 15$ Marks)

UNIT-I

1 Mark 1. From which term 'entrepreneur' is derived?

The term 'entrepreneur' is derived from the French verb 'entreprendre', which means "to undertake."

1 Mark 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.

1 Mark 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

1 Mark 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.

 1 Mark 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

1 Mark 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

1 Mark 14. What is the full form of NIESBUD?

National Institute for Entrepreneurship and Small Business Development.

 1 Mark 15. When was SIDBI established?

SIDBI (Small Industries Development Bank of India) was established on April 2, 1990.

UNIT-V

1 Mark 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)

2 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.
    • 2 Marks 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.

     2 Marks 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

    5 Marks 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

    5 Marks 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

    5 Marks 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).
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